BTRS Holdings Inc.

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to Bill Trust's fourth quarter 2021 earnings conference call. As a reminder, this conference call is being recorded. I'd now like to turn the call over to John T. Williams, Head of Investor Relations, to begin.

Thank you, Operator. Before we begin, I'll remind you that today's call may contain forward-looking statements, including our guidance for the full year of 2022, our expectations regarding the continued growth of our software and payments business, potential for margin expansion, net dollar retention rate, and our medium and long-term targets. These forward-looking statements are subject to numerous risks and uncertainties, including those set forth in our most recent quarterly report on Form 10-Q, filed with the Securities and Exchange Commission on November 10, 2021, and in subsequent reports that we file with the Securities and Exchange Commission from time to time, including our annual report on Form 10-K for the year ended December 31, 2021, and available on 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 intend 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 our website. Hosting today's call are Flint Lane, Bill Trust's founder and chief executive officer, and Mark Schiffke, Bill Trust's chief financial officer. I'll now turn the call over to Flint to begin.

Thanks, John, and thank you, everyone, for joining the call today. We recently wrapped up our first full year as a public company, and I'm excited to share with you our outstanding fourth quarter and full year results. We continue to execute on the strategic direction that we previously laid out with investors. I'll start by covering some of the operational metrics and then update you on some recent business highlights. I'll then hand it off to Mark for more detail on our performance and updated 2022 guidance. Our software and payment segment again exceeded expectations, growing 25% year-over-year in the fourth quarter and 28% year-over-year for fiscal 2021. We believe our software and payments business will continue to grow at this pace for some time, which is something Mark will discuss in detail during his remarks. We again posted strong adjusted gross margins at 74.7% in the fourth quarter and 73.1% for the full year, an increase of 290 basis points versus fourth quarter 2021. We continue to believe margins will trend higher over time as our customers shift to digital from print and adopt more of our software and payment solutions. Total payment volume, or TPV, which is the dollar value of customer payment transactions that we process on our platform, increased 45.3% year-over-year to $22.9 billion versus $15.7 billion in the year-ago quarter. TPV through the Business Payments Network, or BPN TPV, increased 98.7% year-over-year in Q4. The credit card component of BPN TPV grew to $2.2 billion in Q4 and was up 52.1% year-over-year. Direct card revenue, or DCR, which is the revenue we get from processing credit card payments through all of our solutions, was $4.7 million, or 63.9% year-over-year growth and a quarterly yield of 5.9 basis points. Direct card revenue growth continues to exceed card volume growth, and we still expect yield will grow into the teens over the long term as transactions move to our payback and we capture a larger share of revenue. Net dollar retention in our software and payment segment increased by 10 percentage points from 110% to 120%. As you know, a large B2C customer exited last year, so we would expect to see NDR soften a bit this year to around 115% and then return to its prior trajectory thereafter. Now let's cover some recent business highlights. We made two executive hires to lead key segments of the business. Kelly Negro joined in November as our Chief Marketing Officer. Kelly most recently worked as the CMO of Vendavo and brings significant experience in driving growth through both direct and channel businesses. Amy Killeen joined in January as our new Chief Legal Officer. Amy previously held a similar role at Cardtronics and brings considerable SaaS, FinTech, M&A, and international experience that will help guide Biltrust global expansion. Our international expansion continues with our acquisition of Order2Cash, a European B2B order-to-cash cycle platform provider with over 200 customers, connections to over 70 B2B and B2G invoicing networks, and roughly $10 million in trailing 12-month net revenue. This is our second acquisition since going public and 10th overall and continues our global expansion into Europe, where Order2Cash is well-positioned for both cross-sell and further expansion of our business payments network. Our integration team is already hard at work, and our M&A team continues to scout out additional opportunities both inside and outside the U.S. We had a great end to 2021, finishing our best sales bookings year ever. This included signing the single biggest new customer deal in BillTrust history. This large equipment company receives approximately 10,000 monthly virtual credit card payments that require significant manual labor, which is slow, expensive, and error-prone. By implementing Biltrust's BPN Digital Lockbox solution, this customer will be able to digitize over $500 million in annual inbound payments and generate significant cost savings. We're excited to recently enter into a partnership with Coupa Software, locking in yet another large AP provider as we expand both sides of BPN, our B2B payments network. We believe that Coupa recognizes, much like most of the other AP players out there, that one of the keys to payments growth is interoperability between software providers. In addition, Coupa is also now a BillTrust referral partner because they recognize that many of the suppliers that they work with need BillTrust solutions. Finally, we announced a significant upgrade to our cash application solution, Cash App 10.0, that now incorporates the BPN digital lockbox and improved machine learning technology. Suppliers very much want to increase digital payments, but just because they are digital doesn't mean that they're easy to process, which has hampered adoption. A new approach was required, and we believe combining Cash App with the BPN Digital Lockbox gives Cash App a significant competitive advantage in the market. I'd like to take a moment to talk about the differences between automation and digitization. Check processing is a great example of something that has seen a high degree of automation in the United States. Instead of paper checks being sent to a business, they're often mailed to a PO box at a bank, which is called the Check Lockbox. Envelopes are opened with automated equipment, converted to images with high-speed scanners, and then optical character recognition technology is used to extract the important information. It is a highly automated process that insulates suppliers from handling paper at a reasonably low cost. But there is something better than automation, and that's not having to automate in the first place because the paper check is eliminated. Paper checks are slow because they are sent via U.S. mail. Paper checks are not environmentally friendly. Those things do not change no matter how much automation you throw at it. The combination of Biltrust online billing solutions and the BPM digital lockbox allow our customers to drive digitization, which is faster, more cost-effective, and drives higher customer satisfaction both for our customers and our customers' customers. 2021 was a year of fantastic progress for Biltrust. Business progress as we exceeded our revenue and margin forecast throughout the year and are entering 2022 with significant momentum. Strategic process as we continue to execute against our plan and invest for growth. And organizational progress as we continue to add key contributors and functions across the business to guide us through the next phase of our growth. Before we move ahead to 2022, I'd like to take a quick look back at 2021 and how we performed against the commitments we laid out when we went public a little over a year ago. As the CEO, I'm happy with our performance. We've kept our promises. We beat our internal expectations and raised guidance consistently throughout the year. We are seeing the benefits of our investment in sales and marketing to support our long-term growth. Our product and technology investments have driven new business opportunities. We've grown payments significantly, both for new and existing customers. We've expanded our partnership channel and significantly enhanced our distribution. We successfully leveraged our strong balance sheet to pursue M&A and establish an international presence, completing the acquisition of Belgium-based iController in October and Netherlands-based Order to Cash in February. We retired all of our outstanding warrants, putting the last remnants of our SPAC transactions safely in the rearview mirror. We believe the momentum created in 2021 is setting us up for an exciting 2022. First, we are better positioned than ever before to take advantage of increasingly favorable secular trends. Rising labor costs and interest rates, as well as increasing work from anywhere environments, all lead to demand for more automation and digitization to reduce costs and increase efficiency. Second, we provide our platform to an under-penetrated and sizeable addressable market, and the immediately actionable portion of that TAM for us has increased materially through our M&A activities, where we increased our existing customer base by over 30% year-over-year, created a greater cross-sell opportunity with this embedded base, and enhanced our competitive positioning to attract new logos. Finally, our differentiated solutions like the BPM Digital Lockbox are in very high demand. Successfully introducing these solutions to new logos creates a flywheel effect as we continually execute our land and expand strategy. With increasing confidence in the predictable nature of our results, we've improved our disclosures and made it easier for investors to understand our business. And while we wish our current stock price better reflected our performance, we'll continue to focus on execution and are confident that the market will eventually recognize the value we are creating and the exciting market opportunity we are focusing on. I'm incredibly excited about 2022 and the future. Our sales and marketing investments are paying off. Our channel investments are driving significant interest with bank partners. Our M&A engine is working and will continue to be a focus. We now have a meaningful base of operations in Europe to drive further global growth. Our Payfax strategy will continue to lead to high margin payments growth. And our innovative business payments network is solving B2B payments problems across the entire B2B ecosystem. 2021 was a great year, and I'm expecting even better for 2022. I'll now turn the call over to Mark to review our fourth quarter results in more detail and provide our financial outlook. Mark?