Qumu Corporation

Good day and welcome to Kumu's first quarter 2022 conference call. My name is Eli and I will be your operator this afternoon. Joining us is Kumu's president and CEO, Rosa Bentley, CFO Tom Kruger, and Matt Glover from Gateway Investor Relations. At this time, all participant lines are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. If you require any further assistance, please press star 0. I would now like to turn the call over to Matt Glover. Sir, you may begin.

Thanks, Operator, and good afternoon, everyone. After the market closed today, Kumu issued a press release announcing its financial results for the first quarter ended March 31, 2022. a copy of which is available on the investor relations section of the company's website. During today's call, a manager will make certain statements with respect to the company's expected financial results, the company's go-to-market strategy, and efforts designed to increase the company's traction and penetration with customers. These statements are forward-looking and involve a number of risks and uncertainties that could cause actual results to differ materially. Please note that these forward-looking statements reflect management's opinions only as of the date of this call. and the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Please refer to Kumu's SEC filings, specifically its Form 10Q, Financial Results Press Release, for a more detailed description of risk factors that may affect the company's results. During the call today, management will discuss adjusted EBITDA, a non-GAAP financial measure. In the company's press release and filings with the SEC, both of which are posted on the company's website, you will find additional disclosures regarding this non-GAAP measure, including a reconciliation of this measure with its comparable GAAP measure. Non-GAAP financial measures are not intended to be considered in isolation from, a substitute for, or superior to GAAP results. The company encourages you to consider all measures when analyzing its performance. I'd like to remind everyone that this call is being recorded and will be made available for replay via link available in the investor relations section of Kumu's website. Now, I'd like to turn the call over to Kumu's president and CEO, Rose Bentley. Rose?

Thank you, Matt, and good afternoon, everyone, and thank you for joining us today. It's great to be here with you as Kumu's new president and CEO. As many of you know, I joined Kumu as chief operations officer in March of 2021. Since joining the company, I have played a key role in the development and execution of Kumu's strategic roadmap, which emphasizes growing our cloud business, leveraging innovative technology, and scaling our SaaS revenue base. As COO, I spearheaded Kumu's partner-led sales motions and customer experience efforts, which continue to be a critical element in our ability to secure new logos, deepen customer relationships, and drive higher retention and cloud conversions. My appointment will ensure absolute continuity in leadership and execution of our strategy and is a direct reflection of the succession plan we have had in place for several months. For those of you that I haven't had the pleasure of meeting, prior to Kumu, I held leadership roles at several SAS technology companies. Most recently, I led operations and strategy for Teradata, a $1.8 billion revenue analytics company, where I played an important part of the company's successful transition from a perpetual licensed business model to a subscription-based, cloud-first revenue model. Teradata's transition was in many ways similar to the transformation currently underway here at Kumu and has given me a playbook to reference along this journey. Looking ahead, I appreciate the opportunity to lead Kumu into the next stage of development. I also look forward to building stronger relationships with our existing partners and customers, as well as making new connections with our investors and other stakeholders over the coming months. Switching gears to our most recent performance, During the first quarter, we landed several new wins and customer expansions, both of which support our view that Kuma's transformation is well underway. Our partner-led sales motions are working, demonstrated by the fact that 75% of our wins in Q1 were through channel partners, including Collective, BT, and Socialize. The traction we realized also demonstrates our execution against strategy around customers, product adoption, innovation, and partners. Our performance is now also translating into growing SaaS metrics and KPIs. As we've mentioned previously, our team is committed to driving cloud business and scaling our SaaS revenue base. We expect this trend to continue in 2022 and beyond. Highlighting our ongoing success is the 15% year-over-year SaaS revenue growth we generated in the first quarter, bringing our total SaaS revenue as a percentage of total revenue to 54%. up from 46 in the prior quarter and 40 percent in Q1 of last year. On top of this, our SAS revenue as a percentage of reoccurring revenue continues to grow, up to 60 percent in Q1 compared to 56 percent in the prior quarter and 46 percent in Q1 of last year. Additionally, our SAS annual reoccurring revenue, or ARR, increased 10 percent year over year to a record 13 million. Our encouraging SAS and reoccurring revenue growth is supported by our solid balance sheet, including 15.5 million of cash, a level that provides significant runway to execute our strategy. In addition to diligently managing our cash, the leadership team and I are continually looking for areas to optimize costs and drive efficiency. I'll now turn it over to our CFO, Tom, to provide more detail on our Q1 financial performance. Tom?