Kaleyra, Inc.

Welcome to Clara's fourth quarter and full year 2022 earnings conference call. After the market closed, Clara released unaudited results for the fourth quarter and full year ended on December 31st, 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.clara.com. Please view the release for additional information on what will be discussed today. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. Joining us today are Calera's founder and chief executive officer, Dario Calegero, chief financial officer, Giacomo D'Aglio, 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 Clara's Vice President of Investor Relations, Colin Gillis. Sir, please proceed.

Thank you. Before we begin, we'd 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. Calera 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 statements 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, adjusted gross margin, adjusted EBITDA, adjusted earnings per share. These metrics are not determined in accordance with generally accepted accounting principles. Definition, calculation, and reconciliation to the financial statements of these non-GAAP measures can be found on 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 fourth quarter. Dario?

Thank you, Colin, and thank you to everyone for joining us here today. Our fourth quarter started an exercise of forward momentum for Calera, with revenue exceeding the upper end of our guided range as we build on our existing customer base, develop new valuable enterprise partners, and gain success layering in higher margin communication channels. The fourth quarter was highlighted by record revenue of $93.7 million, an increase compared to the $90 million in the year-ago period. When adjusted for fourth quarter 2021 foreign exchange, the quarterly revenue would have been $97.7 million. Fourth quarter revenue showed healthy seasonality with over a 10% sequential increase when compared to the first quarter of 2022. Results for the fourth quarter also exceeded the stated guidance range of 86 to 90 million. Full-year 2022 revenue marked a record year increase in 26.7% to $339.2 million from $267.7 million in the comparable year-ago period, or 32% to $353.3 million when using fiscal year 2021 foreign exchange rates. Full-year and quarterly record revenue was driven by growth with existing customers, ramping volume with new customers, and the constant focus on the enterprise businesses that deliver a large amount of volume of communication. As we discussed previously at Calera, Part of the way we measure success is with the following key operating metrics. One, billable messages, two, voice calls, and third, dollar-based net expansion. For the fourth quarter, we delivered 12 billion billable messages connected over 2.2 billion voice calls, and the dollar-based net expansion rate was 98.1%. But looking at Calera's top 30 customers, our dollar-based net expansion rate was 139% in the quarter. In 2022, our technology managed 51.5 billion messages and 8.1 billion voice calls, utilizing our relationship with over 1,600 telecom operators, including all Tier 1 US carriers, directly connected. When we discussed that Calera is a global business with scale, the 51.5 billion messages delivered in 2022 is over 5 million messages delivered per hour for every single hour of the year. As it relates to margin expansion, in order to change the sale mix with products with higher profitability, we identified three different strategic initiatives. to help our customers in delivering safe, effective, and efficient communication. Focus on global enterprises, focus on global connectivity, and focus on intelligent CPaaS new products. During the fourth quarter, we managed to make significant progress on all the three initiatives. We announced strategic partnerships with global enterprises like Amazon and Oracle. and with telecom operators in key markets like PLDT in the Philippines and Claro in Central America. We also achieved significant growth in our registry business with the campaign registry, and we acquired new customers for Calera Video like Flowey in Italy, and we launched new products such as chatbots that will help our customers in developing conversational capabilities across all the communication channels. While we are positive on the quarterly results, we are also aware of the uncertain economic environment facing global companies in 2023, including Calera. The management team has created a value creation program that started in January and is focused on reducing costs to invest in the free strategic programs that will drive business at higher margin. Our chief financial officer will have more comments on the program shortly. To finish this portion of the call, it has been two decades since cholera's infection, and I'm very proud of how far we as a company have come. From a startup to our current status as a global leader, I look forward to continuing to be part of the bright future I know is ahead. With that, I will now turn the call back over to Colin.