American Software, Inc.

Good day, everyone, and welcome to today's fourth quarter and fiscal year 2024 earnings results call. 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 telephone keypad. You may withdraw yourself from the queue by pressing star 2. Please note this call is being recorded, and I will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Vince Klingas. Please go ahead, sir.

Thank you, Travis. Good afternoon, everyone, and welcome to American Software's fourth quarter fiscal 2024 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, 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. Although challenging from an economic standpoint, fiscal 2024 was a pivotal year for American software. Strategically, we transformed our company through the divestitures of the proven method and transportation rating solutions, leaving us with a singular focus on our core supply chain software business moving forward. This transformation will become more evident later this year as we plan to rename the company Logility and trade under the ticker symbol LGTY. Most important is that our Logility brand is already known to our existing client community and prospects. And Logility was recognized by Gartner as a leader in the latest magic quadrant for supply chain planning solutions. So this change will align the company with our brand. To further distance ourselves from the competition, we accelerated our AI roadmap significantly in fiscal 2024 with the acquisition of Garvis. As we shared last quarter, the Garvis products have been rebranded as Demand AI Plus, and early indications suggest that the new capabilities will benefit us on three fronts. The addition of new logos to our client community, an accelerated pace of existing client lift and shifts to the cloud, and upgrades of existing cloud clients to this next generation of demand forecasting. Given that Demand AI Plus represents our next generation demand intelligence platform and is only available in the cloud, we recently informed our clients that new innovation will no longer be available on premise. We believe this will further catalyze the conversion of our maintenance revenue to subscription fees over the next several years. Even as we bolstered our platform through M&A, we continued to return capital to our shareholders via our usual quarterly dividend, and for the first time in many years, we repurchased stock in the open market, fully utilizing the remaining amounts of our prior authorization. Finally, we reached a definitive agreement with our founder and Class B shareholder, Jim Edenfield, which, subject to shareholder approval, will eliminate our dual-class structure. In aggregate, we believe the actions we have taken over the past year will create significant shareholder value in the years to come. Turning to the fourth quarter, our results were largely as expected, and we were pleased to meet the revised guidance for the full year that we provided midway through fiscal 2024. Similar to our experience over the past year, our clients and prospects remain engaged on transformational supply chain initiatives, but have delayed approvals or start dates, and in some cases staged the commitments over multiple phases amid persistent macroeconomic headwinds. Our pipeline again grew from the improved levels we saw in the third quarter, reflecting both strong interest in our new AI capabilities, as well as an increase in late-stage deals that remain in the closed process. Although pipeline conversions remains below historic norms, we continue to see improvement relative to the start of the fiscal year, resulting in a sequential uptick in our backlog that was partially driven by contracts signed late in the fiscal quarter. Contributing to the backlog growth in the fourth quarter was greater desire among our clients to move from on-prem to our enhanced capabilities in the cloud. interest from our cloud clients in upgrading to the AI forecasting approach with DAI+, the acceleration of generative AI capabilities, a number of Garvis pilot clients expanding the footprint more broadly across their enterprise, and the traction with our continuous network optimization capabilities that provide insights into navigating around the bottlenecks in supply chains. We're also on the forefront of releasing new AI-based capabilities that expand value for our clients by enhancing their decision-making, such as Inventory AI+, which we announced in the spring, and most recently, the Decision Command Center. We have other groundbreaking solutions on the horizon for the year ahead. As we look forward to the current fiscal year, we're encouraged by the level of pipeline growth experienced throughout the latter half of fiscal 2024. We are poised to invest ahead of the growth as soon as we see the economic pressures and uncertainty subside and pipeline conversion starts to accelerate. At the same time, the timing of deal closures, particularly large transactions, remains difficult to predict and can meaningfully impact the revenue we recognize in any given period. Thus, while we believe our cloud bookings should grow at a higher rate and translate into accelerating subscription fee growth exiting the year, our initial outlook for fiscal 2025 reflects conservative assumptions around the timing of client spending decisions and the delayed revenue impact from late year bookings. Taking all this into consideration, our initial guidance for fiscal 2025 includes total revenue of 104 to 108 million, recurring revenue between 87 million and 89 million, and adjusted EBITDA of 15 to 16.4 million. At this time, I will turn the call over to Vince, who will provide the details of our financial results.