American Software, Inc.

Good day, everyone, and welcome to today's first quarter 2025 earnings 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. Please note, today's call will be recorded, and I will be standing by should you need any assistance. It is now my pleasure to turn the conference over to Vince Klingis, Chief Financial Officer for American Software. Please go ahead.

Thank you, Chloe. Good afternoon, everyone, and welcome to American Software's first quarter 2025 earnings conference 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 that differ materially from those anticipated by statements made on this call. Such factors include, but are not limited to, changes in 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 our opening remarks.

Thank you, Vince. Good afternoon, everyone, and thank you for joining us today. Our first quarter performance was consistent with our internal expectations and provided a solid start to our fiscal 2025. Reflecting the improvement in our bookings over the past few quarters, our revenue increased slightly both on a sequential and year-over-year basis, led by sustained growth in our cloud revenue, high retention rates, and a return to growth in our services. This, in turn, translated to the strongest gross margin performance we've seen in over a year. which combined with the disciplined expense management drove our adjusted EBITDA margin up to nearly 18%. Our AI-first approach to supply chain planning continues to resonate with new and existing clients. In May, we launched additional generative AI capabilities across the Logility platform, as well as the new Decision Command Center capabilities, which provide a structured and insight-rich approach to guiding users and organizations through critical decision processes. The combination of these enhanced capabilities is accelerating and improving the quality of supply chain decisions while making those decisions more transparent and inclusive for all levels of our clients' supply chain teams. As we continue to advance and mature the use of AI across our platform, we are making a concerted effort to elevate the existing self-managed clients who operate our software in on-prem deployments up to our current version where we manage the applications for them in our cloud-hosted realm. While still early days, we have initiated conversations with many of our clients about when and how to budget for this transition and expect to see an uptick in cloud migrations towards the end of our fiscal year once funding for the new calendar year initiatives have been secured. As anticipated, conversion of our pipeline remained low by historical standards due to the combined impacts of seasonal softness we typically experienced during the summer months and push out some potential projects as buyers remained cautious in an uncertain economic environment. However, we are pleased to have generated higher bookings in this Q1 than we did at the start of our last fiscal year. And we are encouraged by the increased contribution from new and existing clients. Not surprisingly, DAI Plus featured prominently among our new client wins this quarter. We also saw increased traction from our network design optimization solution among both new and existing clients. This combination is providing them a unique solution to overcome the supply chain volatility they are experiencing in this market. Looking forward, our late stage pipeline has continued to expand due to the delays we've experienced over the past 18 to 24 months and new interest that is being stimulated by the calendar year 2025 budgeting cycle. Although we remain cautious on forecasting any meaningful short-term improvement in the demand environment, the growth in our pipeline, coupled with some indications from our clients and prospects, that they are finally ready to move forward with projects provides us with the confidence that we can meet and perhaps exceed the guidance we put forth at the start of the fiscal year. We plan to reassess our full year expectations once the first half is complete and our clients and prospects have had an opportunity to see through the anticipated interest rate adjustments and the election process. In the meantime, we're reaffirming our prior fiscal 2025 guidance for a total revenue of 104 to 108 million, recurring revenue between 87 to 89 million, and adjusted EBITDA of 15 to 16.4 million. Lastly, I want to thank our shareholders for approving our proposal to eliminate the dual class structure that has been in place for many years. We believe the move enhances our corporate governance and aligns with the transformation we have undertaken to become a pure play AI first supply chain software company. At this time, I'll turn the call over to Vince, who will provide the details of our financial results. Thanks, Alan.