Hello, and welcome to the D2L Inc. Q1 fiscal 2025 financial results conference call. My name is Carla, and I will be coordinating your call today. During the presentation, you can register to ask a question by pressing star followed by one on your telephone keypad, and if you change your mind, please press star followed by two. I will now hand the call over to Craig Armitage to begin. Craig, please go ahead. Good morning. Welcome to the D2L Inc. fiscal 2025 first quarter results conference call. Listeners are reminded that portions of today's discussion will include statements that contain forward-looking information. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from a conclusion, forecast, or projection in the forward-looking information. Further, certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information. For identification and discussion of such risks, uncertainties, factors, and assumptions, as well as further information concerning forward-looking statements, please refer to the risks identified in the company's annual and interim management's discussion and analysis or the most recently filed annual information form, in each case as filed under the company's profile on SEDAR+ at www.sedarplus.com. In addition, during this call, reference will be made to various non-IFRS financial measures, including constant currency revenue, adjusted EBITDA, adjusted gross profit, adjusted gross margin, and free cash flow. These non-IFRS financial measures do not have any standardized meanings prescribed by IFRS and may not be comparable to similar measures presented by other public companies. Please refer to the company's MD&A for the three months ended April 30, 2024, for more information about these and certain other non-IFRS financial measures, including, where applicable, a reconciliation of historical non-IFRS financial measures to the most directly comparable IFRS financial measures from our financial statements. This morning's call is being recorded on June 5, 2024, at 8:30 A.M. Eastern Time. I now like to turn the call over to John Baker, Chief Executive Officer, D2L. Please go ahead, John. Thank you, Craig, and thank you everyone for joining us for our Q1 earnings call. We released financial results after markets closed yesterday, which you can find on the investor relations section of our website at d2l.com. Please note that the results we're discussing today are in U.S. dollars. I'm joined this morning by Stephen Laster, our President, and Josh Huff, our CFO. On the back of delivering a strong 2024, I'm pleased to report it was a solid start to fiscal 2025, highlighted by strong growth in our subscription and support revenue, annual recurring revenue, and operating profitability. Total revenue was up 10% to $48.5 million, including 10% growth in our SaaS revenue. Annual recurring revenue was up 11% year-over-year to $190.3 million, and increased by 12% on a constant currency basis. Adjusted EBITDA increased to $4 million, up from $2.8 million in Q1 of last year. Simply put, we have a clear path to achieve our full year growth outlook, which includes exiting the year with low- to mid-teens adjusted EBITDA margin. I'm very impressed with what the team has done to make sure that we're delivering on our balance of growth and profitability. During the first quarter, D2L celebrated its 25th anniversary, an incredible milestone for our team. When I started the company in my third year of university, it was to have a transformational impact on the way the world learns, because learning has this wonderful ripple effect across our campuses, companies, communities, and countries. Building more engaging and inspiring learning experiences was my inspiration at the beginning, and we are as dedicated as ever to this vision. We've clearly come a long way since those early founding days, and each quarter, we continue to strengthen our fundamentals. We now have a global team supporting well over 18.5 million people using our learning platform in countries all around the world. Through our great efforts and the care of our team for our clients, D2L has become the number one learning platform in many countries around the world. For example, I just got back from Singapore, where we now are number one with over 70% market share. And in our most competitive market, North American higher education, we're now the fastest growing learning management system, and we're winning more than 50% of the time. Our work with corporate clients to deliver better upskilling experiences is also growing quickly, and from a financial perspective, we have a strong balance sheet with no debt and are balancing top-line growth with increasing profitability, giving us the ability to invest for the future. At the same time, as we've increased efficiencies and margins, we're making substantial investments in product innovation, doubling down on the voice of customer and our focus on the learning moment. Stephen is going to touch on a few exciting product milestones that we have ahead. In this past quarter, we also won several important awards that validate the hard work of our team. We won two CODiE Awards, one for the best learning management system across education, and the second award for the best customer education LMS in the corporate market. D2L Brightspace was also named the easiest to use learning platform by G2 for both the corporate and education markets. As we like to say, it was not easy to become the easiest to use learning platform. It was a tremendous effort and investment over many years to achieve this milestone. Our team had many thousands of design sessions with users and have really focused on building moments of delight and ease of use into the workflows that are truly transforming learning. These awards are recognition of the incredible work of many D2Lers who live our mission and obsess over customer experiences day in and day out. Thank you. It's helped us to pull ahead of our competition. As we prepare to welcome over 1,000 of our customers at our annual Fusion conference next month, it's also a very exciting time for D2L. We're hard at work engaging learners because it's never mattered more, and we've never been more encouraged by the outlook and opportunity for the company. Now, with that, I'll turn the call over to Stephen. Over to you. Thanks, John, and good morning. I'll briefly comment on our go-to-market activities and investments in innovation. It was a productive start to fiscal 2025 on both fronts. During the first quarter, we continued to add noteworthy new customers to the D2L platform. In our largest market, higher education, the University of Hawaii selected Brightspace for its 50,000 students. In the words of their leadership, moving to the Brightspace platform marks a pivotal moment in their commitment to providing a cutting-edge educational experience for students, faculty, and staff. We also welcomed Madison Area Technical College, a well-regarded technical college in Wisconsin, serving more than 20,000 students. They're replacing a legacy system with ours, beginning this fall, to meet the evolving needs of faculty and students in the future of education. Internationally, upwards of 70%-80% of higher education remains on legacy learning platforms. We're diligently building market leadership in focus countries that act as regional hubs. In Europe, a great example is the Netherlands. We first entered the market in 2016 and have methodically established market leadership to the point where we are now at 60% share. During the first quarter, we strengthened this position with two new additions. We added leading applied sciences university, Hogeschool Leiden, where Brightspace will support the highly personalized approach to learning for their 12,000+ students. We also welcomed Utrecht University, one of the oldest universities in the Netherlands, serving more than 35,000 students. In selecting Brightspace over multiple competitors, they highlighted the superior scores on usability and responsible design, including our vision on the use of artificial intelligence. To John's earlier comment on ease of use, our investments in this area are translating to commercial success. We're replicating the strategy for other markets. For example, we continue to see the D2L brand and presence build in India. In the past two years, we have doubled our customer count through our market leadership and online learning in region. Over time, we believe D2L will be the market leader globally, following the path we have taken in North America and replicating our success in targeted regions to date. In K-12, we continue to partner with larger school systems through their digital transformation. In Q1, we welcomed the Broome-Tioga Board of Cooperative Educational Services, which serves 15 school districts in New York State, comprising nearly 35,000 students. In corporate, our team is doing a great job building the D2L footprint in employee learning and training organizations. We recently onboarded the Royal Institute of British Architects, a global professional membership body driving excellence in architecture for more than 25,000 learners. D2L is being acknowledged as a leader in corporate learning, recently earning recognition as one of the top 10 learning systems by the Craig Weiss Group. This award, and others from Forrester and Aragon, reflects the impact we're having with clients as they embrace our technology to make sure their employees are ready for work of the future. In Q1, we continued to strengthen our go-to-market capabilities with the addition of our new Chief Marketing Officer, Brian Finnerty. Brian is a respected and accomplished marketing leader with comprehensive experience leading brands through high growth and global expansion. We're excited to have him on the team to enhance D2L's brand as a leader in the global digital learning market. It was also a productive quarter on the innovation side as we enhanced existing offerings and broadened our portfolio of products. I'll be brief on this topic to avoid previewing too much of what we're excited to share at our Fusion conference this summer. In terms of important new functionality and products, on the AI front, we continue to get great feedback on the generative AI beta program for practice questions and quiz questions. Customers using it like the full integration into workflows, clarity on what is AI-generated, and of course, human in the loop at all times. We're also getting valuable customer input to advance the Achievement beta program, which is providing impactful new capabilities around outcomes analytics and learning success. We continue to see high customer interest in Creator+, leading to a growing attachment rate for this product. Our sales efforts are now supported by compelling efficacy data from customers like South University, which leveraged Creator+ to transform text-heavy content into dynamic, learner-centric modules. They've seen a 30% reduction in course development time and a much higher percentage of learners achieving A's and B's with content designed using Creator+ versus their old model. Lastly, we have enhanced the ability for bulk course importing, allowing new customers to more efficiently migrate from other LMSs to Brightspace. I'm going to stop here, as I hope to see you at Fusion, and look forward to updating you on these topics along with Q2 results in a few months. I will now turn the call over to Josh for an expanded discussion on the financials. Josh? Thanks, Stephen, and good morning. Our full financials were posted last night, so I will be brief. As John highlighted, our Q1 results demonstrate continued progress, executing a balance of solid top-line growth with significantly improved profitability. Total revenue for Q1 was $48.5 million, a 10% increase over the same period last year. Growth was led by subscription and support revenue, which was up 10% in Q1 to $43 million. Our professional services and other revenue returned to growth, increasing by 10% to $5.5 million. Annual recurring revenue at quarter end increased by 11% from $170.9 million to $190.3 million. Foreign exchange had a bigger impact this quarter, and therefore, I will highlight that constant currency ARR rose by 12% to $191.4 million. Net of FX, the net ARR adds for the quarter were approximately $4 million. A reminder that Q1 is typically a seasonally lower quarter for bookings based upon the buying season for educational and corporate institutions. Looking at gross profit and gross margin. Q1 gross profit increased by 9% to $32.7 million. Gross margin for Q1 came in at 67.4%, down slightly from 67.6% in Q1 of last year due to one-time partner fees and would have otherwise increased roughly 100 basis points year-over-year. The growth in our subscription gross profit was a highlight again this quarter, up 11% in Q1, and subscription and support gross margin rose to 72% in Q1, an increase from 71% in the prior year. We expect gross margin expansion over the course of this fiscal year, building on the significant progress the past two years. A few quick comments on operating expenses. As we articulated with our Q4 results, we expect to hold OpEx essentially flat for the full year, leading to additional operating leverage. Operating expenses for the quarter were $33.3 million, impacted by roughly $1.5 million in one-time expenses unrelated to the continuing operations of the business. Excluding these expenses, Q1 OpEx increased 7% over the prior year. As we look ahead to Q2, I would also highlight seasonality in our sales and marketing spend, specifically, that we will see an increase in our expenses for Q2 to account for our annual Fusion conference, consistent with prior years. In terms of operating profitability and cash flow, we reported adjusted EBITDA of $4 million or 8.3% margin, up from $2.8 million last year, or 6.4% margin. This represents a 190 basis point increase in margin year over year. Just to quickly reflect on the profitability transition we've been undergoing, our guidance for fiscal 2025 at the midpoint represents a 700 basis point improvement to our adjusted EBITDA margin relative to fiscal 2024, and builds on the 600 basis point improvement to adjusted EBITDA margin that we delivered comparing fiscal 2024 to fiscal 2023. We are pleased with our progress in Q1. Over the first three months of the year, we have generated roughly 50% of the adjusted EBITDA we generated over the full 12 months in fiscal 2024. We're excited to build on this during the year. As John highlighted, our outlook calls for a meaningful lift in the back half of this year, with an exit rate of low- to mid-teen adjusted EBITDA margin. This would effectively have us exiting the year at a Rule of 25 profile on the Rule of 40 benchmark. We reported free cash flow of -$14.9 million in Q1, an improvement of $3.7 million from the same period in the prior year. A reminder, cash flows from operations historically have a seasonal low in the first quarter each year and a seasonal high in the second quarter each year due to the contractual timing of annual invoicing with our end customers, many of which have a fiscal year-end in the second quarter. Based on this seasonality, our progress on free cash flow growth is better illuminated when you look at trailing twelve-month data. For the trailing 12 months at Q1 of this year, we generated free cash flow of $13.7 million, an increase of $16.1 million from -$2.4 million for the equivalent trailing 12-month period as of Q1 of last year. The growth in free cash flow this year will allow us to build on a strong financial position. At quarter end, we had no debt and $99 million in cash, providing us the financial flexibility to make disciplined growth investments, both organic and inorganic, as we move forward. Additionally, we continue to be active with the NCIB buyback program whenever possible, given our current share price. During the quarter, we repurchased and canceled 131,380 subordinate voting shares under this program. Lastly, with the Q1 results, we reiterated our previously issued fiscal 2025 guidance, and we would like to thank the team for the strong performance in Q1. With that, we'd be happy to take your questions. Operator? Thank you. If you'd like to ask a question, please press star followed by one on your telephone keypad. If you change your mind, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally. And our first question comes from Doug Taylor from Canaccord Genuity. Your line is now open, Doug. Yeah, thank you, and good morning. I'll start with a question, like sort of a bigger picture question for, for John or, or for Stephen. There's been some more activity from private equity in and around the, edtech market of late. I know PowerSchool isn't necessarily a competitor, but it's, you know, comparable anyways. But a good reminder that most of the players you do see are reg-- you know, regularly are, are PE-controlled or backed. So I wanted to just refresh the discussion on the overall competitive landscape and what you see as the competitive response to D2L continuing to take share away from legacy players in both North American and increasingly international markets. Good morning, Doug. Great question. You know, we're obviously monitoring the activity that's happening in the market, and at the core, it doesn't change what we're focused on. We're gonna continue to focus on our execution, on the plan that we put out. It's leading to these high win rates that we're seeing, to your point, taking market share across the board globally. And we're competing well, we're winning. We're gonna continue to invest in product to differentiate in the market and use this as a moment in time to really win more market share and continue to grow, and build those stronger relationships with the clients. So that focus, making those substantial investments in product innovation, doubling down on the voice of the customer, making sure that we're building the best learning moments we can with our clients, I think puts us in a very highly differentiated space, in our markets, globally. And so I see this as an opportunity, for us to continue to grow at a faster pace in the future. All right. Thanks for that color. Could you, and just in case I might have missed it, can you update us a little bit on the spin-out transaction timetable, if you've got any more specificity there, and what's remaining to be done to effect that transaction? Another good question, Doug. So still targeting end of June for the spin-out to close. Transition's going well, where things are progressing as planned. It's steady as she goes. Okay, and then one more from me, maybe for Josh. Just to clarify what you said about the gross margin profile here. I think you said 100 basis points of one-time, you know, partner-related fees in the quarter. Is it fair for us to then, you know, as we look to Q2 and beyond, then, you know, add 100 basis points to just the subscription and support portion of the margin profile and then continue to gradually expand from there? Is that what you're trying to communicate with that statement? Yeah, that's fair. I mean, as we said in the opening remarks, we're talking about 100 basis points in a quarter, so relatively small dollar amounts. But as you said, as we look forward to the rest of the year, we do expect gross margin to continue to improve. It's an area, as you know, we've been making significant investment in, both from a cloud engineering perspective as well as from a support perspective. And so, yeah, as you look at the rest of the year, it's sort of step function improvements, as you'll recall, in quarters past, but we do expect continued expansion in the back half of the year. Okay, steady quarter. I'll, I'll pass the line. Thanks, Doug. And now our next question comes from Dan Chan from TD Cowen. Your line is now open. Hi there, this is Justin on for Dan. Thanks for taking my question. So, for the past few quarters in a row, we've seen about 12% ARR growth in constant currency. How should we bridge the growth we're seeing in ARR with current subscription growth guidance at about 10% for the full year? When should we really expect some of these ARR adds to start converting to revenue? Yeah, good question. Thank you, Justin. Yeah, as we've discussed in the past, there certainly is sort of a timing element as new customers get implemented and onboarded, and that revenue starts to kick in. We're also very much aware of the environment and the macro setting, and so we're just being mindful, whether it be in regards to the sales cycle timing we've talked about in the past, or whether it be in regards to foreign exchange. We're being mindful of that as we provide our guidance for the remainder of the year. That's helpful. Thanks. And just want to comment. There was a public report out against one of your peers recently, which called for constrained growth due to the ESSER funding winding down. Can you maybe talk to the government funding dynamic as it relates to software spend, and maybe how it may or may not affect D2L's growth in the near term? Yeah, I think we said on other calls in the past that we really didn't chase that money. We had a number of clients that benefited from it, you know, and certainly saw some pullback in previous years as they spiked up in terms of utilization in K-12 and came back down. Most of our K-12 clients are higher than they were during the pandemic, but certainly weren't where they were during the peak. So for us, we've largely digested those changes in our client base. Like, I can't think of any other issues that we've got to deal with there. You know, we're certainly seeing opportunity within the K-12 market with our competitors' client base as they go through a similar dynamic playing out in the one to two years ahead. But, you know, we if you recall primarily focused on the higher education and corporate as our growth levers for the last few years, and that's helped us avoid the dynamic that's playing out in K-12 today. That's helpful. That's all for me. I'll, I'll pass the line. Thanks. Our next question comes from Christian Sgro from Eight Capital. Your line is now open. Hi, good morning. For my first question, I want to ask a follow-on to Justin's first question earlier. Back to ARR and that bridge to the revenue profile, would you encourage us to think of the quarterly ARR as a measure of, I'll call it, 6-month or 12-month subscription revenue growth? Like, how much would you encourage us or, you know, not encourage us to, to look at the ARR metric in the near term? You know, especially given we have pointed guidance for the full year that helps to guide, sort of the financial picture. Yeah, no, absolutely. Like, ARR continues to be, as we've mentioned in the past, a really strong leading indicator for future revenue. And you're right, there is about a 6-month, it can be up to 12-month, depending on the size of the new customer, sort of implementation, onboarding, and then flow through to revenue recognition. So certainly continue to encourage you to look at ARR as a leading indicator for top line. And I'd also encourage you just to look at historical flow-through timing when you look at ARR adds relative to future subscription revenue growth. Okay, that's helpful, Josh. In the second one, I'll poke at the inorganic strategy, your opportunity to consolidate the market. Is there any change to what you're looking out for there in terms of, you know, product or reach? And just what you're seeing maybe from a valuation perspective, or if that might depend on the asset. Just any color there would be helpful. Yeah, so we continue to be laser-focused on the strategy we previously spoke about. We're looking at assets that really have a positive impact on our customer base and on our mission of transforming learning. We're looking at assets that fit nicely into our open platform ecosystem, and we're actively out in the market looking at opportunities. The valuation, to your point, will depend on the asset and the particular requirements, but we are actively out there looking, and we'll continue to do so. Great. Thanks for taking my questions, and I'll pass the line. Our next question comes from Brian Peterson from Raymond James. Your line is now open. Thanks, and congrats on the quarter, guys. So, I just wanted to hit on the pipeline of opportunities in North America. I know that's been up for debate. You know, would love to understand, I know, again, I know the first quarter is not a big one for bookings, but what are you seeing from the pipeline overall in North America, and what are you expecting this year? Good to speak to you again, Brian. We're actually seeing a healthy pipeline generation in Q1. And you know, as we've mentioned on previous calls, we're seeing the market slowly starting to rebound from where it was impacted by the pandemic. And so that slow, steady rebound globally is good. I think the macro conditions are still what they are. I think that's a pretty global condition for all software companies right now. But in our space, we seem to be seeing a bounce back. You know, it's not bouncing back as fast as we would hope at this stage, but it's still bouncing back. And I, you know, I think that gives us very good confidence in the next 12 months as we continue to execute well on the plans that we've got. And I think, Brian, the other big thing is our ability to differentiate in the market now is substantial. We've got great products; we've got great products in the pipeline. We're even seeing some of the work that we've done around sustainability reports now showing up as key requirements that are weighted in these RFPs. So our competitive differentiation and ability to win these RFPs, as we see more and more of them quarter over quarter, puts us in a very good spot to execute on the year. No, that's great, and obviously, it was great to see the Hawaii win. But it also, you know, thinking in the Netherlands, in some large win activity overseas, like, are there certain markets where you're making- Yeah. M ore calculated bets? And how do we think about that balance of going to attack those markets, but also understanding that you guys are focusing on margin expansion? How do we think about that balance? Thanks, guys. It's not, we're not trying to do every market everywhere in the world. We're very focused on key markets that we look at as gateways into the broader region and going as deep as we can in those markets. You know, for example, just in Singapore, where we're now over 70% market share, and we're trying to go win some more. You know, we're obviously winning more opportunities in the Netherlands, in Colombia, just recently in Mexico, helping the team to expand in that region as we've opened up our entity. And the U.S. is still our most competitive market. If you look at the market itself, we still see tremendous opportunity. In North America, it's still 40%+ legacy technology that's being used. We see that as an opportunity for replacement. And then globally, it's around 80%. And so long runway of opportunities to pursue globally. And our approach now is really zeroing in on the key markets that we think will be critical for us to winning the broader regions, and that approach seems to be working well. Great. Thanks, John. Our next question comes from Thanos Moschopoulos from BMO Capital Markets. Your line is now open. Hi, good morning. You kind of touched on AI in your prepared remarks. I'm sure we're gonna hear more about it, and your recent product developments at the upcoming user conference. But in general, can you talk about the role that AI is starting to play in RFPs and your competitive positioning in that regard against your largest competitors? We're definitely seeing AI come up in the conversations with our clients globally. For example, well, my trip in the fall and spring into the New York area highlighted that very strongly for me when almost 100% of the questions that came from the audience were AI related in education. So, you know, we see a tremendous opportunity here. And as you recall Thanos, we've been working on AI and our core technology for over a decade, doing everything from closed captioning videos to predicting student grades with 87% accuracy by week three to being able to create adaptive learning pathways. And now, beta testing with the hope of launching technology around generative AI being incorporated into the platform to do things like question generation, content generation, assignment generation, and many, many other workflows. So we see this as a tremendous productivity tool to really help our clients, and we see this as an opportunity for us to grow as we continue to expand our product portfolio in this space. And I think this will be yet another competitive differentiator for us in our markets as we continue to pursue opportunities globally. So it's not showing up in all RFPs at this stage for clarity, but we're starting to see more and more asks around artificial intelligence in our process. Great. Going back to your comments on the macro, and how it's looking better for you guys. Does that apply to both higher ed and corporate? Just, I mean, given some of the recent data points in the corporate market, some other companies are having challenges, obviously, but are you, you're also seeing a bit of a bounce back in corporate as well? For clarity, like, we understand the macro conditions that are going on in the broader software space. That said, we are still seeing our conditions slowly improving quarter-over-quarter, year-over-year. And that we do see in corporate and in higher education, but I wouldn't say we're seeing it more pronounced in one over the other. You know, I think the TAM is much larger in corporate, and we're taking a very focused approach in terms of how we're winning training organizations or employee organizations that really want to do the best job they can with the best opportunity. You know, it still does take longer to close than it would have pre-pandemic, but the team's doing a good job executing on deals, and quite impressed with their execution on not only deals, but also pipeline generation today. Great. I'll pass the line. Thanks. Our next question- Thanks. Comes from Suthan Sukumar from Stifel. Your line is now open. Good morning, gents. Wanted to touch on adoption and upsell traction with Creator+ and Performance+. Could you provide an update on sort of how that upsell expansion motion has been trending within the base? Yeah, so we continue to be happy with our ability to expand there. If you look at our performance since IPO, we've grown from about a 33% attach rate to about 50%. A lot of that has been driven by the uptake of Creator+. The new efficacy data that we have around it from customer usage is very impressive. We're seeing reductions in the time and cost to create courseware, coupled with an increase in student success rates, thanks to courses built by Creator+. And so this attach rate is growing. We're pleased with the progress we've made with Course Merchant, with Creator+, and we continue to focus our R&D efforts and our selling efforts to drive it. Very happy with progress. Great. Thanks for that color. As you guys look ahead, you know, for growth this year and beyond, how are you guys thinking about the mix of net new versus expansions, you know, as part of your growth looking forward? Well, I think one of the things that stands out for us as a company, especially compared to our peers, is the net new logo adds. I think the fact that most of our growth today is coming from new logos is highly differentiated in our space. That said, why we're putting so much energy into these new products, whether it's Creator+ or Achievement+, or the work that we're going to be launching this summer around AI, all of these things are going to contribute to us being able to expand with existing customers. And there's no easier way to expand than adding new products to existing customers. It's also why we're leaning in on the M&A growth lever. We talked about Course Merchant in the past. We're seeing great traction with that product. We'd like to do that with some others as we look forward into the future. We've got this winning learning platform. It's an opportunity for us now to expand modules and to drive NRR up. You know, long term, you know, we, we wanna get to more of a balance versus it mostly being driven by new logos. It'd be great, for example, next year to get to two-thirds coming from new logos and a third from existing. But we'd like to continue to tick it up as we drive more innovation into the space. Great. Thanks for that, color, John. I'll pass the line. Thank you. Our next question comes from John Shao from National Bank. Hey, good morning. Thanks for taking my question. Could you please give us some colors on your partnership channels? More specifically, it's been more than a quarter since announcement of the new benefit partnerships. So any updates from that relationship so far? Well, so, I didn't quite catch the partner name that you mentioned there. The new benefit partnership, the one you announced last quarter. Okay. So, I think, I think generally speaking, we're seeing good traction with our partners globally. We've got a new head of partnerships put into place, and he's doing a fantastic job, building out relationships with partners globally. I'm expecting to see some great progress there with partners in terms of revenue generation, co-selling activities, being able to come to market with really innovative technologies. And, you know, we're optimistic that a lot of these partners will be at our conference this summer in July in Toronto, as an opportunity to showcase what their technology and ours can do together. Another good example of a good partner would be Unity. So looking at VR, AR, augmented reality, coming together with our learning platform to support new types of use cases, to support learners in, whether it's from safety training to, being able to manage complex plants globally. Leveraging these technologies together is gonna have a big impact for a lot of our big corporate clients and also some of our education clients globally. You know, that partnership in particular, I got excited about when I was in Singapore, as they're looking to put together both our technology and their technology to support a number of initiatives in that country. And today we have 1,800 different technologies that integrate in. As we continue to leverage those partnerships, I think it will have a big impact on our growth in the future. And just building on John- For the color, John. This is another great example. It's a great example of our R&D investment, really driving the ability to be a platform in the ecosystem. Those partners benefit from our APIs, our SDKs, and our leading adoption of edtech standards, which results in just seamless user experiences for our learners and for our educators. Okay, thanks. I have a question to Josh on professional services. The margin was down year-over-year. Just wondering if that's more of a one-off, given the nature of the current projects? Yeah, thanks, John. Yeah, you actually saw, Q1 was a step from Q4. So I believe Q4 was around 26% margin, Q1, 30% margin. There is some movement quarter to quarter based on the type of engagements within the quarter. We tend to think of it in that sort of 30%, give or take, services margin level, and so we're pleased with Q1 as being a good representation of that. Okay, thanks for the colors. I'll pass the line. Our next question comes from Paul Treiber, from RBC Capital Markets. Well, thanks very much, and good morning. Just hoping that you could elaborate a bit further on win rates. You've seen good movement upwards in win rates. Is that uniform across markets and geographies, or do you see differences depending on the category that you're competing in? I mean, quarter to quarter it moves a little bit. Generally, we've seen the win rate continue to tick up in most markets globally. In our most competitive markets, we're winning now more than half the time. Even in corporate, we're seeing our win rates continuing to tick up. It's, it's good to see the team continuing to invest, but I think it's also a product of the fact that we're investing in our technologies, to support all the different types of use cases as we expand into these new markets like corporate. You have to remember, we've got the same competitors that we're competing against in North America, globally. So it's still Moodle, Blackboard, you know, and Instructure, and it gives us the ability to really differentiate as we add these new capabilities to support better learning experiences around the world. I actually think, many parts of the world are embracing a lot more of our technology faster, too. So if you look at, clients in Mexico, as an example, a visit that I did recently, they're embracing all of our AI. They're embracing, the work that we're doing around Creator+. They're embracing adaptive learning pathways. They're really leaning in to driving better retention, better engagement, and better impact, for their students, and trying to leapfrog, what folks are doing around the world. So it's, it's very encouraging to see what many of the top universities are doing globally, with our platform. Switching to deployment times, you know, I assume most of your wins, at least in education, are migrations from existing LMSs. How much? Yeah. Like, resistance to change or, like, just, much of the deployment is consumed with migrations? And then will the you mentioned the, in the prepared remarks, the bulk course importing. Oh, to what degree will that help reduce friction, and how are you trying to reduce friction overall with just migrations? Yeah, I think the key is we've put a lot of work into automating the deployment. So the actual setting up of the site is the same day the contract is signed. You know, so it's not hard to actually set up the actual site itself. The course conversion can be done in bulk, so we help clients move, in some cases, hundreds of thousands of courses, sometimes over a weekend. So that is a highly automated activity. Integrations for many of the systems are now fully automated. Some require recipes to be created, if you will, to trade data back and forth, but by and large, we're driving automation there. However, it still takes time to communicate the change, and so the bulk of the time that clients take, and usually it's around four months on average, to make a change from one system to ours, is largely training up faculty, making sure there's good communication, traditional change management, and making sure things are done really well. For example, I just got a great note from one of our top clients in New York, talking about how more of their colleges went live this week, and how excited they were about the partnership that we had with D2L, and how well our team performed in giving them confidence as they took that next step of going live. They felt very confident in the ability for us to make sure their faculty and students were very happy. And so that, that activity our team is getting to be world-class at, and we'll continue to drive our efforts to reduce the time it takes to have these clients transition over from legacy platforms. And then, just lastly from me, just you mentioned that, the, the Rule of 40. You know, directionally speaking, do you see the Rule of 40 as, like, a, a long-term aspiration for the company? And then, you know, the upside from, from 25, like, would you lean in, or would you see potential more upside on the growth side or the, the margin side of that equation? Yeah. Thanks, Paul. Yeah, we, we do look at, you know, Rule of 40 benchmarks as a helpful guide for us. We'll continue to lean into that balanced growth and profitability, and I think the word balance is really important. So making sure we're making the right investments to win and compete in the market as we have while incrementally improving our profitability over time. And, and so the medium-term outlook we provided as part of the, the Q4 MD&A a few months ago, I think provides some additional color on that, but it'll continue to be a balance, but making sure we're making the right investments to delight our customers, to bring world-class experiences to the market, and to really create a category leader over time. And, and so you'll, you'll continue to see that balance over time. All right, great. Thanks, thanks for taking questions. We currently have no further questions, so we'll hand back over to John Baker for any final remarks. All right. Thank you very much, operator, and thank you everyone for joining us on today's call. It's a very exciting time for us at D2L. Hope to see many of you at our Fusion conference, and in the meantime, have a great day. Thanks, again. Talk soon. That does conclude today's conference call. Have a nice day. You may now disconnect your lines. Goodbye.