Paymentus Holdings, Inc.

All participants are currently in a listen-only mode. There will be an opportunity to ask questions following management's prepared remarks. If you'd like to ask a question on today's call, you can do so by dialing star 1 on your telephone keypad. At this time, I will now turn the call over to David Hanover, Investor Relations. Please go ahead.

Thank you. Good afternoon, and welcome to Paymenta's second quarter 2024 earnings conference call. Joining me on the call today is Dushan Sharma, our founder and CEO, and Sanjay Kalra, our CFO. Following our prepared remarks, we'll take questions. Our press release was issued after the close of market today and is posted on our website where this call is being simultaneously webcast. The webcast replay of this call and the supplemental slides accompanying this presentation will be available on our company's website under the investor relations link at ir.paymentis.com. Statements made on this webcast include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements use words such as will, believe, expect, anticipate, and similar phrases that denote future expectation or intent regarding our financial results and guidance, the impact of, and our ability to address continued economic and geopolitical uncertainty, our market opportunities, business strategies, implementation timing, product enhancements, impact from acquisitions, and other matters. These forward-looking statements speak as of today, and we undertake no obligation to update them. These statements are subject to risks, uncertainties, and assumptions that may cause actual results to differ materially from those set forth in such statements, including the risks and uncertainties set forth under the captioned special note regarding forward-looking statements and risk factors in our annual report on Form 10-K for the year ended December 31st, 2023, and our subsequent quarterly reports on Form 10-Q, including our Form 10-Q for the quarter ended June 30, 2024, which we expect to file with the SEC shortly and elsewhere in our other filings with the SEC. We encourage you to review these detailed forward-looking statements, safe harbor, and risk factor disclosures. In addition, during today's call, we will discuss certain non-GAAP financial measures, specifically contribution profit, adjusted gross profit, non-GAAP operating expenses, adjusted EBITDA, adjusted EBITDA margin, and non-GAAP net income and earnings per share. These non-GAAP financial measures, which we believe are useful in measuring our performance and liquidity, should be considered in addition to and not as a substitute for or in isolation from GAAP results. We encourage you to review additional disclosures regarding these non-GAAP measures, including reconciliations of the most directly comparable GAAP measures in our earnings press release issued today and the supplemental slides for this webcast, each available on the investor relations page of our website. With that, I'd like to turn the call over to Dushant Sharma, our founder and CEO. Dushant?

Thanks, David. In the second quarter, we saw record revenue, contribution profit, and adjusted EBITDA, all exceeding our expectations. Our revenue was $197.4 million, up 32.6% year over year, and our adjusted EBITDA was $22.5 million, up 58.6% year over year. These results were once again ahead of our long-term targets of 20% revenue growth and 20 to 30% adjusted EBITDA growth. Contribution profit for the quarter was $76.5 million, which was up 28.3% year over year. Almost half of all incremental incremental contribution profit dollars dropped to the adjusted EBITDA line. We are very pleased with this performance given we also grew top line over 30%. As a result of our growth and operating leverage, based on the rule of 40, we were well ahead at 58. As you may recall, we had similar performance using this high level metric last quarter. We exited the second quarter with strong bookings, backlog, and pipeline, and as a result, feel confident about the remainder of the year and our long-term outlook for success. It's quite remarkable that we have built a durable business where we have been able to consistently deliver solid growth, gain market share, expand our total addressable market, and enhance our innovation framework while at the same time expand profitability with our strong operating leverage. Let me now talk about our operational performance for the quarter. Demand remains strong for our differentiated platform and our proprietary IP and ecosystem. Clients are looking for a robust platform that allows them to continue to improve their customer engagement and experience while lowering their cost to serve by replacing unwieldy processes with Paymentus' advanced platform. So with our advanced technology platform, we offer our clients the ability to be more effective with less costs. In addition, as we have discussed in the past, we have a transaction-based pricing model designed to mitigate the challenges the broader enterprise software market faces in times like these. Our platform is generally priced on a per-transaction basis where we get paid when our clients get paid or when a client initiates a payout transaction. This approach has served us well both in good times and in not-so-great times. In addition, this model provides clients a great partner in Paymentus where the interests of both parties are directly aligned. As a result, we are seeing continued momentum, primarily based on the strength of our innovative technology platform, pricing approach, and a profitable, high-growth public company profile, all of which are very attractive to enterprise clients across all verticals, including those clients that have traditionally not outsourced to any vendor. This quarter, we also delivered another period of strong bookings, When combined with our success in first quarter, we are significantly ahead of where we were this time last year and well positioned for the remainder of 2024. Based on the feedback we have received from investors, we wanted to provide a broad and diverse list of verticals represented by clients we booked this quarter. We have signed clients in government services, utilities, banks, credit unions, insurance, telecommunications, property management, healthcare, and education. Many of the clients in the verticals identified above are large enterprise clients. And much like our bookings, we also continue to add channel partners across various verticals. During the quarter, we signed partnerships in insurance, healthcare, telecommunications, and government verticals. We believe these new partnerships, combined with our extensive partnership ecosystem, improve our sales efficiency and continue to add to our momentum towards growing market share in an industry that already has a huge total addressable market. Now on to onboarding activities. Our onboarding velocity also continues to improve, particularly our ability to onboard large enterprise-level clients and corresponding complex and sophisticated workflows. During the quarter, we are thrilled to have onboarded a substantial number of diverse clients. We are able to do this because our platform allows us to offer services to all verticals, yet another facet of the strength and flexibility of our technology. This quarter, we onboarded clients in verticals including government services, transportation and logistics, utilities, telecommunications, insurance, healthcare, banks, and credit unions. Many of these clients were large implementations. We are pleased with our improving implementation efficiencies and with the year-over-year growth of client onboarding, both in terms of number of clients and onboarded revenues that we generated. With that, let me turn it over to Sanjay for detailed remarks on financial performance. Sanjay.