Kinaxis Inc.

Good morning and welcome to the Conexus Inc fiscal 2025 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 and instructions will be provided at that time for you to queue up to questions I'd like to remind everyone that this call is being recorded today Thursday August 7th 2025. And I will now turn the call over to Rick Wadsworth, Vice President of Investor Relations at Canaxis. Please go ahead, Mr. Wadsworth.

Thanks, operator. Good morning and welcome to the Canaxis Earnings Call. Today, we will be discussing our second quarter results, which we issued after closing markets yesterday. With me on the call are Bob Courteaux, Interim CEO and Chair, and Blaine Fitzgerald, our Chief Financial Officer. Some of the information discussed in this call is based on information as of today, August 7, 2025. 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 Canaxis CDART plus violence, excuse me. 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+. 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 Kinexis. To begin our call, Bob will discuss the highlights of our quarter and recent business developments, followed by Blaine to review our financial results outlook and open 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. Over to you, Bob.

Thanks, Rick. Good morning and thank you for joining us today. I'm so pleased with second quarter results and would like to highlight a few items. First, very encouraged by how much new business we want. It was the highest amount ever for a Q2 and the second highest ever outside of a fourth quarter. Our ARR grew 15% as reported and 13% in constant currency. Second, We grew SaaS revenue 17%, a strong result, or 14% in constant currency. Third, thanks to strong growth and thoughtful management of the business, profit hit record levels, as Blayne will explain. Our adjusted EBITDA margin was 25%, which helped us achieve our fourth consecutive quarter of Rule of 40 performance. We highly value consistency around this metric, So we're very happy with the result. Look, I'm thrilled with our performance in the second quarter. It's allowed us to increase our fiscal 2025 guidance for SAS revenue growth, which is the engine that drives our business. Blaine is going to speak about all the elements of guidance shortly. As always, we added several new customers in the quarter. Enterprise class companies continue to be the highest cohort. and we're pleased to have won a couple of large enterprise accounts. Consumer products represented the biggest vertical market, and overall, we continue to be encouraged by our strong win rate. We're fortunate to be able to name just a sample of our new customers today, representing multiple vertical markets and our widening geographic coverage in consumer products. First, Lactalis, based in France, with 2024 revenue over 30 billion euros, is the world's leading dairy group producing cheese, milk, yogurt, butter, cream, and much more. Lactalis is in 50 countries, has nearly 270 dairies, and employs over 85,000 people. McKee Foods, America's largest family bakery and in its fourth generation of family ownership, offers brands like the famous Little Debbie, Drake's Cakes, and Sunbelt Bakery. P&L Development is a premier manufacturer, packager, and distributor of over-the-counter pharmaceutical products and consumer health goods. In life science, we won Swedish, Orphan, Biovitram, or Sobe. a global biopharma company unlocking the potential of breakthrough innovations to transform the lives of people living with rare diseases. Sobe has approximately 1,900 employees around the world. Shimatsu, founded in Japan almost 150 years ago, is a global leader in developing and manufacturing precision instruments and equipment. The products include analytical and measuring instruments, industrial machinery, aircraft equipment, and products and equipment used in healthcare for diagnosis, treatment, or measuring health, and to support the development of new drugs. In industrial manufacturing, we want Gabara and Griller Kabelwerke, or GG Group, an Austria-based global family-owned business that produces technically advanced high-quality wires and harnesses for automotive and industrial application. And a nice one in logistics, we want Seiko Logistics based in the US with over 150 offices in more than 60 countries. Seiko is an end-to-end partner from shipper to consumer. They deliver tech-driven shipping solutions that turn supply chains into a competitive differentiator. Obviously, we're pleased to win leading innovative companies like these. In fact, three of Gartner's four masters of supply chain for 2025, their highest ranking are Canaxis customers. So overall, there's still 14,000 prospects remaining in the vertical and geographic markets we target, and we have never been in a better position to win them. While adding new customers will be a major part of the Connexus story for many years to come, I'm also very pleased with our ongoing momentum and expansion business. Half of gross additions to ARR came from expansions. In particular, it's encouraging to see for the fifth quarter in a row, applications and scenarios comprised together over half of the expansion amount, a very rare achievement previously. This reflects both the value of recent investments in new product R&D and the incredible edge that our longstanding proprietary scenario analysis capabilities delivered to our customers. There is strong demand for Kinexis products because increasingly the best companies recognize that supply chains are a key differentiator to their success. old siloed methods are collapsing, and so they turn to Kinexis for the market's leading AI-first, real-time, scalable, agile supply chain orchestration platform. From a product perspective, we're excited to see ongoing demand for some of our newer planning solutions like enterprise scheduling and supply.ai. which we now call supply optimization. The richness and breadth of our core planning algorithms developed through decades of industry experience and the unique proprietary data they generate will remain a massive differentiator for Kinexis, even as AI becomes more ubiquitous amongst existing players and even new entrants. This is especially relevant in supply chain where complex logic modeled via tools such as heuristics, optimization, and predictive AI is critical for optimizing the design and execution of the supply chain to meet business objectives. We'll continue to use our unmatched domain expertise to widen that moat with new planning solutions and enhancements we create or acquire. On top of that, Maestro's new generative and agentic AI capabilities supercharge our existing product differentiation and represent a major step towards more autonomous supply chains that boost productivity, democratize access to data, and generate better customer outcomes. While automation has played a key role across the supply chain for a long time, AI agents will dramatically expand its scope and intelligence. And our AI agents will be able to monitor, predict, and take action in real time to handle use cases across the supply chain, like supply and demand disruptions, inventory management, and so many others. To extend our value even further and to more users, we will also build connectors from Rice Road to work in real-time with agents from other supply chain management applications and with a growing ecosystem of third-party agentic systems, such as Google AgentSpace and others. As you know, real-time concurrent orchestration with a much broader range of planning and execution partners and capabilities with data is fundamental to our growth strategy. To make our ambitious orchestration vision real and seamless, we are actively augmenting our industry-leading platform by building an agentic AI framework enabling multi-agent communication. and developing our new supply chain data fabric in partnership with Databricks who have been terrific. We now have major early innovator customers working with our initial commercial generative and agentic AI capabilities and we will be adding more very soon. We'll continue launching these new capabilities into the market through the rest of 2025 and into 2026, along with a new maestro pricing model that we'll be discussing over time. We couldn't be more excited about how AI will transfer the amount of value we offer customers and the opportunities it represents to Kinaxis. So overall, we're very pleased with our momentum in the final half of 2025. and very excited about the future. The talent that we've added is helping to deliver quarters consistently and we're in full scale mode at Kinexus. Our product is a leader in the market and our AI enhancements will only add and build on top of that. The board and I remain focused and patient on finding a new proven CEO with the experience and credentials to be accretive in our exciting direction and momentum. And with that, I'll turn it over to you, Blaine.