Kinaxis Inc.

as well as in our CDAR Plus 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 MD&A, both of which can be found on the investor relations section of our website, canaxis.com, and on CDAR Plus. The webcast is live and 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 may be re-recorded or otherwise reproduced or distributed without prior written permission from Kinaxis. To begin our call, Bob will discuss the highlights of our quarter and recent business developments, followed by Blaine, who will review our financial results and outlook and open the line We have a presentation to accompany today's call, which can be downloaded from the Investor Relations homepage of our website. We will let you know when to change slides. Over to you, Bob.

Thanks, Rick. Good morning, and thanks for joining us today. I'm pleased with the first quarter results, and I wanted to highlight three key items. First, it was a solid quarter for new business, including record expansion business volume for a first quarter. Our ARR grew 14% as reported and in constant currency. SAS growth was 16% or 17% in constant currency. Second, we continue to make progress with profitability as adjusted EBITDA was up 46% and the margin hit 25%. Lastly, it was our third consecutive quarter delivering rule of 40 plus performance. We view this consistency as key to evaluation that better reflects our elite positioning in the vertical software universe. This performance allowed us to maintain all guidance elements for the year, including SAS revenue growth, total revenue, and adjusted EBITDA margin. And we are also on track towards our midterm goals. As always, we added important new customers in the quarter, and enterprise class companies continue to be the biggest cohort. We're so fortunate to be able to name a sample of our new customers today. For example, we've helped orchestrate the supply chains for global leaders like Sun Pharma, which extends our success in Asia. Based in India, Sun Pharma is the world's leading specialty generics company with $5.8 billion in revenues and more than 40 manufacturing facilities. Sun Pharma provides high-quality, affordable medicines to more than 100 companies around the globe. Workwear Outfitters, based in the U.S., is a leading manufacturer of innovative work apparel and footwear for workers, with brands like Kodiak, and is the exclusive licensee for Dickie's Apparel in the B2B channel. Delta Faucet Company, also headquartered in the U.S., and who we know through Delta and Peerless Brands, among others, offer purposeful, practical plumbing fixtures that solve our everyday needs. Demand AS, headquartered in Denmark, with over 22,000 employees, is a global leader in hearing healthcare and manufacturing of hearing aids dedicated to improve the lives of people with hearing loss. Feolia, a U.S. subsidiary of a French-based company which provides water treatment and sustainable solutions for industrial and municipal clients. Finally, we've signed with one of the world's largest companies in the semiconductor ecosystem by both revenue and market cap. Our market share keeps growing from successes like this as we continue to win the most important and competitive opportunities across all markets and geographies. Ongoing growth of the customer base Balance across geographic and vertical markets and revenue tiers remains a significant opportunity for Kinaxis. As we briefly mentioned on our last call, we struck a new partnership with Infor to help accelerate that growth, and I'm so pleased to be able to share more details today. The new relationship with Infor is focused on mid-market to street manufacturing companies, in the high-tech, industrial, consumer, durables, automotive, and aerospace and defense verticals. Together, we are integrating Infor Cloud Suite for discrete manufacturing with Kinaxis Planning 1, the maestro solution package that offers core fundamentals like supply and demand planning and inventory management. This partnership will create an entirely new channel by activating a mid-market team of sellers in North America and Europe within Infor. We're excited to see this initiative moving forward. While winning new customers will be a major part of the KineXus story for many years, I'm very pleased that in Q1 and for the second consecutive quarter, over half of gross additions to ARR came from existing customers. Thanks to rapid expansion of the customer base in recent years, exciting new product launches, and an increased focus under Mark Morgan, we continue to see more expansion business than ever in our pipeline. I'm also very pleased with the meaningful improvements we've made to our go-to-market team and approach. While started several years ago through a geographic expansion, adding VARs and solution extension partners, and moving the public cloud among other initiatives, we took another major step last year by adding Mark and key regional leaders who know how to operate at scale and who are sharply focused on progressing our best opportunities. We're winning the market and together with the most referenceable customer base, in the supply chain software industry, these improvements have seen us become best in class in how we approach the market and service our customers. As always, one critical reason we win remains our product leadership. We are thrilled that Kinaxis was recognized as a leader in the 2025 Gartner Magic Quadrant for Supply Chain Planning Solutions. for the 11th consecutive time. Based on analysis of both our completeness of vision and our ability to execute, we take pride in consistently strong position in this important report. But there is no time or place where our product and go-to-market leadership shines more than at Connections, our flagship industry conference. This year, a record 1,000 attendees, or almost 30% more than 2024, came to Austin to hear, see, and interact with the latest in our market-leading innovations. At Connections, we announced an important partnership with Databricks. Together, we will strengthen Maestro's data fabric to help customers quickly and easily unify their data, accelerate AI adoption, and bring together information from core systems like inventory and procurement, alongside external inputs such as weather patterns, market signals, all within one governed environment. The result will be faster insights, greater execution agility, and a more resilient, innovation-ready supply chain. In Austin, customers and prospects were hands-on with their next phase of AI innovation, including out-of-the-box AI agents to monitor, predict, and take action in real time for automation of key tasks like inventory management and disruption mitigation. Attendees were even creating their own AI agents on Maestro, showing how AI-driven supply chain orchestration can be accessible to businesses at any stage of their AI maturity. Conference goers also saw firsthand how new generative AI functionality will make interacting with supply chain data even more intuitive. In addition to creating customizable dashboards, C-suite users to technical experts will be able to query digital twins by asking questions in dozens of natural languages and receive instant, insightful answers to complex questions. This allows interdisciplinary teams to analyze scenarios, assess risk, and make informed decisions without requiring AI expertise. But naturally at Connections, it was impossible to have conversations with supply chain leaders without discussing the global tariff issue. As longtime followers of the company, you understand that Maestro has been specifically built to handle disruptions of any kind and few have been more significant for our customers than the current tariff crisis. Consequently, we recently launched CanAccess Tariff Response, a professional services offering for prospects that allows them, under a limited time engagement, to provide CanAccess experts with key supply chain data So we can show how Maestro can simulate tariff exposure, run strategic scenarios, and make data-informed decisions quickly. The service can be live in as few as 21 days, giving planners access to tariff modeling without the cost or complexity of building it internally. Interest in this campaign from prospective customers has been encouraging. Tariff response provides a meaningful preview into the power of MISRO, so we expect some engagements from this program to convert to new subscription business in the coming months. Overall, I'm very pleased with the progress in the first quarter and for the remainder of the year. We aim to deliver on a few key items. Ongoing deliver of quarters that support our full year 2025 outlook and midterm ambitions. More new market leading customers coupled with a more balanced contribution to quarterly ARR growth from expansion business and many new name accounts. We are setting up initial customers for our exciting new generative AI and agentic AI products and initiating a new pricing framework to better reflect and take advantage of the more universal integration of AI through Maestro and the higher value it brings. And lastly, a new full-time CEO We're adding exceptional talent to our company now. We're working well as an experienced collaborative senior team and delivering rule of 40 quarters, all of which gives us the privilege of being patient and finding the absolute best person for the role. As with any global software company, we do remain mindful of the significant challenges our customers face in the new era of global trade. But we are confident in our elevated go-to-market team and approach, our product leadership, and the breadth of growth opportunities in front of us. CanAccess today is better organized than ever to take full advantage of the incredibly dynamic supply chain orchestration

opportunity that lies ahead and with that said i'm going to turn over the call to blame thank you bob and good morning as a reminder unless noted otherwise all figures reported on today's call are in us dollars under ifrs if you move to slide nine in your investor presentation for q1 I'm very pleased to report solid Q1 results that set us on a good path to achieve our fiscal 2025 goals, both on an as-reported and constant currency basis. New business remains strong, sustaining the upward trend in our ARR growth. Our profitability in Q1 was strong again, as was our trailing 12-month free cash flow margin, particularly if you adjust for the impact of one-time outlays related to our tax restructuring and litigation settlements. both of which we discussed in our last call. Our mid-term profitability goal of consistent full-year normalized 25% adjusted EBITDA margin and consistent annual rule of 40 performance aspirations are both clearly in view. Now let me walk you through our Q1 2025 results compared to the same period last year. Total revenue was $132.8 million, up 11%. SAS revenue was $84.9 million, up 16%. Our subscription term license revenue was $9 million, in line with our expectations given renewal cycles, and up 34%. Professional services revenue was $33.3 million, down 3%. We see this largely as a reflection of ongoing success in our long-term strategy to move an increased share of professional services work to our partner network. Maintenance and support revenue was $5.5 million, up 15%. Our gross profit was strong, up 19% to $86.5 million, or a 65% gross margin, compared to 61% in the same quarter last year. The software margin was 80%, up from 76% due in part to higher subscription term license revenue and lower amortization thanks to an intangible asset we retired last quarter. Professional services gross margin was down to 21% from 24%, consistent with partners taking on more of the services work. Adjusted EBITDA was extremely strong, up 46% to $33.1 million, or a 25% margin versus 19% in the comparable quarter. This reflects numerous factors, including our revenue growth. higher gross margin, and lower operating expenses as a percentage of revenue, as we continue to focus on profitability and gain further operating leverage as we scale. Our growth and profitability performance resulted in a rule of 40 performance for the third consecutive quarter, calculated by adding SAS revenue growth and adjusted EBITDA margin, our usual approach. Our profit in the quarter was up 157%, to $15.9 million or $0.55 per diluted share versus a profit of $6.2 million or $0.21 per diluted share a year ago. We are proud of this significant improvement. Profit benefited largely from the same factors that supported our strong adjusted EBITDA performance. Cash flow from operating activities, $31.6 million. That compares to $32 million in Q1 2024. Cash equivalents and short-term investments were $314.6 million, up from $298.5 million at the end of 2024, despite the one-time payment made in Q1 relating to tax planning and litigation settlement. If you move to slide 10, our trailing 12-month free cash flow margin remains strong at 18.7%, absent the tax planning and settlement amounts, trailing 12-month cash flow margin would have been 24.4%, a great reflection of our increased focus on profitability. On to slide 11. Our ARR, or annual recurring revenue, grew to $372 million, representing 14% growth both as reported and in constant currency. The split of gross additions to ARR between new name accounts and expansion business was 47%, to 53% in Q1. This is the second consecutive quarter where expansion business was the bigger contributor. Our pipeline for 2025 remains more tilted toward expansion opportunities than in prior years, which we believe is a reflection of recent growth in our customer base, more product to sell, and our heightened focus on this important sales motion. Moving to slide 12, our SAS and total RPO balances remain very strong, growing to $767 million and $812 million, respectively, with three-year CAGRs of 20% and 19%. This metric continues to highlight growth in our subscription business and our elite gross customer retention. More details on our RPO can be found in the revenue note for our financials. Looking at slide 13, while mindful of the impacts to our markets of the volatile macro environment, I'm pleased to reiterate our 2025 guidance. Total revenue of $535 to $550 million, or $545 to $560 million in constant currency. SaaS growth of 11 to 13%, or 12 to 14% in constant currency. We continue to anticipate seasonal trends to apply, with Q4 historically being our strongest bookings quarter. Subscription term license revenue of $16 to $18 million. Approximately one quarter of the total amount will be recognized in the second quarter and the remainder split over the back half of the year, with Q3 being somewhat higher than Q4. We continue to expect adjusted EBITDA margin to be between 23 to 25%. Finally, on slide 14, we've continued to be active on our normal course issuer bid. For the quarter, we purchased 157,428 shares and had an average of US dollar price of 110.49, or an investment of roughly $17.4 million. Our NCIB goes through November 5th, 2025. Overall, I'm pleased with how the business is executing. This is our third consecutive rule of 40 quarter. Despite the challenges to customers of a constantly changing tariff environment, new business in the quarter was solid and kept our AR growth rate on a good trajectory. Adjusted EBITDA margin and free cash flow continue to move in the right direction, reflecting dramatically improved profitability and our midterm financial aspirations are all intact. I'm excited for the coming AI transition and what it will mean for our differentiation and growth ahead. As always, Thank you for your ongoing interest in Conexus and support to date. I will now turn the line over to the operator to start the Q&A session.