Asure Software Inc

Good afternoon and welcome to Azure's second quarter 2020 earnings conference call. Joining us for today's call are Azure's CEO, Pat Goepel, CFO Kelly Brennan, and Vice President of HR, Cheryl Trombola. After the speaker's remarks, there will be a question and answer session. I would now like to turn the call over to Cheryl for introductory remarks. Please go ahead.

Thank you, operator. Good afternoon, everyone, and thank you for joining Assure's second quarter 2020 earnings call. After the market closed, we released our financial results. The earnings materials are available on the SEC's website and our investor relations website at investor.assuresoftware.com, where you will also find the investor presentation. This teleconference is also being broadcast over the Internet and will be archived and available on our IR website. During our call today, we will reference non-GAAP financial measures which we believe to be useful to investors and exclude the impact of certain items. A description and timing of these items along with a reconciliation of non-GAAP measures to their most comparable GAAP measure can be found in our earnings release. Today's call will also contain forward-looking statements that refer to future events and as such involve some risks. We encourage you to review our filings with the SEC for additional information on factors that could cause actual results to differ materially from our current expectations. Finally, I would like to remind everyone that this call will be recorded and it will be made available for replay via a link available in the investor relations section of our website. With that, I would now like to turn the call over to our CEO, Pat Goepel. Pat?

Thank you, Cheryl, and thank you all for being on the call today. Thank you so much for joining us. Thank you for joining us. We provided an update on our business as we're responding to the impacts of COVID-19. We also talked about the headwinds in our key metrics. Since that time, and especially beginning in late May, our key metrics began to improve and continued improving throughout the quarter as businesses started reopening and employees began returning to work. We experienced a steady increase in paid employees as well as an increase in sales leads, and sales productivity in the quarter. We usually do not provide detailed metrics on a monthly basis, but we think it's important to our investors to understand how they've been trending as the economy recovers. On our April call, we mentioned that we had a little over 1,000 of our 10,000 direct customers delayed because of COVID and 160 had returned. Thank you for joining us. though July had a slight tick down from June as some of the states reinstated closures. Still, we're pleased that new sales units exceeded losses in both June and July. Starts in July also exceeded losses. We view this as an encouraging and important milestone on our path to double-digit growth. Thank you for joining us. Thank you for joining us. More than 10,000 small business attendees since launch. Our webinars led by Mike Vannoy are at an all-time high. We could not deliver this excellence to our customers without the dedication of our employees who continue to excel in this ever-changing environment. I want to thank them for rising to the challenge and delivering exceptional service to our small business clients. Thank you for joining us today. As such, we continue to make progress on our strategic initiatives, including product innovation and go-to-market investments, while also controlling expenses. These go-to-market investments resulted in strong new business bookings in the second quarter. Still, as expected, the heightened unemployment rate and 150 basis point cuts in rates in March adversely impacted Assure's second quarter financial performance. Nevertheless, as an essential small business, Assure remains committed to helping our 50,000 indirect and 10,000 direct small business customers grow in this challenging environment. We remain optimistic about our long-term strategy and expect to be well-positioned once the macro environment and our clients' operations normalize. turning to the second quarter financial highlights. Revenue was 14.1. Non-GAAP EPFs was 3 cents. Both exceeded Wall Street expectations. New bookings in the second quarter grew 21% year over year, demonstrating success in our initiatives. Our human capital management quota carrying reps now stand at 55, up significantly from the 33 we began the year with. in addition to salespeople, we also hired human capital management developers and client service people to meet the changing requirements for small businesses. Shifting to the board of directors and senior leadership changes that we announced today. We launched our human capital management only strategy in December with the sale of the workspace business. We completed the transition services in June. Thank you for joining us. To CEO, I am truly honored to assume the important role of chairman of Assure and want to thank my fellow directors for the trust they have placed in me and our leadership team. Furthermore, the board of directors have elected current board member Dan Gill as the lead independent director. We look forward to working together with Dan in his expanded role as he's been a valuable leader and a source of knowledge for Assure for several years now. Eyal Goldstein has been promoted to President and Chief Revenue Officer. Eyal's made some outstanding contributions to Assured's growth and success. While he takes on additional management responsibilities of overseeing some certain operations, I will be able to concentrate on some strategic focus with a focus on growth and creating greater shareholder value. Jay Powers has been appointed as Chief Financial Officer, succeeding Kellen Brannan, who will consult through the end of the year. Jay has more than 30 years of leadership experience in accounting and finance at publicly traded technology companies and resides in Austin, Texas, where the majority of Assure's finance team works. I'd like to welcome Jay and also very much want to thank Kellen for Thank you for joining us. brings over a dozen years of human resources and diversity experience to Assure's board, and Ben Allen brings a wealth of experience as CEO and president of multiple industry-leading companies, and we'd like to welcome Grace and Ben and look forward to their expertise and immense contributions. With that, before we go any further, I'd like Kellan to talk about the detailed financial results. Kellan?