Good morning, and welcome to the LifeSpeak First Quarter 2024 Results Conference Call. All lines have been placed on mute to prevent any background noise, and after the speaker's remarks, there'll be a question and answer session. If you'd 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, press star followed by the number two. 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 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 expectation 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 them to reflect the events, disclosures, or circumstances, except as required by applicable securities laws. Such statements involve significant risks and uncertainties and are not guaranteed 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 the Company's public filings, which include, without limitation, LifeSpeak MD&A and its earnings press release issued today for additional information. At this time, I would like to turn the call over to Michael Held, Chief Executive Officer of LifeSpeak. Please go ahead, sir. Thank you, operator, and welcome everyone to the LifeSpeak First Quarter 2024 Results Conference Call. I am pleased to report that our first quarter featured consistent revenue of CAD 12.4 million and adjusted EBITDA of CAD 2.7 million. Our ability to add new customers and our ongoing focus on prudently managing our costs supported our consistent results. As demonstrated by the participation of our senior management team and board members in our recent CAD 5 million private placement, which closed in March, insider confidence in our business is strong as we pursue near term and longer term growth opportunities. Our confidence is attributable to the fact that we continue to see strong interest for our whole person digital well-being services in our first quarter, and so far in the second quarter of 2024, because our clients value the tremendous support we provide for their mental health, physical well-being, and family needs. Customers also want all of these services from a single supplier, and we are able to deliver that. The areas we cover with our product suite have helped LifeSpeak earn a reputation as a comprehensive service provider for organizations that need preventative digital education and human expertise to support their employees and end users. For our customers, this matters. It's efficient from a buyer's perspective, plus the integration of services comes from a single provider rather than a disparate collective of businesses providing one-off solutions. With this holistic approach, we were able to add a number of new customers in our first quarter, diversify our revenue base, and deliver significant value for existing clients. Notable enterprise client additions for the first quarter included Accenture, KnitWell, and Ascena Retail as new clients. Cross-selling initiatives progressed through the first quarter of 2024, highlighted with the successful cross-sell of our Torchlight product with existing client, Amazon Canada. Overall, we are very excited about the opportunity that lies ahead of us and believe that we are making progress that will support our long-term growth. I will now pass the call to our Executive Chairman, Nolan Bederman, who will provide more color on the quarter. Nolan? Thanks, Mike. We remain optimistic about LifeSpeak's position in the marketplace. On a quarter-to-quarter basis, our core business is progressing, but when we take a longer-term view of our prospects for growth, it energizes our entire company. From support staff to the sales team to senior management, we're excited about LifeSpeak's future, and we've never had a stronger team. While we're in a business environment where corporate spending has resulted in longer sales cycles, we believe there is significant interest in the high-value services we provide. For example, over the past six months, we've had more dialogue with potential direct and strategic clients about our services than we've had in the same period a year ago. While we're not closing deals as quickly as we'd like to, our pipeline and number of opportunities and size of partnerships remains compelling and continues to expand, and we're seeing more strategic potential in our embedded and adjacent revenue pipeline. Our sales and marketing teams are supported by a strong strategy, and our teams now have a much broader and diverse portfolio of products to offer new prospective customers. We're taking a longer-term approach to the success of our integrated business, and we believe we are well positioned for growth in the near term when the market for our services solidifies. We're looking forward to updating you on the progress in the coming weeks and months. I'll now turn the call over to Mike McKenna, who will walk us through our detailed financials. Mike? Thank you, Nolan. Our revenue for Q1 2024 was moderately lower at CAD 12.4 million when comparing to the same quarter in 2023. At the same time, our annual recurring revenue, or ARR, came in at CAD 48.4 million. As a reminder, we report ARR on a constant currency basis for comparative purposes, using a 1.3 Canadian to U.S. dollar exchange rate. Given our overall exposure to the U.S. dollar and movement in rates through the quarter, we also think it's helpful to note that our ARR on a currency-adjusted basis was 49.8 million as of March 31st, 2024. To provide further breakdown of the base of CAD 48 million of ARR, approximately CAD 42 million came from our 902 enterprise clients, while the remainder came from the embedded and other verticals. As mentioned, the business is geographically diversified. This changed slightly as well during the quarter, with now 67% of our ARR originating from markets outside of Canada. This metric will continue to have a positive impact on revenue with the continued strength of the U.S. dollar. Importantly, as we think further about our ARR, no clients account for more than 5% of the ARR as of March 31, 2024. Both our financial results, press release, and Q1 MD&A provide further detail on our ARR breakdown for the quarter and on a historical basis for comparative purposes. Moving on to adjusted EBITDA. Our ongoing focus on operational efficiencies provided the company with an adjusted EBITDA of CAD 2.7 million for the quarter. While this is lower on a comparative basis to the first quarter of 2023, it is important to note that this number is very much in line with our Q4 2023 EBITDA, despite a decline in revenue. Our adjusted EBITDA and related margin are very important performance metrics for the business and highlight our operational efficiencies and commitment to cost rationalization. The highlighted commitment has allowed us to maintain a healthy adjusted EBITDA margin for the first quarter of 2024 at 22%. While this is a decrease compared to the Q1 2023 adjusted EBITDA margin, it is an improvement over our Q4 2023 adjusted EBITDA margin, which was 21%. In terms of net loss, for the first quarter, our net loss was CAD 1.6 million. This compares to a net loss of CAD 0.4 million for the same period in 2023. This was largely due to the decrease in revenue for the period. In addition to the previously mentioned financial metrics, as you know, we also track other KPIs that continue to help us evaluate our business. Consolidated net dollar retention, or NDR, provides a consolidated measure by which we can monitor the percentage of ARR retained from our existing client base. The NDR for Q1 of 2024 was 83%, which is approximately 4% lower when compared to Q1 of 2023. Logo retention rate, which is measured on an LTM basis, was 76% for the quarter. This was approximately 7% lower than reported at Q1 of 2023. The decrease is predominantly due to a continued transformation of the go-to-market strategy to focus on larger customer opportunities, given the potential for multi-product sales and a focus on higher-margin opportunities, given the cost to service customers is generally similar across the size spectrum. On to capital structure, and with respect to the current capital structure, as of March 31, 2024, the company had significant cash on hand at the end of the quarter and was in compliance with all debt covenants. The company continues to be in compliance with all covenants as of today and believes it is in a stronger financial position now due to the private placement, which was closed on March 14, 2024. The gross proceeds of the CAD 5 million private placement went directly to repay the company's senior outstanding indebtedness. Following the completion of the private placement and debt repayment of CAD 5 million, the company also made a scheduled amortization payment of CAD 1.8 million. As we have previously noted, the company anticipates that the amortization of senior indebtedness will continue to be approximately CAD 1.8 million per quarter through 2024. On to our outlook for Q2 of 2024. Based on the outlook that both Michael and Nolan referenced earlier in the call and the continued implementation of our business strategy, we expect our results for Q2 to be largely consistent with those of the first quarter of 2024. The theme of growth remains available to us, and overall results will be in line with the viewpoint provided on the Q4 results call as well. And you can see the consistency in what we're trying to deliver from the perspective of cost management and margin profile. With that, I'd like to thank everyone for their participation in the call this morning. Well, I believe we'll now open up the call to questions. Operator? The first question comes from Doug Taylor at Canaccord Genuity. Apologies, they've just withdrawn. The first question comes from Mike Moriyama from RBC Capital Markets. Mike, your line is now open. Please go ahead. Thank you, and good morning, everyone. It's Mike Moriyama on for Paul Treiber this morning. Just wondering if there are any parts of the four acquisitions you guys made historically that you might view now as non-core and potentially look to monetize through divestiture? Good morning, Mike. Mike, it's Nolan, and I apologize for the- No, I was gonna say apologies for the slight technical difficulties, and I was gonna suggest that that's a good question for Michael and Nolan to tackle, but you know, the answer straight away- Yeah. Would be no. Yeah, and maybe just to put a finer point on it, again, I agree with Mike. Sorry for that bizarrely awkward silence. I thought maybe we got cut off. We actually, you know, maybe unlike other strategies, we've pursued very much an integration strategy, so very core to our thesis. And I think one of the rays of sunlight we've seen, and are starting to see even more, is that our product suite is the reason we're having some pretty interesting conversations with a large number of strategics. And importantly, the demand for the product is quite balanced, and the coupling of the product is all over the place. As well, we've integrated the teams. So from our standpoint, it's not really something that would work well for our business, nor are they really run as separate silos at this point. They're certainly offered as separate offerings, but the businesses have been integrated, and the demand for each is sort of very much along the lines of what we... You know, the balance that we had sort of hoped. In fact, if anything, we're seeing, you know, more demand from places we might not have necessarily expected it. So, generally speaking, it would make... We're not, it would be negative value to remove any one feature. That's great. Yeah, no, that makes sense. Yeah, obviously with that cross-sell deal you guys closed, I guess I can see the value of having them all together. And then just on the level of OpEx in this quarter, so nice to see that it ticked down a little bit. Do you think this level is gonna be sustainable going...? Do you think you guys might be able to return to revenue or ARR growth at these levels going forward? So maybe I'll start, and then Mike McKenna, you can add more detail if you think necessary. I'm gonna... I'll just talk about it from a management standpoint. So what we've tried to achieve, as a management team, is a balance between being fiscally prudent, which we try to be every day, and Mike can talk a little bit about some of our processes there, but also maintaining a growth infrastructure. We do believe, again, I'm gonna be very careful what I say on forward-looking statements, but generally speaking, I think most people in the industry would agree that the spending will return. We think we're better prepared than many to accept that spending, but we have maintained what we'll call investment spending in both the product and the go-to-market teams. So we actually believe that this isn't a handicapped investment level from our business, meaning we think it scales very well when growth returns. You know, we always have room to cut costs, but we've tried to strike a balance between being as prudent as we can, producing the right, you know, as much profit as we can, but also not handicapping the future growth. So we don't think we have lags in costs or, or big costs that we have to catch up later. We think we're doing all of those things and investing in the product. So I think the best way to answer your question is, we believe we're very scalable from here. And as growth returns in this industry and we capture, hopefully, our more than our fair share of it, that should result in the numbers. Mike, anything you wanna put a fine point on, so, so I don't step in it? Yeah, I just think the business is set up really well for, you know, to take advantage of the operating leverage that's created here. You know, I think, you know, in the question, you know, sort of pointed out in terms of the numbers, I mean, the reality is, in Q1 here, 2024, our- ... OpEx, if you want to call it sales and marketing and G&A, is very consistent with Q3, right? We signaled in Q3 of 2022, as we signaled, that would be the case, you know, on the Q4 call. I think we're getting to a very consistent run rate of cost. There's always going to be a few things, as we've talked about in Q4, that, you know, are maybe potential sort of year-end adjustments that come through audit process and different things. But the reality is, when you start thinking about, you know, the, the, the consistency sort of quarter-over-quarter, right? You can trace it back to Q3 of 2023, you can go back to Q1 of 2023. You know, we're sort of CAD 500,000 ahead of where we were in Q1 of 2023, right? So we're not gonna necessarily be sort of, you know, taking out CAD 0.5 million a quarter. That's not the objective, but the reality is, getting to a good consistent run rate, I think is really important, and it sets up the business for really good operating leverage. And also it's, you know, good, strong predictability on our side. With some of the investments Nolan mentioned, I think that's really important, right? We're trying to also make sure that we as we rationalize costs in certain areas of the business, you know, invest in others, right? And so I think that, you know, we've done a good job of doing that and maintaining a, you know, a very consistent cost base, you know, which we endeavored, you know, six quarters ago to suggest we would. That's helpful. Thank you very much. I'll pass the line. Thank you. The next question is from Doug Taylor from Canaccord Genuity. Please go ahead. Yeah, thank you. Good morning. You had constructive things to say about the pipeline momentum, the customer engagement in your prepared remarks. Last quarter, you spoke to the idea of, you know, revenue inflection, potentially in Q2, after Q1 being a more comparable quarter sequentially. Is that something you're still suggesting we should expect here? Or is the prospect of that given, you know, some of the slower sales cycles or further churn, has the prospect of that been pushed out here? Uh, Doug- Hey, Doug, good morning. It's Mike. Oh, yeah. Sorry, Mike. Go ahead, Mike. Sorry, I was gonna start with the numbers, and then Mike, maybe you can get Michael in, he can get into, you know, a bit more of the detail. And just quickly, Doug, to touch on sort of, you know, what we think, and I, you know, I've been pretty consistent with this in terms of the financial piece over the last couple of quarters, right? You know, it's probably still another quarter of sort of being very much range-bound, both, you know, on the revenue side and the EBITDA side. But, you know, I think the momentum in the pipeline is continuing to build. So I'll let Michael and Nolan provide a bit more color on that. But, you know, from the numbers perspective, I think you can sort of see, we try to be very, you know, consistent in the sort of signaling as to where we think things will be shaking out quarter to quarter. Mike, sorry for, sorry for cutting you off there. That's okay. No, I would reiterate that, Doug, we are, you know—and this reminds me very much of, you know, 2008, 2009, when we dealt with it. You know, things are bleak until they're not. And so we are seeing the pipeline moving along to contracting on some bigger opportunities too, that will give some real juice to our growth this latter half of the year. The other thing we're seeing, again, this reminds me of 2009, are some opportunities that we were flagging as great opportunities for sales towards the end of last year, that really disappeared, and we weren't sure if they were gone. They've, you know, they've been going really well, but have come back on the table. You know, there's one in particular, without getting into too many details left, but just the concept of, you know, hadn't heard anything for, like, four months and got a call last Thursday saying, "We need to move fast to sign this up in Q2, so we can launch in Q3." So, you know, let's, let's make it happen, and we're putting all our resources towards it. But these are. It's not just the pipelines growing, but things are moving into the commercials and contracting on a number of fronts in, most excitingly, in some of the adjacent. So you know, exactly what month is it gonna be? I don't know, but it's, it's coming, and like, we've definitely turned a corner on that front. There's less discussion about budget and pauses, and we're waiting, like, people are getting back to doing business. I certainly believe we have the team to execute on it, and that's what we're focused on now. Okay. So I mean, in light of, you know, the prospect of potentially an uptick in revenue towards the end of this year, and Mike McKenna, you've been pretty clear on the cost expectations. So I guess my question is, given that, you know, a lot of your debt commitments are now, you know, current, you know, maybe I can ask you, what tools, you know, you have at your disposal to help address that leverage here, you know, beyond, you know, issuing further equity as you did this last quarter? Can you maybe speak to the range of options at your disposal? Hey, Doug, it's Mike. I'll start, and then if, if Michael and Nolan want to add anything, they're, they're obviously welcome to as well. But in terms of the context of the discussions with the lenders, you know, they're very consistent, very ongoing, very much focused at this point on potential refinancing, right? That was noted in the Q4 financial statements as well, through the audit process, right? So that obviously had to be, you know, vetted as part of that process, but those discussions were ongoing. And as they, you know, were consistently through Q1, part of the- ... frankly, need to classify all the debt this quarter, as a little bit of just an accounting guidance point. The leverage that we have, or the commitment that we have, outside of the bank debt, you know, is not in all the technicalities of the word current. I won't get into a big sort of accounting debate here, about IFRS standards. But I think, you know, importantly, we are ongoing in our discussions with Scotia. We noted in the press release also as well that, you know, we've repaid a pretty significant, you know, chunk of capital, even just since December thirty-first, right? With an amortization payment at the end of the month, at the end of Q4, excuse me, and then the scheduled amortization this quarter, along with the capital raise, right? So, you know, that's a pretty decent, you know, amount of repayment, right? And at this point, we're looking at scheduled amortization payments through the balance of the year of CAD 1.8 million per quarter, as I mentioned in my remarks. So, outside of that, there isn't an ask at this point for additional repayment. And as we noted, you know, we're in line with our covenants. There was an issue, a little bit of an issue with the ARR test for the month of March. But in terms of the traditional bank covenants, you know, we're onside. So we're gonna keep working to aim to get that debt refinanced on the senior side, because that should be, you know, absolute, you know, top focus, and, you know, part of our consistency on the cost side and delivering good, strong EBITDA and EBITDA margins, you know, quarter-over-quarter shows that, you know, there's cash flow in the business and can service the obligations that we have. And so, you know, we're working to continue to do that. And so, you know, I think the discussions for refinancing are ongoing. You know, obviously, they have to be. And, you know, at this stage, you know, that's the focus. Thank you. I'll pass the line. Thank you. The next question is from Salman Rana from TD Securities. Please go ahead. Yes, good morning. This is Salman Rana on behalf of David Kwan. Hope you're all doing well. So good to see-- good to hear all the commentary around the pipeline. I believe, Michael, earlier on the call, he also spoke about seeing some potential on the embedded side. So could you provide some more details like, on how things are going there and then whether we could see, further, like, any new developments on that front? So, this is Michael, and Mike, you can add after if you'd like. No, we've been working on this, as everyone knows, for a long time. You know, the environment, obviously hasn't helped, but it also circles back to the first question that as we've gone back to market on these embedded deals or these large adjacent deals, it's critical that we actually made all the acquisitions we made at the IPO. The fact is, these large players are very attracted to, working with one vendor who has top-quality solutions across, you know, physical caregiving and mental health, and substance use management. We are definitely seeing, the pipeline in the large embedded and adjacent, is growing particularly fast. They, they're very keen to get back to business. They, you know, many of them are fighting in commoditized worlds against each other, and stripping clients from each other and looking for ways to grow revenue and margin within their existing clientele. In particular, HCM and payroll, and insurance, and LMS, and learning systems are the ones we're seeing the most traction with. And as, you know, as I mentioned earlier, we've seen some opportunities that were seemingly off the table come back on, you know, quite, not unexpectedly, in the sense that the conversations weren't going well, but they had disappeared and are coming back. So I think the fact that some are coming back, the pipeline's growing, and that we are seeing a number of these move into contracting now. So it's not just happy talk. We're actually, you know, debating over numbers, and I don't think it'll be that long before we get there. And so, you know, this is the element of the business that, you know, provides a lot of scale, a lot of torque from a margin perspective. You know, we don't need to spend more to execute on these, so it's very exciting. And in spite of the environment we've gone through in the last little bit, like, honestly, couldn't be more excited about where this is heading. But it's not just reiterating, it's tangible things, meetings, proposals, long periods of discussions, creating work integration streams on the product side as well as commercial, and now moving into contracting. So hopefully, that's helpful, but very, very tangible progress, sequential progress. Yeah, that's really helpful. I noticed in the MD&A, you cited that revenue was down because some entities were either repositioning their programs or were losing funding. But on the call, you know, we've heard much, I guess, much more positive commentary about your pipeline and so on. So what are you hearing from clients in Q2 to date? Are you still seeing that some of your clients are, again, losing funding? They just don't have the budget anymore for this, or? Are you seeing much more interest, like, just like you said earlier on the call? So how do you balance these two comments? Sorry, it's Michael again. Why don't I handle this? So, you know, there's always a lag between when there's discussion on what is happening, but we're not hearing the same budget cuts. Like, over the course of the churn, which has been higher than usual, and we're getting our hands around it, we're not seeing... It's literally like just a handful across all of it, where we're losing business to another player, losing clients to another player. Like, our offering is best in class, and you know, and we're not seeing that. So it's been budget, budget, budget, budget. And I would say, not that we're not hearing it at all, but it's a lot less. And so that's why we strongly, you know, and we've been through this before, having been 20 years, that's why we're feeling very confident that, not just on the new revenue, but on the churn front, that we're, that we're turning the corner. There still is some churn in the system. You know, some decisions have been, have been made historically that are still, you know, being flushed out of our system. But, you know, as we start to hear it, you know, the, the commentary on budget, it's like it's one of the first signs where, where this is really changing. The one thing, absolutely, and everyone on this call knows for certain, is that the underlying needs of what we're addressing around anxiety and depression, and well-being, and caregiving, and dementia, and all the stuff that we cover, unfortunately, in this world, is only increasing daily. The underlying needs of what we are providing, is increasing daily. And thankfully, the spending environment is changing, to match that so that they can address those needs for their employees and members. Okay, that's very helpful and, good to hear. And my last question, I guess this one's for Mike. So if I look at the consensus for fiscal 2025 right now, it implies revenues of around CAD 60 million for the full year. So given that, you know, your, your cost base is pretty stable now, where do you think, like, what do you think the margin profile could look like, in the next year? Thank you. Yeah, look, I appreciate the question, right? I think, you know, we've not been giving, you know, formal annual guidance, right? I think, if I look back though, over the last number of quarters, right, and if we had a 22% EBITDA margin this quarter, you know, 21% in Q4, it was a little bit closer to 25%, sort of in Q2 and Q3 of last year, and about 27% in Q1 of last year, right? And revenue in Q1 was about CAD 1 million higher, right, in the comparable period, right? So if you think about that, right, and how much we've taken out of the expense line in that time, right, I think you're going to get a pretty good sort of general thought process, right, around where the operating leverage could go, right? Because if we were to put CAD 1 million back to the top line now per quarter, right, ultimately, that's gonna be able to take that margin profile even higher, right? Because of where we are on the cost side, right? So, again, we're staying away from providing, you know, formal annual guidance. But I think I've been very consistent and clear, especially over the last sort of three quarterly calls, with some quarter-to-quarter guidance. I don't think we did that again today or do that again today. But I think, you know, given where we are on the cost side, you can, you know, sort of pretty consistently see that we can get that margin profile heading in the right direction, just as soon as revenue turns, right? Yeah, that completely makes sense. Okay. Thank you, guys. I'll pass the line. Thank you. The next question- Thanks for other questions. The next question is from Justin Keywood from Stifel. Please go ahead. Good morning. Thanks for taking my call. I just had a broader, strategic question around, artificial intelligence, and is this something that LifeSpeak is, looking into, perhaps in driving some cost efficiency, or are there other, competing products out there, that could be a potential threat in, using AI? Morning, Justin. Thanks for the question. Justin, Nolan's been spending time on that, so why don't we give the floor to Nolan on that one? Yeah, let me... Thanks, Justin. I'll give you a kind of— There's two categories broadly that we're looking to employ, we'll call it AI into. One is just operational efficiencies. So whether that's helping to manage clients more effectively and efficiently, whether that's, you know, additional help in building the actual product, we're looking at that both on what can we do on our own and what other, you know, vendors can we leverage to do that? I think as people well know, you know, there are 8 million companies out there trying to figure out how they can uniquely leverage AI. I'm not actually sure a lot of these things are companies, they're activities. We spent some time making sure we know what's out there and where we can leverage it, where we can do that on our own, we do that on our own. We think that there are some components of AI that are definitely helpful in the delivery of what you could call kind of this well-being care. You know, the risk is, I think- ... you can over utilize that and have products that, essentially are devoid of the human contact and human experience. You know, if anyone's used any of these tools, which I'm sure everyone on this call has, sometimes the responses are fantastic and very helpful in many ways, and sometimes the responses are terrifyingly unhelpful. We don't believe that the full solution for mental health and physical well-being is AI-based. Having said that, it's a great enabler in conjunction with what we do. So, you know, do we ever think that we're gonna replace our expert-led content with AI-generated content? We do not. Will we leverage AI in the production of that and in the tools and solutioning so that we can build a more robust experience? Definitely. So I think that's how we think of AI. And again, whether we, some of that's work we do in-house, some of that is leveraging partners who are trying to experiment with different uses of AI. But we definitely think it's important as a component. Again, I, we view it as something that can also help unlock extra utilization, and it used in conjunction with our existing products and product roadmap. We think it can just enhance both our efficiencies and how we get there, which speaks to a little bit the margin Mike's talking about, as well as the efficacy of our product. But I just caution folks, I think our view is to utilize AI as the core determinant of value in these sensitive spaces, probably not the right answer in the long run. So again, it's a tool, and definitely helpful, but not the sole answer. Interesting. Thanks for taking my question. We currently have no further questions, so I'd like to hand back to Nolan Bederman. Well, thanks, everybody. We do appreciate your time. Sorry for the glitch in the middle. And we look forward to filling you in on what we hope to be some progress as the markets continue to improve. So thank you guys very much, and we look forward to talking again. This concludes today's call. Thank you for joining. You may now disconnect your line.