74Software (74SW) Earnings Call Transcript

Hello, everybody. Welcome to Axway Capital Markets Meeting. My name is Arthur Carli, and I'm in charge of Investor Relation for the group. I'm very pleased to open Axway's first ever capital market meeting. As Axway begin a new chapter in 2021 after 3 years of major transformation, we wanted to take the time today to present our model, our vision, our ambition in a more detailed way than usual. To this end, we have brought together some of Axway Executive Committee who have prepared a tailor-maid program for you. The meeting will be divided into 2 parts: first, for about 40 minutes, we'll be talking about strategy and finance. And for this in a few moments, I will leave you with speakers who are familiar to you, since Patrick Donovan, CEO; and Roland Royer, Chief Customer Officer, will be presenting Axway's strategic plan for the 2021, 2023 period. They will be rapidly joined by Cecile Allmacher, CFO, who will explain the transformation of the group financial model. And after these 2 presentation, we will open the first Q&A session. Then we will have a short break before the beginning of the second part of the event. The second part will be dedicated to our technology vision and go-to-market. Patrick Donovan will be joined by 3 other members of Axway management team: Rahim Bhatia, EVP, Product Management; Vince Padua, CTIO; and Paul French, EVP, Go-to-Market, will be connected with us live from Canada and the U.S. to talk about our markets, our products and how we are bringing them to the forefront. After that presentation, we will conclude with the second Q&A session, which should bring us to around 6:00 p.m. CET. Concerning the Q&A session, you will be able to ask questions by chat or by phone, and we will answer as many questions as possible during the dedicated time slot. Before I leave you in good company, I have 2 reminders to make. First, I must alert on the fact that this event is live and is being recorded. A replay will be available as soon as possible on the company investor website. I would like also to remind you that today's presentation contains forward-looking estimates that are naturally subject to risks and uncertainties. Future activity and results may differ from those described today. Axway's risk factors are described in the company's 2020 Universal Registration Document. With that, I wish you a very good -- very good, sorry, Capital Markets Meeting, and I would like to hand over to Axway's CEO, Mr. Patrick Donovan.

Thank you, Arthur, and welcome, everyone, to our first ever Capital Markets Meeting. As Arthur had said, we, Roland and I, will be going through the vision and strategy that we've set forth for 2021 to 2023. So for today's presentation, I've set forth some simple objectives that I'd like everyone attending to understand. I thought it would be a good opportunity to go deeper than our financial communications and spending a little bit more time to help everybody understands the business of Axway and how that translates into our forecast in our financial discussions. So we're going to start, I'm going to start by helping you understand our overall vision and mission in helping our customers open everything. And then we're going to go into how that vision is translated to our strategy that we're taking forth for 2021 through 2023, and then we're going to go a little deeper in how we're executing on that strategy in 2021 and give some color commentary around that. I personally have some objectives from today as well. Besides sharing with you a bit about Axway, I've been spending 3 -- the last 3 years as CEO during our difficult transformation of our business, of the way we go-to-market, of our product offerings, et cetera. And so during this period, and we can't forget a year of it's been in a pandemic. During this period, I've kept it very tight that you've heard from Roland Royer and I, clearly, consistently and constantly. We had difficult messages to give. We took it through a period where we are doing heavy transformation and investment, which dropped our operating margin and put pressure on our top line growth. But now that we've done the investments that we will talk about in this meeting, and that we have set the table for the next 3 years and built a foundation for the next 20, we're going to go ahead and bring in other members of the executive team and introduce them to you. So besides Roland and I, you're going to hear from Cecile, our CFO, and she'll go through the details on the financial model and its transformation. And then we'll take some Q&A, and you'll have Rahim join us, who's our Head of Product Management, to go deeper in the offering that we're driving our strategy with and how we have a portfolio and what that means for our business. He'll hand it off to Vince, who will take that current strategy around our offering and share the broader vision we have in the market. And then Paul French will bring it home at the end with our go-to-market strategy and execution to deliver offerings to the market. So in 2018, I stood up in front of you in my first speech and shared with you our vision and mission. I made it simple, I said we help businesses move and integrate data securely. Then we shared our strategy, which was around a hybrid integration platform, encompassing our major products, MFT, B2B, API Management. We've taken that and executed on that strategy and vision over the last 3 years and worked really closely with our customers, with the market analysts and others, taking their feedback on what we were building and taking to market. And so with that feedback, we've integrated that into our vision and mission for the next 3 years, and it's only modified it slightly. The main intention is still there. So refreshed vision and mission is that Axway enables enterprises to securely open everything. So as data is becoming a currency for enterprises these days, they've got to use it in faster, more efficient ways to take their position in the [ marketplace ] and be competitive with this information contained in their data in their ecosystem. So we believe that in order to create the most value for your customers, partners and employees, you need to open everything by securely integrating and moving data across the complex world of old and new. This last part, a complex world of both old and new is really critical for our enterprise customers and what they're facing. It's a challenge they all have. They've invested for many years in the infrastructure that's become the core backbone of how they run their business, it's often their competitive differentiator and they can't replace it immediately. So they are looking for a provider like Axway to help our customers securely open everything, and that is simply what we must do to help them receive the value of their investment they've made over the many years. And Axway has been doing this for the last 20 years. We started in January of 2001 as a division of Sopra Steria and did our IPO in 2011, but we've been helping our customers in achieving their goals and basically moving and integrating data and opening everything for the last 20 years, and we will help them clearly for the next 20 years. So as you could clearly see, over this period, we have grown both organically and inorganically through acquisitions. As well, through our acquisition strategy and our investments, we have rounded out an international company to be where our customers need us to be to help them serve their needs. In the highlighted box on the far right of the screen, you could look that over the last 3 years, we've invested a lot within Axway around our technology, our people and our go-to-market so we could be with our customers for the next 20 years. And we've learned a lot through this transformation period that we'll be sharing with you here today. So if you look at our business, we're an enterprise software company. And as an enterprise software company, our technology is built to meet specific use cases and needs of our large enterprise customers. We will build this and do a lot of investment upfront in a growing market where customers are rapidly trying to adopt this technology. You have this type of market with our Amplify portfolio. But as the market search maturing and all the large enterprises have this use case solved, the market penetration is such that the business evolves into a very successful business, but the growth limits, and you're running a very profitable, stable business for the long term. And your priorities shift to building your products and your portfolio with your customers in that case. So we have, within our portfolio, to invest both in fast-growing products, and we also have mature products that our customers want to remain rock solid, stable, and our road map is really the road map with these customers, and it is our job to deliver both. And we have invested significantly to upgrade our product portfolio over the last years to do so. But to achieve our goals, we have to have the right team to do it. So we have invested and changed up a bit the leadership team to have the profile necessary to drive our strategy into the market for the next 3 years. You will see a lot of new faces with me here today on the executive team, and we've also invested in the layer below to help drive the strategy into the market where we need to go for our future. We have also brought forward a lot of investment in our employee base to help everyone at Axway understand our strategy, its value to the market, how we serve our customers and their importance and their role in that. So everyone is aligned in helping us build Axway as a place we want to be. And from a customer's perspective, we needed to be getting closer to them through this transformation. We've talked about many things over the years and Roland sat on stage and gone in great detail of how he's transformed the customer organization to be closer with the customers and really listen and hear work with them to deliver the value we could bring. We've tracked it by things like Net Promoter Score, which we were very pleased to see grow 38 points over these 3 years, putting us in the upper quartile of software customers. And finally, we had to also increase our awareness in the market. And let's be clear, it's not Axway's job to be everywhere. I want our customers and potential customers, those we could help, to hear from us specifically of our vision and how we could help them and how we could get them to where they need to be with their projects and their strategy. All of this was to help us deliver value to our 3 stakeholders: our employees, our customers and you, our shareholders. So over this period, from in 2018 to 2020, we've talked about things such as the portfolio delivering a hybrid platform experience, we've used some branding around IMAGINE take shape and we've worked to meet our customer commitments. This was our strategy to deliver the vision from 2018. Now that we've learned and listened to our customers and got their feedback, this hybrid integration platform is really turning into a hybrid integration platform with, at its heart, the API integration layer. So as we've moved our strategy towards our vision of the hybrid integration platform, you're going to hear from us today us talking about the Amplify API management platform. API management product is at the heart and its core, and we've surrounded it with assets in the management and control plane to deliver the value from this platform that the customers expect. And then we will -- have also changed our messaging. You're going to hear us talk a lot more about Axway opening everything, quite in line with our vision. And then finally, we are moving from just delivering on our customer commitments. That was far too limiting. Our goal really is now moving towards delivering brilliant customer experiences in all we do and the offerings we take to the market and the interactions with our people. So going a little deeper, taking that into our strategy for 2021 to 2023, we have looked and built the company's view into the market to serve our customers' needs. And we're doing so by looking at it in 2 ways. We have the Axway core portfolio. This portfolio has been serving our customers for over 20 years securely with rock-solid technology that's highly performant, and we're building this technology to serve their needs today and help them run their business tomorrow. We have successful businesses and our offerings around managed file transfer, B2Bi, Accounting Integration Suite, Validation Authority and other products in this portfolio. And this, we are fortunate to have the position of being key inside the customer's ecosystem and their infrastructure. So they count on us to be that enterprise level partner to help them perform the hard work they have every day. On the other side, you have Axway Amplify. This, at its heart, as I said before, is our API management offering with the surrounding assets to be able to build a hybrid integration platform that is able to run both on-premise or in the cloud. This is a fast-growing market where we should expect to see the growth of Axway on the back of our Amplify offering, and we have to meet the needs of our customers and prospects in a very competitive marketplace. So we have the 2 plays of Axway to deliver value into the market, and it will return value to you, to our shareholders, by -- with the Axway core as these are successful businesses. We'll be driving the margin and the stability of Axway so we could be here for 20 years. And Axway Amplify will be driving our growth, and we will be pushing it for growth to obtain market share. So to go a bit further into that, I'd like to ask Roland to say a few more words.

Well, thank you, Patrick. Thank you, and thank you, everyone, to be with us today. And so I would like to take a few minutes to go a bit deeper in these 2 core -- in these 2 important parts of our business. To do that, I would like to actually illustrate that with taking examples from our customers. So first, I would like to take historical customers of ours that is using our MFT solution, State of California. They have been an Axway customer for over 15 years. And we built this long-term relationship with them on trust, reliability, scalability, excellence, essentially on security. The State of California manages thousands of applications or databases that are used by hundreds of departments, agencies or commissions across the states. And their initial needs was to have a very highly secure managed file transfer solution with strong governance capabilities. And more recently, with the rapid growth in digital government initiatives, they have accelerated their need to securely move and share even more data. So with these growing usage, they move from a self-managing of a solution on their premise to consuming our solution as a service in the cloud. So as an example, this -- with this continuous growth of data movement and ever-present security concern, these systems will continue to remain extremely business-critical for our customers and therefore, for us in Axway. And I took an MFT customer to illustrate our core solution and values, but it applies equality to other parts of our portfolio. MFT represents about a bit less than 40% of our revenue. B2B will add 20%. Altogether, the core part of our portfolio will represent 80% of our revenue. And all of these being mission-critical for the business of our customers, as I explained on the -- for the State of California. So our MFT customers, our MFT offerings, our B2B offerings, were launched 20 years ago, as Patrick said. They may not make a market news today or analyst report, but they are even more important than ever. And the need for such a solution is not going away, far from it. The security is a greater concern [ from afar ] than ever. And actually, the reduction of cost or the need for operational efficiency is on top of mind on any CIO around the globe. So these foundational systems that we have in our Axway, that we call them the Axway portfolio, core portfolio, must run like clockwork to enable our customers to turn their attention to innovation and digital initiatives. If I take another customer, another key customers on us, BNP Paribas, which is a customer of Axway forever. They've been -- actually, they've been an Axway customer before we even became Axway. And BNP Paribas is one of our largest MFT customers, but they're also using several other components of our portfolio, such as Accounting Integrator, also, more recently, our API management solution. They are using our API gateways along other vendors' API gateways in about the 30 countries that they are operating in. And since they -- since I'm raising their API-first digital strategy to transform their business, they have seen the number of APIs and the number of associated gateways growing, growing very fast and creating for them a new challenge in gaining insight into their overall API usage. And to address this challenge, BNP Paribas Personal Finance has deployed Amplify and its unique capabilities to collect actionable insight information about the API usage from all their API gateways around the globe from Axway-managed APIs or from non-Axway-managed APIs. And this consolidated view is a solid foundation for them in their API monetization initiatives, helping them to accelerate their new business revenue growth while reducing the global cost in their API initiatives. And API, which is at the core of our API transformation of Amplify platform, is really at the core of the digital transformation of customer experience or supply chain interactions. The use of APIs, and we've seen that worldwide, has really exploded in the last 18 months with all the businesses creating new digital presence of themselves. The API market is our largest addressable market and growing at the double digit. And this proliferation or sprawl of APIs and the associated gateways is creating new challenges for the companies, as I explained, and provide a strong, very strong opportunities for us within Axway. As with Amplify, we offer one of the most secure API gateway, but we are also the only one offering the capacity to manage all gateways from multiple environment from a single control plane. This unified management platform increases governance capabilities for the IT department as well as increasing the developers' productivity through API discovery and reusability. So these 2 parts of our portfolio, the Axway Core, what we call Axway Core and the Amplify, puts us very -- in a very, very strong position for the years to come. We've built with Axway and with our customers a long time trusted relationship with our customers. We will continue to stay close to them, building with them new capabilities on our core solution to address their growing needs in performance, in security, in operational efficiency. And with Amplify, we're offering our API gateway at its core with the highest security capabilities, sustainable performance system that will help them to grow as their digital presence will continue to grow, and we'll foster our customers' productivity and speed of innovation, thanks to the unique capacities that we will see later on, on managing multiple gateways from multiple vendors. Paul French, our EVP of Go-to-Market, will go back into more details on how we are executing with these 2 core parts of our portfolio segments. And with that, I would like to thank you for your attention and hand it over to Cecile Allmacher for her to provide more insight on our financial model. Cecile?

Thanks, Roland. Good day, everyone. So I will start with a bit of history. You can see here a chart with the 10-year history of Axway, starting the year we went public, and this confirms the strength of the company. By 2015, we start seeing a slowdown in the organic growth of our core products and, therefore, set the base of a new strategy. This new strategy really accelerated this past 3 years with the move to subscription. We invested heavily in the offerings for the future, explaining the low 2019. As you can see, 2020 started returning back margin to shareholders. So as we move out of the period of transition and into 2021, we continue to forecast growth between 2% and 4% organically and an increase in the profit on operating activities between 11% to 14% of our total revenues. When we look at our midterm ambitions, we are targeting moving to revenue of EUR 500 million, a profit on operating activities at or above 15% moving towards 20%, and deliver consistently EPS above EUR 1 per share, which is, as you all know, the guidance and midterm ambition we gave to the market back in February. I will go deeper into why we see this progression, given the strategy and vision Patrick has just shared. Diving more into revenue. Let's start with the year of our IPO, 2011. As you can see, the revenue structure was mainly made of license and maintenance, all from Axway core technologies, the recurrent part being the maintenance. Now compare that to 2020, the year just closed. The revenue has switched to maintenance and subscription, which are both recurrent revenue. And in 2020, this is with a mix, Core and Amplify. We clearly see there the impact of our strategy and the move to a more recurrent business model. We have 39% recurrent back in 2011, sorry, versus 79% in 2020. Graphically, our percentage recurrent and nonrecurrent transformed over the last 10 years with an inflection point in 2015 and an acceleration over the last 3 years of the transformation. We expect this recurrent base to stabilize in the 80% plus range in 2021 and beyond. Now having gone through several discussions over the year, we understand that revenue recognition of our contract isn't always clear. So let me share with you how it has moved. Starting in 2011, as shown in the last slide, we had 3 sources of revenue: perpetual licenses with the associated maintenance contracts and service project; license revenue, if all conditions were met, was recognized upfront; maintenance contracts are prorated over the contract period and normally renewed on an annual basis. Services are mostly recognized upon delivery. So now let's take a look at 2020. We have put a big focus on our subscription business model to create the strong recurrent base we've seen on the previous slide. Let me now walk you through the different revenue stream we have. So license, maintenance and services are remaining the same as 2011 in terms of revenue recognition pattern. So no change there. Subscription. This is where the change has really occurred. Here, we have 2 types of subscription, customer managed and Axway managed. This is where you need to apply the control concept. Who has the control of the software? Let me explain further the differences. So our customer managed offering first. It's a hybrid offering, which combines both on-premise subscription, controlled by the customer, with pictures connecting into our Axway platform in the cloud. The revenue recognition model there would be 50% upfront, 50% of the total contract versus the remaining 50%, which would be spread over the contract terms. So let's keep it simple and say it would be 3 years. This is in contrast to the Axway managed. Axway managed is more of a product delivered as a service, so a SaaS offering, where we run the offering for the customer and there, the revenue would be spread fully over the contract period. Let me now walk you through a concrete example and explain how 180 contract value would be recognized under the different revenue recognition patterns we just saw. So with perpetual, over the global amount of the contract value, 22% would be maintenance or recurring, the rest is licensed or nonrecurring and recognized upfront. For the Subscription customer managed, as we just said, 50% of the revenue would be recognized upfront. This means here that you have the 90, you are seeing in the year 1 column, and the remaining 50% would be spread over the contract term. So the 30, you are sealing -- see highlighted in red. For the Subscription Axway managed now, the 180 would be spread fully over the contract term, meaning that we will have 60 per year in terms of revenue over the 3 years. Now if we take a look at the renewal part, we see that for the perpetual, we will renew the maintenance each year on an annual basis, as I said before. For the Axway managed, we will renew the 3 years contract with 60 per year. And for the customer managed, renewing the contract means that we are renewing the upfront part as well, back to the 50% rule. I will present a forecast on the customer managed renewals later in the presentation. Now that we have seen the subscription model impact on the revenue recognition, let me explain the impact it has on invoicing and consequently on our cash flow. For perpetual and Axway-managed subscription, invoicing equals the revenue recognition. So no difference there, no impact on our cash flow, just regular business model. Now customer managed. As you can see on the middle, the middle chart, we have a discrepancy between revenue and invoicing, which is mainly due to that upfront revenue rule. This means that for the first year, we will be invoicing less than the revenue we will be recognizing. This trend starts reversing in year 2. And on a cumulative basis, as you can see, we returned to balance on year 3, which leads me to the next slide showing the impact this transformation has on our free cash flow. As shown on this chart, our free cash flow starts decreasing by 2015. There are several reasons to that. 2015 is the date we set our new strategy with heavy investment through to 2019. On top of that, you need to add the technical impact of the subscription revenue, especially the customer managed, which we start selling end of 2018. As you can see, this is mentioned on the chart with the dotted line, the dotted red line. This trend will start reversing in 2022. And from 2022 onward, we expect to see operating cash flow grow as our recurring revenue growth comes through, and our backlog customer managed deals begins to renew. To reassure you, this position remains supported by the strong cash generation profile of our core offering, so the B2B, MFT solutions. And we expect a back to normal cash flow in 2023. Of course, we will, meanwhile, always remain mindful of our covenant. Now let me spend some time on the revenue, and more specifically on what we forecast through to 2023. As of 2020, our mix revenue was around 20% Amplify, 80% Core, as Roland mentioned a bit earlier. Core is to remain relatively stable, plus/minus 1%, mainly focused on margin in contrast to the Amplify offering for which we count on a 15% to 20% organic growth per year. This brings us back to a range of 2% to 5% organic growth per year through to 2023, which means that we have a gap of EUR 100 million to EUR 150 million revenue to meet our EUR 500 million revenue midterm ambition, and this can only be achieved through M&A. Patrick, you might want to add a word?

Sure. So I set some midterm ambitions of EUR 500 million. I want to use this as a tool to drive internally our company and all of the employees to really push for us to grow in the market. We need to grow both organically and inorganically. And you could see with our strategy, breaking it up into our core offerings, which provide a lot of value to our current customers and are the backbone of their enterprise; and our Amplify strategy, which is around the API integration platform and a lot of surrounding services, both in the cloud and on-premise. We have really clarified and gained focus around our portfolio, which Rahim is going to go in more detail later on. And what mission and purpose it serves within Axway and also for our customer. And then how we could look at inorganically growing the business. So you see there in blue, our core business is a mature business, and it's been around for 20 years. So almost all customers have this problem solved. But as we're the backbone and we're sticky within the enterprise customers we have, our system should be secure as long as we perform and being a great partner for them. So if we look at M&A from the lens of the core, we have to look at what our customers will want from us or our target customers want from us. So I've said many times, Axway's target customers with the core is often to large enterprises with complex problems. So it makes no sense for me to go down market and try to completely change the use of my MFT or B2B offering to a very low use case, low average selling price-type deal. I will stay within the purpose I serve my customers in the enterprise level. So if I'm doing M&A around the Core, you could look at this as a consolidation of like-minded assets to serve the purpose to our customers. So it should be obvious what's in our market and our competitive suite and the targets we could look at there. But you could also look around the Core. Is there some type of pattern or need within my customers of the Core that I could solve for them through either a build scenario or a buy scenario? So you could think of something like the B2B/EDI invoicing is often one topic that we partner with successfully with some companies. But that could be somewhere, as an example, we could go where other surrounding technologies that help our core portfolio in delivering its value. But when you turn and look at Axway Amplify, there is a lot of surrounding technologies in delivering this platform to market. And we have a lot of technology partnerships around our API platform. And so there's a lot of acceleration that could be provided M&A in our portfolio road map to our customers, but we have to really listen carefully to what our customers are us to deliver and what they need from us to be very strategic about our M&A approach. So you could see how the 2-play strategy that we've developed to attack the market with has really brought us clarity now in M&A. And I couldn't have started any earlier than this year as it took us 3 years to get through the transformation and really clarify how we serve our customers well and what they expect from us and how we need to go-to-market with the combined offering that we'd bring from M&A. So now that we have our clarity, when we go back in the market looking at M&A, we will have a very specific reason and target for that in the company that we would be adding Axway to deliver the value to our customers. So I just wanted to cover a few of those points to give clarity right now of how we would look at M&A to serve the purpose. We're ambitious, and I get it, it's a midterm ambition for 2023. But we want to set that aggressive target for us. The market is really tight. There's a lot of money on the sidelines and a lot of competitive pressure, but we're entering the market during this period and we'll be aggressive to do so. So Cecile?

Thanks, Patrick. Let's now do a focus on the customer-managed subscription and renewal structure through 2025. I deliberately chose a vision until 2025 as it's more visual than just ending in 2023. So as a reminder, for customer managed, when we are renewing the contracts, we are both renewing the upfront part of it and the recurrent part of it, even if we are not renewing that at the same pace. On this chart, we assume for sake of simplicity that we would be renewing 100% of our existing contract base as of 2020. The first customer-managed deals signed back in 2018 when the offering was launched will start renewing end of Q3 this year. This explains the lower level of renewal we have in 2021 compared to the following years. In 2022 and 2023, we will be renewing 2019 and 2020, where, if you remember, the upfront part was respectively of EUR 13.7 million and EUR 44.4 million. Now you are going to ask me, why then don't we have a EUR 44.4 million upfront renewal in 2023? Well, this is due to the fact that not all our contracts are 3-year contracts, some are 5-year contracts. And as you understand, with the customer managed, this is somehow a quite complex model to rationalize. Nevertheless, the upfront port renewal, it's 3 to 5 years, reinforces the move to a more recurrent business model. I would like now to drive your attention on the cost side and share our plan through 2023 to achieve the 15% profit on operating activities I mentioned earlier in the presentation. In terms of gross margin expectation, we are -- we expect a slight increase of it, but we'll stay within market range. Just as a reminder, the primary cost, which are included in the gross margin are mainly hosting, delivery and services personnel like personnel for maintenance, training and implementation. Moving to the operating expenses part. Our sales and marketing should follow the revenue trend and increase a little slightly. On the R&D part, this is where we have our leverage. This should be decreasing in the coming year to focus on the Amplify offering as well as maintaining the Core, which is an important part for us. And G&A should decrease as compared to revenue and remain flat in terms of absolute value. For this last slide, I would like to leave you with a few key takeaways. As I hope you understood through the presentation, Axway has solid financial performance with a strong recurrent revenue base, which is a consequence of our strategy. So I would -- really would like to reiterate our confidence in 2021 and in the guidance we provided the market with back in February. As of 2022 and 2023, we would start -- we will start seeing the payback of our new strategy with higher profitability and a free cash flow back to normal. With this, thanks a lot for your attention, and please use the Q&A session in case you have questions.

[Operator Instructions] We will now start with the web questions.

Patrick, can you hear me?

We can hear you, Arthur.

Great. So we have no question at the moment on the chat. So operator, if we have someone on the phone, please take them. If not, we'll go to the break.

There are no questions coming via the phone line.

Okay. I would suggest that we take a 5-minute break now. And we will open the session up for questions at the end of Paul French's presentation. And so if you have questions, please submit them via chat, and we can pick them up at the end, and we'll allocate the time there. So we're going to take a 5-minute break, and we look forward to come back with you. Thank you. [Break]

Welcome back, everybody. And we have received some Q&A throughout the break, and so we'll go ahead and take those at the end of the call and just do a larger Q&A session at the end. So now that you've heard a bit about our vision and strategy and how that down into our financial model and especially through the transformation we've done in our financial model over the last 3 years, let's get into a little bit more on the product and the go-to-market strategy. So first, we're going to kick off with Rahim Bhatia, our Head of Product Management, and he'll cover our product portfolio approach. Rahim, take it away.

Great. Thank you, Patrick. Can you hear me okay?

Yes, we can.

Okay. Super. So as we delve deeper into our product strategy, I think it's important to start with the customer context and the challenges that they face. So as Patrick alluded to, we deal with some of the best brands, some of the best customers on the planet today, these are enterprise customers. And they serve our daily lives from financial services, to energy, to health care. And as they have charted their course around their digital transformation, there's a specific set of challenges that they have to contend with. First of all, they're managing a highly heterogeneous environment consisting of various different technologies that they have accumulated along the way. As they chart their journey forward, they also have to incorporate new technologies while still deliver deriving value from their prior investment. Simply ripping and replacing is not a viable strategy for all of their applications. As the digital transformation takes hold, they have to contend with new types of users, new endpoints, new devices and new protocols. And as their surface area expands, there is this unrelenting pressure to increase their security posture. And they have to contend with all of that while keeping a lid on cost, increasing ROI and decreasing time to value. In addition to these realities, our customers have to contend with some key mega trends. First of all -- the first of those megatrends is about hybrid cloud. The cloud has been a critical differentiator for our customers' digital transformation strategies, providing choice and flexibility around infrastructure choice based on their price and performance criteria. The second one is around no-code, which is about enabling nontechnical or nondevelopers to be able to use IT systems and have a self-service capability, all while increasing time to value. The third one is DevOps. This is all around productivity and innovation through quick iteration. The fourth one is edge, which is how do organizations deliver a great customer experience at the point where the customer is interacting. That used to be the PC, then it became the mobile phone, and now it could be the car or a voice-enabled device such as Alexa. And fifth, it's about ecosystems. Organizations are coming together in unique ways to be able to offer that seamless customer experience. Taking example of an airline partnering with a ridesharing service to provide that great customer experience, or a client manufacturer partnering with somebody who provided extended warranties to provide that seamless, frictionless customer experience at the point of sale. Now Vince will go into a lot more detail when we talk about the ecosystem in his presentation. Now we have developed our portfolio strategy based on where we are in the market and building for areas we can support our customers as they adapt their businesses to this reality. As we've talked throughout this presentation, we've segmented our portfolio across Axway Core and Amplify. Axway Core are our long-standing solutions. These are incredibly mission-critical to our customers. Customers, through their journey, have built their key business processes around these solutions. When it comes to Amplify, there is a whole breadth of use cases that are addressed by API management, whether they be enabling ecosystem, enabling developers, et cetera. Our job, as these growth -- as the number of APIs grow, is and they get ingrained into their business processes, is that these systems will become mission-critical for our customers. And if there's one thing that actually does well, it's really about addressing those mission-critical systems. And we've demonstrated that throughout our history across our solutions in our portfolio. Beyond a product strategy, this is also a business strategy with distinct go-to-market motion. When it comes to Axway Core, it's really about staying even closer to our historical customers with key account managers and customer success managers as these customers expand their use cases. When it comes to Amplify, we have a dedicated team of specialists to accelerate winning market share for our Amplify platform. Now Paul will cover more on this as he goes deeper into our go-to-market strategy. However, from a company perspective, we have incredibly strong alignment between our product and go-to-market strategy across our portfolio. So let's start with Amplify. Now Amplify is a tremendous opportunity for us here at Axway. If you just compare against MFT and B2B, today, our total addressable market for Amplify is about 54% of the total. With a double-digit growth by 2024, that's going to constitute over 60%. So Amplify is a great opportunity for us to be able to serve our customers today and build Axway for tomorrow. Now let's delve deeper onto our Amplify product strategy. Axway started its journey as a stand-alone -- sorry, it started as a mature gateway offering, complemented by a SaaS platform. We have hundreds of customers that rely on Axway and early adopters that are blazing trails with our platform. And we want to make sure that Amplify API -- our Amplify platform is a platform that grows with our customers' business. As you look -- as we look to how our customers' world has evolved, the complexity they have to deal with is daunting. Let's take a look at that. Roland talked -- walked through the multiple different API management solutions that our customers have. This slide illustrates how that problem became to be. Typically, a customer would start their API journey with a couple of dev teams, a handful of APIs and a handful of impacted applications. As those initiatives become successful, the number of dev teams grows. The hundred -- the APIs grows to hundreds of APIs, and a number of applications that are impacted continue to grow. And what you end up with is what you have today, which is tens of dev teams that are engaged in APIs. And each one of them have potentially chosen their own solution of choice. You have a geographically distributed development team, hundreds of APIs and hundreds of applications. Our answer to helping our customers navigate this complexity is Amplify. We have a solution that addresses the customer's needs, whether they're starting their API journey or they're far down it. To address this complexity, we have a single control plane to manage all environments in the customer's ecosystem, providing visibility and traceability of all these transaction flows. We provide a unified catalog with a consistent experience for finding and consuming APIs across all vendor gateways, Axway and non-Axway. Now customers have tried to build their own unified catalog. They know that there's only one thing harder than building your own, and that's maintaining it. For this reason, we've built in automation that manages and maintains integrity of the catalog, removing some of the time-consuming manual intervention. We also have a secure, open, event-based platform, enabling customers to be able to automate processes and integrate with their existing processes. We understand that we're middleware, and therefore, we have to work with other parts of our customers' architecture. And of course, the foundation for us continues to be a mature, flexible enterprise gateway, with high levels of security as proven by achieving the highest level of common criteria certification. Our road map is targeted at continuing to elevate these key capabilities for our customers. When it comes to the management plane, we're focused on providing a comprehensive provider user experience. APIs have moved from being sort of technical constructs to actually being products into themselves. So API providers need to be able to have the ability to manage the life cycle of those APIs, versioning and making sure that they understand what the value of those APIs is to their consumer. And on the consumer side, the success of any API program is a symbiotic relationship between the API provider and the API consumer. Here, we want to make sure that the consumer has a rich experience to be able to find the API assets that are the most meaningful to them and having a consistent experience across all APIs, regardless of which environments they reside in. We're also focusing on our gateway. This is a critical part of our offering. We want to make sure that it's future-proof for our customers, making sure it's cloud-native because these gateways have to reside where our customers' applications are, and those could be on-premise or in a variety of different clouds. We also want to make sure that these gateways have an ability to be performing for our customers, that they have a view in terms of telemetry and health of these gateways as they go forward. As we have seen, the number of APIs continues to explode and need an efficient way for our customers to be able to manage these environments. And we're also addressing advanced capabilities as new protocols and new patterns emerge. For example, service mesh governance or new specifications around event-based APIs and graph QL management and security. Our product strategy has actually been validated by leading analysts, as shown in this slide, by both Forrester and Gartner. In fact, Gartner quotes and I quote Gartner, "Amplify Unified Catalog and Amplified Central are beneficial to organizations adopting multi-cloud and multi-gateway strategy," the key strength that Gartner cites for us. And as we saw from Roland's presentation, that is almost all enterprise customers in some shape or form. When it comes to Axway Core, we are a long-term leader in MFT, and we continue to be mission-critical and foundational for our customers' businesses. MFT has been a market-leading solution for more than 20 years. And over the time, we have become mission-critical for 100 customers. Customers that deploy our MFT solution need a solution that is scalable, secure, and the content of those files is highly valuable. And we do not take this responsibility lightly. And depending on customer needs, we have the ability to support a variety of different file transfer pattern. Now MFT's file transfer volume has been growing 8% to 11% annually, and the file sizes have increased approximately 6%. As we move forward, we are squarely centered on resiliency, scale and increased operational visibility for our customers. Let's delve a little deeper into how we're supporting our customers increase their use. First of all, as the -- first of all, as these become -- these applications become more mission-critical for the business, the business themselves need to be empowered to be able to manage these flows. Second, we want to be able to automate some of the processes, including support, for partner SLAs and provide end-to-end visibility for the business. Cloud, as I said earlier, is a major initiative for most of our customers. And based on their price performance criteria, they want to be able to deploy anywhere, but be still able to control centrally. We want to make sure that we're able to support multi-cloud with central governance and oversight for our customers. And the fourth thing that customers look for is service enablement. Again, we fit into our customers' architecture. And so we want to make sure that we're able to address that customer need. Ensuring our MFT evolves to these needs is what drives our road map. There are key 3 areas that we're focused on when it comes to MFT. First of all, we want to continue to be the best-of-breed MFT for the most sophisticated use cases. We want to support multipattern support as a single flow, bringing tremendous benefits to our customers from an efficiency perspective. We want to cover the multiple different flows, internal and external transfer and human interaction. And we want to, like I said earlier, build in on APIs, which are user-friendly. These are very, very critical for our solution to be able to fit into our existing customer environment. For example, integration with ServiceNow. If something goes wrong with the file, there is an opportunity to kick off a workflow within ServiceNow. Multi-cloud is a critical initiative for us as well, and so we're making sure that we are bringing the efficiency of cloud to all of our solutions. This is important not only for our Axway managed services offering that we have, where we provide that offering to our customers should they wish for Axway to manage that for them. But the same efficiency that we're building into our Axway -- own Axway-managed offering is also available to customers, should they choose to manage the environment themselves. As the MFT use grows, customers want central management and visibility of their entire MFT ecosystem and, of course, enabling self-service for IT and business, including providing valuable insights for our customers to introduce the status of their files. Similar to MFT, we have a strong position in B2B, being mission-critical for our customers' businesses. More than mission-critical, customers view their B2B solution as a competitive differentiator as it enables them to build and manage and operate their ecosystem. Now B2B has been the benchmark by which all other B2B systems are ranked according to bodies such as Drummond. Now Axway has become integral to managing the most complex and sophisticated supply chains in the world. And as the world has shown us last year, these supply chains are fundamental to our customers but also to our global GDP. Axway B2B offers the tools and capabilities to be able to extend the capabilities of these solutions into new use cases, and we'll talk about them in just a moment. So when we talk to our customers, and we will ask them, what are the key things that you're looking for? These are the 3 things that they ask for. First of all, they see an increasing use of EDI. In terms of the number of partner connections, as data sets are richer and more complex, they currently see a 20% increase in EDI traffic. Second, as they look to modernize their own business processes, they want out of the box APIs to enhance experience and automate integration, and we'll talk about how we do that in just a moment. But they also want to be able to integrate with non-EDI partners. Again, increasing the use of their current B2B solutions for additional use cases. Customers also want to focus on operational excellence. These B2B systems need to be always on. So making sure that we have the resiliency and operational capability in these solutions to enable always on is another key thing that they ask. These key customer requirements is what drives our road map theme. Let's talk about that in just a moment here. So first of all, when it comes to cloud, the first thing we have is cloud and managed service. We want to be able to accelerate time to value, and we have an ability to match the service level based on our customer's requirement. Through the years, we've built up great experience in mapping and integration. And should the customers wish to have us manage this for them, we're able to certainly provide that for them as well. The second key area is digitalization and innovation. Now Gartner and our customers have already had raving reviews for us in terms of our APIs that we have, which formed the foundation for our customers to continue innovation. A classic example is a large beverage manufacturer who was able to use our B2B API, then to be able to actually integrate that with Slack and a chat bot. So if somebody from across the world wanted to know the status of their order, they were able to open up a Slack channel and, through a chat bot, find that information out. Before this innovation, that would be a manual effort, a phone call, waking somebody up in the middle of the night. This is a key -- fundamentally key way in which we're enabling our customers' innovation on top of our B2B solution. We're also providing new value-added services such as PEPPOL, which is an e-procurement standard, mostly in Europe, but also in Australia, New Zealand and Singapore; and e-invoicing, which is fundamental for some of the customers' digital initiatives to reduce the number of errors, to make sure that there's compliance and also potentially to even prevent fraud. When it comes to modernization, the key area of focus for us is really around multicluster and geo clustering. Here, our customers are able to have an ability to fail over. So if something does go wrong with their system, other clusters can take over or they may need to update or maintain their existing system, and they're able to do that very, very safely. Containerization is a critical area of focus for us as we go forward as well. Again, to give us the efficiency of cloud, not only for our own managed services, but also to be able to deliver that to the customers. With that, we come full circle. With that, like I said, with that, we come full circle. Our strategy is grounded in being able to support our customers and take advantage of the great opportunity we have in API management. Second, we are growing with our customers around Axway Core and increasing the number of use cases we can address for them. Foundation to all of that is our customers and how we're addressing their key realities. With that, I'd like to turn it over to Vince Padua, who's going to walk you through our longer term vision, again, grounded in our customers' reality. Thank you.

And thank you very much, Rahim, and thank you all for being here. I'm very excited to have this opportunity to share with you the Axway vision for our market and long-term value that we expect to generate for our stakeholders. Rahim has done an excellent job at showing you where we are currently focused, how our priorities and road map in the near term. This portion of today's presentation will focus on our longer-term strategic vision with where we see our markets, products, platform and overall experience evolving for greater value for our customers. Now let's remind ourselves of the vision and mission that Patrick referenced earlier. Axway anchors itself to the key message and value proposition that we have always delivered over our history, the notion of securely integrating systems applications and services and business processes across a very complex world of different architectures, different partners, different processes and ultimately, different ecosystem. As we stated earlier, the way that we position this value has evolved with the ultimate outcome of business-to-business integration. At scale, securely delivered for the world's most complex and dynamic ecosystems has always been the core value. So let's see how our vision and mission drive our point of view moving forward. While we can frame this, our vision, with 3 milestones marked by time, last decade, this decade and next decade, the reality is the vision is ultimately one thing, an outcome of which is empowering enterprises to securely open everything and go beyond a composable enterprise to that of a composable ecosystem. Now I'll get more to the specifics of what a composable ecosystem is in a bit. But first, let's look at these 3 frames of our past, present and future. As you may know, Axway is celebrating its 20-year anniversary this year. We've gotten to today in large part because of the outcomes we've delivered around security and resiliency in the last decade, these outcomes made possible by our managed file transfer, accounting integration, validation authority and B2Bi capabilities, where they operate at the edge of an enterprise by connecting the various components in their infrastructure, in terms of their internal network, their developers as well as externally with respect to their supply chain and their ecosystem to handle such tasks as facilitating cross-border payments, B2B commerce, auditing and operational intelligence. We've done this across numerous industries like banking, retail, logistics and transportation, health care, insurance and government. All of it's on a global scale. Earlier, Rahim highlighted the analyst assessed market opportunity for our managed file transfer and B2Bi products of roughly 2 billion in 2024. The estimate of 2 billion is software only. When we step back and look at the opportunity for B2B commerce, the portion purely for facilitating B2B electronic sales is estimated by Digital Commerce 360, which is an analyst firm, they estimate that B2B commerce is roughly 7 trillion in 2019. That's right, 7 trillion. Of which, they further estimate that roughly 80% of those transactions that drive that 7 trillion of commerce are what they call EDI transaction. Now Rahim mentioned it earlier, a bit about EDI. But it's not that important to really necessarily understand all the nuances of what exactly an EDI transaction ultimately is. Just know that EDI is the primary language for B2B commerce today. It's roughly 80% of that B2B commerce value of roughly 7 trillion. It's what is owned and driven by the majority of enterprises that have extensive supply chains and networks in the industries that I mentioned earlier. The other important thing to note about EDI is that EDI is precisely what our core products do, among the many other things that we've mentioned. And when we look at our transaction volume growth, we see greater than 10% transaction growth in our customers' ecosystems and networks. My point is that the enterprises who have adopted EDI see this technology, its security and resiliency that it provides as a competitive advantage, not something to be discarded simply as legacy. Now let's turn to this decade or our current decade. Axway has extended its leadership position in integrating at the edge of the enterprise as it has already done with MFT and B2Bi to include API. This enabled our customers and their ecosystem far greater speed and flexibility and the ability to adopt SaaS, cloud services and the changing experience landscape that included the emergence of mobile. This chapter of Axway is riding the tailwinds of enterprise industry change that Rahim highlighted earlier, trends such as hybrid, low-code, customer experience, DevOps and extending channel and ecosystem reach. A key enabler of these trends are APIs as they have helped us normalize the enterprise surface area, making it easier to not only connect applications and partners, but to foster greater efficiency of developers, operations teams and innovators. We have responded with these trends to extend our vision to include speed, flexibility and integration with Axway Amplify, our API and integration platform. If you recall, the analysts estimate the API management market at roughly 3.7 billion in 2024, growing at 17%. But if we look at the broader opportunity, which is in customers adopting cloud solutions inclusive of MFT, B2Bi and EDI and the significant growth of APIs, we see an accelerated shift from traditional IT software to that of cloud. Gartner, an industry analyst firm, estimates that solutions delivered via public cloud should be roughly 50% of traditional spending in 2021, with cloud spend growing greater than 50% from 2021 through 2024. This is important for the Amplify strategy that you see today, which is focused on multi-cloud connectivity, API choice and flexibility as well as application integration. Flexera, an IT management vendor, conducted a survey that estimates that 92% of enterprises today have a multi-cloud strategy with greater than 3 cloud platforms in deployment. This hybrid and multi-cloud approach is evidence of the requirement for speed, flexibility and integration that we see today. Now as we look forward, we remain consistent with our past and forward-looking trajectory of our API platform. The notion that enterprises will build on their competitive moats that have been crafted with our products and technology, spanning their internal infrastructure and external ecosystems, are doing so to deliver best-in-class security and resiliency. This creates the foundation to take advantage of cloud, mobile and SaaS. And the next step of the vision is for greater flexibility of the ecosystem, now including partners, developers, line of business users, that are now enabled with far greater automation of their tasks and exchange of economic value across the ecosystem. And they can do it in a way that offers greater interoperability and native communication, allowing for modular yet consistent customer experience across in a channel. In effect, this means faster partner discovery and onboard, an open platform for developers to innovate, multi-cloud and cross-application business process management, all of which is achievable with the help of APIs and our platform normalizing the enterprise architecture. Furthermore, we have MFT and B2Bi normalizing business and commerce communication via EDI. EDI is, like I said, the common language for B2B commerce today. It is a known standard both here in the United States as well as globally. And we see these enterprises shifting beyond just simply the technical performance of those solutions and those capabilities to that of business performance. If we look for evidence of this, we turn to Ernst & Young, who published a survey in February of this year that found that greater than 65% of enterprises said the pandemic had a negative or significantly impact not simply on their company but on their supply chain, i.e., their ecosystem, where they cited the need for a major shift from linear and static ecosystems to more integrated networks connecting many hundreds and thousands of partners. Today, if you look across many of Axway's customers, you will find that some of our customers have north of 50,000 trading partners within their ecosystem, whether that is in our MFT products, B2Bi or API capabilities. Now to augment and complement these trends, many technologies and products stand ready to fill the various demands. Technologies such as artificial intelligence, machine learning, event-driven architecture bots and natural language interaction, partner marketplaces, standardized inter-op approaches to system and partner integration, much of which will be enabled with API, EDI and file-based integration as the starting point, all of which are leadership capabilities that we provide today. Thus, automation interoperability of the past and present infrastructure will drive the future of B2B commerce. Then a composable architecture that goes beyond IT functions like storage, compute, virtual machines, applications and data to that of discovery and the onboard of partners, developers and their associated digital services. This creates greater composability for both IT capabilities and third-party partners that can be easily interchanged, expanded or contracted based upon the needed customer experience. In summary, this composability finally removes the constraints of static, fragile and bespoke partnerships to flexible infrastructure and partnerships that are agile, innovative, adaptable and open. Through COVID, it is very clear how the future has been pulled forward in terms of digital transformation, increasing focus on customer experience and the search for innovation through partnerships and collaborative ecosystems. The challenges for enterprises is multifactor. First, any enterprise with history has their existing infrastructure and existing processes and existing experiences already in place. These are what made them who they are today. A challenge, however, is that due to the access of technology and rapid time to market, there is a growing emergence of competitive solutions that don't come with the baggage of the past. And this access to technology, the cloud and the need for omnichannel experience means a proliferation of infrastructure to support the desired business objective, all the while be constrained by the need for security, compliance and resiliency. The third is around the flexibility of each ecosystem, or how modular and agile are the partnerships and services throughout. A business can only move as fast as its infrastructure, its people and its processes. Axway views these challenges as the next opportunity and evolution of our vision, that of a composable ecosystem. Now before we move on, we need to define what exactly is a composable ecosystem. So let's try to define it. In doing so, let's start with the word composable. The dictionary defines composable as "capable of being set to music," which in the enterprise actually makes good business context and is actually a good fit. Every business in enterprise has a cadence, a certain set of processes and time lines by which it operates. This rhythm can be financial planning, orderly reports, product releases, business model changes, meetings with investors, such as this, all hands or even one-on-ones. Whether the rhythm or composition is intentional for any given enterprise, it is nevertheless present. In effect, it is the cadence, the tempo and the choreography of a business executing its ultimate strategy. Now let's talk about ecosystem. From the dictionary, it is "a complex network or interconnected system." Okay. Well, that means the applications, systems, data, partners, products and overriding business processes that form to create the interconnected system to ultimately serve and become essential to that of the nervous system for the enterprise itself. And if we put those 2 words together, that of composable and ecosystem, I submit that a composable ecosystem is that "the choreography and orchestrate of an enterprise, its elements, assets and partners to provide new opportunities for revenue generation, cost optimization and mass customization." To do that, let's use the example here of an automotive ecosystem. This is an industry that serves as a good example of a composable ecosystem and one that is being hit with massive change due to the growing adoption in regulatory support and increasing demand for electronic vehicles. Question: Do you know that the average internal combustion engine has roughly 10,000 moving parts, while an electronic -- electric vehicle motor has somewhere between 50 to 100 moving parts? The car still has 4 tires, it still provides brakes, windshield wipers and entertainment system, but the electric vehicle has 10x fewer parts. Thus, the car is becoming that of a software platform. And in this ecosystem, that of an automotive manufacturing ecosystem, there is an acceleration of how to automate the supply chain, not just for physical part, but the collection of telemetry and data from the car. Data is data to improve the assisted or self-driving capabilities. Furthermore, it is becoming more interoperable with third-party services like music, video, streaming, entertainment, social, marketplaces, news, weather, road, traffic, et cetera. And now we see the rise of modularity of adding new services such as insurance discounts for safe driving, vehicle-to-vehicle communication for traffic management, predictive maintenance, OEM component analysis for product improvements as well as consent management. To focus truly on the customer experience, the traditional supply chain of parts, logistics and manufacturing now meet digital in an effort to differentiate the overall customer experience with the right partners and data. As we look across industries, we see this pattern playing out in health care, banking, education, insurance, transportation and retail. The convergence of our past and present open significant opportunities for a composable ecosystem. Our future and vision are built on the convergence of value spread across Axway core and Amplify API platform. While these certainly are different areas of our business today, they operate with a shared vision for prioritization, collaboration and stakeholder value, because all successful businesses must operate as a team sport, co-creating and co-innovating internally and externally, working hand-in-hand across all aspects of their business and ecosystem to ultimately find the right experience that delivers them competitive advantage. Some people ask, don't enterprise want to get out of all this technical debt as much as possible to shed the legacy investments like EDI? Well, when we talk to customers, we find that the reality is for them to be in front of their competition today and to mold the software to their business, they ultimately need to be different. They can't afford to be the same as everybody else. There's something about their unique business, the infrastructure that they have delivered to a vast ecosystem. Their partners and who they collaborate with, that's got them to this point of success. The challenge has always been, let's call it, the paradox of modularity. How do you be more flexible while being secure and resilient? Our vision states that you shouldn't have to trade off your past and present for your future, thus securely opening everything. In the end, we believe that Axway helps make B2B commerce and ecosystems better, everything from developers, lines of business, self-service users and partners. Axway will continue to deliver on its strategic vision moving forward. I want to close with a quote from Socrates as I believe it sums up the Axway perspective on our strategic vision very well. "We are what we repeatedly do. Experience -- or excellence isn't an act, it is a habit." For 2 decades, Axway has delivered on the promise of enabling enterprises to drive their businesses, partnerships, infrastructure and ecosystems in a secure and resilient manner, whether that it was through our managed file transfer capabilities, B2Bi, validation authority, accounting integration, EDI, API platform, track and trace or e-procurement solutions. In all areas, these capabilities have remained consistent with our vision. And as we see the market evolving, we believe our strategic vision of a composable ecosystem is made possible by securely opening everything. And with that, I thank you all for your time. Let's now move to Paul French, who will cover the Axway go-to-market strategy.

Thank you, Vince. I'm Paul French. It's a pleasure to be here today. And I think it's been an interesting day so far as we look at the different components that we've covered. I think we can all agree that the strategy is strong, the product portfolio is proven, the team that Patrick has assembled is capable, and now it is all about execution. So as we consider how the rubber meets the road, as we might say, in turning that vision into execution, we start on the go-to-market side looking, as Rahim mentioned, the alignment between product and go-to-market is really important, but I think we believe even more broadly than that. That if we consider that all of the pieces of the operation of our business need to be well aligned to deliver on that go-to-market expectation, really ultimately delivering the value to the customer that they demand. We tie together our product management, our engineering, our sales, our marketing earlier in the development process than most other companies. We litigate the challenges and the trade-offs. We map to the strategy. We consider the M&A requirements. We look at exactly what we need to do much earlier in the process, which simplifies the execution downstream. And it actually provides less risk through the process for us as we try to deliver on the expectations that Patrick has set for us. So for 2021, we're really very focused on 3 key areas from a go-to-market perspective. The first, as Roland mentioned earlier, it is all about the customer for us. It is continuously looking through the eyes of the customer. And as such, the customer experience is #1. We are looking for ways to better engage with them through the process. We launched a new website earlier this year. We're looking for better ways to articulate the value that they experience from a broad-based transformation or from the leverage that they receive from the core portfolio, but also to highlight how Axway plays in that particular experience. And so we've made changes in terms of analytics and reporting and the interfaces that are available in the product, so it's more clear for customers on how that works. We've made changes in terms of the contracting process to be easier to do business with. And recently -- or shortly, we'll be announcing a new far more flexible pricing model for our customers that is far more in line with the outcomes that they expect than many of the alternatives that have been around in the market. As we think about looking at the growth objectives that were described by Patrick and Cecile, so now we look at the demand generation side of things. What are we doing to grow the pipeline? What are we doing to grow the selling opportunities? And in that case, we're looking at areas like adding some more innovative marketing techniques like intent-driven engagement and account-based marketing. We've created a fairly innovative relationship with MIT and are patrons of their center for integration services and how we can use that to better align what we're trying to do in the market, but also to align some third-party research into the messages that we deliver. And then finally, as we look at sales efficiency, it's an important piece for us to look at, as our go-to-market is slightly different, as our product portfolios are slightly different, so then should our selling motions as well. So we, as Rahim mentioned, have a higher impact on account management and customer success on the one side of our business. So it does change the way that we select and we recruit and we onboard and we train our sales team. It changes the way we think about sales enablement, and it changes the way we think about win rates against competition. So as it was mentioned, it is all about 1 game with 2 plays. The Axway experience going forward is going to rely on heavy specialization. And in this case, we look at the Axway side, the core side of the business. The goal is very clear. It's to maintain that market leadership that we've built over the last 20 years, continuing to deliver for those mission-critical customers with a critical measurement of the net retention rate. And it's something that Cecile talked about, how do we continue to look for expansion opportunities for our customers. Our goal in this particular case is to continue to look for ways to drive a profitable business and to continue to deliver the value we have for 20 years. More importantly, so the customers continue to invest with us for the next 20. And as we consider the Amplify side of the business, it is all about market leadership. We have market leadership as identified by the analysts, as Rahim mentioned. But now it's time for us to look at how do we convert that into net new logos and continuing to take market share. That is our goal. Now we never move away from what is critical, again, the customer is first. And so we look at both sides of that business, and we measure our NPS very, very carefully. And while we make changes in terms of go-to-market, specifically around marketing and sales execution for each of these different categories, we've continued to invest in the partner. We understand that partners are valuable for us in a variety of ways. They build credibility. They allow us to engage earlier in the process. They expand the footprint of our sales and go-to-market organization. And so we've made it a priority for the last several years to look for ways to engage with our partners, and we're seeing the rate at which partners are participating in our sales engagements and in our wins rising in a reasonable way over time. And we're proud to say that we've continued to invest in some of our larger relationships, very specifically, Sopra Steria, and have seen a pretty material increase in the contribution that that's made from 2019 to this point. So as you'll notice, you'll see that the partner side of things is critical for both the core and the Amplify piece. And so now let's talk a little bit more about Amplify specifically. So going back to something that we've reiterated several times on purpose, right? We really do believe that the market has changed in terms of where APIs were an opportunity to try to extend yourself and learn how you can to start to be a digital version of yourself, people are almost moving to an API 2.0 sort of approach. Most companies now have multiple API gateways. Most companies now have multiple API projects, and they've become a victim of their own success. They rapidly try to extend themselves on the path that Vince just described. And what they have found then that is exactly what Rahim described is this complexity that is almost without measure, and it's created a risk of not being able to deliver on that digital version of themselves. It's actually made them slower than they originally considered. It's made them less secure, and one of the key measures of developer productivity is plummeting. And so we have a really interesting story when you think about Axway's position in the marketplace with the biggest companies with the most mission-critical use cases is our customer, the National Bank of Canada. And they almost lived exactly the IT complexity challenge that we described, facing new fintech competitors, facing a population who is now living largely on mobile devices and wanting a new type of experience, facing the opportunity to expand their business model to reach into the medium and the small business market, not a traditional component of where they really wanted to be. They were stalled because they had many, many different ways that they could potentially get there, and a combination of leadership changes and different changing expectations put them in a difficult spot. And one thing they didn't want to do is they didn't want to start over because API 2.0 doesn't mean going back to scratch. And so we were a very unique solution for them because through Amplify, we were able to work with the existing API gateways that they had, work with and lead multiple teams that had different API projects going at that moment. And we're now able to launch a solution that gave them the control they needed to deliver the independence that they required at the edge of their enterprise to take advantage of the market opportunity that exists. It's a great example, and it's one of the reasons why we're going to be launching for Amplify. Patrick mentioned the importance of the awareness. And so now we launched a campaign we call Tame IT. It makes reference to the fact that this API complexity is, in fact, a beast that requires taming. It's a scary beast but it can be controlled, and it can be tamed when you look at the way the Amplify platform fits into an existing infrastructure, whether that be a legacy infrastructure or APIs, or whether that be a legacy infrastructure or a heritage infrastructure that is leveraging other integration technologies, whether that's file movement EDI or the like. So as we think about what our go-to-market looks like from an execution perspective, across the top, you'll see the different personas that we tend to engage with. Those are the most often involved in our selling opportunities. And in the mid of the solution themes. And there are really several that are most prominent patterns. As we talk to people that are more in the IT execution, they're very interested in our capabilities around microservices and streams. It's a more developer-centric type of offering. As you look at people that are much more concerned with the business model, concerned with the business challenges, they're interested in controlling API complexity and the inverse of that, which is developing these API marketplaces in these catalogs that allow you to co-create more quickly and to expand your ecosystem to be more composable, even in advance of what it will be long term. And then finally, Axway's history for 20 years has been as one of the most secure providers that we can absolutely deliver on. And so that maintains. We have the opportunity to continue to leverage the history Rahim mentioned about that most secure gateway, that common criteria certification. And we'll continue to make sure that our customers understand the value that we deliver around securing the API. So we moved a little quick on the slide there. Just to finish one last point. From a route to market perspective, our sales teams are, in fact, specialized. And so while we work with partners, we work through an Amplify direct sales team as we think about Amplify opportunities. We'll talk about that as it relates to the core in just 1 second, but it's really critical as we think about making sure we have the right messages in that strategic delivery to take advantage of what this next generation of digital transformation is going to look like. And so now we can move to core. So we find with the Axway core that CIOs have been burdened now for years with this technology that they've acquired over time. And the good news is it provides enormous mission-critical value. And -- but it's also not something anyone's in any hurry to remove if they can manage the cost [ and the complexity ]. And so we believe that one of the critical differentiators for Axway is that's exactly what we do. We believe that building on this technology doesn't have to be a point at which it gets thrown away, that you can effectively augment for many, many, many years, especially with those mission-critical solutions like managed file transfer and business-to-business integration. For example, our customer, the German federal workforce, they have been a customer of Axway's for over 15 years. And they started as an MFT customer moving files, and then over time they added their business-to-business integration capabilities, specifically for the purposes of starting to develop payment infrastructure, delivering benefits for their citizenry. And that's grown over time to truly try to become initiatives that are related to e-government. And so they have now continued to invest with Axway in a replatforming sense, a great concept that MIT speaks about that we're very well aligned with. That by using the API infrastructure, in addition to their core infrastructure, they will deliver more value than you could possibly do, faster and less expensively than if they decided to start from scratch. It's been a great example. And in fact, it had some secondary benefits of security and flexibility as they moved through the pandemic last year. So extending that one further on the core side of go-to-market, similar structure as the previous slide. In this particular case, there's just several broader concepts that we think are great fits as we look to maintain that market leadership. Customers that are running these infrastructures, as both Rahim and Vince mentioned, are now looking at how they can take advantage of the cloud. As we watch our business model transform, as the CEO mentioned, these customers are as well, and they're now continuing to look at how do they better adopt the cloud. And we feel like we've got a really great opportunity for customers there. There are these value extensions that we look for, for our customers, specifically around onboarding, around self-service, around real-time analytics. These are the small investments that customers can make into their existing infrastructure that have outsized return. And we believe that as customers look at these small investments, they'll have the belief that it can reenergize this infrastructure for years and years to come, and there will be no need to make those types of changes. And then finally, just like the story we mentioned a moment ago, this API-enabled MFT and B2B EDI capability that will give new life and start to deliver on the value proposition that customers had in the API 1.0 start of the market. And we feel like from a differentiation perspective, we're very well positioned there because very few people are trying to look at how we can help their customers leverage what they have. Always much easier when you're a vendor to say, "Ah, start from scratch." That's not the Axway way. And so as we think about what it will take for us to win in the future, we recognize it's a competitive environment. And while we're industry leaders, in fact, arguably created the managed file transfer category 20 years ago, we have to defend that and we have to continue to show value. And on the Amplify side of things, we have to continue to extend ourselves in the leadership that we have. Several things come to mind. First, we're really the only open and fully independent provider of these types of solutions in the marketplace. We are not trying to invite someone into a wild garden where the goal is to really sell additional business applications or some other private cloud type of solution or public cloud which is largely walled. Our vision is, and as expressed very clearly, is to be open and independent. We've built our brand around the idea of open everything, and we've made commitments that our goal is to remain an independent provider to reach Patrick's mid-term goals and long-term goals beyond that. So we believe that customers trust the fact that we're a very relevant provider in the face of some choices that would lock them in. Second, we really do look at the strategy, and I think it goes to that, how do we take care of the infrastructures and turn them into brilliant digital experiences. So much so that our go-to-market includes consulting roles that aren't really billable consultants, they're luminaries and academics and people who have held senior executive and IT roles at other organizations, organizations like our customers, and they can have relevant and peer-level conversations about how you get a digital program back on track, how do you move to API 2.0, how do you get the most value out of a heritage infrastructure that may be delivering lots of value in a financial services or a supply chain sense, but maybe there's the drive or desire to get some additional value. So our view is to not start with the technology. It's to start with the strategy. And as Rahim made the point of really looking at that business process and the dependencies in order to put the right solution in place so customers will want to do what most of our customers have done, which is have a very long relationship with Axway. We recognize that we are a little bit unusual in that many of our customers choose us for the most mission-critical options, the things that cannot fail, the Tier 0 types of relationships, and we'll continue to invest in that performance and scale and also keeping an eye to what those customers truly need. And I think that you heard from Rahim, understanding that, that's an input is very unusual for some of the customers in our particular space. And then frankly, as ending where we began, these customers and our customers, we recognize they don't have any desire to start from scratch. Our customers are not start-ups. Our customers have existing customers who have experience expectation and they need us to help them get the most out of that for the next 20 years. And we believe that if we look at our NPS improvements and we look at the continued renewal rates and we look at all the factors that tell us that we're on that right track, we believe that that's the right thing. And so when you entered the meeting today, this slide was up, and it's this idea of open everything, and we all learned a lot in the last year through the pandemic, and some of us are still working from home. We looked at the idea that maybe what we had built, that was a walled garden, that was all about security and biased away from flexibility, biased away from co-creation, biased away from opening to the type of experience that a consumer or an employee or a partner really would want to have. And it takes a new paradigm to say, okay, maybe the answer here is to set it free, is to open the doors securely, of course, right, and within the bounds of reasonableness for our mission-critical customer. But it's a new perspective that says, if I'm open and if I share, I can have broader partner ecosystem. And if we look at the lessons that we learned last year in the pandemic, those customers that had highly flexible and open supply chains did much better than those that had very rigid ones, right? And those people that had open and flexible conversations with their stakeholders and their employees and their ecosystems, they did much better than those that didn't. So it is our commitment to look at the brilliant expectations that you look for and you require as a customer and marry that with your heritage infrastructure and the future that we can actually deliver through the Amplify and the Axway portfolio. So with that, Patrick, I would suggest that we move to questions and go from there. Thank you very much.

Fantastic. And thank you, Rahim, Vince and Paul for your words. If you could open up the lines for questions, Arthur, and moderator, please?

[Operator Instructions] We will now start with the web questions.

So we've got our first question here, from Derric Marcon at Societe Generale. Our event stream platforms far from where is your Amplify product, and can complex event processing be a logical diversification for Axway?

So I think the question on the event stream platform capabilities, and I would even extend that a bit in covering -- I get a common question on RPA technology as well. I think both of those, maybe Vince Padua, could you take a shot at that? Vince?

All right. Yes, thank you for the question. Derric, I believe it was the name. So event streaming, you referenced, I guess, 2 things. One is sort of the state of our current capability versus that of really where the market is. If we go backwards, certainly the market event streaming and, let's say, more realtime interaction within a network, whether it be internal or external, is certainly growing. That trend has been, I guess, persistent for more than a decade. And the use of event-driven technologies and architectures going back as far as the days of IBM and MQTT all the way up to more present things like Kafka, et cetera. There's very prevalence. We certainly see them in customers' environments today. The functionality that we have through the acquisition stream data and now referred to as Amplify streams, certainly allows our enterprises now to take advantage of a lot of the, let's call it, event brokering infrastructure. We are not classically an event broker today. We leverage and work with the investments that our enterprises have made to date. So they can take advantage of that infrastructure at greater scale in concert with our platform with respect to Amplify Central and Amplify Catalog, i.e., how do you take advantage of, let's say, services that sit in many different clouds that may be traditionally request response and now enable them and now have them take advantage of event brokering? So we think we're meeting present day need for what our customers are asking for. To the longer-term trend of how do we enable a more responsive, a more realtime enterprise is very much something that we are very much aligned with, and we'll look to evolve the platform further as the market requires us to do so.

Thank you, Vince. Next question, Arthur?

Yes, Patrick. So a question from Derric again at Societe Generale. What has Rahim changed in Axway product road map since his appointment?

Okay. That's a little direct there, Rahim, on what you're doing every day. Maybe let me take a stab and say a few words first. So before I brought Rahim on board, product management, I ran it for a little bit, not overly successfully. That's why I needed a lot of great help from Rahim. But working with Roland hand in hand and hearing from our customers over the past 3 years, we were taking the hybrid integration platform message to market, and we were trying to push a lot of our portfolio, MFT, B2B, API management together as a platform. And so in taking that to our customers, demonstrating what we're trying to do and build and hearing from them, I took the decision, before Rahim joined, to focus the hybrid integration platform specifically on the API management integration layer and adding a lot of assets around it. And so then when I looked for bringing Rahim on board and having this position as an executive level position in a company, it was critical for me that they have a very strong API management background and enterprise customer background. And so we found that in Rahim, and he was a great addition to the team. And so when he came on, I handed off to him a very clear focus of an API management-based hybrid integration platform. And then the focus of the core part of our portfolio was to grow with the customer. So Rahim, if you want to add some words on then what you've done since then and since your joining about a year ago?

Sure. Sure. Thanks. So first of all, thanks very much for that, Patrick. And as Patrick said, I mean one of the reasons why I joined is because of the great strategy that Axway already had in place that Patrick articulated. And so what he needed was my help to be able to execute on that. As I came on board, we really structured our product management organization to be very, very focused across our different portfolios, the way that we structure them right now. As Patrick mentioned, I have a long heritage in API management, having worked with other companies. And so I was able to actually fill in our talent with some key talent to help us to drive that forward. From a road map perspective, like I said, we really aligned our investments to be able to execute on our Amplify platform faster, and I also got a chance to learn our other portfolio items such as B2Bi and MFT and saw firsthand how powerful these applications were for our customers' mission-critical areas. As a couple of the key initiatives that we've identified here in terms of cloud, in terms of addressing some of the business users that are interacting with the systems, extending the applications to APIs are one of a couple of key things that we've been focused on over the past while.

Okay. Maybe a next question, Arthur.

Sure. So a question from Jacques Marcireau at Edmond de Rothschild Asset Management. The way the presentation is set up, let us almost think as 2 companies, Amplify and Axway. Is it because of a lack of branding for legacy product or a clear signal that 2 sales force, 2 brands, maybe 2 R&D teams should be the way to think about Axway?

Sure. And I'll take that question with Roland. I think we'll split it up between the go-to-market, which Roland will address. Let me speak first to the technology and this strategy. As we've been driving this one company type approach for the last almost 20 years, as we've really ended up having 2 products, 1 growing and 1 product portfolio that's really stable in enterprise-grade where the customers trust us, we were trying to push it all together with the common bond of the hybrid integration platform. So as we've talked to the customers and worked through this model, it become -- became very apparent that the needs of the customers, who you're talking to at the customers, what they expect from your offering was pretty different, even who you were going to go see when you were in the sales cycle. And so when we looked at specifically on the product requests from the customers, in the core portfolio, they're telling us we need it secure, stable, rock solid, highly performant and able to handle the volume every day, every minute without fail. And so the needs for the dev team, the quality of the build team, the way product management looks at the road map, really hand in hand with the customer is very different from what we saw on the Amplify side, which was a bit of a competitive street fight where features, functions are critical, customers were often trying -- dropping the project, trying another one moving quickly and really growing quickly in the market. And so the demands on the product teams there to have both a stable gateway to drive those APIs through, but then the features around it, had to come quick and be more modern, often in the cloud. It just didn't fit to have one approach with the technology team. So we have really separated out and put some experts on both sides so we can meet the needs of the customers. And that's why from the 2 plays standpoint on the technology side, it really made sense. And Roland, maybe you make a few comments on the go-to-market side.

Well, you're almost covering [ most of it ]. But to answer the question, and you were talking about Axway. The way we structure, the way we define the focus of the company is really started from the customers. And we worked with our customers identifying that they're actually -- they were looking for different things, looking from different things, different notions. There's one thing that we have in common for all of our customers is our focus on their success. However, working with them, defining success was different. And that's why we -- yes, we organize ourselves to really being tied to their demand and what was their focus in this 2 zone that we identified and called the Axway core and the Amplify. And yes, so the Amplify -- the sales team, yes, started to separate for most of the customers. Yes, some of the motion into other groups needs to adapt because the need of the customer, their motion, their dynamics, it's different. They are not looking exactly the same thing. So each time on each group, each activities that we are doing, we're really looking on how we are able to really adapt to their needs. So -- and that's permitted to all the departments.

Okay. Arthur, next question?

Sure. So a question from Raphael Lucet at Moneta Asset Management. Axway core turnover is expected to stay roughly flat, whereas volume processed will increase. Is there a way to peg the turnover to the volume processed to get some growth in the core business revenue?

I think for that question, I'll ask Paul to jump in. So the question as I understand it is on the core base. We have traditionally sold a perpetual license and maintenance. That was just -- really it started based on the server size. Is there a way to move to more of a volume base to grow the revenue? Or what are your thoughts there, Paul?

It's an excellent question, and it speaks to a couple of things. The first is that we are seeing customers expand the use cases and expand the transaction volume. So we know that there is potentially additional turnover that we can participate, and it's one of the reasons why we're making adjustments to the pricing models that we make over time. Customers are interested in looking more specifically at how they can align with the outputs that they deliver, and we're willing to do that with them as well. So we do see as a part of the net retention rate concept, customers coming to us, looking for additional transaction volume, looking for additional use cases. And we think that the combination of the core go-to-market and the way we think about pricing should give us the potential to do that.