Good morning, everyone. Thank you for standing by, and welcome to Dialogue Health Technologies web conference to discuss results for the fourth quarter of 2022. Listeners are reminded that portions of today's call may contain forward-looking statements that reflect current views with respect to future events. Any such statements are subjects to risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. For more information on Dialogue's risks and uncertainties related to these forward-looking statements, please refer to the company's MD&A and annual information form dated March 21, 2023, both of which are posted on SEDAR. Today's webinar will be hosted by Cherif Habib, Chief Executive Officer, and by Navaid Mansuri, Chief Financial Officer. To ask a question, please raise your hand using the menu items in your Zoom interface. As a reminder, to provide an opportunity for everyone to participate, we ask that you please limit yourself to one question and one follow-up. You may rejoin the queue should you have any additional points to address. Lastly, we ask that you please enable your cameras only when you are called upon for your turn. Before we jump into Q&A, to better frame the session, Cherif and Navaid will make a brief statement on our performance this past quarter. Cherif, please go ahead. Merci, Jean-Marc. Bonjour à tous. Thank you for joining us today. I'd like to first say a few words about the changes to our call format and to the way we publish our quarterly information. At the same time as our press release that was issued yesterday, we also published our management commentary on the quarter and related investor presentation. We're doing this to provide analysts with more detail and more time to process our results before the quarterly call. Although I know that some of you will certainly miss watching Navaid and I read a script for 30 minutes, this new approach should allow us to maximize the time spent answering questions. We will continue iterating on the format to make sure we maximize the value of these calls. Please don't be shy to give us feedback. With that said, here are my top three takeaways from the quarter. Number one, our core business, the Integrated Health Platform, or IHP, is growing quickly with ARR growth and revenue growth of 44% and 47% year-over-year, respectively. Second, we continued to see solid win rates in competitive situations and added several blue chip enterprise customers to our primary care and EAP services. Third, we exceeded CAD 100 million in overall ARR, an important milestone that demonstrates our unrelenting focus on building a premium service that our members and clients appreciate. On a personal note, for my co-founders and I, who started this business from zero, seven years ago, this is an especially meaningful milestone. Navaid, would you like to add anything to this? Sure. Thank you, Cherif. Bonjour à tous. Merci d'être, merci de vous être joint à nous ce matin. Thank you all for joining us this morning. In addition to what Cherif mentioned, I would highlight the following three points from our fourth quarter financials. First, our gross margin improved by 14 percentage points year-over-year, demonstrating the benefits of our virtual delivery model and service integration. Second, we showed strong cost discipline, maintaining operating expenses stable for the third consecutive quarter. We're seeing consistent operating leverage and expect to reach break even adjusted EBITDA by the end of this year. Third, we ended the quarter with CAD 62 million in cash on the balance sheet and will require between CAD 5 million - CAD 10 million to reach our break even target, putting us in a great position to navigate uncertain market conditions. Thank you again. We'll now open the floor for questions. Merci encore. Nous pouvons maintenant passer aux questions. Thank you, Navaid. The first question comes from Doug Taylor at Canaccord Genuity. Yeah. Thank you. Good morning. I'll applaud you on the new format. Very efficient. I'll start by asking about your sales momentum. You closed the year with a strong pace of new ARR build. We're about a week away from the close of Q1 here. Can you speak to your ability to sustain that sales momentum into 2023? Yeah, absolutely. I mean, as you know, you've been following this for a while now. Q4 has always been our strongest quarter. There's several reasons for that. Q4, you know, it would not be reasonable to expect the same ARR performance in Q4 than in other quarters. We always finish the year very strong, again, for a variety of reasons that we've touched on before. Q1 is always gonna be not as strong. As you mentioned, we're eight or nine days away from the end of the quarter. It's been a good quarter. Again, not anywhere close to Q4, but I think we'll land where we were expecting to. As a maybe a follow-up question, maybe I'll ask you a little bit about M&A. You seem to be talking more constructively about the potential for further M&A, and you've gone to some lengths here to illustrate the amount of excess cash that you've got relative to what's required for your organic business. Given some of the noise we've seen created by some of the either the sale of the OHS or some of the legacy contract roll-offs you've seen with some of the other acquisitions you've made, are you approaching further M&A with any different objectives or anything else? Are you taking anything else from those previous deals into your future process? Yeah. That's a great question. Thanks, Doug. When we bought the OHS business in Germany, that was before we landed on our IHP strategy, right? At the time, we had a primary care business, we had a mental health business, and we hadn't yet zeroed in this idea of the IHP. What we realized, you know, 2 years in, is that we had a very well-functioning and very well-received IHP in Canada, and we had a, you know, somewhat disconnected business in Germany. We made the, you know, difficult decision to focus all of our efforts on the IHP. Going forward, obviously we're gonna learn from that and make sure that anything we buy will be perfectly integrated into IHP. Again, we're not an aggregator of businesses. We're really a tight integrator, not just from a financial point of view, but from a product point of view. We wanna have, you know, one app, one administration platform, and everything working seamlessly together. As we think about the future, you've mentioned our strong balance sheet. You know, we're gonna, you know, we're gonna have, you know, over CAD 55 million on our balance sheet after we end our, kind of, cash burn phase. That puts us in a really good position to strengthen our IHP when the right opportunity presents itself. We're very excited by that. We're very pleased to be in this strong position. Not everybody is fortunate to be in that position. I think we'll be very aggressive on M&A when the, when the right opportunity presents itself. Thank you. I'll pass the line. Thank you. The next question is from Scott Fletcher at CIBC. Hi, good morning. I'll echo Doug's comments on the appreciating the new format. I want to ask a question on some win rates. You mentioned in your prepared remarks that win rates, you know, were 50% overall of 65% of the enterprise segment. Can you just provide some color on how exactly you are approaching those competitive situations and what's leading to you winning, you know, 65% of deals in the larger clients? Yeah, absolutely. I think the premium positioning that we've built and the reputation we've built over the last few years is really starting to pay off. Again, the integration between our services is our main competitive differentiator. As you know, there are others on the market that have grown by acquisition, and it will take them years to properly integrate if they do it at all. This very tightly integrated approach has been a killer on the market. It is very difficult to replicate. Again, you can't just buy a bunch of businesses and hope to integrate them. It is something that you need to build by— from the ground up, and it's been, a place where we've invested a ton of energy, and resources. You know, we can say today without a doubt, that our IHP is the best on the market and our win rates clearly demonstrate that. Okay, thanks. I wanted to ask a second question about another comment in the letter that talks about new services. I know, you know, you've got some it sounds like that are, you know, you're working on at the moment. I'm more interested in sort of the difference in timeline between what it would take to develop some of those internally versus look external, which you talked about through M&A. Can you maybe sort of— I know there's different situations will be different timelines, but maybe like if you use, using iCBT as an example, like what the timeline difference would be on the build to build plan? Yeah, with pleasure. Let's take a very concrete example. We closed our Tictrac acquisition in April of 2022, and we were able to make our first sales of our wellness solution that is perfectly integrated into the rest of our stack in November of the same year. You know, more or less 6 months from closing the acquisition to having a product that is, again, perfectly integrated with the rest, running on the same platform, running on the same back end, using the same care teams. That is, I think, you know, I think six months is very quick, especially when you look at what else is being done in the market. We're really proud of that. Again, it's a testament of the our product and technical teams who have done an amazing job building this platform that is very modular and can receive, you know, the products or services we buy. You know, that's one example, iCBT, we had bought in the summer of 2021, by the end of the year in 2021, it was perfectly integrated. I would say that when we buy something, it's, you know, it's a good 2 quarters. When we build something, it really depends on the size of it. For example, in Q1, we've built new sub-services of EAP. For example, substance use. We were able to build them in one quarter internally. Of course, a bigger service like EAP took us maybe nine months. I would say like the 6 months -12 months range is how you know, that would really be the two bookends of how quickly we can integrate something that we either buy or build internally. Okay, thanks. That's really helpful. I'll pass the line. Thank you. Thank you, Scott. The next question is from David Kwan at TD Securities. Hey, guys. appreciate the format, echoing my fellow analysts' comments. On touching on, I guess, Doug's question on the M&A side, you know, looking at where the net cash position is right now and kind of another CAD 5 million-CAD 10 million gets you breakeven, like how much of that remaining balance would you be comfortable in terms of spending on acquisition? Because you've made some acquisitions that are quite small, but then some larger ones as well, like Tictrac, I think probably the largest one. Just trying to get a sense of what you guys would feel comfortable with at this point. Yeah, I mean, we would really be comfortable with a wider range. Obviously at CAD 100+ million ARR, we need to do things that will move the needle and have an impact and have scale. I think we're you know, we've learned that a very small acquisition and a bigger acquisition take almost the same amount of, kind of, time and management bandwidth. You know, that is really a learning that we've integrated in our process looking forward. I think we're really gonna be looking at bigger acquisitions. Does that mean, you know, one big or two medium ones? Like, again, it depends. It depends on the opportunities that come across the bow. Definitely we're not gonna be interested in small ones. No, I appreciate the color, Cherif. Secondly, you've made some pretty good progress, I guess, in terms of diversifying your ARR base beyond the primary care service, you know, kind of, core to your platform. Based on new customer wins, it seems like primary care is still, I think, the lead for probably a lot of these discussions with new customers, although it's nice to see the EAP also contributing quite solidly in recent quarters here. I guess, how much more runway do you have there on, kind of, the primary care side of things, in terms of greenfield opportunities, particularly in the enterprise space, this enterprise space that you target directly? You know, any thoughts you might have as it relates to, kind of, SMB and mid-market where you rely more on your channel partners? Yeah. You're absolutely right that primary care is still a very strong service. You're also very right that EAP was our fastest growing service the last couple of years, and we're really proud of how the modern EAP was received by the market. Look, we don't have very precise market data, but our internal estimates, is that there's about, in primary care, about 2/3 of Canadian companies that still don't have a primary care service. There's a lot of greenfield. We're obviously going very aggressively, after that. We've mentioned in previous calls the dynamic that in primary care, most of the times when we're signing up a client, that client did not have primary care before. That dynamic remains true at a high level, more and more, you know, just because the market is growing and there's more and more people who know this and want this service, we start having more cases where we're replacing somebody else. For example, we talked about some of the very large wins we had in Q4. Actually, you know, either the biggest or the second biggest was a take away from one of our competitors in primary care. That's something we're very pleased with. In EAP, I mean, EAP has an almost 100% penetration in the market across SMB, mid-market, and enterprise. Almost every single company in Canada has an EAP. you know, essentially 99% of our new EAP cases are a rip and replace from one of our competitors. You can guess who these are given the market positions. I appreciate it. Thank you very much for the color, guys. Okay. Thank you, David. The next question is from Douglas Miehm at RBC Capital Markets. Good morning. Cherif, my question has more to do with patient access, and we've seen some of your competitors get into a little trouble recently with respect to out-of-pocket pay for access. My question has more to do with access. I know you're a B2B model as opposed to B2C, but some could argue that, you know, one step removed, you are improving access relative to other people or patients that may not have, you know, work for a certain company or don't work for a company. Can you maybe give us your thoughts on that situation? Yeah, absolutely, Doug. Thanks for the question. In Q4, you know, October and November of last year, we saw a pretty historic situation in the healthcare system. You know, healthcare professionals calls it the trifecta of pulmonary diseases, so that's RSV, COVID, and the flu season kind of all hitting at the same time. What that did is, again, a historic amount of demand on the system, and there was a lot of talk in the media about, you know, the healthcare system collapsing, et cetera. I mean, I think it's a bit of an exaggeration, but that was, you know, very often in the news. What that did is it attracted a lot of political and media attention at the end of last year and the beginning of this year. The spirit of the Canada Health Act is that no Canadian should be paying out of pocket for insured services, and we really believe in that. That's why we've always respected not only the letter, but the spirit of the law, and that's always why we stay as a B2B player. None of our members ever go in their pocket or use their credit card to pay for our services. That is an exception that has always been part of the regulation in every province. I think what gets lost a little bit in the media is, you know, people confuse different things. Again, some of our competitors who are in the B2C space got a little heat. You'll notice, and we're very proud of the fact that we're never named in any of these reports. We have very good relationships with the regulators, especially on the provincial level. We're only starting kind of our relationship at the federal level. They've only kind of started paying attention the last few weeks, but it's a relationship that's starting. Again, very, very positive, and we're very, very confident in our regulatory positioning. We think we're a complement to the healthcare system. By not antagonizing them and always positioning ourselves as a friendly party who's trying to help access overall, we've been very well received. I don't know if this, you know, hopefully this answers your question, but we've been working a lot with the regulators to make sure that we're continuing being constructive and helpful to the overall situation. No, that's a really great response. Second question, just for you, Navaid, as it relates to the sizeable Optima customer that you described in your release, that's going up for a request for proposal this year. Am I correct in estimating based on just some simple math that the size of this customer is around CAD 5 million? I guess a corollary to that, organic growth for primary mental health and wellness was what in the quarter? We didn't see it in your disclosures. Thanks. That's it for me. Thanks, Doug. I mean, we provided updates on the major remaining customers at Optima. It is a shrinking portion of Dialogue's total ARR. You're right. I mean, we have a couple of large customers left. One, we have a relationship on the virtual side, and in the process of migrating them. The other customer remains at Optima. They're under contract until the end of 2023. As we've talked about before, they are planning an RFP this year that will allow them to evaluate all options. That includes our virtual EAP, and we will be asked to participate. The size of the customer, we haven't specifically disclosed what the size of that customer is. I think the number you have is a little bit on the high side, but in the ballpark. I do wanna point out that, I mean, Optima, as you know, is an already lower margin business. That's why we're migrating them to the virtual platform with much higher margins. This customer particularly also is within that same range. I mean, obviously we're gonna try our best and to migrate them over to virtual EAP. In a worst case, the impact on our profitability because of the low margin will be, if we were to lose it, would be minimal. Then there's also a third portion of Optima's ARR, which is rehab and disability management services, and we're currently working on also digitizing those services to further strengthen our IHP. Great. Thank you. Thank you, Doug. The next question is from Endri Leno at National Bank Financial. Hey, good morning. Thanks for taking my questions. Yes, the new format is great as well, to echo everybody else. A couple of questions for me. I just wanna focus a little bit more in terms of the contract that you're bidding on, and if you can talk a little bit, if you've seen any changes in the bidding universe in Canada. I mean, has the size of the RFPs changed, the size or the makeup of companies' enterprise values or the entities that may bring these RFPs to the market? Any kind of color you can provide there. I wouldn't say that we've seen any notable trends in the last few quarters. I mean, these are. Again, we look at the universe of our TAM as the SMB as an SMB segment. This is very well served by our partners, whether that's Sun Life or Canada Life, that have specific products for these folks, as well as all of the broker community that serves the SMB market. Mid-market and enterprise, again, this is where we really focus our direct efforts. We haven't seen much of a change. I would say that, you know, obviously, as our profile is raised in the market and as people see, the benefits of our integrated approach, you know, we're included in bigger and bigger RFPs, you know, just out of virtue of being more known in the market. I would say, nothing notable or material. Okay. No, that's great to hear. Thank you. The other one is a bit of a follow-up to an answer, you gave, Cherif, to a prior question, but is that you kind of expanded recently talks or relationship or discussions that you've had with the federal government. We've talked about this before in terms of potentially bidding for provincial or federal, contracts. I mean, is there anything new you can disclose there? If you can't disclose, to what extent, what kind of discussions or the nature of the discussions you're having with the federal government and any potential there? I think it's important to distinguish discussions like procurement discussions. For example, if there's an arm of, you know, a public sector organization or an arm of the government that is looking to provide EAP or mental health services to their employees. Again, this, there's really no change. We participate in these in these RFPs. You know, it's an area where we haven't put a lot of focus because traditionally these RFPs have been or these contracts, you know, go to the lowest bidder, very narrow margins. You know, the overall profitability, I mean, you know, nobody really makes money on these contracts. You know, from time to time, there's an opportunity where we feel the unit economics make sense, but I would say in the majority of the cases, that's not the case. Then the second part of that question or conversation is relationships with the government on a regulatory point of view. This is again pushing our point of view, showing how we can help the system, showing that every consult that happens on Dialogue saves money to the provincial payers and ultimately to the federal government indirectly. Again, these conversations are very positive. We're very well-received. These are things that take a long time, but again, we're very encouraged by this conversation. I'll finally say that in Quebec, particularly, there are several state enterprises, I mean, that are clients of ours. These are parapublic or public companies that use either our primary care or EAP or mental health or a combination of the three. We've been very encouraged with that. Again, if our relationship with the regulators was not positive, they would not be working with us. I think it's just a testament of that great relationship. Okay. That's great to hear. Thank you. I'll jump in the queue. Thanks. Thanks, Endri. The next question is from Jerome Dubreuil at Desjardins Securities. Thanks for taking my questions. First question I have is, you know, you continue to guide the street to you reaching EBITDA positive and free cash flow breakeven to at some point later this year. Is there a shift in strategy we should anticipate when you reach that milestone? Obviously, the easy thing to talk about is M&A, but you've already discussed that a bit. Is there other changes that might be coming once you reach that milestone? You wanna start on that? Yeah. I mean, Jerome, you're right. You're absolutely right. I mean, achieving EBITDA positive by the end of this year has been our goal since we IPO'd a couple of years ago, and we're proud to say that we're on track for that. I think as you know, our strategies, our growth strategy is built on three pillars. One is continuing to add new customers in our existing markets. We've talked about the potential for growth in Canada, and that's gonna remain our primary focus, and growing in our existing markets, including the U.K.. That's our first growth pillar. The second one is continuing to build on our IHP, whether it's adding features or capabilities to our existing services or adding new complementary services to our IHP based on feedback from our customers and our insurance partners. That's the second pillar. The third one is, over time, once we're EBITDA cash flow positive, is also to look at international expansion. Our first step would be to launch our tech-enabled services, such as wellness and iCBT, in markets like the U.K., and then eventually add to those and potentially add human-led services in those markets as well. Our growth pillars remain the same. I think, achieving EBITDA positive and cash flow positive will give us a bit more flexibility in terms of accelerating some of those, you know, some of those growth pillars. our overall strategy will not change, but it'll give us a lot more flexibility to execute more effectively in some of these areas. Okay, great. The second question I have is, well, congrats for reaching the 100 millionaire milestone. Sometimes RFPs are only available for companies of a certain size, depending on the industries. Is this something that matters in your industry? Is there a demand or request from some of your potential clients that you need to be a certain size in order to be eligible, or is it, that's not something you've seen so far? No, that is not leadership in the market. Again, if you wanted to go bigger than that, there's not many other options. I would say that that has not stopped us from accessing any parts of the market. Fair enough. Thank you. Thanks, Jerome. Thanks, Jerome. Thank you, Jerome. The next question is from Daniel Rosenberg at Paradigm Capital. Morning, Cherif and Navaid. My first question was around competition. You had touched on some of the challenges that some competition is seeing, and we've seen some smaller companies, you know, have a tough time in this type of market. At the same time, we've seen some, you know, and I'm speaking to the U.S., some large cap, you know, mega tech companies make a push into the healthcare space. I was wondering if you could just characterize the competitive environment as you see it, whether there are more opportunities that you're seeing, given the dynamic, or is it the same as it ever was? Morning, Daniel. I would say there hasn't been a massive shift in the last couple of quarters. The Canadian market remains very difficult to access for U.S. players in the healthcare space. You know, I think several have tried. You know, unfortunately for them, unfortunately for us, have not had much traction. And that is, you know, the healthcare is such a complex and local industry that, you know, even within Canada, you know, you have 13 different jurisdictions, 13 different regulatory environment, et cetera. It's very difficult for folks from outside of the country to make a meaningful change here. Obviously, we're not, you know, sleeping on the switch, we're remaining vigilant, we remain very competitive. I think You know, the forces in Canada are the ones that we pay more attention to. Obviously, there's a big consolidation push. You know, again, that is I think an opportunity and a threat for us. It's an opportunity because, you know, smaller companies that are subscale, I think they see that there's limited potential to compete with us and the other big player. I think it will make some M&A discussions a little bit easier. This is a market that's consolidating, and it's gonna be, you know, a two or three-player market in the next few years as we see it evolving. Thanks for that. Then just switching gears, you had mentioned in the growth strategy, looking at products, developing services that are, you know, complementary. I was wondering if you could just highlight the areas, you know, that are of interest. What is most exciting to you, whether it be data, or whatever else you have in mind. Sure. As I mentioned to a previous question in Q1, we've really focused on two service extensions to our EAP product. One of them is substance abuse counseling. This is something that our customers have been asking for quite a bit. The other one is a workplace mental health referral program. These are not new services per se. These are kind of improvements or an evolution of our EAP solution. This is really what we're shipping at the end of Q1. Very excited about that, getting really good customer feedback. Return to work is another area that we've highlighted in the past and where we're gonna be investing quite a bit going forward. The pull from the market for return to work solutions like disability management and rehab is very strong. We'll focus on those going forward. Great. Thanks for taking my questions. Thank you. Thanks, Daniel. The next question is from Nick Agostino at Laurentian Bank Securities. There we go. Morning, guys. Just a couple quick questions for me. Just recognizing, of course, you had a low churn in the quarter, so always good to see. Just wondering, with this higher interest rate environment that we're operating in, lots of talk of a potential recession and obviously fears of higher unemployment, have you guys gauged the pulse of your clients and your member base to see what their thoughts are, when it comes to how they would treat the services that you guys provide in that environment? More importantly, have you stress tested your member base to see, in a worst case scenario, under a recession, how much risk there would be in your member base, if any, at all? Good morning, Nick. Thanks for the question. This is obviously, you know, something that keeps us up at night and something that we focus on a lot. Look, the reality is, unemployment is at an all-time low. You know, jobs numbers come out on a regular basis, and they're always quite positive. The economy so far has been very resilient. We are seeing targeted, obviously reductions in force, you know, mainly focused in technology, but it's such a small portion of our overall member base that it really doesn't move the needle. Look, so far we haven't seen any material changes in the demand environment. We haven't seen any RFPs or sales processes that were canceled or postponed. We haven't really seen anything concrete. Again, sentiment matters, and something that we're paying very close attention to. There's nothing concrete that we've seen so far, but we're gonna keep our eyes on it and update you if ever that materializes. Okay. Appreciate that. My, my second question. Obviously here in Ontario, lots of talk of privatization of some services, starting with imaging. Are you having any dialogue with governments as to services that maybe you think should be privatized that would be beneficial to your business and would be a catalyst for your business? No, not really. I mean, we're really focusing on the services that we provide today. We feel that by being focused on these small handful of services and doing them really, really well, and not getting too caught up in the noise outside is how we continue to grow. We've really focused our conversations with the regulators on ensuring that our position in the market remains safe and grow. We're not really looking at other kind of peripheral services that could be privatized. Okay. Appreciate that. Thank you. Good. There are no more questions. That's all we have for today. As a reminder, you can reach us at any time by email at investorsatdialogue.co. It will be our pleasure to answer any questions you may have. Before we end, I'm just gonna pass it back off to Navaid. We have a clarification for one of Doug Miehm's questions. Yeah, sorry, Doug, I didn't answer the second part of your question. You had asked about organic growth for our primary care mental health and wellness segment. Organic growth on ARR was 33%. If you're looking for recognized revenue, it's probably within that same range, but we can follow up with you directly on that. Thanks, Navaid. Cherif, the floor is yours again to conclude the call. Merci, Jean-Marc. Thanks, everybody. Always a pleasure to speak to you. We will see you in a few weeks for our Q1 results. Have a great day. Thank you.