Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

Overview

Convesio provides WordPress website agencies with a platform for hosting scalable WordPress websites without the complexity of traditional cloud providers. Convesio sites outperform traditional hosting providers, reducing client complaints. We simplify hosting, providing a high availability, secure and scalable platform for client sites and streamlined workflows for agencies. This enables agencies to differentiate hosting and use it as a true selling point while maximizing hosting profits.

The hosting market is primed for disruption as businesses realize they cannot reliably host their website on discount legacy providers. Convesio's approach and technology makes it a clear choice over legacy competitors. Our aim over the next 5 years is to have a global server presence and host tens of thousands of websites. 

Milestones

Convesio, Inc. was incorporated in the State of Delaware in February 2018.

Since then, we have:

• Developed an innovative container based platform that allows faster scalability and performance than other leading products on the market.
• Hosting 100+ websites, with more than 300 million requests per month, and increasing each day.
• Deployed 15 clusters: N. America, UK, and Australia
• Increased marketing, sales, and operations team with new hires.

Historical Results of Operations

Our company was organized in February 2018 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended December 31, 2019, the Company had revenues of $13,086.01 compared to the year ended December 31, 2018, when the Company had revenues of $0. Our gross margin was -1457.42% in fiscal year 2019, compared to % in 2018.
• Assets. As of December 31, 2019, the Company had total assets of $883,240.55, including $405,827.82 in cash. As of December 31, 2018, the Company had $0 in total assets, including $0 in cash.
• Net Loss. The Company has had net losses of $465,437.53 and net income of $0 for the fiscal years ended December 31, 2019 and December 31, 2018, respectively.
• Liabilities. The Company's liabilities totaled $0 for the fiscal year ended December 31, 2019 and $0 for the fiscal year ended December 31, 2018.

Liquidity & Capital Resources

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 months before we need to raise further capital.

We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.

We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.

Runway & Short/Mid Term Expenses

Convesio, Inc. cash in hand is $470,745.58, as of May 2020. Over the last three months, revenues have averaged $4,440.33/month, cost of goods sold has averaged $36,757.35/month, and total operational expenses have averaged $68,606.56/month. Our intent is to be profitable in ~24 months.

We have increased spending on sales and marketing in order to grow top line revenue. The full impact of the Covid-19 pandemic is as of yet unknown, but we are seeing a slow down in sales against our forecast of approximately 30-45 days so far.

Over the next 3-6 months we will continue our sales and marketing strategy while conserving capital by optimizing our infrastructure footprint. We have seen 4 consecutive months of revenue growth in 2020 and expect that trend to continue. Through the first 3 months of 2020 we had an approximate MoM revenue growth rate of ~20%, In April we exceeded 40% and forecast 30% over the next few months.