Good morning, everyone. Thank you for standing by. Welcome to Dialogue Health Technologies web conference to discuss results for the first quarter of 2023. 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 subject 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 21st March 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, and 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, Cherif will make a brief statement on our performance this past quarter, and Navaid will highlight some KPIs as well from the quarter. Cherif, please go ahead. Merci, Jean-Marc, bonjour tout le monde. Thank you for joining us today. We received a lot of really good feedback on our new call format. We will maintain it going forward. With that said, here are my top three takeaways from the past quarter. Number one, our competitive positioning remains very strong. We added more than 150 new customers during the first quarter and are taking part in many sizable RFPs. We continue to have good success in the head-to-head situations, winning nearly 60% of competitive deals overall, and 75% of those in which we participated in the enterprise segment. Number two, our net retention rate over the last 12 months was very strong at 119%. Our customers are benefiting from our IHP by adding services and extending our platform to more of their employees and members. We did experience a non-renewal from a single service customer during the first quarter. It was an isolated case related to structural changes within their organization and not due to a competitive churn. This customer, which represented less than 0.8% of our ARR, did not leave Dialogue for an offer elsewhere. We remain in contact to see how we can best support their employees in the future. Excluding this particular situation, overall churn remained at a historical low. Number three, but not least, we're tracking slightly ahead of our profitability plan. Everyone in the company is focused on making this happen. We are finding efficiency gains in every corner of the business. We're very proud of this achievement. We will invest this favorability in our growth, namely in developing more awareness of the Dialogue brand to help drive our pipeline. Navaid, would you like to add your thoughts? Sure. Thank you, Cherif. Bonjour à tous. 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 three following points from our first quarter financials. First, we're executing in line with our growth plan so far this year. Total revenue rose 26% year-over-year to CAD 24.5 million, right at the top end of our guidance range. Importantly, our core digital services maintained their strong momentum and increased 43% year-over-year. Second, we continue to move along nicely on our path to reach EBITDA breakeven by the end of the year. We recorded a gross margin improvement of more than 16% points year-over-year. We clearly see the benefits of scale as we now have three services with at least CAD 15 million of ARR. Third, we ended the quarter with just under CAD 57 million in cash on the balance sheet. We continue to expect a cash burn of CAD 5 million-CAD 10 million for the full year, which implies that our use of cash will be more aligned with adjusted EBITDA throughout the remainder of the year and benefit from a positive EBITDA fourth quarter. As we reach our profitability target, we expect to end the year with more than CAD 50 million in cash and short-term investments, putting us in a solid position to advance our strategy further. 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 Andrew Lenot at National Bank Financial. Good morning. Thanks for taking my questions. Congrats on the quarter and on the progress that you're making. The first question I have is that on your prepared remarks that were posted online, you mentioned a couple of EBITDA margin targets, 15%-20% the next five years, and then closer to 25%. I was wondering if you can talk a little bit about those. What assumptions are you using out there in terms of the revenue growth and expense growth to get to that margin? Thanks, Andrew. I'll start. In terms of the assumptions we're making, we're projecting sort of revenue growing at a CAGR of about 20% over the next five years. The range that we had put out is through 2027. In terms of gross margin, we expect modest improvements. We have 57.4% for this quarter. We expect that to grow incrementally to about 60%, you know, in that time period, so in 5 years. On the OpEx front, we forecast relatively stable OpEx as our large investments were made early in our growth. We do have a couple of areas like our service operations, which is our practitioner team and the administrative team that manages those, as well as our customer success function are two areas that should continue to grow at a higher rate, more in line with revenue, not at the same rate of revenue, but more variability there. The remaining operating expenses are expected to grow at a rate that's closer to inflation and generally much lower than our revenue growth. When you take the combination of those three elements, that gets us to an EBITDA margin of 15%-20% in the midterm. From there, we can continue to mature towards 25% beyond that. Okay, great. Thank you, David. I'll ask one more then I'll jump in the queue. In the announcement that you had also in the quarter, you mentioned that you had appointed a chief information security officer as well. A question I have is just what kind of prompted this the appointment at this point, especially data privacy and sensitivity was always top of mind, if not a regulatory requirement for Dialogue? Yeah. Good morning, Andre. Thanks for the question. My co-founder, Alexis Smirnov, the CTO of the company, was, and he's still in charge of everything around cyber. Obviously it was taking more and more of his time, and we decided that it just makes sense to have a dedicated person, and for this accountability to roll up to Daryl. He joins us from your organization. I think he spent a few years at National Bank. We know he's good. What prompted it really is that, you know, we wanted to have a dedicated person who's obviously a team focusing on cybersecurity. Obviously every single person in the company has been trained and has really good awareness. We just felt that it was prudent to have somebody fully dedicated to that. We're really happy and pleased to be able to attract somebody of the caliber of Daryl, who joined us a couple weeks ago. Okay. That's it, from me for now. I'll line up. Thank you. Congrats again. Thanks. Thanks. Thank you, Andre. The next question is from Doug Miehm at RBC Capital Markets. Good morning. My question just has to do with the competitive marketplace and how it may have changed over the last, let's call it six to eight months since there was a, you know, a significant acquisition out there. I'm just wondering, you have continued success. Your win rate is very high. I'm just wondering if you've noticed anything in the Canadian marketplace with respect to that competition or other competition that it has changed? If not, do you expect it to change, and what the implications may be? Morning, Doug. Thank you for the question. You are absolutely right, the competitive landscape has been changing over the last few years. I would say that, you know, when we started, you know, we started this business 7 years ago, and it's really been 6 years that we're in the market. It took us 1 year to build the product. In the beginning, I would say, you know, we had about 12 competitors or 12 alternatives to the status quo that employers had. With time, the market consolidated. You know, some folks went out of business, some folks were bought out. Some folks, you know, failed to achieve scale. Today, it's really becoming a two player market. I think that between the two of us, we probably have, you know, over 90% of the, of the TAM. You know, in most competitive situations, you know, we know who we're up against. You know, in the past, you know, it was, it was a handful or more of competitors any situation. Today it's really, it's really between us and them. Again, it's a market that is maturing. Between the two of us, we have a very large percentage of the digital health market, whether it's in virtual care or EAP or mental health. I don't know if you kind of had, a more specific question around that, but that's really how we've seen the market, evolve. Okay. No, I think that's fine for now. The second question has to do with that longer term growth as well. I'm just wondering how does the company see member service unit growth over that period? Are we looking at mid-single digit? Just, you know, maybe some bookends around how that might look. Yeah. I talked in my earlier comments, when we look at sort of our revenue CAGR of roughly 20% over the next over the next five years, obviously, the bulk of that is gonna come from MSU growth. There will be some continued pricing as we maintain pace with inflationary pressures. The vast majority of that revenue growth will come as a result of MSU growth. Excellent. Okay. Thank you very much. Thank you, Doug. We don't appear to have any other questions. Maybe I'll just. Okay, yeah, here we go. The next question is from Salman at TD Securities. Yes, thanks for taking my questions, guys, congrats on the quarter. Again, I'll stick to the two questions. First, can you talk about your capital allocation priorities? Now, I know that M&A seems to be at the top of the list, but have you guys thought about share buybacks, especially given the cash you're sitting on? I'll I'll answer the cash buybacks question and then maybe I'll pass it on to Navneet. We've of course thought about it. I think one of the challenges we have with our stock is the small float and the small liquidity. We felt that although we think that the price is undervalued and it would be a great buy for us, we just felt that we would make this, you know, the liquidity and the float situation worse if we were to take shares off circulation. That's really what drove the decision. We thought about it quite a bit, and we decided to. You know, we get a lot of feedback from investors that they wanna get into the name, they wanna build sizable positions, but there just isn't enough volume to make it happen, and we don't wanna make it worse. Yeah. Then you mentioned it, Salman, around M&A. M&A has definitely been part of our strategy. It is not our only growth strategy, but it's more to supplement our organic growth, and we're continuing to be on the look for attractive targets that fit within our IHP that help us achieve our growth objectives. The cash, as I mentioned, we have just under $57 million now. We expect to end the year with over $50 million, and that cash we will continue to use towards attractive M&A opportunities. Similar to what we're doing, where it makes sense, as we mentioned in our remarks, we are a little bit ahead of our profitability targets. When the right opportunity arises, we can look at investing further in building the brand, and even looking at ways to accelerate our growth if it makes sense. Got it. For my follow-on, would it be fair to ask right now, like what kind of areas are you guys looking to expand in? For example, are you guys thinking of weight management or anything else, through M&A or through your own organic efforts? Are there any specific areas you're looking into expanding? That's it. Thank you. Salman, did you say weight management? That's just an example that came to the top of my head. Do you guys have any other focus areas you might be thinking of expanding in? Sure. You have to remember that our clients are employers and insurance companies. I think there has been, you know, there's been a trend in the U.S. for some virtual care companies to get into weight management either because they're direct to consumers or just because of the structure of the market in the U.S. is different. Employers directly bear the cost of these drugs, it made sense for some players to go there. In Canada, given the market structure, this is not a top priority for employers. The top priorities are really around mental health, wellness, and return to work. Obviously, mental health and wellness is something that we've invested in quite a bit over the last couple of years, and return to work is something that we're investing in now. We've been clear over the last couple of quarters that we're in that we're developing something there. We already have a return to work product line in our Optima division, and we've been working diligently on modernizing that and tech enabling that, and that's still going pretty well. This is really where we're focusing on because once again, we serve employers and insurance companies, and these are their top priorities, so we're always, you know, working with our customers to develop things that they need or want. Got it. Thank you. Thanks, Salman. Thank you very much. The next question is from Jerome Dubreuil at Desjardins Securities. Yes. Thanks for taking my question. Congrats on the margins this quarter, higher than we thought. I want to talk a bit about the utilization rates a bit here. What have you seen in the quarter? Is this contributing to the higher margins? And then kind of sub-questions on this one, with kind of the large numbers as you're seeing your number of members growing, is it easier now to kind of forecast the utilization rate and optimize the number of practitioners, or it still depends really on how people use the product and still tough to forecast? Thanks, Jerome. In terms of utilization, to answer your first question, with the scale that we have now, approaching 3 million members, our utilization rates are relatively stable. We haven't seen any significant movement in the overall level of utilization for several quarters now. There is, as we've discussed in the past, there is seasonality in like in winter months, for example, we see slightly more. In summer months it's a little bit less. Other than that, it's very predictable and we actually use that to model our practitioner scheduling and how many people we need on the schedule. The favorability in gross margin is not coming as a result of any change in utilization. It's through process improvements that we've been making and investing in automation, investing in technology, better scheduling. The scaling of our EAP and mental health businesses over the past several quarters is definitely driving some efficiencies as well. It's a function of of those of those elements and not as a result of of changes in utilization patterns and/or service levels. Like our service levels is a huge priority for us. We wanna deliver optimum service levels in the most efficient way possible, and that's what the team's been focused on. Great. That's, that's helpful. Then, second question for me is, what would be the kinda new vertical that you've been having success in recently? You know, in the past, you've been surprising the market with new verticals that maybe we didn't see coming as much, sometimes with universities, unions. What's the kind of the new one that's driving some of the recent successes that maybe we didn't think about in the past? In Q1, I think in the notes we mentioned that we had a major commission scolaire in Quebec who signed up for our service. Public sector is taking a bigger and bigger share of our customer base. This has really been a little bit of a surprise for us because, you know, you'd think that, you know, public sector clients just because of the politics around it, you know, maybe would be a little bit shyer to take on our services. What we've seen in the last couple of years, you know, we've announced some major wins in the public sector, that has been, you know, a very positive surprise for us and I think, gives quite a bit of upside on our account. That's the one that jumps to mind when you ask the question. Great. Thank you. Thanks, Jerome. Thank you, Jerome. The next question is from Doug Taylor at Canaccord Genuity. Yeah, thank you. Good morning. You speak to 20% sustained top line growth CAGR. You've also had almost 120% net retention rate report over the last couple quarters. Presumably new customer growth in addition to that. I guess my question is why not a higher growth rate? Is net retention rate punching higher right now than you think is sustainable medium or long term? Or is there something about the new customer addition dynamics, either sales cycle or otherwise, that would lead to that? Is there another factor we should take into consideration or are you just being, you know, conservative with your outlook? Thank you. Thanks for the question, Doug. The short answer to your question is all of the above. There's a couple of factors. You're right, we have a very strong net retention rate and maintaining and expanding our customer base is definitely a priority and we expect that to continue. The other thing you have to keep in mind is as the, as the revenue base increases, the percentage growth, in. Like if you're delivering the same level of dollar growth, the percentage diminishes. That's another factor. Yes, we have been a relatively conservative, like we can throw a number any set of numbers on the spreadsheet, but we wanted to look at sort of our a conservative focus scenario to see what the business would look like with those assumptions. It's a combination of all those factors. Is there upside to that? Definitely. Obviously, we'll take advantage of it if we can, but we wanted to model out a more a scenario that is a bit more conservative. I guess as a follow-up then I'll ask about the new customer sales cycles right now, what you're observing in this market. Have you seen those slow down in your ability to get the pipeline, you know, to the point of signing? Yeah. I'll take that one. You know, you've probably heard us talking about a shift in our customer base, you know, from SMB mid-market to enterprise to very large enterprise. I think, you know, one side effect of that changing customer base is much longer sales cycles. Before, you know, we really had a very repeatable, you know, machine of like a lot of small customers coming online at a very predictable rate. And now our revenues is much lumpier, right? It's longer sales cycle, lumpier, sometimes, you know, one big deal can make or break a quarter. It's this is a change that was important to our business as we grow because the enterprise segment takes more and more importance, but it comes with some of these downsides. In terms of thinking about the macro environment and how it's affecting our business, you know, I think I've talked about this in, you know, several quarters now, like we're really watching this very closely. We're obviously, you know, just as worried as everybody else about what's coming in the next couple of years in the economy. That being said, job numbers remain extremely strong. The April numbers just came in historical low. We keep adding seasonal and non-seasonal jobs all over the economy. The layoffs so far have been very targeted to a very small group of companies. You know, so far, again, we're being very careful and we're watching this intently, but we have not seen any real changes in the demand environment to speak of. Nothing to report yet, but of course, if it happens, we'll, you know, we'll be very clear about it. Thanks very much. I'll pass the line. Thank you. Thanks, Doug. Thank you, Doug. The next question is from Nick Agostino at Laurentian Bank Securities. Good morning, guys. Just one quick question. Just can you talk a little bit about, I guess what role AI or generative AI can play for your organization? Twofold, one, on new product development to help drive revenue growth, and on the flip side, if there's any way that solution or that type of solution can be incorporated into the business to help drive EBITDA or margins expansion in general. Yeah. That's a really good question, Nick. Thanks for asking it. I think the whole industry is going through a sea change right now. There's a lot happening in AI, large language models and all sorts of technologies that are coming up. The way we think about it is patient-facing and non-patient-facing, right? In non-patient facing opportunities, we're really taking advantage of ChatGPT and others. For example, our developers are using ChatGPT to help with code. They use ChatGPT to, you know, do unit tests on code and to find solutions and answers to some of their problems. That's been used quite a bit. We had a hackathon, internal hackathon a couple of weeks ago. A lot of the ideas were around ChatGPT. We think it's very, very exciting. Another place that's not patient-facing, we are kind of redoing how we do our provider scheduling. We've used or we're using quite a bit of AI to optimize these schedules. When it comes to patient-facing, I think there's a lot of excitement and a lot of hope on what ChatGPT can do. But we believe very strongly that the technology is not mature and safe enough to expose to patients. You know, we've all seen really good demos of asking ChatGPT medical questions where it works perfectly, but we've also seen demos, and we've also seen, you know, academic work around some of the errors that it can make. I think we're still, you know, probably a couple of years away from exposing these technologies directly to patients. Can it make Dialogue more efficient? Can we save costs? Can we find all sorts of places in the business where AI can improve that is not patient-facing? Absolutely, yes. We're definitely taking advantage of those. My co-founder, Alexi, our CTO, and his team are spending quite a bit of their time looking at that. I think it's very exciting, but it's not yet ready to be patient-facing. You know, who knows? Maybe next conference call will be run completely by ChatGPT, and Navid and I will be out of a job. That's not patient-facing. Okay, thanks. Appreciate the color. Thank you, Nick. The next question is a follow-up from Andrew Lenot at National Bank Financial. Hey, thank you for the follow-up. It's, it's a bit of a follow-up in response to two questions you gave Cherif. In one of them, you highlighted the differences in the U.S. and the Canadian market in terms of the employers. My question is a bit related to that, in that we have seen data that shows that the percentage employees, at least in the U.S. offering EAP and mental health services has remained quite strong even in recessions, if not grown. I was wondering if you can talk a little bit about the Canadian marketplace. Do you see kind of similar trends or have any kind of thoughts you can share on that? Thanks. Yeah. Look, this is our, you know, The company is quite new, so this is really the first time that Dialogue is going into uncertain, kind of e-economic cycles or, you know, you can call it a recession or whatever the technical, you know, place we are right now. You know, we don't have that institutional experience yet. However, what we do have, and I think, and I think there are some parallels, is that we've lived the beginning of COVID. If you know, if you take back time to March of 2020 when it felt like the world is imploding and, you know, a lot of our customers were, you know, some of them were going into receivership or protection or really struggling. We were really positively surprised and impressed that none of them canceled their service. In fact, even when the, you know, even at the height of the economic uncertainty, end of March, beginning of April 2020, people continued to invest in the health and well-being of their employees. Again, it's not a hundred percent the same thing today, but this is, I think is a good hint of how employers think about our services. You know, mental health demand remains super high. EAP demand remains super high. You know, we've again, we've seen companies that are executing layoffs, but at the same time, upping their mental health and EAP services. Look, as I've answered another question, like we're keeping a very close eye on it, but so far, we have not seen any worrying signs. Okay. Thank you. Appreciate it. Thank you. The next question is from Saman. You can go ahead. Yes, just a quick follow-on. You guys talked about the U.S. and the Canadian markets. Curious to have your thoughts on the U.K. market as well, given, you know, you have your wellness solution, you recently launched your ICBT there as well. Thoughts on the dynamics going on there generally? Yeah. great question. It is very early innings for us in the U.K. We've only recently started going after the local employer market. You know, a sales director who hasn't even started yet. I think she's starting next-. Next week. Yeah, next Monday. It is very, very early days for us. We're excited by the market. We think there's good opportunity, but it's, you know, it's too early to talk about any success there. That being said, Tictrac, you know, continues to call on insurance carriers all over the world. We're continuing to see good success there and really the bright spot that we've been really excited is really cross-selling wellness into our community customer base. We're really pleased with the progress there. Okay. Thank you. Okay, good. These are all the questions we have for today. As a reminder, you can reach us at any time by email at investors@dialogue.co. It'll be a pleasure to answer any questions you may have. Cherif, the floor is yours again to conclude today's call. Merci, Jean-Marc. Thanks everybody for joining us today. We really enjoyed the questions as usual. We're looking forward to seeing you in August for our Q2 earnings. Have a great day and see you soon. Thank you.