Kinaxis Inc.

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Kinaxis Inc. Fiscal 2023 First Quarter Results Conference Call. Currently, all participants are in a listen-only mode. Following the presentation, we will conduct a question and answer session, and instructions will be provided at that time for you to queue up. I'd like to remind everyone that this call is being recorded today, Thursday, May 4, 2023. I will 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 Canaxis Earnings Call. Today, we will be discussing our first quarter results, which we issued after closing markets yesterday. With me on the call are John Scard, our President and CEO, and Blaine Fitzgerald, our CFO. Before we get started, I want to emphasize that some of the information discussed on this call is based on information as of today, May 4, 2023, and contains forward-looking statements that involve risks and uncertainties. Actual results may differ from those set forth in such statements. For a discussion of these risks and uncertainties, you should review the forward-looking statements disclosure in the earnings press release, as well as in Cadaxis's CDAR filings. During this call, we'll discuss IFRS results and non-IFRS financial measures, including adjusted EBITDA. A reconciliation between adjusted EBITDA and the corresponding IFRS result is available in our earnings press release and in our MD&A, 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 PlayDoc 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 Kinaxis. 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 you can download 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, everyone, and thank you for joining us today. I'll be starting with slide four. We're pleased to report first quarter results supporting our strong and improving outlook for the year. We achieved SAS revenue growth of 28% in the first quarter. a solid start towards our overall goal of 25 to 27% growth for the year. Similarly, we posted an adjusted EBITDA margin of 17%, which puts us on track towards our new and higher target of 14 to 16% for the year. As strong as these numbers are, the most significant aspect of the quarter was the quality and type of new name accounts we continue to win, We have spoken about our focused entry into the retail market for some time now, and today I'm pleased to share that we now have made significant progress in this regard. You would have seen our recent announcement of our recent win with Javi, a leading global supply chain company serving the unique needs of the very largest quick service restaurants or QSRs in the industry. For those of you unfamiliar with HAVI, I would encourage you to do a little research. HAVI will be using rapid response, including our new demand.ai module, to help their customers enable advanced predictive and prescriptive analytics using machine learning and artificial intelligence. Provide end-to-end supply chain visibility and powerful what-if scenario planning. I can't overstate how excited I am to have Javi as a customer and to help improve the supply chains of the world-class QSR brands they work with every single day. During Q1, we also won another iconic QSR brand, which unfortunately we can't name at this time, but a true leader in their category. Together with Javi, this win gives us important cornerstones in the massive QSR segment of the retail market. We will continue our focused approach to retail and work to leverage these successes in similar opportunities. We also welcomed one of the oldest, best-loved snacking powerhouses in the world, a true household name. As always, I'm humbled when such globally recognized brands place their trust in Kinaxis. I'm particularly encouraged by our progress during these uncertain economic times. Our win rates remain very robust, even as prospects continue to exercise extra care and rigor in their purchasing processes, which has temporarily extended some sales cycles. As our recent customer additions demonstrate, however, market leaders continue to prioritize supply chain management transformations in their budgets And our sales activity continues to operate at all-time highs. Today, Kinaxis has seven of the top 25 companies in the Fortune 500 and 11 companies named by Gartner, either in their top 25 supply chains or master's category, Gartner's highest classification. These figures represent both amazing accomplishments to date and huge opportunities ahead. Also noteworthy in Q1, our annual recurring revenue grew by 23%. We continue to see good mix of new business between enterprise class and mid-market accounts. Our value-added resellers, or VARs, also contributed some wins with smaller companies in the first quarter. We are in the very early stages of this strategy, but we are pleased to see initial proof points of its effectiveness. Looking further out, growth in our 12-month rolling pipeline continues to indicate that the positive demand trend for concurrent planning capabilities will continue for some time. And as you know, Kinaxis is investing appropriately to fully capitalize on this very constructive environment. As part of that investment, I'm pleased to announce that we have live customers in both Microsoft Azure and Google Cloud Platform, or GCP. As we've mentioned previously, the focus is initially on hosting new customers in these public cloud environments rather than migrating existing customers. We're extremely pleased with both the performance and economics of these arrangements. Rapid Response is also now available in the Microsoft Azure marketplace, which raises our profile in this community. Now more companies will be able to take advantage of the supply chain agility Kinexus delivers by accelerating buying cycles and using rapid response to help contribute towards their Microsoft Azure consumption commitments. As one final note, I'm absolutely thrilled to inform you that the latest Gardner Magic Quadrant for supply chain management was published by Gardner yesterday. With their tremendously deep and objective inspection of our space, this important publication may just be the definitive guide for practitioners looking for a path towards digitizing and driving breakthrough in supply chain management performance. If you're a practitioner of supply chain or you care about those companies like Kinaxis, those of us supporting the craft, I would encourage you to seek it out through the Gartner subscription. In keeping with and respecting Gartner's communications policies, we will be releasing a complimentary copy of this report in the coming days. Watch our news, our social channels, and the website for more details. This one is not to be missed. With that, I'll turn the call over to Blaine to review results for the quarter and our improved outlook for the year.