i3 Verticals, Inc.

Good day, everyone, and welcome to the I3 Vertical's first quarter 2023 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 313-2661. The replay may also be accessed for 30 days, the company's website. At this time for opening remarks, I'd like to turn the floor over to Jeff Smith, SVP of Finance. Please go ahead, sir.

Good morning, and welcome to the first quarter 2023 conference call for I3 Verticals. Joining me on this call are Greg Daly, our Chairman and CEO, Clay Woodson, our CFO, and Rick 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 important factors, among others, set forth on a company's earnings release, and reports that are filed or furnished to the SEC. Consequently, actual operations and results may differ materially from those discussed in the forward-looking statements. Finally, the 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 applicable law. I now turn the call over to the company's Chairman and CEO, Greg Daley. Thanks Jeff and good morning to all of you.

We're excited to present to you our results for the first quarter fiscal year 23. To kick things off, we set new records in revenue and adjusted EBITDA and you will be pleased with our results of our focus on recurring revenue and adjusted EBITDA margin. Here today, adjusted EBITDA grew 29% from Q1 fiscal year 22 to Q1 of fiscal year 23. The last several quarters, you've heard me discuss recurring revenue, which has been above 80%. It was 84% this quarter, and you will notice that we had a lighter quarter of software license deliveries as multiple projects pushed into Q2. The backlog of software sales has never been deeper, but license revenue which does not recur, can fluctuate. In a quarter like this one, the power of our model is reinforced. SaaS, software transaction-based revenue, payments, and other recurring revenue helped us achieve consistent quality earnings. This quarter includes our first results of the operation of Kelty. We're pleased with their results, but even more excited about what is to come. Celtic is already going to market with our 2021 acquisition, DIS, who has a much more robust sales function than Celtic could ever avail itself of. Celtic and DIS have complimentary best of class products for transportation departments at the state level. And we can't wait to expand our already significant footprint across the United States and Canada. When we talk about acquisition targets with untapped recurring revenue opportunities, Celtic is a fantastic example. Earlier this quarter, we announced an acquisition of AccuFund, a strategic product for public sector. We hosted an internal sales conference in Nashville this week, and our sales team was ecstatic about how this product can be cross-sold in the public sector and the education verticals. Our teams are off to a great start. Now I'll turn the call over to Clay, and he'll provide you more details on our first quarter financial performance. Following Clay's comments, Rick will provide an update on some role changes and addressed M&A, and then we'll open up the call for questions.