Logility Supply Chain Solutions, Inc.

Thank you for standing by. My name is Prilla, and I will be your conference operator today. At this time, I would like to welcome everyone to the WGLT Second Quarter 2025 Earnings Conference Call, online segment based on you to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press the star one again. Thank you. I would now like to turn the conference over to Vince Quingas, CFO of Legility. You may begin.

Thank you, Farilla. Good afternoon, everybody, and welcome to Legility's second quarter of fiscal 2025 earnings call. On the call with me is Alan Dow, President and CEO of Legility. Alan will provide some opening remarks, and then I'll review the numbers. But first, our safe harbor statement. This conference call may contain forward-looking statements, including statements regarding, among other things, our business strategy and growth strategy. Any such forward-looking statements speak only as of this date. These forward-looking statements are based largely on our expectations and are subject to a number of risks and uncertainties, some of which cannot be predicted or quantified and are beyond our control. Future developments and actual results could differ materially from those set forth in contemplated by or underlying these forward-looking statements. There are a number of factors that could cause actual results that differ materially from those anticipated by statements made on this call. Such factors include, but are not limited to, changes and uncertainty in general economic conditions, the growth rate of the market for our products and services, the timely availability and market acceptance of these products and services, the effect of competitive products and pricing and other competitive pressures, and the irregular and unpredictable pattern of revenues. In light of these risks and uncertainties, there can be no assurance that the forward-looking information will prove to be accurate. At this time, I'd like to turn the call over to Alan for opening remarks.

Thank you, Vince. Good afternoon, everyone, and thank you for joining us today. As many of you know, we transformed our company over the past year, divesting several non-core businesses and enhancing our corporate governance through the elimination of our dual-class structure. This all culminated in October with the rebranding of our company to align our corporate name with our globally recognized brand, Legility. As a result, we are excited to be reporting to you today as Legility for the first time. We delivered strong adjusted EBITDA and earnings from continuing operations in the second quarter, driven by our continued growth of subscription revenue. Our primary objective is to continue to drive year-over-year growth in subscriptions, which in turn fuels the recurring revenue model and opens up new expansion opportunities with those clients. So the 9% growth rate we achieved in the second quarter is in line with expectations. Overall, our revenue performance was affected by several headwinds. In particular, we had a couple of clients push out start dates on previously closed projects. delaying our ability to recognize the associated revenue and some unexpected churn that impacted short-term results. Additionally, the elongated sales cycles we have discussed during prior calls felt more pronounced this quarter, which we attribute to the emotional impact of global events like elections in the U.S., up and down inflation reports, and bloated retail inventory. We saw that the associated uncertainty caused several large transactions with new logos and existing clients to be deferred into future periods. However, in spite of the delays, we've been selected in most of these instances and are well into the final contracting phase. Our ongoing dialogue with our clients and prospects remains constructive, and we expect to still secure these opportunities in our fiscal 2025. Although our bookings were impacted by uncertainty this quarter, we're pleased to see continued momentum of our new solutions like Network Optimization, Decision Command Center, and LIA, our generative AI platform, demonstrating that clients see great value in these new capabilities, which bodes well for further uptake and our ability to leverage these solutions for new wins. We also closed a meaningful expansion deal with our existing client in Canada that had been in the works for some time. This is to a second division to deploy our platform coming on the heels of a very successful initial divisional deployment with additional expansion opportunities ahead both within these business units and to other business units. Overall, our bookings in the second quarter were heavily skewed towards existing clients, but we expect that to normalize in the coming quarters as spending restarts in the new calendar year and we close the late stage deals in our pipeline. As we head into the latter half of our fiscal year, our pipeline remains robust, continues to grow, and includes several larger transactions already in the contracting phase. Although we expect to close these deals in the coming quarters, the delay in project starts, coupled with some uncertainty in the timing of deal closures, will impact the amount of revenue from professional services that we can ultimately recognize in fiscal 2025. As a result, we are maintaining our original expectations for the most important areas of recurring revenue and adjusted EBITDA. We are revising our prior fiscal 2025 guidance for total revenue to a slightly lower level. Our guidance now calls for recurring revenue to remain between 87 and 89 million, our adjusted EBITDA to land between 15 and 16.4 million, as previously stated, and our revised total revenue range of 101 to 105 million. At this time, I'll turn the call over to Vince, who will provide the details of our financial results.