Kinaxis Inc.

Good morning, ladies and gentlemen. Welcome to the Canaxis Inc. Fiscal 2022 Second Quarter Results Conference Call. Currently, all participants are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. Instructions will be provided at that time for you to queue up for questions. I'd like to remind everyone that this call is being recorded today, Wednesday, August 10, 2022. I'll now turn the call over to Rick Wadsworth, Vice President of Investor Relations at Canaxis Inc. Please go ahead, Mr. Wadsworth.

Thanks, operator. Good morning and welcome to the ConAXIS earnings call. Today, we will be discussing our second quarter results, which we issued after closing markets yesterday. With me on the call are John Sicard, our President and Chief Executive Officer, and Blaine Fitzgerald, our Chief Financial Officer. Before we get started, I want to emphasize that some of the information discussed in this call is based on information as of today, August 10, 2022, and contains four looking statements that involve risks and uncertainties. Actual results may differ materially from those set forth in such statements. For discussion of these risks and uncertainties, you should review the forward-looking statements disclosure in the earnings press release as well as in our CDAR filings. During this call, we will discuss IFRS results and non-IFRS financial measures, including adjusted EBITDA and constant currency results and metrics. A reconciliation between adjusted EBITDA and the corresponding IFRS result is available in our earnings press release and in our MDMA, both of which can be found on the investor relations section of our website, canaxis.com, and on CDAR. Participants are advised that the webcast is live and is also being recorded for playback purposes. An archive of the webcast will be made available on the investor relations section of our website. Neither this call nor the website archive may be re-recorded or otherwise reproduced or distributed without prior written permission from Canaxis. To begin our call, John will discuss the highlights of our quarter, as well as recent business developments, followed by blame. We'll review our financial results and outlook. Finally, John will make some closing statements before opening the line for questions. We have a presentation to accompany today's call, which can be downloaded from the investor relations homepage of our website, tenaxis.com. We'll let you know when to change slides. I'll now turn the call over to John.

Thank you, Rick. Good morning, and thank you for joining us today. I'll be starting slide four. Our second quarter results demonstrate the momentum we continue to experience in our business. While foreign exchange fluctuations are a headwind to reported results for global SaaS companies right now, our constant currency results pierce through that to reflect the very strong underlying fundamentals in our market. For the second quarter, in constant currency, we saw SaaS revenue growth of 27%. total revenue growth of 42% and adjusted EBITDA margin of 15%. Our constant currency ARR grew by 25% in the quarter, a record level for this important indicator of growth in our subscription business. Blaine will provide all the specific details on reported and constant currency results momentarily. Turning to slide five. Our momentum winning new customers continued in the second quarter. We've seen well over 50% growth in new customer wins so far this year compared to the first half of 2021, which itself was a period that saw strong growth over 2020. Simply put, more companies than ever are replacing inflexible, legacy, cascaded planning techniques in favor of a more agile concurrent planning approach. As always, we're honored to be selected by a growing number of global companies that put their trust and confidence in Kinaxis and Rapid Response to bring about transformative improvement in supply chain planning performance. For example, in Q2, we won innovative pharmaceutical companies like EQRX International and Pharmathon, high-tech companies like test and measurement leader NI, formerly National Instruments, and control equipment manufacturer IDEC. Consumer products companies like Ectera, which makes many of the tea brands we drink every day, and Aura Farm Supply, who provide many over-the-counter health products. And in our industrial vertical, a specialty chemicals company, Infinium USA, who focuses on sustainability in their engine fuels and oil products. You'd have also seen our news release in the second quarter announcing that Castelline Eutectic, a welding, brazing, and coating leader, is also now a Connexus customer. For the first half of 2022, amongst our new customers, roughly 60% have been enterprise class and 40% from the mid-market or smaller. We're thrilled with our ability to serve such a broad universe of companies and verticals with a single SaaS offering and continue to appreciate the support and influence our partners have on the vast majority of our wins. I am happy to report that momentum in the business has not let up. Leading indicators of demand remained robust. Our June 30th fourth quarter rolling pipeline continued to grow nicely over the comparable period of 2021. And we saw another sharp increase in the number of unsolicited inbound leads after experiencing the same dynamic last quarter. Both these indicators are at an all-time high level. We view these trends as distinct signs of ongoing momentum in the business. Moving to slide six, Certainly part of the reason we generated a lot of interest in Q2 was the May release of the latest Gartner Magic Quadrant for supply chain planning solutions. For the eighth consecutive time, we were named a leader. Of the 22 vendors evaluated, Gartner position can access furthest on the completeness of vision access. In all, our financial results and the other metrics from the second quarter provided provide us with the confidence to increase our annual total revenue guidance, subscription term license revenue guidance, and introduce a 2022 SAS revenue growth outlook of 25 to 27% in constant currency. I'll now ask Blaine to discuss results for the second quarter and share more details about our guidance for 2022. Blaine.