Sangoma Technologies Corporation

Thank you for standing by. This is the conference operator. Welcome to the Sangoma Investor Conference Call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity for analysts to ask questions. To join the question queue, you may press star, then 1 on your cell phone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and 0. I would now like to turn the conference over to Samantha Reburn, Chief Legal Officer. Please go ahead, Ms. Reburn.

Thank you, operator. Hello, everyone, and welcome to Sangoma's second quarter fiscal 2024 investor call. We are recording the call and will make it available on our website for anyone who is unable to join us live. I am here today with Charles Salameh, Sangoma's Chief Executive Officer, Jeremy Wubbs, Chief Operating and Marketing Officer, and Larry Stoff, Chief Financial Officer. to take you through the results of the second quarter of fiscal year 2024, which ended on December 31st, 2023. We will discuss the press release that was distributed earlier today, together with the company's financial statements and MD&A, which are available on CDAR+, EDGAR, and our website. As a reminder, Sangoma reports under International Financial Reporting Standards, IFRS, and during the call, we may refer to terms such as adjusted EBITDA, which is a non-IFRS measure, but is defined in our MD&A. Before we start, I'd like to remind you that the statements made during the course of this call that are not purely historical are forward-looking statements regarding the company or management's intentions, estimates, plans, expectations, and strategies for the future. Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results might differ materially from those projected in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are discussed in the accompanying MD&A our annual information form, and the company's annual audited financial statements posted on CDAR+, EDGAR, and our website. With that, I'll hand the call over to Charles.

Thank you, Sam, and good afternoon to everyone on the call. Your presence here is greatly valued as we discuss Sangoma's journey and its achievements. When I joined four months ago, I saw the significant potential assets at Sangoma. Given the progress we are making, I am excited now more than ever of our potential and our ability to be a market leader providing communication technologies. The vision that I laid out last quarter is now in motion with concrete steps towards the realization of this direction. To kick things off, I'd like to highlight our fiscal second quarter performance as detailed in our recent press release. We closed our Q2 with total revenues of $62.3 million. alongside adjusted EBITDA of $10.4 million. This translates to 17% margin. This is a testament to our team's hard work and dedication, particularly over the last 120 days. Now, reflecting on our discussion from November, when I was still quite new here, we announced and embarked on a transformative 100-day plan for Sangoma. This initiative was aimed at a comprehensive reassessment of our operations, was crafted to align our strategic direction and was intended to maximize the potential of our assets. I am thrilled to report substantial progress in our evolution into a premier growth-oriented cloud-based managed communication services provider. Now, Sankelma's expansion through 11 acquisitions certainly brought a rich diversity of offerings. However, realizing the full potential of these assets requires overcoming the challenge of ineffective integration. Addressing this was the cornerstone of the 100-day plan that I'd outlined previously. Now, as we are past the initial 100 days, we have a transformative plan that is now in full execution mode. We are swiftly moving towards becoming a more dynamic and agile client-centric organization, fully integrated to meet the evolving needs of our customers. The true value of Sangoma lies within the integrated offer we can provide this market. Today I'm super excited to share some key milestones in this journey. First, we made some changes to our management team, including augmenting it with strategic hires aligned directly to support the company's needs. We've hired Mark Stratton as the company's first ever CIO. Mark's deep experience in IT transformation is invaluable, and his addition signifies a major step forward for Sangoma. Additionally, as part of our forward-looking go-to-market strategy and the overhaul that this entails, we further strengthen our team by introducing a seasoned global sales operations leader and a new marketing head, whose respective focus will be on enhancing our marketing presence and defining Sangoma's brand in the industry. My leadership team is now in place to lead Sangoma into a new era. In our organizational restructuring, we've streamlined functions and aligned our leadership with specific operational functions that enhance our agility and innovation capacity. This restructuring not only drives innovation, but it also has led to a significant cost reduction, which Larry will discuss in far more detail. Savings that can be applied to the growth transformation we are about to undertake. But our approach balances nurturing our diverse and existing portfolio with expanding into new markets through bundled offerings targeting sophisticated mid-market clients. This dual strategy aims to cater to both our traditional base and enables new growth avenues to be opened. A key commitment I made from last quarter was to self-fund this transformation, a goal I am proud to say we've successfully achieved. And Larry will confirm this in his update. Our product offerings are being fully rejuvenated with new and innovative bundles marking a whole new phase of Sangoma's commitment to being a dependable innovation partner to our vast ecosystem. Jeremy will share insights into these developments and our customer support enhancements, which we aim to complete by the end of this fiscal year. We've also reimagined our market strategy, leading to a revitalized approach that Jeremy will further detail. Our internal operations have experienced significant improvements, moving away from outdated processes and systems that previously hindered our efficiency and our scalability. These changes are pivotal to Sangoma's growth, enabling us to better meet the market's demands. This decisive operational overhaul is already generating positive contributions to the overall financial performance of the company. But it should be expected that this level of transformation, the needed yet opportunistic changes we are making to capture our full market potential, We'll show a lag before it translates to revenue contribution. Yet, with our clear strategy, the right leadership in place, reliable execution, and transparent communications, we are now in a position to provide financial guidance for our full fiscal FY24, which Larry will detail in just a few moments. With that, I now pass the baton to Jeremy Wubbs, Sangoma's Chief Operating and Marketing Officer, to dive deeper into our strategic market and product initiatives. Jeremy, over to you.