TECSYS Inc.

Good morning everyone. Welcome to Texas Fiscal Year 2027 First Quarter Results Conference Call. Please note that the complete first quarter report including MD&A and financial statements were filed on Cedar Plus after market closed yesterday. All dollar amounts are expressed in Canadian currency and are prepared in accordance with international financial reporting standards. Some of the statements in this conference call, including the question and answer period, may include forward-looking statements that are based on management's beliefs and assumptions. Actual results may differ materially from such statements. I would like to remind everyone that this call is being recorded on Friday, September 11, 2026, at 8.30 a.m. Eastern Time. I would now like to turn the conference over to Mr. Peter Brereton, Chief Executive Officer at Texas. Thank you. Please go ahead, sir.

Thank you and good morning everyone. Thank you for joining us to discuss our Q1 2027 results. We're pleased to open fiscal 2027 with one of the strongest quarters in our history. Q1 delivered record bookings, in fact, the second highest bookings quarter Texas has ever recorded, giving us real momentum and visibility as we head into the rest of the year. The story of this quarter was expansion. Our installed base, particularly in healthcare, continued to deepen its commitment to the Texas Elite platform, With existing customers substantially increasing their footprint with us. We're proud to count organizations like Prisma Health, UT Southwestern Medical Center, and a leading cancer treatment center among the health systems that expanded their relationship with Texas during this period. A strong signal of the trust hospitals place in our hospital supply chain platform as they scale their operations. At Prisma Health, South Carolina's largest private nonprofit health system, the expansion extends beyond initial deployments of our warehouse and pharmacy inventory systems to now include our hospital point-of-use technology across their network, giving clinical and supply chain teams greater visibility if they support 1.6 million patients a year across 19 hospitals. Healthcare was the primary driver of this expansion activity, but it wasn't the whole story. We also saw general distribution customers continue their migration to SAS, including Rintem, a large global distribution customer, and we added a notable new logo in Europe with a growing light sciences company. Evidence that our platform resonates well beyond our core North American healthcare base. Turning to our SAS metrics, elite SAS ARR and revenue growth continue to accelerate. Elite SaaS AR grew 24% year-over-year, or 22% in constant currency, and Elite SaaS revenue grew 24% in the quarter, or 23% constant currency. This acceleration reflects both the strength of our SaaS-first strategy and the increasing scale of our Elite platform customer base. We also passed a significant milestone in Q1, with our remaining performance obligation to our RPO crossing the quarter-billion-dollar mark for the first time. reaching $259 million, up 14% year-over-year, or 13% in constant currency. RPO is a key forward indicator of the durability of our SaaS business, and this milestone underscores the growing visibility we have into future revenue. Our strong SaaS bookings and momentum in Q1 give us the confidence to raise our full year fiscal 2027 guidance across the board. Mark will discuss the updated ranges shortly. On the product side, Texas IQ continued to gain momentum in the quarter, helping customers turn supply chain data into faster, more confident operational decisions. We continue to invest in Texas IQ's roadmap with a number of new AI-driven capabilities and early development that we look forward to sharing more about as they mature. We also continue to advance our FedRAMP program throughout the quarter as we work towards full certification. This progress reflects the broader investment we've made in our security and compliance posture, and it's given both public sector and enterprise healthcare customers greater confidence in Texas as a long-term trusted platform partner. We're also proud that our commitment to people and culture, including growth in our team in India, helped earn Great Place to Work certification for a third consecutive year across every country where we operate, with 91% of our employees telling us that Texas is a great place to work. That kind of consistency across every market we operate in is something we don't take for granted as we scale. With that, I'll turn it over to Mark to walk through the financial results and updated guidance in more detail.

Thank you, Peter. As a reminder, our first quarter ended July 31st, 2026. Q1 was an exceptional quarter for Texas, highlighted by record SaaS bookings for first quarter, record total revenue, and Record Adjusted EBITDA. Total SAS revenue grew 18% in Q1, reaching $22.7 million, up from $19.1 million in Q1 last year. That growth was about 17% on a constant currency basis. As Peter mentioned, elite SAS revenue, our core product and the predominant contributor to total SAS revenue, increased by 24% compared to Q1 last year. Atlas 23% growth on a constant currency basis. Total SAS ARR was $93.7 million at July 31st, 2026, up 18% from the same time last year. On a constant currency basis, SAS ARR growth was 17%. You'll notice that we've begun disclosing elite SAS ARR separately in our MD&A. This additional disclosure is intended to highlight the underlying growth trend we have discussed over the past several quarters and provide greater visibility into a key leading indicator of future SAS revenue growth. Elite SAS ARR was 89.6 million at the end of Q1, up 24% year over year, representing 22% growth on a constant currency basis. As Peter mentioned, SAS RPO was $259.2 million at July 31, 2026, up 14% from a year ago, or 13% on a constant currency basis. Professional services bookings were lighter, which brought our PS backlog down somewhat. As a result, we expect PS revenue to tick down slightly on a sequential basis in Q2. It's important to note that it's not uncommon for professional services bookings to follow SaaS bookings with the timing lag. As a result, the strong SaaS bookings in Q1 may not translate into professional services demand until later in Q2 or subsequent periods as customers advance through deployment planning and execution. Q1 fiscal 2027, total revenue was $50 million compared to $46 million in Q1 last year. That's 9% growth, 8% on a constant currency basis. Net profit in Q1 fiscal 27 was $3.1 million, or 21 cents per diluted share. That's up 306% from $0.8 million in Q1 last year. Adjusted EBITDA, $6.9 million in Q1 this fiscal year, up 113%. from 3.2 million same period last year. We ended the quarter with cash and short-term investments of $35 million and no debt. Cash flow from operating activities was particularly strong, driven by profit and strong cash collections. During the quarter, we repurchased 17,400 shares for approximately $0.6 million under our normal course issuer bid. That compares to 21,300 shares for $0.8 million in Q1 last year. Finally, the board yesterday approved a quarterly dividend of $0.09 per share. Moving on now to fiscal 2027 guidance. Based on strong Q1 elite SaaS bookings, continued pipeline strength, and robust hardware bookings, We're raising our fiscal 2027 guidance ranges for elite SAS revenue growth, total SAS revenue growth, total revenue growth, and adjusted EBITDA margin. Our updated guidance for fiscal 2027 is as follows. Elite SAS revenue growth of 21% to 23%. That's up from 18% to 20% in previous times. Total SAS revenue growth of 16 to 18%, and that's up from 13 to 15% previous guidance. Total revenue growth of 5 to 8%, and that's up from previous guidance of 2 to 4%. And finally, adjusted EBITDA margin. We're broadening the range and extending it on the high side to 11 to 14%. and that's up from 11 to 13% previous guidance. I'll now turn the call back to Peter.

Thank you, Mark.

Record SaaS bookings are second highest ever, accelerating elite SaaS ARR growth of 24%. and crossing a quarter billion dollars in RPO for the first time all point to real momentum as we open fiscal 2027. That strength gives us the confidence to raise our full year guidance and we are excited about what's ahead. With that, we will open the call for questions.

Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star 4 by the 1 on your telephone keypad. You will hear a prompt that your hand has been raised. If you wish to cancel your request, please press star followed by the do. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Thank you. And your first question comes from the line of Amir Izad from Kenneco, Jr. with E. Please go ahead.

Good morning, Peter, Mark. Congrats on the strong performance. Peter, clearly a very strong bookings quarter. In your prepared remarks, you highlighted expansions, I believe, as the primary driver. I'd like to know if you could give us a better sense of the mix between new logos and expansion. Then on the pipeline conversion side, Did Q1 reflect a release of deals that have been delayed over the last couple of quarters, or are you seeing broader acceleration in decision-making?

On your first question, there's no question this quarter is heavily slanted towards expansions. It's been interesting for us, of course. We really have these three contributors to SaaS bookings. We have migrations from our old on-prem software. We have new accounts and then we have expansions of customers that are already on our platform. And we've seen over the last few years a dropping off, particularly over the last two years, a real dropping off of SaaS bookings coming from migrations from our base. So we knew we had to sort of get over that. It's like it was this wonderful source of SaaS bookings, but it was eventually a run out of accounts to move across. And Most of the early and mid-crowd have moved. There's really just a few laggards that are left. So we know that's going to decrease. And certainly this quarter, it was a contributor, but it was a small contributor. New account bookings are typically light in summer. Our year end is April 30th, so typically whatever is close to closing, we kind of push to get it closed for year end. So then you've got and so on and so forth. were widespread, and we've worked a number of deals, one larger deal, a wide variety of sort of small and medium-sized deals. It was a pretty exciting quarter from an expansion standpoint. You know, some of that, I think, is partly driven by people understanding what Texas IQ is going to do for them and the fact that they have to sort of further roll out our underlying platform in order for Texas IQ to have the data that it needs for the AI engine to operate. But, you know, pretty interesting there. From the standpoint of the overall pipeline, as you know, the pipeline really grew substantially a little over a year ago. It's continued to grow. It's up again over this time last year. And we knew that at some point that dramatically larger pipeline was going to start to break and convert to closed business. And that's what seems to be happening. I mean, we saw some of the surge start to happen in Q4, continue a very strong Q1. And even now where we are in Q2, you know, the activity level range very high. And that is across new accounts and expansions from our base. Again, there's a small amount still in there that's migrations. But, I mean, it added up. We're probably talking well over 90% of the pipeline activity is a pretty even mix between new accounts and expansions of existing SaaS customers.

Fantastic. Just on expansions, and I asked you this a few quarters ago and wanted to revisit it. Among the IDNs that initially came to you specifically for pharmacies, Have any expanded into your broader solutions?

I don't think so yet. No, not yet.

Although one of the expansions that we had this quarter was one that had purchased pharmacy, but They were also using other products as well.

Yeah. Yeah. Fantastic. I'll revisit it in a few quarters. Just to close the loop on the non-core piece, by our math, elite ARR increased about $7.5 million sequentially, and the non-elite ARR declined by roughly half a million. Is that the right way to think about the quarter or is my math wrong? And are we now at a point? Go ahead.

That's good math.

Okay, fantastic. Then, okay. Mark, while I have you, like on the, like the Q1 EBITDA margin, like 13.7, already near the top of the new 11 to 14% range. At Q4, you said the restructuring savings were fully embedded. and your original guidance, but not all the planned reinvestment has happened yet. So when I'm looking at your Q1 numbers, should we expect any meaningful step up in operating investments through like the balance of the year or is the quarter closer to the underlying sort of earnings run rates?

Yeah, no, we're expecting to increase investment. You know, we'll be doing We'll be doing some hiring pretty broadly across different functional areas. I mean, we're continuing to scale the business. I think that investment is going to be quite measured, but you will see an increase in investment in the quarters ahead this fiscal.

Fantastic. Congrats again. I'll pass the mic. Thanks. Thanks.

Thank you. And your next question comes from the line of Gavin Fairweather from ABB Cornmark. Please go ahead.

Oh, hey, good morning, and congrats on the strong quarter. Maybe just circling back to bookings, I mean, just very strong, especially for a key one, which is, you know, seasonally weak. Like, I'm just curious what you attribute that to. I mean, are you seeing this more buying intense or urgency in the base? I mean, any kind of further color would be helpful.

Yeah, I mean, first of all, Gavin, there is always a certain amount of lumpiness in our business, right? You know, just the sheer deal size relative to our size creates lumpiness, and I don't think that lumpiness is going to go away for quite a while. So, you know, some of it I would just attribute to normal lumpiness, if there's such a thing as normal when you're talking lumpiness. But the other factor is I think our, like, in fact, you know, our sales organization is getting much better at using the data out of the hospital networks to put together a return on investment prediction that can now be backed up with real-life stories from other accounts that have already done it. Once you get an ROI study in front of a hospital executive team that shows they're going to save $200 million over the next five years by deploying our platform or whatever the number is, It's created some real urgency around it. And, you know, most of these hospital networks are now in a position where, you know, whatever, I mean, politics in the U.S. continues to sort of ebb and flow and there's lots of different factors going on there. But the overall long-term trend is, you know, reimbursements are declining and the population is aging and doctors want to make more money every year and nurses want to make more money every year. So there's only so many places they can go to save money and try to sort of balance the and much better management of supplies and drugs is a huge source of potential savings and maybe in fact the primary source of potential savings. So as we're getting better at sort of data-backed ROI studies, we're seeing an across-the-board acceleration in pipeline. So we're continuing to invest in that. We've We continue to build out the team that puts that together. We have a pharmacist, we have a nurse, we now have a part-time surgeon that's part of that team, as well as some good sort of math and supply chain guys that work together as a team to build out these ROI studies. And it seems to be proving very effectively.

You talked about pipelines growing earlier, but I'm curious if you grew it sequentially in the quarter given the strong bookings.

Yeah, we did. Actually, it actually continued to grow in the quarter in spite of the bookings that obviously came out of the pipeline.

Awesome. Good to hear. Maybe just on FedRAMP a few things, maybe you can just update us on the timing and milestones to completion. I'm also curious if you've done any kind of work to size up the TAM and also provide Curious for your thoughts on some of the political noise around the GSA this week and whether that could impact opportunities out there.

Yeah, I mean, first of all, on your question about what's happening at FedRAMP, I mean, the FedRAMP process is underway. There's sort of two main phases to FedRAMP certification. One is you Thank you for joining us. and we are in that process right now. So assuming that process goes well, we expect that we will achieve full certification by sort of late winter, early spring is kind of where I would put it. We might be able to beat that by a bit, but right now that's what it's looking like. In terms of the political noise going on and discussions around GSA schedules and so on, We do a small amount of business through GSA, but it's a very small amount of business, and we are also set up with a, you know, we do quite a business in the U.S., so we have a U.S. subsidiary, Texas U.S. Inc., and so it's possible that we may need to sort of shift more contracts to our U.S.-based business, but we don't anticipate having a problem. It may just be a change in sort of which one of our and other legal entities as the contractor.

Great. And then lastly for me, just on SaaS gross margins, can you update us on where those stand? You know, when I look through your slide deck, it looks like you're still targeting 70% for, you know, this fiscal year. But can I dig through the services gross margin this quarter? Because it feels like you might already be operating there within kind of striking distance. So maybe just discuss where those are right now and the pace of gains for the rest of the year.

Yeah. Do you want to take that one, Mark? Sure, sure. Yeah, Gavin, you're right. We are very close to that level now. But we do have, as I had mentioned on one of the prior questions, we have some investment coming. So while we see some expansion opportunity from new bookings coming, that are always accretive to margin. We do expect to continue some investment there in the current fiscal year. We've got line aside on that 70%. We're still holding our objectives on that number for the short term. Clearly, longer term, our eyes are on a much bigger prize. and just by way of example, these expansions that we've put on in this quarter, a lot of expansion dollars in the bookings, those are coming in at incrementally quite high margins, 80% plus. So there's definitely runway for continued expansion beyond this fiscal.

Thanks so much for the hotline.

Thanks, Kevin. Thanks. Thank you. And your next question comes from the line of Doug Taylor from National Bank. Please go ahead.

Yeah, thank you. Good morning. And again, congrats on a very strong quarter to start here, as others have noted. Really, one question area I'd like to get some color on. I mean, given the sequence of events here with the initial guidance you provided and the new guidance you've given with these results, the primary question is, I'd still like to pin you to is a more specific answer on where the surprise was. It's been just over two months since you gave that guidance. You were most of the way through Q1 when it was provided. It's a good problem to have, but is it just pipeline conversion was well ahead of your initial assumptions? Did some renewals surprise you with increased scope? Just trying to get a handle on that. Any other thoughts there?

Sure, sure. I mean, we had two. Do you want to take it, Peter?

Sure, go ahead, Mark.

Yeah, literally two main things there. One is on the SAF side, and we talked about the big quarter, and we talked about the lumpiness. And, you know, we had line of sight to a very large pipeline, you know, coming into this year, and we weren't shy about describing that, you know, heading into this year. Pipeline velocity is always kind of hard to, you know, it's hard to hit, right? You're never quite sure how fast that stuff is going to, you know, is going to convert. Of course, if you book, you know, SAS in Q1 versus Q3 or Q4, there's a massive difference on in-year, you know, revenue realization. Because I think, as you know, you know, when we book SAS in a particular quarter, in our particular month, you know, essentially, you know, most typically, the revenue starts almost immediately. So, if the platform, we make it available, we start the project and start recognizing revenue. So, pulling, you know, pulling forward some of these, you know, these targeted bookings that we were confident in the year, but less confident on, you know, early year timing, the fact that we hit that, you know, pulled in a bunch of that fast, It has a pretty massive impact on those, on the SAS metrics. So, you know, that gave us great confidence, including the fact that we've got to still have a robust pipeline to support bookings in the outer quarters. But it gave us really good visibility on how much revenue we're going to realize, you know, for the rest of this year. So that moved the, and those were elite platform bookings. So that moved the bar, you know, on the elite SAS revenue growth. As part of that, it also moves the bar on total SAS revenue growth. And the other thing that happened, you know, for total revenue, and I mentioned that, we mentioned that in the prepared remarks and in the press release, we didn't have a really substantial amount of hardware bookings that came through in Q1, late in Q1, and even into the early part of this quarter. and we've got really good visibility on the delivery timing of those hardware bookings. These are lumpy and they're material enough that they're going to move the needle on headline revenue growth. So those are the two things that happen and why, you know, we were maybe a little bit, you know, on the SaaS side, we were a little bit surprised by the timing. On the hardware side, it's just notoriously. It's a hard one to call, and we didn't actually expect the level of bookings that we saw.

Fair enough, and we're all focused on the software side more so anyways. And so I guess it brings me to the next question then. Given the pipeline you've got, which you've said continues to grow, I mean, you don't guide to ARR, but Would your ARR assumption for the end of this year have moved positively as well, or would you say this is more a timing of closure versus the ultimate where you're going to end up the end of this year, that having moved much in your internal model?

Yeah, that's a great question. I mean, for right now, I would say, you know, we're very quite confident in our initial objectives on where we wanted to land ARR at the end of this year. There's still, you know, there's still several quarters of bookings left to do to get to that number. But I would say our level of confidence in our models has definitely improved. Thank you, and your next question comes from the line of John Hsiao from TD Cowen. Please go ahead.

Good morning, guys. Thanks for taking my question. So, Peter, could you talk about the current spending environment among U.S. hospitals and whether that spending profile is kind of dependent on the results of midterm elections?

We don't think so. We were actually just talking about it at the board meeting yesterday. It feels like the hospital networks, at least the ones we're working with, and we obviously are working with many of them, and so on. But they've already really absorbed that impact. They've seen what that impact is. And they're not really expecting any other major shift. So they seem to be largely ignoring the noise and focusing on sort of their long-term planning and getting their networks in the kind of shape they need to be to really harness the power of some of the technologies they're seeing coming. I mean, AI itself is becoming a driver right across the board as they're seeing that you can't You can't run AI against data that you don't have. And the networks that are not working with us really only have information about what they bought and what they build. And they're kind of blind on what's in between. So that's where our platform comes in. It gives them that end-to-end real-time data about where their stuff is, when it's going to expire, utilization rates, etc., which is massive in terms of being able to then and so on. So we're not seeing, and we keep watching for it, like there's so much political noise, you keep sort of watching, is any of this affecting this? It isn't happening. Our sales team is slammed with activity right now, with lots of these networks wanting to move ahead.

And how much your staff booking this quarter is kind of partner-led, and how should we think about your PS backlog recovery in the context of a growing partnership ecosystem?

Yeah, I mean, you know, our partnership ecosystem is growing. At the same time, some of the deals we're now signing, you know, even with a partner involved, still require a fair bit of work from us. We also believe we're shortly going to see more and more work coming out of the implementation of Texas IQ. We've seen a little bit of that now. We see that team continuing to grow. So, we're not really expecting... Professional Services overall is, I mean, last year was quite robust in Professional Services, and we're kind of anticipating it's not going to move that much. Timing-wise, we did have, you know, as you know, our bookings in the first sort of the first three quarters of last year were actually quite slow, and which was, I mean, interestingly, it was almost identical to what happened the first year of Trump's first term in power was that, you know, the networks were quite distracted and worried about what was coming in. Thank you very much. We expect it's going to, you know, fill the pro services backlog back up. You know, as it is, pro services is still quite busy. It's running fine right now. But we do need to fill that backlog back up. But with some of these statements of work that are in the fight to get signed in the very near term, we expect that to catch up very soon.

Thanks for the call. I'll pop the line. Thank you.

Thank you. Once again, Dr. Starr, I want to ask a question. Your next question comes from the line of Suzanne Sukumar from Civil. Please go ahead.

Hey, good morning, guys. This is SA speaking on behalf of Suzanne. Congrats on the quarter. And for my first question, I just want to double-click on the U.S. healthcare backdrop, you know, how are demand signals and sales cycles progressing? And it looks like expansions were strong in the quarter, but Maybe on new logos, just given all the Affordable Care Act and reimbursement pressure, how do you see new logos for the rest of the year?

It's always hard to predict until it happens. We have a number of situations where they've already told us, okay, you're the selected vendor, we now want to move the contract. Thank you for having me. So we're, you know, we have a very active new account pipeline. We're confident we're going to have a pretty strong bucking year from the standpoint of new accounts. But the timing is always the killer on this stuff. So we continue to push ahead. That's where what I mentioned earlier about ROI studies that, you know, these ROI studies really help because what it ends up highlighting to all the parties involved is that there's so much money to be saved by implementing these platforms that You know, in a sense, if you take six months to get through committee, you've potentially wasted $20 million. So it increases the pressure to get these things through committee, but there's still a lot of committees. So I guess I would say, I was going to say cautiously optimistic, but we're actually way beyond cautiously optimistic. We are optimistic about this year's new account pipeline. It looks pretty exciting for us.

Sounds good. Thank you. For my second question, maybe to kind of dive into Texas IQ, I'm wondering how it is affecting pricing and is it becoming more central to conversations across the business and just anything incremental on the AI front?

Yeah, I mean, that platform continues to move at and many more. For point of use, for instance, we have a dashboard that shows you your current situation, what you should be worried about, any pending shortages, specifically any pending shortages that may affect scheduled surgeries. That's all there. We've got a chat interface that allows a head of surgery or a charge nurse or whatever to just literally chat with the data. Okay, what's going on? What should I be concerned about? Do I have shortages? Hey, do those shortages have any substitutes we could use? Where are those substitutes in the network? You know, etc. But we keep coming up with more. I mean, we've got a project underway right now to roll out a dramatically enhanced labor management capability on top of our WMS. and so on. So, Once you have that data, which we have, it's been sitting there for a long time, and continues to accumulate, and then you add this AI engine on top of it, the sky's the limit. As fast as we can imagine things, we can build them. We are very happy with how that's coming along, and we are not seeing anyone buy our latest platform without buying IQ. Even anyone migrating up from previous releases is just... adding in IQ as soon as they get to a release that supports IQ.

Okay, perfect. Perfect. And for my last question, I wanted to touch on the distribution, general distribution segment. Can you provide an update on what's happening in life sciences and broader general distribution and how much is the reported growth being masked by the legacy trend on order dynamics? I know that was more of a I think there's some expected runoff for this year as well.

Sure. You want to take that one, Mark?

Yeah. Yeah. Maybe I'll start with the, you know, sort of the legacy term thing. We provided in our MDMA kind of a disaggregation of elite SAS ARR and total SAS ARR. So, the difference between those two numbers is going to be the, you know, that retail OD. ARR number. So you can see the decline that's happened there. You can see the decline, you know, quarter on quarter. And you can see the decline, you know, from last year. And as I mentioned in the commentary, there was a disproportionate amount of churn in this quarter that came from that, you know, non-core elite platform. We think that'll probably moderate out a little bit now. You can try to read the tea leaves a little bit for the rest of this fiscal year. It'll continue to sort of grind out, but beyond this fiscal year, it'll come down a little bit in the current fiscal year. And still, we think we end up being disproportionately heavy on the overall attrition number. But the numbers are getting so small now. On that business, a year ago, that was closer to just under 10% of the ARR. Now it's less than 5%. And by the end of this year, it's going to be very much down in the very low single digits as a percentage of the business. So after this year, the number's going to sort of stop. In a way, it's going to And then your other question, I think, was about life sciences. Can you just repeat that question, if you don't mind?

Yeah, just more of a comment on life sciences, the general distribution segment.

Yeah. I mean, that continues to be an important part. Our healthcare provider stuff is obviously the big, you know, the big piece of the opportunity set there for us. But we continue to see really interesting, you know, really interesting activities and including wind activity in the life sciences area. So it's one that we're, you know, we're quite keen on. You know, there's new stuff popping into the pipeline there, you know, pretty much every month. In some ways, it's a bit of a less sort of tap market for us. It's one that we're, in a way, it's sort of broader and a little bit harder to get your arms all the way around. The healthcare provider stuff is a bit more, you know, discreet. It's a bit more of a discreet market, so we're super honed in on that. You know, I think over time, we'll sort of start looking at the broader TAM opportunity in that life sciences, you know, non-healthcare provider life sciences world and and fire some more guns in that direction. But right now, the key focus is really that specific TAM or health providers, I would say, as a primary base expansion and new logo driver.

Okay, great. Thanks, guys, and I'll pass the mic.

Thank you. And there are no further questions at this time. I will now hand the call back to Mr. Peter Brereton for any closing remarks.

Great. Well, thank you, everyone, for joining us for the call. We appreciate your time. And as always, if you have additional questions, please don't hesitate to reach out to Mark or I, and we will look forward to chatting to you around the end of November with our Q2 results. Thanks, and have a great day.

This concludes today's call. Thank you for participating in the August Connect.