CYREN Ltd.

Greetings, and welcome to SIREN's first quarter 2022 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Brian Dunn, from General Counsel. Please go ahead.

Thank you, and welcome to SIREN's first quarter 2022 financial results conference call. This call is being broadcast live and can be accessed on the investor relations section of the SIREN website. Before we begin, please let me remind you that during the course of this conference call, SIREN's management may make forward-looking statements. These forward-looking statements are based on current expectations that are subject to a number of risks and certainty that may cause actual results to differ materially from expectations. These risks are outlined in the risk factor section of our SEC filings, including our annual report on Form 10-K, filed on March 24, 2022, and our quarterly report on Form 10-Q for the second quarter of 2022, filed earlier today. Any forward-looking statements should be considered in light of these risk factors. Please also note, as a safe harbor, any outlook we present today is as of today, and management does not undertake any obligation to revise any forward-looking statements in the future. Also, during the course of this conference call, we may discuss non-GAAP measures when talking about the company's performance. Reconciliations to the most directly comparable GAAP financial measures are provided in the tables in the earnings press release issued today and available on the investor relations section of our website. These financial measures are included for the benefit of investors and should be considered in addition to and not instead of GAAP measures. Joining me on today's call, we have Brett Jackson, Chief Executive Officer, and Ken Tarpey, Chief Financial Officer. With that, I will now hand the call over to Brett.

Thanks, Brian. I'd like to welcome everyone to today's call. SIREN's Q1 2022 overall revenues declined year over year, and similar to last quarter, this was primarily due to a contract reduction in our threat detection business from our largest customer, which was effective in Q2 2021 and was previously disclosed in our Q3 of 2020 10Q. It is important to note that this same customer awarded Siren a new multi-year contract in Q1 with a seven-figure total contract value as part of a new project which will include Siren's web classification service. We have consistently communicated in past calls that our anti-phishing solution, Siren Inbox Security, will be a key driver of future revenue growth for Siren and become a larger part of our revenue mix over time. I am pleased to report that Q1 was another quarter of strong ARR growth. ARR grew 111% over Q1 2021, and new and expansion customer transaction volume doubled year over year. Compared to Q4 2021, ARR grew 29%, and new and expansion customer transaction volume grew 30%. Customer satisfaction with our solution continues to remain high, with gross dollar retention of 97%. We believe our continued ARR growth and increase in customer transaction volume underscores the value that Siren Inbox Security provides enterprises who use Microsoft 365 as their corporate email platform and need a more effective solution for phishing, account takeover, business email compromise, and ransomware. Traditional email security defenses, like secure email gateways, are simply not effective dealing with these highly dynamic and targeted social engineering threats. Many customers have implemented security awareness training solutions to help educate users so that they can play a role in the fight against phishing. This is an important component of an anti-phishing strategy, but we view the user as the last line of defense. Our philosophy and approach is to identify and remove phishing, account takeover, business email compromise, and malware threats before they ever reach a user's inbox. And unlike traditional secure email gateways, Siren Inbox Security continuously scans for these threats around the clock and has proven to reduce exposure to malicious emails and reduce the operational costs associated with eradicating them. Siren introduced the Inbox Security concept to the market approximately two years ago, and we are thrilled to see a growing number of customers adopting our approach. Our anti-phishing solution remains highly differentiated and leverages SIREN's core strength and years of experience in threat detection, along with automated incident response. We go well beyond identifying phishing, account takeover, business email compromise, and malware threats. We automatically remove these threats from a customer's email system, saving IT and security staff valuable time and effort as they no longer need to manually investigate and remove suspicious emails on a frequent basis. Siren Inbox Security not only provides an effective solution to phishing and business email compromise, but also provides a real return on investment based on time and labor savings. Turning to our threat detection business, while revenues were down year over year due primarily to a contract reduction mentioned in my earlier comments, the highlight of Q1 was a spike in new and expansion bookings. This increase can be attributed to the acquisition of several new customers as well as a new multi-year contract with our largest customer that I mentioned in my earlier comments. As a result, Q1 new and expansion ARR grew 222% from Q4 2021. Additionally, in the quarter, we closed approximately 20 high-value renewals with existing threat detection services customers. Our customer success and engineering teams continue to maintain a high quality of service to ensure a high level of satisfaction among our OEM customers, and our Q1 gross dollar retention rate was 93%. With six weeks remaining in our second quarter, we have a positive outlook and are focused on achieving our plans. One final comment. After a long and distinguished career, our CFO, Ken Tarpey, will be retiring at the end of May. It has truly been a pleasure to work with Ken and have the benefit of his experience and wisdom on the SIREN executive team. On behalf of everyone at SIREN, I'd like to thank Ken for his contributions, and we wish him well in his retirement. We will be announcing Ken's replacement prior to the end of May. I will now turn the call over to Ken, who will go through the first quarter financials.