Repay Holdings Corporation

Greetings, and welcome to today's earnings conference call being hosted by Repay. With us today are John Morris, co-founder and chief executive officer, and Tim Murphy, chief financial officer. During this call, we will be making forward-looking statements about our beliefs and estimates regarding future events and results. These forward-looking statements are subject to risks and uncertainties, including those set forth in the SEC filing related to today's results and in our most recent form, 10-K Filed with the SEC. actual results might differ materially from any forward-looking statements that we may make today. The forward-looking statements speak only as of today, and we do not assume any obligation or intent to update them, except as required by law. In an effort to provide additional information to investors, today's discussion will also include references to certain non-GAAP financial measures, an explanation of those non-GAAP financial measures, as well as reconciliation of these non-GAAP measures to the nearest GAAP financial Measures can be found in our earnings release and earnings supplement, each of which are available on the company's IR site. I would now like to turn the call over to Mr. Morris. Please go ahead, sir.

Thank you, operator, and good afternoon, everyone.

Thank you for joining us today to review our fourth quarter and full year results. During the quarter, we reported card payment volume growth of 43%, total revenue growth of 50%, and gross profit growth of 57%, which included 17% organic growth. This caps off a very successful year for the company. For the full year 2021, we reported card payment volume growth of 35%, total revenue growth of 41%, and gross profit growth of 44%. Beyond financials, we had many successful business developments in 2021. Early in the year, through a concurrent common stock and convertible notes offering, we were able to secure additional capital for total gross proceeds of approximately 590 million, positioning us well for organic and inorganic opportunities. In 2021, we further expanded our offerings in our key verticals by putting some of that capital to work through acquisitions. In June, we acquired BillingTree, our largest acquisition to date, further expanding our position in healthcare, credit unions, and accounts receivable management. Also in June, we acquired Control Payables, further expanding our capabilities on the AP side in B2B. And in December, we acquired PayX, which enhances our position in the key auto loan vertical and accelerates expansion in the buy now, pay later market. We continue to invest in our integration playbook, which should help us with future M&A, The integrations from our 2021 acquisitions are going very well. Some of our investment spend in 2021 went towards organic growth opportunities. These investments focused on talent, technology, and product, which paid off with strong organic growth during the year and positions us well to achieve 20% organic gross profit growth in 2022. As for talent, during the year, we added 265-plus team members, which is an increase of approximately 60% from 2020. We've increased our sales and distribution resources, focusing both on direct sales as well as further penetrating existing referral relationships with our software partners and adding new ones. For technology, we focus on product development and integrating acquisitions. We hired internally as well as announced a strategic partnership for Protego Technologies, an Ireland-based consultancy that helps extend technology departments and developer teams with specialized talent and project management. We now have approximately 30 team members dedicated to repay in Ireland and expect to add additional technology talent through this partnership in 2022. Some of our investments around product were enhancements geared towards cross-selling our B2B solutions, which we successfully implemented in 2021. We expect to do more of this in 2022. Additional highlights for 2021 include further penetrating the credit union space, growing our customer base by nearly five times year over year, We now have over 200 credit union customers representing approximately 2.8 million members. In 2021, we added 98 new software partners, ending the year with 222 compared to 124 at the same point last year and 53 when we went public in 2019. We also further strengthened our organization from an employee and governance perspective. In 2021, great place to work, and Fortune named Repay one of the 2021 best workplaces in financial services and insurance. We expanded our board with the appointment of Eminent Rios, who is an accomplished financial services and technology executive that brings growth experience and blockchain expertise to Repay as we look to support the evolving needs of our customers and partners. We also published our inaugural corporate sustainability report highlighting our ESG efforts. Shifting to our fourth quarter highlights. Our business payments vertical, which is focused on the enormous 3.4 trillion TAM, continued to perform well during the quarter. We now have 80 plus B2B software integrations representing approximately 15 vertical end markets and have over 3,600 clients. On the AP side, we've grown our supplier network to over 110,000. We saw great success with conversion to our total pay solution. An example, one of our hospital clients was averaging close to 20% on virtual card. We have been able to increase that to almost 40% with total pay. We've had similar success in the multifamily and property management space. We also saw strength in the consumer payment side of our business in Q4 and expect the momentum to continue throughout 2022 as the need for loans increases. Our auto loan business was strong in the quarter, driven by the repayment of loans in the used car market, which is still seeing high demand and increased prices. This is a large and growing market that we are well positioned to continue to penetrate with the combined efforts of PayX and our existing foothold. On the mortgage origination side of our business, we are experiencing strong demand from originators seeking first-time payment solutions through our integration with LMA. On the mortgage servicing side, there are many large players in the space that continue to use many of our products and solutions. Our service transfer exchange solution is processing transactions and clients are seeing real value in the efficiencies gained. We expect with rising interest rates and decreased originations that the velocity of MSR transactions will increase, generating additional demand for our STX offering. As previously discussed, our acquisition of PayX accelerates our expansion in the buy now, pay later space. I wanted to take a moment to highlight one of PayX's customers. ScratchPay is a rapidly growing California-based lender in the FedTech space. The company offers its customers various financing options, including an innovative buy-now-pay-later option branded Take 5 for pet expenses. ScratchPay has grown over 600% over the past four years and now services more than 11,000 clinics across the U.S. and Canada. The PayX software platform has helped the company to continue to scale through its self-service, white-labeled, omnichannel platform with approximately 80% of its 2021 payments, originating through the PayX signature mobile application. ScratchPay has been able to drive customer engagement while keeping defaults and delicacies low, which has enabled the company to seize market share and generate quality growth. On the personal loan side, we've heard from several of our largest lending customers that they are going completely digital for both loan funding and accepting payments. When we started speaking with some of these lenders five-plus years ago, they thought it was unheard of to accept debit card for payments and would not consider instant funding because they wanted borrowers to physically walk in branches. Now the consumer is demanding the modern digital experience that our solutions provide. Our instant funding volume ended the year very strong. December volume was roughly 20% above November volume, which is a really good sign for origination activity. Also, our December 2021 monthly volume for instant funding was 130% above our January 2021 volume. Recently, we announced our partnership with Megasys, a loan management software system specializing in consumer finance industry. We're looking forward to helping them provide the best possible service to consumer and auto lenders across the country and find solutions that make their business as successful as possible. As I mentioned previously, the integration with Billingtree is going well. We are on track to realize the synergies previously discussed. On the business development side, we announced a technology integration with CNR Software, a leading provider of collections and recovery solutions to multiple industries. Through the integration, Billingtree's omnichannel payment solution will help organizations in the collections industry accept payments more efficiently. We also recently signed a leading company in the healthcare revenue cycle management space who provides patient balance resolution services for hospitals and physician groups. This positions Billingtree at the intersection of AR management and healthcare. So again, a really strong year capped off with a very productive quarter. we believe that we are well positioned for another successful year of growth in 2022. As we all know, there are many secular trends towards frictionless digital payments that have been and will continue to be a tailwind that will drive our business for years to come. To further take advantage of these trends, we have laid out a few specific initiatives which will be guiding our investments for the year. We look to further increase our card penetration across all our verticals with top clients. We expect the majority of our growth to be derived from further penetration of our existing client base. We will continue to focus on optimizing our processing infrastructure in order to reduce costs as we grow volume. We will look to formally commercialize, market, and cross-sell our AR-AP unified capabilities during the year. We have had several recent successes, including signing a large customer away from a competitor who selected us because of the demo of our AP solution integrated with Acumatica. We're also seeing strong sales momentum coming out of the 2022 Acumatica Summit in late January. We'll continue to grow our AP supplier network, as well as sign new B2B virtual card clients and expand our virtual card adoption. We also will continue to focus on developing the best software and payment solutions for all verticals. To support this, we're pleased to welcome technology veteran David Guthrie as our new chief technology officer. He brings extensive experience driving technology and product strategies with a deep understanding of conversion software technologies. David also has a very strong background in integrating the technology of acquired businesses. As we look to broaden our addressable market and solutions, we will continue to use strategic M&A as an important growth driver for our business. Our M&A pipeline remains very active. Finally, I want to thank the entire Repay team for their hard work in 2021 and welcome all of our new team members. I'm looking forward to keeping up the momentum with all of you in 2022. With that, I'll turn it over to Tim to discuss the financials and guidance in greater detail. Tim?