AgileThought, Inc.

Please stand by, we're about to begin. Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to Agile Thoughts' fourth quarter and full year 2022 financial results conference call. At this time, all participants are in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero. And after today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad, And to withdraw your questions, simply press star one again. Participants on this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes. A webcast replay of the call will be available approximately one hour after the end of the call and running through May 10th, 2023. I would now like to turn the call over to Mariana Franco, the company's head of investor relations. Ms. Franco, please go ahead.

Good day, and thank you for joining IELTS Thought's fourth quarter and full year 2022 earnings conference call. Our speakers today are Manuel Zenderos, Chairman and Chief Executive Officer, and Amit Singh, Chief Financial Officer. Before we begin, allow me to remind you that some of the comments on our call today, including our business and financial outlook and the answers to some of your questions, may be considered forward-looking statements. Such statements are subject to the risk and uncertainty as described in the company's earnings release and other filings with the SEC. The content of this call contains time-sensitive information that is accurate only as of today, March 9, 2023. Except as required by law, I also have explained any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. Today's remarks will also include references to non-GAAP financial measures, such as adjusted operating income and adjusted net income, which is how we track performance internally and the easiest way to compare IELTS to our peers in the industry. Additional information, including reconciliation between non-GAAP financial information to the GAAP financial information, is provided in the associated earnings press release. This conference call will be available to replay via webcast to IELTS Thoughts Investor Relations website at ir.ieltsthoughts.com, where you can also find a copy of our earnings release. I'd now like to turn the call over to Manuel Sendera, our CEO.

Thank you, Mariana, and thank you all for joining us today. I am pleased to be here with you to talk about our fourth quarter and full year 2022 business and financial performance, as well as our outlook for 2023. As we mentioned during our last hearings calls, we have been investing heavily across our sales, delivery, and people functions, which together we believe will enable us to achieve industry-leading top-line growth and margins. In sales, we have increased our headcount by almost 50% in the last few months and with an even more increase in our selling capacity. We still have a few more hires pending, but we strongly believe that as the new sales team members ramp up in the coming quarters, we should be able to materially accelerate our top line growth. We have also been encouraged by the quality of talent we have been able to attract from the leading multinational digital services firms. These new hires, along with our executive management team and the board, all see the clear path in front of us of industry leadership. In delivery, As we have discussed in the previous quarters, we have developed an industry-leading delivery model and strong technical and operational talent that can, along with our industry experts in the market units, deliver to our clients the best consulting, design, and software development services in the market. In the delivery function, just as in sales, we continue to attract very strong talent from the leading digital services firms globally. For people function, a few months ago, we completely reconfigured our team with a strong focus on reducing attrition, building strong hiring capacity, and creating robust value proposition for our employees to help them build a strong and fulfilling career path within our company. It gives me great pleasure to report that we ended the year 2022 at attrition levels, which were almost half of what they were at the beginning of the year. Our attrition is at industry-leading levels. In addition, now our people function is in a position to hire strongly to fulfill the robust demand we expect in the coming quarters. While we expect this investment to show the real results in the second half of the year, we are already starting to witness the benefits, allowing us to close 2022 with a strong quarter. We reported a solid fourth quarter for 2022. with revenue totaling $43.1 million, above our guidance, representing a 2.3% year-over-year growth, and with it, we totaled $176.8 million in revenue for the full year 2022, representing 11.5% organic year-over-year growth, a little color on our 2022 full-year revenue growth. We have in the past talked about two of our professional services vertical clients, which have been declining in revenues materially over the last two years due to the impact of COVID-19. Strategic long-term business decision by our company and our ongoing efforts to remove non-core work from our portfolio. The two accounts together represented close to 50 million or almost 30% of our revenues a couple of years ago and now represent below 10% of our revenues. Moreover, Now our exposure with these two clients is completely digital and we expect them both to stabilize and grow in revenues from here. If we exclude the revenues from these two clients in 2022, our overall organic revenue growth was 20% plus year over year in 2022. Healthcare and TPG retail were our fastest growing verticals in 2022 with 49% and 21% year over year growth respectively. and 8% sequential growth for the fourth quarter 2022. I am also excited to share that we made important improvements in profitability this year. Our gross margin for the full year 2022 was 32.6% above our guidance range and representing a 340 basis point increase from the previous year. Our CFO, Amit Singh, will share more on this later on. We are frequently asked about the demand environment and whether we see it slowing down. The truth is the digital transformation market is still expected to continue growing and accelerating its growth. Fortune Business Insights recently released their update in the digital transformation market, where they projected to grow to 6.78 trillion by 2029. We also continue to experience a strong demand environment from our current clients. And I think staying close to their business and offering them the right solutions for their specific stage and needs has made a difference. An example is a client in the healthcare industry, one of the largest insurance companies in the U.S., who had information from his customers' wearables and was not sure how to leverage it best. By immersing ourselves in the client's business needs, goals, and competitive landscape, we discovered, together with them, the best use of that information. We initially aggregated the Apple HealthKit and Google HealthConnect data into AWS to make it available to the providers. This offers them a more complete patient profile with additional information to that observable during the examination. The access to the mentioned database will ultimately result in more accurate diagnoses and prescriptions, transforming them in stronger provider-payer relationships and savings for our clients. Next, we will create a dashboard for the database to simplify the process and make it easier for providers to reach and manage the information, which will increase its utilization. As with this client, we continue to strengthen the relationship with our existing customers in every vertical. While the majority of our revenues continues to come from our existing customers, we also continue to add new logos to our portfolio. strategically focusing on those clients who may become large relationships that can grow and scale. During the fourth quarter of 2022, we added three new logos to our portfolio, totaling 21 new logos for the full year 2022. We have talked about the investments, changes, and additions made to prepare for our future growth. Now that all the pieces are in place, we want to reintroduce ourselves under a new, fresh brand. I'm excited to share that we will be revealing our new brand soon, one that fully represents Agile Thoughts' vision, purpose, and spirit. We wanted to remind you all that we don't just want to work. We want to focus on doing the right work, and we want to raise our clients' work to be above the rest. Let me give you an example of how we continuously help our clients to exceed expectations. One of our clients, which offers a platform that allows users to buy and sell fine art with cryptocurrency, needed help implementing its blockchain solution to make art ownership more accessible to the public and expand the market to more buyers. Together with our partner, Block Spaces, we conducted Agile Blocks, a set of end-to-end blockchain advisory and development services. We started by determining the level of effort needed to build a blockchain solution and created a cutting edge prototype of a solution that will allow buyers to buy a percentage of fine art and appreciate value over time. The prototype is backed by immutable blockchain technology to handle all cryptocurrency deposits and withdrawals, which will create a permanent ledger of each transaction. Additionally, Agile Thought custom developed the front-end experience and the database to handle the majority of the platform's key functionality, creating user accounts, viewing art on the screen, and even enabling voter rights, which will give users the ability to vote on and agree to the true value of a piece of art. We plan to continue accompanying our client in this journey for an innovative long-term blockchain solution. According to IDC, Cloud, in all its permutations, will continue to play an even greater role across the IT industry as enterprises pivot to a digital-first economy, as it is and will continue to be key in their digital transformation journeys. During 2022, we started investing to strengthen our cloud and cybersecurity guild and continue accompanying our clients in their cloud transformation journey. while we cover all the key areas to assure its success. Technology, people, processes, and of course, business. We can discover, design, and finally deliver the best solution for each client, whether it is building a cloud-native application or migrating the current workloads to the cloud. IDC estimates that by 2025, 70% of enterprises will adopt cloud wants and transit networks to improve the availability, latency, performance, reliability, and scale of their cloud and edge application and workloads. We are enabling our clients to turn to cloud as their future operating model and help them transform their business and the way they interact with their stakeholders. As I see the company grow, I am aware that for growth to be sustainable, we need to grow responsibly. We always aim higher, and the future is not the exception. For that reason, we will release our first ESG report and goals soon. In Agile Thought, we've always been committed to our people, the environment and the communities around us, and integrity has always been part of our DNA. We understand that sitting down and watching will not make a difference. We need to rise up for a better future. The report will present our vision and long-term goals and will bring together all the initiatives and ongoing projects allowing us to walk towards them. Rise Up, our ESG model, is about our commitment to work towards becoming a net-zero company, giving everyone equal opportunities to learn, grow, and succeed in agile products, paying it forward to the community and develop effective, accountable, and transparent institutions at all levels. So do the right thing as we navigate all kinds of challenges and opportunities. Now, I will turn the call over to Amit Singh, our CFO, who will provide additional insights into our financial results.