Paya Holdings Inc.

Good day, ladies and gentlemen, and welcome to the PIA Holdings Inc. Third Quarter 2020 Earnings Conference Call. At this time, all participants are on a listen-only mode. If anyone should require operator assistance, please press star then zero on your telephone. A question and answer session will follow the formal presentation. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Mr. Matt Humphreys, Head of Investor Relations at PIA. You may begin.

Thanks, and good morning, and welcome to the PIA Third Quarter 2020 Earnings Conference Call. Before we begin, let me remind everyone that today's discussion will contain forward-looking statements based on our current assumptions, expectations, and beliefs, including our 2020 financial guidance, the growth of Pius Business, our objectives and business strategies, as well as other forward-looking statements. Please refer to the disclosure at the end of the company's earnings press release and Form 8-K filed with the SEC today for information about forward-looking statements that will be made or discussed on this call. All statements made today reflect our current expectations only, and we undertake no obligation to update any statements to reflect the events that will occur after this call. You can learn more about the specific risk factors that could cause our actual results to differ materially from today's discussion in the risk factors section of the company's final prospectus and definitive proxy statement filed with the SEC on September 23rd, 2020, and in subsequent periodic reports that the company files with the SEC. Also during this call, we will discuss certain non-GAAP measures of our performance. GAAP to non-GAAP financial reconciliation and supplemental financial information are provided in the earnings press release and the 8-K filed with the SEC. This call is also available via webcast. You can find all the information I have just described in the investor relations section of PIA's website. Please note, we also have posted a supplemental third quarter 2020 presentation and historical quarterly financial statement supplement to the IR section of our website. Joining us on the call today are CEO Jeff Hack and CFO Glenn Renzulli. Following their prepared remarks, we will open the call to questions. With that, let me turn the call over to Jeff.

Thank you, Matt, and good morning, everyone. And thank you for joining us to discuss our third quarter results. To begin, I'd like to properly welcome and introduce Matt Humphries to the PIA team. Matt brings with him a wealth of experience from his career in investor relations, equity research, and, of course, as a Marine Corps aviator. I'm excited to have him here, and the timing of his arrival one week prior to our first earnings call as a public company has been better. I'm confident he'll cultivate meaningful relationships with our investors and continue to elevate our broader investor relations efforts. Turning to a discussion of our financial performance, we're pleased to report solid third-quarter financial results which reflect the strength of our business model and the continued execution of our growth strategy. I'll begin with a few highlights from the third quarter. Third quarter adjusted EBITDA was $13.5 million, up 10.7 percent from the same period last year. Payment volume of $8.7 billion was up 7.6 percent year over year. We have rebounded nicely from our COVID-driven April low. Despite the impacts of the pandemic, Our revenue increased 2.4% year-over-year, and our adjusted EBITDA margin grew by 200 basis points. Prudent expense discipline, appropriate during these unusual times, led to lower operating expenses versus the prior year, contributing to our strong results. Despite this, we continue to prioritize investments into sales, marketing, and solutions in support of our growth objectives. Glenn will review our results later in the call. But since this is our first quarterly earnings call, I think it would be helpful to briefly review our business and growth strategies. Pi is a leading independent integrated payments platform serving software partners in attractive middle market verticals such as B2B goods and services, healthcare, nonprofit, government and utilities, and education. These verticals are all high growth and under-penetrated for integrated payments. Our quarterly volume trends during COVID clearly demonstrate the powerful combination of software and payments in very attractive verticals. Our position is further demonstrated by some exceptional capabilities, including an average transaction size over $200, 85% of our volume is card not present, and we are the sixth largest in U.S. card not present volume based on Nielsen rankings. We provide an end-to-end commerce experience to our software partners, from order management to invoicing to receipt of goods to payment and then post that to business management and accounting systems. These solutions enrich the value of the entire software suite, generating very material incremental economics for our software partners and improve cash flow and expense savings for end customers. The TAM here, over $1 trillion of volume, comes from a combination of replacing physical invoice and physical check, as well as electronic payments, that are not yet integrated into primary business management software. Among the things that differentiate PIA are PIA Connect, a modern technology suite that tailors the experience to the unique needs of each vertical. We have a long and difficult to replicate history of providing technologically and operationally integrated commerce solutions for modern business software. We provide enterprise-grade solutions, technology and support to our middle market partners, We have a powerful model for helping software partners maximize penetration of integrated payments within their installed base. And finally, we've combined all payment methods, card, ACH, and check, into a unified platform, which is particularly attractive in our key verticals. Our growth plan focuses on five key areas. First, over the past few years, we have invested in every aspect of our business, from technology to sales to marketing to support, and produce positive operating leverage every step of the way. We have assembled an outstanding and experienced leadership team that will continue to execute against our growth objectives. Our investments and the attractive verticals we serve have enabled us to weather the COVID-19 storm better than other industry players, rebound quickly from a relatively modest Q2 decline, and enable us to accelerate our growth going forward. Second, penetrating the installed base of existing partners is a powerful tailwind in our business. We had record new onboardings with large ISVs in the B2B and nonprofit verticals in Q3. Third, we are signing more new software partnerships, including some of the largest in our history. New wins in Q3 include Sycamore Education and healthcare software provider CoverMe, among others. Fourth, as previously mentioned, we provide the complete end-to-end experience to ACH and combination card ACH acceptors in markets that previously focused solely on card payments. We generated record attachment rates of ACH to new software partnerships in Q3, which significantly widens our addressable market. And last, strategic M&A is a compelling complement to our organic growth plans. We manage this just as we do other sales channels by cultivating a pipeline of attractive opportunities. Once acquired, we have designed repeatable processes to integrate and accelerate the organic growth of the acquired businesses. We have executed well against our key growth initiatives, including favorable progress implementing significant new CARD and ACH partnerships, key new partnerships in the education and healthcare verticals, and our acquisition of the payment group, which expands our market position and capabilities in serving local municipalities, which closed October 1st. We are very excited about the payment group as it shares very similar characteristics to prior acquisitions that we have completed and where we were able to accelerate top line growth as well as strengthening our capabilities and footprint in the very attractive municipal segment. The opportunities in front of us are vast, and with our modern solutions and competitive positioning, we're excited about the future and the ability to generate meaningful shareholder value over the long term. Finally, I want to talk about our recent combination with FinTech Acquisition Corp. On October 16th, we completed the combination and our common stock began trading on the NASDAQ under the ticker symbol PIA on October 19th. In connection with the business combination, we expanded our board of directors to include several new independent directors with decades of experience and who have already proven to be very valuable to us. We believe that operating as a public company will enhance Paya's visibility and public profile, which ultimately enables us to further grow and scale our business. Also, I want to reiterate how grateful we are to our team members and their dedication and focus throughout this process. And to our new shareholders, I want to welcome you and thank you for your support. Now, I'm going to call over to Glenn to take you through the financials in more detail.