Good morning and welcome to the LifeSpeak Second Quarter 2022 Results conference call. All lines have been placed on mute to prevent any background noise, and after the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star and the number one on your telephone keypad. If you would like to withdraw your question, please press star followed by a two. At this time, I'd like to turn the call over to Michael McKenna, Chief Financial Officer of LifeSpeak. Please go ahead, sir. Thank you, operator, and welcome to the LifeSpeak Second Quarter 2022 Results conference call. Before we start, we would like to remind you that all amounts discussed on this call are denominated in Canadian dollars unless otherwise indicated. Please note that the statements made during this call may include forward-looking statements and information and future-oriented financial information regarding LifeSpeak and its business, and disclosure regarding possible events, conditions or results that are based on information currently available to management, which indicate management's expectations of future growth, results of operations, business performance, and business prospects and opportunities. Such statements are made as of this date hereof and LifeSpeak assumes no obligation to update or revise these to reflect events, disclosures, or circumstances except as required by applicable securities laws. Such statements involve significant risks, and uncertainties, and are not a guarantee of future performance or results. A number of these risks and uncertainties could cause results to differ materially from the results discussed today. Given these risks and uncertainties, one should not place undue reliance on these statements and information. Please refer to the forward-looking statements and information and future-oriented financial information section of our public filings without limitation, our MD&A, and our earnings press release issued today for additional information. I would now turn the call over to Nolan Bederman, LifeSpeak's Executive Chairman for opening remarks. Nolan? Thanks, Mike, and good morning, everyone. We appreciate you attending our second quarter update call. I'm pleased to report that LifeSpeak continued to strengthen and diversify its business during the second quarter. Cross-selling initiatives across our expanded SaaS-based mental health and total wellbeing platform continued. During the quarter, we completed the integration of our sales force and have already started to see the benefit of the integrated platform in our business activity and in our financials. In addition, the overall operational integration of our four recent acquisitions continued as planned, and we continue to be excited about the extremely high level of talent we've assembled throughout the company. While remaining highly focused on operations, we've aggressively pursued cost reduction initiatives, which have resulted in a significantly leaner and more efficient business. Our key focus has been on building a solid foundation for growth in both the near and long term without diluting our talent base. While cost rationalization has been a clear positive outcome from the acquisitions, we're also pleased to report that LifeSpeak has dramatically increased the depth and breadth of our senior leadership team giving us significantly expanded capabilities. Many key management team members, including all of the CEO founders from the acquired businesses, have taken on important senior roles at LifeSpeak, including COO, the Chief Growth Officer, Chief Strategy Officer, and SVP of Finance. This abundance of talent further enables us to aggressively pursue our global growth goals. Going forward, this team is laser-focused on driving organic growth within our unified SaaS platform by acquiring new enterprise and embedded solutions clients and cross-selling our products to our existing client base. At LifeSpeak, we remain excited about our position in the market, as well as the growth trajectory we believe is ahead of us. We anticipate that LifeSpeak is well-positioned for continued growth with strong underlying fundamentals within the enterprise and embedded go-to-market strategies. We also believe that the company remains resilient in the face of broader economic headwinds. We've worked very hard to build a world-leading business that is stronger than ever. Since the IPO, we have far greater client diversification, product diversity, geographic dispersion, and sheer scale. We have an extremely talented team with multiple paths to winning new customers while maintaining profitability on an adjusted basis. Once again, we'd like to thank you for joining the call today, and we look forward to sharing more of our successes with you. Now I'd like to turn the call over to Michael Held, LifeSpeak's Founder and CEO. Michael? Yeah. Thank you, Nolan. We are pleased to be with you today to review our Second Quarter 2022 Operational and Financial Results and provide an update on the overall position of the business and platform we have built. The overall demand for LifeSpeak's affordable and effective SaaS-based mental health and total well-being platform remains strong despite the pressures associated with inflation and rising interest rates that are affecting the broader economy. We anticipate that demand will continue as employers and organizations remain focused on prioritizing the mental and physical well-being of their employees. Furthermore, we believe that LifeSpeak's SaaS-based mental health and total well-being education and engagement platform continues to be supported by consistent long-term factors, including increasing corporate spending on mental health and total well-being, digitalization of health solutions, growth in micro-learning content as a means of well-being education, and increasing corporate spend on remote access tools. Our high-value holistic mental health and total well-being solution, which is more relevant and diverse than ever before, continues to drive the growth of our business. Some highlights from the quarter include our second quarter 2022 revenue increased to CAD 12.1 million from CAD 5.6 million in the second quarter of 2021, an increase of 117%. We reported annual recurring revenue of CAD 50.2 million as of June 30, 2022, an increase of 119% over the same period in 2021. Our number of clients increased by 264% to 921 clients as of June 30, 2022, compared to 253% as of June 30, 2021. Within our core enterprise client base, select client wins in Q2 included Sheridan International Corporation in Canada, the State of Illinois from the U.S., Unified Women's Healthcare LP, a U.S. client, New Derby Transport from Canada, City of Charlotte in the U.S., APN Property Group from Australia, and Bowmer + Kirkland, and Biffa Waste Services, both U.K.-based clients. After quarter end, LifeSpeak continued to sign several additional significant enterprise clients, including CommonSpirit Health in the U.S., Stanley Black & Decker in the U.S., and the Workers' Compensation Board of Nova Scotia. Embedded solution client additions continued through the second quarter with the launch of new embedded partnerships with FSEAP in Canada, Mindset at Work from Australia, and MidAtlantic Employers' in the U.S. bringing the company's total embedded number of clients to 18 at the end of second quarter 2022. Subsequent to quarter end, LifeSpeak continued to design meaningful embedded solution clients, including MetLife Gulf, our first Gulf region client, highlighting the global nature of the platform. In addition, after owning Wellbeats, a highly complementary physical well-being platform, for an entire quarter, it is more apparent than ever that the depth and scale of our overall offering is now poised to become the market leader in the total well-being for employees. During our second quarter, we continued to see growth in all of our acquired businesses and gain momentum with potential cross-sell opportunities between Wellbeats services and the other tools in our platform. On this note, I am pleased to report that our overall cross-selling initiatives progressed well through the second quarter of 2022 with the successful closing of several cross-sale multi-product opportunities including with Fasken Martineau, LLP in Canada, Pillsbury, LP in the U.S., and Laurentian Bank of Canada in Canada. Subsequent to quarter end, the company completed additional and significant cross-sale deals with Maximus Inc., U.S., LifeSpeak's largest cross-sale to date, and PricewaterhouseCoopers, U.S. and Canada. The company anticipates accelerated cross-sale growth in the second half of 2022 as net new clients are added with multi-product solutions and as the current portfolio of client cross-sell opportunities are harvested. Overall, we are very excited about the opportunity that lies ahead of us and believe that we are making significant progress on all fronts. I will now pass the call back to Mike McKenna, who will walk us through our detailed financials, following which I will provide some closing remarks before we turn it over for questions. Mike McKenna. Thank you, Michael. Notwithstanding the ongoing renewal process with our significant embedded solutions client that has adversely impacted our quarterly results, we do believe our second quarter financials demonstrate the underlying strength and diversity of our business, and we are excited to share those results with you today. As mentioned, revenue for Q2 2022 increased to over CAD 12.1 million from CAD 5.6 million in the second quarter of 2021, an increase of 117%. Annual recurring revenue or ARR is CAD 50.2 million, a 119% increase compared to the second quarter of 2021. ARR for the second quarter was positively impacted by the addition of a multitude of new enterprise clients and to a lesser extent, new clients of our embedded solutions area, which continued to be impacted by reduced recognizable revenue in the quarter related to our largest client. As previously disclosed, our contract with that one client, which at its peak represented the largest client in our embedded solutions platform has been extended to August 31st, 2022, with the client's customers having access to our platform during this period. Discussions with the customer are ongoing and we will continue to update you as relevant events occur. In order to provide an increased level of depth and visibility into the strength of our business, we have disclosed in the Q2 press release significant detail on the contribution from both the enterprise and embedded areas of the business. Of our CAD 50.2 million in ARR, approximately CAD 41 million comes from our over 900 enterprise clients, while the remaining CAD 9.2 million comes from the embedded and other verticals. An area of the business that has characteristics of embedded type deals, such as the Wellbeats contract to service the U.S. Air Force and military services. With respect to geographic diversification, 66% of our ARR now originates from markets outside of Canada. Both our Q2 financial results press release and the Q2 MD&A provide further detail on this breakdown for the quarter and on a historical basis for comparative purposes while demonstrating the strong fundamentals of the business. Moving on to adjusted EBITDA, o ur commitment to operational efficiencies provided the company with a strong adjusted EBITDA for the quarter of CAD 2.4 million, a significant increase over the first quarter of 2022. The 20% EBITDA margin for the quarter is very strong especially when considering the overall operating environment. This margin should increase through the balance of the year, given the stable underlying cost base of the business. As part of our first quarter financial results announcement, we identified annualized cost rationalization of approximately CAD 5.8 million. Following the full implementation of the program through Q2, the total annualized cost savings now equate to approximately CAD 6.8 million with CAD 1.2 million of synergies being directly recognized within the second quarter. These synergies have primarily originated from a refinement of processes, creating efficiencies, and managing overlapping resources. Importantly, operational excellence has not been sacrificed and we believe the company is better positioned now than ever for growth. While net loss for Q2 equated to CAD 6.5 million, a significant increase when compared to Q2 2021. Th e increase was largely due to non-cash related items including the ongoing non-cash expense of stock-based compensation related to the implementation of a new omnibus incentive plan at the time of the IPO. In addition to the previously mentioned metrics, we closely track other key performance indicators to help us evaluate the strength of our business, and t hese include gross profit margin. Our gross profit for the second quarter of 2022 increased to CAD 11 million, resulting in a gross margin of 91%. Again, a significant increase margin-wise over Q1 of 2022. Net dollar retention rate, or NDR, provides a consolidated measure by which we can monitor the percentage of ARR retained from existing clients. When giving effect to the embedded client impact, as mentioned earlier, it was 76% as of June 30 of 2022 on a consolidated basis. This is slightly lower than our Q1 2022 consolidated NDR of 82%. This is primarily due to the lower revenue and ARR associated with that one embedded customer. When looking at our enterprise clients only, the NDR was 98% as of June 30 of 2022. We believe this demonstrates the overall strength of the underlying enterprise customer portfolio that we have built and continue to maintain. Logo retention rate, l ogo retention, which is measured on an LTM basis, as at June 30 of 2022, was 89%. This is just a slight bit lower when compared to our Q1 2022 logo retention rate of 90%, primarily due again to the slightly lower relative contribution to one of our acquired businesses that we discussed in Q1. I will note that overall logo loss in Q2 was much lower than in Q1 of 2022. When evaluating against the total number of clients on the platform at the end of Q2, the logo will churn for the quarter was less than 2%. Importantly, in Q2, the average enterprise client annual contract value added was approximately 15% higher than the ACV of the customers leaving the platform. Again, this shows the continued strength and growth opportunities within the enterprise segment. Moving on to pipeline. During the second quarter and subsequent to quarter end, we signed a number of new enterprise and embedded clients and continue to see strong opportunities within both go-to-market strategies. On the embedded side, as Michael mentioned, we launched new partnership opportunities with FSEAP, Mindset at Work, and the MidAtlantic Employers' Association, bringing the company's total embedded number of clients to 18 at the end of Q2 2022. While overall deal size in this area continues to remain smaller than expected at the time of our IPO as an example, we continue to feel excited about the counterparties we are dealing with, and the size to which some of the customer deals that we currently have can grow to. We will continue to add partnerships to this area going forward as there is a meaningful opportunity in the area to grow our ARR despite some of the challenges we have had to date. On the enterprise side, at the end of the quarter, LifeSpeak had a total of 903 enterprise clients with various new wins of recognizable names, and as Michael noted earlier, momentum in key customer wins in North America and globally. Notable names in Q2 include Sheridan International, the State of Illinois, and Unified Women's Healthcare. The most important trend we are seeing, though, in the enterprise segment, both through Q2, and already into Q3, is that the size of our enterprise wins is increasing. This is both in general average terms and on specific opportunities where new multi-product sales are creating several more sizable opportunities for the enterprise sales teams. We are now able to pursue much larger enterprise deals due to the strength of our platform. The enterprise pipeline, both in number of deals and size of partnerships is growing week- over- week and ultimately quarter- over- quarter. While the strength in sales and focus on cost rationalization has clearly stabilized the foundation of the business and positioned the company for a strong second half of 2022. In light of the ongoing discussions with our large embedded client, we would like to update our guidance for 2022. For the balance of 2022, this will include a conservative approach to forecasting assuming no contribution from the aforementioned client in our revised guidance. Senior management continues to engage with the embedded client, which remains a customer, and we intend to provide further updates regarding the discussion following the contract renewal period. Based on current sales pipeline visibility and the ongoing successful integration of our platform, LifeSpeak expects 2022 revenue growth to be in the range of 110% to 140% for the year ending December 31st, 2022. We expect ARR to be in the range of CAD 60 million to CAD 70 million as at December 31st, 2022, and expect adjusted EBITDA margins for the year to be in the range of 20% to 30%, importantly, though, reaching 30+% for the fourth quarter of 2022. While the new guidance is lower than the original guidance disclosed on February 14 of 2022, the fundamentals of the business remain strong and unique, especially in the current market context. Moving on to the credit agreement, c oncurrent with the completion of the Wellbeats transaction in February 2022, LifeSpeak entered into a CAD 97.5 million revolving credit facility with Scotiabank's Technology and Innovation Banking Group and Desjardins Capital Markets, which I will refer to as our lenders. During the quarter, the company voluntarily repaid CAD 10 million of the credit facility reducing total exposure to CAD 87.5 million. Following the voluntary repayment of debt, the company, in collaboration with our lenders revised the terms of our credit facility to better position LifeSpeak to achieve its growth targets going forward. The revised credit facility will allow us to focus on performance through the balance of 2022 measuring quarterly performance against the credit facility based on financial results, instead of a traditional net debt to adjusted EBITDA multiple that was part of the original agreement. The company and its lenders expect these changes to provide the necessary time for LifeSpeak's revenue growth to support moving to a ratio-based covenant test in 2023. For 2023, a portion of the overall facility will also move to a traditional term-based facility. The company anticipates that the need for a fully revolving credit facility will be lessened as LifeSpeak will be focused on organic growth of the platform, as we believe there are no major needs to add specific capabilities through acquisition in 2023. We intend to further provide updates only as required on this matter and believe the changes to the credit facility are more than ample to ensure strength in operations well into the future. Overall, we are very optimistic about the business. LifeSpeak has grown rapidly. We are more diversified than ever before. We are profitable on an adjusted basis, and we believe that our platform is extremely compelling to our clients. With that, I will turn the call back to Michael Held to provide some closing remarks. Thanks, Mike. We remain very upbeat about our progress to date and the opportunities ahead. As we look forward to the remainder of 2022, we believe our growth will continue as we expand in an industry where organizations highly value the mental health, and total well-being of employees. We believe that our deep and diverse customer base improves the relevancy of our business, and that the scale we have reached today with more than 900 clients, and the retention rates we achieve validate our convictions that our solutions are essential to our clients and their employees. We are looking forward to demonstrating that as we update you on our progress in the coming weeks and months. We will now open the call to questions. Operator? If you would like to ask a question, please press star followed by one on your telephone keypad now. If you would like to remove your question, please press star followed by two. Please ensure your phone is unmuted locally and limit your questions to a maximum of two. Our first question comes from Jeff Martin from Roth Capital Partners. Please go ahead, Jeff. Thanks. Good morning, guys. I wanted to dive into the embedded solutions approach a little bit here with ARR coming down sequentially. I was wondering if you could shed some insight into that relative to the loss of or, you know, pending renewal of the largest embedded client. Secondly, if there's any change in the strategic approach in your market approach with the embedded solutions. Thanks. Hey, good morning, Jeff. It's Mike. I'll touch just briefly on some of the financial piece. Then turn it over to Michael and Nolan for a bit of thought from the strategic aspect of this as it does remain still very important to us. We did try to break out and provide a little bit more disclosure in the press release, just as it relates to, you know, what the overall embedded solutions category looks like. Also too, so that you can back into basically what the large client was contributing. You, obviously, can see that that's a large contribution to the overall. At the same time, you know, if we look just, you know, where the enterprise business is, you know, 33% growth, you know, sequentially year-over-year, and then taking the total ARR, X this customer, you know, at 24% growth, year-over-year, it's very strong, you know, fundamentally, right? I think the thesis remains intact. We continue to sign more of these deals, and that's why we try to provide, you know, that extra little bit of detail in terms of the breakout. You can take a look at that and really sort of see, you know, where we're going overall. I think ultimately the strategy remains important. There are some timing issues there, but as we grow ARR overall, they'll have less impact, you know, on us quarter to quarter. I think, you know, just strategically in terms of the opportunity, you know, Michael and Nolan can provide, you know, a bit of added commentary. But generally speaking, I think that, you know, we provided those numbers to show really the strong fundamentals of the overall growth. Yeah, Mike, it's Nolan. Jeff, nice to hear from you. To give you a little color on the strategy so w e still think embedded is a very important part of what we're doing. We're doing a couple of things. We're sort of relying on it less in the way we forecast because we understand that some of these things are less predictable in their pace of rollout. We've done a good job of securing these deals. I'd say the other piece that we've done, and a little bit of this comes from the experience we've picked up in our acquisitions, is we have a much, much more granular categorization of the types of embedded clients that are out there. Our largest one is more in a marketing context. The other embedded deals are much more core and that they're health plans using us or health-related businesses using us for adjacent services to their core offering. We're going at the market with more experienced experts with a lot more history of doing it and a lot more granular approach to the way we do it. I think the one thing we said consistently at the IPO is we view this as a portfolio. The challenge, obviously, with the portfolio is when you have one dominant thing at the very beginning that you took on when you were a private company versus building a strategy around that. Th ose things look a little bit different. Embedded is very much a core part of what we're doing. We've actually hired additional people, additional resources to pursue it. We're relying on it less in future projections externally, just frankly because it's a little hard to forecast with precision the timing of the rollout. Okay, then se cond question is on the enterprise side. You mentioned larger deals coming on that versus deals rolling off with the cross-sell opportunity. I would imagine that number grows where enterprise deals that come on will be much larger than those rolling off going forward. I was just hoping to get some relative perspective on, you know, how much larger these deals could become over time. Could we be talking, you know, 50% larger deals or even higher than that over the long run? Yeah. Jeff, it's Mike again. It was about 15% in Q2, and I think that trend, you know, from what we're seeing already in Q3, is going to be, you know, higher than that, right? I think, you know, do I want to suggest to you that, you know, we know for sure it's going to be 50%? No, but I think generally speaking, we're heading in a very positive direction on this, and we're now seeing the trend, you know, sort of quarter-over-quarter, you know, sort of for these two quarters, which I think is really important, right? I t's not a sort of one-time thing. I think the other thing that that's important with this is that, you know, just the opportunities or the doors that we're able to be opening now are larger because of the breadth and depth of the platform. That's really supportive of this trend. Yes, cross-sell, multi-product, those are very important to this trend, but as are just the opportunities from the size of enterprise that we can now go after with the breadth and depth of the platform. Thanks. Appreciate your time. The next question comes from Adam Buckham from Scotiabank. Please go ahead, Adam. Morning. Thanks for taking my question, guys. I want to start in terms of the updated outlook. Now, it looks from what you guys have provided this morning, that there's a pretty significant acceleration sort of ARR growth over the back half of the year. Can you kind of speak to the outlook in the context of the pipeline? Are there some chunky potential clients there that, you know, are very close to being signed? A nything you can kind of provide around what you're sort of expecting in ARR would be good. Hey, Adam, it's Mike. I'll talk briefly about numbers. I think it's helpful for Michael and Nolan again to add some commentary just on the sort of general trends and what we're seeing through the sales team. But you know, I think if we're looking outward, obviously, we've got a pretty good view already into Q3 in terms of ARR, you know, what is contracted and where some opportunities lie. There are a couple deals that we've already got, you know, within our system, you know, that we certainly feel will grow in the back half of the year, which will be obviously very helpful. It's not all just necessarily just, you know, new go get. With that said, the new go get, again, back to the theme of what I answered Jeff's question on, has started to become, you know, very successful in terms of larger size opportunities, right? That ultimately can expedite that growth. If you think about what we provided in the press release and the breakout of growth within the enterprise business alone, Adam, just from, let's say Q2 of 2022 versus, you know, Q3 and Q4 of 2021, right? You can see, right, systematically where that opportunity lies, right? That's part of the rationale for providing some of that extra disclosure on the numbers so that, you know, you can see the sort of support for the opportunity. Again, all those numbers that we broke out, as it relates to the enterprise ARR, and the embedded solutions and other ARR, those are all fully on a pro forma basis. You can see, right, with the platform, you know, operating together, right, what we've been able to add, right? We're systematically seeing, you know, that opportunity probably increase a little bit even, and that's why we're, you know, putting out the guidance as is. Okay. Yeah. No, that's certainly helpful, and j ust thinking about sort of the ARR growth in the back half, and maybe more into 2023, can you kind of speak to, you know, first, ho w much of that is more cross-sell oriented versus sort of net new clients and then, you know, maybe what you're seeing more broadly in terms of the pipeline in terms of, you know, how many are net new clients versus cross-sell opportunities? I'm just thinking more around the lines of organic growth for the company. Yeah. No, I'll get into some of the numbers, but I think it. You know, I'll turn it back to Michael and Nolan for a little bit of context on just what we're seeing overall. Largely speaking, Adam, there's a lot of net new adds coming in to the system, right? We are actually seeing some pretty sizable opportunities on the cross-sell side. We identified two, you know, very significant wins that we've already noted in Q3. One of those frankly will become, you know, one of our top customers overall. That's the kind of stuff that we're seeing the potential on. I think if you broke down the cross-sell piece, we're seeing some sizable opportunities and we're seeing some, let's call it, you know, smaller add-on type opportunities. Where we're going to have to focus in the back half of the year is that sort of middle tier, right? The addition of, you know, one or two services to, let's call it, you know, the $100,000 ARR per year client, I think that'll be the focus. I think generally speaking, you know, the feedback from the sales side, you know, we're pretty confident that these things can come to bear. As it relates to just the strategy, maybe Michael and Nolan can give a bit there of thought. I think that helps support the numbers. Yeah, I mean, I think to reiterate it, there's lots of momentum. Sales are contagious, and I think, Adam, we're really going to see both. The cross-selling has really taken off, and, you know, we've really launched in the last month or two. As we've said, we've already seen some big wins. I think it'll be a big part of it, but we're really, really seeing the fact that we're, like, becoming the big player in the space. We're having much bigger wins. We see a lot of new additions. You know, we haven't really spoken about this yet, but, you know, we're more than, you know, Mike, you can be specific. I think we're about 60% of a U.S. company now, so that just gives us a way larger TAM to go after much bigger companies. These multi-$100,000 deals aren't crazy deals. They're just normal deals that we've always made, just to much larger companies. Now going out with a way better portfolio of offerings, we get to go out and say, "Listen, we've been around for 18 years. We have 900 clients." Having that brand and people who are investing knowing that they're going to get their money's worth is really paying off. A lot of both, but a lot of new addition, and w e feel very confident about that. Great. Thanks for taking my questions. Thanks, Adam. Next, we have a question from Justin Keywood from Stifel GMP. Please go ahead, Justin. Hi. Good morning. Thanks for taking my call. I had a follow-up question on the guidance, j ust because it is quite a substantial jump, even at the lower end of the range. What part would you say would come from existing customers versus new? Also, how are the conversations going with cross-selling some of the products from the recent acquisitions into your existing customer base? Thank you. Hey, good morning, Justin. I think if you look at the. Let's just focus on ARR. Ultimately, that drives the rest of the numbers. I think if you look at that, you know, there's going to be probably, you know, if we're thinking about where we are today in the lower end of that range and say, you know, that gap is CAD 10 million. I'd say there's CAD 1.5 million to CAD 2 million from existing customers. We know already that we've got upwards of CAD 3.5 million to CAD 4 million contracted coming out of Q2 t hat's not in that number for back half of the year starts. Ultimately, Justin, then the go-get gap is much smaller, right? To get us to even the lower end of that range, okay? That is, I think, on a step function basis sort of how we think about it, right? Again, I think as we've noted, there have been a couple sizable opportunities on the cross-sell side, and so very confident with what those are adding. We referenced one in particular in the press release, and frankly, that's going to be, you know, north of half a million dollars a year ARR client, right? These are some of the things that we're seeing. Again, early days, not going to suggest to you that they're all going to be like that. I think importantly, you know, and Michael spoke about some of the momentum, you know, we are seeing good momentum, so good support for that. If I go then to margin, right? Ultimately, you know, we printed 20% EBITDA margin this quarter on the adjusted basis. We can see that number growing significantly in the back half of the year because of the work we've done to make this more of an efficient business and a very stable cost base, right? We're not going to have to add much at all in terms of costs in the back half of the year, right? We do see revenue growth, obviously, and ultimately, that is going to, you know, contribute to margin growth, which is why, you know, we certainly think in, you know, Q4, we're going to be, you know, at 30+% EBITDA margin, which was actually, frankly, within the range of the original guidance, which I think is, you know, shows some pretty good, you know, prudent financial management overall of the business because of what's happened with the large customers. I think overall, we're very happy with where we are, Justin, on all this stuff. We know we have a lot of work to do in the back half but all signs pointing to this being a good opportunity in the back half of the year. Thanks for the additional context. Then just on the competitive landscape, I wonder if there's has been any change since last quarter. Michael Held mentioned the benefits of, you know, having a platform that's been around for 18 years, and I assume some of the newer entries into the market, maybe they're going through some difficulties and are less capitalized. Is that leading to additional opportunities for LifeSpeak? Maybe I'll take that, Justin. We do see that. Again, you know, we're not going to prey on the carcasses of others on the call, but we definitely think in this difficult environment, the earlier stage entrants who sort of thought that they could easily secure funding to go after bits of this market are, A, having a, you know, more difficult time securing that funding, and B, and this we've known for many years. This is not a market you can penetrate quickly. It takes a long time to build credibility in the HR space to have a B2B product that's got proven attributes within the corporate environment in a secure way, that actually, you know, can be proven to be used. It's not an easy thing to crack into, and you need a lot more capital than you think. I'd say on balance, you know, we never rest on this and we're constantly innovating our product. One of the reasons we made the acquisitions we did is to quickly build a robust platform from which we can continue to innovate, which we are. But I think your statement was correct. It's definitely harder for smaller businesses to crack in. The trend we identified, I think very early on in the IPO as well, which is companies, they don't want one vendor for everything they do in HR. They certainly want to have fewer vendors and relative to, you know, a total wellbeing SaaS platform, they really don't want to have multiple point solutions. The more we can offer them both choice and comprehensiveness, the better it is for us to sell, and f rankly, that's just a differentiator with, you know, smaller one product company. Great. Thanks for taking my questions. Thank you. Next is a question from Doug Taylor from Canaccord Genuity. Please go ahead, Doug. Yeah, thank you. Good morning. You say you've realized CAD 1.2 million in savings in Q2 so CAD 4.8 million annualized. You've got CAD 6.8 million now identified. Is the simple math correct that all else equal, you'll get another CAD 500,000 in quarterly savings from the Q2 levels, and should we expect that to manifest in a reduction in overall OpEx or just offsetting growth in other areas, you know, to Mike's comment that you expect expenses will be kind of flattish from current levels? Yeah, exactly, Doug. It's largely going to going to be in the G&A line. There'll be some in the sales and marketing line. It'll probably be flipped on its head a little bit in terms of where we've seen the split to date. In fact, frankly, the split to date has been probably more in the sales and marketing side, and that's just largely been where there's been you know, some redundancies of people, right? But there is a bit more OpEx to go after in the G&A line. I mean, are you satisfied with the CAD 6.8 million you've now identified or should we be expecting, you know, further incremental updates to that level or that number? I mean, look, I think we're very satisfied with it, Doug. We had pointed to a number of CAD 5.8 million on the Q1 call. We've identified additional opportunities to get us to that sort of CAD 6.8 million of annualized synergies. C ould we, you know, do more? Yes. I think again, like, we are trying to ensure, you know, the depth and breadth of the platform, you know, is not sacrificed and the business is still capable of going after the growth that we're talking about, right? It becomes a very fine line at this point in the strategy to ensure that, you know, we're not cutting too far. I think we've done a really good job of delivering on the strategy that we suggested especially in a very short period of time. I think ultimately that sets us up for very good success in the back half of the year. Because again, we're not seeing a diminished opportunity on the sales side because of what we've done, right? In fact, there's more opportunity coming out of this quarter on the sales side than there was last quarter, okay, which is, I think, really important just as it relates to the impact of the overall cost rationalization on the business. Okay. Appreciate that. Next question, I wonder if you could shed any more color on, you've got this new credit agreement both, y ou know, could you speak to what the performance metrics are that you will be measured against this year qualitatively or quantitatively? You know, the net debt to EBITDA ratios you're looking to hit or return to in the 2023 timeframe. Yeah. In note seven of the financial statements, we have provided a decent amount of detail on this. I think it's important. We try to be, you know, transparent across a number of different, sort of pieces of the business and metrics here. You can see some additional detail in note seven of the financials. The test, you know, like for example, this quarter, on a reported EBITDA basis, the test was a negative CAD 3.2 million of reported EBITDA, and, you know, directly from the face of the statements and the calculation pre-adjustments was, you know, negative CAD 1 million. We're well ahead of that. It'll be a similar test through Q3, okay? Ultimately, you know, the traditional, you know, net debt to adjusted bank EBITDA calculations that we'll be returning to are, obviously, you know, at this stage set in a place that we feel comfortable with, right? I think that's, you know, the important part coming out of this, is that we've got significant amount of runway with our partners. Again, like we're managing the facility, you know, absolutely fine in the sense that, you know, it's not like we're concerned about, you know, making interest payments or anything like that, right? That's all very important as it relates to the context of this. I'll ask the question another way. What do you think the right level of leverage is, you know, to be applied to this business on a steady state basis, and d o you expect to get there in 2023? Yeah. I mean, look, we absolutely expect to get there in 2023. I think we, you know, took the appropriate steps in Q2 to voluntarily repay, you know, CAD 10 million to facility. We'll have our eye on that through the balance of the year, and into 2023 to continue to repay debt when cash is available, right? I think that's really important. We'll continue to be very mindful of that. But again, when we put that facility in place, right, it was all set up as a revolving term facility with, so that would, you know, create opportunity, you know, and flexibility for us. We weren't forced to pay back the CAD 10 million during the quarter. We did that because it's just a prudent financial management, and we'll continue to be mindful of that, right? Do we want to get that number down by another, you know, CAD 10 million or CAD 15 million in the next, you know, two quarter to three quarters? Absolutely, right? Again, that's all part of, you know, the process of moving towards the covenants changing in 2023 and, you know, there's no forced action here, right? We have plenty of opportunity to operate here and it's our choice as to where we go from here with it. Okay. Thank you for that. I'll pass the line. The next question is from Maxim Barron from Cormark. Please go ahead. Hi, good morning. I just wanted to start on the split between enterprise and embedded clients. With 82% of ARR coming from enterprise now, I just wanted to know how you see that progressing in the future, maybe, for the remainder of the year and then more long term than that. Hey, thanks, Max. I think importantly, you know, we have obviously shown very strong growth in the overall enterprise piece, and that's again part of the rationale for the disclosure. Do we see continued opportunity there for the balance of the year and a large portion of that growth in ARR coming from enterprise to get us to where we suggest the guidance can be? Absolutely. I think when Justin from GMP asked the question earlier, sort of, you know, he had a similar question in the sense of like, where do you see, you know, how much do you see from existing customers? I mean, in large part, existing customers' growth in our world is, you know, is embedded, right? If there's CAD 1.5 million to CAD 2 million available there of ARR growth, right? You understand the context. The vast majority of the enterprise customers, you know, they don't reset their contracts every month or even annually. There's annual price growth, but month to month, they're not increasing price. We're not increasing prices with the enterprise base, right? The enterprise base growth is driven by largely new customers, and we are seeing, you know, very significant growth in new customers there. Got it, j ust as a follow-up there, do you see the embedded clients making up a larger proportion of ARR in the future? Well, look, I know I've referenced this earlier, right? As it relates to the portfolio and what's there and what's available. We do think there are deals within that portfolio right now that have the opportunity to grow significantly in terms of ARR contribution, right? Now, some of them are taking longer times to roll out. Again, when we talk about the counterparties that are there as customers in that category, they do have very much opportunities to grow. What we're trying to do is reduce the dependency on the timing of, you know, the quarter-to-quarter influence of that growth because it is oftentimes more challenging for us to predict. Is that portfolio set up for growth? Absolutely, it's set up for growth, and I think that we're going to keep focused on it. Got it. That's great context, and j ust another question I had. Given the changing market environment we're having, do you see any changes in churn patterns or intentions to become new clients from the pipeline, and any macro commentary you can give us there? I'll just touch on some numbers that again, you know, we added about 45 new net new enterprise customers this quarter, right? You know, well more than that in terms of overall enterprise. I think ultimately that's very strong conversion and the pipeline remains strong. I think Michael and Nolan can provide some additional commentary as it relates to overall themes. You know, again, we've tried to reference a lot of that in our disclosure that, you know, we're certainly not seeing anything yet that's been concerning. Again, that one key trend that we did identify is that, you know, frankly, new customers that are coming on board to the platform are actually spending more dollars on an aggregate basis than those that are falling off. Yeah, and Max, it's Nolan. I'll give you a quick high-level comment and I'll let Held contribute. I'd say the first thing is we haven't yet seen that activity, but we all know what's happening in the world, and that can happen at any time, so we're quite cautious. We have sort of two components that are relevant to us, o ne is with multiple products, we have an opportunity to provide other alternatives for clients who have budgetary issues. W e do have other tools in our tool chest that we did not have in prior years s o we think that's going to be helpful if and when that time comes. The other piece is, you know, we do sit as an employee engagement and retention tool as much as we do, sort of a wellbeing tool. What we think that means is the more relevant drivers for us will likely be the employment rate as opposed to necessarily other economic metrics. As long as there's a, you know, a challenge to obtain, to get talent, and to attract the right talent, h aving tools like ours in your portfolio as an employer is still going to be essential, even in a world where, you know, demand may be slowing. We're cautious. We're very aware of what's out there. We aren't yet seeing it on a direct basis. We think maybe some of the reason is employment driven. Held, anything you want to add more specifically, drill down? Yeah, I mean, obviously we're keeping a keen eye on it, and m aybe just the positive momentum might be overshadowing just because we're making so many, you know, new sales, and growth that maybe it's there and it's so small. I think it's also important to remember like what we do as a company. As this world has demonstrated, it's not getting more certai, h ou know, having the pandemic and then the war, and then, you know, financial times, and monkey pox. T he world is really, really in everyone's face as being in a scenario where we have to look after our people and companies need to look after their best people. There's always going to going to be a war on talent and it's not getting any easier. You know, we'll definitely keep an eye on the economic front, and we're not seeing anything yet. I think, you know, our reason for existing, especially now having a portfolio that covers so much more than just the mental health, but everything that surrounds resilience. Ou r reason for existing is ever more important. As that meshes, as Nolan said, with, you know, our partners looking for one vendor who can supply all, I think these trends just are for us right now much outweigh, like grossly overweighing the potential negative of the economic macro conditions. Great. Thanks. I'll pass the line. Next, we have a question from Jerome Dubreuil from Desjardins. Please go ahead, Jerome. Yes. Thanks for taking my question and also thanks for the additional disclosures this quarter. I'm trying to better understand the guidance here, specifically what we can expect in terms of EBITDA in absolute terms. I basically want to gain a sense of the dynamics between operational leverage versus the short-term costs generated by growth. If ever your revenue is toward the higher end of guidance, do you believe the margins are likely to be closer to the higher or lower end of your margins guidance? Thanks. Hey, Jerome. It's Mike. Yeah, and look, it's a I think it's a really good question, especially given the timeliness of the context of the work we've done on cost rationalization. Right? I think we can predict a very clear look at, you know, our sales and marketing and G&A, which obviously are our major costs against revenue for the balance of the year. T hose aren't going to increase, frankly, much at all. Ultimately then, yes, for every dollar of recognized revenue at a certain point we can get ourselves to, that is just going to simply drive margin. Now, if we look back to the time of the IPO, we had suggested a lot of that operating leverage was going to come from some of the natural growth in the embedded deals. Now, that has not always progressed on a timeframe that we would have thought or suggested. Now we're seeing that in the enterprise as well as we're adding significantly more enterprise customers. I think another important component of this point that I have raised a couple times now about the size of the enterprise deals now, the new ones coming on are outweighing the ones going off. In Q2, if we lost 20 logos, okay, just as a reference point, 11 of those logos were less than CAD 10,000 of ARR. Why is that important? Because it costs us the same amount of revenue. Sorry. Our costs are the same to service that revenue as they are to service a CAD 200,000 enterprise deal or a CAD 300,000 enterprise deal. Because ultimately our reporting to the customer, our service to the customer, you know, is the same, and frankly, that's part of what sets us apart in the market. Our costs are the same to service different contracts depending on their size. That's really important for us, especially now on the enterprise side as we're seeing growth in the size of those contracts. Yeah. Can the EBITDA margin be higher? Certainly, because of all those factors. Am I going to guarantee that it is? No. Right? Because again, like there's a timeliness to all of this, and we are sort of seeing quarter to quarter that, yes, certain things are happening. We have to just be mindful of, you know, how much we are banking on those, for lack of a better term, r ight? I think your point is correct in the sense that, you know, the operating leverage is there, and largely that comes from just the model as it's set up now, and we've got a very stable cost base going forward. Yeah. Great. That's useful. Thank you. The final question comes from Paul Treiber from RBC Capital Markets. Please go ahead, Paul. Oh, thanks, e xcuse me, and good morning. Just two quick ones here. Just first, just on the margin structure, just a quick follow-up from the last question. Just how do we think about the contribution margin on all deals, you know, when you net out variable costs? I'm throwing everything in there like hosting, commissions, bonuses, whatever, even if it's some professional services, w hat's the typical contribution margin on deals? Well, I think it's a little bit dependent, Paul, on, you know, again, enterprise you know, versus embedded and some of their growth. Ultimately, I mean, look, you know, you saw what we posted this quarter from a perspective of gross margin and ultimately you know, the direct cost associated with that below that line, right? So if we're at 91% gross margin and we you know, pay on average you know, another you know, again, depending on the structure of the deal, right, another you know, anywhere from 10% to 20% commission, right? I mean, those are the main costs that would be you know, direct, let's call it you know, related to the deals. W e can factor those in from there. You know, there's a different commission structure with certain types of embedded deals or partnership deals and our embedded deals as well, right? A little bit hard to be much more specific than that. I think you sort of get where we're going, where we would go with those types of costs. It's really any of the direct cost of sales that we identify, And then commissions, right? Yeah, no, that's helpful to understand the potential operating leverage. Just a second one, how do we think about the moving parts in EBITDA to free cash flow conversion this year and then next year, just particularly in regards to restructuring, and then, you know, how do we think about the interest costs from the credit agreement going forward? Yeah. Good question. We actually in the notes to the financial statements actually laid out the credit spread that we're paying for the balance of the year. That should go down next year. We've also got a process in place to hedge the underlying rate, which actually, given where the swap curves have moved in the past, you know, 45 days, actually give us a bit of a net benefit against prime. We'll be a little bit lower sort of going into the back half of the year than just prime plus the credit spread so p rocess underway to do that. Ultimately, that credit spread will come in in 2023, subject obviously to the growth being where we suggest it's going to be against, again, a calculation of net debt EBITDA. You know, really outside of the interest costs, right? There's not going to be much, sort of post this quarter. There will be probably still a little bit of restructuring cost in Q3, but n ot a lot, o kay? We actually have, you know, sort of zero in the model for Q4, right? So now as we get into Q4, it'll really just be the interest cost, Paul. Little bit of restructuring costs in Q3, probably half of what we had in there for Q2, excuse me, which I think, you know, we're very much in line with where we had sort of directed it before. Okay. Thank you for taking my questions. I'll now hand the call back over to Nolan for any closing remarks. Thank you, operator. Thanks everybody for listening and for participating. We've done a heck of a lot in the last year with this company, and we feel very good about the platform that we built, and the scale we've built, and the team we have. We also will have a lot more ability to make this digestible going forward. We hope we did a little bit of that today. We thank you guys for your dedication to this and perseverance. We look forward to speaking to you again soon. As always, we're accessible for questions after the call. Thank you very much, everyone. Thank you for joining us. This This now concludes the call. Please disconnect your lines.