ServiceSource International, Inc.

Thank you for your patience and please continue to stand by. The service source fourth quarter 2021 earnings call will begin momentarily. Thank you for your patience and please continue to stand by. Thank you. Thank you. Thank you. Thank you. Thank you. Good day, and welcome to the ServiceSource fourth quarter 2021 earnings call. At this time, all participants 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 then one on your touchtone telephone. If anyone should require assistance during the conference, please press star then zero to reach an operator. As a reminder, this call may be recorded. I would like to turn the call over to Elise Purcell, head of corporate communications. You may begin.

Thank you, operator. We appreciate everyone joining us today and welcome to ServiceSource's earnings call to discuss our results for the fourth quarter and full year ended December 31st, 2021. On the call today are Gary Moore, ServiceSource's chairman and CEO, and Chad Lyne, our CFO. As a reminder, our SEC filings and the earnings release we issued today after market close are available on our website, at www.ir.servicesource.com. In addition, we have posted earnings slides to accompany our comments today. Shortly after this call, we will post an audio replay and a copy of our prepared remarks to our website. Before we begin, I would like to remind you that during the call, we will make projections or forward-looking statements that involve risks related to future events. All statements made during the call reflect our views as of today, February 23, 2022, and are based upon the information currently available to us. All projections and forward-looking statements should be considered in conjunction with the cautionary statements in the earnings press release and the risk factors included in our SEC filings, including our report on Form 10-K. These documents contain and identify important factors that could cause actual events and results to materially differ from those contained in our projections and forward-looking statements, and we disclaim any duty to revise or update any forward-looking statements. In addition, during the call, we will also be discussing certain non-GAAP financial measures, which we believe provide additional information to enhance the understanding of how management assesses the operating performance of the business. The reconciliation of the GAAP and non-GAAP measures can be found in the earnings release that accompanied this call. And with that, I'll turn the call over to Gary.

Thank you, Elise. And our thanks to everyone for joining us for our earnings conference call for the fourth quarter and full year 2021. We close the year on a strong note. demonstrating the power of our strategy, the value of our solutions in the marketplace, and the positive outcomes we delivered for our clients. Revenue growth accelerated to more than 9% in the fourth quarter and was the strongest year-over-year compare since the first quarter of 2014. Furthermore, we returned the business to full-year revenue growth and more than doubled our annual profitability on an adjusted EBITDA basis. I am incredibly proud of how our teams performed throughout 2021. We built upon the foundational work from previous years and further improved the fundamentals of the business. We executed well against our strategic objectives and priorities in pursuit of our long-term vision. and we made important strides on our multi-year transformational journey towards our target model objectives. Reflecting on this journey, I am reminded of remarks I made on my first earnings conference call as chairman and CEO three years ago in February of 2019. I tried to be clear that we would not pursue a quick-hit, short-term strategy. Rather, we would be methodical and disciplined as we sought to sustainably and durably improve our execution, financial results, and enterprise value. To accomplish these objectives, I also shared with you that our time and energy were going to be focused in three key areas, our people, our clients, and our operating and financial model. Last week, ServiceSource employees around the world came together virtually for our annual company kickoff. As we reviewed our past performance and aligned for the year ahead, it was clear to everyone the progress we have made on those focus areas and the exciting opportunities we see in front of us. We have built and fostered a world-class organization that cares deeply about our culture and each other, winning as a team, and living our values of dedication, collaboration, trust, and caring. As a technology-enabled services company, our people are the most important aspect of our product. From that lens, I truly believe we have the best product in the market. Based on what I hear from our clients, they feel the same way. They trust and rely on our people to represent their products, solutions, and brands in the marketplace. I will quote a chief customer officer from one of our clients who joined us at our kickoff last week when he told our teams, it's getting harder and harder to tell the difference between your team and my team. We are so integrated at this point. You provide a great source of resources for us to scale. As our journey continues and our growth accelerates in SaaS, we are counting on you. We couldn't do it without ServiceSource, as the demand for resources and qualified people is too high for us to fulfill on our own. This kind of endorsement isn't given unless we consistently deliver on our clients' for-life mentality and approach. Our clients are at various stages of their own transformational journeys in an increasingly dynamic and competitive environment. environment. We have invested significant resources to ensure we are better aligned, strategically positioned, and more responsive to support their evolving needs. We are seeing results from this ongoing focus in terms of higher client satisfaction, stronger retention rates, and more growth and expansion opportunities from our installer base. Allow me to paraphrase another client who joined us last week, a chief sales officer from one of our longest-tenured partnerships who highlighted the power of our strategic alignment with his business. He said, our original partnership with ServiceSource goes back to 2011 when you helped us make our last pivot. We're now making a similar kind of change and looking to make the next pivot. As our world evolves and changes, we're really excited to have you as part of that journey with us. This level of trust and alignment has to be fought for and earned every day through consistent execution and exceeding expectations. Our teams around the world have done a great job standardizing our solutions, building globally consistent processes, and improving our day-to-day performance, leading to operational excellence. The progress here has been profound. particularly considering the disruption caused by the pandemic and the transformation required across our entire value chain as we built an innovative virtual-first operating model. We are ramping faster, scaling smarter, improving client outcomes, and accelerating our own financial results. In recognition of the progress we have seen across our employee, client, and operational focus areas, I am thrilled to share with everyone that we have elevated two senior executives to broader leadership roles in the business. Mike Lawton, a 10-year veteran of ServiceSource, and most recently our Executive Vice President of Global Client Delivery, has earned the role of Chief Operating Officer. Mike now leads our global delivery centers, people and culture, learning and development, and information technology organizations. Peter Flynn, who's been with ServiceSource for nine years, has taken on the role of Chief Revenue Officer with end-to-end accountability for our go-to-market teams, including marketing, solutions design, outside sales, and global account management. Mike and Peter have been instrumental in strengthening the fundamentals of our business and building our foundation for the future. I look forward to the impact that they will have in these broader roles to advance our innovation, transformation, and growth agendas. Before I turn the call over to Chad to cover our operating and financial results, I want to share with you why I am optimistic for the year ahead. In many respects, the broader macro environment continues to exhibit uncertainty and volatility. In the face of this, however, I see tremendous opportunity for longer-term tailwinds for ServiceSource. Companies in the technology industry have a long list of initiatives, but CEO and board surveys consistently point to three strategic corporate priorities, digitally-enabled growth, customer engagement and satisfaction, and competition for talent. Our solutions and capabilities are squarely aligned to these objectives. We enable our clients to scale talented resources and capacity more rapidly than they can on their own. We support them in executing their go-to-market strategies more efficiently on a global basis to allow them to outpace their competition. And we digitally engage with their prospects and customers with proven playbooks to identify and unlock higher levels of growth and retention. We've talked a lot on previous calls about digital transformation and how the global pandemic caused many businesses to rethink their go-to market models in order to build more valuable connections with their customers. Over the past year, ServiceSource has been able to capitalize on that need to foster better customer interaction, intimacy, and insight for our clients. As we move through 2021, we began to see a shift in the industry from a defensive, protect what we have mentality, to a more offensive mindset focused on gaining market share. With this shift, clients and prospects are increasingly focused on expansion opportunities that have opened because of digital disruption. For example, in the fourth quarter, we signed and brought on board five new clients. One of those new clients, Goody, is a fast-growing cloud-based disruptor focused on the digital transformation of the corporate gifting market. Goody's digital gifting services began as a consumer app and quickly moved to offer a corporate application for business-to-business gifting. To build its B2B client base, Goody retained ServiceSource in North America to deploy a high-velocity inside sales motion to convert interest into leads, and qualified leads into activated customers. Our team was staffed, trained, and up and running in less than 30 days, aimed completely at growing a new business line for Goody. Speed to market matters when clients pivot to capitalize on a new space, and we provide the agility they need to continue to be a disruptive force in their market. We have also seen the digital transformation agenda propel our installed-based clients into new ways of working. For a company like Qlik, who we have had the great opportunity to support for more than five years, we have played a central role in the redesign of their customer engagement strategy. Qlik has begun to move its solutions entirely to the cloud and is leading its market in an evolution to recurring subscription and SaaS-based business models. Beyond the changes that a subscription model brings to things like contract length and pricing, the most important factor for a successful transition is in how customers are managed and supported. Companies that have a unified view of the customer, a holistic approach to engagement throughout the customer journey, and a mix of high-touch and tech-touch interaction channels are better able to accelerate their solutions to a subscription model. Throughout our multi-year partnership with Qlik, we have supported them in successfully navigating this transformation. We have broadened what began as a transactional renewals motion focused on preserving the base into a more holistic customer success nurturing program tasked with growing value and expanding the base. Now we are on a path together to bring further innovation and velocity to other areas of their customer experience. Client examples like these speak to the critical role we play supporting new digital disruptors and established industry leaders. Our commitment to our clients' success is helping them accelerate the execution of their go-to-market priorities. And our unwavering focus on delivering our brand promise is strengthening our position as a trusted partner, strategic advisor, and growth enabler. As we begin 2022 in the hope of entering a post-pandemic world, we believe the technology industry's need for easier, faster, and better ways of interacting with prospects and engaging with their customers will continue. We have diligently positioned ServiceSource to address this need and to capitalize on the opportunity it presents for us and our clients. And finally, the progress and performance we demonstrated in the past year give us confidence in our long-term financial priorities and our ability to deliver on them. We remain focused on our strategy and the value we believe successful execution can create for all of our stakeholders. With that, I'll turn the call over to Chad.