AgileThought, Inc.

Good afternoon and welcome to Agile Thoughts' third quarter 2021 earnings conference call. As a reminder, today's call is being recorded and your participation implies consent to such recording. 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 pound zero on your telephone keypad. With that, I would like to turn the call over to Olga Shinkaruk, Vice President of Investment Relations. Thank you. Please begin.

Thank you, operator. Good afternoon, everyone, and thank you for joining us for Agile Thoughts Financial Results Conference call for the third quarter ending September 30th, 2021. On the call today, we have Agile Thoughts Chairman and CEO, Manuel Sanderos, and CFO, Jorge Pliego. Before we begin, allow me to provide a disclaimer regarding forward-looking statements. This call, including the Q&A portion of the call, may include forward-looking statements related to the expected future results for our company and are therefore forward-looking statements. Our actual results may differ materially from our projections due to a number of risks and uncertainties. The risks and uncertainties that forward-looking statements are subject to are described in our earning release and other SEC filings. Today's remarks will also include references to non-GAAP financial measures. Additional information, including reconciliation between non-GAAP financial information to the GAAP financial information, is provided in the press release. This conference call will be available to replay via webcast to Agile Thoughts Investor Relations website at ir.agilethoughts.com. Manuel will begin with an overview of Agile Thoughts, followed by our third quarter highlights. Jorge will then take you through a review of the financials before we proceed to Q&A section. With that, I'll now turn the call over to Manuel.

Thank you, Olga. And welcome to our first earnings call as a publicly traded company. I know that some of you listening are new to Agile PodStory. So before we go into a review of our recent performance, I would like to spend some time to provide an overview of our business and operating model and why we believe we are positioned for long-term growth. I'll then turn the call over to Jorge, who will walk through our third quarter financial resource in greater detail and discuss our full year 2021 outlook. Our generation is living through a rapidly changing world where our physical lives are increasingly combined with our digital lives. All businesses need to embrace this new digital world to survive and thrive. Digital Thought has a clear vision to help our customers innovate, build, and run the next-generation digital enterprise, with our world-class agile teams spread throughout the Americas. Our market opportunity is huge. Being a public company assures we have the means to achieve our full potential. For many years, Fortune 1000 companies have trusted Agile Thought to solve their digital challenges and optimize mission-critical systems to drive business value. We are a pure next-generation digital solutions provider, We create modern software for the large enterprise to enable the digital transformation initiatives. We do that with three lifecycle components, innovate, build, and run. We help companies innovate on their business model, determine what's the best way to approach the market in a digital way. We build in the applications in a very collaborative fashion using our agile methodology in the same time zone. And then we help them run those applications. We continuously improve on those applications as they run through our DevOps framework. We achieved that in a very competitive way with both onshore teams in the US and nearshore teams throughout Latin America. We address a significant market opportunity. The digital transformation market just for services is approximately $750 billion and growing 15% plus. And we believe we are very well positioned to take share. We use onshore and nearshore delivery capabilities within an agile and DevOps framework, which is a very collaborative model. It is all about continuous delivery with very short sprints and iterations. So it's best done on the same time zone and as close to the customer as possible. We address the U.S. market as a primary market. 65.9% of our revenue today comes from the U.S. Our target is to move up to 85% in the coming years, and the remainder is Latin America, where we primarily serve global customers. In addition to being in the same time zone, we also have access to the talent pool in most of the relevant countries in Latin America, and in particular, Mexico. Mexico is the eighth largest country in the world and the second largest country in Latin America. It is home to a large talent pool with close to 120,000 STEM graduates per year. Their strong English skills, as well as their ability to travel to the U.S. within the free trade market, enables us to interact in the very collaborative fashion that agile development requires. Our gross margin is poised to significantly improve as we do more nearshore versus onshore delivery. We believe a hybrid onshore-nearshore model is the best approach, but naturally, this varies depending on each engagement. By focusing on expanding our sales capabilities in the U.S. market and expanding our near-shore delivery in Latin America, we have the opportunity to continue to accelerate revenue growth while expanding our gross margins at the same time. In summary, it's a very clear strategy. More U.S. slangs using our Agile hybrid model. Finally, we will continue to view M&A as a growth driver, supplementing our organic growth. Over the past six years, we have completed 11 acquisitions, so we are very experienced. We expect to continue to opportunistically pursue talking acquisitions to enhance and augment our capabilities, our client's portfolio, and our talent. With that as backdrop, I would like to now turn to this quarter's performance. We are pleased with our positive business momentum during the third quarter, where we delivered sequential growth of 3.8% over the second quarter. which on average results in a 5.5% quarter-over-quarter growth from Q4 of 2020 to third quarter of 2021. That supports our long-term growth target range of 20 to 25% organic year-over-year growth. New bookings and new clients are strong leading indicators for future revenue performance. With 10 new clients added during the quarter, and total bookings of $61.4 million, an 11.9% increase Q3 over Q2. Both indicators confirm the high demand environment for our services and the return on the investment we made on aggressively expanding our sales team in the U.S. market over the last 18 months. We have lowered the normal gross margin in the quarter of 26.6%. mainly because we hired and held a large group of consultants on the bench to be ready to start newly sold engagements in Q4, combined with the effects that the new labor law in Mexico had in our Mexican payroll costs. As these consultants become billable and we adjust our prices, we expect to see revenue acceleration in Q4 and gross margin expansion. Attrition continues to be a challenge in our industry. but we are actively working in several initiatives to improve retention that are beginning to show progress. We will continue to focus on top-line growth in the U.S. market and expanding our nearshore delivery, both underlying components for expanding our gross margin going forward. We anticipate the SG&A investments we have made up front to expand our sales team, ready our foundations for scale, and operate as a public company will translate into strong future earnings as we obtain operating leverage with the current growth trajectory. Thank you for your time and continued support. I'll now turn the call over to Jorge to discuss our financial results for the quarter and guidance for the year.