Sylogist Ltd.

Thank you for standing by. This is the conference operator. Welcome to the Syllogist Limited second quarter 2024 results conference call and webcast. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there'll be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal our operator by pressing star then zero. I would now like to turn the conference over to Jennifer Smith with Lodrock Advisors. Please go ahead.

Thank you, Gaylene, and good morning. Joining me to discuss Philogis Q2 fiscal 2024 results are Bill Wood, Philogis President and Chief Executive Officer, and Sujit Kinney, Chief Financial Officer. This call is being recorded live at 8.30 a.m. Eastern Time on August 8, 2024. Our Q2 press release, MD&A Financial Statements and Accompanying Notes, have been issued and are available for download on CDAR+. Please note that some of the statements made on this call may be forward-looking. Actual events or results may differ materially from those expressed or implied, and Syllogist disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. The complete Safe Harbour Statement is available in both our MD&A and press release, as well as on Syllogist.com. We encourage our investors to read it in its entirety. We are reporting our financial results in accordance with International Financial Reporting Standards, or IFRS. Before, we will also discuss our non-GAAP performance measures, which should be reviewed as supplemental. The MD&A contains definitions of each one used in our reporting. All of the dollar figures expressed in this call are in Canadian, unless otherwise noted. I'll turn it over to Bill first with opening remarks, then Sujit will review our Q2 financial performance. after which Bill will conclude scripted remarks and we will open it up for questions. With that, Bill.

Thank you, Jen. Good morning and good afternoon to those of you joining us overseas. Building on a strong Q1, we're very pleased with an even better performance in Q2. We saw increasing momentum across the business driven by strong customer advocacy and our investments over the last 24 months to position Syllogist as a leader in the markets we serve. Our team is executing really well, setting us up for further SaaS ARR growth in the back half of the year and beyond. That confidence is underpinned by our performance across a range of key leading indicators. We achieved record bookings of $12.9 million in the quarter growing 112 percent year-over-year and 42 percent quarter-over-quarter, reflecting increasing success with new logos and cross-sells alike. Also, over $3 million, or nearly 25 percent, of our record Q2 bookings came from our syllogist ed sector, confirming the acceleration I've been signaling we were on the verge of in North Carolina. To that end, we're seeing increasing momentum across all three strategic markets. So, just mission, ed, and gov. And we're highly competitive when we're at the table. With our overall win rate moving even higher to over 60% in Q2, largely due to our increase in success in displacing targeted competitors as we expected. We continue to make investments to build out and empower our partner community, and it's bearing fruit. Partner-attached bookings represented 21 percent of total bookings in the quarter. However, recall that we don't yet engage partners in our syllogist ed sector. And as I just quantified, it was truly a breakout bookings quarter in our ed segment. In our syllogist mission and syllogist gov sectors, so net of syllogist ed, partner attached bookings came in at 27% of total bookings. As we execute our channel strategy, we're handing off lower margin project service revenue to our partners and replacing it with higher margin SaaS ARR. That handoff is occurring at a faster rate than we anticipated. In response, we've correspondingly added to our internal project service team to train and empower the quickly expanding partner community, and in parallel, deliver syllogist mission and gov project services to customers directly. As the community of high-quality partners expands, It's creating increased sales and project service handoff capacity for Sillagist in 2025 and beyond. New logo wins and cross-selling success are driving continued strength in our SaaS ARR and our SaaS net revenue retention. Our SaaS ARR increased by 17% year-over-year to just shy of $30 million. and SaaS ARR bookings as a percentage of total bookings grew from 50% in Q1 to 68% in Q2. That's exactly the value creation trajectory we want to see. Expanded platform functionality, cross-selling success, and our continued focus on customer wellness pushed our overall SAS NRR up to 109 percent from 106 percent last quarter. I want to highlight that we saw our SAS NRR in the syllogist mission to grow to 125 percent in Q2. This is a clear example of our land and expand strategy in action. made possible by our modern integrated SaaS platforms and happy customers. In fact, our largest TCB booking in the quarter was a Syllogist Mission CRM cross-sell to an existing Syllogist Mission ERP customer. And I want to call out that it was also a targeted competitor displacement. confirming that our integrated platforms are changing the competitive landscape as we envisioned they would. Going forward, we expect an increasing balance of bookings contribution from all three strategic markets. I also want to highlight that in Q2, our revenue per employee grew 7% year-over-year to $338,000 due to increased operating efficiency. I'll pause here and let Sujit take you through our financial performance for the quarter in a little bit more detail. Sujit?