i3 Verticals, Inc.

Good day, everyone, and welcome to the I3 Vertical's first quarter 2022 earnings conference call. Today's call is being recorded, and a replay will be available starting today through February 16th. The number for the replay is 877-344-7529, and the code is 6617684. The replay may also be accessed for 30 days at the company's website. At this time, for opening remarks, I would like to turn the call over to Jeff Smith, VP of Finance. Please go ahead.

Good morning, everyone, and welcome to the first quarter 2022 conference call for I3 Verticals. Joining me on this call are Greg Daly, our chairman and CEO, Clay Woodson, our CFO, and Rich Stanford, our president. To the extent any non-GAAP financial measure is discussed in today's call, you will also find a reconciliation to the most directly comparable GAAP financial measure by reviewing yesterday's earnings release. It is the company's intent to provide non-GAAP financial information to enhance understanding of its consolidated GAAP financial information. This non-GAAP financial information should be considered by each individual in addition to, but not instead of, the GAAP financial statements. This conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements, among others, regarding the company's expected financial and operating performance. For this purpose, any statements made during this call that are not statements of historical fact may be deemed to be forward-looking statements. You are hereby cautioned that these forward-looking statements may be affected by the important factors among others, set forth in the company's earnings release and reports that are filed or furnished to the SEC. Consequently, actual operations and results may differ materially from the results discussed in the forward-looking statements. Finally, information shared on this call is valid as of today's date, and the company undertakes no obligation to update it, except as may be required under the applicable law. I now turn the call over to the company's chairman and CEO, Greg Daly.

Thanks, Jeff, and good morning to all of you. We're pleased with our first quarter 2022 results, and we're confident in our ability to produce strong results for the rest of the year. We exited fiscal year 21 with a great momentum, and this momentum has continued today, driven by our continued growth in proprietary software and payment segments. We set quarterly records in revenue, software and related services revenue, and adjusted EBITDA. We are a software-led company and we are delivering on that strategy. To that end, our first quarter revenue increased 66% over prior year and adjusted EBITDA increased 72%. Our software and related services revenue increased 116% in the first quarter of fiscal year from the first quarter of fiscal year 22. Our software and related services revenue grew 49% of our total revenue in the quarter, up from 38% in the first quarter of fiscal year 21, and surpassed our payment revenue for the first time. To further emphasize our continued software transformation, I want to highlight that our annualized recurring revenue grew 53% year over year. And our ARR is $240 million. The first quarter of fiscal year 22 included a full quarter results from our October 1 healthcare acquisition. We're excited about this acquisition, what this acquisition has brought to the table in healthcare revenue cycle management. We've already seen multiple cross-sell opportunities and look forward to the future of this business. We announced the public sector deal acquisition on January 4th. This acquisition did not contribute to the past quarter from a revenue or adjusted EBITDA perspective. It operates in the Southeast and the Mid-Atlantic regions and brings additional state level contracts in our public sector vertical. We're excited about this new acquisitions fit within our team and our strategy. Beyond this recent acquisition, we saw several new state markets open in our public sector teams. These acquisition, these expansion opportunities include the state level engagements, local municipality and state court level customers. Many of our software applications are capable of crossing state borders and we're seeing that trend continue. Rick will describe this expansion in greater detail later. On a general market note, we have noticed an increase in RFP activity within the public sector in fiscal year 22. This is a positive trend, and we like our win rate. Our capabilities within public sector market continues to accelerate, and this vertical will continue to drive the growth at I3 as we move forward. Now I'll turn the call over to Clay, and he'll provide you more details on our first quarter financial performance, and then following Clay's comments, Rick's will give us an M&A update and then we'll open the call up for questions.