D2L Inc.

Good morning and thank you all for attending today's D2L Inc Q1 fiscal financial results conference call. My name is Brica and I will be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, press star one on your telephone keypad. This morning's call is being recorded on June 11th, 2025 at 8.30 a.m. Eastern Time. I would now like to pass the conference over to your host, Craig Armitage. Thank you. You may proceed.

Thank you and good morning, everyone. Listeners are reminded that portions of today's discussion will include statements that contain forward-looking information. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from a conclusion, forecast, and projection in the forward-looking information. Further, certain material factors or assumptions were applied in drawing a conclusion or making a forward forecast or projection as reflected in the forward-looking information. For identification and discussion of such risks, uncertainties, factors, and assumptions, as well as further information concerning forward-looking statements, please refer to the company's annual and interim management's discussion and analysis and the most recently filed annual information form. And each case is filed under the company's profile in CDAR Plus at www.cdarplus.com. In addition, during this call, reference will be made to various non-IFRS financial measures, including constant currency revenue, adjusted EBITDA, adjusted EBITDA margin, adjusted gross margin, and free cash flow. These non-IFRS measures do not have a standardized meaning prescribed by IFRS, They may not be comparable to similar measures presented by other companies. Please refer to the company's MD&A for the three months ended April 30th, 2025 and 2024 for more information about these and certain other non-IFRS financial measures, including where applicable a reconciliation of historical non-IFRS financial measures to the most directly comparable IFRS financial measures from our financial state. I'd now like to turn the call over to Mr. John Baker, Chief Executive Officer at D2L. Please go ahead.

Thank you, Craig, and thank you, everyone, for joining us for our Q1 earnings call. We released financial results after the markets closed yesterday, which you can find on the investor relations section of our website at D2L.com. Please note that the results we're discussing today are in U.S. dollars. I'm joined this morning by Josh Huff, our CFO, and I'm pleased to report it was a solid start to fiscal 26. their team executing successfully in the current macro environment delivering efficient growth and strengthening our fundamentals the q1 highlights include total revenue growth of nine percent to 52.8 million subscription and support revenue rose 11 percent to 47.7 million adjusted gross margins are up 360 basis points to 71 percent Annual recurring revenue was up 9% over last year's Q1 to $206.8 million on a constant currency basis. An adjusted EBITDA grew to $9.3 million with adjusted EBITDA margin at 17.6%, more than double the 8.3% we reported in last year's Q1. As we shared in April, With our year-end results, the macroeconomic environment continues to present short-term challenges. This is most apparent in U.S. higher education, where we've seen heightened levels of uncertainty leading to delays in evaluations and decision making. This remained consistent in Q1, with a slight increase in market activity in the last month or so. As you know, a learning platform is a mission-critical part of an institution's technology stack. And increasingly leaders I speak with appreciate that a modern AI first learning platform can be an important solution to enhance learner engagement, drive student retention and therefore revenue retention and enabling new learning modalities with greater efficiency. And despite the current market dynamics in US higher education, our sales pipeline continues to build. Our competitive position is getting stronger. and we're winning more than 50% of the available opportunities in North America higher education. In Q1, these wins include LCI Education, a group of 12 institutions on five continents, educating over 20,000 learners. This innovative institution is widely known for its leadership in technology-based learning. And Knox College, a leader in theological education, is transitioning its students to Brightspace, shifting from a legacy venture. International and continue to grow our footprint, adding great new customers. In Q1, these included the University of Otago, New Zealand's oldest university with more than 20,000 students. Universidad de la Sabana, a top private university in Colombia, where Brightspace now powers six of the top 10 private universities by ranking. And we also welcomed Hogan University, one of the largest applied sciences and arts universities in Belgium, with more than 17,000 students. Our win rates are strong across our corporate markets as well. In Q1, we continued to expand the customer base, adding the Institute of Electrical and Electronics Engineers, often known as the IEEE Computer Society, and also Pantheon Academy, among others. In addition to new customer expansion we're leaning into our existing relationships, providing additional value to customers and growing our net revenue retention. Our upsell and cross-sell motion is improving and we're seeing healthy pipeline generation for new products, led by our AI offering D2L Lumi and Creator Plus. As an example, towards the end of the quarter we landed a system-wide Lumi expansion for a large US higher education system. In general, the future of AI continues to be top of mind in my conversations with customers and prospects. D2L recently partnered with the Online Learning Consortium to study how students in higher education perceive and use generative AI technologies. The report shows that students are embracing and unlocking the power of AI, and they want their faculty and institutions to meet them where they are in the learning journey. This highlights the need for investments in AI tools that can boost engagement and facilitate important personal learning interactions. Each volume is well positioned to improve the student experience with AI, while at the same time increasing the efficiency for educators. Building on the strong foundation that we've built over the last 25 years, we are leaning into our AI first learning platform strategy. We believe that AI will act as a catalyst for new investments to improve the learning experience and outcomes And this is a chapter that we believe will be more impactful for our clients than the move to the cloud. We have a robust innovation roadmap for D2I Lumi across all of our products, and we continue to look forward to sharing more at our Fusion Users Conference next month. We're pleased that our commitment to innovation and product design continues to be recognized and awarded. In Q1, Brightspace was named one of the best education software products by D2. The D2L was named one of the best software companies in Canada and one of the world's top ed tech companies 2025 by Time. Looking ahead, we remain focused on balancing near-term performance with strategic investments as we work to become the number one in targeted education markets globally and establish ourselves as the next generation learning platform for corporate upskilling. With that, I'll turn the call over to Josh. Over to you.