kneat.com, inc.

Good day and thank you for standing by. Welcome to the NEET Q2 2025 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Katie Keita, IR Lead. Please go ahead.

Thank you, operator, and welcome everyone to NEET's earnings conference call for the second quarter of 2025. Please note the Safe Harbor statement on slide 2 and the forward-looking statements disclosure at the end of the earnings release, informing you that some comments made on today's call contain forward-looking information. This information by its nature is subject to risks and uncertainties, so actual results may differ materially from the views expressed today. For further information on these risks and uncertainties, please consult our relevant filings, which can be found on CDAR and on our website. Also, during the call, we may refer to certain supplementary financial measures as key performance indicators. Management uses both IFRS measures and supplementary financial measures as key performance indicators in planning, monitoring, and evaluating our performance. Management believes that these non-IFRS measures provide additional insight into our financial results, and certain investors may use this information to evaluate our performance from period to period. I will now pass the call to Eddie Ryan, CEO of NEET.

Good morning, everyone, and thank you for joining the call today. Over the next 10 minutes or so, I'll share my thoughts on our progress. Then our new CFO, Dave O'Reilly, will guide you through the financials. Hugh Kavanagh, who is retiring from NEET at the end of this week, is also here with us this morning. After our comments, we'll open up for your questions. We continued our solid growth in the second quarter of this year, where our team continued to set the pace for digital validation for life sciences. Our solid growth and path to profitability continues as year over year, annual recurring revenue is up 43%, total revenue for the quarter is up 32%, and gross profit is up 34%. New customer wins this quarter reached new highs, putting us on track to exceed last year's total as more and more companies are starting their digital validation journeys. Expansions from existing customers continue at a steady pace, and our pipeline remains robust. Our winning record included several strategic accounts, where we expect to see significant expansion for our software licenses in the years ahead. This includes three manufacturers, one of generic pharmaceuticals, one of clinical diagnostics, and one of medical devices. That none of these is a brand name pharmaceutical company illustrates how need is being leveraged broadly throughout the life sciences space. During the quarter, we also added strategic hires throughout the company, including new leadership in product and engineering. We earned our leadership position in the shift to digitization by providing a flexible, easy to use platform and first class service teams to support our customers. We will continue this trajectory through continuous value innovation. Last month, we released Neat GX version 9.5, opening up new pathways to enhance needs value for its customers. Here we have further advanced the data management capabilities of our platform. New features include greater management and control over discrete data sets, deeper functionality for defining, regulating, and tracing data sets to align with risk-based validation, and more advanced filtering and visibility for requirements, risks, and test evidence, critical pillars of effective and efficient validation. These features enable users to save time by leveraging data across more projects than ever before, empowering risk-based validation processes, such as computer software assurance, and exerting greater control over traceability that adapts to any workflow. 2025 has brought some uncertainty surrounding trade and future investment decisions by life sciences manufacturers. While it's hard to say to what degree this dynamic environment is impacting decision-making, what we believe is that the industry's shift to digital is an imperative, not just for efficiency and data integrity, but because it is the foundation for future innovation, including automation and AI. Generally, our customers are global, and we are global with them. We will be there to support them wherever they choose to do their manufacturing. As the leader in the digitalization of validation processes, we are well-equipped to guide and support the industry on this journey. Before I hand you over to Dave, I want to thank Hugh for his stewardship over our finances for the past six years. Hugh is retiring from needs to pursue other interests, and we wish him the very best. During his time at need, Hugh contributed significantly to our success, helping the company to grow to its current level and building a strong finance team. We've all very much enjoyed working with him. Thank you, Hugh. Now let me welcome Dave, our new CFO. Dave served most recently as CFO of ECHO, a leading managed security service provider, which he helped scale to 200 million in annual revenue. Before this, he led the international finance function for J2 Global, a $4 billion business. I look forward to working with him. Welcome, Dave.