Intellinetics, Inc.

And welcome to Intellimatic second quarter 2023 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tom Baumann of Intellimatic. Please go ahead, sir.

Thank you, and good afternoon, everyone. I'm pleased to welcome you to IntelliNetics' 2023 second 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. IntelliNet Async 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 in Management's Discussion and Analysis of financial condition and results of operation in Intellinetic's quarterly report on Form 10-Q filed earlier today. Also, please note that on the call today, management will discuss non-GAAP financial measures such as adjusted EBITDA, recurring revenue, 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. 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 another strong quarter for Intellinetics. demonstrating our ability to consistently grow our top and bottom line results. We grew our revenue 25% and our SAS revenue 10%, reducing our operating expenses, even while delivering double digit revenue growth, leading to significant improvements in our profitability. The double digit growth rates were reinforced by strong second quarter sales and our growing backlog of business. We have already seen an acceleration in customer demand in the third quarter, as the recessionary concerns have begun to abate. We have not lost any meaningful opportunities, and we remain on track to surpass our full-year results. Clearly, our business model is working. Growth in our SaaS, maintenance, and business process outsourcing professional services were all eclipsed by the tremendous performance of our non-recurring revenue professional services in the period. shifting our mix temporarily with recurring revenue representing 58 percent of total revenue and non-recurring rising 42 percent that said our base of recurring revenue has reached a point where it exceeds our operating expenses in other words we generated 2.5 million in recurring revenue with 2.3 million in sdna costs this base gives us significant visibility makes it easier for us to plan investments and staffing levels, and most importantly, ensures 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. In Q2 2023, we closed 96 contracts with an estimated total contract value of $2.1 million. As a reminder, the total contract value of these orders are generally recognizable in revenue over one year or less. Since the April 2022 acquisition of Yellow Folder, The LFO team sold new contracts worth $562,000 in SAS and $140,000 in software-related professional services total contract value. These amounts exclude our success in cross-selling digital transformation, which I'll come to in a moment. Our K-12 operations now has 530 K-12 districts collectively generated 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. Two examples of our cross-selling opportunities we recently sold. First, a large school district in Illinois purchased a Yellow Folder special education solution and a digital transformation job worth $172,000. And second, a school district in New Mexico purchased our student records solution and a digital transformation project worth $154,000. The combined total contract value of $372,000 will be recognized over the next 12 months. Since the Yellow Folder acquisition in April 2022, We have successfully cross-sold 51 K-12 deals worth $1.6 million in total contract value. This reinforces our strategic acquisition of Yellow Folder and our ability to sell our digital transformation professional services into our K-12 customers. We have also been very successful selling K-12 customers our new employee onboarding form solution, that expedites the hiring process for new teachers and K-12 employees. Further, we are in the early days of testing our new payables automation solution at two K-12 districts. 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 solution, or IPaaS. As a reminder, iPass 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 iPass, especially in the home builder market. Stepping back, I am extremely pleased with how we've integrated three acquisitions since March of 2020, while maintaining our focus on delivering solutions to our customers. These acquisitions have been instrumental in us achieving new performance levels, and I am confident our recipe for integration is working. I'm very excited about the future at Intellinetics. At this time, I would like to turn the call over to Chief Financial Officer Joe Spain to talk to you about our financials. Thanks, Jim.