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spk03: about our successful in-person user forum. Last week, we hosted nearly 1,000 attendees from hundreds of customers and dozens of partners in Huntington Beach for our annual user forum, the first time we've hosted the event live since 2019. The energy and excitement were palpable as we connected about how our solutions help customers deliver the personalized, speedy experiences that today's consumers expect. The positive feedback and stories were inspiring and validating for our entire team. It was a great reminder of why we do what we do. It was also great to spend time in person with many of our employees who are the reason for our continued success and excellence. My last update would be discussing bringing customers online more quickly. And I'd like to talk about how the increasing recognition of our market leadership with MeridianLink One and the associated strength in selling to both new and existing customers makes even more imperative the investments we are making to bring customers online more quickly. While our hiring is somewhat behind schedule, the productivity of new and existing team members is in line with our expectations. In Q1, we were excited to add Liz Rivoli to our executive leadership team as MeridianLink's new Chief People Officer. With the benefit of Liz's expertise, we will accelerate our hiring and investment in additional people initiatives. We see the 30% year-over-year growth in services revenue in Q1 as indicative of the opportunity and expect to see sustained improvements in total time between contract signing and customer go-live as the investments in our services team come to fruition. It's heartening to see the progress we're making, and I'm confident in our accelerating momentum. Of course, none of this would be possible without the hard work of our dedicated team. Before I turn the call over to Chad, I'd like to discuss our continued success in migrating to the cloud. The work stream to complete the re-architecture and deployment of the entire MeridianLink One platform in the cloud remains on schedule, with the first quarter involving the prep work needed to migrate MeridianLink Mortgage to the cloud during the second quarter. I am happy to confirm that we remain on track to re-migrate the final components of our platforms to the cloud this year, at which point our MeridianLink One platform will be completely cloud native. I will now turn the call over to Chad to talk about our financial results and guidance.
spk08: Thanks, Nicolas, and thanks again to everyone for joining us today. I'll start by providing the highlights for the quarter. Then I will recap the highlights of our financial model and provide our results in more detail before finally giving guidance for the second quarter and full year 2022. As Nicholas mentioned, in the first quarter, we generated total revenue of $72.8 million, up 7% year over year, 87% of our first quarter revenues for subscription fees with the balance coming from professional services and others. Our GAAP operating income was $14.6 million. Our non-GAAP operating income was $20.8 million. And adjusted EBITDA was $34 million. As a quick reminder, we have a usage-based SAS recurring revenue model. Our customers sign long-term contracts, usually three years, that are not cancelable without penalty and which auto-renew at the end of term. Typically, customers commit to annual fees and monthly purchases of applications or reports. In exchange for higher monthly commitments, they receive lower per unit pricing, and any transaction over the monthly minimum commitment is an incremental charge. Our platform's ability to make our customers more efficient and effective naturally drives more volume once it is installed and used, so we can grow with our customers and we are aligned with their success. We provide both lending software solutions and data verification software solutions. In the first quarter, lending software solutions revenue accounted for nearly 68% of our total revenue and grew 14% year over year. Excluding the impact from the anticipated slowdown in mortgage-related revenues, our lending software solutions revenues grew 19% year over year. The remainder of our revenues come from data verification software solutions, which decreased 4% year-over-year as mortgage-related revenues declined. First quarter revenues from the mortgage loan market generated 28% of our overall revenues, more than previously expected as we believe the surge in mortgage interest rates pulled forward some demand. Specifically, 7% of our lending software solution revenues and 70% of our data verification software solutions revenues were tied to our mortgage-focused products in the first quarter. While the majority of our data verification software solutions revenues is tied to mortgage, this part of our business outperformed the market as we continued to find ways to augment our solutions with additional data items and partners to provide more value to our customers enabling them to continue to win share in the market. The seven points of year-over-year revenue growth in the quarter came primarily from our standard growth drivers as we added new customers, saw increased module penetration, and increased volumes from our existing customers. We expect to drive further growth as we bring additional capabilities to our customers through a combination of M&A, expansion of our partner marketplace, and delivery of organically developed products. Moving to our profitability, gross margin in Q1 was 66%. Adjusted for stock-based compensation, gross margin was 72%. We continue to invest in our sales and marketing and R&D efforts to drive organic growth acceleration. Compared to the first quarter last year, we spent 25% more in sales and marketing and 6% more in R&D, adjusted for stock-based compensation. With this additional spend, our adjusted EBITDA margin was 47%. We will continue to invest across the year to accelerate our underlying growth. Turning to the balance sheet and cash flow statement, we ended the first quarter with 146.7 million in unrestricted cash and cash equivalents, up 33.1 million from the end of the fourth quarter. Operating cash flow in the first quarter was 34.9 million, and free cash flow was $32.9 million, or a 45% free cash flow margin. We continue to generate funds that can be used to invest in the business, pursue acquisitions, deleverage, or repurchase shares under our recently authorized repurchase capacity of up to $75 million in common stock. I will now conclude the call by providing guidance for Q2 and an update for the full year of 2022. Despite the rapid rise in mortgage interest rates since the start of the year and the associated decrease in expected market volumes, we continue to see strong momentum overall, and our pipeline remains robust. For the second quarter, estimated total revenue is expected to be between 71.5 million and 73.5 million, compared to 68.5 million for the same period in 2021. This represents an estimated increase of 4% to 7% year over year. In the second quarter of 2021, the mortgage market contributed $20.3 million of revenue to Meridian Link, or just under a third of our revenue in the year-ago quarter. We expect the mortgage market to contribute less than 25% of revenue for the second quarter of 2022. On a non-GAAP basis, our second quarter estimated adjusted EBITDA is expected to be between $25 million and $27 million, representing EBITDA margins of approximately 36% at the midpoint of the range. While our reported Q1 adjusted EBITDA came in well above our previous guidance, this was primarily due to underspending plans in the quarter, and we intend to accelerate spend in our outlined initiatives throughout the remainder of the year. This includes approximately $1 million per quarter to bring the recently acquired StreetShare solution fully to market as part of Meridian Link 1. For the full year 2022, estimated total revenue is expected to be between $289 million and $293 million, compared to $267.7 million for the same period in 2021. This represents an estimated increase of 8% to 9% year-over-year. On a non-GAAP basis, our full year 2022 estimated adjusted EBITDA is expected to be between 112 million and 116 million, representing EBITDA margins of approximately 39% at the midpoint of the range. The lower year-over-year margin reflects anticipated increases in annual spending in areas that will drive future growth, as described earlier by Nicholas. We will continue to focus on the investment in services capacity to convert more bookings to revenue, and the investment and development in the cloud to both enhance and expand our product suite. Both items that require current expense that we expect will lead to future returns. As we forecast the balance of 2022, the normalization of activity in the mortgage lending market appears to be well underway. We expect this to continue being a minor headwind in lending software and a more meaningful drag on data verification software performance in the quarters ahead. Overall, the mortgage-related percentage of our revenue in 2022 is expected to decrease to the low 20s, down from 30% in 2021, subtracting more than 5 percentage points of growth from Meridian Link in 2022. While this reduction is more than we anticipated at the start of the year, as we have seen rates move higher faster than previously forecast, we have been building our business to counter the decline for some time. We have no doubt that we will continue adding new clients, providing more value to our customers, and therefore increasing revenue for MeridianLink as a whole. And our guidance for the year reflects the ongoing strength of the non-mortgage solutions we provide, which grew 17% year over year in our most recent quarter. With that, Nicholas and I are happy to take any questions. Operator?
spk01: Sure, sir. Ladies and gentlemen, if you have a question at this time, please press the star 1 on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue, press the pound key. Again, that's star 1 to ask a question. Your first question comes from the line of Koji Ikeda with Bank of America. Please go ahead.
spk04: Hi, this is Laurie Luo for Koji. So thanks for taking my question. So I got a couple. The first one is, On the three-share acquisition, what's the contribution there for the full year, given that, you know, the weak rebuy market, but you guys still got it up for the full year? And then second, how do you think about, like, what's the growth driver on the consumer side on the outpost demand and also what are the other growth driver there? Thank you.
spk08: Sure. This is Chad Martin speaking on the street shares. So we do have that built into the full year. It'll be basically it's not a material acquisition for us from a revenue perspective. It's basically around a point of revenue growth year over year, less than, you know, less than a million dollars a quarter for the balance of the year. And then the growth drivers on the consumer side. Right. We continue to see, as we've talked about in the past, the same kind of growth drivers pushing the non-mortgage consumer lending space. So the growth in new customers, the growth in our customers' volumes, as well as cross-sell and upsell into those entities. And if you look at the growth in the lending side for the first quarter, it was up 14%. And if you adjust that for mortgage, it was up around 19%. So continuing to expect, expecting to see consumer growth in the teams.
spk04: Great. That's helpful. And just to follow up, can you see any color on a consumer side? How's the auto mix there? It's considered as the majority of the consumer. Is that still going to be the case going forward?
spk08: Yeah. So we have not seen any real material change in our mix on the non-mortgage side of the business. Auto is the largest component of the consumer piece, and that's been doing pretty well. I think you've seen some of the data around used cars, prices coming down, and some constraints around supply easing up. So we continue to see that be a material contributor to the volumes and no real change as we expected going forward for the year.
spk04: Great. Just one last one for me. Do you have any data on the mix of new auto versus the used car percentage?
spk08: We don't. We don't split out kind of the overall loans by the auto type, and we certainly don't split it into new and used. And I don't think we, frankly, actually on the back end necessarily see that because an auto loan is an auto loan from how our system would process it.
spk04: Gotcha. Okay. Thanks. Thanks very much.
spk01: Yep. Thank you. Thank you. Your next question comes from the line of Andrew Schmidt with Citi. Please go ahead.
spk02: Hey, guys. Thanks for taking my question. Just to start off on just the annual revenue outlook, obviously you take out street shares and the outperforms in the first quarter, a little bit of a guide down for the rest of the year. Is that – I just want to put a finer point on that. Is that mostly mortgage outperformance in the first quarter, what you feel is a pull forward and more of a softening given the rate environment we're seeing for the rest of the year, or are there other factors? I know hiring has been a little bit slower, so I'm wondering if there's any impact on the implementation side or if this is purely sort of more rate-driven for mortgages. Just looking to get a little more color there. Thanks a lot.
spk08: Yeah, Andrew, good question. It is mostly driven by mortgage. We did see our percent of revenue from mortgage come in slightly higher in Q1 that we'd initially guided. We think we saw a bit of a last gasp as rates started rising and some of the mortgage volume pushed through in Q1. So we think we did pull a little bit of revenue into the first quarter for the year. And then, yeah, you know, we're guiding now for the balance of the year to be down from kind of the mid 20s to the low 20% of mortgage for the year. So a couple points of drag there on 2022 in the back half of the year. But again, you know, also seeing the strength on the consumer side helping to kind of make up that gap.
spk02: That's helpful. So it sounds like you're working through the backlog as expected.
spk08: uh on the consumer oh yeah sorry your question around hiring and bringing bringing folks on yeah so you know we've actually um a lot of our emphasis has been on filling those positions in the services in the services team um so we're not quite exactly where we want to be but we are bringing folks on we're seeing their their productivity as nicholas uh discussed in his remarks and so they are having the impact that we're expecting um but but nothing that is kind of either
spk02: um swinging the number higher or lower from what we'd initially put forward for 22. very helpful thank you for that and then um you know it seems like overall the consumer remains means relatively healthy but obviously there are concerns about more economic turbulence as the year progresses you know there are puts and takes obviously some types of Demand for some types of loans go down, but can be offset by, by, you know, demand for other types of loans. Could you just remind us sort of the sensitivity of the business to, you know, economic turbulence, how you think about that, just the various puts it takes at a high level that that'd be helpful. Thanks.
spk08: Yeah, Andrew. So as we think about the, the sensitivity, Right. I mean, the best kind of view we have of the sensitivity of the consumer market is just looking kind of retrospectively. And if you look at kind of the last 20 plus years, absent one year in the Great Recession, consumer loan behaviors, consumer lending has grown every year. So it is a pretty is not very sensitive, I would say, to kind of the macro movements or the economic shifts. And so we're using and leveraging what we see from the folks who kind of call the market for consumer. You know, CUNA has 2022 growing 8% year over year, up from 6% last year. I think that's a slight decline from the 9% they called at the beginning of the year. But, you know, our volume still reflects that we see kind of growth in this space in line with that. And so we're not expecting, you know, we don't know what we don't know in terms of other kind of macroeconomic shifts that may occur. But given kind of the current environment, you know, we're comfortable with what we have put in for the forecast for the balance of the year.
spk02: Very helpful. I'll jump back in the queue. Thanks a lot, Chad. Appreciate the comments.
spk08: Thanks, Andrew.
spk01: Thank you. Your next question comes from the lineup tech at CALEA with Barclays. Please go ahead.
spk05: Okay, great. Thanks for taking my questions here. Nicholas, maybe I'll start with you. A little bit of a similar question, but just a little bit more specific. As you think about new customers in the lending solutions business, what have you typically seen in terms of new deals, new customer wins during rising rate environments? And what I mean by that is, You know, is a rising rate environment sometimes a catalyst for a bank or a credit union to invest while interest income is better? Or do they maybe handle their investments differently in a, you know, rising rate slash kind of more uncertain environment?
spk03: Thanks, Zach, and a great question. And if I may respond, I'm actually weaving some comments to the two previous folks who asked questions as well. Our take is on the consumer lending side. The overall trends remains largely unchanged. And Chad highlighted the QNAP data that is as recent as April. And we continue to see FIs making continued investments in digital transformation. In fact, I would say coming off from our user forum last week where it was nearly a thousand folks interacting with us at a high pace for four days, I walked away with some very very strong views on a lot of our customers are embarking on a journey and this is a multi-year journey and they are rethinking their business um to be on the digital transformation bus so to speak and some have made some real steps forward others are kind of getting into it and i believe that with rising rates it creates an opportunity for our core los customers um which are depository taking institutions to differentiate them differentiate themselves here in the lending market i think it's a playbook that plays into our platform and what we've been investing in for the last three four years and i would add then many of our customers are sitting on a large base of deposits that came in during times of comas covet stimulus and higher rates are a catalyst for them to put that money to work by extending credit. And in this type of environment, I feel it's a good opportunity for us to also position our new Engage product, which is focused on enabling our customers to be very targeted in their marketing, trying to focus on increasing their lending portfolio the way they choose to go do it. And on top of that, we're also seeing strong interest and a push by our customer base into HELOCs. And I expect that to be kind of a loan channel on the consumer side where those folks that will grow, where those folks want to take advantage of equity in people's homes and offset some of the refi drop. Some of them have experience. And another loan channel that I continue to hear more interest from is personal loans, and I expect that to be also a strong area of interest. now that stimulus has started relaxing. And my take is rising interest rates based on a larger than usual deposit base is a market that Meridian Link can play very well in.
spk05: Got it. That's very helpful. Maybe for my follow-up, I'll just keep it to two here. Chad, for you, you know, obviously, That conversion for the strong bookings in 21 to revenue in 22 and going forward is going to be contingent on sort of that hiring in the services organization. You know, can you just give us sort of a sense for where you are? And just as importantly, you know, what is that gross margin or cost to sales line going to look here through 22 as, again, you invest ahead of that revenue? Does that make sense?
spk08: yes yeah that makes sense so you know we are we are hiring um we were a little bit better on margin in q1 i think we were a little bit behind our overall company hiring um as well as just kind of had some deferred initiatives that kind of pushed into the back of the year but you know we did you know a full year our margin guidance is is you know in a similar place where we're going to see some some impact on 2022 gross margins mostly around adding the services resources but we think that that investment is prudent because that will bring on the revenue as you referenced that will kind of take margins back up through time because we think we're going to kind of right size the services group and then not need to kind of continue to you know add an augment going forward and we'll have the capacity to kind of convert the good growth we're seeing in bookings into revenue at the appropriate pace so um will be a bit of a drag on 22 gross margins, but we're still comfortable with our long-term margin guidance as we kind of see that being a one-time investment that pays off this year and next.
spk05: Got it. Very helpful. Thank you.
spk01: Thank you. Your next question comes from the line up Nick Crema with Credit Suisse. Please go ahead.
spk11: Hey, thanks very much for taking my question. First, I wanted to ask about the contract minimums that Chad was discussing in the prepared remarks, and if you guys could give us any kind of high-level color as to what the contract minimums represent in the 2022 guide.
spk08: Sure, Nick. So we do have contract minimums. Most of our customers still set their minimum at a rate at which they usually exceed during the months of the year. They typically pick a number that is tied to their low point in volume on a seasonal basis. And so in our guidance for the year, and many customers are substantially above their historical minimum or their contract minimum, especially those customers who have been on historical contracts that they set their minimums a while ago. So as it relates to our 22 guidance, the minimums aren't really something that we forecast or talk about in how we set our budget. We expect most customers to exceed that. And therefore, we focus more on what we think volume, our number of customers will be and the volume from our customers. But every year that we kind of bring more customers on or customers reset their minimums, that that minimum level of revenue is increasing, but it's still not the preponderance of our overall revenue streams.
spk11: Okay, got it. Understood. Thanks for the color. And then as my follow-up, I just wanted to get a sense for what kind of cost savings we could see from Meridian Link 1 being completely in the cloud by the end of the year. Is that something that we would see in gross margins in 2023? Thanks.
spk08: So from the margin perspective, candidly, 22 will be an increased cost as we move all the customers into the cloud, but still have the costs of our data centers that we're carrying until we kind of get the full movement in motion into the cloud so we can begin to wind those data center costs down. But we do expect in 23 that there will be benefits to the overall margin One, once we get our customers all in the cloud and have a better understanding for how we can kind of optimize our cloud spend with our cloud partners. And then two, the reduction in our data center costs. That will create some reduction in spend in 23. But candidly, 22, where we're both carrying the data center and the migration, we won't see much savings in this year. Got it. Thanks very much.
spk01: Thank you. Your next question comes from the line of Matt VanVleet with BTIG. Please go ahead.
spk07: Yeah. Hi. Good afternoon. Thanks for taking my question. I wanted to maybe dig in a little bit in terms of what you've seen so far year to date as rates have been going up. If there's much, whether it's mixed shift or just overall demand across or any differences between credit unions and maybe smaller regional or smaller community banks and then maybe some of your larger banks out there, just if you're seeing any kind of difference of activity within those different groups of institutions.
spk03: Yeah, I would highlight what I said a little earlier, more interest in HELOCs than in the past, also personal loans. But the bigger story is folks are engaging and very committed to digital transformation for their businesses. And from our standpoint, we continue to see high levels of activity and high levels of engagement. My My experience at our user forum was very buoyant. It exceeded my expectations in client engagement and the questions and what folks are planning on for the next year, two years, three years, the number of hand raisers and attendees and breakout sessions. I would tell you it is busy. People are looking at how to to accelerate their business in my sense right now is that the QNH data that we've referenced a little earlier is not far off. Something big would need to change in my opinion to impact the trajectory of call it Main Street America's financial institutions. All right, that's very helpful.
spk07: Any update you want to share in terms of the uptake on Meridian Link 1 and then some of the other kind of add-on modules, whether it's some of the more kind of direct targeting, direct marketing type of modules you have out there and sort of what the uptake has been on those as a number of your clients are looking to drive that interest income as much as possible? Thanks.
spk03: Continue to see great traction, great momentum with our ability to deliver a platform to our clients. Very excited to be in the cloud by the end of the year, which is going to continue to enable us to scale and do more with the platform from an overall integration analytics automation standpoint. And Meridian Link is doing really well keeping pace with that commitment. In addition, we also have had a very successful beta program and then a launch of Engage with really strong top of funnel metrics, specifically to your question on that, and expect to start seeing more of that convert in the second half of the year into bookings from clients who's leaning into the solution, leaning into automation, leaning into more data-driven, personalized lending playbooks. So very pleased with the, call it, momentum to date with what we've seen.
spk07: All right, great. Thank you.
spk01: Thank you. Your next question comes from the line of Chris Kennedy with William Blair. Please go ahead.
spk09: Good afternoon. Thanks for taking the questions. I apologize if I missed it, but did you talk about how bookings were in the first quarter? I think they were at record levels in the fourth quarter.
spk03: Again, we've seen a good quarter overall. I don't think we've announced a number of new client wins, but it was up in a decent new client win quarter for us. The business has continued to work then move forward. I can tell you we're excited about product launches. We're excited about where we're at, bringing in some new sales folks, bringing them online. So really well positioned for the year, driving growth.
spk09: Okay, great. And then just a follow-up on the Salesforce investments. Can you kind of talk about where we are in that journey and how the productivity of your investments are progressing. Thanks a lot.
spk03: Yeah, we continue to invest in the tech stack. And from a Meridian Link standpoint, we believe in automation and also efficiency gains through the tech stack as we drive scaling in the business. The investments are going well. We're pretty pleased with the systems we have and that we've been working on over the last few years. It should position the company well to layer in additional acquisitions. It will position us well to continue to add go-to-market resources in the business. Feeling good about the path and trajectory forward with it.
spk09: Great. Thank you.
spk01: Thank you. Your next question comes from the line of Alex Klar with Raymond James. Please go ahead.
spk10: Thanks, Nicholas. I wanted to ask specifically about the cross-sell of your mortgage LOS to consumer LOS customers. Now with the better integration between those two solutions, I know you named one win in the prepared remarks, but can you just talk about that cross-sell motion in particular and what percentage of your consumer LOS customers take the mortgage lending product? Thanks.
spk03: A good question. From a cross-sell standpoint, it's a great opportunity ahead of us. We see depository-taking institutions as a playbook that we're going to continue to expand on. Historically, that was not the focus. It kind of became more of a focus over the last 12, 18 months with our platform playbook coming to reality. It is... I would say still single-digit customer penetration and something that our team is focused on and driving and feel it's, from a cross-sale standpoint, especially with a focus on where the market is heading, an opportunity that will play out in our favor over the course of the next few years.
spk10: Okay, great. And then on the sales hiring efforts, Kind of referring back to an earlier question, but can you just walk us through where you stand in terms of overall headcount now and there and what kind of the target is for the end of the year if that change fell? Thanks.
spk03: Yeah, from a headcount hiring standpoint, we continue to drive hiring and I would say found some great people. in the course of the quarter, especially in a fairly challenging or a very challenging hiring marketplace to date. Excited about the talent that have joined us. We would love to see more of the same quality of talent join the company and integrate into our sales leadership and our sales and go to market motions. We've certainly built out capacity on the marketing side as well to lead on the forefront with campaigns and initiatives for our sales team. So mostly keeping pace in our go-to-market organization. Would have loved to maybe have a handful of hires knocked down in Q1, but overall no major concerns from the sales and marketing hiring we've done in Q1 leading into Q2. All right, great. Thank you.
spk01: Thank you. Your next question comes from the line of Parker Lane with Steeple. Please go ahead.
spk06: Hey, guys. It's Max Osnoton for Parker Lane. Thanks for taking my questions. I want to start just by circling back on Engage and the early success that you guys have seen. Is it really attracting a new set of customers that aren't using other Meridian Link products, or has it kind of bridged the gap and completed the package, so to speak, on Meridian Link's offerings?
spk03: It does both. But our initial focus and focus for 2022 is more on driving cross-sell and upsell. And again, referencing our user forum from last week. That was a very big cross-sell, upsell playbook for us and our account management team. And Engage was on the forefront of the discussions. My take right now is we can be more than successful and can continue to drive significant cross-sell, up-sell opportunities this year, next year, being heavily focused on the existing customer base. But that is not the playbook of the initial launch traction. It will expand and we will drive also new logo sales with it.
spk06: Got it. And then just thinking about the street shares acquisition, is that going to compliment the template-based offering you've created for the smaller business lenders? And how should we think about the size of that kind of customer group and its contribution overall revenue going forward as you add more solutions?
spk03: Yeah, we've had our own small business lending module for our platform. which has found good traction. The street chair solution is just a broader, deeper offering. And we really like what they've done with automation and decisioning and the relationships that they've built with industry partners. Um, think of small business lending as loans to small businesses of a million dollars or less. And that's kind of a very rough circle I'm going. Um, and, We've looked at the market. We know what's available. We know who we're competing against. And StreetShares, from a product standpoint, is a fantastic product. It's a cloud-native product, and it integrates well into our own strategy as well as our platform. So I'm excited to expand the small business offering that Meridian Link had with the strengths and the breadth and depth of the StreetShares solution. Got it. Thanks.
spk06: That's it for me.
spk01: Once again, if you would like to ask a question, please press star 1 on your telephone keypad and wait for your name to be announced. Again, that's star 1 to ask a question. Your next question comes from the line of Andrew Smith with Citi. Please go ahead.
spk02: Hey, guys. Thanks for taking my follow-up. I just wanted to ask a higher-level portfolio question, kind of actually tabbing on to the previous question. Street shares gives you more sophisticated capabilities in small business lending. Does it also create sort of a, you know, more of a roadmap for just adding more capabilities in general business or commercial? Just curious how you think about the opportunity in business and commercial relative to the core consumer business.
spk03: Thanks. Yeah, great question, Andrew. Our focus is very much on consumer, and the type of small business lending that we focused on is the consumer who's a small business owner, and typically the credit profile of the small business owner backs up the decision that's tied into lending to the small business owner on Main Street. The differentiation between what we do and call it more full-blown commercial lending is It's a very different decision cycle. It's a very different playbook on the commercial lending side, which tends to be focused on a lot more analysis from a financial standpoint, balance sheet, cash flow, which is typically not the small business lending that our clients are engaging in as it relates to a specific consumer. And our focus is providing more value and call it that million dollar and below market with a consumer kind of being the credit profile that gets decision.
spk02: Understood. Thank you, Nicholas. Appreciate those comments.
spk01: And I'm showing no further question at this time. I will now turn the call back over to our CEO, Nicholas Block, for closing remarks.
spk03: Thank you, operator. And I again want to thank our employees for all that they do, which was recently recognized externally by two different organizations. Our Meridian Link Mortgage product won the Procedures Housing Wire 2022 Tech 100 Mortgage Award. Our mortgage loan origination and account opening software was selected as a winner based on its innovative approach to improving borrower experience and also bringing flexibility to the mortgage origination and servicing processes and in addition to that we were also recently recognized by the american business awards and somebody knows better as stevie's for our achievement and growth on our path and leading up to successful ipo in 2021 and that's all thanks to our employees and with that i will sign off and hand it over to the operator And thank you so much for your time today, and we appreciate you joining us as we review yet another successful quarter behind MeridianLink. Have a great day.
spk01: Thank you, sir. And this concludes today's conference call. Thank you for participating. You may now disconnect.
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