MeridianLink, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to Meridian Link's third quarter 2023 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your first speaker today, Gianna Rotellini. Gianna, please go ahead.

Good afternoon, and welcome to Meridian Link's third quarter fiscal year 2023 earnings call. We will be discussing the results announced in our press release issued after the market closed today. With me today are MeridianLink's Chief Executive Officer Nicholas Block, Chief Financial Officer Sean Blitchock, and President Go-To-Market Chris Maloof. Before we begin, I'd like to remind you that today's conference call will include forward-looking statements based on the company's current expectations. These forward-looking statements are subject to a number of significant risks and uncertainties, and our actual results may differ materially. For a discussion of factors that could affect our future financial results and business, please refer to the disclosure in today's earnings release and the other reports and filings we file from time to time with the Securities and Exchange Commission. All of our statements are made based on information available to us as of today, And, except as required by law, we assume no obligation to update any such statements. During the call, we will also refer to both GAAP and non-GAAP financial measures. You can find the reconciliation of our GAAP to non-GAAP measures included in our press release, which is posted to the investor relations section of our website. With that, let me turn the call over to Nicholas.

Thank you, Gianna. Good afternoon, everyone. Thank you all for joining us for our third quarter 2023 earnings call. I am proud to report that Q3 was another solid quarter of execution. Through the MeridianLink One platform, we continue to provide an end-to-end digital lending solution to our customers to best serve their clients. Our leading position in the market is all thanks to the dedication and expertise of the entire MeridianLink team. While we are continuing to monitor the impact of macro conditions, there are a few key drivers of our business that have not changed and help us deliver consistent performance quarter after quarter. We have a talented go-to-market team capturing strong new logo and cross-sell demand for a seamless digital lending solution that is designed to accelerate growth. We are also continuously improving the platform capabilities of MeridianLink One through product innovation, and value-added partner integrations. These drivers are evident in our results. In Q3, our GAAP revenue grew 7% year-over-year to $76.5 million at an adjusted EBITDA margin of 39%. This represents total revenue in line with our guidance range and a solid beat on profitability driven by successful cost discipline in the quarter. We consistently achieve profitable growth as we execute on a platform strategy that captures the entirety of the consumer's debt wallet for customers. As borrowing needs evolve, it remains our goal to help our customers win and retain consumers by providing a personalized, frictionless lending experience. On that note, let's move to our Q3 updates on the three areas of growth acceleration, focus on the platform strategy that field our performance. First, engaging more deeply with our customers. Second, expanding the capabilities of the platform. And third, empowering customers to grow more quickly and better serve their communities. Starting with customer engagement, our go-to-market team achieved another strong booking scorer and won an impressive roster of new logos. we continue to see the top financial institutions in our sweet spot turning to Meridian Link to reach their digital transformation goals. Q3 was a solid bookings quarter in total mortgage lending. This is a fantastic achievement by the team that demonstrates the success in cross-selling Meridian Link One at a time when mortgage rates are at the highest they've been in a generation. we continue to see our most innovative customers investing to transform their mortgage lending processes as they anticipate a recovery in volumes. On that note, I'd like to highlight a platform sale win in the quarter from a $2 billion AUM bank that signed on both MeridianLink Consumer and Mortgage to replace their existing disparate systems. Through MeridianLink One, the customer is now using our patented debt optimization tool that empowers loan officers to maximize acceptance rates, boosts cross-sell opportunities, and deepen their relationships with clients. We continue to engage with both banks and credit unions that see the value in choosing our consumer and mortgage modules together to accelerate their digital lending strategy. Another impressive win in the quarter resulted from our engagement with a 500 million AOM credit union. We chose Meridian Link Consumer, Home Equity, and Account Opening to streamline the lending process. This was a key high-value win in Q3 that reinforces our leadership position in the industry. We provide a differentiated platform that transforms the entire lending and account opening process to be more automated and personalized for the consumer, which in turn creates more deposit and loan growth opportunities for the customer. Our customers remain the focal point of everything we do and our ongoing engagement through our go-to-market efforts reflect this commitment. As we serve more customers with greater efficiency, we accelerate growth for the business. Turning to our second area of growth acceleration, expanding the capabilities of the platform through product innovation. Critical to our sales motion, we are focused on improving the capabilities of Meridian Link One to drive our customers' digital lending strategy. To remain resilient today, we have seen our customers focusing on key strategic areas, such as providing personalized support for consumers and adopting real-time financial processes informed by data and analytics. We recently announced our new point-of-sale solution for account opening and loan origination. MeridianLink Access for the MeridianLink consumer and mortgage modules available through MeridianLink One. Driven by the demand for a more personalized consumer experience, MeridianLink Access provides enhanced configurability, enabling customers to quickly fine-tune their consumer-facing processes with better control. By leveraging a new POS that maximizes engagement, customers can capture more demand and accelerate growth. We've also been innovating in our data analytics solutions to provide our customers with actionable insights for optimizing their lending processes. For example, we announced a new data solution, MeridianLink Data Connect, which enables financial institutions to integrate their MeridianLink consumer and account opening data directly into their own business intelligence dashboards, allowing for more insightful reporting. In today's consumer-driven market, being able to gain greater insights from multiple data sources and easily access key learning in one place helps our customers serve more clients faster, driving the business forward. In Q3, we also expanded the connective capabilities of Meridian Link Insight, our interactive business intelligence solution to integrate with Meridian Link Engage and Meridian Link Collect. Through this integration, Engage customers are driving campaigns and developing stronger leads from more applicant data with an improved ability to track campaigns and progress. Collect customers have better visibility of their clients delinquencies to provide a clear path forward for maintaining client relationships. These examples of innovation demonstrate the team's dedication to expanding our platform capabilities to support our customers strategic initiatives. Finally, our third area of focus for growth acceleration is centered around our ability to empower customers to compete, grow, and succeed in the markets in which they participate. We've been very successful in empowering our customers to capture a greater share of the client's debt wallet through Meridian Link One. This highlights a critical component of our platform strategy, the capability to increase the adoption of modules among our current customer base, while fostering enhanced connections with numerous partners to amplify the value of our comprehensive lending platform. Starting with strong cross-sell wins in the quarter, one of our existing MeridianLink Collect Credit Union customers with AUM of $400 million added MeridianLink Consumer, Opening, and Indirect Lending to offer a more diversified, connected lending experience for the consumer. Through these additional modules, Meridian Link will recognize over five times the amount of ARR from the customer. This is a perfect example of how the cross-sell motion that we've invested into date can multiply our revenue over time, accelerating growth as our platform strategy gains traction in the market. We were also excited to sign a multi-module deal with a 200 million AUM credit union who currently uses Meridian Link Consumer and added Meridian Link Mortgage, business lending, and business account opening in the quarter. In this example, the differentiated lending capabilities of Meridian Link One enable the customer to balance liquidity and achieve strategic growth initiatives while also winning shares from larger players in the market. Moving to our new partner integrations, we are hyper-focused on teaming up with the most innovative players in the digital lending space to empower customer growth. First, we expanded our capabilities with Experian, the world's leading global information services company that we've had the pleasure of working with over a decade. Meridian Link customers can now integrate with Experian Verify, which provide lenders with real-time access to verified income and employment information. We also enhanced our Meridian consumer and decision lender integration with Experian Powercurve Regeneration Essentials, the company's automated decisioning engine. From the initial verification process to approving the loan, we have leveraged the power of our partner network to streamline the lending process for customers. Another partner announcement in the quarter was with Socure, a provider of digital identity verification and fraud solutions. Meridian Link One customers can now securely verify and onboard more consumers in real time, eliminating friction at signup while blocking fraudulent applicants. This is a great example of how we are merging Meridian Link One, which was built to generate AI and automation across solutions with innovative AI technology from partners. We have a mutual goal with our partner network to empower the digital transformation of our customers, further improving their ability to quickly process volume. I'd like to end on an exciting enhancement to a long-standing partner integration with Cox Automotive's dealer track, a comprehensive suite of indirect lending solutions for the industry's larger dealer lending network. This enhancement takes our existing integration which expedites credit applications and decisions between dealers and lenders and delivers a comparable level of speed to the contracting process. With digital contracting, lenders can speed up funding by increasing accuracy and compliance, resulting in accelerated growth. I want to close where I began and thank the team. Their focus on empowering our customer success is the driving reason that Meridian Link continues to deliver consistent growth and healthy profitability levels. While there are macro factors out of our hands, we have strengthened our position as the leader in an extensive consumer lending market, and we still have a long runway to take share. We will continue executing on our strategic initiatives that are designed to serve more customers with greater efficiency and which we expect will help accelerate growth for the business and increase value for stockholders. With that, I will now turn the call over to Sean to talk about our financial results and guidance.