Intellinetics, Inc.

Greetings and welcome to the IntelliNetics fourth quarter and full year 2024 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operating assistance, 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, CFO Joe Spain. Thank you. You may begin.

Thank you. Good afternoon, everyone. I'm covering the investor relations intro today, so I am pleased to welcome you to Intellinetics 2024 fourth quarter conference call. Before we begin, I'd like to remind listeners that during this conference call, comments made by management may include forward-looking statements regarding Intellinetics, Inc. 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. Enceladus 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 the section under the caption, risk factors and management's discussion and analysis of financial condition and results of operations in our 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 recurring revenue. 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. With all that said, I would now like to turn the call over to Jim DiSocio, IntelliNetX President and CEO. Jim, the call is yours.

Thank you, Joe. 2024 was another solid year for us as we continue our mission. We were investing to exploit our opportunity to grow more rapidly as we transform into a predominantly SaaS-driven company with a diverse growing suite of solutions for our customers in the digital transformation space. On top of that, we completed 2024 with another extremely strong year of cash flow generation. Our main story continues to be our Payables Automation solution. We are confident it will be the driver to take our business to the next level. As I've said in prior quarters, I've been in software my entire career, and this launch is going as well or better than any launch I've been involved with. Customer acceptance is high, and the ROI story for our customers is amazing. One of our largest customers is processing over 11,000 invoices a month with zero touch. Let me say that one more time. Over 11,000 invoices a month. with zero human intervention. Those are significant results, and we're very proud of our solution. In last quarter's call, I referenced our presentation at the Builder Smarter Conference, the annual user conference for home builders hosted by our ERP partner, Constellation Home Builder Systems, and the buzz around the customer ROI of our solution. Since that conference in October, we have closed four new payables automation orders for Constellation customers, and have launched a pilot program with a leading North American home builder and land developer who is one of Constellation's largest customers. We're on schedule to release our new complimentary purchase order solution at the end of this quarter. Purchase order will expand our opportunity base while also adding PO transaction volume to over half of our existing customers who are using only the accounts payable functionality today. This will add incremental revenue to our existing AP customers. We have also recently launched our Payables Automation solution into the K-12 market in coordination with our partner, Software Unlimited Incorporated. After a pilot program with Clear Creek Community Schools, we have closed two additional Iowa school districts and engaged our K-12 sales force and marketing team in February. Our K-12 pipeline is growing quickly. The K-12 customers can generally implement in less than half the time of the larger home builder entities. As a matter of fact, Independence Community School District went live in January and has already caught the attention of their school board. According to their finance director, the school board likes the automated aspect of the system, not only because it greatly reduces the opportunity for human error and speeds payment processing, but also because it allows them to spend their time on more meaningful tasks. To quote her, even though we are just beginning to take advantages of the features available in the system, we are already more efficient. If we stopped today and didn't implement any of the rest of the features, I would still be happy with what we've accomplished. Throughout the rest of the year, we will be co-presenting with Software Unlimited at numerous K-12 conferences and trade shows to drive deployment of our payables automation solution into an ecosystem of 1,300 school districts. Our first priority is to make significant inroads in these two populations. We're not waiting on those alone, though, and we have resources focused on finding the next partners like Constellation and Software Unlimited. We have an opportunity with niche ERP providers where we can outperform and out-support competing generic solutions. Further, unlike with many of the larger software solution providers who offer similar solutions as we do, We are not competitors with regard to our partner's core ERP systems. Accordingly, as we have been communicating, now is the time for us to invest in scaling our business. We began in earnest in the latter part of 2024, hiring more sales reps, implementation management, and additional help desk support. We've continued investing in 2025 with bringing on sales engineering resources, and a VP of sales to strengthen and institutionalize our sales tools and processes as we grow. We've also expanded our outbound sales efforts with internal and contracted resources. Our marketing spend will include more frequency and a larger presence at select trade shows, as well as expanded campaigns. These investments will modestly, and we expect temporarily, reduce our EBITDA but we also expect that they will bring revenue opportunities that should exceed the spend and be accretive at the same point in later 2025 and in 2026. I'm greatly excited to be part of this mission. 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. Thanks, Jim.