Kaleyra, Inc.

Good afternoon. Welcome to Calera's second quarter 2022 earnings conference call. After the market closed, Calera released unaudited results for the second quarter and the June 30th, 2022. The press release as well as a replay of today's call can be found on the company's investor relations website at investors.calera.com. Please review the release for additional information on what will be discussed today. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. Joining us today are Kilaris Founder and Chief Executive Officer, Dario Collegiero, Chief Financial Officer, Giacomo D'Auglio, and VP of Investor Relations, Colin Gillis. Following their remarks, we will open the call for your questions. I would now like to turn the call over to Kilaris VP of Investor Relations, Colin Gillis. Sir, please proceed.

Thank you. Before we begin, we would like to remind everyone that during today's call, management will be making forward-looking statements. Please refer to the company's SEC filings, including the company's annual report on the Form 10-K, for a summary of the forward-looking statements and the risks, uncertainties, and other factors that could cause actual results to differ materially from those forward-looking statements. Clara cautions investors not to place undue reliance on any forward-looking statement. The company does not undertake and specifically disclaims any obligation to update or revise the statement to reflect new circumstances or unanticipated events that occur, except as required by law. Throughout today's press release and on the call, we'll refer to adjusted gross profit margin, adjusted EBITDA, and adjusted earnings per share. These metrics are not determined in accordance with the generally accepted accounting principles, and therefore, are susceptible to varying calculations. A definition, calculation, and a reconciliation to the financial statements of these non-GAAP measures can be found in the tables included in our press release. We believe these non-GAAP measures of Calera's financial results provide useful information regarding certain financial and business trends and the results of operations. Now, I'd like to turn the call over to Dario for an overview of Calera's second quarter. Dario?

Thank you, Colleen. Welcome everyone and thank you for joining us today. As usual, for those of you who may be new to our story, I'll begin with a brief overview of our business. Calera is a communication platform as a service provider and at a high level, we provide our global partner base with an omni-channel suite of powerful APIs and visual tools to bridge the communication divide between brands and their customers. Brands often face coverage gaps when trying to communicate with their customers, especially in industries that require security and must prioritize reliability, such as financial institutions and healthcare. Our mission is to help build lasting business-to-customer relationships for our partner brands across channels, and to do so while providing services that our clients can trust. To reiterate, our growth strategy relies on three main pillars. One, we are focused on expanding our geographical footprint. Calera revenues comes from global customer and is a priority for us to both expand to new geographies and maintain our diverse global revenue split. It is our view that the CPAS market has all remained very fragmented and under-penetrated in many parts of the world. and we are well-positioned to meet CPAS demand in underserved areas. After last year's expansion into American markets through Engage infrastructure, we continue to have around a third of our revenues from each of the Americas, around 41%, Europe, around 28%, and Asia, around 32%. A favorable balance that makes Calera one of the most prominent and geographically diverse CPaaS companies in the world. Two, we will continue to judiciously invest in our omni-channel suite of services. It is our goal to meet our partners on whichever channels they require to best connect with their customers. As video and voice communication proliferate globally, expanding into new communication streams, remains an important area of investment for our team. And lastly, we remain committed to secure, reliable, and trusted service. Our business thrives in industries that have the highest standard of security for their communications with their consumers. Banks, financial institutions, healthcare, etc. All need to be able to trust that their interactions with consumers are handled with the utmost security and consistency. Calera delivers on that in a way that no other industry player does. While others strive for partner volume, we know that our expertise in trusted SIPAs influences customer retention, and that with the right partners, this is an area in which we can excel. Through our diverse geographic mix, concentrated investment in our omnichannel platform and secure service, We believe we have a real opportunity to scale and realize our long-term vision of being a trusted global CPAS provider for our partners. Our Chief Financial Officer, Giacomo Dallaglio, will discuss our financial results for the quarter shortly. But before I end over the call, I'd like to recap a few recent highlights from our second quarter. I'll start with a financial overview. Our second quarter revenue was $81.1 million, up 50% from the same comparable year-ago period, and in line with our revenue estimate. From a profitability perspective, we are encouraged that we were able to exceed expectations and do so while continuing to invest in business in our growth strategy. For example, our second quarter gross profit and adjusted gross profit were $18.7 million and $20.2 million, a 78% and an 82% increase from last year's Q2, respectively. While our adjusted EBDA increased over 177% from the prior year period, from $2.2 million to $6 million. In addition, our cash and cash equivalent position remains strong at over $74 million, and our key metrics significantly improved as well, with our adjusted gross margin at 25% compared to 20.6% in the prior year period. Also, the campaign registry continued to outperform, posting its first million-dollar month and finishing with over $4 million in revenue in our second quarter with high profitability. While we don't plan to update campaign registry results every quarter, The campaign registry continues to be a key aspect of our trusted CPaaS offering, and we remain committed to driving significant shareholder value both through the campaign registry as well as the rest of the business over the long term. Moving to some of our key operating metrics. In the second quarter, we delivered 13.4 billion billable messages and connected 1.8 billion voice calls. In our largely volume-based business, this reflects our ability to leverage the benefits of scale and is an area in which we hope to drive continued growth in the future. In Q2, our dollar-based net expansion rate was 103% calculated based upon pro forma revenue from the same customer base in the corresponding year-ago comparable period. Moving to our operational highlights. In the second quarter, we joined the Russell 3000 Index at the conclusion of the 2022 Russell Index Annual Reconstitution. We appreciate being part of this select group and expect our inclusion to bring added visibility within the broader investment community. We also announced two key appointments in personnel. First, Zeffrey Lasker, has been appointed to the leadership team as the senior vice president of marketing and strategic alliances. Zephyrin has a decorated career in messaging, e-commerce, digital marketing, and software as a service platforms, and will be instrumental in driving Calera's effort to expand within new existing markets. Second, Colin Gillis has been appointed as our vice president of investor relations. Colin brings over a decade of industry experience from his time analyzing public and private companies as an equity research analyst. In his new role, Colin has already started engaging with the investor community to expand and to elevate visibility into the company's operation, growth strategy, and results. I'd like to send a warm welcome to Jeffrey and Colin, both of whom have already done tremendous work for Calera. Colin has joined us today as well, and I'd like to give him an opportunity to introduce himself. Colin.