Paya Holdings Inc.

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

Thank you, operator. And good morning, and welcome to the PIA fourth 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 financial guidance, the growth of PIA's 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 factor 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 the call, we will discuss certain non-GAAP measures of our performance. GAAP to non-GAAP financial reconciliations and supplemental financial information are provided in the earnings press release in the 8-K filed with the SEC. This call is also available via webcast. You can find all the information I have just described on the investor relations section of PIA's website. Please note that we have posted a supplemental fourth quarter 2020 presentation to the investor relations 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 your questions. With that, let me turn the call over to Jeff.

Thank you, Matt, and good morning, everyone. Thank you for joining us today as we discuss our fourth quarter and full year 2020 financial results, which continue to highlight the powerful combination of integrated payments in our high growth vertical end markets. I'm proud of what we've accomplished, including the demonstrated resilient nature of our business, despite the impacts faced this past year from the COVID-19 pandemic. These accomplishments position us well as we focus on our growth initiatives to further expand our business in 2021 and beyond. Let's begin with a few highlights. Payment volume grew 15.7% in the fourth quarter to $9.2 billion, a notable acceleration as we exited the year as our proprietary ACH solution, which was up 41% year-over-year, continues to scale. Revenue was up nearly 6% to $54 million, and adjusted EBITDA grew 17.6% to $14.7 million. Additionally, adjusted EBITDA margins expanded 280 basis points year-over-year to 27.2%. This growth and our momentum leading into 2021 is driven by our five key pillars as we seek to extend our market leadership in middle market integrated payments. As a reminder, these pillars are, one, fundamental execution across our business, Two, penetrating the installed base of our exceptional roster of software partners. Three, driving new software partnerships. Four, leveraging our proprietary ACH solution. And five, pursuing strategic M&A. First, fundamental execution in the business. At the onset of the pandemic, we were able to seamlessly transition our workforce from the office to work from home, by leveraging our substantial technology investments and strong operational discipline, which included rigorous pre-pandemic planning and testing. We delivered innovative new products and offerings, such as enhanced digital invoicing and quick pay capabilities, continued expansion of our suite of ERP integrations, and additional reporting and self-service portal capabilities that allow our software partners and clients to easily adapt to a world where omni-channel payments became more necessary than ever. As you've heard me say many times, the quality of the end-to-end experience of capabilities is just as important as the capabilities themselves, and this is a key differentiator for Paya, and we weave it into everything we deliver. Combined with new solutions, we provided excellent service and support to our clients throughout the year while delivering the financial results we just touched on and which Glenn will cover in more detail shortly. Second, penetrating the installed base of our software partners. We had record new boardings with our largest ISV partners with notable strength in our B2B and nonprofit verticals. Additionally, in the fourth quarter, we saw growing production across our partners, particularly in the integrated solution segment. Our key partners are in attractive end markets, and there remains significant white space in their installed base of software clients to enable payments and drive further growth. Our next key pillar is driving new software partnerships. We had some nice wins recently with companies such as Central Square, Agent 511, and RevIO. The RevIO partnership is a great example of how our differentiated offering is resonating in the markets we serve. Specifically, as a premier SaaS-based billing platform in the B2B vertical, RevIO was looking for a partner who could provide a tailored integrated payments experience, collaborative go-to-market strategy, and superior service and support, which allows RevIO to focus on their core software offerings. Having these capabilities as a core element of our offerings is a key component of what differentiates Paya in the market. Next is leveraging our proprietary ACH solution. We posted record ACH volumes in the quarter, which were up 41% over the prior year and up 21% sequentially. This was partly driven by a large ACH win, in fact, the largest ACH win in PIA's history, with a conversion that was completed in the latter part of the fourth quarter. Furthermore, we saw record attach rates of ACH in new partnerships, creating meaningful cross-sell opportunities. Offering a payment-agnostic unified experience with a fixed point of integration is a powerful differentiator, and we are confident that this will provide continued growth opportunities for PIA. Lastly, we're committed to executing strategic M&A. Our approach to M&A is the same as our approach to our organic channels. We manage a pipeline of strategic opportunities in attractive end markets and support this with a dedicated and experienced team. Furthermore, we pride ourselves on having a deliberate and focused integration process post-acquisition. In October, we closed an exciting new acquisition in the municipal court space called the Payments Group. This is highly strategic as it expands our existing government end market presence into new geographies, broadens our addressable market into smaller municipalities, which are underserved by incumbent providers, and rounds out our municipal suite by adding court payments and other departments to our utilities tax capabilities. As most of you know, this is a high growth end market driven by increased adoption of electronic payments. While we don't need M&A to drive pious growth, we are excited about our robust pipeline and ability to continue to execute strategic M&A. With that, I'll turn the call over to Glenn to walk you through the financials in more detail, as well as cover our outlook for 2021. Glenn?