Kinaxis Inc.

Good morning, ladies and gentlemen. Welcome to the Canaxis Incorporated Fiscal 2023 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, Thursday, August 10th, 2023. I will now turn the call over to Rick Wadsworth, Vice President of Investor Relations at Kinaxis Inc. Please go ahead, Mr. Wadsworth.

Thanks, operator. Good morning and welcome to the Kinaxis 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 on this call is based on information as of today, August 10, 2023, and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially 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 our CDAR filings. During this call, we will 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 IR 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 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 IR 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 all for joining us today. I'm excited to share our Q2 results and developments with you today. I'll begin with slide four. In the second quarter, we achieved SAS revenue growth of 25%, total revenue growth of 31%, and our adjusted EBITDA margin was 14%. These results keep us on track towards our targets for the year. Moving to slide five, we won a record number of new customers in Q2, surpassing the benchmark from last year, which demonstrates our ongoing momentum in the market. Our win rate against the competition continues to increase and it was our best Q2 ever in terms of incremental subscription business won. In June, we had a record turnout at Connections, our annual customer conference, where in-person attendance grew by over 50%. We also held more initial meetings with our prospective accounts in Q2 than any in any quarter of our history, further suggesting that the market is heating up. While we need to remain appropriately cautious about the global economy, we continue to see a persistent urgency around the need to transform supply chain governance, and the demand environment for supply chain management solutions remains very strong. Moving to slide six. Thanks in part to the record number of wins in the second quarter, Canaxis now has over 300 customers. We are leading with leaders, and as always, These companies represent some of the largest and most exciting brands in their sectors. In our industrial segment, we're thrilled to add ExxonMobil, one of the largest publicly traded energy and petrochemical companies, as well as oil and gas giant Shell International. In the same segment, we welcomed Westlake, a New York Stock Exchange listed company with roughly $16 billion in revenues last year. In consumer goods, we added major fitness lifestyle company Peloton, as well as Brown Forman, distillers and marketers of premium spirits like Jack Daniels, Finlandia Vodka, and Woodford Reserve. We also won water filtration leader Brita, as well as Premier Foods, one of UK's largest food manufacturers, with brands like Oxo and Bird's Custards. Unsurprisingly, given this success, consumer goods remains one of our fastest growing segments. In high tech, we welcomed Kyocera Communication Systems, a Japanese information systems company that is pioneering the communications of the future. This is just a small sample of our wins in Q2. names that clearly demonstrate how global innovation leaders are starting to embrace meaningful supply chain transformation. In total, roughly half of the companies we won in Q2 are enterprise class, and there are many more prospects of similar quality and size in our pipeline today. To me, there is no greater evidence that our opportunity remains in its early stages. Now moving to slide seven, Siloed approaches to supply chain management are giving way to fully concurrent supply chain orchestration from planning through execution. Canaxis remains alone in its ability to deliver on that vision, and we recently announced several major innovations that set us apart in this space. First, enterprise scheduling. Enterprise scheduling is the first and only scheduling tool that allows companies to orchestrate production across sites, and creates a comprehensive, feasible, and efficient manufacturing schedule regardless of plant layout. Our new supply chain execution application, a result of our MPO acquisition, includes transportation management, order management, and returns management. It empowers businesses to drive supply chain orchestration from plan through delivery across all time horizons. Our sustainable supply chain offering allows companies to ensure environmental factors are a key part of supply chain decisions by embedding carbon emission factors, including Scope 3 emissions, into rapid response scenarios. If you read our ESG report, you'll know that commitment to a sustainable, socially responsible future is one of our core strategic pillars. And finally, demand.ai. will allow companies to better understand how both internal and external factors are influencing demand for their products and to take advantage of these changes quickly. Javi, a giant in the strategic outsourcing for quick service restaurants and other industries, took the stage at Connections to highlight its early adoption of this new capability. On slide eight, Not only are our customers recognizing these innovations, but in May, for the ninth consecutive time, Kinexus was placed in the leaders category of Gartner's magic quadrant for supply chain planning solutions and became the first company ever to be simultaneously positioned furthest on both completeness of vision and ability to execute. Hopefully, you've seen this report by now. But the amount of white space between Kinaxis and the next competitor in that quadrant speaks for itself and is a great testament to what our customers see in us. Simply stated, we are the innovative and trusted leader that delivers on our promises. With that, I'll turn the call over to Blaine to review results of the quarter.