Welcome to Copperleaf's fourth quarter 2022 results conference call. At this time, all lines are in a listen-only mode. Following the call, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, March 23, 2023. Your hosts for today are Paul Sakrzewski, Chief Executive Officer of Copperleaf, Chris Allen, the company's Chief Financial Officer. Before we begin, I am required to provide the following statement respecting forward-looking information. During the call today, the company will make forward-looking statements that are based on assumptions and therefore subject to risks and uncertainties that could cause actual results to differ materially from those projected. The company undertakes no obligation to update these statements except as required by law. You can read about these risks and uncertainties in regulatory filings that were filed earlier today. The commentary today will include adjusted financial measures, which are non-IFRS measures. This should be considered as a supplement to, and not a substitute for, IFRS financial measures. The reconciliation between the two can be found in the company's regulatory documents, which are available on sedar.com or on our website. Commentary today will include key performance indicators that help evaluate the business, measure performance, identify trends affecting the business, formulate business plans, and make strategic decisions. Such key performance indicators may be calculated in a manner different than similar key performance indicators used by other companies. With that, I'd like to turn the call over to Paul Sakrzewski. Thanks very much. Good afternoon, everyone. Thank you for joining us to discuss Copperleaf's 2022 performance. I'm excited to share an update of our progress in 2022 and some of our plans for the future. On today's call, I'll make opening remarks before passing the call over to Chris to provide a detailed review of the financial results. Following our prepared remarks, we'll open the call to questions. Copperleaf's demonstrated ability to deliver tangible return on investment to our clients drove continuing demand for our solutions in 2022 and again earned us 100% client retention for those companies that have already implemented our solutions. Our dedication to helping our clients successfully optimize their investment planning and maximize capital efficiencies has earned us the trust of some of the world's largest and most respected organizations. Against an uncertain macroeconomic backdrop, Copperleaf reported a 26% increase in annual recurring revenue, and subscription revenue grew 27% to CAD 39.9 million. Revenue for the full year increased 6% to CAD 73.4 million, despite a 60% reduction in perpetual revenue, which was driven by deal mix, timing, and our ongoing transition to SaaS. The conversion to SaaS reduces initial year revenue but creates a highly visible future revenue stream. Several factors we noted in Q3 and Q2, including deal elongation and availability of client resources, impacted our Q4 performance, resulting in a closing backlog of CAD 107 million in 2022. With progressive pipeline growth, thanks to the investment in the go-global go-to-market team and the continued development of our partner ecosystem, we're entering the year with the largest pipeline of opportunities in our company's history, giving us confidence on bookings in 2023. With our best-in-class decision analytics solutions, marquee reference clients, global coverage, and strong client retention, Copperleaf offers long-term, high-quality recurring revenue in the fast-growing decision analytics market. Our increased environmental, social, and governance-focused investments also contributed to revenue in 2022. Copperleaf's unwavering commitment to providing practical software solutions to help manage ESG issues continues to drive demand, influencing nearly 1/3 of our sales in 2022. We strongly believe that technology-driven approaches to sustainability will drive continued growth as they become more crucial worldwide. In such an environment, Copperleaf is ideally positioned with proven solutions to meet the rising demand in the space. The Copperleaf Community client forum is a thriving and expanding community with nearly half of our clients participating in client-led innovation with Copperleaf Labs during 2022. Collaborating with the Copperleaf Community enables us to stay at the forefront of industry and find solutions that drive our business. Looking ahead to 2023, we're confident that we have the right strategies in place to continue our growth trajectory. We started 2023 with a refreshed operating model that focuses on and brings dedicated resources to four key areas of our client-facing organization: partners and ecosystem, product management, industries, and value engineering. Let me share some more details on the first focus area, partners and ecosystem. Our team has been working hard to establish Copperleaf as thought leaders in the industry, and we believe expanding our partnership ecosystem will help us amplify our position in the market and reach new customer segments. Last year, we made substantial progress enhancing our Alliance Ecosystem, with partners continuing to influence most of our deals and contributing to our record global pipeline. Subsequent to the quarter end, we signed an Endorsed Apps initiative agreement with SAP. This relationship signals SAP's recognition of Copperleaf's industry-leading technology and the value that our combined solutions can deliver to organizations globally. I truly believe the cooperation between SAP and Copperleaf will provide our mutual clients with best-in-class capabilities to further unlock value in their business and achieve their strategic goals. Turning to product management, we've taken some significant steps forward. Copperleaf delivered four product releases during 2022 and released numerous new innovative features. This includes a Q4 release of Optimize Ready, which is machine learning-backed functionality that helps clients improve investment quality and portfolio values by automatically analyzing investments and portfolios to spot issues and inconsistencies and provide recommended solutions. Our technology is one of our key competitive advantages, and by implementing a go-to-market model that incorporates product specialists and clear global product ownership, we believe that we will accelerate our ability to bring new products to market to deliver value to our clients. At the time of the IPO in October of 2021, we estimated our total addressable market at CAD 12 billion per year. Since that time, we've been extremely successful at extending Copperleaf's position in our established sectors and also in our efforts to penetrate new industry verticals in our TAM. During 2022 alone, we signed our eighth water client in the U.K. and had new sector success in air services, pharmaceutical, metro transit, and mining, representing substantial new referenceable global markets for Copperleaf. Going forward, we intend to continue to planfully approach new market sectors where we are able to apply the required resources, where it's clear that the scope for growth is material, and where we know we can provide substantial value to the largest clients in those sectors. Overall, despite some macroeconomic headwinds, we continue to see a healthy demand environment with strong demand from clients and prospects for decision analytics. Our pipeline has continued to grow over the past 12 months, which speaks to the strength of our value prop and the expanded go-to-market team we've been building. In 2023, we expect our growth to be driven by sustained industry tailwinds, such as the increasing needs of our clients to practically manage ESG requirements, acceleration of our ability to bring innovation to market in the form of new products and enhanced services, leveraging our investments in sales and marketing, which are demonstrating early positive results with increased lead generation and pipeline activity, expansion of our Alliance Ecosystem, which includes new partners like SAP. In summary, Copperleaf remains well-positioned for growth. With best-in-class solutions, a deep sales pipeline, strong balance sheet, and a growing client base, we've established the tools, community, and structure to scale the business and drive future growth and shareholder value. I'll now turn the call over to Chris to review our financial results in more detail. Excellent. Thanks, Paul. Good afternoon, everyone. We're pleased to report that our 2022 results continued to deliver growth across our key financial metrics. Revenue for the year ended December 31st, 2022 was CAD 73.4 million, an increase of 6% from CAD 69.3 million in the comparative period, driven by an increase in new clients and the expansion of existing clients. It's important to recognize that the 2022 revenue growth rate was impacted by a 60% reduction in perpetual revenue for the full year, driven by deal mix, timing, and our clients' continued transition towards SaaS. Perpetual and term-based license revenue was CAD 5.1 million for the 12 months ended December 31st, 2022, representing 7% of total revenue, compared to CAD 12.7 million in the comparative period, which represented 18% of total revenue. Subscription revenue for the full year ended December 31st, 2022 was CAD 39.9 million, an increase of 27% from the prior year, representing 54% of 2022 revenue as compared to 45% of revenue in 2021. Professional services revenue for the year ended December 31st, 2022 was CAD 28.3 million compared to CAD 25.2 million in the prior year, and this segment represented 39% of 2022 revenue. Our annual recurring revenue at December 31st, 2022 was CAD 46.4 million, a 26% increase compared to CAD 36.8 million at December 31st, 2021. As of December 31st, 2022, our net revenue retention rate was 110%, reflecting expansion within our client base and strong renewal history. This percentage will vary period to period due to the timing of large expansion contracts within our existing client base and the mix between perpetual and SaaS expansion deals. Revenue backlog was CAD 107.3 million at December 31st, 2022, a 5% increase from CAD 101.9 million at December 31st, 2021. Gross profit for the year ended December 31st, 2022 was CAD 54.8 million, representing a gross margin of 75% compared to CAD 54.9 million the prior year. As a result of our planned investment in 2022 to capitalize on the inflection in the decision analytics market, we had an adjusted EBITDA loss of CAD 24.9 million for the year, compared to an adjusted EBITDA gain of CAD 2.1 million in the prior year. Adjusted EBITDA loss in the fourth quarter was CAD 2.0 million, compared to an adjusted EBITDA gain of CAD 2.3 million in Q4 2021. Adjusted EBITDA for the fourth quarter was impacted by lower revenue, which was partially offset by reduced incentive compensation. Net loss for the year ended December 31st, 2022 was CAD 28.2 million, or a loss of CAD 0.41 per share, compared to a net loss of CAD 6.5 million, or a loss of CAD 0.24 per share in the prior year. Net loss for the fourth quarter was CAD 2.4 million compared to a net income of CAD 0.1 million for the comparative period. We finished the year with CAD 149.5 million in cash compared to CAD 161.4 million in cash at the end of fiscal 2021, which places us in strong financial position to build on our advantage and further penetrate the decision analytics market. With our strong growth, strong unit economics, we remain focused on making thoughtful, long-term investments that will drive accelerated growth in 2023 and beyond. As we continue to expand our reach, we're confident that our focus on operational excellence will drive best-in-class margins, expand our leadership position in the growing decision analytics market, and accelerate our path to profitability. That concludes our prepared remarks. I'll now hand the call back over to the operator to open it up for questions. Thank you. Thank you. Ladies and gentlemen, we will now conduct a question-and-answer session. If you have a question, please press star followed by the number one on your touch tone phone. You will hear a one-tone prompt acknowledging your request. Your first question comes from the line of Dylan Becker from William Blair. Your line is now open. Hey, guys. nice job on the subscription front here. wanted to touch on, you called out the partnership approach and t he SAP opportunity. I get that it's probably not a material revenue driver, anytime in the near term, but is there a way that we should think about kind of the ramp opportunity here? What's that long-term opportunity can set with that partnership with SAP, kind of given their long-term positioning in the EAM market? Thanks for the question. I think, you know, the way to think about it is this, the Endorsed Apps initiative is an invitation-only thing. SAP scanned the market for what we do, selected us as best-of-breed, invited us in. The reason they're doing so is because we fit nicely in an end-to-end solution from their point of view. They have software on either side of us in the stack, and we fill a nice gap there that they don't provide. When it comes to their go-to-market, I mean, SAP, I think is still the largest enterprise software company in the world. We have access to their installed base now. They recommend us if a client needs AIPM, that provides us with a lot of leads, a lot of pipeline, and also some trusted advisor status from their point of view to help us get closed. In the medium to long term, it looks really positive for us. In the short term, we need to ramp up, they need to understand what we do, we've got an education process around that. You know, we expect the software to be on the SAP Store early in Q 2. From that point, we start, you know, selling together in earnest into the install base. I think it's as you say, there's a ramp period there, the medium to long term feels like a really material following wind for us. Got it. That's, that's really encouraging. Maybe to stick with, kind of some of the other prepared remarks around kind of some of the new vertical traction. I think you guys called out healthcare, metro is another one as well too. There's a ton of R&D investment in healthcare in particular. How should we think about your guys' balance between kind of model development and expansion into kind of new verticalized use cases versus digging deeper, going deeper, in some of your more entrenched areas and delivering value and still kind of evangelizing some of those market opportunities as well? Yeah. It's, it's a, it's a good call. I think just a, just a slight, maybe not a correction, but a clarification there is it's pharma, not necessarily healthcare, at this point. One of the features of Copperleaf is that expansion into new sectors doesn't see us doing remarkable things with the core software. It really is around the value models and the value framework. That is a relatively small lift as we go into new verticals, and it's a, it's a feature of Copperleaf that we can expand into new verticals without doing a massive amount of work. From that point of view, accessing new industries gives us more TAM, gives us more opportunity. Having said that, we don't want to do that in a way that's terribly ad hoc. We're very planful about which industries we go after. We will be putting dedicated resources into industry specializations so that we speak the language of our clients and we can articulate value to them in terms that they can understand. That does take resources. We don't wanna be everywhere all at once. We are being pretty planful about selecting our industries, and we believe we're doing that in a way that we can absorb and not detract from the work that we're doing in our core of core, which, you know, still is, on a global basis, largely untapped and white space. Got it. Super helpful. Thanks, guys. Thank you. Thanks, Dylan. Your next question comes from the line of Maxim Matushansky from RBC Capital Markets. Your line is now open. Yeah. Hi, good evening. I just wanted to touch on kind of the efficiency of the sales force. You did a lot of hiring in 2021 and I guess early last year. I wanted to ask about kind of the performance of those new hires, and if the performance levels you expected. I mean, I think you touched on kind of the lead gen and pipeline activity increases. Are those kind of investments performing at the levels that you expected? If not, you know, at what point, presumably in the coming quarters, would you have, you know, enough data to determine that success level? Yeah. It's a good question, Maxim, thank you. I think we are seeing the people that we've hired start to perform. I mean, just to step back a little bit, you know, we saw the inflection point in the sector, which, you know, largely we are creating for decision analytics in this space in 2021. We went IPO, we raised some money, we started to build capacity. We never really expected that that capacity would deliver a huge amount in 2022, but we did see good pipeline development, and in fact, we did see some of those new people close deals. Early days, but we are seeing some good performance out of the build of the sales force. You know, execution is... You know, 2023 is all about execution and making sure that all of the capacity that we've built into the go-to-market team is contributing. You know, we'll see that absolutely happen this year. You know, the pipeline that we've created is good coming into the year and covering our targets. You know, we are confident that we're gonna have a good bookings and ARR year. You know, I think they are performing to schedule. You know, last year we saw the market and the macroeconomic conditions turn a little bit against us, and that was a little unexpected. We are executing to plan, and I think we've hired well and the team is doing well. Okay, got it. That's very helpful. Just switching to the rapid start and kind of the success that you're seeing in the U.K. water market. I'm curious if, you know, there's any other logical kind of pockets of geographies and sectors where you can have similar success. You know, was there something unique in terms of the regulatory framework in the U.K. water market or some other, you know, facet of the situation kind of in, just particularly in that segment that led to relatively quick adoption? Or is there other areas, you know, that you might be able to kind of have that success as well? Yeah. I think we're already seeing this in a couple of different places. It's not necessarily just limited to geographic trends. There definitely is a, you know, the U.K. water market is a regulated, well-regulated sector. They're fairly forward-looking on the topic that we present around value-based decision-making and capital optimization. So it's a good patch for us, and we've built a solution there which suits the regulatory market and the buying patterns of the clients in the U.K. very well. We've done similar things in the distribution transmission, the power distribution transmission market in Japan, where regulatory conditions are changing similarly. You know, we've got a, we've got a good pattern there where we can rinse and repeat solutions, and we've got a good track record there as well. All of these things do tend to have global implications. Those pockets of best practice tend to be followed by industry practices in other countries. In the power sector, people are looking to the U.K. to their standardized asset risk modeling, the CNAIM models, that's been good for us. We've managed to codify that and take it internationally. The experience we've had in the U.K. water sector is starting to have traction elsewhere because people do look to the U.K. as a best practice market. It's not just market, you know, industry by market. It's taking that knowledge, the fact that we've actually coded that knowledge into our value model library, and we can, we can shift and lift that and apply it quite quickly to clients in other geographies who are walking down a similar path. It's another one of the industry advantages that we have. Great. Thanks. Final one from me. You know, you had a strong improvement to your EBITDA margins this quarter, which was helped kind of by the quarter-over-quarter absolute declines in operating expenses, really kind of across the board. You mentioned that part of this is reduced incentive compensation. I'm wondering kind of what levels of expenses we should expect going forward, and, you know, how much of that decline was kind of that reduced incentive compensation? Yeah, I'll take that one. Thanks, Max. Yeah. Just as we said in our remarks, a lot of that, the Q4 specific drop that you see was, you know, was focused on the incentive compensation. As we said throughout the year, we did, you know, cut back on hiring to a certain degree based on the macroeconomic environment. As far as your question, you know, what to expect for 2023, I think you can start to look at what the run rate was at least starting going, you know, through Q3 at least, and more or less carrying that forward. Obviously, you know, as we've explained, I think in our prior quarters, we are largely planning on holding headcount flat through 2023. We believe that the hiring that we've made in 2022 sets us up very well for that. We have put quite a bit of infrastructure in place in 2022, as now a new publicly, you know, traded company. As well, as we saw last year, there were, you know, sizable salary increases. There was inflation that had to be taken into account. All of that will come into play with regard to our expenses next year, just as far as run rate expenses on the headcount that we've got with those salaries increases baked in. Okay, thanks. I'll pass the line. Thanks, Max. Your next question comes from the line of Thanos Moschopoulos from BMO Capital Markets. Your line is now open. Hi, good afternoon. Chris, just to expand on the OPEX discussion. Was there a reversal of previously accrued incentive compensation in Q4? That's correct. Is that contributor? Okay. Yeah. That's why Q3 is a better run rate. Got it. Correct. Okay. How should we think about licenses in the business going forward? I mean, I guess licenses are gonna be a random number. It always is customer specific and deal specific. Would your expectation be perhaps that, you know, is this 2022 maybe gonna be the high watermark and just licenses will probably be a lower amount in subsequent years or could it spike back up to what we saw in 2021, depending on if certain customers want that model? I'm assuming, Thanos, you're talking about perpetual licenses, right? Yeah. Yes. Yeah. I mean, I, you know, our deal flow doesn't run into the, into the hundreds and thousands, you know, every one or two really shifts the needle quite substantially. I think there's still some fluctuations left in it. Last year we saw a pretty substantial reduction in perpetual licenses, which, you know, indicates it follows the general trend towards SaaS. We believe that that will just continue over time. Year-over-year, there's still gonna be fluctuations. You know, we have to look at our pipeline and try to assess what we think is likely to go perpetual and what's likely to go SaaS. We've got indications on that in terms of the track record of the country and, you know, the capitalization rules inherent in the industries in the countries. We make our best guess, but over time, we're definitely heading directly towards a SaaS environment. We will see ups and downs and, you know, like I said, one in two deals really shifts the needle pretty substantially year-on-year. As far as the spending environment, is it pretty consistent in recent weeks, or have there been any changes of note, be it in terms of, you know, sales cycles, approval processes, customer scrutiny on budget, all that kind of stuff? Yeah. It's always hard to spot a trend sort of coming out of the environment that we came out of. We feel like things are freeing up a little bit, but it may also be a factor of, well, a function of the fact that we're getting in front of clients live again. You know, I've been able to do some travel and get in front of some people and sit down with them and talk things through. I think, you know, when you're a large enterprise software company, that face-to-face is still important. I think we're probably seeing the effect of a bit more face-to-face engagement. We were able to meet up with all of our clients over the past, you know, four or five months. We had our three industry summits in all of the three regions, in addition to our virtual summit last year. You know, I think that's been having an effect. Generally speaking, I am probably seeing some freeing up, and a little bit more confidence in our client base to move forward. Great. I'll pass the line. Thanks. Your next question comes from the line of Gavin Fairweather from Cormark. Your line is now open. Oh, hey there. Thanks for taking my questions. Maybe just to build on that recent discussion around things freeing up. You know, I'd imagine that you have a decent amount of kind of bottom of funnel deals, given some of the macro influences that you saw throughout 2022. Are you seeing those deals are now kind of resuming and increasing pace here in the first half? Could that maybe, you know, shift the seasonality that we see in 2023 and make it a bit more front-end weighted if some of those delayed deals are moving along and closing? We would love to see that as well, Gavin. I think we can expect another year that runs according to most of our clients' annual cycle, you know, their financial year. You know, generally speaking, in this industry, you see a heavy Q4, and the second half is generally heavier than the first. You know, I think that we'll probably see something akin to that pattern as well this year. You know, we're putting best efforts into generating linearity quarter on quarter because it doesn't suit us to have massive Q4s either, you know, for all kinds of different reasons. It is the shape of the industry, and it's the way that enterprise software has kind of almost taught the client base to buy. I don't think we'll be able to unilaterally shift that, but we can mitigate it a little bit. 2023 is still gonna be you know, remain largely back-end loaded. Okay, got it. Then any other trends you'd call out in the pipeline that you've noticed kinda by region or vertical or deal size? Anything that's worthwhile highlighting on the call here? No, I can't think of anything material that would shift our thinking. You know, anything material enough that would, you know, make us change our plans or anything like that. No, I feel like, you know, we're doing well in our core sectors. You know, we've introduced some new, sectors, and every time we introduce a new reference client in a new sector, it gives us the ability to go out and generate pipeline. You know, we're still at that point where, you know, our global TAM is largely white space. Nothing that would shift our strategy, Gavin. Yeah. I can just add on to that and agree with Paul. I mean, we are seeing, you know, continued very good growth within our pipeline over the last 12 months. You know, it follows the patterns that we have been, you know, seeing, which is continued steady growth within our core sectors, electric utility, natural gas utility, water, and now, you know, continued expansion in some of the new sectors that we're starting to penetrate. Transportation, right, with rail now getting access into that metro transit area, highways, some of the others like oil and gas, and obviously water is a big one, if I haven't mentioned that already. A lot of that. More of the same, I'd say, Gavin. Okay, great. Then just lastly for me, a nice increase in the backlog this quarter. Maybe just zeroing in on professional services. Can you just speak to the backlog there and whether you can maintain kind of the current pace of billings or grow billings in the coming quarters despite maybe partners taking on a bigger role? That's it for me. Thanks. Yeah, thanks. Yeah, I mean, we did see a big jump in backlog in Q4, which is normal. You know, the year-over-year was only 5%, considering some of the delays that we did see. No, we definitely feel like we're well-positioned to execute on the services revenue this year. As Paul was indicating, we do see that even with, you know, the delays that we did see in 2022, you know, I'll just comment that some of them absolutely slipped into Q1. You know, we're making good progress on a couple of those have already closed, so there's good business there. When we look overall, as Paul was saying, the tendency is for those not to just slip into Q1. They follow their budgeting cycles, which, you know, typically means that it goes, pushes through to Q3 and Q4. We'll probably expect a similar profile to what we've seen historically. And that means that that's when the, you know, the deals will drop, and that's where we'll start to see services revenue pick up. That'll probably be later in the year. Bottom line is we feel that we've got the capacity in hand to manage the services revenue for 2023. Thanks so much. Ladies and gentlemen, as a reminder, should you have a question, please press star followed by the number one. Your next question comes from the line of John Shao from National Bank. Your line is now open. Hey, guys. Thanks for taking my question. Paul, you mentioned a geographic expansion in your prepared remarks. How easy it is to penetrate into a new country? Does it require a lot of, like, product modification and training each new area? Or is it more of a easy sale process? I'd love to say it was an easy sale process. I haven't heard those words in the same sentence for quite a while. Look, I think we're getting better at it. Our references work well across borders, so you know we've got good references in, you know, the electric utility market in transmission distribution and generation. We've got good references in water. We've got good references in gas and oil and gas and now transport and transportation in road and rail. Those references really do translate well at Copperleaf into new geographies. Now, in the new geography, people will generally want to see something in their geography. Getting that first sale, even in an established industry, is a lift and takes a little while. Generally speaking, we've got new account executives working on that because they're a new person in that market, and they're generally speaking, you know, a different language to the rest of the business. There are those things to overcome. Generally speaking, once we get our first reference, we've got good references internationally behind that. Once we're local and international in that sector, things start to flow from there. It is something we need to take seriously because the, you know, the early days of a new market do require support from the rest of the business, which of course, you know, if you do it at scale, takes resources. I think one of the good things is we've been, you know, on an expansion process over the past couple of years. I think for 2023, it's a consolidation year, so we can take a little bit of a rest from all of that, all of that hiring and scaling and HR work and just make the geographies and largely the sectors that we're in successful. Okay, thanks. On the SaaS transition, I understand this quarter the license revenue was lower just partially because the transition to a recurring model. My question is, when I look at your SaaS revenue growth this quarter, how much of the growth is coming from, you know, those existing logos moving to a recurring model versus, you know, how much is it coming from new logos? I'll take that one. Basically, the bulk of it is coming from new logos, effectively. You know, the only other component for the SaaS increase would be expansions, but that's largely existing SaaS clients adding to their solution rather than any active conversions from perpetual to SaaS. Okay, thanks. My last question is on the SAP announcement. Should we expect more of a similar announcement down the road with other, you know, ERP vendors, or is this more of an exclusive relationship with them? There's nothing exclusive about the relationship. We already interface with products in the stack from other vendors like Maximo and you know, the other ERP vendors as well as a whole bunch of other technology partners in and around our space. There, there's nothing exclusive about it. I will say, though, that, you know, the ability for Copperleaf to support these large partnerships is limited. You know, we need to take the ramp process and the enablement and partnership process seriously and not go too broad too fast because we could end up in a position where we've got channel conflict and, you know, in a position where we're not supporting those partners as best we can. Again, it's one of those areas that we're gonna be planful about going to the places where we can do the most good and where we've got the most bang for buck, for us and for the clients and also where we can provide proper support to those partners as they ramp. Okay, thanks again. I'll pop a line. Your next question comes from the line of Robert Young from Canaccord Genuity. Your line is now open. Hi, good evening. Hopefully you can hear me okay. Maybe first I'll start off an extension the last question. SAP is, they drive a lot of activity within the SI and the services, all the potential channel partners that you could be interested in signing up. I'm curious if the SAP announcement created a bump in the level of interest you're seeing from potential partners, you know, big partners like Accenture or Capgemini, et cetera, et cetera. Yeah. Thanks. Thanks, Robert. It's, we've certainly seen an uptick in interest in us from the SI partners particularly. I think people are recognizing that the asset investment planning is a burgeoning space. The SI partners are starting to build practices around this. They would like to provide end-to-end solutions, which include what we do, but also things on either side of us, which is, you know, what they do. They're system integrators, they pull software from different places, they provide end-to-end solutions for their clients. We're seeing an uptick in interest. Whether that's directly related to the SAP announcement, I don't know. You can imagine that the SAP ecosystem, which is used to on selling and integrating SAP solutions, often with other third-party solutions, they will be interested in us as well, and it will drive some uptake. Okay. Second question. In the prepared remarks, you noted that there was some issue around the availability of resources at your customers. I don't know if I heard that correctly, but if you could just expand on that. What does that mean? Is it, maybe give us a sense of how that's impacting the conversion of the pipeline? Yeah. I mean, most of our clients have got, you know, substantial runways of software that they're trying to implement, and they've got other things that they're doing as well. Particularly coming out from underneath COVID conditions, where they also were subject to the Great Resignation. We saw a fair amount of personnel churn at our clients. Also a, you know, probably a reduction in capacity in conjunction with an increase in demand for, you know, implementation of software internally. It drove them to be cautious about closing new software deals and taking on more work. We definitely saw that. We do feel like that is easing a little bit, but it's still out there. You know, our clients are still, you know, implementing. There's a, you know, substantial trend, particularly in the SAP environment, while we're talking about SAP, to take, you know, their on-prem solutions and their perpetual solutions and convert across to SaaS. There are, you know, huge programs around that, not just at SAP, but at the other ERP vendors. That, that trend in itself is taking up a lot of capacity at our clients. It's one of those things we have to speak to. You know, we believe that you're better off starting with the decision first and working out what data and what information you're gonna need to make good decisions. Starting with Copperleaf drives you towards an efficiency around deciding, you know, what information you need to feed those decisions. We certainly feel like our clients would be best placed to go first with us, but it takes a little bit to convince them of that. Okay. Okay. The last question from me is just around the pipeline. You, you said in the call a couple of times that the demand is strong, that the pipeline is strong. I guess there's a bit of elongation of sales cycle, and then there's this resource issue, I guess. So I would assume that the pipeline is getting, it's not just at record levels, but it's growing faster than it was before. Would that be a fair statement? If you still have the same amount of organic lead gen, and then you have some elongation, like could we, could we infer that the pipeline is maybe accelerating or growing faster than it has in previous periods? I think annually in dollar terms, we're adding more dollars of pipeline per year. If you look at it in percentage terms, it's pretty steady. Chris, I don't know whether you've got a view on that, we're certainly adding more pipeline in dollar terms and, you know, the number of deals than we have in the past. If you can imagine, it just takes more to lift our pipeline by 20% and 30% than it did before. I think the added capacity that we put into the field and the partner and ecosystem starting to contribute is, you know, making sure that we can maintain pace on the percentage of pipeline growth year-over-year. Okay. Thanks a lot for taking the question. Thank you. Your next question comes from the line of Valery Heckel from CIBC. Your line is now open. Hi there, this is Valery on for Todd Coupland. My question is on the company's rapid start solution for electric distribution companies, which I believe was introduced last quarter. I think the idea behind it is that it will help improve implementation times for regional utilities. I was wondering if you have launched this solution, and if so, whether you can share any early traction you might be receiving from clients. Yeah, I think you're probably referring. It's a little bit of an extension of what I was talking about before. It's the codification and the packaging up of the CNAIM solutions out of the U.K. market. It is driving good discussions, and we've been successful at implementing versions of the CNAIM solution across different markets, including Japan and New Zealand and Australia. It's a very efficient way for our clients to get into this space. You know, they don't have to invent those things from first principles. They can put their value frameworks together largely on a mix-and-match basis out of our framework library. Again, that's one of our good competitive moats that we've built up over a dozen years of, you know, collecting up all of this IP and making sure that we're capturing it and codifying it and curating it in our in our library. It is, it is working. You know, we've got campaigns around that with our with our global sales force, and we expect that it'll follow a similar path to the rapid start solution that we have for water in the U.K. Okay, that's helpful. Thanks for taking my question. Thanks, Valery. Your next question comes from the line of Suhada Thanikkatt from Bank of America. Your line is now open. Hi, this is Suhada Thanikkatt, on for Koji. So my question is on the partner channel. You have already, you know, touched this topic, but just to be more clear, it looks like the channel is expanding pretty well. Could you please give us some color on, you know, what's the revenue contribution from partner channel like this year versus last year? How do you see it like moving forward? You know, like how much of the bookings, you know, being driven by the partner channel this year? You know, like, are there any partners who started to expand their Copperleaf practices? I'll start here, and then Paul can probably jump in for the, you know, the expansion. Generally speaking, first of all, it's not a metric that we, you know, typically disclose going forward. What we have disclosed historically is, generally speaking, when we look at the bookings, you know, roughly 50%, you know, over half of our bookings are influenced by partners in some way. Either initiated by partners or walking alongside us as we co-sell together with them or even finders that come in. A good portion of our bookings involve a partner to some degree. Paul, maybe you wanna chime in on just the expansion of their Copperleaf practice. Yeah. I think there's a couple of things to it. I mean, like I said, I think the space is evolving to the point where the SIs and the major SIs and the strategy consulting firms are ready to build practices. They're ready to invest and build practices around these disciplines. Whereas at that inflection point that drove us to IPO and expand out the capacity that we've had, we're seeing that inflection point translate into partner activity. We are going into 2023 for the first time with dedicated resources in our region around partner activity. We've also created, you know, our Global Growth Office that we talked about earlier in the prepared remarks, which effectively incorporates partners, industries, product, and value engineering. That again is dedicated resource to, you know, coordinating, growing, and supporting our partner and eco network. You know, a lot of that expansion activity has gone into that sort of area where we can get good leverage and good efficiencies out of building those processes around partners globally. You know, at the same time, we're seeing the market receptiveness tick up for us. We definitely will see an increase in not just the go-to-market channels, but also those trusted advisors who advise our clients as to what software to buy. That's important for us. Our clients love hearing from us about our software, and we're very proud of what we do. It's very powerful for them to hear about our software from the trusted advisors that advise them across their entire software stack. We're starting to see that occur more often. Sure. Thank you so much. Just one more follow-up question on the sales cycle. You already talked about the labor issue in some of the verticals, and that's actually extending the sales cycle. You also talked about, you know, it's going to take some time to improve. Is there any, like, specific vertical that is really affected, or is there any other vertical that you're seeing a lot of improvement at this point of time? No. Again, it's, you know, we don't see all of the market in every geography, in every sector. It feels like the world is climbing out of a, out of a resource hole. It's gonna take a little bit of a time for that to happen. I couldn't pick up on any specific trends in any industry or any geography where we think, where we think the green shoots are greener than anywhere else. We are seeing a general trend towards improvement in that in that area. Got it. Thank you. There are no further questions at this time. I will now turn the call over to Mr. Sakrzewski. Okay. Thank you. If there are no further questions, we'd just like to conclude by thanking everybody for joining us today. We're very excited about our ongoing business progress. We feel like we have a tremendous opportunity in front of us, and we look forward to providing future updates as we go through the year. That's, and that I think we can conclude our conference call today. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may disconnect.