Asure Software Inc

Good afternoon and welcome to Assure's first quarter 2022 earnings conference call. Joining us for today's call are Assure's chairman and CEO, Pat Goeppel, Assure's chief financial officer, John Penst, and head of investor relations, Randall Rudnitsky. Following the prepared remarks, there will be a question and answer session for the analysts and investors. I would like to turn it over to Randall Rudnitsky for introductory remarks. Please go ahead.

Thank you, operator. Good afternoon, everyone, and thank you for joining us for Assure's first quarter 2022 earnings call. Following the close of markets, we released our financial results. The earnings release is available on the SEC's website, where you can also find, and on our investor relations section of our website, you can find the investor presentation. 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 measures, 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 use words such as expects, believes, and may to to indicate forward-looking statements, and 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'd like to remind everyone that this call is being recorded and it will be made available for replay via a link available on the investor relations section of our website. With that, I would now like to turn the call over to Pat Geppel, Chairman and CEO. Pat?

Thank you, Randall, and welcome, everyone, to Assure Software's first quarter earnings call. We sure appreciate your interest, whether you're a shareholder, client, employee, or prospective shareholder or analyst. I'll begin today's presentation with an update on our business highlights and strategy, and then we'll turn the call over to our CFO, John Pence, for a more detailed review of our financial results and outlook for the remainder of the 2022 fiscal year. We will then conclude the session with time to answer your questions. First of all, I am pleased with the way our business performed in the first quarter. We delivered solid execution of our 2022 business plan and we continue to build our sales and product momentum and we showed meaningful progress in key business areas. We grew revenues by 23% in non-GAAP EBITDA by 18% relative to the prior year. We also improved our business mix with reoccurring revenues representing 95% of our total revenues. Let's now turn to the progress we made across the business in the first quarter. I'm really excited about what we were able to achieve and how that sets us up for the remainder of 2022 and looking into 2023. I will start with innovation of product and technology. We had important achievements in the first quarter, which were the culmination of a lot of dedicated effort over the past few quarters. Our technology focused has two main vectors. One is to enhance the connections between our platform with partners to provide new ways of creating value for clients and the entire human capital management ecosystem. We believe there is a meaningful opportunity in this area to create new high margin revenue streams for Assure. A great example of our focus in this area is It's our announcement this morning that we have launched the integration marketplace. With 128 pre-built integrations, we now have the foundation to create new client solutions and new revenue streams. We're able to introduce integration marketplace because of our commitment to create a strong, technical platforms through research and development investments. It's the culmination of our efforts since we pivoted to become a pure play human capital management provider when we sold the space business. We now feature Equifax as a new partner in our ecosystem. We're proud to have them on board and excited to bring new solutions to the marketplace. Another good example is the launch of our new treasury management system to bring automation to our clients. This solution geared for human capital management providers and larger enterprises to enable them to operate more efficiently and reduce risk. It automates the reconciliation of employers' daily cash positions and provides real-time visibility into this critical piece of the payroll cycle. Important aspect of our technology strategy is to move from the legacy transactional way the payroll industry has operated to a world where we provide new tools for employees to connect and run their lives. We are creating new employee solutions through initiatives like earned wage access, electronic wallets, and more. Our efforts in this area are supported by our API-first strategy. That means our APIs have now been hardened so our products can be extended to other providers with new applications. Another example is our arrangement with Employee Navigator, who manages benefits, onboarding, and compliance for 60,000 companies with 10 million employees. Our integration with them enables employees to have full visibility of their benefits, compensation, and other information so they can manage their lives with secure and reliable information. We're also very hopeful about introducing earned wage access. Our solution is in the marketplace today, and we're expanding our number of vendors we have. This adds a valuable new service to our roster, moves us closer to having a direct relationship with employees and is the direction the human capital management industry needs to go. Our product strategy is all about the future positioning of Assure with its unique collection of assets to deliver to businesses and their employees unique value. This is where we think the market is going and we intend to be leaders in taking it there. We're also very proud of the achievements we made in the quarter in the areas of sales development and sales infrastructure. Our focus on delivering the right solutions and value to the market is beginning to pay off. This is evident in the 43% annual growth we achieved in our new sales performance in the first quarter. We believe this type of performance positions us well for accelerated organic growth in the second half of 2022 and into 2023. We also had sales success in our business lines. The business lines provide us with unique differentiation in the marketplace, enable us to expand our relationships, and tap into larger client segments. The area of tax filing and human resources were two of those business segments that we had real good success in the first quarter. In our tax segment, our initiatives and unique market position drove strong double-digit underlying organic revenue growth relative to prior year. We've strengthened our technology in this area and are focusing sales to differentiate our solutions from its competitors. We have seen momentum build in this business with a very impressive first quarter performance. We're excited about the long-term potential of this business line and continue to believe it will be a meaningful contributor to our revenues over time as the market comes to appreciate this unique and differentiated offering. In HR consulting, our focus and unique business model drove 6% organic growth in our revenues prior to, relative to prior year. This is a differentiator for us in the small to medium-sized business segment. It offers several digital and service options ranging from self-service, human resource support, all the way up to fully outsourced HR solutions. We comply with federal, state, and local employment laws, enable a business to replace an internal HR manager using our team of certified HR professionals at a fraction of the cost. The increasing complexity of today's labor market provides a strong underpinning for demand for our leading-edge solutions. We are excited about this opportunity we have here, and we believe we will have continued success in the near future and beyond. We're also keeping an eye on acquisition opportunities. We intend to be opportunistic, as demonstrated by the small acquisition we made in January and fully integrated by the end of the quarter. By way of update, the integration of the two resellers we acquired at the end of third quarter 2021 has gone extremely well. We're very pleased with the execution of our integration efforts and the underlying businesses continue to perform to expectation. Our proven acquisition model delivers meaningful synergies and seamless integration. We intend to repeat future successes in this area. Our commitment to develop a future state platform for our clients and to be the most trusted partner for small businesses is intact. We're in a labor environment of almost unprecedented change, From the perspectives of regulation, mobility, and talent, our innovative solutions help guide our clients through this dynamic environment so they can focus on their core business. Now, I would like to hand off to John to discuss our financial results in more detail. John? Thanks, Pat.