Paymentus Holdings, Inc.

and welcome to the second quarter 2025 Payment as Earnings conference call. This call is being recorded. All participants are currently in a listen-only mode. There will be an opportunity to ask questions following management's prepared remarks. And if you would like to ask a question, please press star 1 on your telephone keypad. And at this time, I will now turn the call over to David Hanover with Investor Relations. Go ahead.

Thank you, operator. Good afternoon. Welcome and thank you for joining the webcast to review our second quarter 2025 results. Our earnings release documents are available on the investor relations section of the Paymentus.com website. They include the earnings presentation that we'll make reference to during this webcast. This webcast is being recorded. I hope everyone's had a chance to review those documents. Our founder and CEO, Dushant Sharma, will make some opening comments before Sanjay Khara, our CFO, discusses the details of the second quarter and our guidance. Following our prepared remarks, we'll take questions. Let me remind you that we may make forward-looking statements within the meaning of the private securities litigation reform act of 1995, and we refer to non-GAAP financial measures during the webcast. Forward-looking statements are based on management's current expectations and assumptions that are subject to risks and uncertainties. Factors that may cause our actual results to materially differ from expectations are detailed in our earnings materials and our SEC filings that are available on both the SECs and our websites. Information about non-GAAP financial measures, including reconciliation to U.S. GAAP, can also be found in our earnings materials that are available on the website. With that, I'd like to turn the webcast over to Dushant Sharma. Dushant?

Thanks, David. Paymentos delivered another strong quarter with results that exceeded our expectations in all key areas of our business. We ended the quarter with substantial bookings and a strong backlog, giving us strong visibility and further confidence for the balance of 2025. I also want to take a moment to provide an early insight into 2026. Based on the strength of our bookings with increasing frequency of large enterprise wins and the corresponding backlog that we are busy onboarding, we have greater visibility that is already extending beyond 2025. As a result, we are feeling very good about 2026. With this level of unmatched visibility, which allows the management team to focus on creating long-term shareholder value by combining innovation together with a steadfast execution, I believe we are building something very special here. As an example, Since our revenue run rate exceeds $1 billion in 2025, and we have early visibility into 2026, we can focus on the next question that is likely on investors' minds. How do we feel about achieving the next significant level of top line revenue growth from here on out? Based on the bookings, backlog, pipeline, and the customer trends, we are seeing today, along with our expectation that these trends will continue and our proven ability to execute our business strategies, we are feeling good about our potential to become a multi-billion dollar revenue company in coming years. And I'm talking primarily about organic growth here, and this is without any meaningful M&A activity. And there are three key reasons why I believe that to be the case. First, With the advent of agentic AI, the broader technology world and not just bill payments is moving in our direction. The field is now getting wide open for paymenters. We already do a lot through our world-class platform and have tremendous capabilities, all of which will be fundamental as the world moves beyond software solutions and becomes more agentic. Let me elaborate. We have the ability to securely handle client data at a scale, manage complex workflows, and provide intelligent, actionable insights to clients about their business with deep integrations. We securely handle all interactions and resulting transactions across all interaction channels. And we do all this and more 24 by 7, and only get paid when someone uses our platform. Said differently, we are already used to a pay-per-use business model, which is likely the future with Agentic AI. As a result of our platform capabilities, our pay-per-use business model, and a highly profitable public profile, we are ready and have set a perfect foundation for Paymentus to be a force for disruption for years to come. With these strong tailwinds, I believe now is our time. Second, we believe we have everything we need to scale significantly from here on out. We have tens of millions of users, household and businesses interacting with our platform. We process hundreds of billions of dollars and handle hundreds of millions of payments. And when you combine our current asset base with the market moving in our direction, we are as excited as ever to take the company to the next level. And third, we are beginning to feel more and more confident about our ability to replace broad-based legacy infrastructure within an enterprise and not just legacy providers as we move up market. enabling expansion of our service offerings. We believe that no company is too large, no workflow is too complex, and no project is too big for us to undertake, given our already innovative platform and capabilities. So these are exciting times indeed for our business. We are looking forward to achieving the next big milestone. With that, let's review our second quarter results. Revenue was $280.1 million, an increase of 41.9% year-over-year, largely driven by increased number of billers and higher transactions. Contribution profit was $93.5 million, up 22.3% year-over-year. And adjusted EBITDA, which continues to be a primary financial metric for us, was $31.7 million. a 40.7% year-over-year increase and representing a 33.9% adjusted EBITDA margin. Once again, the majority of our year-over-year growth in contribution profit fell to our bottom line. And once again, we exceeded the rule of 40 for the quarter, coming in at 56. This reflects our team's solid execution and our focus on delivering high quality earnings together with solid revenue growth. Now I'll review our second quarter business highlights and accomplishments. Regarding bookings, this was a very strong quarter and we are pleased with the pace of bookings we have seen year to date. In the second quarter, we saw particular strength in the large enterprise segment of the market. It spread across a broad vertical base. We continue to show the diversity and wide appeal of our platform by signing clients in several industry verticals, including utilities, government agencies, telecommunications, banking and credit unions, insurance, and educational institutions, among others. Additionally, our partnership ecosystem continues to be a significant complement to our direct go-to-market strategy. We have a very efficient and productive partnership portfolio. This quarter, we added additional new channel partners in the financial services and telecommunication industries. Simultaneously, we remain focused on onboarding our sizable backlog. Our onboarding enhancements, incremental investments, as well as improving face-to-face client engagement are driving these efforts. During the second quarter, we onboarded clients throughout multiple verticals, including telecommunications, utilities, government agencies, banking and credit unions, property management, healthcare, insurance, and financial services. With that, let me turn it over to Sanjay to review our financial results in greater detail.