Good morning, ladies and gentlemen, welcome to the Kinaxis Inc. fiscal 2022 fourth quarter results conference call. Currently, all participants are in a listen-only mode, and following the presentation, we will conduct a question-and-answer session. Instructions will be provided for you at that time to queue up for questions. I'd like to remind everyone that this call is being recorded today, Thursday, March 2nd, 2023, and I will now turn the call over to Rick Wadsworth, Vice President of Investor Relations at Kinaxis Inc. Please go ahead, Mr. Wadsworth. Thanks, operator. Good morning, welcome to the Kinaxis earnings call. Today, we will be discussing our fourth quarter and year-end results, which we issued after closing markets yesterday. With me on the call are John Sicard, our President and Chief Executive Officer, and Blaine Fitzgerald, our Chief Financial Officer. Before we get started, I want to emphasize that some of the information discussed on this call is based on information as of today, March 2, 2023, and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, you should review the forward-looking statements disclosure in the earnings press release as well as in our SEDAR filings. During this call, we will discuss IFRS results and non-IFRS financial measures, including adjusted EBITDA and certain constant currency results and metrics. The reconciliation between adjusted EBITDA and the corresponding IFRS result is available in our earnings press release and in our MD&A, both of which can be found on the IR section of our website, kinaxis.com, and on SEDAR. Participants are advised that the webcast is live and is also being recorded for playback purposes. An archive of the webcast will be made available on the investor relations section of our website. Neither this call nor the webcast archive may be re-reported or otherwise reproduced or distributed without prior written permission from Kinaxis. To begin our call, John will discuss the highlights of our quarter, as well as recent business developments, followed by Blaine, who will review our financial results in outlook. Finally, John will make some closing remarks before opening up the line for questions. We have a presentation to accompany today's call, which can be downloaded from the IR homepage of our website, kinaxis.com. We will let you know when to change slides. I'll now turn the call over to John. Thank you, Rick. Good morning, and thank you all for joining us today. Starting with slide four, the strong momentum in our business continued in the fourth quarter as reflected in key results, including SaaS revenue growth of 26% or 32% in constant currency, total revenue growth of 44% or 51% in constant currency, and adjusted EBITDA margin of 21% or 22% in constant currency. Moving to slide five. Quite simply, 2022 was a phenomenal year for Kinaxis. Total SaaS revenue grew 22% or 28% in constant currency. Total revenue grew 46% or 54% in constant currency, and we have achieved a year-end adjusted EBITDA margin of 22% or 23% in constant currency. If you consider our constant currency results, you will see that across all metrics, you dramatically outperformed our initial guidance for the year. I couldn't be prouder of the team for their remarkable efforts in 2022 and their commitment to working towards another stellar year in 2023. Turning to slide six. Key metrics we monitor not only highlight significant success in 2022, they give us great confidence and optimism for the year ahead. Specifically, we won approximately 25% more new customers than in 2021, and roughly 40% of our new wins coming from mid-market customers, a part of our TAM that we've only just begun to address. Including acquisitions, we grew our total customer base by 40% over the year, giving us a solid foundation for future expansion. Constant currency annual recurring revenue growth accelerated to 26% compared to 21% in 2021 and continues to point to opportunities for accelerated SaaS revenue growth in the years ahead. I consider this a clear sign of inflection for our business. As of December 31st, 2022, roughly 86% of our SaaS revenue guidance for 2023 is in RPO or committed backlog. We typically aim for a result closer to 80%. 86% provides us with exceptionally strong visibility. Blaine will share more details in a few moments. Our 12-month rolling pipeline continues to grow at a pace that suggests sustained strong market momentum ahead. We began accelerating investments in our sales team during the second half of 2022. To ensure we have adequate coverage to capture the full potential we see ahead of us, we are continuing to prioritize investments in sales and marketing in 2023. I continue to believe we are in the early days of what I believe is a global transformation for supply chain management solutions. All these achievements have been won while simultaneously moving our ESG program forward. I'm thrilled with our AA A ESG rating from MSCI and our inclusion in the recently released Sustainalytics 2023 top-rated ESG companies list for the software category. Moving to slide seven. Building on this success, we are in the very early stages of several exciting growth strategies that have increased our total addressable market by a factor of nearly 10, compared to less than just three years ago. As you know, we've penetrated deeper in our verticals with our mid-market strategy, where we're having great success. Now we are also beginning to penetrate smaller companies through our relationships with over 25 value-added resellers. We are excited to see how they will perform in 2023 and beyond. We've also expanded our vertical market reach through the addition of retail. After substantial product work, we are providing ourselves in early bellwether global counts, and we'll continue to take a focused approach to new opportunities in this market through 2023. Finally, and significantly, we are no longer only a supply chain planning company. Thanks to our recent acquisition of supply chain execution product innovator MPO, we are now in the position to offer an end-to-end supply chain management solution. The planning and execution markets are broadly seen by industry analysts as being of similar size. We see substantial opportunities to sell our supply chain execution products, both standalone and as expansion to existing and new RapidResponse customers. Of course, all of these opportunities complement existing growth vectors through our own R&D innovations, including our recently announced machine learning AI-based solution, Planning.AI, growth from our solution extension partners, and growth through future potential acquisitions. We're also thrilled to be able to offer our supply chain management platform in more ways than through our private data centers, and now through public cloud with Microsoft Azure and Google Cloud Platform. This will ultimately enhance both the efficiency and effectiveness of product delivery and potentially offer new expansion opportunities down the road. While we acknowledge that the omnipresent uncertainty and disruption in the world increases risk to any outlook, we remain overwhelmingly positive about 2023. We are accelerating our SaaS revenue growth outlook compared to 2022, while simultaneously continuing to invest where most appropriate, with a priority on sales and marketing. These investments are necessary to solidify our position as a leader in the flourishing supply chain management space. Despite entering a low period in the normal cycle of our subscription term license revenue, we're anticipating yet another Rule of 40 performance for 2023. As Blaine will soon explain, starting in 2024 and over the midterm, we anticipate achieving higher profitability margins with even faster SaaS growth. These are very exciting times. With that, I'll turn the call over to Blaine. Thank you, John, good morning. As a reminder, unless noted otherwise, all figures reported on today's call are in U.S. dollars under IFRS. I'll also be sharing certain non-IFRS constant currency results and metrics, which estimate how our business would have performed, excluding the effect of foreign currency rate fluctuations. We outline our methodology for the constant currency calculations in the news release. While they are only estimates, we believe they better illustrate the ongoing underlying momentum in our business throughout 2022. We will continue to monitor the foreign currency environment. We will only include constant currency disclosures in the future if the environment produces results that are not fully representative of our underlying business performance year-over-year. Starting on slide eight, total revenue in the fourth quarter was up 44% to $98.5 million, and up 51% on a constant currency basis to $103.5 million. SaaS revenue grew 26% to $58.8 million, and was up 32% on a constant currency basis to $61.8 million. As you would expect, acceleration in our annual recurring revenue growth has been flowing through to higher SaaS revenue growth. Subscription term license revenue was $9.1 million, versus $1.4 million in Q4 2021. This item largely follows the normal cadence of renewals among our small group of on-premise customers or those that have the option to move their deployments on-premise. Our professional services activity was strong again, resulting in $26.2 million in revenue, or 54% growth over the fourth quarter of 2021. The ongoing rapid growth primarily reflects our acceleration in new customer wins. Generally, this revenue item varies from quarter to quarter based on the number, size, and timing of customer projects underway, as well as the proportion of work assumed by partners. Maintenance and support revenue for the quarter was $4.4 million, up 37% from Q4, 2021, reflecting recent growth in the base of revenue from our small group of on-premise customers. Fourth quarter gross profit increased by 40% to $61.3 million as a result of strong growth across all revenue items. Gross margin in the quarter was 62% compared to 64% in Q4 2021, primarily due to the negative impact of a strengthened U.S. dollar on conversion of foreign denominated SaaS revenue, as well as continued investment in professional services headcount to allow for ongoing customer growth. Together, these factors offset the impact of the greater proportion of high margin subscription term license revenue in the quarter. Adjusted EBITDA was up 87% to $21.1 million, with a margin of 21% compared to 17% in the fourth quarter last year. On a constant currency basis, Adjusted EBITDA was 22% of revenue. These increases reflect the revenue growth we've been experiencing, which outpaced the growth in our total cost base. Our profit in the quarter was $8.6 million, compared to a loss of $2.9 million in Q4 2021. Cash used by operating activities was $2.3 million, compared to $3.2 million generated in Q4 2021. The change largely reflects normal periodic fluctuations and balances of operating assets and liabilities, most notably receivables, including unbilled receivables related to subscription term license revenue and deferred revenue. At December 31st, 2022, csh equivalents, and short-term investments totaled $225.8 million, slightly lower than $233.4 million at the end of 2021, despite $33.8 million in cash being used to finance our recent acquisition of MPO. Overall, it was a very strong fourth quarter that contributed to a hugely successful year. Moving to slide nine, I'll let you review the annual results in detail. For now, I would just like to reiterate what John said at the outset. In 2022, we significantly exceeded every key metric for which we gave guidance, including total revenue, adjusted EBITDA, and even SaaS revenue growth when you compare our constant currency result of 28% growth to the initial guidance of 23%-25% growth. That's a fair comparison as we built our initial guidance assuming a much more stable currency environment than transpired. In fact, all our constant currency figures give the best view of how strong our outperformance was during 2022. On a reported basis, we had Rule of 40 performance for the year, but on a constant currency basis, we were a Rule of 50 company. We define these calculations as our SaaS revenue growth rate plus our adjusted EBITDA margin. I'd like to thank the whole Kinaxis team for an amazing 2022. On to slide 10, you can see some of our key metrics. We added $53 million to our annual recurring revenue over 2022, 47% more than we did the previous year. At the end of the year, our ARR stood at $274 million, or 24% higher than at the end of 2021, including currency impacts. Our constant currency ARR results show how currency movements mask even stronger underlying growth. I'll remind you that we view ARR as the best metric to understand the underlying momentum of our subscription business. We are incredibly encouraged to continue to see the growth rate continue to climb. It supports our view that we have more room to accelerate SaaS revenue growth ahead. Looking at slide 11, our remaining performance obligation rose to $598 million, up 24% from December 31st, 2021. Of that total, $550 million relates to the SaaS business, up 30% year-over-year. Of the SaaS amount, roughly $230 million converts to SaaS revenue in 2023, representing roughly 86% of the midpoint of our SaaS revenue guidance for the year. This is higher coverage than normal and gives us good visibility heading into 2023. Further details on our RPO can be found in the revenue note to our financials. Turn to slide 12. We are very excited about 2023 and pleased to be able to introduce guidance for the year. We expect 2023 SaaS revenue to grow between 25%-27% over our 2022 level. This implies a midpoint of approximately $269 million in SaaS revenue. As you know, subscription term license re-revenue is driven by the timing of renewals of our on-premise customer contracts. For 2023, we expect this revenue item to be between $12 million-$14 million. Based on our renewal cycle as it exists today, and assuming continued very high retention rates, we currently expect 2024 subscription term license revenue to be under half the 2023 amount. It should then rebound to near the $20 million level in 2025, followed by another strong renewal year in 2026. Obviously, a lot can change over that time, we will update with specific and annual guidance on our regular schedule as we approach the out years. We expect total revenue for 2023 to be between $420 million and $430 million. This guidance implies another strong year for professional services revenue, which we expect will be driven by ongoing success in winning new accounts in 2023. Throughout the year, we will continue our efforts to shift as much of this work as possible to our system integrator partners. We are targeting a blended gross margin of 60%-62% and providing guidance for adjusted EBITDA margin of 13%-15%. I will speak to these figures in more detail shortly. The market for supply chain management and our own unique differentiation within it have never been stronger, so we are continuing to invest, most importantly in sales and marketing. As a result, we expect sales and marketing to be slightly higher as a proportion of revenue than it was in 2022. Whereas we expect R&D to be lower and G&A to be roughly similar in those terms. Consistent with our move to an increase in public cloud strategy and the completion of work to our new head office in 2022, we expect our capital expenditures to reduce substantially from $18.2 million to roughly $6 million-$8 million in 2023. Going on to slide 13. Returning to my comments on adjusted EBITDA, as we stated last call, our approach in 2023 is to once again balance our SaaS growth acceleration with profitability, while keeping in mind that our subscription term license revenue has roughly 100% margins and is expected to decline to a third of the 2022 level based on renewal cycles. As you can see from the slide, the expected decline in subscription term license revenue alone accounts for roughly 70% of the forecast gross margin decline and roughly 2/3 of the forecast adjusted EBITDA margin decline. Other factors impacting margins include an expectation of a higher proportion of lower margin professional services revenue in the mix than in 2022. Our transition to a hybrid private public cloud hosting model, which sees some duplication of cost initially. Absorbing the full year impact of last year's incremental investments and new strategic investments in key operating functions. As John mentioned, the key priority for new hires in 2023 will be in the sales and marketing area. We will also continue to invest in professional services to keep pace with demand while slowing the rapid growth we've experienced in R&D personnel. We are pleased with our balanced approach to growth and profitability. If we achieve our 2023 targets, we will be a Rule of 40 company gain, which is generally a guiding factor in how we operate our business. Looking at slide 14. We currently view 2023 as a bottom to our margin profile, with improvement starting in 2024 and over the midterm. We fully expect to be able to capitalize on the strong underlying demand in our market and the numerous early strategic growth initiatives we have underway. First, we have been in a phase of rapid new customer growth, which naturally attracts somewhat lower margins than expansion business. However, this does set us up for the expand phase of land and expand, which generally has a higher margin profile. We also see efficiencies coming from our public cloud strategy, a declining proportion of professional services in the revenue mix, and tapered investment in R&D and G&A as a percent of revenue. While we provide a specific annual guidance as the usual times, we are actively working towards a midterm two to four year model that ultimately sees SaaS growth of 30% or higher and adjusted EBITDA margin approaching 25% or higher. Basically, a Rule of 50 company, if you will. While I appreciate some may want a more specific timeline, we don't intend to force anything unnatural. We will continue with our very successful approach of taking cues from our market and executing accordingly to maximize our opportunities and continuing to develop our profitability on our path to being the dominant supply chain management player. With that, I will turn the call back to John. Thank you, Blaine. While all the metrics we've discussed certainly point to a very successful 2022 and the potential for another strong year in 2023, the truest measure of our success continues to be the quality of companies who put their trust in us. In past calls, we've shared the names of some customers who joined during 2022, including Kimberly-Clark, Siemens Healthineers, Bayer CropScience, Carlsberg, NI, or National Instruments, as they used to be known, and ekaterra, maker of leading tea brands like Lipton and TAZO. I'm pleased now to highlight a few more. I'm thrilled to announce automotive giants General Motors and Mazda to our portfolio of customers. In our industrial vertical, farming equipment manufacturer AGCO and the construction industry innovator MiTek were also added. In high tech, we added telecom network equipment provider Ciena, and in pharmaceuticals, drug discovery firm Shionogi. In a year of record-breaking net new customers, the full list is so much longer, of course, and includes some of the world's best-known brands. What all this success tells me is that despite the widespread turmoil and uncertainty in the world, and possibly because of it in part, the urgency for digital supply chain transformation has never been greater. We continue to see that as a long-term driver for our business. I'll end the call by thanking the global Kinaxis team, which exceeded 1,500 quality individuals at year-end and is still growing. They not only do the hard work behind the results that Blaine and I are so privileged to present each quarter, but they are the reason that Kinaxis continues to be recognized for being such a great place to work wherever we have offices. On behalf of this great team, we look forward to delivering a tremendous value through 2023 and beyond. With that, I'll turn the line over to the operator for Q&A. Thank you. If you would like to ask a question, simply press star one on your telephone keypad. If you would like to remove yourself from the queue, please press star one again. We will take our first question from Richard Tse with National Bank Financial. Please go ahead. Yes. Thank you, and thank you for all that information on the margins going forward. You know, John, you talked about, you know, all these opportunities, and the Dexter shows, you know, retail, small companies, supply chain. Obviously a lot going on there. Can you maybe talk about the timing of the go-to-market for those growth opportunities in terms of, you know, when you plan to really lean in on them? Frankly, the time is now. We are actively engaged in all of those vectors at the moment, including the smaller end of the customer TAM, which adds approximately 12,000 opportunities of working through our 25 VARs. That VAR group is continuing to grow. We're actually thrilled with the start of that program, recognizing that, you know, success won't happen overnight. We're, you know, we're being very patient. We're optimistic, but obviously being very patient. Many of those VARs are in geographies where we are not, and so we're excited about that too. That's another expansion opportunity. On the retail side, we're working with an absolute world-dominating kind of retail subsector. We cannot wait to share some of that with the public. You know, certain names are just known by virtually every human on the planet. We're thrilled there. Frankly, you know, we're firing on all cylinders across all of those growth vectors. Okay. Like if I sort of look at the, let's say, the existing business as it was, if you add all these things on top of it, I look at your midterm growth rate for SaaS, it's 30%, it almost seems the conservative in light of those opportunities. Like, can you help me sort of reconcile that? Great question. We see there's a lot of upside. But obviously I have my own Excel spreadsheets and my own financial models I need to work with. We're gonna be prudent in making sure that we have a very good sight into where the future is going. You know, John mentioned a couple of areas that we think that we can really expand into, but, you know, we have the MPO and the connector that we're building that will be in the first half of the year that I think is gonna present a lot of opportunities. We have Planning.AI ready to go for us as well. We have our secret project from an acquisition we did back at the start of last year that should be in the first half of this year as well. There's a number of different opportunities, and we're excited to be able to obviously exceed your expectations and our expectations as we move forward. As of right now, from what we see today, I think we're prudent with saying our midterm growth rate gonna be exceeding 30%, which we're pretty excited about. Okay, great. Thanks, guys. Our next question will come from Daniel Chan with TD Cowen. Please go ahead. Yeah. Thank you. The RPOs come in at 86% of the midpoint of next year's SaaS guidance. Is there something different about this year where you'd expect a change in that ratio, which was typically in the lower 80% range? With higher sales pipeline activity and the stronger deployment activity, given your professional services mix expectations, I would've expected that ratio to compress, if anything. Yeah. That's a great question. I'm happy you raised it. 86% is the highest that we've seen that going into a year. I think you've all seen some of the macroeconomic environment that we're facing right now. We're being prudent about... There's some things out there that are happening in the economy that we just want to be careful about. It's not every day that you see a lineup of Microsoft and Amazon and Google doing layoffs. That has us cautious about the outlook. Now, all of our metrics are showing that things are looking really strong for us in the year, so we're not worried on a quantitative perspective. I think the qualitative aspects of the again, the environment that we're in, we're being prudent right now. Okay. That makes sense. Thanks for all that color. I wanted to dive into the professional services a bit. Looks like you're looking for a continued increased mix next year. Just what's driving that, and what are your partners telling you? Well, frankly, you know, 2022 was a record-breaking year for customer adds, obviously, that was reflected in some record-breaking revenue from professional services for us as customers were working to accelerate their transformations. Make no mistake, you know, Our partners, if you will, are as tapped out as we are in keeping pace with the number of transformations that are happening. Again, you know, I look at professional services as being transient revenue. Of course, when you see an acceleration in net new accounts and they all wanna see value as quickly as possible, we flood the streets not only with our resources, but obviously, our partners are flooding the streets with theirs to bring about that value as quickly as possible. You know, so long as we continue along this trajectory, by the way, and this is what, Blaine was saying, we're gonna continue to invest. We're not gonna be that company that delay go, you know, go lives by three months 'cause we don't have enough people and our partners don't have enough people. We have a quite a lot of visibility in the pipeline that gets shared with our partners, obviously. We're keeping pace. So far, we've been able to keep pace with the net new wins. Between us and our partners, we're keeping pace with the delivery of value that comes with RapidResponse. I think you'll continue to see that, so long as we continue to see these types of record-breaking net new wins. Thanks for that, John. Just one more if I can. What happens when the supply-demand dynamic starts to stabilize in the professional services space? Do you think you'll be able to sustain these levels of professional services, or will you have to cede some revenue back to them? How do you think about ramping up your team as that balance is achieved? Thank you. We absolutely have a partner-first strategy. There's no question. The last thing we're going to do is put our hands in the pockets of our partners. We want them to be wildly successful, and if anything, we're the backstop, you know, for ensuring that our customers are receiving the value for their subscription as quickly as possible. In terms of, you know, where we see, you know, how far ahead do we see this? You know, honestly, I still say this inside of Kinaxis, it's chapter one, book one, maybe page two, you know, maybe. There is so much yet ahead of us. You know, we're clearly not in every vertical. I remember talking about our TAM being $3,000, it's, you know, well north of $20,000-$30,000 when you start adding the mid-market and the small to medium, you know, size enterprises. When you start leveraging VARs that are in geographies where we have no footprint whatsoever, you know, we see a very, very long path ahead, you know, in terms of the demand for RapidResponse. Thanks, John. Our next question will come from Thanos Moschopoulos with BMO Capital Markets. Please go ahead. Hi, good morning. Clearly from the strong results and the guidance, it seems like you're not seeing any sort of a slowdown. Just to be explicitly clear, was there any change at all in customer behavior in recent weeks in any geographies or verticals, anything to call out, or is it still status quo what you're seeing? Yeah. I'd say I'd say It's a great question. Obviously we're watching these market dynamics probably as closely as everyone else. You know, I wouldn't say there's been a shift in their attention. You know, I've had probably 150 or so one-on-one conversations with chief supply chain officers over the last couple of years. The narrative is very, very similar across all of them. Boards are asking their CEOs, "What will you do next time?" Supply chains are clearly not as resilient as they thought they were. You know, there's a lot of board-level attention on supply chain excellence and supply chain transformation. The one thing I would say is that, we're seeing, you know, a slight elevation, if you will, or, in the process, you know, where boards are required, you know, board signature required for projects like this. That's somewhat new. Now, I will say this, that is, you know, that is on the backdrop of a diminishing overall sales cycle. We've been monitoring that for several years, and we saw a drop in average sales cycle in 2022 than we saw in 2021. 2021 was a drop from 2020. The, you know, so two things are happening. I think sales cycles are shrinking a bit, so that's good. We certainly hope to see that trend continue. Approvals, governance, if you will, is going right up to the board level in many cases. Okay. Thanks for that color. As far as the clouds, you've committed to $100 million of cloud capacity over the next seven years. How do we think about just over the next year or so, the pace of the ramp? I mean, is 2023 for nearly a year, getting your feet wet and being kind of, you know, cautiously ramping it up, or how do we think about how that evolves? Why don't I start and then hand over to John. Yeah, Microsoft Azure is up and running. We have customers already in place right now using that on our platform. Google is the agreement we have, we committed to $100 million with them over a seven-year periods. That is expected. We have a bellwether company that's gonna be very well known, we'll be starting it off fairly soon. We're excited to get that going as well. There's obviously a lot of demand. We're making sure that we're focusing on newer customers that wanna come on using public cloud. Our existing customers are very happy with the private cloud environment that they have. We are planning at least right now to focus on the new customers and then eventually potentially some migration where it makes sense. Just to add to that, as Blaine said, we're, you know, we're fully operational with Azure, been very, very close with hosting on Google Cloud, and we're thrilled with this. Look, I might have mentioned this on past calls. We saw this as an existential threat to our business as it relates to capacity piece. You know, we saw, if you will, the momentum building and didn't wanna be in a position of not having infrastructure to host our customers. This gives us that kind of scale. It prepares us for that scale. We may not just stop at those two. You know, we'll see in the months ahead whether others are added just to give us that level of flexibility. We're thrilled with the relationship. The Google Cloud folks. We're working exceptionally well with them and quickly with them to get RapidResponse fully operational on their environments. Great. Thanks. I'll pass on. Our next question will come from Kevin Krishnaratne with Kinaxis. Please go ahead. Hey, hey there. Yeah, good morning. John, just a question for you. You answered a previous question, in terms of being chapter one, you're not in every vertical. I was wondering if you could call out maybe some of the verticals that you're not in that you see as most exciting and biggest near-term opportunities and sort of, you know, how you think about your plans to get into those. Is that M&A? Is it partner led? Anything you could share there would be appreciated. Absolutely. I'm sure I've said this before, I'm 100% sure I've said this before, that we are actually in more verticals than we promote openly. Our model has always been to find very strong bellwether accounts, prove ourselves as scalable, you know, prove our fitness for those verticals and then work to expand from that point. You know, we are, you know, when I think about, you know, the verticals that are most interesting, certainly any vertical related to energy right now has a lot of interest. Again, I think these are, you know, these are verticals that are actually very important for humanity. You know, achieving very efficient energy distribution is pretty critical. We're pretty excited about that sector. Certainly, there are other ones. When I think about retail, I don't think about it as one sector. Retail, I mean, retail is larger than the sum of all of the other verticals that we serve because there are so many subset segments when you think about things like quick serve restaurants and pharmaceuticals, pharmacies and things like that. It's not just garments, let's just say. I look at the opportunity in retail quite a bit as we expand through all of the sub-segments, which is really exciting for us. Got it. Appreciated. A few clarifications for me. In the MD&A, you talked about that you've maintained your net retention levels being around over 100%. Any thoughts on giving us a bit more detail there on, you know, is it 110%? Is it higher than that? If not, if you can maybe talk about net retention levels, mid-market versus enterprise. Sure. I'll jump in on that. First off, it's, I think we've always historically talked about our net revenue retention being over 100%. There's a healthy margin, and we're not afraid to admit there is a healthy margin between where we're at and the 100% level. It's helped by the fact that we have extremely high gross retention. Our churn levels is very low. We're very fortunate that our customers really love our solution. We're in the high 90%s for our gross retention. The other piece of that is the expansion. Now, we don't provide this because it's hard to do apples-to-apples comparisons for our customers and our net revenue retention versus others, although we have a very comparable or competitive NRR. The big difference is that when our customers first jump onto our platform and come onto our platform, they usually come out on at a much higher level than other companies would have. The initial contract that we have right off the bat is generally a pretty high amount. Now, saying that, I mentioned earlier on, we have a lot of upsell and a lot of cross-sell opportunities that are coming to the market in the first half of this year. That could show some acceleration even with where we're at right now on our NRR. Rick and I are hard at work trying to decide, is this something that we will want to show a little bit more insights into going forward? Right now, I would say it's to be determined, but we're very happy with where our NRR is at today. Okay. No, thanks for that. Just maybe just one last, minor one for me. You, you continue to mention the sales cycle, dropping. Just to be clear, are you seeing that within your enterprise base, or is that being driven by the fact that you've got just a changing mix of, you know, smaller, you know, mid-market customers on? I just wanna get some clarity on that. Thanks. Yeah, no, it's a great question and, you know, obviously a really good indicator for us on what I might call the readiness of the market and the maturity of the market for transformation. You know, I couldn't say that there's specific sub-segments of our pipeline. You know, we are looking at it as an average. You know, again, I've witnessed extremely large enterprise enterprise class customers and deals come through in a very short period of time in comparison to years past. In general, you know, the smaller mid-size accounts will tend to happen a little bit faster. Overall, I think we're seeing, you know, a general wake up of the discipline, you know, of supply chain. You know, the discipline of supply chain is realizing that the mechanisms that were in place prior to the pandemic may not survive the next three years, let alone the next 30. This is what's really driving the interest and the acceleration in working towards transformation and digitizing the supply chain. Good stuff. I'll pass the line. Our next question will come from Paul Treiber with RBC Capital Markets. Please go ahead. Thanks very much and good morning. Just could you speak to scalability and how you're improving it in the TAM that you mentioned is large, 90,000 customers. They've only scratched the surface of 300. You know, that's maybe, I don't know, 25, 30 per year, maybe a little more last year. You know, what number of customer additions do you think you can add, you know, at scale per year? You know, working backwards, how do you improve your, you know, sales cycles or the process to add that many customers per year? Yeah, we think about that a lot. In fact, training and enablement as a strategy is very front and center of my mind right now. You know, I used to worry about the availability of compute power, and I don't anymore with the obviously strong relationships with Microsoft, Google and perhaps some others that will give us that kind of scale. The rest is, you know, scaling the partner ecosystem to get them ready to accelerate deployments as we see, as we continue to see momentum. You know, I truly believe that it's only a matter of time. Every single manufacturer on this planet is going to be forced to transform their legacy methods. Those that don't will be left behind. It's really that simple. Now it's a question of, okay, well, at what rate will we see these changes occur? Obviously we monitor that very, you know, very diligently, not only internally, but with our largest partners. You know, partners like Accenture and Deloitte and many others that are all obviously seeing exactly what we are. You know, I'd say that the thing that needs to happen to prepare for this momentum is to ensure that we have adequate coverage of consultants to do the deployment work once all of these accounts decide it's time. You know, that's where I see the scalability risk. We've been hyper-focused right now on training and enablement, not just internally. The way I describe it internally is, you know, it starts with partners. If you can satisfy the needs of our partners, then by default you satisfy the needs of internal resources. That's helpful. You know, with RapidStart, I mean, obviously it's been a significant, I guess, streamlining of the sales process there. Do you see the sales or the integration over time becoming more straightforward and less complex, or will it always remain like a relatively complex deployment, just given the nature of the problem that you're solving? Boy, do I love that question, Paul. You know, this is another trend that we're seeing actually post-pandemic is the recognition that best practice is what's necessary. This notion that every supply chain is unique and needs some kind of custom solution is flat out flawed logic. That recognition, in fact, is what is driving the success of RapidStart. The notion that someone could begin their journey with the combined intellect of many different accounts and many different verticals is really appealing. Absolutely, we have been working to engineer, and we're thrilled obviously with RapidStart. The ability to shake hands and go live in 12 weeks, you know, is a testament to that thesis. Absolutely. I think we're gonna continue to see that. I think that we're gonna continue to see the small to mid players basically saying, "I'll have what they're having," to quote a famous movie. you know, where they really want the sum of the intellect of the larger players and say, "Look, I'm not here to reinvent the wheel. The wheel's magnificent. I'll take the wheel." I think over time, we're gonna continue to see compression in deployment cycles. Then just lastly on, MPO. Can you provide an update on MPO in terms of like product integration and the timing for that, and how that sort of fits into the long-term strategy then? Yeah. As I said in the opening remarks, you know, MPO for us provides the execution-related, the execution-related functionality that, that makes us a supply chain management solution provider as opposed to just supply chain planning solution provider. The engineering is underway to link those two, you know, those two products. You know, the thrilling bit, especially post-pandemic, you know, many of our customers are saying there's a tremendous amount of risk associated with material in motion. You know, where, you know, the transportation lanes aren't as trustworthy, let's just say, as they might have been in the past. That generates a tremendous amount of risk. MPO has a very similar philosophy. They had a very similar philosophy of, of concurrency. They were just connecting concurrent functionality associated with execution, supply chain execution. We're bridging obviously those gaps. We've already made some sales obviously of them, of that product line independently, and working with existing customers to take advantage of the, let's just say, the combination of our solutions and providing an end-to-end, fully concurrent supply chain management solution. We're quite thrilled with the progress. Great. I'll pass on. Our next question will come from Stephanie Price with CIBC. Please go ahead. Hi. I was hoping you could talk a little bit about upselling RapidStart customers, particularly with enterprise RapidStart customers on more fulsome rollouts. Are you seeing that happening now, or is this more of a future opportunity here? We're seeing it happen now, Stephanie. You know, in recent quarters, we've seen, you know, somewhere between 20%, 30% new customers choose to go strictly with RapidStart. You know, they're, you know, they're telling us, "Look, we, you know, we need to show value in between board meetings." That's quite a potent thing to say, you know, that in between board meetings, you could be providing, go live of a concurrent planning, environment. In all of those cases, post RapidStart go live, we're seeing rapid adoption and expansion of those accounts. That's exactly what it was designed to do, frankly. In many cases, they continue to iterate along the same type of pace, following what I might describe as an agile deployment methodology, where you're seeing go live value in 12-week increments. It's been very, very successful. It has been a differentiator for us against our competitors. Obviously with every win, we learn more. The engineering team continues to improve on that product. We're thrilled with the strategy, and we're gonna continue to press hard on it. Great. Thanks. In terms of some of your new areas of focus, including supply chain execution and the retail vertical, just curious if you are planning on, you know, looking at that completely organically, or could there be some M&A that you're looking at doing? Maybe related, just to comment on the valuation environment here. Yeah, you know, both is really the answer. It's an and, not an or. We're, you know, we're working very diligently on our retail offerings as we speak. As I said, we can't wait to share more detail about that and hoping that'll happen in the coming months, certainly during the year. You know, at the same time, we, you know, we have a very healthy M&A strategy. In fact, recently hired an executive to help us with that as we continue to grow. You know, our, you know, we're not consolidators, as you know. Our path on the M&A front, our strategy on M&A is not to consolidate revenue. Our strategy is to look for technically accretive white space, if you will, for our concurrent planning strategy and accelerate the delivery of that technology. You'll see us continue along that path. There's nothing imminent, I would say. There are some very specific areas of interest that are directly aligned with our growth vectors, however. Great. Thank you very much. Our next question will come from Robert Young with Canaccord Genuity. Hi. Please go ahead. Hi, a couple quick ones. The midterm targets in the deck, Ari asked about the top line, 3%. The adjusted EBITDA margin at 25%, that seems relatively low to some of the aspirational targets you've given in the past. Is that tied to this two to four years, or are you trying to signal that maybe the long-term margin potential of the business is maybe lower than... Because that's the same margin profile that you highlighted at the IPO, and you're significantly higher scale now. Yeah, great question, Rob. Well, I'll just go back. I mentioned this last year. We're a 30%-35% adjusted EBITDA company that's right now investing to grow our business as fast as possible. That's still the same comment. The only difference is we have a midterm stepping stone we need to get to, which is the 25% range that we talked about. Long term, absolutely. We're a +30% adjusted EBITDA company, and that's We have no issue saying that, and we'll continue to shout that at the tops of our lungs because, what we're doing, you know. The whole reason around this midterm guidance that we've been providing and this midterm outlook is, as a product, we are known as a trusted visionary. Our customers and our prospects, they looked at us and they say, "They've done it. They've done exactly what they told us they were gonna do, and they have the best visionary." Gartner keeps on saying that, but our partners and our customers reiterate that. I'm just trying to emulate them a little bit on the finance. We're trying to give you the stepping stones on where we're going with our business model over time. We are, in the midterm, gonna be getting to that +30%, +25%. In the long term, we're gonna be getting to that +30%-35% levels for adjusted EBITDA. As much as we can right now, what I'm trying to do is give you the stepping stones and the path for our business model, in the short term, midterm, and yeah, eventually the long term where we're going. Our next question will come from Martin Toner with ATB Capital Markets. Please go ahead. Thanks so much, everyone, a great quarter. Most of my questions have been answered, but I got a couple. One's kinda housekeeping. I think you mentioned a 2023 CapEx number. What was it? Sorry, it's $6 million-$8 million. Perfect. I noticed that ARR growth was below Q4 SaaS constant currency revenue growth, and I think that's the first time that's happened in a bit. Can you kind of address any reasons why that was? Yeah. We had an amazing Q4 2021, as well as 2022. The comparisons that we have are just it's obviously a year-end number that we compare against versus a period that takes place. We had an absolutely amazing Q3 2022 this year. It is just a It's a matter of the timing of when contracts were finalized and when the revenue hits there. It's also, on a constant currency basis, just the differences in how we calculate it. For ARR, it's a period end versus the revenue item sits over a period of time. We had about, I'd say about 1/3 to 40% of our revenue that was impacted by constant currency. There'll be different, I guess, rate impacts based on the periods that we're comparing against. Our next question will come from Christian Sgro with Eight Capital. Please go ahead. Hi, good morning. Just one question from my end. The new customer split out was 60-40 between enterprise and mid-market. What does that mix look like in your current pipeline, and would you say in the midterm between, again, enterprise and mid-market? It's roughly the same. You know, frankly, I don't think there's enough distinguishing factors when you look at the global pipeline in every geography and every vertical to suggest that there are certain sub-elements of the pipeline that are dramatically different. I would say it's roughly the same. That's helpful. Thank you very much. Our next question will come from Suthan Sukumar with Stifel. Please go ahead. Good morning, gents, and congrats on the results. Could you touch on what you're seeing today in the competitive environment and the impact on your pricing power, given that you now have more end-to-end capabilities with MPO? Yeah. You know, the competitive landscape really hasn't changed that much, frankly. We continue to see SAP as the largest competitor, given their legacy footprint in the space. We're often being called to replace their legacy footprint. We continue to see Blue Yonder and o9 from time to time, depending on the sub verticals. But again, as I've always said this about competition, I really don't believe we compete so much on a product basis. It's really technology basis. It's really competing on technique. I frankly don't see any other provider in our space that take the same posture as we do around concurrent planning. I think that gets recognized by the likes of Gartner and other analysts out there that continue, you know, that continue to place us very high, both on execution and on our vision for what is necessary for supply chain excellence. You know, frankly, I haven't seen a whole lot of difference. You know, we continue to be thrilled with the pipeline and, you know, as reflected in the 2023 guidance. We're excited with 2023, but I have to say I'm even more excited about 2024, 2025, and 2026. Our final question will be a follow-up from Robert Young with Canaccord Genuity. Please go ahead. Hi. Hi. The second question I had was around the sub-term guide, $12 million- $14 million. If I look back to 2020, which would be the three-year cadence, it's exactly the same guide you gave at the beginning of the year. You ended the year at about $18 million. The guidance is down on that three-year cadence, that implies, I don't know, either you're converting, you know, customers into SaaS, or you're not expanding those customers. Maybe there's a five-year contract that's obscuring it. I think it's an important thing for investors to understand, 'cause it's such a high gross margin component and, you know, the EBITDA guide is a little bit lower. If you could give us some context around that'd be helpful. We've gone through a process where some of those on-prem customers or the customers that choose to have the option to go on-prem, are no longer choosing right away three-year deals. They want to have longer deals. They're getting to more often now, we're seeing four to five-year deals. That three-year cycle no longer exists, which is thankful that we have the majority of our revenue being SaaS, which we can obviously get a lot better on forecasting. The renewal cycles, we haven't lost anyone. We have obviously had some expansions in that time, but our guidance is purely based on what we see the renewals for the customers that we have in place that are coming due this year. That will conclude today's question- and- answer session. At this time, I would like to turn the call back over to Rick Wadsworth for closing remarks. Thanks, operator, and thank everyone for participating on today's call. We appreciate your questions as always and your ongoing interest and support of Kinaxis. We'll look forward to speaking with you again when we report our first quarter of 2023 results. Bye for now. That will conclude today's conference. Thank you for your participation, and you may now disconnect.