BTRS Holdings Inc.

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to Build Trust's second quarter 2021 earnings conference call. At this time, all lines have been placed on mute to prevent any background noise. Following the speaker's remarks, we will open the lines for your questions. As a reminder, this conference call is being recorded. I'd now like to turn the call over to Dara Dirks to begin.

Thank you. Before we begin, I'd like to remind you that today's call may contain forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including those set forth in our filings with the SEC and available in the Investor Relations section of our website. Actual results may differ materially from any forward-looking statements we make today. These forward-looking statements speak only as of today, and the company does not assume any obligation or intent to update them except as required by law. In addition, today's call may include non-GAAP measures. These measures should be considered as a supplement to and not a substitute for GAAP financial measures. Reconciliation to the nearest GAAP measure can be found in today's earnings release, which is available on the company's website. Hosting today's call are Flint Lane, Bill Trust founder and chief executive officer, and Mark Schiffke, Bill Trust chief financial officer. With that, I'd like to turn the call over to Flint to begin.

Thanks, Dara, and as always, thanks everybody for joining the call today. This is our third earnings report as a public company, and we're thrilled to share that we had another great quarter, both strategically and financially. We saw great performance in our core software and payments business, fueled by our investments in sales and marketing. Many of the strategic investments we've made around payments and the channel are starting to pay off. Our net revenue came in at $31.6 million, representing growth of approximately 23% year-over-year. Our software and payment segment revenue grew 27% year-over-year. This outperformance has informed our decision to once again raise our guidance for the year, which Mark will discuss in a moment. Total payment volume, or TPV, increased during the quarter by 47% year-over-year to $18.8 billion from $12.7 billion from the same period in 2020. This is an acceleration from the payment growth we saw in the first quarter of 33% year over year. Included in TPV are the payments that run through BPN, the Business Payments Network. BPN TPV increased 160% year over year in the second quarter, an acceleration from the 146% year over year growth we saw in the first quarter. The credit card component of the BPN TPV saw a volume of $1.7 billion in the quarter, which grew 123% year-over-year, and year-to-date through June exceeds $3 billion. After a strong July, we are now at an approximate $9 billion annualized run rate with BPN TPV. One of the big highlights of the second quarter was the return of BillTrust Summit. This year, we focused on the future of accounts receivable and integrated B2B payments. Like many events, Our annual summit was canceled in 2020, but we returned this year bigger and better than before. Over the course of four days, over 1,000 attendees, including CFOs, heads of finance, and shared services, participated in 52 breakout sessions and eight main stage sessions, smashing the previous attendance record. I'm pleased that investors and analysts were also able to participate and learn more about the mission we're on. During BuildTrust Summit, we announced the latest version of BPN, our open two-sided network that leverages our underlying accounts receivable platform and connects the financial services ecosystem across buyers and suppliers. BPN 4.0 is the first and only bi-directional B2B payments network, enabling invoice delivery to over 100 accounts payable portals in addition to its existing payments and remittance acceptance capabilities. We take data from customers' ERP systems and deliver it to accounts payable portals through a variety of mechanisms, including direct interfaces, APIs, and robotic process automation. This addresses a major pain point for suppliers as more and more of their buyer customers are implementing accounts payable systems that require them to do manual work around invoicing. BPN already had incredible momentum before we added this capability, and we think BPN 4.0 will be a game changer in the industry. While VPN and payments represent an enormous opportunity for BillTrust, I want to spend some time talking about the foundation of our business, our industry-leading software platform, offering customers an end-to-end solution spanning the entire order-to-cash process. Almost 10 years ago, renowned investor Mark Andresen wrote an article in the Wall Street Journal titled, Why Software is Eating the World. In that article, he talked about the major disruption software would play in just about every industry. Accounts receivable and B2B payments are no exception to what Mark wrote about. While the payments capabilities that we deliver to our customers are incredibly exciting, none of that would be possible without the software layer that sits on top of it. Credit decisioning, e-commerce, invoicing, payments, cash application, and collections are all being disrupted by software. That's a good thing because it allows knowledge workers to focus on high-value activities. It also is good for the environment as we continue to help our customers dramatically reduce their consumption of raw materials like paper. It is also good for the bottom line as transacting digitally drives significant savings for our customers. Many people wonder why so many B2B payments are still sent via US mail. Standards protocols like EDI and XML have existed for decades and haven't solved this problem. It seems pretty unlikely that an entire industry will adopt some new standard in the future to solve B2B payments. The payment infrastructure in the U.S. is well established with plenty of choices balancing speed and certainty. It also seems unlikely that there is a new payment rail that will be coming to the rescue. We believe the answer to this problem will ultimately be software. Software like our e-invoice connect solution that allows our supplier customers to review and pay their invoices through a branded web portal. Software like our business payments network that provides an interoperable framework that allows large buyers who use accounts payable systems an easy way to discover and pay suppliers. Software like our mobile deposit solution that allows our customers to arm their field personnel with an easy way to accept payment and remittance on the road. This is not simple. There are many use cases that need to be solved for. Integrating with banks, ERPs, payment gateways, and AP providers is a lot of work. We have spent almost 20 years building best-in-class software solutions that drive meaningful results for our customers. I'd like to highlight a few of them. One of the world's largest food service distributors was trying to reduce cost structure, and last year they began using our cash application software solution to automate the hundreds of thousands of payments they receive per year. They also were an early user of our mobile deposit capture solution that allows their teams to accept payments while on the road. They're now processing over $10 million per month with mobile deposit capture, which also drives higher automation rates with our cash application solution. The result of this is a savings of thousands of hours of manual labor each year. The customer was thankful for the savings and said, the efficiencies we've gained from Build Trust have been unbelievable. We are all in. This is so efficient, it is crazy. An international commercial truck dealership has been dealing with manual processes and institutional knowledge that was held by only a few key personnel related to ACH Processing. Processing ACH payments and the corresponding remittance data that is buried in emails or buyer portals is expensive and requires a fair amount of training for our customers. This customer, recognizing they needed to increase efficiencies and reduce risk, signed on with the BPN Digital Lockbox to automate their ACH payments and remittances. Since going live in March, they've already processed over $18 million in ACH remittance on nearly 2,000 payments in less than five months. Their success in managing ACH payments has motivated them to drive more of their customers to ACH, something they wouldn't have done without Biltrust. A multinational electronics company identified a major need to provide their customers a modern billing and payment experience. With Biltrust Invoice Connect solution, they enabled self-service and integrated payments across both ACH and card for their customers. On top of elevating the customer experience, Biltrust solutions are reducing card processing fees through Level 2 and Level 3 optimizations. They're getting paid quicker, these payments are easier to apply to their ERP, and they have improved the experience for their customers. Suppliers buy our solutions for many reasons, to reduce costs, to increase efficiencies, to accelerate cash, to increase compliance, and often to enhance the experience of their customers, the buyers. There are some other great accomplishments this quarter that I'd like to highlight. Pursuant to our strategic investment in the channel, we recently announced the new Biltrust Global Partner Program, which offers even more tools to promote faster growth and enable the success of our partners and their customers. The program offers its go-to-market channel partners, banks, fintechs, ERPs, industry associations, buying groups, accounts pay providers, and system integrators more opportunities and support in adding Biltrust's leading AR automation and B2B integrated payments capabilities to their portfolio. Currently, over 50 companies are participating in the program. We executed a strategic alliance agreement with Wipro, a leading global information technology consulting and business process services company. We released a new version of our collection solution that allows collectors to seamlessly accept both card and ACH payments as part of our Payments Everywhere strategy. There's clearly so much opportunity for growth and to further drive the digitization of the AR process. The opportunity is further demonstrated by an in-depth research study we recently commissioned from Paradoxes. Among the many insights generated, the research showed that there is a significant gap between accounts receivable practitioners' perception of how modern their processes are and reality. 86% rated their department as very or somewhat modernized. While over 40% of AR departments do not offer self-service capabilities, over 50% do not have real-time integrations with ERP systems, and over 60% do not have a majority of their payments or invoices as digital, with nearly 30% of payments still being cash and paper check. This research really highlights the opportunity ahead for Biltrust to help these teams maximize efficiency and leverage the most advanced cash flow acceleration and integrated payments capabilities available. With that, I'd now like to turn the call over to Mark to review our second quarter results in more detail, as well as provide an update to our financial outlook.