Good morning, everybody, and thank you for joining us today for the Nitro quarterly trading update. Apologies for the delay in the start time. We've been trying to resolve some internet broadband issues with Sam. Unfortunately, he's had to dial in, so we wouldn't keep you waiting any longer. So we've got Sam on phone and Rohit Kothari on video for the Q&A. We will commence with a short presentation that Sam will walk you through, which is on the screen. Afterwards, there'll be an opportunity for Q&A. Please put your questions in the Q&A box, not in the chat. I'll be referencing the Q&A box when I moderate that session. Sam, if I can hand the mic over to you to walk us through the slide deck, please. Thank you very much, Ronn, and apologies again to all for the technical issues so far. Hopefully, this line holds up okay. Look, good morning or good afternoon or good evening, wherever you are, and welcome to our trading update for Q2 2022. I'm Sam Chandler, the Co-founder and CEO here at Nitro. Ana Sirbu, our CFO, who usually would join me, is not with me today since she just welcomed her second daughter into the world two days ago. We wish Ana and her expanding family the very best. She'll be back with us soon. We have a short presentation for you today. We're gonna provide an update on the business, including our planned go-to-market restructure and cost savings initiatives. We're gonna provide more information about our revised guidance, and then we'll go to Q&A. Just a reminder, as always, that all the figures that we're presenting are in U.S. dollars. We'll start today with some first half highlights. We saw strong growth in the half with continued high revenue and ARR growth and record cash receipts for the period. ARR was up 52% year-on-year, 32% excluding Connective. Revenue was up 32% year-on-year or 22% excluding Connective. We saw record Q2 cash receipts of $16.2 billion, up 43% from Q2 2021. Given those strong cash flows and the balance sheet that we started the quarter with, Nitro is in a robust financial position as we enter the second half. We have over $35 million in cash and no debt. Moving to slide 3 now, I'd like to talk about ARR growth in the half. We finished the half at $51.5 million in ARR. That's up from $46.2 million at December 31. We added $5.3 million. While total ARR added in the period was roughly the same as the first half of 2021, new and expansion ARR added was actually slightly higher, but the contribution from flips reduced substantially. That's shown here in orange on the chart on the right. That is because our transition to subscription in our business sales channel was effectively completed in the second half of last year. There'll be very little flip contribution to ARR in 2022. That is maintenance and support contracts that are converting to subscription licensing. We had expected a greater step up in ARR added in the half, and so we'll talk about why we didn't see that. In addition to the cessation of the material, previously material flips contribution, there were two other big factors at play. The first was the macro environment. As we've seen on a couple of other occasions during the pandemic and in recent times of market volatility, some customers are pausing or deferring their procurement decisions. In very late Q2, we saw between about a third and a half of our sales pipeline push into the second half. These are highly unusual pushed pipeline numbers. We really haven't ever seen those sorts of pipeline dynamics before, except on two occasions, both of which were in the last two years or so. The first was in March 2020 when the pandemic emerged and the second was actually in December of last year, when the Omicron variant appeared. I think a key point here is that even though our finish was not what we wanted it to be, almost all that pipeline still remains in play. The expected close dates have changed. That hurts in the short term, but it doesn't change our long-term growth thematic or expectations. Secondly, though, in terms of the things that we can control, we could have done a better job in go-to-market in the half. I think added ARR from expansion grew very nicely, but added ARR from new customers did not. This was in part due to challenges with enabling the sales organization sell Connective and the added complexity in both the product offering and the sales cycle and the time and attention that we spent ramping up on the new product lines and integrating the Connective team, which did have an impact on our core PDF Productivity business. That was really just in the last couple of weeks of the quarter when pipeline was slipping. It also became clear in Q2, though, that the structure and the processes and the systems of our go-to-market organization would need to change to be more effective and more successful in our new multi-product world. We'll talk more about those changes today, which are already being implemented. But finally, before we move on to the next slide and talk a bit more about revenue, I do want to call out our gross and net retention rates, which remain in line with the prior period and strong at 94% and 113% respectively. I also wanna point out, as you can see, that our subscription revenue in the half with 72% of the total, that's up from 63% in the first half of 2021. Moving on now to slide 4 and talking about total revenue. In terms of revenue performance, we had a strong half that actually exceeded the expectations of our internal plan for both subscription and perpetual revenue. While a transition to a subscription business model does reduce the total revenue growth for a period, we're starting to see the dominance of the subscription business increasingly in recent periods, and the associated subscription revenue driving the total revenue number and the overall growth rate. Over the three-year period of the first half performance, including Connective, we achieved a 31% compound annual growth rate or CAGR, and that was 22% excluding Connective. Before we get into more details about the plan for the second half and our revised revenue guidance, I do wanna call out some of the Q2 big logo wins. We had a significant number of very large customers expanding and renewing with us in the quarter and some excellent new logo wins in addition to some Connective cross-sell wins. Connective is now known as Nitro Sign Premium, but we are starting to see it create opportunities and indeed close deals in some of our largest customers. In the U.S., we celebrated wins at, you know, iconic names like GE, which is already one of our largest, very largest accounts, and Time Warner Cable, customers like Silicon Valley Bank, Grant Thornton, and even facilities giant ABM. In Europe, we saw a number of deals at household names like Nestlé or Novartis and other big wins at Thales and Julius Baer, Festo, OMV and many more. In Australia, it was wonderful to see expansions or renewals at WorkCover Queensland and UGL. We actually had too many recognizable logos to feature on this slide for Q2, and I think it's proof that many of the world's largest companies rely on Nitro for document productivity and workflow. Look, let's move on to the GTM restructuring. This is an important slide and I wanna talk about what we're doing here and kind of the why. As I mentioned, it became clear during the half, specifically during Q2, as we really began to integrate and sell Connective, while at the same time the macro environment changed substantially, that we would need to make changes to our go-to-market model to be more effective, and efficient. We had been investing significantly coming into this year, and our original plan for 2022 was to continue with that high level of investment. However, you know, obviously the world changed, and given those changes in the macro and market environments, and some of the sales challenges that presented themselves, you know, to us at the end of Q2, and particularly with those pipeline dynamics that we saw in June, the appropriate thing to do was to change tack. To that end, we've begun executing a restructure of the go-to-market model that really focuses on two goals, effectiveness and efficiency. Effectiveness is all about driving improved sales performance, and efficiency is about driving better go-to-market unit economics that really is gonna help us accelerate our return to cash flow breakeven. For effectiveness, we've begun rolling out a number of things that are designed to simplify the way we segment our customer base, for example, or prospect to new customers and manage the sale of PDF Productivity and eSigning solutions side by side. These initiatives will better align the sales, marketing, customer success, and channel organizations in our new multi-product world and drive more performance from our programs for acquiring and retaining and expanding customers. There's a strong focus there, and there's also a very strong focus on sales rep enablement specifically, which did take a bit longer, you know, in the half than we anticipated. For efficiency, the goal here is very clear. It's to do more with less. With a lot of cost structure and a more optimized organizational design, we can significantly improve key productivity and efficiency metrics like CAC or customer acquisition cost and payback period. We have reduced the size of our go-to-market organization. We have also wound back our hiring plan. We have simplified the overall organizational structure, and we've created a number of new processes and systems for opportunity routing and customer account management and more. You know, all these changes, including a very sharp focus on unit economics discipline, will drive efficiency improvements in the company's overall financial profile, which is all about getting to cash flow breakeven, you know, as fast as practicable while maintaining good overall levels of growth. On this next slide here, if we move forward, you can see our new simplified sales segmentation model at a high level. This hopefully helps to explain what we're doing a little better. The model really reduces complexity, first and foremost, and ensures that we can effectively and efficiently sell both PDF Productivity and eSigning to smaller and larger customers with the appropriate cost structure to align with expected deal sizes and customer lifetime values. We are reducing the cost associated with acquiring and supporting customers through pretty thoughtful revised approaches to how we prospect and do expansions and renewals and the cross-sell motion and more. In this new multi-product world and one where in a macro world where efficient growth is paramount, this is the appropriate organizational model supported by the appropriate systems and programs. It's really important to note though that while we're taking some cost out, we're not making wholesale changes to our approach. Rather, we're just building on the specialized sales team model that is sometimes referred to as hunter-farmer that we implemented last year. We're keeping what's working and we're evolving or correcting what's not, especially now that we have some experience selling the Connective products alongside our core offering. Of course, we're kind of adapting our approach here to the changed macro environment. It's really all about simplification and optimization rather than, you know, substantial change. In total, we've reduced headcount in the GTM org by about 13% or 14%. Overall headcount as part of these broader cost reductions that we're talking about today is about 8% or 9%, you know, total headcount. We'll talk a little bit more about that in a moment. Moving on to some detail on the cost savings initiatives. In terms of total cost savings, incremental to the reductions outlined in our April market update, we have about $5 million of additional savings that we delivered in the second half. Please note that is just the second half 2022 number. That is not the annualized number for those savings, which is closer to double that. This incorporates the GTM savings that we just talked about, as well as savings in product and engineering. We do not have any headcount reductions in product engineering, but we have scaled back our hiring plans, and it includes reductions in G&A, where we're focused on both headcount and operating costs. These combined reductions provide us with an accelerated and indeed sort of lower risk path to cash flow breakeven next year, and a much more efficient financial profile overall. Finally, before we talk to guidance, I do wanna provide a quick update on Connective. We'll talk more about the acquisition and the product roadmap and other things more fully at the half year results. Given that the acquisition is now about two quarters old, there are a few key updates for today. The first is that the team is now fully integrated into the Nitro organization. Every Connectivian is now a Nitro. The harmonization project is complete. All Connective employees now have Nitro contracts and a part of the Nitro organization. Secondly, from a product point of view, an important development during the half was that we implemented local data residency support for the U.S. and Australian markets. That's important for high-trust signing use cases where data sovereignty is important. That's particularly the case in highly regulated industries, but also in government. We already had excellent feedback from customers and prospects and our frontline teams on those releases. They were some really big important releases for the half. It really speaks to rather the global opportunity for Connective. Indeed, we are creating opportunities and selling the product globally already. Indeed our pipeline reflects that. If you look at the current Connective opportunity pipeline, it's very well distributed in all the regions that we sell in, with no particular bias. Even though there's a strong European heritage and a proven history in Europe, the interest levels are just as high in the U.S. and Australia and other places. A good start there. A third thing I wanna talk about with Connective is that we've now completed most of our key sales enablement activities, and these did take longer than we anticipated, but we are pleased now with the general level of knowledge and enablement within the team as we move through Q3. It did take longer, as I said, and that's been a factor indeed in our rev performance year to date. We are pretty happy with where the team is at as of now. The fourth thing here is that even though we are reducing our synergy revenue guidance for this year, and that really, you know, is a prime factor of our slower start on enablement and readiness and the broader macro environment than anything else. We did actually have a lot of success creating cross-sell opportunities. The pipeline's been building. We've created over 250 Connective cross-sell opportunities in the first half, representing millions of dollars of pipeline. Customer interest, you know, there is high, and actually most of those 250 opportunities and indeed most of that pipeline was created just in the four months from kind of March to June. It's still relatively early days, and we need to prove that we can close that pipeline. The product itself has been proven by Connective and we are improving our sales effectiveness, you know, every month, every quarter. You know, even though it's been a slower start, we believe very strongly in the long-term opportunity. Finally, today we'll talk about guidance. We wanna cover these updates and then we'll go to Q&A. The summary of changes is basically as follows. First of all, we are reducing our 2022 ARR guidance from $64 million-$68 million to $57 million-$60 million. Taking a cautious outlook there, just given what we're seeing in the macro, and some of that unpredictability. We're maintaining our 2022 revenue guidance of $65 million-$69 million. That revenue guidance is unchanged. Revenue performance, as I said earlier, has been ahead of our expectations year to date. We are improving our 2022 operating EBITDA loss guidance from $15 million-$18 million, which was already an upgrade on our original 2022 guidance, to $10 million-$13 million. For a little bit more detail on some of those things. In terms of the ARR guidance, the primary drivers of the revised guidance, you know, including the, you know, the slower start to the year, particularly with Connective revenue. It is indeed the smaller go-to-market organization that we have now with less carried quota. We do have roughly $5 million reduction in carried quota in the year, for example, with the headcount reductions, including quota-carrying reps in go-to-market. The macro environment really is a key factor also. Given the pipeline slippage that we saw in Q2 and the prospect of continued market volatility and a possible global recession, we're taking a more cautious approach to the full year forecast. We just think that is prudent. Obviously resetting on the cost line reflects that as well. You know, because of the slower Connective start and with consideration for the fact that our go-to-market restructure, you know, will take a few months to fully implement, we're reducing our expectations for the Connective synergies to $1 million from $2.5 million. On the cost savings in the bottom line, as I've said, we are accelerating our return to cash flow breakeven, and that is the financial profile that Nitro has been in for much of its life, apart from the kind of heavier investment periods. The go-to-market restructure and the broader cost savings here will deliver a significantly reduced operating EBITDA loss and a financial profile that is better suited to this economic environment. In closing, we remain passionate believers in both the scale of the opportunity here in the document productivity and workflow market as well as in the business model of enterprise software. While there's a lot of uncertainty in the world today, our confidence in the potential of the company and indeed of this product space is unchanged. We think we have a revised plan here for the second half. It's a strong response to the conditions that we're facing and we really thank you all for your support as shareholders along this journey, both to date and through the future. With that, we'll open up for the Q&A. Thanks, Sam. I know there's a few questions in the Q&A box, so we'll try and cover as many as we can within the time allotted. There's a couple of questions from James Bales. Are the changes in the sales organization in any way related to the enterprise sales changes made in the second half of 2021? Is the shortfall on Connective synergies a sales org issue? Was the last part of that question, Ronn, were the words sales org issue? Yes. Yes. Gotcha. So I would say that what we saw in the first half doesn't have a lot to do with what we saw in the second half of last year. Although the dynamics are similar in terms of we saw a little bit of slippage, you know, a large amount of slippage in December last year than we would have expected from the pipeline that we had. We saw that same dynamic at play, but on a larger scale, in June. I mentioned earlier that, you know, we saw kind of between a third and a half of pipeline push. As I said, that's the pipeline for the most part remains open. It's just an unusual dynamic and it does really indicate that, you know, procurement dynamics are being affected by, you know, something other than the competitive environment that we're in, or the way that we're selling, because our win rates have been pretty constant. It's really been just a matter of the deals being delayed or deferred. We did have some challenges with our U.S. North American team in late last year. You know, we've still been rebuilding that team. You know, by contrast, our EMEA performance, or Europe, Middle East and Africa performance, remains pretty standout. The U.S. organization continues to sort of rebuild and develop. It's a kind of a minor factor. The biggest issue really, you know, in finishing the first half was really the pipeline shifts and pushes. We would've liked to have more pipeline. We always would like to have more pipeline. We certainly had enough pipeline for a very decent finish. That all kind of pushed out in the very last days of the quarter. Then from a Connective point of view, really. It's less of a sales org issue and more of a delayed start issue. It's just taken longer to actually ramp and enable reps to sell Connective and figure out how to sell PDF Productivity and eSigning side by side. It's probably a bit more of a process issue and systems issue, pricing and packaging issue, as opposed to an org issue. I think the org changes are much more focused on efficiency. Then really it's in terms of effectiveness, we have specific pipeline initiatives that we're focused on with an emphasis on new customer acquisition. It's probably enablement, you know, rather than the org itself. Most of the org changes really are about ensuring excuse me, that you are efficiently touching customer accounts. You know, in a world where there isn't as much demand or you've got pipeline slippage like we've seen, you know, you do not wanna have a heavy cost structure set against that opportunity. The revised cost structure here is much more a reflection of that. Really, the Connective synergies update is primarily on account of the slower start, but also with consideration for the macro. A question from Garry Chien. In terms of the quota-carrying sales reps that are no longer with the organization, were they lower quartile performers in the team, or have you lost some high-performing individuals as well? Yes, they were lower quartile. We have completed a headcount reduction. Yes, typically, anybody included in that set would've been a lower quartile performer where they are a quota-bearing rep. Just staying on headcount, question from Brendan Kelly: What are employee numbers now, and what are they expected to be at year-end? If we look at where we are now, and I might actually call on Rohit, who's on the line as well, who's our VP of FP&A, who might have exact numbers to hand. But, you know, before the restructure, we were, you know, about 350, so back down to about 320, you know, post the restructure. And Rohit, do you have an updated number to hand for headcount approximately at end of year? Yeah, I do. To your point, we were about $350 ending June, and we plan to end the year around $350-$360. Little bit of an uptick from where we are today. Thanks, Rohit. Couple of questions on ARR guidance. The first one from Brittany Saka. Could you explain why the ARR guidance has been reduced but overall revenue guidance remains unchanged? Obviously the revenue guidance, you know, incorporates a lot of the flow through of prior period, you know, sales performance and bookings. It's a much more stable number. It, you know, reflects both the success that you're having in period and the performance of prior periods, whereas the ARR number is just much more sensitive to the current period. You know, I think given what we saw with the slippage in June, you know, we are concerned about the broader macro picture, you know, for the at least the short to medium term. You know, we felt it was appropriate to make the ARR adjustment to be very cautious there. The revenue performance is quite easy to forecast. It's very predictable. You know, it's obviously a function of also our non-recurring revenue in the business, which is very predictable. Our online sales and the tiny fraction of business sales that are remaining that are perpetual. Given where the revenue number is derived from, it's easy to kind of forecast it with that high degree of predictability. Just a second question on ARR from Chris Gawler. You need to add approximately $5.5 million ARR in the second half of 2022 just to hit the low end of guidance, the same as first half 2022. What gives you confidence in that given pipeline slippage and the deteriorating macro environment? Well, I mean, I think the key point is the pipeline slippage. There is a lot of pipeline there that has just carried over. It hasn't disappeared. Our pipeline creation rates have been increasing. Even though we've seen dynamics that I think are predominantly kind of macro factors affecting the close rates in the quarter, that pipeline is not being closed lost. You know, it is persisting. It means longer sales cycles and kind of a bit of short-term pain. We do see the majority of those deals closing if they were indeed forecast, you know, to close with a high degree of probability, but just on a longer timeline. Yeah, there is the pipeline carrying over. The rate of pipeline, you know, creation increased particularly towards the second half of the half. Just getting some more maturity in the go-to-market model, you know, is important. You know, we really have to learn how to sell Connective. When you sell workflow solutions alongside productivity tools, there is some complexity to that, you know, in terms of managing parallel slightly different sales cycles. You know, we've sort of been navigating that, learning that, over the last quarter or two. We feel like we have our arms around it, more so than we did, you know, even a few months ago. I think, yes, there's more pipeline. Our pipeline coverage for the half is strong. You know, we're creating more of it. We've carried a bunch forward, and yeah, we have that go-to-market maturity emerging. I think the changes that we are proposing to make will make us more effective. We have some questions from Jules Cooper. I might just click on the first one with pipeline. Jules' first question: Regarding the third to half push of the pipeline, would you comment on regional experience here, please? Regionally, our push rates tend to be pretty similar. Interestingly, when it comes to pipeline dynamics, it is not really different between regions. You know, we have three regions. We have APAC, the Americas and EMEA. The pipeline characteristics are pretty similar everywhere. Creation characteristics tend to be a bit different. You know, and even by segment, those creation attributes can be different. But in terms of the way that pipeline performs across stages, and in terms of sales cycles and kind of conversion rates or close rates by stage, it's pretty similar across the three regions. There'd be no material differences to kind of call out. Second question from Jules: Can you please detail any changes to implementation and/or restructuring costs? Sorry, I missed that, Ronn. Detail any changes. Was it changes or costs to? Can you please detail any changes to implementation or restructuring costs? Uh- Can you hear me, Sam? I don't quite understand the question. Yes. Okay. We might move on to then a third- Can you hear me, Ronn? Yes. Thank you. We'll move on to another question from Jules then. Can you provide some more detail on the synergy sales opportunities closed in the quarter, and how you see that ramping across Q3 and Q4? Yeah. As we talked about, we created over 250 opportunities in the first half. Most of those in the last four months of the half. Average sales cycle time for these opportunities is looking like about 90 days. We've sort of seen sales cycles anywhere from kind of 30 days- 90 days thus far. What is interesting is, as I mentioned in my comments, is that the opportunities in that pipeline are very well distributed around the world. In fact, the pipeline and the number of opportunities maps pretty evenly to our PDF Productivity sales mix. You know, that is, we see a pretty even balance between EMEA and North America. Which is usually sort of each somewhere between 40%-50% of the total, and then kind of a 10% APAC contribution. That's kind of reflected in the pipeline right now. You know, I think there's a strong trajectory there. We're expecting kind of every rep to be creating opportunities, you know, for the Connective products actively. I think the reps really started to learn what e-signing, you know, enterprise-grade e-signing is all about over this past quarter. There's plenty more to learn. You know, the job is far from done. I think that the team has gone from a fairly limited knowledge of how you know, sophisticated workflow software gets deployed and how you sell you know, really an API-driven product to actually getting into RFPs, getting into deals. You know, almost every rep in the organization now has you know, at least one e-sign opportunity. In fact, I think we're probably at five or six opportunities per rep at this point. Right now, on average, in terms of you know, e-sign cross-sell opportunities managed per rep. You know, it's obviously up from kind of from a standing start of 0 just a few months ago. Yeah, look, I think the proof will be in the pudding in the second half. We've been closing them, yeah, in basically all the regions. Mostly smaller deals thus far, just because that would, you know, make sense given that most of these sales cycles only started in kind of you know March, April, or May, and then really closed in May or June. Typically sort of 1-3 -month sales cycles on the deals have closed so far, so naturally they're the smaller ones. There's some big opportunities in there actually, with existing Nitro customers with whom we have, you know, strong relationships as well as some net new opportunities. I'm just conscious of time and quickly, last two questions. Jules sent through, just a clarification point on his question. That Nitro had previously talked about $5 million of restructuring implementation costs associated with Connective weighted to FY 2022. Does this amount increase now? Rohit, do you wanna take that one? Yeah, sure. As of now, no. We don't expect any increases in the implementation cost of Connective. In fact, we are quite on target with getting to around that $4 million-$5 million early next year. The $5 million of integration cost still stands as of today and is built into our model. Thanks, Rohit. Last question from Shaun Burns. How long before the sales force is at full selling efficiency in terms of selling both products? That's a good question. I think it's. Look, there's a maturity, you know, life cycle or curve here. Really Q2 was the first quarter we were really selling Connective. Q1 was really just about beginning to integrate the acquisition. Of course, the acquisition closed right before Christmas, you know, last year. You know, we got the teams together early in the year, began systems integration and on all of that foundational stuff. Then rep enablement really took place over kind of February, March. Then was really, you know, only kind of April onwards that we start seeing any significant engagement with customers, you know, both new and existing. There's really a few months of experience under our belt now. I think we've gone from, you know, from 0-1 in that period, and we're probably still in first gear. I expect us to kinda get into second or third gear in this next half. I think there'll be a decent amount of maturity, particularly with the revisions to the org that we are implementing. We've learned enough already, I think to have very strong views on the changes that we're making. I think from here, the learning rate accelerates. Sam and Rohit, thank you. That concludes the Q&A session. We've gone slightly over time. Thank you everybody for participating on the briefing this morning. That now ends this session. Have a great day.