LifeSpeak Inc. (LSPK) Earnings Call Transcript & Summary

Good morning, and welcome to LifeSpeak Second Quarter 2021 Results Conference Call. [Operator Instructions] At this time, I would like to turn the call over to Michael McKenna, Chief Financial Officer of LifeSpeak. Michael, please go ahead.

Okay. Thank you, Charlie. Good morning, everyone. And welcome to the LifeSpeak's second quarter results conference call. Before we start, we'd like to remind you that all amounts discussed in this call are denominated in Canadian dollars, unless otherwise indicated. In addition, I am required to provide the following statement with respect to forward-looking information, which is made on behalf of LifeSpeak, and all of its representatives on this call. You are cautioned that the oral statements made during this call may contain forward-looking information that involve risks and uncertainties, including statements with respect to our objectives and the strategies to achieve these objectives. As well as information with respect to our beliefs, plans, expectations, anticipations, estimates and intentions, including information with respect to our pipelines. The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information. Additional information about the material factors that could cause these actual results to differ materially from our conclusions, forecasts or projections in the forward-looking information. And the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, is contained in LifeSpeak's filings with the Canadian provincial securities regulators. Such statements are made as of this date hereof, and LifeSpeak assumes no obligation to update or revise them 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. 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. With that, I'll now turn the call over to Nolan Bederman, LifeSpeak's Executive Chairman, for some opening remarks.

Thanks, Mike. Good morning, everyone. First, I'd really like to thank all of you for joining us today on LifeSpeak's first earnings call as a public company. It's a big milestone for us. While it hasn't even been a month since we've completed our IPO. We're very excited to let you know that we've already made significant progress. At our core, LifeSpeak is a SaaS-based, mental health and total well-being, education and engagement platform. And as we've told many of you, we spent years positioning ourselves for global expansion and scale. Our significant growth trajectory is underpinned by numerous durable long-term trends, such as increase in corporate spending on mental health, digitization of health solutions, growth in micro learning and increasing corporate spend on remote access tools. As our CEO, Michael Held; and our CFO, Mike McKenna will explain, these tailwinds and the significant value that our platform provides to our clients and their employees are generating exciting profitable growth. We believe we have an incredible team in place and remain extremely optimistic about our future. We're increasing investment in our technology platform and in our content. And we're growing the LifeSpeak team around the world to capture global growth opportunities that we're seeing. Additionally, our pipeline of M&A opportunities, which, as many of you know, was a key part of the IPO discussion, is developing significant depth. As we've mentioned before, we're seeking to extend our front door status with our clients and continue to add SaaS-based tools to our offering that we can cross sell. With that all said, I'd like to turn the call over to our Founder and CEO, Michael Held. Who will share more information with you about LifeSpeak's exciting performance during the second quarter. Mike?

Thanks so much, Nolan, and good morning, everyone. I know Nolan already said thank you. I'm just going to say it again, thank you to everyone for making the time to be with us this morning. We really, really appreciate it. As a refresher, LifeSpeak has a 17-year history in the B2B employee mental health and total well-being industry. We serve as a diverse global client base across many industries and sectors, including Fortune 500 companies, government agencies, insurance providers and health technology companies. As Nolan mentioned, the macro tailwinds are increasingly in our favor. We are seeing more and more interest in our offering, increasingly, around the world and our numbers reflect that. Several financial highlights from the second quarter of 2021 include: our revenue increased by 132% to $5.6 million compared to the same period in 2020; our adjusted EBITDA increased by $1.5 million to $2.2 million compared to the same period in 2020. Our client base increased to 253 clients as of -- as at June 30, 2021, a 45% increase compared to our client count of 175 as at June 30, 2020. Examples of client wins in the second quarter of 2021 include, within our enterprise customer segment, Magna International and FedEx Canada. And with our embedded customer segment, Lime Global in the U.K. and 1to1help.net in India. The geographic component of these deals was disclosed in our IPO perspectives. And we have continue to add great new clients around the world. Following the end of the quarter, we have since added phenomenal plans such as the Lego Group out of the U.S., Celestica International, a North America ally and Majorel Group in the Europe. As well as additional names in our embedded segment, including T-Cup Studios in the Europe, and Wellteq in the Asia Pacific. All of which delivered geographic expansion and distribution of the LifeSpeak platform. Agreements like these show our ability to execute on our client acquisition strategy within Canada, the United States and again, increasingly globally. And looking forward, we believe there are many more opportunities to come. We're very excited. I will now pass the call back to Mike McKenna, who will walk us through our detailed financial results, following which I will provide some closing remarks before we turn it over to questions. Mike McKenna?

Okay. Thank you, Michael. We believe our second quarter results demonstrate the strength of our business, and we are very excited to share these results with everyone today. In addition to revenue, adjusted EBITDA, net income, and our client count. We closely track other key performance indicators, to help us evaluate the health of our business. Track our corporate development and progress. We'd like to share some of these with you today, including, first off, gross margin. Gross margin for the second quarter of 2021 was 93%, compared to 90% in the second quarter of 2020. The increase in gross profit was primarily due to the increase in revenue of $3.2 million compared to the same period last year. I was stressed during the IPO road show, our gross margin is increasing due -- not due to a lack of investment, but rather due to the unique nature of the operating leverage, captured through our SaaS platform and rapidly growing revenue. We remain on track to significantly increase our technology and content investments in 2021 and 2022 as planned. Next up, adjusted EBITDA margin. The adjusted EBITDA margin for the second quarter of 2021 was 40%. This compares to 28% in the second quarter of 2020. The increase in adjusted EBITDA margin was primarily due to continued strong growth in recurring revenue, and the addition of new customers. Our 40% adjusted EBITDA margin in Q2 represents a 200 basis points increase over our adjusted EBITDA margin in Q1 of 2021. Annual recurring revenue or ARR was at $22.9 million as at June 30, 2021. This is an increase of $13 million or 132% when compared to June 30, 2020. The increase has been driven by a continuing increase in better our number of enterprise clients and the rapid development of our embedded solutions platform. Net dollar retention rate, or NDR, this provides a consolidated measure by which we can monitor the percentage of recurring ARR, retained from our existing clients. This does not include revenue from new clients gained during the LTM period. But our NDR for the 12-month period ending June 30, 2021, was 104%, this is up from 101% at the end of Q1 2021. The increase in net dollar retention rate is primarily driven by our client services team, ability to continue to weave LifeSpeak into the fabric of our clients' well-being programs; and LifeSpeak's developing focus on value-added services. As we continue to drive industry-leading usage of our platform. Logo retention rate. Logo retention rate provides a consolidated measure by which we can monitor the percentage of enterprise clients retained during each period. The logo retention rate for the last 12 months ended June 30, 2021, was above 95%. This is up from 94% in Q1 2021. Again, this shows the importance of our platform to our customers and their employees. Moving on to the pipeline. In our IPO prospectus, we have provided details on both our enterprise and embedded solutions pipeline, and we will continue to do so on our quarterly investor calls. I will start with an update on the embedded solutions pipeline, where we had identified 40 potential client opportunities, representing an aggregate opportunity of up to $260 million in ARR. During the second quarter and subsequent to quarter end, as Michael mentioned, we are pleased with our success in gaining new embedded clients and with our outlook for both 2021 and 2022. Since our IPO roadshow, 5 new partnerships have launched, all of which began contributing ARR in Q3. In addition, you should expect at least 3 global partnership launches through the balance of Q3 and a similar number through Q4. We continue to execute around this core pipeline of 40 opportunities and we are on track to surpass our target of 10 new embedded partnerships in 2021. While we have also identified opportunities to increase our pipeline. Our core focus remains on conversion of the 40 primary opportunities. I should note that we are likely to launch opportunities through the balance of 2021, that come in from outside the initial list of 40. This just further highlights the merits of the embedded partnership opportunities. However, I will stress again, our focus is on the conversion of the pipeline, provided during our IPO marketing. We will entertain conversations to enhance the pipeline where we see real opportunities to grow the business. Moving on to enterprise. On the enterprise side, the pipeline identified, consisted of more than 250 potential client opportunities, representing an aggregate opportunity of up to $20 million in ARR. The benefit of this pipeline is that due to our global reach and TAM, the size of the pipeline will largely be consistent through 2021. And will increase in 2022, as we continue to build the global sales footprint. The key development for us in this area since the IPO has been our traction in markets outside of Canada. We continue to see a robust pipeline and strong conversion as evidenced by the customer wins, Michael highlighted earlier. With that, I'll turn the call back over to Michael Held to provide some closing remarks.

Thanks so much, Michael. Thanks so much, Mike. We are very excited about our progress and equally and more so about our future. We are really focused on activities that we believe will build value for our shareholders, including the following: driving growth in our embedded solutions segment, acquiring new enterprise clients, expanding geographically as well as continuing our proven ability to grow in our native Canadian market, adding adjacent services and potentially expanding our offering through M&A. We are well capitalized to support these initiatives, and we believe, we have the right team in place to carry out our strategy moving forward. We are looking forward to updating you on our progress in the coming weeks and months. And we will now open the call to questions. Operator?

[Operator Instructions] Our first question comes from Doug Taylor of Canaccord Genuity.

Thank you. Congratulations on getting your first quarter out as a public company. I'd like to start by talking about the embedded customer wins in the pipeline. You alluded to several of the wins that you've already made in the quarter and then post quarter. Obviously, the contribution of these to your ARR figure is complicated a bit by the pace that the rollout happens. But perhaps you can speak to how those deployments are going against your expectations after the initial launch? And whether those contributions from those should now ramp in Q3 and Q4 relative to the pace of ARR add in Q2?

Good question. And Doug, thanks for asking. Mike McKenna, do you want to talk to both of those things? Because really, the 2 key questions are, how are we growing the pipeline? And then back to the conversion of the things we're converting, what are we seeing on deployment speed?

Yes. So I think very happy with the conversion and the opportunities across the board. And as I mentioned in my remarks, we're going to surpass that, that target of a number of launches. There will be different pace. I think there's going to be 1 or 2, that will be sort of larger contributors and a number of them that will be, let's call it, sort of, again, with that Land and Expand type mentality through the balance of the year. I don't think, Doug, there's going to be anything other than we're on pace, to sort of do, what we said we'd do, for the rest of 2021. And I think we're -- some of these things are going to come really into play is more in 2022. And I think some of the things that we've got in our sights for Q4. It would be great to sort of, we'll be able to talk names, but we're just unable to do so. But I think we're very happy with what Q4 looks like, and what the potential partnerships for launch in Q4 and 2022 look like. So I think we're going to do -- we're trying to move towards what we suggested we could do for the balance of the year. And I think the key thing is that we're seeing very good conversion. And the key thing about the conversion for us is that these are global in nature. And that's what we said we'd set out to do. And I think that's really important from an execution perspective. So this is not -- there's not going to be any, at this point, sort of material changes to the outlook. But I think the key thing is that we're converting at a rate that supports what we suggested we could do.

And I think I'll add one qualitative piece, Doug, because your question also was, in essence, what level of activity we are seeing in terms of adding. We -- that is remaining as robust as it was before, if not more so.

Okay. So a lot of KPIs you've provided for us, which I appreciate all the retention rates moving in the right direction from an already high level. And so I just thought I'd ask, can you confirm that higher net dollar retention rate, that's a function of the higher mix of embedded versus enterprise, where there's some in contract growth tied to the deployment within the population -- Is that the key contributor to that? Or are there some other factors that are at play here supporting the expansion of those numbers?

Yes, a good question. And I realized as I was speaking through the net dollar retention rate in my remarks, Doug, that I -- I needed to suggest -- make sure that I pointed out that, that was only for enterprise. And I think that's really important, right. So what that means...

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Some price escalators are there within, okay? Some, again, focus from our side on value-added services and doing more for our clients within the period of them being subscribers to our product. And so that's a true enterprise number, which I think is really important. And I think 1 of the things, Doug, what's really important for us is that it shows that there is opportunity to stick to price escalators, and contracts, and provide value-added services. And the latter part of that is a bit of, a sort of developing focus for us. And we specified during the IPO road show, like 1 of the differentiators of our model, which is great from the perspective of gross margin calculation, but a little different from a net dollar retention rate. We don't sell seats, right? So our net dollar retention rate is not naturally going to increase every quarter, unless we're doing things to do so. And value-added services is 1 of them, and we're going to continue to develop that area. And so you can see that with the focus that we've started, some of that's already coming to bear for us.

Okay. That's a good clarification. I'll ask 1 question about the cost base and margin profile, already very high. You spoke to some increased investment in your content? And is that tied to the international success you're having with some of these new embedded customers, where you're going to invest and some more local content in those markets, or some other factors? I think second question, I mean, perhaps I'll let you answer that 1 first, then I'll ask 1 more.

Yes, sure. So I'll just answer that 1 quick. I mean, yes, in part. So part of the roadmap has been continue to emphasis on internationalizing the platform. So the spend is bigger than that, but that is a piece of it. There's other features and functions that are just constantly being built into the platform, that we're stepping up. But definitely a piece of it is that, for sure.

And then the other cost question, I mean, obviously, now as a public company. Are there any other kind of one-time or one-time step function higher in costs in Q3? And beyond that we should factor into our expectations related to that kind of pubco cost.

2 buckets, and I'll let Mike address them. But obviously, things relating to the transaction itself, obviously, there will be a bunch of those that's nonrepeatable and that obviously a chunk of public company costs. But Mike, why don't you bucket those? And obviously, when we give the Q3 numbers, we'll have details, of course.

Yes, there will be a bit of a push and pull in the numbers. I mean, you'll see less financing costs, for example, because we repaid some debt. So that may balance off some of the increased costs. But for example, obviously have increased costs with things like D&O insurance and just generally speaking, some more public company costs. So I think, Doug, to suggest that we can guarantee with certainty the next quarter, the adjusted EBITDA margin is going to be 40% again. There's going to be a little bit of fits and starts here as we get through the transaction in Q3 and Q4. But the reality is, I think what you're seeing is the real true operating leverage in the business, right. In this quarter, that with the increase in revenue. So as revenue increases, the margins are going to be able to hold in pretty well and continue to increase as well. So yes, there'll be maybe some choppiness on the margin profile for the next quarter or 2 as things evolve a little bit. We absorbed some of what is our new reality. But this -- we're talking about 100 basis points, 150 basis points. This is not like the margin is going to go be cut in half, right?

Okay. Well, that certainly helps and goalpost around it for us.

And Doug, not to go -- this is Michael. Not to go back to a question, but just on your -- around content and costs, and there are also some areas where we see some significant opportunities, to get new embedded and enterprise. So 1 big example is around diversity and inclusion, which we already had that is becoming a very, very hot topic locally and globally. So there are certain just key areas in content that if we can build out a very robust content and libraries at a rapid pace. I think we can take like a real lead in other kind of not necessarily mental health and well-being but adjacent markets.

That's a great color. I will pass the line.

Our next question comes from Paul Treiber of RBC.

The KPIs were very, very helpful. Just wanted to hone in on ARR. When you look at growth of the ARR this quarter on a year-over-year basis. It's just in line with revenue, where last year was much faster than revenue. Was there anything about ARR this quarter or last quarter or Q4 that we should be mindful of? And how do we think about the growth of ARR going forward relative to revenue growth?

Sure. So a couple of good questions. And we have some very specific answers to that. So Mike, why don't you tackle those in order, if you don't mind.

Yes, I think first and foremost, like it's going to take a few quarters for this to really become a normalized number from a growth perspective. But we can sort of suggest, okay, this is the expectation. We certainly did have 1 large contribution for a big upfront contract in the sort of latter part of 2020 and Q4, right? That's 1 of the embedded deals and just the way that deal was structured, right? So that certainly sort of put that from a quarter-to-quarter perspective. A little bit sort of a differentiated sort of means for that quarter. I mean I think what you have to do really, Paul, is sort of go back to some of the other information we've provided as it relates to logo growth, right, and then opportunities within that embedded platform. So on the enterprise side, local growth obviously very, very strong, and we're continuing to add at sort of record pace every quarter. And then with some of these embedded deals, there's just a timing thing, right? So if all of a sudden, just to give an example, right. 3 embedded deals launched on July 1. They're not going to be in the June 30 as ARR calculation, right? So there is some push/pull with some of these things just even as it relates to launch timing. The reality is a year from now, right, when we have continue to grow as we expect. This isn't going to -- there's not going to be that lumpiness that we had, 1 large contract, there's not going to be the sort of lumpiness from a timing perspective. But probably for 3 or 4 quarters, we're going to have a little bit of sort of back and forth with this number. But I think that as you dig further into it, you're looking at the local growth. Looking at this update we gave on the embedded side, right? Pretty clear the growth is still there and the opportunities -- the opportunity set is still the same. But take your point, right? It's just -- it's for anything not to suggest it's just timing. There's -- there are some factors that go into that. But I think when you think about all those 3 or 4 factors together, right, you sort of understand why that shakes out the way it does.

Yes. Paul, I'll just add 1 piece to that. I think we talked about this a couple of times in the roadshow is because of those things, what we try to view this whole segment as is really a portfolio. And so the most important thing we can do is add high-quality, very scalable opportunities to the pipeline and then convert them. And those are the 2 things that are most in our control, and those are both going incredibly well. And so those are the things we're focused on. But to Mike's point, when something starts on July 1 versus June 15 or something that. That's harder for us to control. Of course, we're doing everything we can toward that time. As the portfolio flushes out, those things will matter significantly less.

That's very helpful. Just look at a high level, you gave some logo commentary on the sales pipeline and the growth there. Could you speak about like the cadence in the pipeline, like the conversions, like the speed of conversions relative to maybe where it was like 6 months ago. Also the new opportunities that are emerging in the pipeline, relative to maybe just 6 months ago? And then have you seen any deals fall out of the pipeline, and if there's any sort of reasons for that.

So let me give a high level. And again, we have to be careful what we say here, and what we don't say. I would answer these in this way. And then I think maybe Held, you should give some color; and then McKenna, maybe you need to talk in more specific to conversion. But the high level is we -- the trend of all of those things continue to increase. And what I mean is we're seeing better conversion. We're seeing a lot more adding to the funnel in particular. We want to make sure we're very clear. We're focused on converting, but we're also focused on growing the funnel. And what we're seeing is continued explosive growth on adding things to the funnel. We're not really talking about that a lot on this call because it's future looking. But that activity level is increasing quite steadily. The size of the deals also is sort of hanging in to exactly what we had thought it would be. We're just seeing more of them in different places. So Mike, Held, maybe you want to talk a little bit, let's just start to sort of in the environment answer, so to further speak, so we can get. Paul, some color and then McKenna, maybe talk a little bit about conversion as much as we can say.

Yes, it's a great question, Paul, and I'm almost nervous to share my experiences these days for fear of expectations. But the word we used around the shop these days is a fire hose. It's unbelievable. And again, to Nolan's point, we set out a pipeline in the roadshow, and we're focusing heavily on converting those and feel great about achieving what we set out to achieve. In terms of new, I mean it's just completely unprecedented and especially I find it unbelievable over the course of the summer, where normally it's crickets. And it's just the exact opposite. I think the -- the thing to know is just -- it's not that, it's just more, the meetings we're getting are starting off as the CEO -- literally the CEO level, Head of Strategy, Chief Commercial Officer, Chief Product Officer. So the ones that are coming in, we're actually now getting the attention of people in that matter and can make decisions and point out us in the right direction. So I feel like we're -- some of these large embedded deals like that, for example, might normally take 6 months or a year. I think we're skipping like the first 3 or 4 months just by getting the endorsement and mandate of selling new senior. The other thing that, just personally, I'm tremendously excited about it, is the global growth. I mean we spoke so much about our global TAM. And we're really realizing this. We're seeing a ton of these embedded and enterprise as well, but very much in the embedded side in Europe. In the Middle East, which is a fascinating space that I think we can have a great opportunity there. And increase in the U.S. where we see the most noise from competition, but we're starting to fare very well. And without stepping on anything. I think I shouldn't say, I think we'll have -- be able to share some very good news in the coming months. Mike, before I say something, I shouldn't. I'll turn it over to you.

No. I think that's probably good. I think, for Paul, on that question.

That was really helpful. And a little more companies keep announcing back to work or sort of hybrid plans. To what degree or not is that factored into discussions? Does that influence things one way or another?

We're not really seeing that. And again, I really let Mike to add comment a little more color. It's not -- we just never really been a major part of that COVID discussion. And we talked about this a little bit during our road show. Well, we always view COVID as a good general awareness component of this industry and something that really added value in terms of the trends. But we really didn't have that many conversations, or very few where we were a COVID solution. So -- but if anything, that trend will help because I mean we are a product that works, equally well inside the office and out. But it doesn't tend to be part of a lot of the discussions. I mean, Held, do you want to -- anything you think, I'm missing on that? I don't think it's something we see a lot.

Nolan, I agree. And we're signing a multiyear contracts. So hopefully, one day, we'll get through this pandemic. And some people are definitely looking past it. I think 1 thing that has happened, I'm sure a number of people on this call have heard the term the great resignation. And that's the fact that I've heard, you heard different numbers, but 40% of employees that a given organization are looking to make switches, just due to the reflection on life and what's gone on. And so I do think -- so it's not necessarily COVID-related, but in the sense of seeing the possible flex of talent, more and more things -- there's more and more impetus for companies to show that they're caring and supporting people, and creating an environment that's attractive for people to stay engaged and be there. And because we're such a -- we have such high utilization, we cover thousands of things covering so many aspects of people's lives. We're such an easy way to implement something on a large scale, showing that you care and trying to get people to stay. So I think that is more on that side of things. I think we're seeing it. And I think this great resignation is fascinating, and it's kind of it's different to our revenue and business. But -- we're also seeing the opportunity of hiring just phenomenal people who have traditionally come from very large players in our industry. We are looking to reflected and are looking to make a change and make a difference. And we're seeing a real influx of applications from really phenomenal people that hopefully, we will be adding to our team over the coming months. So I think...

Yes. I think that's a really great point -- a great secure point.

Not necessarily. Like I haven't -- not like we're going back to work, we're trying to struggle with that, back to work at the office or not the office that's not as big as a component.

Our next question comes from Jordan Hymowitz of Philadelphia Financial.

Most of my questions have been answered. Just a few more. You said the margin could go down by a 100 to 200 basis points from some public company costs. But is it the marginal margin note of 50%. So as you get bigger, a 40% margin is not a crazy number?

Yes. I'll let the candidates speak for that ultimately, but your trend is correct.

Okay. Second question.

Mike, you want to comment on that before I...

Yes, it's good enough. I mean on the...

Yes...

Okay. Second question is, you guys are pretty good holders already, but the stock was weak, post IPO. Once you get past the blackout period, do you think there might be an interest in management or Board level purchasing at this level?

So let's just put it that way. We were again in a blackout period. Our first reaction was, we did not know that actually with the call up Counsel and see how much management can buy and what I'll say is those inquiries were significantly broader than the people on this line, so yes.

[Operator Instructions] Our next question comes from Mitali Kakran of Scotiabank.

So just a quick question on the embedded side. So could you talk a little bit about what kind of organic growth have you seen in the current embedded clients? And how do you look at that? And is there any seasonality, if at all, if you can comment on that?

And just a quick clarification. When you say seasonality, do you mean on growth within the embedded that we have? Or do you mean just in terms of what we're seeing in the pipeline?

Both in terms of what you have and also in the pipeline, if you can comment on that.

Sure. I mean, Mike, do you want to talk a little bit about both of those things? McKenna, sorry.

Yes. No. I mean, from the financial performance perspective. Well, there's no real seasonality in that. We're continuing to see good, solid, strong month-over-month growth, so no seasonality really there. And I think, and Michael Held, can add maybe a comment here, a quick comment here just as it relates to the pipeline. Perhaps this would be probably the time of the year traditionally for our business that there wouldn't be significant opportunities to add to the pipeline. I noted during the commentary to start the call. Our core focus remains real sort of conversion of that pipeline that we had identified during the IPO marketing. But I think the key message being since we've gone public, there's no shortage of opportunities. I think people sort of see now and understand the size of the business and who we are. And there's a certain very significant credibility factor there, especially for the global companies that we're speaking to. And I think that's just enhancing the opportunity. So we don't want to let it sort of just be a pipeline that we continue to add names to, because we obviously understand we need -- the need for conversion there. But at the same time, I think that if anything we see it's almost reversed in the sense that where there might have been seasonality at 1 point in terms of adding, and I think Michael mentioned this earlier. This would be the time of the year where there wouldn't be much opportunity to add. We're sort of seeing that a little bit differently. And part of that is, frankly, just now we're a public company, and there's a little bit more understanding of who we are.

[Operator Instructions] Our next question comes from Adam Buckham of Scotiabank.

So I guess like the callers before, the majority of my questions have been asked. So I'll ask 1 more sort of high-level question. And just thinking about from a global context, the discussions that you're having with sort of executives and, let's say, Asia Pacific or Europe, can you maybe talk to how those are different from you say, Canada to the U.S.? And how they view mental health and all these other aspects that the platform sort of hits?

Sure. I mean, Mike Held, do you want to give that color? And Adam frankly, maybe it's a good time to expand a little on the -- on your diversity inclusion comment because it is -- we're seeing that a little bit too. So whatever ever were you think?

This would be my fast way of describing it because it's almost packing. We're first engineering it. About a year or 2 ago, Canada would have been a way ahead, in terms of mental health and anything around diversity. But what we're seeing now is everyone play catch up. So when we have these conversations now, particularly in the Europe and in the Middle East, the best way to describe it is, they feel exactly the same as here. But it wasn't that way about a long ago. So -- What I like about it is there's a feeling of we're behind, and we want to move quickly. I think leaders of these organizations know they're behind. So you're getting great mandates from people in position to make decisions and make things move. And they're all looking for the same thing. 1 of the stories, as I mentioned in the road show, is 1 of the largest health insurer in the U.K. that I feel we're going to be making some great progress with. The Head of Strategy said, I like, we send a bill to our clients. And then 365 days later, we send another bill and we have no relationship. We tried telemedicine, but it's not as used as much and kind of table safe these days. We want to have something that's really a value-add differentiator that shows people that we care and surround their lives and shows them they're more than just a fee. But that's the same conversations we have here in North America. So that's the best way to say it is, I feel like we -- it's all -- it's the same conversations there, the same business purposes, the same social purposes. And it will be interesting to see if due to the emphasis they're putting right now. They might even, at some point, exceed the pace that we have -- we're at in North America. Nolan or, Mike, I don't know if there's anything you'd add to that.

No, I think that's right. And I think what we're seeing the corollary that just back to, I think, a question maybe as Paul has mentioned around what are we seeing this great migration concept. What we're seeing is people, senior executives actually quite senior in all of these jurisdictions, having the same kinds of thoughts around, okay, maybe at a time to try something new and what's interesting for us. And this is actually happening in the Middle East and in a big way in the U.S. for us, is we're a very big net beneficiary of some incredibly senior relationships of people who have had a very long career at very large players in this space, and they were rethinking what they want to do. And the number of calls that have sort of come in to us in and around this embedded space. And almost sometimes through those discussions of folks who say, "Wow, what you guys do is so interesting. We might want to join you or help you grow, separate and apart from the actual deal, that's really new. Like that's never happened to us before. Again, I don't know if that's a COVID blip, but it's a pretty consistent message from senior executives. And we're hearing that message interestingly, in all of those jurisdictions. And I guess, just personally, I'd say that, that part is even surprising in a very good way. But I wouldn't have told you 6 months ago. We'd expect to have senior executives and very large companies throughout the world, basically saying, "Wow, what you do is more exciting than what I do? How do I help?" That's, again, I'm not going to -- it's not going to be in our forecast nor are we counting on that, but that's actually what we're seeing.

That's actually very helpful. Congrats on your first quarter as a public company.

Thank you so much Adam.

At this time, we currently have no further questions. I'll hand back over to Mike McKenna for closing.

Okay. Thank you, and thanks for the questions and all the dialogue today. We certainly appreciate everyone taking the time to join us, and we look forward to many more quarterly calls. In the meantime, we're always available as well. And we look forward to speaking again and thanks for your time today. And with that, I think we're probably good to go.

Thank you so much, everyone.

Thank you all for joining today's call. You may now disconnect your lines, and have a lovely day.