First quarter 2024 revenue of $12.4 million Adjusted EBITDA1 for first quarter 2024 of $2.7 million and Adjusted EBITDA Margin1 of 22% Total Number of Clients2 of 914 as at March 31, 2024 TORONTO, May 8, 2024 /CNW/ - LifeSpeak Inc. ("LifeSpeak" or the "Company") (TSX:LSPK), the leading whole-person wellbeing solution for employers, health plans and other organizations, announced today its financial and operational results for the three months ended March 31, 2024. All references to dollar values in this press release are in Canadian dollars, unless otherwise indicated. "We continued to see strong demand for our whole-person, digital wellbeing services during the first quarter because our clients value the tremendous support we provide for their mental health, physical wellbeing and family needs," said Michael Held, CEO and Founder of LifeSpeak. "Customers want all of these services from a single vendor, and we are able to effectively deliver that during the reporting period." Consolidated Business Highlights for the Three Months Ended March 31, 2024 (All capitalized terms not defined herein shall have the meaning ascribed to them in the Management's Discussion and Analysis for the three months ended March 31, 2024, unless otherwise stated) First quarter 2024 revenue reached $12.4 million, a decrease of 7% compared to the same period in 2023. ARR3 of $48.4 million as at March 31, 2024, representing a decrease of 9% over the same period in 2023. Of the $48.4 million of ARR3, approximately $41.7 million, or 86%, originated from enterprise clients. Of the $48.4 million of ARR3, approximately 67% originated from clients outside of Canada. ARR3 is reported on a constant currency basis using a 1.300 USD:CAD exchange rate. When adjusting for the exchange rate at the end of the first quarter 2024 of 1.355 USD:CAD, ARR3 would be approximately $49.8 million. First quarter 2024 Adjusted EBITDA1 of $2.7 million, a decrease of $1.0 million compared to the same period in 2023. First quarter 2024 Adjusted EBITDA1 Margin of 22% is slightly higher than fourth quarter 2023 Adjusted EBITDA1 Margin of 21%. First quarter 2024 net loss of $1.6 million, an increase from a net loss of $0.4 million in the first quarter of 2023. Notable client additions for the first quarter of 2024 included Accenture, Knitwell and Ascena Retail as new clients. Uptake in the expansion of multi-product clients continued with the close of new launches, including the successful closing of a cross-sale expansion with Amazon Canada, among others. Going forward, the Company anticipates continued uptake in cross-sell as it further executes on opportunities within the current portfolio, as well as an increase in multi-product sales with net new clients. On March 14, 2024, the Company closed a private placement for gross proceeds of approximately $5.0 million. Proceeds of the private placement were used to repay outstanding senior indebtedness, resulting in total senior indebtedness of $66.4 million at the end of the first quarter. The Company anticipates that amortization of the senior indebtedness will be approximately $1.8 million per quarter for the remainder of 2024.  Since December 31, 2023, the Company has paid back $7.8 million of principal of its senior indebtedness, reflecting the commitment to de-lever the business.  _______________________________ 1 See "Non-IFRS Measures, Non-IFRS Ratios and Key Performance Indicators" for a definition of "Adjusted EBITDA" and "Adjusted EBITDA Margin" 2 See "Non-IFRS Measures, Non-IFRS Ratios and Key Performance Indicators" for a definition of "Number of Clients" 3 See "Non-IFRS Measures, Non-IFRS Ratios and Key Performance Indicators" for a definition of "ARR" ARR, Number of Clients, Consolidated Net Dollar Retention Rate and Logo Retention Rate ARR3 was approximately $48.4 million as at March 31, 2024, with core enterprise client ARR3 of approximately $41.7 million. ARR3 was broken down as follows over the last five quarters: (In thousands of Canadian dollars)   Q1- 2023 Q2- 2023 Q3-2023 Q4- 2023 Q1- 2024 Q1-2024 YoYGrowth Enterprise Client ARR 44,824 44,035 43,619 43,447 41,717 (7 %) Embedded Solutions Clients & Other ARR 8,488 8,155 7,913 7,585 6,717 (21 %) Total ARR 53,312 52,190 51,532 51,032 48,434 (9 %) Total Number of Clients2 was 914 as at March 31, 2024, compared to 990 as at March 31, 2023. Number of Clients2 was broken down as follows over the last five quarters: Q1- 2023 Q2- 2023 Q3- 2023 Q4- 2023 Q1- 2024 Q1-2024 YoY Growth Total Enterprise Clients 972 979 973 942 902 (7 %) Total Embedded Solutions Clients 18 17 15 14 12 (33 %) Total Number of Clients 990 996 988 956 914 (8 %) Consolidated Net Dollar Retention Rate4 for the quarter was 83%, compared to 87% during the same period in 2023. Net Dollar Retention4 for Enterprise Clients was approximately 83% as at March 31, 2024, as compared to 92% for the comparative period in 2023. Enterprise Net Dollar Retention4 is lower primarily due to an increase in overall Enterprise Client churn, counteracted by cross-sell and multi-product opportunities within the existing Enterprise Client base. Logo Retention Rate5 was 76% as at March 31, 2024 compared to 83% for the comparable period in 2023. The lower Logo Retention Rate5 is primarily attributable to the loss of smaller enterprise client logos within the portfolio of customers. Despite the decrease in Number of Clients4, the relative contribution to ARR3 of new clients is, on average, larger than that of lost clients. ______________________________ 4 See "Non-IFRS Measures, Non-IFRS Ratios and Key Performance Indicators" for a definition, "Net Dollar Retention Rate". 5 See "Non-IFRS Measures, Non-IFRS Ratios and Key Performance Indicators" for a definition, "Logo Retention Rate". Financial Results for the Three Months Ended March 31, 2024: Selected Consolidated Financial Information Three Months Ended March 31, 2024 2023 Revenue 12,401 13,396 Content development costs 1,283 1,322 11,118 12,074 Operating expenses: