Good morning, ladies and gentlemen, and welcome to the Think Research Corporation First Quarter 2023 Financial Results Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session, and if at any time during this call you require immediate assistance, please press star zero for the operator. Also, note that the call is being recorded on Tuesday, May 30th, 2023, and I would like to turn the conference over to Sachin Aggarwal, CEO. Please go ahead, sir. Oh, thank you, operator. A good day to everyone who's joining us this morning. Also joining me on the call today is our CFO, John Hayes, who's going to review the financial results in more detail after I discuss some operational achievements during the first quarter of 2023. I'm proud to say, very proud to say, that Q1 was another record for us in terms of revenue. We also reported our second quarter in a row of solid, positive, adjusted EBITDA. With the major five-year, CAD 40 million SaaS agreement that we announced in the quarter and the expected conversion rate of our sales pipeline in our software and data division, we're confident that we should continue to set revenue records over the next few quarters with continued positive adjusted EBITDA. As we stated earlier this month in our fourth quarter conference call, we're just getting started. Before I go into our operational results, I wanted to touch briefly on what we're becoming and where we think that we have some major long-term opportunities. With the integration of our acquisitions and ongoing product development, we found ourselves very well positioned to help constrained healthcare systems everywhere to improve patient access to high-quality healthcare services when and where they need it most. As an industry leader in delivering knowledge-based digital health software and data solutions, our evidence-based healthcare solutions support clinical decision-making processes, improve access to services, enable practitioners to gain better capabilities and knowledge, and help to standardize care in order to facilitate better healthcare outcomes. The company has gathered a significant amount of data by building its repository of knowledge through its digital solutions platform and group of companies. With this data, we strive to be more essential to our clients and their clinicians every day. This is reflected in our recent performance, in our pipeline, and I think more importantly, the speed at which our pipeline is converting. Our customer base typically includes enterprise clients. These are hospitals, health regions, healthcare professionals, right up to and including provincial or state governments. Think's data and software division licenses its solutions to around 14,200 facilities for more than 320,000 primary care, acute care, and long-term care doctors, nurses, and pharmacists that rely on the software, content, and data that we provide to support their practices. Around 60% of our software and data revenue is recurring, of our total revenue, 80% is either recurring or reoccurring, driven by an increasing level of SaaS licensing, especially over the past few quarters. We expect recurring revenue to grow at a faster rate than total revenue for the foreseeable future. The company collects and manages pharmaceutical and clinical trials data in its clinical research division. The bottom line, at least from Think's perspective, is that over 3 million patients and residents annually receive better care due to the essential data that Think produces, manages, and delivers. Think also operates a clinical services division, which is a network of digital-first primary care clinics and medical clinics providing private pay elective surgeries. In the first quarter of 2023, the key drivers of revenue growth were the clinical software and data SaaS agreement, along with continued strength in the company's clinical research division. Growth in these two lines of business was offset partially by year-over-year declines in revenue from clinical services. The staffing changes that we made in Q4 are beginning to work their way through operations, and we are confident that revenue growth will recover soon in that division. Before I hand it over to John, to discuss our financial performance in more detail, I want to go briefly beyond the cost synergies for a few minutes. With the acquisitions, we gained access to both technology and talent. Starting mid-year of 2022, we began to really understand and begin to leverage both the market synergies and the solution synergies that we gained. Combined with our objective to become more essential, we leveraged our talent and technology to deliver a SaaS-based Digital Front Door solution to the market, as well as a new SaaS-based learning management system, or LMS. These are being delivered to clients right now and will be key solutions for future growth and earnings leverage. I'd like to invite John Hayes, our Chief Financial Officer, to review the financial results in detail for the quarter and year to date. After he reviews the financials, I'm going to conclude with a bit of an outlook, which offers some thoughts on how we plan to evolve as an essential solutions and data service for clinicians. Over to you, John. Thanks, Sachin. Good morning, all. Today's results, along with all of our disclosures, can be found in our MD&A and financial statements, which we posted to SEDAR after the markets closed yesterday. Before I outline our results, I'd like to mention that our view on 2023 has not changed materially since our last earnings conference call at the beginning of this month. While there is a risk of recession in 2023, most of our clients are governments, government agencies, and large pharma clients that have the liquidity to continue to pay for our services. While there are some exceptions that could cause credit or revenue losses, these larger clients often think some protection from an economic downturn. To complement our expected revenue growth, we believe that the synergies gained over the past 24 months will provide a stable and lower cost base. I know this cost base is going to grow over time as we grow revenue. We're comfortable that it will continue to grow at a lower rate than our organic revenue growth. We also believe that the predictability of our revenue is likely to improve as we grow, because a larger portion of our data and software revenue is recurring SaaS revenue. Let's turn to our total revenue and business line contributions. In Q1 of this year, we reported record revenue of CAD 21.8 million, which is an increase of 8% or CAD 1.6 million compared to Q1 of last year, driven primarily by organic growth in our software and data business and our clinical research division. Growth in these divisions was partially offset by revenue declines in our clinical services division. Compared to the fourth quarter of last year, sequential revenue growth was relatively flat, growing by CAD 0.2 million or approximately 1%. Q1 2023 revenues from each of Think's primary business lines were as follows: Our software and data solutions revenue grew by 11% to a record CAD 9.4 million compared to Q1 2022. With new SaaS contracts expected and a growing pipeline of similar opportunities, we expect solid, organic, and mostly recurring revenue growth to continue in this line of business over the next several quarters. Our annual recurring revenue, ARR, was CAD 22 million at the end of Q1. That's an increase of 49% compared to CAD 14.8 million on December 31st last year, and an increase of 53% compared to the CAD 14.3 million at the end of March last year. ARR is derived exclusively from our software and data solutions line of business, and the strong growth in the quarter reflects the large SaaS deal that we announced in March. As a percentage of annual run rate, recurring revenue in Q1 was approximately 58% of total revenue in the software and data division, and most of the revenue in this business line that isn't ARR is reoccurring in nature. Our clinical research revenue also grew by 17%, or CAD 1.4 million to CAD 9.4 million in Q1 2023, compared to Q1 of the prior year. Sequentially, revenue in Q1 2023 declined by CAD 1.8 million compared to the Q4 last year, and that's due to seasonality, primarily in the clinical study schedule. Now, notwithstanding seasonality, we have solid visibility on clinical research revenues going forward. For clinical services, the revenue declined by 14% to CAD 3 million compared to Q1 last year, and it was flat compared to the CAD 3 million reported in the immediately preceding quarter. Switching to gross profit, it rose to a record CAD 11.4 million, up 25% compared to the same period a year ago, and up 12% compared to the immediately preceding quarter. Gross margin improvements were due to a combination of higher revenues, a higher share of revenue from transactions that carry a higher gross profit margin, and lower cost of sales relative to revenue, resulting from the company's previously disclosed cost synergies efforts. Gross margin increased correspondingly from 45% in Q1 of 2022 and 47% in Q4 of 2022 to 52% in Q1 of the current year. As you all know, or may know, we monitor adjusted EBITDA closely. I'm happy to report that adjusted EBITDA has improved by CAD 1.4 million to CAD 1.1 million, compared to a Q1 loss of CAD 300,000 in the prior year. Sequentially, compared to Q4, adjusted EBITDA declined by half a million dollars compared to the CAD 1.6 million reported in that quarter. The decline in adjusted EBITDA was primarily the result of recognizing an annual government grant in Q4 of last year, which reduced our reported R&D expense in that quarter. Now, though, Q1 results represent the second sequential quarter of positive adjusted EBITDA, and that gives us confidence that we're on a path to sustain profitability under this metric. For those of you who track EBITDA rather than adjusted EBITDA, I'm happy to report that Think has recorded its first positive EBITDA quarter, coming in at CAD 0.2 million. Now let's review expenses. Total operating expenses were relatively flat at CAD 14 million in Q1, 2023, compared to CAD 14.1 million in the same period in 2022. If we exclude depreciation, amortization, and stock-based compensation, which are primarily non-cash expenses, operating expenses grew by CAD 0.9 million or 9% over that period. These expenses, when expressed as a% of revenue, remained the same at 47% of revenue in Q1, 2023, compared to the same period a year ago. General and administration expenses of CAD 6.4 million in Q1, 2023, grew by 3% compared to CAD 6.2 million in Q1, 2022. Research and development expenses for Q1 2023 increased by 9% to CAD 2.1 million, compared to CAD 1.9 million in Q1 2022, as we increased spending on software and data solutions to address current and future market opportunities for the Digital Front Door and LMS solutions Sachin mentioned. Sales and marketing expenses for Q1 2023 grew by 2% to CAD 2.4 million, compared to CAD 2.3 million in Q1 of last year. Think's focus for marketing continues to be on lead generation and branding activities. Think's cash on hand increased to CAD 4 million on March 31, 2022, compared to CAD 3.4 million at the end of last year. This improvement was a result of normal working capital fluctuations during the quarter. With that, I will turn the call back to Sachin. Hey, Sachin, do you have a disconnect happening? Apologies. There we go. All right. Thanks, John. Increasingly, Think's software and data solutions are being seen as essential for constrained healthcare systems to improve patient access to high-quality health services where they're needed and when they're needed. Our pipeline is full of these types of opportunities. Our sales pipeline and backlogs have never been stronger. We're really excited about the visibility we have for fiscal 2023 and beyond. With a major minimum 5-year SaaS contract signed during the quarter in our data and software line of business and a strong backlog in the clinical research business, we're gaining revenue momentum. We're really encouraged that our strategies are paying off. I'd like to just remind investors of what we're focused on and why we expect to gain more leverage in our model. First, we're adding more users to current licenses by promoting adoption and usage. There's a lot of room for us to increase users and usage of already deployed solutions. As we add more users, our solutions become more essential to those licensees, which gives us pricing power and creates switching barriers. Here are some things that are happening right now. Our new Digital Front Door solutions are solving urgent challenges for patient access to adequate health services, including primary care and emergency care for health networks and governments. Our learning management systems are being used to fill urgent knowledge and learning gaps through all lines of healthcare delivery, from hospitals to pharmacies, and to help standardize care across delivery geographies for our clients. Our connectivity solutions are helping patients get better referrals and practitioners to better manage their practices. Finally, with a user base now exceeding 320,000 clinicians, we believe that direct user licensing could generate entirely new revenue streams. For example, we're now cross-promoting and cross-selling pharmacist education solutions directly to pharmacists that are on our Pharmapod incident management network. We continue to have significant success with our Pharmapod solution. Our new product roadmap includes creating entry points that third parties can leverage our platform to reach these 320,000 clinicians. Already, new clinical knowledge customers are paying Think for access to this platform, thereby creating new payment streams for existing technology, you should expect some forthcoming announcements that will really bring this to life. As we transform into a solutions-based organization focused on essential clinician data, we're excited with our annual growth rates and our path to profitability. Due to the nature of some of our lines of business, we of course expect quarterly variances in performance due to project work that will show up in our results as delays or accelerations in programs. That is entirely normal for us. However, we're extremely excited about the prospects for Think over the coming quarters as a persistently EBITDA positive, high-growth company. With that, this concludes our prepared remarks, and I will ask the operator to open the line for questions. Thank you, sir. Ladies and gentlemen, if you would like to ask a question, please press star followed by one on your touchtone phone. You will then hear a three-tone prompt acknowledging your request. If you would like to withdraw from the question queue, please press star followed by two. If you're using a speakerphone, you will need to please lift the handset before pressing any keys. Please go ahead and press star one now if you do have any questions. Your first question will be from Doug Taylor at Canaccord Genuity. Please go ahead. Thank you. Good morning, Sachin, John. I'd like to start by asking about the CAD 40 million 5-year agreement. I think it's, at this point, fully rolled out. One, can you confirm that? Can you speak to customer response and the usage of that product now that it's, you know, been deployed in market? Yeah, great. Thanks, Doug, for the question. A deployment of this nature takes it's sort of a forever deployment in the sense that a government will deploy it in an initial form, and then they will always be continuously deploying it in a more and more complex form. I don't think it's fair to say that it's fully rolled out. In fact, this is the kind of program where we will have ongoing, stable, implementation and configuration fees for the very, very long term. That being said, your point is correct, that the solution is live, and it's been live now for a relatively short period of time, what we can say is that the reception from patients and from government has been extraordinarily positive. That particular government has not yet done a full announcement and rollout of the solution, we would call it to be in its, in its, pre-announcement phase, which means that volumes are, as you can expect, very low because nobody knows about it. We do expect, but nonetheless, it is getting volume. We do expect that to increase quite substantially, once there's a formal announcement, which we expect in the coming weeks. This is a SaaS deployment, so it's not like you have gearing towards the volumes, or is that the case? Am I understanding that correctly, or is it still already operating at the sort of CAD 8 million a year sort of run rate? Yeah, that's correct. There's no volume pricing associated with the particular contract. It's an enterprise deployment based on a population size. Okay. Thanks for that. You've spoken about, you know, with a lot of confidence about your ability to demonstrate continued growth, particularly in the, you know, your software and your SaaS solutions in the coming quarters, based on the pipeline of potential business you have. Is it too early for you to take this current agreement as a, you know, as a reference customer to others, or is that happening already? Maybe you could just describe, you know, that pipeline of potential new business in a little bit more detail for us. Yeah, yeah. Thanks. Yeah, absolutely. This is, it's a little bit hard to use a reference client when you can't name them yet. That being said, I think the overall answer is yes. Our pipeline is rich and deep with other jurisdiction-wide deployments and other large enterprise deployments. Now, remembering, Digital Front Door has. I'll give you a couple of examples as a reminder. We have a deployment in Ontario, we have a deployment in this other province that's unannounced, but we also have a deployment which is a sectoral deployment, which is not, and in, which is not a jurisdiction itself, and that's the One Stop Shop program in Ontario, which is specifically for children and youth, for the mental health of children and youth. Think of it as a digital version of Kids Help Phone. There are, you know, Digital Front Door will be deployed to jurisdictions or governments, but it will also be deployed within particular segments or subsegments of a healthcare system. We have both types of deployments currently in our pipeline, and we've got quite a number of them. As you continue to bid on, you know, other jurisdictions that are deploying this type of solution, can you maybe update us since it's a, you know, relatively new product or deployment for most of these places? What the, you know, what the competitive landscape is right now and how that's evolving for that type of deployment? Who else is bidding against you? Yeah, sure. I'm happy to give a bit more color there. While it's a new solution for, you know, us and the folks on this call, this is a solution that's been under development for, you know, some time. During COVID, it had, of course, health systems, governments, jurisdictions, so on and so forth, were focused on COVID rather than on system transformation. As a consequence, I think it was the deployments of Digital Front Door and its various components were relatively limited during that period. I think some of the resurgence has to do with right product, mature product at the right time, right? It's I don't think it's say, fair to say that it's an entirely new solution. I think this is the components have come together over a relatively long period of time, in fact. They're quite mature. The other thing I'd say, Doug, is that Digital Front Door is actually, it's while it's on a single platform, it actually has multiple different components to it. Different, and this is what suits it so well to complex jurisdictions, is that some jurisdictions might want, you know, 5 of 6 components, some may want 6 of 6 components. This solution can live in a, in a, in a hybrid model, which where governments, for example, already have a small piece that they've developed themselves or are using from another competitor. What we can say is that when we look at the competitive marketplace, we actually don't see others that have all of the solution components, right? That are really truly needed for a jurisdiction-wide Digital Front Door solution. That being said, you know, you could imagine for some for some components, like, for example, within Digital Front Door, there's a virtual care solution. Of course, you see folks like, you know, Maple and others that might compete within that small component of it, right? You might see someone like Orion that competes on some of the back-end functions or integration features associated with Digital Front Door, right? You might see someone like Ada or others that are just a symptom checker on the front end or the chatbot, right? Again, there are folks that have components of the solution, but there aren't. We actually in our own jurisdiction-wide scans, it's for the full complexity, we actually don't see other organizations that have that at this time. Okay, thank you for the call. I'll pass the line. Thank you. Next question will be from Rob Goff at Echelon. Please go ahead. Thank you very much, and congratulations on the quarter and more particularly, the outlook. My question would be on the DFD and the LMS. Like, can you talk to the sales pipeline there? Is it primarily or exclusively Canadian, or are there other international jurisdictions where this would be applicable, or is that further down the road for you? Yeah. We're gonna separate the two. Let's say, talk first DFD, where, there's deep pipeline in Canada and growing some very notable expected deployments in other places outside of Canada, right? That pipeline, we've been working on that pipeline for, I'd say, a longer period of time, because, I think we all know that large enterprise deployments or government-wide deployments can take, you know, 18 months to mature within a pipeline. As a consequence, you know, you can expect that that pipeline is we've been working on for some time. The LMS product, as a reminder, we deployed it in Q4 of last year. The pipeline, and that's a new LMS system, and our primary objectives were to transition all of the users from the old, third-party LMS system being used by MDBriefCase and OncologyEducation over to our new in-house. Pipeline is newer or younger as it relates to LMS. However, we've already had some very quick and early successes, and those successes have been, let's say, roughly 50% Canada and 50% non-Canada. That's very, very early, but I would say we expect it to be applicable not only in Canada, but in other places. One of the benefits of our LMS system is that it comes with built-in users because of our MDBriefCase and OncologyEducation lines of business. If a jurisdiction, let's just use Ontario as an example, we're interested in our LMS system. They can rest assured that there are tens of thousands of users that are already already have logins for that system. That plays in favor of our LMS as it relates to others. Very good. Thank you. Perhaps can I ask about the outlook for biopharma and the momentum that you were seeing there? Yeah, so there's, I'm gonna mostly pass it to John here, but what I would say is that, there's a regular seasonal shifts that occur in Q1, Q2 of any fiscal year, because our sponsors or our clients, their deadlines are really end of year. You do see some shifting in Q1, Q2, but overall, our backlog is very strong, and so we have extremely high visibility on a full year basis to our overall results from biopharma. John, shall I pass it to you for any further comment? Recording in progress. Contract for fugitive gas detection. I think we're doing some. Somebody else has got a line open there. Okay, thank you. Yeah, just gonna echo most of what you said there, Sachin. I mean, we did have a significant backlog at last year-end, which provided us with really good visibility to revenue in this year. That said, I mean. Biopharma is somewhat at the mercy of our large pharma clients, who may not have a drug ready when they think they will. They think they're gonna have drug ready for testing February 15. We book some time in the clinic for them, and then, they aren't able to actually deliver the study at that time, due to some, you know, whatever the delays are further up the pipeline. That can cause us to push some things here and there, and then they may also have some other administrative reasons. As Sachin said, as the year, the calendar year gets closer to the end, you know, they kinda get jammed in terms of delivering the results that they want to deliver, and so we expect a catch-up. With the large backlog, and we kinda say, "Oh, boy, you know, we've got a really good visibility and a higher level of revenue throughout 2022," and we're seeing that come true. There are quarterly fluctuations. You know, we expect the back half of the year to be stronger than the front half. Yeah, I hope that answers your question. That's perfect. Thank you. Thank you. As a reminder, ladies and gentlemen, if you do have any questions, please press star followed by one. Your next question will be from Jerome Dubreuil at Desjardins. Please go ahead. Yeah, good morning. Thanks for taking my questions. The first is on the SaaS business. Your referral, Digital Front Door is growing nicely. You mentioned, it's a mature product, not mature in terms of the growth, but mature in terms of what needs to be done for the product to be operational. The heavy lifting appears to be done in terms of the work your engineers have to do. My question is, what are your technical people working on now? Are they adding modules, maybe helping with implementation or working on other products? Thanks, Jerome. Our flagship software products are gonna continue to be Digital Front Door, our learning management system, and then second, secondarily, our Pharmapod solution, which is also doing very, very well. When I say the products are mature, they're mature and market ready for today's expectations from healthcare systems. Those continue to grow and change, and frankly, day one deployments are very different than, say, day 365 or year two, year four, year five. Our government clients have very, very ambitious and complex expectations with respect to Digital Front Door, and the same applies to learning management. In fact, you wouldn't expect it to be a simple learning management system from Think Research. We do have continued and further investment in these core solutions, and that's expected, frankly, for the very long term. We will as time passes, you'll also see us starting to integrate these two systems much more completely into one another, so they'll become much closer to a single platform rather than two separate platforms over time. That is where our continued investment is at this time. Yeah, great. Don't have a problem with betting on the winner products. The second question would be on the clinics business. You know, you've given color on the improvement you've made in terms of the staffing. Looking at the result from last year in the second quarter, they were pretty strong. Please remind us if there was anything that was not recurring, maybe last year in Q2, just to help us in terms of modeling the next quarter in clinics? Yeah, for sure. Last year, and it seems like 1 million years ago, but last year, at the start of the year, there were still shutdowns from COVID. Right? The government had closed our elective surgery clinic in January, fully and completely, right? As a consequence, we had catch-up revenue in Q2 from surgeries that had been canceled in the early part of Q1 of last year, particularly in January. I think Q2 benefited from that last year. We don't expect to see that this year, of course. We do, however, expect some steady recovery with our staffing changes that we made in Q4, Q1 of the past couple of quarters. John, do you have anything to add there? No, I think you've captured it well. We've had some staffing changes, for the better, and we do expect it's gonna improve over time. May not happen all at once, but we're steadily building a better operation there. Okay, great. Last question for me. You know, you've discussed your very good visibility on the biopharma business. I'm just wondering if this visibility is based maybe more on a pipeline or conversations you're having, or if there's business or contracts that are actually signed. Just trying to assess the level of risk there is to the visibility you have on that business. John, you want to take that one? Yeah, sure. That's a great question, because it is complex. We consider a few different elements, when we look at our backlog, but our backlog does not include pipeline. What it does include is two different levels of contracts, one of which is what's called awarded. Awarded is when we enter into the commercial negotiations. The pharmaceutical partner says, "We pick you. We agree with your proposal. Now, let's just hammer it out and get the contract signed." That may take anywhere from, you know, two weeks to, you know, several months, depending on the timeline, the complexity of the study, and so on. We do count that in our backlog. The rest of the backlog is contracts that have been actually signed and also contracts that are underway, but the milestones, you know, certain milestones haven't been reached yet. If you add all that up, you know, that's what we consider to constitute our backlog. It is possible that a study. Once the study is underway, it's possible, but extremely rare that, you know, they might, the study sponsor might cancel it. Once the study is contracted, it's contracted, and, you know, it could get canceled, I suppose, but we don't really accord much risk to that. We consider the risk with contracted studies to be more around timing, rather than, rather than them going away. In this third category of awarded, obviously, that has more risk. We don't tend to put, while we count it in our backlog, we don't tend to necessarily put clear timing on that, and we sort of approximate the timing as best we can based on historical patterns. I hope that answers your question, Jerome. Yeah, very clear. Thanks, thanks for the call. Thank you. At this time, Mr. Aggarwal, we have no further questions, so please proceed with any closing remarks. All right. Thanks, everyone. We appreciate your time, as always. We appreciate your support as well, as we've spent the last 6 to 8 quarters really focusing on cost synergies and overall OpEx reduction, improvement in our gross profits. Frankly, the biggest thing is focusing on our pipeline and our products to achieve what we think are going to be very stable, strong, positive, adjusted EBITDA results for the foreseeable future. We hope that you're just as excited as we are about what we think is a very bright future for Think Research, and we look forward to speaking to you at the end of next quarter. Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending, and at this time, we do ask that you please disconnect your lines.