Kinaxis Inc.

Good morning, and welcome to the Kinaxis Inc. Fiscal 2026 First Quarter Results Conference Call. Currently, all participants are in listen-only mode. Following the presentation, we'll conduct a question and answer session. Instructions will be provided at that time for you to queue up and ask your question. I'd like to remind everyone that this call is being recorded today, Thursday, May 7th, 2026. I'll 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 first quarter results, which we issued after close of markets yesterday. With me on the call are Rizat Gaurav, our Chief Executive Officer, and Blayne Fitzgerald, our Chief Financial Officer. Some of the information discussed in this call is based on information as of today, May 7, 2026, and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those set out 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 Plus filings. During this call, we will discuss IFRS results and non-IFRS financial measures, including adjusted EBITDA. The reconciliation between adjusted EBITDA and the corresponding IFRS result is available in our earnings press release in MD&A, both of which can be found on the investor relations section of our website, canaxis.com, and on CEDAR+. 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 Connexus. 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. Finally, I want to remind you that our user event connections will take place from June 1 to June 3 in Las Vegas. All sessions on the second and third are open to investors. You can review event details at connections.com. And if you're interested in joining us, please reach out to me directly at rwadsworth at canaccess.com before registering as we have capacity limitations. Over to you, Reza.

Thanks, Rick, and good morning all. Turning to slide four. I'm extremely pleased with how the team performed in the first quarter. Momentum from our last year has continued with a record Q1 performance. Our great start to the year is evidenced by performance in our two key growth metrics. Our SAS revenue grew by 21%, a significant jump compared to 16% growth a year ago. This provides us with a tremendous start towards our SAS growth guidance for the year. Our ARR balance grew by 20%, accelerating from 14% growth in Q1 2025. All this growth translated to significantly improved profitability in the first quarter. We achieved record quarterly profit and adjusted EBITDA. And our adjusted EBITDA margin was 32%. Blaine will speak to details soon. Our momentum as the leader in AI-driven supply chain planning and orchestration continues to accelerate in an environment that is characterized by the following. Firstly, There's heightened levels of volatility in supply and demand with ongoing levels of geopolitical and structural shifts. Secondly, significant push to create new levels of productivity and working capital efficiencies while improving customer fulfillment service levels. And thirdly, a growing pace of innovation and change in underlying data architectures and agentic AI. in an effort to create new levels of intelligence, efficiencies, and automation. Customers are exploring new forms of intelligent decision-making, governance, operating models, and process automation, leveraging a mix of predictive, prescriptive, generative, and agentic AI. Their feedback gives us confidence that Kinaxis is on the right side of an exciting opportunity to transform the ways of working across the entire supply chain. and deliver unprecedented levels of value to our customers. The opportunity ahead is significant, and the latest innovations in data architectures and AI are providing us a tremendous tailwind. Turning to slide five, it was a record Q1 for new business in total, business from new customers and from expansions with existing customers. was double the amount of total new business we signed in Q1 2025 and won 60% more than in any previous Q1, measured by average annual contract value. Our average deal size was over double what we experienced in the first quarter last year. Once again, we saw disproportionate strength from contracts with 1 million plus in average ACV, winning several more than we did a year ago. including our largest initial customer contract ever, both by annual and total contract value. We'll provide you with specifics on the number of one plus million dollar deals annually, but our early success and pipeline suggest that 2026 could be another strong year in this regard. On to slide six. Just under half of the new ARR we added in Q1 came from some exciting new customers. most of which were enterprise or large enterprise class. I'll highlight a few wins. In consumer products, we were thrilled to win Pernod Ricard, the world's leader in premium international champagnes and spirits. They have over 200 iconic brands, including Absolute, Beef Eater, Chivas Regal, GH Mom, Glenlivet, Havana Club, and Jameson. Pernod Ricard is going to be deploying our Maestro platform for end-to-end planning across their global supply chain network, in an effort to improve service levels and gain cost efficiencies. In our chemicals vertical, Tessa has become a customer. Tessa develops over 7,000 innovative adhesive solutions and is active in 100 countries. Tessa is looking to leverage Maestro to help shift from regional silos to a centrally governed global supply chain model to support rapid growth, new product launches, and other strategic initiatives. We've continued our amazing run in the energy sector. Last quarter, we won Marathon Petroleum, and now we've added the largest renewable energy company in North America. The company uses a diverse mix of energy sources, including natural gas, nuclear, renewable energy, and battery storage. Their expansive asset base requires better end-to-end processes to ensure the right parts are in the right place at the right time. They're also looking to improve demand forecasting using outside-in data and machine learning techniques so they can quickly respond to new opportunities. The energy sector is undergoing massive investments to support the demands of the new AI economy and the surge in the build-out of data centers, so we expect this to remain a strong sector for us ahead. In life sciences, we want a large vital organ therapy company which for 70 years has driven meaningful innovations in kidney care. They're going to be deploying Maestro for end-to-end intelligent planning capabilities. We also want a couple of mid-market life sciences companies, ALK, an allergy treatment specialist headquartered in Denmark, and Laboratoire Thea, which researches, develops, manufactures, and commercializes a wide variety of eye care products. In industrial manufacturing, we won a significant contract with a global Fortune 500 company. This well-known leader is looking to replace siloed business unit decision-making with our unified platform covering S&OP, demand planning, distribution, inventory, shop floor scheduling, and more. They're also going to be deploying maestro agents to gain intelligence, productivity, and automation.