EngageSmart, Inc.

Good evening. Thank you for attending today's Engage Smart Q4 2021 earnings call. My name is Selina and I will be your moderator. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you'd like to ask a question, please press star 1 on your telephone keypad. I'll now turn the call over to Josh Schmidt from Engage Smart. Josh?

Thank you and good evening. With me on today's call are Bob Bennett, Chief Executive Officer, and Cassandra Hudson, Chief Financial Officer. Our earnings press release supplemental presentation and associated form 8K can be found at investors.engagesmart.com. Within the supplemental presentation, we are providing a more detailed breakout of our revenue by segment into the following categories, subscription, transaction usage-based fees, and other. During this call, we will be discussing certain forward-looking information. Actual results could differ materially from those contemplated by these forward-looking statements. Please refer to the risk factor section of our quarterly report on Form 10-Q and other SEC filings for more information on the risks regarding these forward-looking statements and risk factors associated with our business. All metrics discussed during this call are non-GAAP unless otherwise noted. A reconciliation of non-GAAP metrics to the nearest GAAP metric can be found in our earnings press release and supplemental presentation, both of which are available on the investor relations section of our website. This call is being webcast live and will be available for replay on our website at investors.engagesmart.com. I would now like to turn the call over to our CEO, Bob Bennett.

Thank you, Josh. Welcome, everyone, and thank you for joining us. We are excited to host our fourth quarter and fiscal 2021 earnings call on the heels of a strong quarter and an outstanding year. Delivering on our mission of simplifying customer and client engagement can be directly attributed to our customers, our partners, and our employees. And I remain humbled by their contributions and continued commitment to engage smart success. Before digging deeper into the details of our performance, I'd like to share with you a few of the highlights that we are really proud of. We've seen tremendous customer growth of 39% year-over-year in our SMV segment, where we now serve over 79,000 customers. Our strong organic customer growth is primarily driven by word of mouth and the strength of our end-to-end product suite. For example, one of our dietician group customers was able to eliminate four separate vendor solutions in favor of simple practice. The improved efficiency enabled each dietician in the practice to see an additional patient each day. At the same time, we are driving continued innovation across our solution. For example, we added mobile app payment features and introduced integrated diagnosing code, which simplifies case management and documentation while driving cost savings. We are serving more verticals today than ever before and are focusing on several high-growth areas. We plan to further invest in these verticals and drive customization of features for a fit that becomes unparalleled in the market. And in our enterprise segment, we are experiencing great traction as we serve over 3,100 customers across our three solutions. We are seeing strong organic growth driven by product innovation, partnerships, and our focus on having a leading value proposition. This includes e-payments and other options to help customers get paid faster, easier, and without paper. For InvoiceCloud, the largest revenue contributor in the enterprise segment, we provide multiple payment alternatives for all our billers, including PayPal, Venmo, and others, in a space where the market is still largely running on checks. We are excited that our progress has been recognized with a shortlisting of InvoiceCloud by the Cloud Award in the category of Best Cloud Payment finance, or billing solution. In our donor drive solution, we are honored to support fantastic charities such as Extra Life, a one-of-a-kind 24-hour gaming marathon benefiting Children's Miracle Network hospitals. We are helping them raise huge amounts of money through the advanced social features found in our technology. We helped Extra Life raise over $3 million in donations in a single weekend. Stories like these get us excited to be part of EngageSmart. If you recall, we founded EngageSmart because activities like paying bills, scheduling appointments, onboarding new patients, and client communication shouldn't be that hard. We've come a long way. Today we are driving digital adoption in a $28 billion market. customers are increasingly adopting our offering to drive digital adoption and self-service as they simplify engagement with their clients. Why? Because EngageSmart solutions help improve their businesses, lower operating expenses, and reduce wasted time. Turning to financial headlines for the fourth quarter and full year, EngageSmart delivered another quarter of record revenue performance. Total revenue in the quarter increased by 37% year-over-year to $61.6 million, driven by strong revenue growth of 55% in our SMB segment and 23% in our enterprise segment. For the full year 2021, total revenue was $216.3 million, an increase of 48% from the prior year. In the SMB segment, we delivered incredible annual year-over-year growth of 74%, and in the enterprise segment, annual revenue grew 28%. Cassandra will review our financials in more detail later, but first let me give you a high-level update on our progress and execution in our SMB and enterprise segments. SimplePractice now serves 10 wellness vertical markets, including mental health, speech-language pathology, occupational therapy, nutrition, chiropractic, and physical therapy, among others. While our roots are in mental health, our newer markets are high-growth engines for our SMB segment, and we intend to increase our investment in product and marketing to drive growth in these markets in 2022 and beyond. Practitioners across these wellness markets are attracted to SimplePractice because it offers an integrated solution for business management, simplifying tasks like scheduling appointments, documenting cases, deploying telehealth, billing and payments, collections, and insurance claims management. This is a high-growth space, and COVID accelerated its growth. Patient visits continue to grow as the pandemic begins to wane. We believe the tremendous SMB customer growth we experienced is a result of increased technology adoption that was catalyzed by the pandemic and has now become a secular shift in behavior. Now turning to our enterprise segments. Our enterprise business brings together vertical-specific engagement capabilities with a modern digital commerce experience. We have more than 3,100 customers across government, utilities, healthcare, financial services, corporate, and nonprofit giving, all using our Invoice Cloud, HealthPay24, and DonorDrive solutions. We saw excellent momentum in the fourth quarter and the full year, driven by strength in customer win, go live, and the continued adoption of our digital solutions. During the fourth quarter, we saw strong new customer acquisition, fueled by our growing network of alliance partners in our core verticals. One example of the traction we're seeing with our alliance partners is InvoiceCloud's partnership with Harris Utilities Group. InvoiceCloud is the largest payments partner for Harris Utilities Group. And that partnership continues to expand with the launch of the Silver Blaze Customer Engagement Portal solution by Harris. Hundreds of mutual customers benefit from our Harris partnership, including the city of Arlington, Texas, who has been working on driving paperless billing and online payment adoption. The city of Arlington, since working with us, has already realized an estimated 60% decrease in payment-related calls and $30,000 in annual savings and shrinking costs alone. Advantages such as these underscore the great value that our enterprise product and leadership teams are bringing to the market. Speaking of leadership, we're particularly excited about the new addition of Kevin O'Brien, who will be leading this business as President of Enterprise to build upon our clear, steady success in this space. Kevin comes to us from PTC and brings an excellent track record of leadership in product and go-to-market that will be valuable to our enterprise solution. Looking forward, the market for customer engagement and online bill payment software remains vast, and organizations are becoming increasingly aware that driving digital self-service and providing customers with multiple ways to pay has been proven to reduce late or lost payments and to increase customer satisfaction overall. With that, I'll turn the call over to our CFO, Cassandra Hudson. Cassandra?