American Software, Inc.

please stand by your program is about to begin if you need assistance on today's call please press star zero hello and welcome to the third quarter fiscal year 2024 earnings results conference at this time all parties are in a listen-only mode later you will have an opportunity to ask questions to ask a question press star and one on your phone keypad again that is star one if you would like to ask a question To remove yourself from the queue, press star two. Please note that this call is being recorded, and I will be standing by should you need anything. I would now like to turn the conference over to Vince Klingas, CFO of American Software. Please begin.

Thank you. Good afternoon, everyone, and welcome to American Software's third quarter fiscal 2024 earnings call. With me on the call is Alan Dow, President and CEO of American Software. Alan will provide some opening remarks, and then I'll 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, 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'd like to turn the call over to Alan for opening remarks.

Thank you, Vince. Good afternoon, everyone, and thank you for joining us today. Our third quarter was one of the busiest periods we've seen in the last year and a half, particularly as we entered into the new calendar year. Our clients and prospects are re-engaging on transformational supply chain initiatives that have been in the works for some time, and while we continue to experience some delays in the larger deals, the demand environment appears to be improving. Against this backdrop, our third quarter results were in line with our expectations, and we remain on track to deliver the fiscal year 2024 guidance we provided last quarter. Before I review the third quarter results in more detail, I'd like to provide an update on the integration of Garvis, which we've rebranded as Demand AI Plus and represents the next generation demand intelligence platform. Our teams have been fully integrated and we're actively collaborating on both sales opportunities and our product roadmap. From a go-to-market perspective, we've continued to leverage pilots to gain access to new strategic accounts However, the primary emphasis with both new prospects and our existing client community is to drive towards rapid deployment of demand AI plus into full production use as quickly as possible. We expect to close several longer term engagements in the fourth quarter, which resulted from winding down the previous pilot engagements in converting them to long term contracts with broader production deployments. In addition, Our pipeline of lift and shifts has increased dramatically as we continue to drive awareness of our AI native demand forecasting capabilities, and the first production-worthy use of generative AI capabilities to streamline decision-making for supply chain planning across our client community. In fact, we've already seen some existing agility accounts adopt Demand AI+. One is a rapid growing US-based coffee brand with a highly promoted product line. The DAI Plus solution will help them better manage the spikes in demand they often experience and determine the most cost-effective promotions to profitably grow their company. We are encouraged by this early success and believe that Demand AI Plus will play a critical role in the migration of our existing clients to the cloud in the coming years. Turning back to our third quarter results, We're pleased to see another sequential uptick in our backlog as our clients and prospects began to reengage on previously stalled initiatives. Our revenues largely tracked our internal expectations, but we note that the declines in our maintenance and service revenues respectively were exacerbated by the divestiture of our transportation group and the lower utilization during the holiday periods. From a profit standpoint, our adjusted EBITDA margin held steady on a sequential basis, despite the inclusion of Garvis's expenses for the full quarter and some additions to our product development team. Overall, we continue to see signs of improvement in the demand environment. We have a robust pipeline for entering Q4, leaving us poised for a strong finish to our fiscal year. Our guidance for fiscal 2024 remains unchanged, and we continue to expect to see recurring revenue between $85 million and $88 million, adjusted EBITDA between $14.5 and $16 million, and total revenue between $100 to $104 million. Given our performance to date though, we anticipate reaching at least the midpoint on these respective guidance ranges. Finally, I want to provide an update on other initiatives that have been discussed previously. We bought back over $5 million in stock during the third quarter and have now repurchased all of the shares remaining under our prior authorization. Yesterday, we announced that our co-founder, executive chairman, and treasurer, Jim Edenfield, retired from the board as well as his role as the company's treasurer. After over 50 years of leadership for the company, Jim was not only a steadfast leader of our company, which we'll be forever grateful, but he was also a visionary for our industry as a whole. We appreciate Jim's willingness to continue as an advisor to our board and to me. Jim Miller, who has been our board member since 2002, accepted the role as chairman and along with other board members will guide us through the strategic initiatives we had previously laid out. Furthermore, in regards to our dual class structure, we remain engaged with our Class B shareholder to consider various options. Jim's retirement has no impact on the previously announced timeframe for that work. At this time, I'll turn the call over to Vince, who will provide details of our financial results.