Intellinetics, Inc.

Hello, and welcome to the IntelliNetics fourth quarter and full year 2022 earnings conference call and webcast. If anyone should require operator assistance, please press star zero on your telephone keypad. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to your host, Tom Bauman, Investor Relations. Please go ahead, Tom.

Thank you, and good afternoon, everyone. I am pleased to welcome you to IntelliNetics 2022 fourth quarter conference call. Before we begin, I would like to remind listeners that during this conference call, comments made by management may include forward-looking statements regarding IntelliNetics that are not historical facts. These forward-looking statements are based on the current expectations and beliefs of management, and they are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. IntelliNetics undertakes no duty to update any forward-looking statements. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release issued today, as well as risks and uncertainties included in the section under the caption, Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations in IntelliNetics Annual Report on Form 10-K, filed earlier today. Also, please note that on the call today, management will discuss non-GAAP financial measures such as adjusted EBITDA and total contract value. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. A reconciliation between GAAP and non-GAAP measures can be found in the press release issued today and adjust the EBITDA and total contract value will be described on today's call. With all that said, I would now like to turn the call over to Jim DiSocio, Intellinetics President and CEO. Jim, the call is yours.

Thank you, Tom. This was a strong end to a milestone year for Intellinetics as we delivered consistent growth and solid profitability, demonstrating that our evolution into a SaaS company has delivered improved financial results. Our quarterly revenue increased 47%, while our SAS revenue more than tripled. As a result, our net income increased 664% and our adjusted EBITDA more than bubbled, giving us significant optimism as we head into 2023. This marks the 12th consecutive quarter with positive adjusted EBITDA and the 10th consecutive quarter with adjusted EBITDA exceeding This performance is due in large part to the tremendous success of the Yellow Folder acquisition, which we closed in April of 2022. We are leveraging the success of Yellow Folder and working to cross-sell our services across our broader customer base. We are investing in our sales and marketing capabilities to bolster our cross-selling initiatives, which enable us to further penetrate existing as well as new markets. As a result of these investments, our bookings and our pipeline continue to grow. For 2022, we closed 466 contracts with an estimated total contract value of $7.7 million, an increase of 25% year-over-year in TCV. As a reminder, the total contract value of most of these orders are generally recognizable in revenue over one year or less. Since the April acquisition of Yellow Folder, the Yellow Folder team sold new contracts worth $162,000 in SAS and $220,000 in professional services total contract value. Our K-12 operations now has over 560 K-12 districts generating significant SAS revenue which more than doubles our presence in this vertical since we acquired Yellow Folder. Importantly, each of these districts is a target for additional Intellimatic services. This acquisition expanded our SAS revenue base and also enhanced our EBITDA with high margin business and provides opportunity for more revenue via cross-selling opportunities. Yellow Folder represents our third highly successful acquisition since 2020. In that time, we have successfully acquired and integrated graphic sciences and CEO imaging, as well as the April 2022 acquisition of Yellow Folder. After acquiring all three organizations, we have strategically integrated them into our consolidated marketing and sales efforts. Of our 466 new customer orders in 2022, 364 were to existing customers with new offerings and solutions. As an example, a school district in Michigan was spending $4,000 in annual subscription revenue on an old release of CEO Imaging. We converted the CEO Imaging release to our latest yellow folder K-12 product for a new annual subscription of $9,000 and also digitized all of their student records for $59,000. For another example, a large city in Georgia was using an old on-premise release of our Telenetics HR document management solution. We upgraded the city to our HR IntelliCloud solution, converted 4,000 boxes of city records, and also added the city police department as a customer for a total of $150,000 of net new revenue to IntelliNetX. Simultaneously, we continue to broaden our portfolio of products on our addressable markets. As part of this, we continue to drive adoption of our core IntelliCloud payables automation or IPaaS product. As a reminder, IPaaS is a new enterprise class software payables automation solution for financial platforms with very complex cost accounting. We are collaborating with Constellation Home Builder Systems, part of the $5 billion Constellation Software family, to broaden awareness for IPaaS, especially in the home builder market. At this time, I would like to turn the call over to our Chief Financial Officer, Joe Spain, to talk to you about our financials.