Your entry is confirmed. At any time during playback, you may press zero pound to go to the playback help menu. Welcome, everybody. My name is Tim Peterman. I'm the CEO of iMedia Brands. I appreciate everybody making the time here today. Take notes too. A lot of you are taking notes. I appreciate that. It's good seeing familiar faces with bodies attached now to just Zoom. It's good to see many new faces as well. My goal today is to make this event worth your time. What we do here, we build entertainment brands. That is what we do here. You've heard other companies say that and that. What we're gonna do today is explain to you how we build entertainment brands. We believe how we build them is our unique proposition, our secret sauce. Our Q4 earnings release this morning is just another reminder of what I think we need to wrap our heads around talking to some of the new teams here. We've been built quite some time, which is we are executing this unique strategy and we're pretty good at it. You won't hear a lot of, to quote Tom Cruise, some days and one day. You know, this circle that you see spinning around us, we created back in 2019. It was a framework in my head, and every single thing that we've been doing over the last 30 months has been to build that circle, to make that circle work with each other individually. Yes, you will hear me today and others wax on about ShopHQ and ShopHQ's promotional power of how it is driving the awareness and the first-party data for J.W. Huge for Christopher & Banks, for our new advertising platform. Yes, you will hear me talk about, and you will actually get to talk to a German about this as well. Excuse me, take a drink of water. About 1-2-3.tv, a very important acquisition we made. We're gonna talk a bit about two things around 1-2-3.tv. The opportunity that they continue to do in Germany of disrupting the TV retailing business there with a reverse Dutch auction platform. Then the second, and equally important for us, is that platform, that proprietary platform as a SaaS model that we are going to launch here in the U.S. to disrupt the digital shopping for airlines and for hotels. Very interesting. I think you'll also hear a bit about how we thought Q4 was the right time to introduce three reporting segments from just the two. You'll see, and we've been talking about this for several quarters now officially with the reporting quarters, Entertainment, Consumer Brands, and Media Commerce Services. At the appropriate investor conference, we'll also talk about our balance sheets. We'll talk about our debt leverage. We'll talk about our shareholder value growth, how we are doing, share price. You'll hear me talk a lot about the team. This is a team sport. Make no mistake about it. The senior team that you meet today, you'll get a sense of. Those who know me, you'll see a lot of similarities. They believe in the nine times out of ten, the thing that carries the day is effort. It's not the fancy PowerPoint presentation. It's not a long email. It really is about getting it done. That's what you're gonna see when you meet these folks today. I'm excited about that because it's an important component of our culture, important component of how we've been able to turn the business around. You might also hear me refer to us as a self-contained media ecosystem. What that means really is. Let me back up. How we created that really was fixing ShopHQ. We had to fix ShopHQ first because it was that revitalized ShopHQ that gave life, you know, the big bang, gave life to the other business units you see revolving around that circle. Finally, you'll hear me, as many of you heard before, talk about our customer, our unyielding focus on the boomer audience and why that is, and why every single business that you see today and hear about today will be focused on that customer. Before we do that, there is a small question of I would like to introduce you to Jen Vick, who is one of our top ShopHQ hosts here. Jen, would you like to read our safe harbor statement? I would love to. Thank you, Tim. Good morning, everybody. Welcome. So glad to see you here. My name is Jen Vick, and as Tim just said, I've been a host here since about 2019. I have the honor this morning of talking to you about our safe harbor statement. We issued our Q4 preliminary earnings release earlier this morning, as well as the presentation that you're about to see. If you do not have a copy, you may access it on our corporate website, imediabrands.com. This release and presentation are also an exhibit to the Form 8-K filed this morning. Some of the statements we'll make today are considered forward-looking and are subject to significant risks and uncertainties. These statements reflect our expectations about future operating and financial performance and speak only as of today's date. We undertake no obligation to update or revise these forward-looking statements. We believe the expectations reflected in our forward-looking statements are reasonable but give no assurance such expectations or any of our forward-looking statements will prove to be correct. For additional information, please refer to the safe harbor statement in today's earnings release and our SEC filings. Finally, we'll make references to non-GAAP measures during this presentation, such as Adjusted EBITDA. Please refer to our 2024 preliminary earnings release for further information about these measures, including reconciliations to the most comparable GAAP measure. Now I'd like to turn the floor back over to the CEO of iMedia Brands, Tim Peterman. Tim? Thank you, Jen. That is an exciting narrative. I hope it's not the most exciting today, or my first goal would have failed. Stay in scope, focus. People, especially the senior team, will hear that from me a lot, and they're probably rolling their eyes, but it is an important component. It's appropriate that the first slide in our presentation is really our company's scope, our company's focus. When you think about what we're doing, as I said, we build entertainment brands. We have three strategic criteria for any brand we build. Very important. Number one, it is a brand that is accelerating the online migration of its entertainment. When I say entertainment, that could be a TV show, could be a product, could be a service, piece of clothing, but it's their entertainment, and they're accelerating the online adoption of it. Number two, it has to be focused on our core customer, the boomer. Starts at 55, keeps going to 60, gets even bigger at 65. Very proud of it. You'll understand why as we go through the size and spending power of that customer. Number three, it has to be accretive within the year. We're not in any situation where we're able to do something like that, nor would we take a big strategic bet without it being accretive. Those are three very important things that, if done well, turns the wheel that we were talking about there. When you think about the brands we're building, then you think about the competitive advantage. The competitive advantage that we believe we have is the, as our entertainment networks revitalize that, for example, with ShopHQ and they get bigger, they create the promotional power, and they create the first-party data of some 35 million shopping enthusiasts, that the other competitors that they're competing against don't enjoy. That's a very important competitive advantage for us. The best way to talk about it is really as in live television demonstrated. Christopher & Banks, a great example. Christopher & Banks has been in business for 60-plus years, a vibrant brand, strong reason for being, just down the road from us. In January of last year, it just tipped over, right. Went bankrupt. The question is why? It wasn't because the 7 million customers it had suddenly stopped what they offered, suddenly stopped liking the unique quality and patterns that they created and the loyalty that they built over 50, 60 years. No. What happened was that they were operating over 400 physical retail stores within a complex corporate structure that was cash intensive on top of it because of that. That's why it tipped over. In March, we were happy to partner with Hilco, and I see Chuck's here from Hilco, and they are a great partner to us. We partnered with them to acquire it in March of last year, and we quickly got to work moving the circle through it. First thing we did was we created a television show, and we improved that television show and improved it to where in a very short period of time, Christopher & Banks programming on our air on ShopHQ is the most popular fashion programming we have. That consistent national promotion then created the demand, in our view, and you'll see it in our financials accurate. We opened five of their retail stores, their best-performing retail stores. We launched the first-ever direct-to-consumer catalog in the fall, which was, you know, as you triple touch a customer with video advertising and catalog and TV, it really drives the conversion. The first-ever catalog was important, and we did that as well. We just recently, if you saw the press release last week, launched an interactive platform called Style Me. The unique thing about Christopher & Banks was that they would have style outs in their stores. Now we created that digitally, and it's, you know, only a month ago that it launched, and it's driving serious conversion, customer service satisfaction. All of those elements meet the criteria that we talked about before. We are taking a physical store brand, and we're driving it digitally. We are accelerating that, and then it is accretive, certainly, and it is certainly focused on our core customer. Otherwise, think about it. It wouldn't have gotten that popular that quickly on ShopHQ if it didn't share that same customer. It's something that we're excited about. It is the perfect example of our strategy in motion. Big chart. A lot of new stuff on there. Again, revenue growth, it is accelerating, right? 2021, you know, we just put our numbers out. We're gonna grow by 21%, which is a strong performance for this year. 2022, the guidance we reiterated today is for 28% growth. That's significant as well. Also today in this presentation, you'll hear me talk about our first time we've offered a three-year revenue target of $1.5 billion. Sounds like a large number. It is a large number. How we get there, we think is conservative and we'll walk through that. The reason that I use the word conservative and the reason, you know, as a, you know, the backbone of our culture being financial discipline, the reason I say that is I feel good about it is because of the really four things. The first is ShopHQ is fixed finally, and that's been a long time coming. We've been around for quite some time. We've had the time and the courage to fix a lot of sacred cows, and that revitalized ShopHQ is very important for turning the wheel. It's not just really about all the stuff you've heard me talk about in the past with the programming and merchandising. It's really today's success with RNN, a very important distribution deal to take on HD carriage once we fixed the other things, is producing the results as expected, even better than expected. I know Christian's here and Dick, I believe, from RNN, great partners. Remember, those were HD carriage in the top eight markets. Did I get that right, Jessica? I believe I did. It is exciting to see. We know that as they mature, that 15%-25% growth will move to 35%-50% growth. Now we have ShopHQ moving, very important as the foundation. The second equally important factor why I'm so bullish is that the results in 2021 didn't just happen, right? 21% revenue growth, 70%+ growth in Adjusted EBITDA. That took 3 years, over 30 months really, to create the kind of culture and the kind of processes that can produce consistent results. You just can't do that coming from a flat stop. Now that we have that culture, it is a, it's a critical thing. Of course, I have to take the opportunity to have a Churchill quote about why this is a beginning point for us, is a quote. I'll have to read this one. Now, this is not the end. It's not even the beginning of the end. But it is perhaps the end of the beginning." Meaning we're just getting out of the gate. I'm from Kentucky. We're just getting out of the stall. We are moving in the right direction, but that took 3 years to get to that point. 28% growth in 2022. Let's just talk briefly about that, and we'll get into more detail. 28% growth, why do I feel that's conservative? Well, if you think about the gist of mechanics of what happened in 2021, just the annualization of the 3 acquisitions that we did make constitutes about 25% of that growth. We had 6 months of Synacor in 2021. We had 12 months. We had 2 months of 1-2-3.tv in 2021. We had 12 months. Same with Christopher & Banks. We started from a dead stop in March with no inventory. Call that 8 months, and we'll have 12 months. It's just on those elements before we add in the important initiatives you're gonna hear about today from the several in every single segment. Very bullish on that. When you think about that today, I think the, I think that really summarizes the reasons why we're so bullish. To recap it, think about it this way. There are four catalysts, ShopHQ, 1-2-3.tv, Christopher & Banks, and INBS. That's what you're gonna hear over and over again. Those are why. Those are the battering rams that are bringing us forward. I get to quote Churchill. Now I get to steal a line from Dickens, the Tale of Two Companies. Much like Dickens' 1859 novel, it was really about resurrection, right? It was about the rebirth of something dying, something regrowing. Really, as you look at our timeline, it's really the same theme. You have two different companies. The first company, ValueVision, spent its only 29 years really focused on doing many different things, but not one thing well consistently. It ran into some challenges that way. That decline further accelerated when in the last probably 10 years before 2019, we had five different CEOs rotating in every two years, each trying to really turn ShopHQ into a mini QVC or a mini HSN. These were all smart people. These were all smart ideas. The challenge is that it didn't work because our customers didn't like it. We were always historically big into wearables. We didn't have the vendors to support it, so that was very difficult. The pricing was never there. I'm sorry, let me back up. What that really means in reality is a very big home category at much lower price points to try to drive volume. If our customers didn't support it, because that's not what they're used to buying, we didn't have the vendors to produce it at a scale that would be affordable. As a CPA can tell you, what happens next is your average selling price goes down dramatically, your variable costs go up dramatically. That really broke the business model. That's what really, if you think about it's not a change of pace that breaks the company. It's these business model barriers that they don't see coming. That rapid succession of five CEOs put it in a place to where we put that to rest in 2019. That gave birth to what we have today and started iMedia Brands. As we talked about, the first step with iMedia Brands was to really fix ShopHQ. Many of you who I know I've talked about this in a lot of detail, but since ShopHQ, I'll center on just several key things. One, we reduced our overhead by $50 million. Two, we fixed the programming strategy by introducing static programming to build viewership. Three, we brought the gross margin rate up 500 basis points every single quarter because you can't scale business with a margin that low. Four, we introduced a record number of new brands, many, many new brands, and many of them stuck. Those detailed elements, we repeated again in 2021. We did it in 2020, did it again in 2021, and that's what really got us moving in the right direction. As you see on this table here on the chart, we began to assemble the other pieces. The other pieces came pretty quickly like a duck on a pond. Let's think about entertainment. In addition to the three strategic criteria in our head, every single time we look at a brand for entertainment, it was very important that any entertainment service that we built was serving a current strength of ShopHQ but being underserved. There's only 168 hours in a given week. ShopHQ, we know, does better as a balanced platform programming, so we go deeper into those. The first one we did was Bulldog, ShopBulldogTV, which is ShopHQ has 25% male, and that's driven by the Invicta watches. We went deeper into that and launched that in 2019. Jewelry and health, same thing. We think we do that better than anybody, and those were the next ones that we launched. We're also launching LaVenta in the spring this year, and that will be out of Miami. Again, the strength is we know the wearables programming strategy, that being jewelry, watches, beauty, fashion, and health, are the most popular programming strategy for that some 32-36 million Hispanic homes here in the U.S. Each of these are done for a reason. We find what works, then we go deeper. In the consumer brands, in addition to the three strategic criteria, just like with entertainment, we have one additional criterion. That is every brand that we either build or launch has to have a strong reason for being. It has to have borders, right? It can't be attractive to everybody. It has to have meaning. Christopher & Banks, perfect example. The inclusive sizing, the original patterns fit perfectly. J.W. Hulme, 105-year-old brand, all about craftsmanship, strong borders, both scalable. 'Cause if you don't have that, I don't care how much TV promotion you have, it's not gonna work. That's why it was very important that we did that from a building perspective. Media Commerce Services, we have. Just to remind everybody, Media Commerce Services is, think of all the services you need to compete with brands that are accelerating their online migration. That's the services that we're building. The first one that we did as we thought about that, in addition to the 3PL, the first one we did was advertising. It was Float Left, as we've talked about, and then it was really the Synacor transaction that we did last year, both of them around developing programmatic advertising and digital advertising. That's it. No, I'm kidding. In terms of this timeline and this Tale of Two Cities, we have assembled the pieces that we need to execute our strategy and to hit our targets. Who hasn't seen one of these charts? Total Addressable Market. It is an important equation of any company's growth equation, right? As we think about our TAM growing, you know, to ridiculous numbers, to me, the most important component of this slide is how are we entering these markets and why. In each of these situations, we feel like because of our competitive advantage, because of that national television promotion, because of that 35 million-plus first-party data from consumers that have shopped with our brands, we feel like we're giving an unfair advantage to each one of these folks. ShopHQ, we've talked about. Float Left, we've talked about as well. That is now operated within IMDS. IMDS is really. It's like the sticky notes from 3M. It is going to take all the material that we are producing as a result of doing well in our entertainment and our consumer brands, and it's gonna put it to work in an ecosystem, digital advertising, that's dramatically changing because of these third-party cookies going away. Equipping them with that gets us into an area that then you double down, and you use proprietary technology from 1-2-3.tv to enter and disrupt the hotel and the airline digital shopping formats. It's something that we feel is all part of the same strategy, all part of the same thing that we think about every single day. This is like a holy sh-- You would think with these numbers that, the other stuff might be better, right? I used to think naively that post good numbers, that replaces a robust investor relations program. That's not the case, right? We all. It's always a combination of both. As we think about how we're doing here, we know that with the investors sitting in the room, that the most important thing is share price growth as opposed to market capitalization growth. When we look at our performance over the last three years, you know, you look at the share price, you say, yes, it went from $3.30 to call it $7 today. You could say that's a low bar, or you could say that's a, you know, some 24% 3-year CAGR. That's okay. We think it should be a lot higher. The market capitalization, same thing. We started at $35 million and, you know, we're called $150 million today. Yeah, that's a three-year CAGR of 85%, but we're in the micro-cap space, and that's okay. It's not what we strive for. We're striving for something much stronger. When everybody looks at this, at least what I do, I go, why, right? The question is why is that disconnect? You can blame the past, you can blame all this. It's really on us. We carry the fixing that disconnect. It's gonna be a combination of things. Number one, it's gonna be communication. It's gonna be to reach. I forgot an investor. I'm trying to think which one I stole this from, but he talked about exit velocity. In order for us to achieve exit velocity from micro-cap to small cap, it really is about your operating strategy, your balance sheet. It's also about your shareholder growth strategy. I need to be out there talking to institutional shareholders who need to understand the why behind the numbers and then take a long-term position and build with the company. That's an important element of what we need to do to reach that exit velocity for us. When I say us, I mean employees, investors, lenders. I believe we have our lender here, Steve and Renee from Siena. Very important for all of us that all those components are addressed. That's some of the reason why. When we say some of the reasons why it is, if I'm gonna quote Dickens and Churchill, I'm gonna quote Beth from Yellowstone. How are we going to create wealth, get rich? I don't know if you saw the episode with Beth. She was talking to the young boy that she had just adopted, and she said something like this. She said, "You want nice things. You want the best. There's only four ways to get rich, kid. Four, that's it. One, inherit it. That ain't happening to you. Two, steal it. You do not have, my friend, the patience," et cetera, et cetera. "And then three, work really, really hard, okay? You learn, you fail, you learn more, fail more. Don't let anybody ever outwork you." That's really us, three. I mean, you'll get a sense of that. If you know me, you get a sense of it, but you'll get a sense of the senior team too. To do unreasonable things, it's not gonna come with ordinary effort. Like I said before, fancy thoughts don't get far if it's not with our grit. That's really what we think fixes that from an emotional perspective. From a mechanical perspective, you've got three things. Revenue growth. We've already talked about that. That's fine. You know, that's all very important. that can't go without what I would call EBITDA as a percent of net sales growth. Over the next three years, that has to go from where it is today, call it 7.5%, and it moves in our long term model to 25%. Because as you see the businesses that we're building, that's part of the destination that we want. We don't want a traditional consumer brands margin. We don't want a traditional TV retailing margin. We want to move from what's best in class in each of those is low single digits to more in the 20%-25%. We have a good roadmap of how to do that. When you take the revenue growth and you take the percent of Adjusted EBITDA as a percent of net sales, and that moves, in my mind, the why, that creates the multiple expansion. Multiple expansion today, again, low bar, we're at 0.3, right? 0.3 of our revenue. As we move from 0.3 to 0.5 to 0.7 to 1 and beyond, the neighborhood that you see that we're moving into, we don't have the scale yet to ask for those kind of multiples, but that is where we're headed, right? That's the neighborhood we're headed. We're not interested in competing with a broadcaster or Qurate. You know, our destination is that neighborhood. This is a reminder of really that it's three business units today. There are just some stats up here that are worth noting, right? You know, so we have. In case you wanna pinch yourself, yes, you're in Eden Prairie, Minnesota today, and I appreciate that. We have about 1,100 employees. Our ticker symbol or our stock symbol, IMBI, with our bond IMBIL, market cap, net debt we're covering. This really gives you a sense, and you'll get more of this, as we report, but these are the pieces that go in each of the respective categories. We've got another full motion chart for you of our locations. First, our offices, but we are global. We go from United States, Ottawa, Gatineau, representing the great country of Canada, as well as Germany, and you'll hear from both later today. We then move into where our retail locations. We have Christopher & Banks, we have J.W. Hulme, and we have Tissot. Tissot is very small, but we wanted to talk about it. That's gonna keep going no matter how long we stay here, so I'm gonna move on. All right. Management team. If you haven't already, you'll get to talk to everybody there. I would love to wax on. I've got a story about each of them, but I don't think we have the time. I might come back to it if I do. Very strong team that we've been. You know, if you look at it's a curated team of people that have been outside this company and inside this company because the muscle memory of the company had to evolve, and you have to do that with new DNA. Myself, new DNA. Yi Ling from other companies as well. Then you got to take a 13-year-old, which is Cassie, that's got the soul of a 50-year-old and let her do amazing things, and that's what she's done for quite some time for us, as well as John. I can't say enough about John. John's the first person I begged to come back when I joined in 2019. He is right there with us. Monty, I've known Monty for quite some time, and I was just proud to be able to promote him to CFO. It was good. I hope you guys got to meet some of our directors. We've got two of them right there, Chairman of our board, Lando. You know, when we assembled our board, and this. I'll wax on for a minute here. It's very important, just like with the team, that you have different people with different expectations and different skills. 'Cause a team is only as good as if everybody on that team has a different skill and everybody's doing their job, right? Lando has tremendous experience in exactly what we're doing, which is a matrixed organization in the media space, moving into the interactive media space. Every piece of it is critical. Darryl has the brand building, the entertainment background that we really need as we move into. You know, today we're not doing any nonfiction. We're all nonfiction. Doesn't mean we're not gonna do a chef cooking show or things like that. Darryl's relationships in the entertainment community are very important. Lisa, obviously, with the background in Qurate, also in HR, but she's been in bigger companies, Timberland, other very important brands that have strong reasons for being. Jill Krueger is our financial expert. She has been a partner at KPMG. Again, we're upping all of our level of board members to make sure that we're ready for the next level. When we get to the next level, we move to that next level. Aaron is a recent board member. He is what I would call our expert on digital advertising. Very important. OTT advertising, the whole ecosystem. Do you call it OTT or do you call it CTV, right? It's a crazy thing. Eyal obviously been our longest vendor here at ShopHQ. He was here when there was no internet, sleeping on the table. Hawking watches. You might hear from him later today. Michael, his partner in crime, has been developing all sorts of brands for us. This is really a gratuitous brag slide on our performance that we just published. We're proud of what we've done because it's just so unusual. It's just everybody has a spring in their step in our culture just because eventually you get tired of losing, right? We're now moving in a direction that is contagious. Full year, we're growing by, like I said, 21%. Q4, strong. Some of that from our acquisitions, a lot of that from ShopHQ, 'cause the acquisitions don't make sense unless we fixed the flagship. Important slide. You know, how best to talk about what we're doing from a capitalization of net debt. As you can see, we're at a. We did take on some debt last year to make these acquisitions. We're at about a three. You know, if you wanted to ask me what my Camelot was as a company, I think I like more 2.5 and lower, you know, lower rate. But 2.5 is a fine proxy for us. The delta between 3 and 2.5 is $25 million-$30 million. As I talked about on our guidance with our EPS positive guidance that we provide in the back half of the year, that's when we start to really, you know, look at moving that down. But just to give you a sense of our balance sheet and our capitalization. Now we're gonna move into the individual business units, right? We're gonna talk about them in a little bit more detail, talk about the people that are creating the value. In fact, if we have the Super Wheel on ShopHQ, could we queue that up? All right. Ready. Three, two, one . Volume would be excellent. There was a video of a live Wake Up in Style where we invited Heather's, who you'll meet in a bit, idea to create a live show where we brought customers in from all across the country. We have footage on that, and we'll show that at the end of the day. It was amazing. You know, I was opening doors at 7 A.M. I have footage on my phone. These people drove at their own cost, came, stayed at the hotel, and they were treated to a full day meeting their people that are in their living room every day. I mean, it's very meaningful to see the people and to see the passion that TV retailing can create when you're in their home every single day. I think that's it. The volume just stopped, but that's okay. You heard it from me. Management team here is excellent as well. You see some double playing here. Cassie and John are both at the corporate level and at ShopHQ because we are a flat organization, entrepreneurial, so there are no general managers here coaching. We're all in the game. Consumer brands and entertainment, which are closely linked, are, you know, operated by similar folks. Amy has been an amazing development from. She used to run on air, now she has all of creative. She's doing great, and I can't say enough strong things about Jessica. If I could put a finance person in every part of the company, I would. Jessica started in finance and now runs all of our marketing. Very important when you think about the optimization and the KPIs that are around content distribution, where we spend $80 million a year, search engine marketing, search engine optimization. There's just so much to do there. Couldn't be happier with Jessica. You'll meet Tom. Tom is a veteran of chaos in Sears and various other brands. I've worked with Tom in the past. He just joined as a divisional CFO, really focused on the operating side of the finance. Very important. You're here. It's in the ShopHQ studios. This is just really a little bit about what we've talked about in the past, and that is we are focused on the wearables category. When you watch a demo now, I think you'll get a better sense of what we do at ShopHQ. I would like to have a small demo of the experience, and so you can get a sense of what we do here from a TV perspective. I'm gonna invite out Heather Hall, who is one of our top ShopHQ hosts, been here a long time, and is an expert for any questions you may have about life in general or ShopHQ. She will. I will hand the mic to Heather, who is miked up. Is that right? I'm all ready. Now, I will do one small intro, and that is, as you watch, there are two personalities on the table. One is the host. She is or he is always the trusted concierge of the customer. That is the one that she hears in the background all day on the TV. Yeah, I got you, guys. She's continually- Mm-hmm. Introducing new ideas and new products to the customer. You'll hear her do what's called CTAs, calls to action. She's there to pull the information out of the guest and to make sure the customer knows that this thing ain't gonna last forever. The other person that you're gonna see is the guest. The guest is the person that is representing the brand, and it has to be authentic. You know, the customer sees right through anything that's like, "I'm here today to sell. What am I selling?" That is not gonna work, right? It has to be authentic. That guest is focused on doing one thing and one thing only. USPs, right? Unique selling propositions. They're there to tell them what's different, why this product, what's the quality, what's the feature. For that, I don't know, Heather, up to you. What you... Who do you wanna call up? I don't know. Anybody wanna volunteer? Probably not. Oh, wait, I have somebody in the back. How about CEO of Invicta and Vice Chairman of the board, Eyal Lalo. Come on in. Do we have a mic? All right. What you guys are gonna hear, what you're hearing just in your earpiece is two people behind the scenes, like The Wizard of Oz. You've got a line producer and a director. You're gonna hear them both. It's usually just going on in their ears. If you hear just monologuing without a script for an hour, it's them. They've also got all this other information bombarding them. All right. Hey, guys, what's the top-selling color, just so I know out of the gate? Black choice. When it comes to the watch, we're running still $50. All right, let's do it. You ready? Yep. Okay. You guys let me know. Count me in. Three, two, one It's a big night here at ShopHQ. Welcome back in. It is the unveiling of one of the most anticipated dials in the entire world. For the first time ever, innovators and leaders globally, Invicta Timepieces are launching a three-dimensional dial. Let me get you into your color choices very quickly because some of them are selling early. We're doing it for you in a gold tone. We have a gorgeous rose tone. We have it available in silver tone. For the collectors that already know that they want to get in on the black, let's get into the black dial because this is the pre-seller. It is available for this show and this show only, and you can see that we've already sold 120. Without further ado, let me welcome in Eyal Lalo, who is CEO of Invicta, and we're gonna get into the story of a three-dimensional dial for the first time in network history. Yeah, exciting. Thank you for having me on. Of course, you know what we are looking at, you know it's a very exciting opportunity to bring out our new vintage collection. When you look at all the different models that we bring out during the year, this is what we call an unveiling. It is one of the most exciting new product categories that we've brought in. In the vintage collection with the three-dimensional dial, something that we have never done before, bringing it exclusively and for the first time ever here. We have four great choices. Of course, you know, all a matter of taste based on, what a customer at home is looking for. What we do wanna mention is that it is an exclusive collection. It is only available here tonight, and we will be doing it on a new execution, which makes it one of the most expensive variations that we've ever done. Well, we have hundreds of people already waiting. There's about 145 already gone. Again, I'm showing that black option. We're gonna show that movement in the back. Eyal Lalo, let's get into the movement story that we're offering tonight. Yeah. Typically on a movement you'll see probably a quartz caliber movement or battery-operated movement. The distinctive feature over here is that we're actually putting a double open heart feature on it to give it a little bit more detail and accuracy to the watch. Now, it also allows us to decorate the dial the way we want it to and expose the watch to be a true mechanical complication. You're not talking about a battery-operated watch. It is really something that the collector that is so loyal to our brand is looking for. That's what you're seeking. We put it all together in one item, but it is exclusive and on a very limited supply because of the units that we can make of the movement. Quick mention, we're down to fewer than 85 to go around. Those of you that are interested in that black, I wanna do an official last call. We are in millions and millions of homes this evening. If you are interested in the unveiling, tonight's the night, pick it up. I do have a long wait in the call center right now. Let me just remind you, when we do unveilings, these are pieces that are years and years in advance. We have been working on this behind the scenes. I'm gonna get quick final thoughts from AL before we move on. AL, it's almost gone. Yeah, it is. It's exciting to allow us to come out here on live television, explain the product, even to tour the product. It's very different than what you see out there, you know, what you see in a typical retail where you just go see a product sitting on the shelf. Right. The guy in the booth reading to you. Here we can actually take you through a tour and show you all the detail. Obviously the, you know, the ValuePay makes it very exciting and very, you know, very accessible to everybody out there. Okay. I wanna mention, quick call out to all the new customers. I was just updated. We have lots of brand new viewers. Use our ValuePay system. That's $44 that will put this watch on your wrist by next weekend. It's an easy payment program, completely interest-free. Again, long wait in the call center right now. If I could get you to shop at shophq.com, that would be fantastic. Our time is done with Invicta tonight. I wanna quickly check in because from here we're getting ready to head into our Blue Stallion studio. Those of you that are holding, fewer than 50 now available in the black. 694354 is the offer number. Thank you AL for joining us. Yes. Sending everybody over to my friends Ali and Fatima who are taking over with Blue Stallion. Why, thank you, Heather. Wow, what a fabulous timepiece. Well, I have a very important question for you. What are you doing every day for self-care to treat yourself? My name is Fatima. I'm your host. I wanna invite you into the world of Blue Stallion Farm, luxury apothecary bath and body brand. What we are offering for you today is the flagship of product. The number one most popular. This is your set of four 8.8-ounce soap bars, choice of scent. These are all crafted with nourishing pure luxury ingredients, so that you get to treat yourself. You have all four bars. Normally, each bar over a half a pound is $15. We have four bars in a gift box for you, not for $60, but 50% off, $29.98. It's like you're buying two and getting two for free. We have three choices for you. It's going to be your From The Garden, your Pure and your Freshly Picked. We'll dive into the scents, but just know if you want that Pure, last call to order now. Let me introduce you to Allie Krings, our good friend who's gonna bring us Blue Stallion bath and body. Oh, Ali, tell us about this luxurious brand. Okay. Fatima, I am so excited to join you. Our founder, Gany Bernal, dreamed this up on her farm, Blue Stallion Farm. There, she felt this amazing connection, what you feel with nature, with Earth. She and her family have been dreaming up Blue Stallion for quite some time, and it's such a treat to be able to bring it to you here at the network. When you experience Blue Stallion for the first time, it's that everyday ordinary that we take up a level. We make it extraordinary with all natural products and only the best of scents. Oh my gosh. Oh, just wait. It's intoxicating. These scents are all inspired from the garden. I have to let you know, though, if you want the Pure, this is the only chance for you to get it because it is going to sell out. We have 500 left also in the Cocoa Cream, so that's a fabulous popular choice. Let's go through all the scents, Ali, 'cause I want everyone at home to experience what we are enveloped in here in the studio. Okay. When we start over here, this is when we really get into our freshly picked. If you wanna get the freshly picked, you're probably somebody who gravitates more toward those florals. Mm. Those beautiful scents. We're gonna get four varieties for you, all of your favorites, from Bali Bloom, which has that deep ylang-ylang, your Rosewater Blush, Jasmine Bloom, as well as Guava Blossom. That Guava Blossom is one of my absolute favorites, and I can't get over those gorgeous colors. Now, in your center, that's your Pure. That's gonna be for our purists who don't want any fragrance. Of course, you still get all of that amazing lather, all of that incredible beauty and the naturalness that we bring from Blue Stallion Farm. Then finally, we get into my favorite, which is what we call our From the Garden. This is what we say is maybe our foodie scents or if you find that you gravitate more toward a vanilla-scented candle, those deeper or muskier scents, this is where I want you to shop. Fatima, I've got to tell you about the box that it comes in. These are all collector grade. When you see the artwork here, you will not find this anywhere else in the world. This is only exclusive here. It's all been hand sketched by our very own artisans. Absolutely beautiful. I wanna welcome in all the new customers. Look at everybody. Welcome. Who's shopping with us. Over 10,000 spoken for. We have very limited quantities, and this will be the only show today. Take a moment every single day to treat yourself. You can only get this brand here and the nourishing ingredients will really feed your soul. ValuePay is the way to get this home, though, because $29.95 is half off, but you don't pay that today. $5 today to treat yourself, to gift those that you love. Take advantage of that. Those are our interest-free installments. Ali, before we wrap up, we have to talk about the nourishing ingredients. Oh my gosh. Mm. We use a couple of our favorites. Our primary ingredients, of course, is acacia honey as well as almond milk. You might have heard of these before, but they have these incredible properties to nourish, to rejuvenate your skin. We know all the time during the winter, you might feel that dryness. Not with Blue Stallion. That's why I want you to try this. Really, we energize that everyday experience. The good stuff. It's the good stuff. Half off, only through presentation today. Thank you everybody for shopping with us. Just know that when you're shopping today, only today at the sale price, you get half off. Each bar is normally $15. The whole collection of four, just $29.98. Last chance if you want to get in on the Jasmine Joy. A lot more coming your way here on ShopHQ. Stay tuned. All right. Guys, if Fatima, Ali, you guys can come up here. First of all, let's just go through some Q&A before we talk about the first section that we will do. I wanted to first give you guys the opportunity to ask, you know, questions that you probably are maybe wondering about live television. Anything you wanna ask about what they're doing, please ask. Ask away. Unless this is all just very normal to you. I'd love to ask, what are you doing with some of those live notes about what's selling and what's not? Are you guys trying to lean into what's selling the best and trying to kind of move some of the things that you might have left over? Just kind of curious how you're using those notes. One of the most unique things about this industry is when you work in the field, you're always wondering, am I connecting with the customer? On live television, we know exactly how we're connecting. We know the words that are connecting. With our producer and our director and the call volume and everything that's happening behind the scenes, we can pivot in a moment to make more money, and that's why this is such a great way to launch brands and tell those stories. As they let us know what's working, honestly, we're not worried with what's working. We wanna know what's not working. You know, you guys are for some reason the cocoa isn't selling right now. Then we can start to talk up the benefits of the cocoa just to make sure that those things end up selling equally. Yeah. Hold on a second. We're gonna mic, so we are webcasting this. We want everybody to hear your. Right, right there. How cognizant are you of the inventory of each product going in, and do you want sellouts to make it look like it was a really tough product, or is having the product sell out, you know, during the program bad? That is the perfect question. It's true. All of it is true, and you sound very familiar with this because that is one of our number one focuses as a host to make sure we know what's available, where is the deep quantity, where's the money, where we can really dig in. Yes, it is creating urgency. One of the things that I like to think about is we have our guest who's the expert, and Ali's a wonderful host here. She played the role of guest and Al the guest to build the romance of the brand, to really bring it to life versus if you see a product sitting on a shelf at your local store or mall, you don't have that same interactive experience. What we do is so unique that way. Our job as a host is not why buy it, but why buy it now? You know, it's expiring. There's a limited time offer. It's an exclusive launch. Those types of things. The sellouts and the urgency and the limited quantity, definitely tools for us. I feel that way. Mm-hmm. Definitely. You made a specific reference to new customers. There used to be an old adage that your core customer, you know, would watch you five or multiple times before making a purchase. Do you find that people are making their first purchase sooner? Is there a material difference in the age demographic of the new buyer versus the old buyer? I'll take that one. Tom, I would call that scope creep, right? Let's hit that question after the live party. I'll get to that one. That's a big answer. Anything about the... You know, the other thing that's amazing to me is that I've been a student of this industry for quite some time, is the host's ability to take in all that information live. They're only equipped with what we call a cue card, and they prep before they go out. They meet with the merchant. You know, there is an awful lot of prep going into this, and then it's like the narrowing of the highway. It's just them carrying this all out. No script, you know, this is all live, and they are constantly changing with new information. It's an amazing process to watch. How many different brands do you sell within, you know, a week or a month? You know, I think it depends. There are some shows that we do, and we always call one hour a show. There are some shows that might be dedicated to one brand. We'll come into another show, and a lot of our static shows, I get really lucky in featuring many, many brands. It's a hard answer because sometimes it's one brand in one show, and in other shows we might feature up to 15 brands or more. Yeah. I mean, aside from being a weekly show, you could have a different category every single day. Yeah. There's cooking one day and jewelry the next day and ready to wear the next day. It's always moving, always something interesting for the customer. It depends on the show. Yeah, correct. Your first hour is kitchen, your second hour is an elliptical, your third hour is fashion, and then you do a finale of jewelry. You are studio to studio sometimes for four hours live at a time. Yeah. The other important note I will say is that just as the customer begins to trust them, it's each one of these hosts here, all our top hosts, they all have their own show too, about a particular topic. You've got Wake Up in Style, fashion and fashion, right? They all three have a different proposition. It is. I just wanna illustrate, it's not just that they're going to a brand at a time. The customer sees the brand and is compelled. They're also compelled to say, "Well, what is Ali like? What is Heather like? What is Fatima like? What is Jen like?" That is equally as interesting to the customer. I'm gonna try to ask a question, not for Tim. A lot of your hosts and hostesses have been here for a real long time. What keeps you here, and what's your favorite thing about the job? I'll start because I think I've been here the longest of those of us standing up here. I've been here for 13 years. When you fall in love with adrenaline and you fall in love with live TV, personally, speak for myself, I also fall in love with a company that's nimble, that's innovative, that is taking risks and taking chances. I don't wanna just get stagnant and dusty and come in and start dialing it in. It's such a fun job. We meet so many people. The most exciting thing for me is helping entrepreneurs share their story and tell their story to millions of people and authenticity. I'm here because we do take risks, we take chances, and it's an awesome team to work with. I second everything Heather said, and I'll just piggyback off that. I've been here about 12 years now, and I love connecting with the customers. Honestly, like the live event that Tim brought up, and we used to do the just epic Invicta cruises, it's truly some of my favorite moments of my life, not just of my career, because the customers have so much passion for the product that they're investing in or connecting with us, and you just end up feeling that warmth. It's just a unique retail platform unlike anything else. I just feel like the way of retail, if it can get back to this in a really big way, is an opportunity for everybody. Mm-hmm. One more question, and then we'll move back to the, financial part of the programming. Yeah. You might not be able to answer this, Tim. It might be a question more towards you, but, so is this all of your on-air talent right here listed? No. Are there more? I think those are all our hosts for ShopHQ. Okay. Okay. There are other. Yeah. How has retention been? It sounds like it's been pretty solid for you folks up here. You know, do you plan to expand, and where do you find this kind of sales talent? Because it's a very unique crowd of people, that's for sure. Great question. That is a question for, I guess, me. We have a lot of opportunities and people that know the business really well. You know, we have a studio in Miami where we're gonna be doing LaVenta. A.L. has, you know, been in this business a long time. He might have ideas from hosts. I hired Ali, you know. Ali's probably the newest, and Jen's probably the newest. When I'm looking for a host, I'm looking for someone who is dynamic. They don't have to know TV retailing, but they have to be where they are doing something, where they're trying to get their story out. They're on TV, reporting. You know, that's always helpful. It is really just a. There's no one source, right? I think Heather was discovered in a jewelry store, right? Like, by another host. I was. I've gotten great ideas from Heather for different hosts. So I'm really just kind of a sieve. I take in all ideas from everywhere, right? Then we try them out. It is an art, but there are components to the personality. When you meet people, the smarts and the ability to communicate and the ability to get through on an authentic basis, you're born with. Now, the question is, can you bring that skill along with you, right? That's the art. It ain't easy. Let me put it that way. Thank you, everybody. Thank you. Thank you. What we're gonna do is after each section, we're gonna go through called a 10-minute Q&A. Just to give you some housekeeping of the day again. At about noon, we're gonna head back over for lunch. Shaq has got some stuff cooking up for us. But after every section, we're gonna do this overview section, then we'll get into the entertainment, media commerce services, consumer brands. After each section, we'll have a Q&A. Then at the end of the day, we'll have a longer Q&A. Each one of these Q&A will be about 10 minutes. You know, we'll take some few questions on, but so you don't forget them. I know we're all getting older. On the overview section, anything, any questions that anybody might have that I can answer? Tom. I asked you a question I asked you before. You were very impressive about that. Is this the full vision or is there something else you're looking at? This is the full vision of what we've assembled today to make our strategy work, right? The most important thing I can communicate to you today is how the entertainment network drives the wheel that creates the first-party data and creates the promotional power to grow these omni-channel consumer brands and to differentiate the tumult going on in advertising today with the third-party cookies going away. If I could do anything, it would be that the most important thing, one plus one equals three because of our strategy in motion. That is an important thing to remember. Will we be opportunistic down the road of launches and acquisitions? Sure, but they're gonna be small as they've always been. We don't need any additional businesses to execute on the targets we have out there. When I talk about our $1.5 billion, when I talk about 28% revenue growth, I'm talking about with our businesses that we own today. Those four catalysts, ShopHQ, Christopher & Banks, 1-2-3.tv, and iMDS. Yes. Can you talk about the Q4 slide? Oh, so they can hear it. Go ahead. Yeah. I was wondering if you could talk a little bit more about the Q4 results in particular. You know, specifically, it seems like a lot of other e-commerce companies out there and, you know, certainly QVC and HSN are already included in those, have been missing on profit numbers in the Q4. I know you guys obviously have a different model, different strategy here, but you still got to pay for the same boxes and freight and labor that they do. You know, can you talk about what drove the stronger than expected profitability in the Q4? Yes, I can. The question is, you know, what was the new information about Q4? When you look at our guidance out there, I think we were guiding at about $170 million in revenue. We came in call it the $190 million range, and profitability beat what we had out there for consensus. For sure, you're still seeing supply chain cost increases and challenges there. On the consumer products that we're shipping to customers, it's not as significant, right? If you're heavy into kitchen and GE, it's gonna be more. You know, we're reducing our home, so it's a little bit less. For sure, and it's not just getting the stuff into port and then saying, "Oh, it's ready at port," but it never comes out. It's like a black box. It's also just getting UPS to ship it. You know, they're coming up with all these crazy lanes, and, no, you can only ship this many, and you got to commit to this. There's all those complexities on both sides of a logistics issue that we did see some cost increases on. Otherwise, more would have come to the bottom line. Do I think they're permanent? I don't know. Are we basing an improvement on them? No, when we think about how we forecast our business. That's one, is that we had an outsized revenue growth as you think about it, that allowed us to continue to reach our targets. Another answer is that by design, we're having an increasing share of revenue that is in the information layer of shopping of media. That's iMDS is all advertising supported. There are no boxes to ship. Our value, our VIP program, where it's like an Amazon Prime, is again in the information layer. They're looking for subscriptions to discounts at other places, for free shipping. It's a membership. It's a loyalty service. That's also a way that as a balance, we are going into 2022 and beyond with the idea that our business model can withstand those types of logistics issues because they're not gonna get any better. You know, I love, as I talk about, I love the information layer of shopping. It's a very scalable thing, and it doesn't require as much cash. I think those two answers, that being a higher% of our revenue being digital-only advertising and then what one two three TV, they ship proper products as well, but their logistics inside of Germany weren't as significant. I'd combine all those as the answer to that. Thank you. Any other questions on Q4 or any of the other? Yes. Can you talk about the margin profile of the different businesses as they're segmented now, entertainment, consumer brands, and media commerce services? As that mix changes to the 2025 target, what kind of upward pressure do you see simply just from the mix of the business getting to maybe higher margin segments? Great question. How does the migration from a 7.5% bottom line as a percent of net sales get to the 25%? If you looked at the box. You know, we haven't given that granularity, but it comes from a couple things. Number one, the normal margin, when I say margin, I'm now talking gross margin, of the TV entertainment segment that we have today is in, as you've seen in the. It's in the mid-40s, below 40s, right? It's moved up some, and you now start to see it going into 45, 46 because the consumer brands margin is in the 46, 47, 55, 60. Because of the TV retailing's content distribution cost of, you know, whatever, $50 million, $60 million, $70 million a year, that's gonna be the factor that scale matters. With consumer brands getting the advantage of the promotion and having the margin profile that they do, which is significantly higher than the TV side right now, that is a driver. That's one of the drivers of how, as our consumer brands division grows, that margin will increase the overall company's bottom line margin. The other is around iMedia Digital Services with the advertising. As we move into the digital space with these type of sites, the margins are, like, for travel and for hotels are much stronger. You know, think of it as a comp shopper. You know, back in the day when I ran Shopzilla, right? You're in a margin business that is much higher than 25%. As you move into entertainment programming, that might be syndication. It's again, these are pieces of the pie that are coming into our model that are much higher than the margins in the entertainment group today and the margins in the digital services business today. Because the lowest margin we have today of the three segments is iMedia Digital Services. That is in the, call it, the 25%-30% range, depending on which of the products, and you'll hear Matt talk about these today, but the biggest part of iMedia today is they run a retail media exchange. They have significant competitive advantage in the marketplace because of their scale, where they are directly connected into SSPs and DSPs, a direct relationship and agreement with Google. And so they're driving an awful lot of volume, and they don't need the margin, and there's also not that fixed cost component of it. As we grow iMedia Digital Services with the advantages of iMedia, meaning all this shopping enthusiast data that's gonna help consumers decide what to buy, as that grows, that margin is also significantly higher. That is part of the margin that I talked about before with Shopzilla and the travel sites. It's a 60+% margin. As those grow into the fold, that's how you move from 7.5% to 25%. It's an important part of the evolution of the business, which is generating cash. One of the, you know, benefits I didn't talk about about the scale of two companies is we were blessed with a $360 million NOL as we moved out, and that's gonna be helpful as we produce those results. I also didn't get a chance. Go ahead. Thanks. Is that on? Hello? Hi. I had a question regarding the brand. I apologize, I don't know a lot of your brands, and you're obviously not up here selling, you know, Nikes. You're selling lots of disparate, maybe sometimes startup brands. As an investor or other shareholders, you kind of wanted to get a sense of how you feel about the risk of having all these smaller brands all the time. Do you take some of these smaller brands and then really grow them? How big of kind of the portfolio are those brands that are growing versus constantly having to bring in new brands? Great question. It's like a bill through Congress with a rider on that. Did I tell you how I hired Yi Ling? Did I already tell that story? I know I'm getting old. Is Yi Ling here? If you can raise your hand. Yeah, there's Yi Ling. Kathy, can you just raise so people physically see who you are, and John? Yeah, there he is, and Monty, right? Are they all there? Yeah, there's Monty. You would have to stand, right? She'll vote. I think I told everybody stories except for Yi Ling, and Yi Ling was... I hired Mei Ling as a consultant to help turn around the company when I was CFO here, and she did the project. I'm like, "God, you're good." I said, "Well, how much would it cost to hire you?" She's like, "You can't afford me." I was like, "Now we got to get you." That's the kind of attitude that's used to winning that we want, you know, as we move through. I just wanted to make sure I brought that note in. Your question fits perfectly with the slide, which is rare, that is here, which is what is different about the way we're operating the business from a merchandising perspective, or we call it a programming perspective. Your question about small brands, and it really gets to what's ShopHQ's reason for being as it goes against QVC and HSN. We are firmly a David and Goliath, Malcolm Gladwell advocate here, which is we are moving in a different direction. Our reason for being, unlike QVC and HSN for ShopHQ, is they are national brands, very big into home, and they are into exponential volume. Right? That is as opposed to us, we're wearables, which are categories, some of which they don't play big in at all. Jewelry and watches being those. Then you have beauty, health, and fashion. Now, when you ask about are they small brands, entrepreneurial brands, the answer is no, they're not. They're less discovered brands, or they are smaller brands that are $100 million, $200 million, $300 million because or $50 million. It really depends on the size, and I'll go through a couple of them. The difference starting in 2019 is that this company used to be almost an incubator for brands on their way to QVC or HSN. If they the Beekman Boys, for example, or the Anuschka or Patricia Nash, these were all examples of companies that they got to a point where, "Hey, I'm just gonna try this bigger place, right?" That is okay, but that's not what we wanted to do. When I came back, I said. The other thing that we used to do was we used to make big bets on poaching brands from HSN or QVC. Hey, let's get 1-2-3.tv. No, sorry. Let's get Serious Skincare from HSN and bring it over to ShopHQ. We did that actually. They're different platforms, and Serious Skincare is a great brand. Don't get me wrong, but, you know, in order to get a brand like that and to bring them over to our channel, we had to make all sorts of commitments on hours and programming and things like that. What happens is, to do that, then you have to alienate all these brands that have been with you for 10 years. That chaos in the customer's mind isn't worth the journey. What we're doing today is we're taking our top brands and really our top vendors, and we're saying, "What more can we do with you so we're more important to you?" Instead of you being a beauty brand that sees us trying desperately to bring in 10 other beauty brands every day to hopefully one day unseat you, we are working with a smaller group of vendors that we really trust and know and developing additional brands with them. On the chart here, you have really every category. Let's start with jewelry. Max Marc, Stefano are brands that, and vendors who we've been doing business with a long time, and we're doing additional brands with them. Invicta, you know, obviously our longest running brand, and we sat down and said, "You know the TV retailing business really well as a vendor, and that is not an everyday occurrence. What can we do?" Invicta has been amazing at creating everything from beauty brands like the one, Blue Stallion, to health brands and beauty. They've gone across the gamut on trying to help us build other brands. We're important to them, they're important to us, and that way you don't have this rotating incubator status. Manuela has been with us for 20 years in beauty. She does, you know, a much more clinical skincare, and she did a brand for men for us, for Bulldog. You know, the list goes on and on. MacKenzie-Childs, which is a brand that you would say is small, but it's got stores in New York and different places, and it has a global reach. It went into apothecary, you know, instead of just a tabletop. Again, we are looking at where we have white space and saying, "How can we be more important to you? How can you become more important to us?" That is a significant difference. Our reason for being is not to go after national brands, where you have to offer free shipping and a lollipop to compete against Amazon. That's not our bread and butter. You know, if you think about the marketplace in the U.S. only, you've got $10 billion between us and QVC, and we think there's a big opportunity for the wearables just in that category alone. Does that answer your question, sir? One more question, and then we'll go back to the regularly scheduled programming. To sort of build on the last question, it sounds like IMBI is sort of like a startup incubator or a venture incubator as well. What kind of other conversation are you having with these smaller companies so that IMBI can potentially participate in some of these, the upside that you're bringing value to these brands? You know, what does that mean for the equity holders? These aren't really startup brands. I would say think about it this way: We're building entertainment brands, and if you want to think about it, we're vertically integrating. We're saying a lot of the advertisers that come on our air, we're going to own, and we're going to grow them outside of the four corners of a television screen. They're not startups by any means. They're bigger companies. When we say bigger companies, you know, we like to focus on companies that generate at least $50 million a year so they can. I'm not talking about the ones we own. I'm talking about the ones we feature on our networks. We want to make sure they have the wherewithal to develop assorted products with us. That's the. Value creation is when we find an area that is very interesting to us, we build a brand or we acquire a brand thoughtfully that we can then use the television to drive the growth of it in an uncompromised way. Same with the advertising. We take that data. That's why we have the advertising business, because we think we can differentiate that in a moment of change in that industry with assets we already have. Again, it can't be. It's too hard to take a brand from 0 to 10. We prefer a journey from 10 to 100, and we really like journeys from you know 200 to 300. Again, that's gonna be how good are we? How good are we at the 10 to 50 and the 50 to 100? The 1 to 10 is just a harder journey, not something that we as a company will be focused on. All right. Thank you. If you've been to the investor conference with me, then you'll have seen this slide or at least a version of this slide. If you back up and think there was a ten-year study just published last fall from the U.S. Census Bureau, and it went through what are the demographic changes over the last 10 years. The boomers, which started entering this 65 and older group, started entering in 2011, and the group has grown by some 34%, the fastest-growing group. There's other shocking details in this U.S. Census Bureau, like the age group 18 and under has actually gotten smaller over these last 10 years. This group is the centerpiece of our growth strategy. The buying power, let's call them 73 million, is 10x what the millennials are, which are slightly bigger, but not growing as fast. As you see our wheels in motion, you can look at our customer file, active customer growth. You know, actually, for the previous seven years before 2019, our customer file was declining. Then it started to, as I call it, and people were like, "I don't even get that." We started to arrest the decline, and each quarter that decline got smaller. Nobody really cared until it peaked out over the other side, and they're like, "Oh, how did that happen all of a sudden?" It really doesn't. You can see it's a pretty steady customer growth initiative. You know, we haven't gone back. That's because all we're doing is focusing on that. There were times at ShopHQ in the past where we'd have on products and merchandise for millennials because the buyers, and Cassie doesn't have any of those anymore, that they were very young, and they wanted to do what they thought was cool, not what the customer thought was cool, because there wasn't any real priority on everything we do here is about that boomer audience. That just raises our revenue production because everything we're doing is focused on engaging that age demographic. As that age demographic goes, Nielsen has done and continually updated their five-year study on viewership. Make no mistake, we think of the OTT and the next generations who've never really watched linear television as an opportunity for us, but we don't think of it as a threat right now. Our core customer that we just got done talking about is still actually watching the same amount of linear television than they were 5 years ago. It's an important component to note, but it's not something that we take lightly because we know that viewership transforms to the most popular technological platform and has been doing it for 30 years. It started with radio, broadcast television, cable, ISP, now OTT. We will build as the critical mass builds for our core customer. That's why we acquired Float Left, and we already have our float. We already have ShopHQ, excuse me, on Roku, Amazon Fire TV Stick, all the major platforms. This is a quick reminder of our station launch with RNN. Where is Christian? Is he here? Is Dick here? Yep. Excellent. And where is Dick here? Yeah. Okay. You know, we've been talking. We've known the RNN folks for quite some time, and we've done limited deals with them in New York in particular for the last four or five years. This was just an amazing opportunity for us, and it's producing. I can't say enough good things about it. These top eight markets, never having HD carriage in New York, which is our biggest market, is an expensive endeavor, but we never would have done it until we fixed ShopHQ because it was never fixed. It was never there. Now it's fixed, and now we're reaping those benefits. As much as I love the one-to-many model, which is the broadcast model and the OTT model, depending on what platform, there is still the emerging social commerce, which is going to an influencer in beauty and saying, "Hey, listen, I'm gonna. You're great. We're gonna give you this product, Isomers, to sell, and you can go sell to your community the way you feel is relevant and engage them, and then you'll get a percent, and then we'll get new customers through that, what we call the many-to-many model. It's growing, and we're participating in it. It's early days, but it will be significant. It will never be of the scale of broadcast TV, but it's certainly an important part of the piece, the puzzle. Do we have a sizzle reel on the Bulldog? Well, let's have it. That's our mascot, Dog. It's a real dog. It's been trained. Might be some stains here and there, but he is around. Bulldog is a service for men and women shopping for men's products and services. It is. We're taking our advantages with Invicta and with the male audience and building out that channel. Each one of these niche cable networks, and I'll quickly flip through them because we'll move to the next section, are, as I said, designed to address an underdeveloped, a strength in ShopHQ. They're never going to be networks that are fully distributed. They're gonna be in 20, 30, 40 million homes. They're gonna be search engine marketing based. They're gonna be more digital. You know, we're working on a deal right now to put Bulldog with regional sports nets, you know, in incubated time slots. There'll be different ways that we go about it to try to go deeper in there. It's not going to be the broad-based big channel that they have, but it will take advantage of our vendors and our customers and, really, our passions. We love everything about this channel. Health, same thing as jewelry here. They're both categories and vendors and customers that we have. Going deeper with them is important. I will say that jewelry is also our first OTT streaming service that we're working on. I think I've talked to many people about this before. So, you know, you go hyper niche in the streaming service, you know, very similar to the nonfiction streaming services that are going on with Curiosity Stream. The idea here is we do nonfiction, and we have all this, these vendors and this programming around the development of gold, the trading of gold, how it's done, the personalities. It's just a very interesting thing as you go deeper into one area. From a linear television perspective, jewelry, health, Bulldog, all building on the strength that's underserved on ShopHQ. Shop LaVenta is same. We've already talked about it a bit. I'll just pause there on that and introduce, because we have the time before lunch, 1-2-3.tv. We've got Jörg, who's been drinking coffee here for the last 2.5 hours. He's waiting to come up here and speak a second language, and that's what we're gonna do. Just to give it some context. I'm not done monologuing, Jörg. Come on up. I'll move over here so you can. The idea that, you know, when we began to talk to the folks at 1-2-3.tv was the gamification that the business is. It's not really, you know, when I ask Jörg, what is it you do, right? You know, and he talked about gamification. He talked about the emotional engagement of customers and how they wanna win and how they wanna participate. And that has been something that I personally have been and at ShopHQ trying to figure out how we engage in gamification. The idea first of that, and then as we got to know the players and the culture at 1-2-3.tv, and you realize, oh my God, there's like. His head of planning used to be our planning, worked for John back in the day. John used to work with Jörg back in the day. There's all these different connection points that we really understood, you know, how they think and what they're doing. The German TV marketplace, also very similar, but they're vendors. You know, their biggest gold vendor is Stefano. They do about the same amount as a percent of total sales in watches, right? There's all these similarities that go on. Let me throw it to my colleague, Jörg, and you can start, and I'll tag team with people. Why don't you go ahead and tell these folks what you're thinking. Thank you, Tim, for your introduction. It's an honor for me to present 1-2-3.tv here today. I'm the foreign part of the event. We work fast and hard, but speak a little bit slower, and especially when it comes to English. Please excuse that. Before I start, a question for you. Have any of you bid in a live auction? Then you know what a thrill it is to get a good deal. Our customers bid more than 10,000 times every day. To give you a better idea of what we do, I brought you a recording of a late night show. Can we start with the video? Can you lower the voice? Yeah. I explain a little bit about what he's doing here. Each customer pays the lowest price regardless of the price at which he bids. The producer has three parameters: the price, the time, and the quantity. The bar, when the bar reached the end, the price dropped EUR 1. The producer can go higher with the quantity, but not lower. It's always to be the customer safe to the end of the price. The producer has in the control room all the historical data to produce the show and to get the best price what he can get of the historical data of this product. You can see how many people are on the line, how many people online, and how many people on the app. He is always talking about how many people are now interested in the product, and so to push the voting of this auction. We can stop with the video. Yeah. I would just note that. Yeah. It's amazing to watch, you know, 'cause when they tune for two or three minutes, and then when the auction starts, the music changes. It gets more intense. That starts to flash, and you're going, ooh. You know, you actually feel it you know, as it's going down, and you're like. The Dutch auction, maybe just explain, 'cause Dutch auction, I know the investor community has actually used, but give a little sense, Jörg, of what does it mean. How does everybody pay? What price? Everybody pays the lowest price. Then, the auction starts, and you give your first vote for a higher price. You are safe, and all customers pay the lowest price in the end when the auction ends. This is the Dutch auction benefit. Yeah, this is the thrill of the customer to get a good deal. Every day, we have over 10,000 different auctions, and this is what the customer likes for 1-2-3.tv. Yeah. It's very different than TV retailing here, where a customer service is calling in and going, "Yeah, I think I have that red blouse, but I'm not sure it's size." They're talking, it's like 2, 3, 4 minutes, whatever it happens to be. Mm-hmm. The customer's calling in, and they're just pushing, "Vote. I'm in." Right? And you don't even have to be a customer yet just to establish their place. Mm-hmm. To tell you that it's gamification. It's not an 800 number. They're actually paying a small fee just to participate in the auction. It is a totally different experience. Mm-hmm. of gaming that it is disrupting TV retailing, but it's just. Mm-hmm. I just wanna make sure that those key changes are clear. Yeah. 1-2-3.tv is very proud to be a part of the iMedia family. This cooperation opens up new opportunities for 1-2-3.tv. We can roll out our business model in the world's largest commerce market and bring the know-how of strong group to Europe. Germany has the population of 83 million, and our target group of baby boomers and Gen X is the largest at 30 million in Germany. 1-2-3.tv has a TV reach of 40 million households in Germany and Austria. When Tim and I first met, he asked me what makes 1-2-3.tv so special. I answered him that 1-2-3.tv combines three key success factors for the customer. Entertainment, live interaction, and gamification. This is how we are disrupting the traditional German commerce market. The DNA of 1-2-3.tv is auction, which creates a very special customer excitement. The customer is part of the community, getting advice, thrill, limited offers, always the best deal, which opens up a whole new market, field that is the inspirational shopping market. Together with the teleshopping market and the inspirational shopping market, we are talking about a EUR 9.3 billion market in Germany. Four major growth areas with us from the cooperation with iMedia Brands: leverage iMedia Brands, 1-2-3.tv auction as software as a service, 1-2-3.tv geographic, and 1-2-3.tv second channel. Leverage iMedia Brands. iMedia Brands portfolio is huge and an asset to 1-2-3.tv. The first test in January with Invicta was a huge success. Never before has a watch show made so much sales and was completely sold out one hour before. Nine more iMedia Brands will follow in Q1. Sorry for that. The 1-2-3.tv auction software as a service with the digital auction, yeah? Did we brag on the event already? Yeah. Yes. We have the event. Sorry. Yeah. Yeah. Yeah. It's good you are here. We were there a couple weeks ago. Yeah. Did everybody get that? That's one of 1-2-3.tv's top shows. We flew them over for a live event, you know, 'cause we're testing this out, right? It's obvious that they have all the same categories that, but you gotta try it out, and the live event was a huge success, sold out in half the time that we're supposed to do. We've already done that, right? Now we've got other brands from Isomers, which is very big in that whole area, coming on in beauty. They have the same white spaces where we're taking bigger brands that they normally wouldn't have access to and bid for us, and we're putting it on that platform. It sounds really simple, but when in human terms, it's very difficult, right? Mm-hmm. 'Cause you got all these different people, so we're having to create processes of, you know, how do you get the merchants from our channel to give them not only Isomers but also give them the products from the show runs that work really well for us, and how that is, and the lessons and the promos, so they don't have to recreate the wheel. Those are the things that we're working on quickly, but those are important things that we think raises 1-2-3's productivity. One question to you. How long do you think we have prepared this live remote from Miami to Germany? Any ideas? 12 seconds. Tim Peterman was sitting in Germany on Monday, and a Sunday later, we create this live remote, yeah, from Miami. That shows us how the synergy between iMedia and 1-2-3.tv works, and that was the fastest decision what we have ever made. It was a very great show, what we have. Yeah, it's time frames, right? Old in Germany is 1,000 years. Old here is like 100. When he says, "We're gonna roll something out through the year," you know, roll it out, and I'm like, "You mean this week?" He's like, "No, through the next 4 quarters." I'm like, "Oh, that's it." We're here and now, right? We're just throwing it and shortening the time frame. It's been, like I said, though, every one of his senior team is very used to this nimble type of opportunity. It's just letting the horses run. Yeah. It was a great success and a great show. Yeah. We come to the 1-2-3 auction software as a service. With the digital auction models and the auction platform, 1-2-3.tv is able to scale its model x times. As a back-end solution, as a complete solution, as a pure data model. With 1-2-3 Travel, we will take the first case live in summer. 1-2-3 Geographic is planned rollout depending on the country specifics. They go live in United States in the summer this year. We build our first major proof of concept in this summer, and this will be the first gate to see how we can scale our platform and our auction model to the United States. The opportunity, and this is a lot of discussion, is for 1-2-3.tv around prioritization, right? We are prioritizing ruthlessly around 'cause of time and attention, and that is growth in Germany and its surrounding areas, which they're already, you know, moving into, which is Austria and Poland. When you think about the U.S., you know, you could say, "Well, let's just launch a 1-2-3.tv network, right? 24/7, go at that." We think about the hotel and travel auction platform, and we have some other auctions formatted to, you know, enter this marketplace. We think with the assets that we have and the promotional power of ShopHQ to go after these customers when we launch the site, which is the reason we're doing it, because we have that competitive advantage is a bigger near-term opportunity, right? That's a significant near-term opportunity that we'll be launching in this summer. That's it. It's not saying that we aren't going to do a live TV retailing one two three here in the U.S. It's about prioritization. Then those first two steps, Germany and travel disruption here are our top two priorities. In the last column, you see the 1-2-3 second channel. The German market also has growth potential that fits perfectly with the 1-2-3 portfolio. The German e-commerce market in food sector is EUR 7.5 billion. 20% of the 1-2-3.tv revenues came from the food segment in 2021. The supplier portfolio includes all food assortment areas, and 1-2-3.tv is therefore in a positioning to have its own food channel. I'll add to that. It is shocking. You know, I came from Scripps. You know, the Food Network and HGTV. There's no food channel in Germany. There's a lot of food. I mean, I've eaten a lot of it. It's a big industry. We're fascinated by it. When we think about this opportunity, it isn't just gonna be TV retailing and gamification of it's gonna be. You know, we have content shows planned as well. We think there's advertising-supported ideas in that market as well. It's a very big category that's very underserved. The management team. Oh. Coming up. Okay. One more. Here we are now. The management team is young, except for me, but already has many years of experience in the area of commerce, media, and IT technology. Our spirit is an entrepreneurial culture, very strong commitment to the young, to the company and what we do. In 2018, we had only one TV auction format. Today, we have four different auction models that we can play live, digital, and on all touchpoints. At the moment, we use six different variants. The different auction models perform various tasks. For example, a falling auction can move a high number of units in a short period of time. A rising auction achieves the best margin for a product. A sealed auction generates interaction and frequency. This creates a wide range of possible applications. The competitive situation in Germany is similar to that in the United States. QVC and HSE are the biggest. 1-2-3.tv is the youngest, but not the smallest and the fastest-growing channel in Germany. Kind of back to this. iMedia and 1-2-3.tv has all the assets and potential to disrupt the commerce market. In Minneapolis and Munich, we are ready to make history and to, yeah. What are you? Just organizationally, we are. I'm a big believer in decentralization. Jörg runs a great team there. You know, in terms of value add, we're very, very focused on limited spots where we can, in Germany, help with the merchandising brand. The same goes with how the 1-2-3.tv's auction in the travel is gonna be run. That's gonna be run by Matt Giardini, who runs our iMDS team, because he knows the digital marketplaces here in the U.S. He's got the experience that we need to make that a success. He will be using the proprietary platform for auctions that 1-2-3.tv has developed. Splitting the team from 1-2-3.tv that's got a very aggressive agenda of on its own, on the things I just talked about, is not what we think is the right thing to do. We think the right thing to do is to use our experience in the different markets and be as selective as possible when you talk about synergies, make them real, make them defined, that happen and then move on. Any questions? This is a Q&A session now that we've finished all of the entertainment brands, and before we move into consumer brands, which we'll do after lunch, and before we move into IMDS, which will be at the end. Does anybody have any questions on any of the services? Hold on. Someone get you a mic. Can you explain the inventory model for 1-2-3.tv, including how you're gonna do that for travel? I'll answer that if you want to. That's your yeah. The inventory model is a physical inventory model for 1-2-3.tv in Germany, and that is just like us here. When you think about the tests that we're doing with the merchandising brands, we're just putting our inventory over there on consignment and seeing if it sticks and then move it on. They start buying from the vendors that we're using directly. It is the same model. They do not own their own warehouse in Germany. It is done by DHL, which is a very big 3PL there. Virtually the same as us, although they must brag that their inventory terms are better than ours at ShopHQ, which is a good competitive thing to have, right, Cassie? In terms of travel, there is no inventory, right? We are working with hotels, and we are working with the airlines, to secure the inventory. Just very similar to what iMDS does today. They work with all sorts of supply-side providers that provide the content that they monetize. That's why it's in iMDS's house, in their wheelhouse, because that's what they do right now. Maximizing that with, you know, a couple different experts in that area is how we build that. Yes, Mike. For 1-2-3.tv, what iterations could you have in terms of engaging with audiences with that solution? Would you think about doing something white labeled in a way where you would power Priceline's auction service? Would you do production and entertainment and have a 1-2-3.tv entertainment event or channel, CTV channel, whatever it may be, in North America? What are the different ways you could go to build entertainment around that? Great question. We're gonna focus on business to consumer and us being the owner operator of that auction proprietary platform. In Germany and in other places, we are focused on once we productize, which isn't an easy thing to do, but once you productize a SaaS, the auction platform, we can do that as a model in Germany and other areas. But here in the U.S., our strategy is to have our own site that has two primary elements. One is it will have what we call a TTV, which is today's top value. But there'll be a feature, live streaming featured hosted element on that site that is engaging, entertaining with a trusted resource about a particular event, a particular hotel, whatever that happens to be. Then there will be, as part of that, a live auction. There'll also be several different kinds of auctions that are designed to move more volume, but still create that sense of urgency. I can't go into what those are, but they won't be. This travel site will not be dominated by the reverse Dutch auction platform that you see today. There'll be several other kinds. So does that answer the question? We're not gonna syndicate it out to other companies or power other companies in the U.S. Oh, we have a hard stop. Is Shaq here? Yes. Oh, my God. I thought that blacked out the lights. That is Shaq. Well, please have a round for Shaq. Hello. It's a big guy. Whoa. Hi. Stand up here. Okay. I'm supposed to read a teleprompter, but I'm not. Tell 'em. My name is Shaq, and I'm also an investor in this company. 10, 15 years ago, I heard a gentleman by the name of Jeff Bezos speak, saying, "If you invest in things, it's gonna change people's lives. Always get a great return on your investment." When I make investments, it's not about money, it's about people. I met this gentleman. I met Eyal Lalo. I fell in love with him. He asked me to be a part of their company. That's why I'm here. I flew up to cold Minnesota. I don't like the cold. I live in Florida. Yesterday, I had on some little shorts. I was sitting by the pool, and now I got on this big fur coat. This is why I'm here. I'm happy to be here. Look forward to, you know, meeting each of you guys. I'm glad that you guys are also investors. I'm gonna do my part as a center. You throw me the ball, I know what to do with it. Hopefully it's a great ROI for all of us. So far it's been, you know, very, very uplifting for me, you know, to be here. Thank you for the partnership, and I appreciate you guys very much. If you don't have a ShaqWatch, make sure you get one. Thanks, Shaq. Yeah, Shaq's an amazing partner on a bunch of different levels, not just with the kitchen products, not just with Invicta, but really just elevating everything from an emotional perspective. A lot of the messaging and that he does on the site isn't just about the product itself, it's just about engaging personally with the customer. What we're gonna do now is go try some food that was made on some of the products that you made, 'cause these guys have been sitting here listening to this monologue for two hours, and I think they're ready for some lunch. Let's do it. Let's do it. Let's all head back into the first area where we were and we can then mingle. Shaq will be there. Obviously, our senior team will be there, and we'll figure it out. We'll work 'em out and do it, bro. How we doing? Good. Doing good. It's been a long time. Yeah, I know. You know, working. Goddamn, I was just hungry.