Enfusion, Inc.

good afternoon thank you for attending today's infusion first quarter fiscal year 2022 earnings call my name is tania and i will be your moderator for today's call alliance will be muted during the presentation portion of the call with an opportunity for questions and answers at the end if you would like to ask a question please press start one on your telephone keypad i would now like to pass the conference over to our host iggy njoku head of investor relations with infusion please go ahead

Thank you. Before we begin, I'd like to remind you that today's call may contain forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including those set forth in our filings with the SEC and are available in the Investor Relations section in our website. Actual results may differ materially from any forward-looking statements we make today. These forward-looking statements speak only as of today, and the company does not assume any obligation or intent to update them following today's call, except as required by law. In addition, today's call may include non-GAAP measures. These measures should be considered as a supplement to and not a substitute for GAAP financial measures. Reconciliation to the nearest gap measure can be found in today's earnings press release, which is available on the company's website. Posting today's call are Thomas Ken, Infusion's Chief Executive Officer, and Steve Thornton, Infusion's Chief Financial Officer. With that, I'd like to turn the call over to Thomas to begin.

Thanks, Iggy, and thanks to everyone for taking the time to join us. Today, I'm going to highlight our first quarter results and then dive deeper into the market opportunity and our road ahead. For the quarter, we delivered revenues ahead of our expectations, driven by solid execution, broad adoption across all of our cloud-native and managed services offerings, and the overall resiliency of our business model in a volatile global market. We expanded our base of global enterprise fund managers, notably with the addition of two seven-figure deals for the first time in the same quarter, both utilizing our end-to-end portfolio management and OEMS solution, as well as winning four new institutional asset managers. Overall, the fundamentals of our global business remain unchanged and strong. The company we have built is executing as we had envisioned and outlined throughout the journey to becoming a public company. We remain focused on the same three strategic areas for long-term growth, moving upstream to larger fund managers and institutional asset managers, unlocking new and adjacent TAM, and expanding our global presence. With that said, we are investing for the future as we have done so successfully in the past, targeting our hallmarks for excellence around client experience and continued product innovation. We expect these investments to drive incremental revenue growth and generate profitable returns over time, and they are already delivering a speedy return. This has had an amplified effect as the investment management industry continues to transition to the cloud and our clients continue to embrace our platform and services. Our ability to continue to deliver high revenue growth speaks to the strength of our business and the consistent execution of our global strategy. Now, turning our attention to results, let me walk you through some highlights. Despite increasing volatility in the capital market, particularly within the hedge fund industry, We continue to successfully accelerate revenue in the quarter. First quarter revenue grew 40% to $34.1 million, reflecting robust growth with existing customers, as well as new larger customers. ARR grew 37% to $137.6 million, as we are seeing the benefit of new client wins signed both in the back half of last year and in the first quarter of 2022. Adjusted EBITDA was $2.1 million, reflecting non-recurring expenses related to public company operating costs and higher than expected operational expenses related to talent acquisition and retention. I want to take a moment to acknowledge that we fully recognize our shareholders expect more from us, given our recent track record on the level of profitability expected. We share this sentiment and expect to do better. In a moment, Steve will walk you through this with additional detail. Turning to existing customer growth, the success and stability we're seeing as a result of the upselling of additional products and services exemplified by our net dollar retention of 116% when excluding involuntary churn. The healthy net dollar retention demonstrates the durability of our business model and continued growth despite market volatility. In addition, our client diversification continues to expand nicely, as we said it would. We won 42 new clients during the quarter, ending the quarter with 756 clients. The uniqueness of this outcome is that, in all, these wins in the quarter represent a record aggregate contract value of total new logo wins that we've never seen in previous quarters, demonstrating strong sales execution, our ability to increasingly win more resilient enterprise clients across our products and services, and the ongoing strength across all regions. Overall, I'm proud of the team's accomplishments, and I'm excited to continue seeing the investment management industry embrace our cloud-native solutions, which translated to a strong first quarter business result. On the last call, I shared that one of the top priorities is to win more share within our current markets and expand into new markets as well as adjacencies. We've made further progress on this front with the addition of new logos that demonstrate our ability to not only win larger fund managers and institutional asset managers, but also unlock new adjacencies. In addition, we're continuing to see strong return on our profitable investments we made during the last few quarters, signaling to us that our strategy is working. As I discussed earlier, for the first time in our company's history, we signed two seven-figure deals in the same quarter. We also further penetrated the large institutional fund manager market by signing four new institutional asset managers, all of which were conversions replacing legacy systems across portfolio management, accounting, order management, and execution management systems. These compelling wins provide further proof points to the success we are having with large institutional investment managers and enterprise alternative investment managers who desire a more comprehensive end-to-end technology solution. And despite the recent market volatility across the world, we're still seeing strong demand from both new fund launches and conversions. In fact, we're continuing to consistently displace incumbent providers at a fast pace, as we saw over 60% of new client wins driven by conversions from legacy systems in the first quarter. Finally, as we stated in the last earnings call, we are seeing an acceleration in client adoption for our OEMS product suite. OEMS bookings accounted for 46% of total bookings compared to 29.5% in the same prior period. Winning OEMS clients is incredibly important to the fundamentals of the business for several reasons. First, it is proving out our purposefully designed end-to-end infusion solution. Our OEMS solution supports the full front, middle, and back office technology stack. With the accelerating adoption of OEMS, investment managers are recognizing the breadth and depth of the complete offering. By selecting our OEMS solution, traders are increasingly confident in communicating orders through our technology stack, further bolstering our ability to support mission-critical trading strategies. Before I discuss client wins, let me discuss a significant alliance we announced earlier this week. I'm thrilled that Northern Trust has selected Infusion as part of their whole office strategy. This strategy is designed to facilitate asset manager access to new technologies and capabilities across the spectrum of strategy and trading, operational, data, digital, and analytics solutions. The goal of this partnership is to drive mutual growth by working together to market and sell to prospective mutual clients. This alliance goes further than referrals. Our two teams are committed to providing coordinated white glove service to mutual clients. Our joint clients will benefit from bespoke coordinated services across our two teams. Now let me shift and walk you through several client wins in the quarter that I am excited about to help illustrate our progress in moving upstream and entering new markets. In the U.S., revenue grew 34% year over year as we saw strength across all our products as well as client types. As discussed earlier, I'm excited to announce that we signed a seven-figure deal with a Boston-based fund manager. the investment manager was looking to replace its 15-year legacy OEMS incumbent provider with a newer cloud-native investment management platform that could help them build and quickly expand into new trading strategies across global equities and credit debt as their business requires. They selected Infusion because of our ability to support not only the firm's current complex trading strategies, but also partners to support their growth alongside our high-touch service. I'm also pleased to announce that we entered into an agreement with a large global macro multi-billion dollar fund manager. The firm was looking for a technology platform that supports their new multi-manager line of business, as well as a variety of trading strategies, including global macro and FX hedging. They partnered with Infusion because of our flexibility and our ability to support a diverse array of strategies, at a time when global macro funds are benefiting from price dislocations and commodities instability. I'm particularly excited about this deal because it demonstrates the impact that our capabilities can have for a wide array of fund managers during times of market volatility and capital flows. In this instance, with global macro funds gaining the lion's share of fund flows into the hedge fund industry in Q1, we're excited to be in a position where we can be impactful. Further, it demonstrates a pattern we are increasingly seeing in which infusion continues to support multiple types of asset managers across asset classes beyond equities. In EMEA, we had record revenue growth of 59% year-over-year this quarter, driven by strength in Africa and Middle East. A marquee win in this region included another seven-figure deal with a global multibillion-dollar fund manager to provide a cloud-native front-to-back solution. In this competitive takeaway, Infusion is replacing a patchwork of different solutions and databases with a singular unified solution with a single source of truth, allowing the investment manager to reduce their tech footprint and realize cost efficiencies. This new client, which we're thrilled to partner with, was using a legacy incumbent for years that was not evolving with their business needs and was looking for a partner that would solicit their feedback, collaborate, and bring ideas to life. Simply put, the investment manager and Infusion are partnering to not only enhance Infusion's OEMS offering, but also be a quality contributor to our OEMS product roadmap. In addition, I'm pleased to announce that we expanded our geographic presence in continental Europe with the signing of a Paris-based long-running institutional asset manager. The fund manager chose Infusion due to the breadth and depth of our product offering, allowing them to overhaul their disparate legacy systems. We're proud of this win because it shows not only the increasing demand from institutional asset managers, but also our ability to continue to expand Infusion's presence internationally. Now turning to APAC, we grew revenue by 47% as we continue to see success across the region and new adjacent markets. For example, we entered into an agreement with an asset management subsidiary of a leading Chinese commercial bank that manages both fixed income and equities. The fund manager decided to revamp its outdated back office technology and its manual front office workflow, which has limited their ability to view and access their portfolio in real time. By partnering with Infusion, they consolidated their many disjointed technologies onto Infusion's singular platform, all while benefiting from real-time portfolio views across multiple assets as well as improved workflows. Finally, I'm excited to announce that an Australian-based leading fund administrator chose Infusion to replace their front, middle, and back office technology, This win demonstrates not only our continued scale in the APAC region, but also our ability to unlock new adjacent markets. They selected Infusion because of our strong track record in delivering a robust end-to-end technology, our ability to streamline workflows, and significantly reduce their costs. The fund administrator can now focus on delivering cost-effective front, middle, and back-office solutions to their clients. These client stories reflect the continued demand and engagement we're seeing from all our customers across all regions and supports our strategy to move upstream across investment strategies and asset classes and win new adjacencies. We also continue to roll out new products and next generation solutions for investment managers. We bring innovation to our platform and our customers are seeing the benefit of our cloud native end-to-end solutions. In fact, our cloud native architecture allows us to be nimble by releasing product updates quickly and enables us to provide software updates as frequently as weekly. In the first quarter, Infusion rolled out more than 528 enhancements and features across our front to back platform. For example, our portfolio management solution continues to evolve based on the feedback from our client community. This is the foundation to how we partner with our clients. Let me walk you through just a couple of the many enhancements released during the quarter. First, we enhanced our credit facility processing and data feed automation tool, which enables users to view global credit facilities holdings with ease. The new update provides users with term loan pay down processing, global activity events, and compliance rules. In addition, we added functions to pricing models of derivatives, such as exotic volatility swaps. For the OEMS, we rolled out more than 100 enhancements and features in our constant effort to streamline the investment manager experience. We have meticulously fine-tuned a new first-class interest rate swap order ticket that allows for quicker, more intuitive IRS order entry, as well as staging these transactions to select IRS execution venues. We're also continually expanding our API-driven technology stack which we believe not only drives efficiency and reduce operational risk, but also gives our clients and partners the freedom to use Infusion in broader ways. In some instances, in ways our engineer never imagined, fueling the art of possible with our platform. And with this, our APIs are enhancing our ability to deliver a seamless, easy to integrate, single point of data access for our clients and third party vendors. In addition to innovating and developing new product enhancements, our investments in improving the client experience through our client services and onboarding teams are paying off. They're paying off in both the number of client onboardings we can do at any given time and the quality of those onboardings. Client support continues to evolve as we strive to act as an informed extension of our clients' own operations. We are seeing clients continue to sign up with Infusion because of our high-touch service. It is the kind of excellent customer service that differentiates and, more importantly, is impactful. I think it would also be helpful for me to give you some color on market dynamics and how these dynamics are impacting Infusion. We are seeing several favorable trends in the market that bode well for Infusion. First, despite the increased market volatility, the hedge fund industry attracted the largest inflows in seven years during the first quarter of 2022. According to WithIntelligence, the hedge fund industry added $11.2 billion of net flows in the first quarter of 2022. Given rising interest rates and higher volatility, investors are searching for opportunities to hedge their risk. We think this market dynamic bodes well for us as we anticipate an increase in hedge fund launches in 2022. Second, during a period of market volatility, investment managers seek opportunities to reduce costs and become more profitable. They focus on achieving technological efficiency as well as searching for alpha. Infusion is uniquely positioned to not only help them in delivering alpha, but also enabling them to realize cost efficiency. The market recognizes our capabilities as evidenced by the continued strength of our pipeline, even in periods of volatility. Next, as we continue to see more industry consolidation, investment managers now have the opportunity to choose more technologically relevant solutions, not only to replace legacy systems, but to merge operations in a more unified manner that can support the designs behind consolidation. Finally, we're also seeing strong secular tailwinds in the market. The investment management industry continues to move toward cloud-based solutions. They are in the early innings of a digital transformation from disparate legacy systems to cloud-native end-to-end solutions. Infusion believes it is the leader in driving this next-generation technological shift. In conclusion, this was a good quarter. We exceeded our revenue targets by generating 40% top-line growth. We continue to meaningfully expand our international footprint, driving higher revenue growth in both EMEA and APAC by 59% and 47%, respectively. We continue to execute on our broader strategy to move upstream to larger funds and unlocking new and adjacent TAMs. We continue to develop meaningful partnerships that accelerate our growth strategy. When I add all this up, we have a clear line of sight in achieving our long-term margin target above 30% over the next two to three years, while also meeting our commitment of excellent client experience and innovation that our clients require. To that end, I'd like to thank all of our employees for their hard work and dedication. Their efforts continue to position Infusion as the leader in investment management software. With our new wins and unique solutions, I'm excited about how we continue to build momentum in the market and about where we're going to take this company in the future. Let me now turn the call over to Steve to discuss our financials.