Intellinetics, Inc.

Ladies and gentlemen, and welcome to the Intellinetics first quarter 2023 earnings call. At this time, all participants are in a listen-only mode, and the floor will be open for questions and comments following the presentation. If you should require assistance throughout the conference, please press star zero to reach a live operator. As a reminder, this conference is being recorded. At this time, it is my pleasure to turn the call over to Tom Baumann, FNKIR. Sir, the floor is yours.

Thank you, Karen. Thank you, and good afternoon, everyone. I am pleased to welcome you to IntelliNetics 2023 First 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, Inc., They are not historical facts. These forward-looking statements are based on 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. IntelliNetX Inc. 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 this section under the caption Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations in Intellinetics Form 10-Q filed 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 the total contract value will be described on today's call. I would now like to turn the call over to Jim DiSocio, IntelliNetX President and CEO. Jim, the call is yours.

Thank you, Tom. This was a great start to 2023 for Intellinetics. Our business model is working. We are growing revenue and growing recurring revenue even faster. Recurring revenue now represents nearly three-fifths of our total revenue, reducing quarter-to-quarter volatility. This makes it easier for us to plan investments and spending levels to, among other things, enable consistent profitability. We continue to expand our market share as demand for our solutions is robust and we deliver a tangible ROI for customers. Finally, our cross-selling initiatives are yielding results as we grow our wallet share with customers. We significantly grew our operating income and adjusted EBITDA, delivering positive net income and earnings per share. We are on the right track. Our quarterly revenue increased 55%, while our SaaS revenue increased 187%. As a result, our net income increased $133,000 from negative $20,000 to $113,000, and our adjusted EBITDA increased 48%, even as we invested in technology and marketing tools to enable continued growth. 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 to our broader customer base. As an example, we recently sold Barrington, Illinois School District, multiple Intellinetic Solutions. The school district committed to an annual SAS special education agreement for $9,000 and system setup of $3,000. At the same time, we've agreed to digitally transform historical physical student records for $172,000. 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. In particular, We've expanded the use of our CRM system, which is improving our sales execution. We're also investing to improve our website to help improve our marketing effectiveness. As a result of these investments and continued strong demand, our bookings and our pipeline continue to grow. Since the April 2022 acquisition of Yellow Folder, through March of this year, the team sold 38 new SaaS contracts, worth $233,000 plus $95,000 in setup fees and 50 new other professional services deals worth $472,326 in total contract value. Our K-12 operations now have over 580 K-12 districts generating significant SAS revenue which more than doubles our presence in this vertical market since we acquired Yellow Folder. Importantly, each of these districts is a target for additional IntelliNetX services. Simultaneously, we continue to broaden our portfolio of products and our addressable markets. As an example of this is our IntelliCloud Payables Automation Solution, or IPaaS. As a reminder, IPaaS is a new enterprise class payables automation software solution for financial platforms that serve markets with very complex tax and cost accounting requirements. iPass is driving our collaborating with Constellation Home Builder Systems, part of the $5 billion Constellation Software family, to bring the power of iPass to their customers in the home builder market. That said, iPass is industry agnostic, So this approach is very scalable, and we are actively evaluating our next market path to pursue, which is very exciting. At this time, I'd like to turn the call over to our Chief Financial Officer, Joe Spain, to talk to you about our financials.