Sangoma Technologies Corporation

Good day, ladies and gentlemen, and welcome to the Sangoma First Quarter Fiscal 2025 Results Conference Call. I would now like to turn the meeting over to Samantha Reburn, Chief Legal Administrative Officer. Please go ahead.

Thank you, Operator. Hello, everyone, and welcome to Sangoma's First Quarter Fiscal Year 2025 Investor Call. We are recording the call, and we will make it available on our website for anyone who is unable to join us live. I'm here today with Charles Salameh, Sangoma's Chief Executive Officer, Jeremy Webbs, Chief Operating and Marketing Officer, and Larry Stock, Chief Financial Officer, to take you through the results of the first quarter of fiscal year 2025, which ended on September 30th, 2025. 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 that 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 may 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. Greatly appreciate you taking the time to join us today and for your support and interest in Sangoma. I want to focus my remarks today on our strategic priorities for fiscal 2025 and why I'm truly excited about our direction. We entered this fiscal year as a completely different company from the one I first joined in fiscal 2024 back in September. For the first time since I joined, we are on very firm ground this quarter. This is the result of some remarkable efforts and focus by our management team. The necessary transformational work we completed in fiscal 2024 was focused completely inward, and we had to. We assembled a top tier of enterprise class leaders, streamlined our operations, modernized our information systems, and strengthened our processes. Additionally, we worked tirelessly to enhance our culture and reestablish our corporate identity and brand. Now, simultaneously, we ran a separate parallel track where Larry and the team did an outstanding job improving our financial health. We stabilized our revenue base, enhanced our operating cash flow, and substantially reduced our debt. We now have the financial flexibility to expand Sangoma's reach with the groundwork now set for the next phase of our transformation. Now, however, with more of an external focus. As I mentioned in a few before calls, Critical 2025 was all about the pivot to growth, and we had three paths to achieve this, organic market expansion, channel expansion, and inorganic growth. Transformations are challenging and hard work. It's not the sexiest part of the job, but it's essential to get done to provide the sustainable long-term growth of the company. The reinvigoration of our organic growth engine is rooted in our go-to-market strategies. This work began in earnest when Monica Walton joined as Chief Revenue Officer in May. Our go-to-market framework is built on three pillars. The first is account expansion, or as the industry calls it, share of long strategies. The second, new local acquisition. And the third pillar is what we call base building or strategic deals. These are deals, multi-year TCB transactions with greater than $10,000 in MRR. With fiscal Q1 now complete, We now have our first full quarter under our belt, and a number of our new go-to-market programs are in place. We are still in the early stages, but we are seeing progress across several key indicators, and this is giving us confidence that we remain on track towards our FY2025 plans. Let's start with account expansion, or share of wallet. During the first quarter, we saw a 6% increase year-over-year with a number of customers at over $10,000 in monthly revenue. I use this as a gauge to determine customer relevance. Our success stems from expanding the product core offerings for each of our customers while building our upsell and cross-sell capabilities. Over the past six months, our net promoter scores has improved significantly. This is a testament to our investment in customer service and account management and the great work done by our chief client officer, Bill Coppins. The next is new logos. To further support our expanding pipeline and growth ambitions, we have enhanced and invested in new demand generation efforts, targeting 40 to 50 new leads per week. One of our KPIs is the percentage of bookings from new customers. In the first quarter, we saw a strong quarter-over-quarter increase of 42% of our bookings coming from new customers, compared to 36% of our bookings in the fourth quarter, fiscal 2022. The third pillar in our go-to-market is base building, or strategic deals. In the first quarter, we saw a 28% year-over-year increase in the number of large UCAS opportunities in our sales fund, with greater than $10,000 in MRI. These deals are great to build a recurring base, and given their size, partners love them too. I'm very excited about what I'm beginning to see in the marketplace, as customers are starting to adopt essential communications as part of their integrated bundle of solutions. Two notable examples in the first quarter was a $250,000 TCV deal that we signed with a property management company and an exciting $470,000 TCV deal we signed with a large restaurant chain. These are exactly the kind of deals that I've been speaking about in the last three quarters. The second vector in our growth strategy is investing and expanding in new markets and channels. We completed our partner segmentation and relaunched the Pinnacle Partner Program, focusing our efforts on our top 400 strategic partners. Additionally, we've implemented a national MDF, or Market Development Fund, program to support the execution and co-styling with these partners. We have over 160 partner events planned for this year. Through these initiatives, we've stepped up our engagement with our top partners, including large-scale distributors, to revitalize our premise-based business. From these efforts, just over the last several weeks, we've seen a significant volume of customers adopting Cangomo premises after the NEC exit of this market. This is a unique opportunity the team jumped into inside of the quarter. On to our third vector of growth, which is inorganic. This strategic approach has been integral to our long-term vision from the outset. Axelary and his team's exceptional work in strengthening our balance sheet are now in prime position, to execute this strategy with confidence and precision. Our new ERP system remains on track for completion in early calendar 2025. The work that we have done to improve our systems, our tools, and processes will allow us to actively engage under a proven, inorganic strategic methodology. The more integrated and streamlined your systems are, the faster you reap the benefits of integration. Our decision to focus on paying down debt has been perfectly timed. As macroeconomic issues begin to subside and the cost of capital starts to decrease, Sangoma is now in an ideal position to deploy capital from non-diluted sources. This is due to our strong cash flow generation and ample debt capacity. Work is underway to build a pipeline of potential targets. As we work to align and improve our voter market, we'll continue to refine, optimize, and potentially pull back on some of our portfolio investments to advance our long-term position as a purified communication platform company. In summary, I believe fiscal 2025 will be a pivotal year for Shell Global. The transformational work completed in fiscal 2024 has paved the way for the strategic initiatives that will drive long-term sustained growth and value creation. That is clearly based on everything we've seen, including our progress in Q1. I feel confident to remain steadfast on our guidance for fiscal 2025. I'll turn it over to Larry to speak on the financial highlights. Larry, over to you, Kyle.