Kinaxis Inc.

Good morning and welcome to the Canaxis Inc. Fiscal Second Quarter 2026 Results Conference Call. Currently, all participants are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. I'd like to remind everyone that this call is being recorded today. I will now turn the call over to Victoria Hyde-Dunn, Vice President of Investor Relations at Canaxis Inc. Please go ahead.

Thank you. Good morning and welcome to the conference call. Joining me today are Razat Gaurav, Chief Executive Officer, Herb Yeh, Chief Financial Officer and Chief Strategy Officer, and Peter Jaroskowicz, Vice President of Financial Planning and Analysis. Before we begin, we have a couple of reminders. We will be discussing our second quarter 2026 results, which we issued after the close of markets yesterday. The earnings press release and slide presentation are available on the Investor Relations website at investors.canaxis.com. Some of the information discussed on this call is based on information as of today, August 6, 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 Please review the forward-looking statements disclosure in the earnings press release and in our CDER Plus filings. Additionally, 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 MDNA. both of which can be found on the Investor Relations website and on Cedar Plus. With that, it is my pleasure to turn the call over to Razat.

Thank you, Victoria, and thank you everyone for joining us today. Before I begin, I'd like to welcome Herb to his first earnings call with Kinexis. Welcome, Herb. We also recently welcomed Kristin Russel as our Chief Marketing Officer. We're excited to have Herb and Kristin on board as we scale and build Canaxis for the next phase of innovation and growth. I will start today's call with my observations on the quarter, then turn it over to Peter to discuss financial results, and then to Herb to review guidance before the Q&A session. as many of the world's largest enterprises turn to Kinaxis to manage growing demand, volatility, and uncertainty. Second, our vision for operational orchestration and our continued investments in core maestro capabilities reinforce our commitment to innovation and to supporting the world's most complex supply chains. Third, our second quarter performance builds on the strongest first half in Kinaxis history, and we are very pleased to raise our full year guidance for total revenue and SaaS revenue growth. Our continued commitment to product innovation, investments and growth initiatives, and focus on customer and partner success remain our North Star. Let me discuss these topics in more detail. Beginning with second quarter results, SaaS revenue increased by 20% year over year, ARR grew by 19% year over year, and adjusted EBITDA margin of 26% is in line with our full year guidance. Our strong performance reinforces our position as a trusted enterprise partner for the world's most complex supply chains, reflecting continued customer demand for AI-enabled planning and orchestration as organizations navigate an increasingly volatile and unpredictable operating environment. Companies are facing multiple sources of disruption simultaneously, trade and tariff uncertainty Geopolitical conflict, energy prices, sourcing challenges, and shifting customer demand are all happening at the same time. Given this fluid operating environment, organizations need an enterprise platform that can rapidly scenario plan and help them make better decisions across their concurrent supply chain. We saw global scenario planning activity on our platform increase every month from April through July this year, with July up 30% year over year. We are seeing this momentum with customers as we unlock value within a $66 billion addressable market. It was another strong second quarter for new business in total, including business from new customers and expansions with existing customers. Our average deal size was almost double what we experienced in the second quarter last year. Once again, we continue to see strong momentum with contracts with one million plus in average ACV, winning three times more than a year ago. Our pipeline conversion rates grew very well. Our partners are sourcing new opportunities and co-selling with us, having contributed a record number of new deals in the second quarter and providing pipeline for the second half of the year. Sales to existing customers have also accelerated. We set a new company record in ACV bookings for quarterly expansion from existing customers with over 70% year-over-year growth. These customer expansions were driven by innovative new capabilities, including agentic AI, machine learning-based demand forecasting, advanced inventory optimization, enterprise scheduling, and other supply chain optimization use cases, all part of our maestro platform. We're also seeing early traction with our Maestro Activity Unit usage-based pricing structure. All new proposals to customers and prospects now include MAUs. Beginning in July, select renewals started incorporating MAU pricing bundles. We've been thoughtful in our phased approach to align pricing with the value we create for our customers. Let me share some notable customer wins and use cases. In consumer manufacturing, Lacoste, one of the world's most iconic premium fashion and sportswear brands, selected Maestro to modernize production planning across its manufacturing operations, improving service levels, reducing lead times, and increasing operational agility. In life sciences, Gideon Richter, one of the Central and Eastern Europe's largest pharmaceutical companies, selected Maestro to replace fragmented planning processes with a single concurrent planning platform. Improving visibility, collaboration, and decision-making across its global business. Decra, a global leader in veterinary, pharmaceuticals, and animal health, selected Maestro to modernize demand, supply, and inventory planning as part of its SAP S4 HANA transformation, creating a unified planning platform across its global operations. Sumura, a leading Japanese pharmaceutical company, has become a new customer, and Ecolab is expanding their footprint with Nalco Water and Europe. In industrials, Rockwell Automation, a global leader in industrial automation and digital transformation, has become a new customer, and we have a new Fortune 500 company for the machinery sector. We are seeing a significant uptick in needs driven by the surge in data center build-outs. Many customers across the high-tech value chain, including tooling, equipment, storage, semiconductor, power, and energy companies, use our Maestro solution already. Ansaldo Energia, one of Europe's leading power generation equipment manufacturers, selected Maestro to modernize end-to-end planning across its complex manufacturing operations, supporting the growing demand for energy infrastructure, in part driven by AI and data center expansion. Turning to Connections North America, our flagship conference was a great success. We had record attendance from global customers, prospects, and strategic partners and received very positive feedback on our new operational orchestration vision. This includes interoperable, composable, and extensible building blocks that can supplement maestro, and enable broader operational orchestration solutions, leveraging the latest in semantic architectures and agentic AI. Our partnership with Databricks for Data Fabric is live in Maestro, enabling outside-in signal ingestion and data cataloging. It ingests data from sources like social sentiment, weather and news feeds, combining it with structured enterprise data. Since our launch at the end of last year, Maestro agents have progressed from starter trials to early adopters to paid customers. Approximately 10% of our installed customer base is on a paid or trial subscription. We have a significant opportunity to bring the power of Maestro platform and AI agents to a much larger pool of customers. While still in early days, we've seen a broad range of use cases. For example, Our data integrity agent has helped identify and prioritize data quality issues. The inventory access analysis agent compares two scenarios to identify the largest shifts. The demand at risk analysis agent can pinpoint late purchase orders that risk demand and revenue. Our forward deployed engineering capabilities and ongoing platform investments will unlock new opportunities for Kinaxis. Kinaxis is moving beyond just being a system of record for planning and decisioning to becoming a continuous system of intelligence, action, and learning. FDEs will work directly with customers to solve complex, unique, high-value business problems on our platform. We have a growing list of customers actively engaging with us on AI-driven supply chain transformation. We are beginning discovery with these customers to determine what the FDEs will build and the outcomes to be achieved. We expect these engagements to actively expand through the end of this year and into 2027. Looking ahead, we are very pleased with the strong year-to-date results and momentum heading into the second half of the year. We are raising our guidance for full year total revenue and SAS revenue growth. We are building depth, scale, and performance into the foundation of planning and decision-making for Maestro and building a composable agentic AI platform to realize our vision for operational orchestration. Importantly, we are managing the business for long-term, durable growth and profitability. As we share that connections, we are focused on five key strategic initiatives to drive long-term growth. continue investing in core Maestro platform. Second, building an agentic framework for operational orchestration. Third, executing on our new FDE customer engagement motion. Fourth, doubling down on training and enablement of our growing partner ecosystem. Lastly, and most importantly, continuing to stay focused on customer success and delivering value. We believe AI is making our core strengths more valuable, not less. As the market shifts from experimentation to adoption, customers need trusted intelligence, explainable decisions, and measurable outcomes. That's exactly where Kinexis is investing and where we're seeing growing demand from customers and continued business momentum. As I wrap up, thank you to my Kinexis colleagues, are customers, partners, and shareholders for your support.