Information Services Group, Inc.

And ladies and gentlemen, please stand by. Good day and welcome to the Information Services Group fourth quarter 2021 results conference call. Today's conference is being recorded and a replay will be available on ISG's website within 24 hours. At this time for opening remarks and introductions, I would like to turn the conference over to Mr. Barry Holt. Please go ahead, sir.

Thank you, operator. Hello and good morning. My name is Barry Holt. I'm a senior communications executive at ISG. I'd like to welcome everyone to ISG's fourth quarter conference call. I'm joined today by Michael Connors, Chairman and Chief Executive Officer, and Bert Alfonso, Executive Vice President and Chief Financial Officer. Before we begin, I'd like to read a forward-looking statement. It is important to note that this communication may contain forward-looking statements which represent the current expectations and beliefs of the management of ISG concerning future events and their potential effects. These statements are not guarantees of future results and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated. For a more detailed listing of the risks and other factors that could affect future results, please refer to the forward-looking statement contained on our Form 8K that was furnished last night to the SEC and the risk factor section in ISG's Form 10K covering full-year results. You should also read ISG's annual report on Form 10K and any other relevant documents, including any amendments or supplements to these documents, filed with the SEC. You'll be able to obtain free copies of any of ISG's SEC filings on either ISG's website at www.isg-1.com or the SEC's website at www.sec.gov. ISG undertakes no obligation to update or revise any forward-looking statement to reflect subsequent events or circumstances. During this call, we will discuss certain non-GAAP financial measures, which ISG believes improves the comparability of the company's financial results between periods and provides for greater transparency of key measures used to evaluate the company's performance. The non-GAAP measures, which we will touch upon today, are adjusted EBITDA, adjusted net earnings, and the presentation of selected financial data on a constant currency basis. Non-GAAP measures are provided as additional information and should not be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. For the reconciliation of non-GAAP measures presented to the most closely applicable GAAP measure, please refer to our current report on Form 8 , which was filed last night with the SEC. And now, I'd like to turn the call over to Michael Connors, who will be followed by Bert Alfonso. Mike?

Thank you, Barry, and good morning, everyone. Today I will review our record fourth quarter and full-year results, our continuing business momentum in 2022, and our outlook for the first quarter. ISG had an outstanding fourth quarter, capping off a historic 2021, our best year ever. We generated record Q4 revenues of $70 million and ended the year with record full-year revenues of $278 million. We continue to expand our recurring revenues in Q4 up 14% from last year to $24 million, bringing our full-year total to $93 million, up more than 11%, and well on our way to our 2022 year-end target of $100 million. We delivered record Q4 adjusted EBITDA of $10 million, up 11% from the prior year, with an EBITDA margin of 15%, up nearly 100 basis points. For the full year, our adjusted EBITDA reached $39 million, up 37%, with an EBITDA margin of 14%, up 250 basis points. We ended the year with a cash balance of $48 million, up 9%, and a net debt to EBITDA ratio under one. From a client perspective, we served a record 853 clients in 2021, up 13%. Of that total, 270 were brand new to ISG, an increase of 20% year over year, a healthy sign for a growing business. Coming off our record year, we have entered 2022 in excellent position to extend our business momentum. Demand for digital continues. More work is moving to the cloud to power applications and optimize customer and employee experience. Cybersecurity is no longer just the concern of the IT department. It is being discussed at the board level amid growing cyber threats. We expect M&A activity to increase in 2022, and that will drive demand for cost optimization and rationalization of technology, both sweet spots for ISG. Companies are in continuous transformation mode and have ongoing and evolving digital needs across the enterprise. But putting it all together is complicated. Clients need a trusted partner like ISG to make sure their technology and people are integrated and working together to achieve business goals. We are focused on all key areas that matter to our clients. Cybersecurity, customer experience, digital workplace, data analytics, app modernization, digital engineering, and enterprise cloud. Our comprehensive portfolio of products and services is unmatched in our industry. And our solution-centric ISG Next operating model is designed to deliver the most value to our clients and to do so with greater agility and efficiency. The result is growing revenues, more clients, and higher profitability, and ultimately more value for our shareholders. Our long-term growth objectives remain. High single-digit revenue growth and EBITDA at one and a half times our top-line growth as we leverage our business model for growing profitability. As always, we strive to exceed these targets, just as we did in 2021. Now, turning to our regions, the Americas delivered $39 million of revenue in the quarter, up 3% versus the prior year. For the full year, revenues were $160 million, up 13%. During the quarter, we saw double-digit growth in our consumer services, banking, and media industry verticals. Among our services, research, automation, and GovernX were also up double digits. Key client engagements during the fourth quarter included Caesars Entertainment, USAA, Exelon, and Humana. Among our notable wins, ISG is supporting a major cruise line with our GovernX vendor management solution. The client is now gaining greater visibility into its spend with nearly 250 vendors and has saved millions of dollars as a result. This is especially important at a time when the cruise industry is looking to recover after a difficult period during the pandemic. ISG also is supporting a major U.S. utility as it separates into two publicly traded companies. We are advising the company on a range of technology and operations decisions as it divides its technology estate and looks to optimize its cost base for both entities going forward. Turning to Europe, our Q4 revenues of $24 million were up 3% versus the prior year and 6% in constant currency. For the full year, revenues were up 4%. For Q4, Europe delivered double-digit revenue growth in our research, network, and automation and in our public sector, insurance, media, and banking industry verticals. Key client engagements in Europe in the fourth quarter included Munich Re, Volkswagen, Deutsche Bank, and Italy's Ministry of the Interior. During the fourth quarter, ISG was awarded a $1.5 million engagement with a major bank in the Nordics region to support one of the industry's largest digital transformation efforts. We also expanded our work with a major German insurance and financial services company to help them navigate a complete revamp of their digital approach, including tech modernization, workplace transformation, cybersecurity, and software cost optimization. And in the transportation sector, we are helping a major international shipping company establish an offshore delivery center in India to support the client's global IT operations. Now turning to Asia Pacific. This region had a record-setting Q4 performance with revenues of $7 million, up 27% versus the prior year, driven by growth in banking, insurance, media, and the public sector industry verticals. For the year, Asia Pacific had record revenues of $27.4 million, up 32%. Key clients in the quarter included the Australian Taxation Office, Australian Ministry of Defense, Bupa Australia, a health insurer, Rio Tinto, and Suncorp. We continue to grow our business in the region with a leading multinational engineering services company focused on the energy industry. ISG is helping the client leverage technology to transform its global business services. across all major functional areas of the company from finance to HR to optimize performance and lower costs. Now moving to our dividend. Shareholders of record at the close of business on March 21st will receive a first quarter cash dividend of three cents per share of common stock, payable on April 6th, part of our ongoing efforts to enhance shareholder value. Now let me turn to guidance. The pandemic continues to have lingering effects on several client industries and in certain markets in Europe where vaccination rates and COVID restrictions have been uneven. However, with signs of improvement and with more restrictions being lifted, we are hopeful that we are entering the endemic phase of the virus and we'll see these markets rebound during the course of 2022. As for the crisis in Ukraine, we stand united with Ukrainian people in their struggle to remain a free and sovereign state. Ukraine has become a major hub for technology services, particularly software engineering and development. Those activities, as you would imagine, are being moved elsewhere. Although ISG has no operations or people in Ukraine, a number of our enterprise clients rely on providers either located in or obtaining services from Ukraine. As we did with the pandemic, we are committed to helping them adjust their plans and overcome any potential challenges. Overall, we think the situation Ukraine, if contained, will have only a small impact on the global market for technology and business services. And it is possible it could spur companies to invest even more in cybersecurity and other digital initiatives. So balancing digital demand with these macro factors, for the first quarter, we are targeting revenues of between $69 and $71 million, including a negative FX impact of approximately 200 basis points, principally from Europe, and adjusted EBITDA between $9 and $10 million. Looking beyond Q1, we expect growing momentum in our digital revenues as we move through the rest of the year. So with that, let me turn the call over to Bert, who will summarize our financial results. Bert?