Kinaxis Inc.

Good morning, ladies and gentlemen, and welcome to the Conexus Incorporated Fiscal 2022 Third 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 a question. I'd like to remind everyone that this call is being recorded today, Friday, November 4th, 2022. I will now turn the call over to Rick Wadsworth, Vice President of Investor Relations at Connexus Incorporated. Please go ahead, Mr. Wadsworth.

Thanks, Operator. Good morning and welcome to the Connexus Earnings Call. Today we will be discussing our third quarter results, which we issued after close of 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 on this call is based on information as of today, November 4, 2022, and contains forward-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 certain constant currency results and metrics. A reconciliation between adjusted EBITDA and the corresponding IFRS result is available in our earnings press release and our MD&A, both of which can be found on the investor relations section of our website, connexus.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 webcast 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 Blaine, who will 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. 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 on this call today. I'll be starting on slide four. I'm pleased to report that the momentum in our business has continued as reflected in our exceptional third quarter performance, which included SAS revenue growth of 21%, or 28% in constant currency, total revenue growth of 39% or 49% in constant currency, and adjusted EBITDA margin of 17% or 19% in constant currency. Once again, our accelerating performance allows us to increase aspects of our guidance for the year, as Blaine will soon share with everyone. Turning to slide five, as I mentioned, our momentum in the business has remained consistent. Nowhere is that more evident than our new customer wins. Despite the summer months being historically slower for sales, we closed an all-time record number of customers for a third quarter and very nearly beat our all-time quarterly record for bookings in history. Year-to-date, We have over 40% more new customers than the same period last year. And I'll remind you that the comparative period in 2021 showed exceptionally strong growth over 2020. Quite simply, since the fourth quarter of 2020, and in each quarter since, we have been experiencing a continuous and accelerating momentum in demand for our unique concurrent supply chain planning technique. we are experiencing a significant inflection in the business. As always, we're humbled by the new global brands that put their trust and confidence in Kinaxis. A small sample of the customers we won in the quarter includes Confluent Medical Technologies, a global leader and contract manufacturer supporting the design and development and manufacturing of life-saving implants, delivery systems, and medical devices. Karcher, the world's leading supplier of cleaning equipment and services for transportation and buildings. The company employs 14,400 people, located in 78 countries, with over 50,000 service centers worldwide. Griffles, a leading global healthcare company that develops plasma-derived medicines and other innovative biopharmaceutical solutions. and JSR Micro, an innovator in semiconductor material solutions. There are so many other global and iconic brands we can't name today, but expect to be in a position to share them with you as we proceed through their deployments. Year-to-date, the split of new customers continues to be roughly 60-40 between enterprise accounts, and those from mid-market are smaller. We're thrilled with our ability to serve such a broad universe of companies and verticals with a single SaaS offering. I'm also pleased to report that we continue to accelerate growth in our annual recurring revenue. In the third quarter, ARR grew a record-breaking 25%, or just over 30% in constant currency terms. Reflecting this acceleration, our total backlog crossed a half billion dollars for the first time, growing to just under 550 million, another record level. All leading indicators of demand, including pipeline and unsolicited inbound leads, remain very robust. We are confident that momentum in the business and the accelerated growth that comes with it is set to continue ahead. We are very optimistic about our recent acquisition of MPO, which offers exciting cross-selling and greenfield opportunities. Adding supply chain execution capabilities to our traditional supply chain planning solution makes us the market's only true end-to-end concurrent supply chain management solution, a major differentiator in our market. Both MPO and Kinaxis were separately recognized in the leaders quadrant of the 2022 control tower value matrix by Nucleus Research. Rapid response was ranked highest of any vendor in the greater usability axis. As you would have also seen during Q3, Kinaxis was further named a leader in three IDC MarketScape supply chain planning reports. We're thrilled to be able to offer our solutions in more ways than ever, through our private data centers, as always, and via public cloud with Microsoft Azure, and now with Google Cloud Platform. Finally, I encourage you all to read our latest Global Impact Report, which we released in September. The success of our ESG initiatives is increasingly being recognized by all the related rating agencies. If you manage ESG-focused funds, please reach out to Rick to discuss our meaningful progress here. I'll now ask Blaine to discuss results for the third quarter and share more details about our updated outlook. Blaine?