American Software, Inc.

Good day, everyone, and welcome to today's second quarter fiscal year 2022 financial results. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing the star and 1 on your touchtone phone. Please note this call may be recorded, and I will be standing by should you need any assistance. It is now my pleasure to turn the conference over to your Chief Financial Officer for American Software, Vince Clingus. Please go ahead.

Thank you, Chloe, and good afternoon, everyone, and welcome to American Software's second quarter of fiscal 2022 earnings call. On the call with me is Alan Dow, President and CEO of American Software, Alan will provide some opening remarks, and then I will review the numbers. But first, our safe harbor statement. This conference call may contain forward-looking statements, including statements regarding, among other things, our business strategy and growth strategy. Any such forward-looking statements speak only as of this date. These forward-looking statements are based largely on our expectations and are subject to a number of risks and uncertainties, some of which cannot be predicted or quantified and are beyond our control. Future developments and actual results could differ materially from those set forth in contemplated by or underlying the forward-looking statements. There are a number of factors that could cause actual results to differ materially from those anticipated by statements made on this call. Such factors include but are not limited to changes and uncertainty in general economic conditions, the growth rate of the market for our products and services, the timely availability and market acceptance of these products and services, and the effect of competitive products and pricing and other competitive pressures, and the irregular and unpredictable pattern of revenues. In light of these risks and uncertainties, there can be no assurance that the forward-looking information will prove to be accurate. At this time, I will turn the call over to Alan for our opening remarks. Thank you, Vince.

With the first half of our fiscal year behind us, I'm pleased to report that we have achieved double digit revenue growth in our supply chain management segment each of the past two quarters. And in the second quarter, our total revenue growth also returned to the double digits. Our strong top line performance was accompanied by significant expansion in our adjusted EBITDA margin, which is now approaching the levels we last saw when we had more material contribution from license fees. Although our services revenue may cause some variation in any given quarter, we believe our recent growth in margin profile will increasingly be the norm as we continue to scale our cloud business. Looking back on this past quarter, we exited summer, and with the pandemic starting to ease, the transition back to the in-person activities began to accelerate. However, with the fragmented work environments, business uncertainty, and the frenzied activities our customers are engaged in to address their supply chain issues, especially with the holiday period upon us, we experienced delays in the completion of several contracts. We have since secured one of the more significant opportunities, and we remain actively engaged in several others which should come to conclusion soon. Overall, our pipeline continues to increase, driven by the transformational projects required to enable enterprises to holistically manage their supply chains in a sustainable and economically resilient way. Although the timing of closing these contracts is a little less predictable due to longer approval processes and the relative scarcity of customer resources required to initiate projects, we remain confident that between a larger opportunity set and improved execution, we are poised for a strong second half. In regard to our second quarter results, I'm pleased to announce that we extended our post-pandemic year-over-year improvements on all measures. With increased RPO and lower churn than we were experiencing a year ago, we continue to build our ACV and services backlogs. We continue to focus on serving existing customers, delivering on our implementation commitments, and bringing new companies into our customer community, and we are doing it all more efficiently than ever before. With the post-summer rebound in consulting services, we were on plan or slightly ahead across all revenue and margin areas. We are seeing a continued increase in our services backlog and are relying more and more on our SI partners to assist in the delivery. The third quarter is always a challenge with extended downtime for the holidays. However, we anticipate continued year-over-year growth and margin expansion in the supply chain consulting services business. We're also pleased to see the continued growth in our recurring revenue stream of cloud services and maintenance. which now represents approximately 63% of total revenues compared to 62% in the same period last year. This was driven by the 43% increase in cloud services ACV we saw in the second quarter when compared to last year's second quarter. With the increase in new subscription contracts and a return to the more traditional stability of our cloud and on-prem customer community, we expect to see the recurring revenue as a percent of total revenue continue to rise. During the second quarter, we welcomed five new customers and completed subscription or license fee transactions in six countries, reflecting our strong global presence. In summary, we're pleased with the second quarter results and expect to extend the performance improvements of our financial model through the second half of this fiscal year. We remain intently focused on executing against our growing pipeline and look forward to reporting our progress next quarter. At this time, I'll turn the call over to Vince, who will provide the details on our financial results.