PowerSchool Holdings, Inc.

Good afternoon and evening, everyone, and welcome to PowerSchool's first quarter 2022 earnings conference call. As a reminder, today's call is being recorded and your participation implies consent to such recording. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the form of presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. With that, I would like to turn the call over to Alan Taylor, Investor Relations. Thank you. Please begin.

Thank you. Good evening, everyone, and thank you for joining us for PowerSchool's Financial Results Conference Call for the first quarter, ended March 31st, 2022. On the call today, we have PowerSchool CEO, Hardeep Gulati, and CFO, Eric Shander. Before we begin, allow me to provide a disclaimer regarding forward-looking statements. This call, including the Q&A portion of the call, may include forward-looking statements related to the expected future results for our company and are therefore forward-looking statements. Our actual results may differ materially from our projections due to a number of risks and uncertainties. The risks and uncertainties that forward-looking statements are subject to are described in our earnings relief and other SEC filings. Today's remarks will also include references to non-GAAP financial measures. Additional information, including definitions and reconciliations between non-GAAP financial information to the GAAP financial information, is provided in the corresponding press release, which is posted on PowerSchool's Investor Relations website at investors.powerschool.com. In addition, this conference call will be available for replay via webcast through the same website. Hardeep will begin with a review of PowerSchool's first quarter highlights. Eric will then take you through a review of the financials before we proceed to Q&A. With that, I'll now turn the call over to Hardeep.

Thanks, Alan, and good evening, everyone. Welcome, everyone, and thank you for joining our first quarter earnings call. We had a strong start to the year, laying the foundation for continued growth and business momentum in 2022. We exceeded the top end of our guidance range for both revenue and adjusted EBITDA for the fourth consecutive quarter. First quarter revenue totaled $149.6 million, up 27% year over year. And adjusted EBITDA was $42.6 million, representing a 28.5% margin. We continue to see strong demand for our products which are mission critical and core for districts to operate, empower educators, and achieve student success. We are excited about the momentum in our business and feel we are only scratching the surface of the long-term opportunity ahead of us. This continued strong execution showcases the predictability and consistency of our business model and the resiliency of enterprise schedule and market. This consistency has been the cornerstone of our success, driven by, first, the power of our unified comprehensive platform, which enables continued demand and growth through cross-sell into existing customers. Second, our track record and opportunity to continue expanding the depth and breadth of our differentiated platform. Third, our position and continued growth as a platform leader in the K-12 SaaS market for not just in North America, but also with the net new logo wins in international. Finally, and above all, the impact of our compliance-driven must-have platform has on K-12 education, which is one of the largest, most predictably funded, and least cyclical markets. I will share more details on these four key differentiated aspects of our platform as I highlight the results for this quarter. First, our unified comprehensive platform enables strong cross-sell demand of over 18 plus products into our 14,000 customers. Providing an integrated system of intelligence built on top of their system of record of all district operations and compliance. An integrated unified system of engagement for all key users and stakeholders, students, parents, teachers, and administrators, makes us a unique and essential strategic partner toward customers for their next critical needs and priorities. It is very exciting to see the demand and the conversations we are having with the State Department of Education, large and mid-sized districts, on the broader digital transformation across all elements of transforming education. For example, unified insights to provide predictive intelligence. Naviance to drive not just college but career readiness and workforce planning. Unified classrooms to improve the whole child view and student engagement. And unified talent to address one of the biggest challenges education is facing today of teacher retention and shortage. We are the strategic choice for our customers as no other single vendor can bring these pieces together and drive this transformation like us. With that, we are continuing to see balanced, consistent performance across all solution areas, with over 300 cross-sell transactions in Q1. Unified Insights continues to be our highest cross-sell growth area, with adoption in many of our PowerSchool SIS customers, like Akron and Livingston, but also in our non-SIS customers, like Marion County in Florida and San Isla County in California. Our classroom business is very healthy as customers see the value of our unified experience. In Q1, we closed on the largest formative assessment deployment in North America with the top three school districts. I briefly mentioned our selection as a vendor of choice in the last earnings. And we continue to see strong growth in assessment to accelerate learning gains for students, which has been a challenge even prior to the pandemic for many districts and states. We are continuing to see growth and adoption of our Schoology LMS. Take example, Guam, who selected Schoology for all its public schools. West Seder, the largest school district in Idaho, selecting Schoology. Washington County, a 30,000 student school district in Utah, rounded out their entire classroom suite with the special programs in Q1. Behavior is also becoming a key piece of our classroom solution. Concept School, a leading charter management organization, added kickboard behavior to their existing suite deployment. Our unified talent products continue to prove their value during what has been a difficult year for hiring and retaining educators. Cleveland, for example, added our teacher evaluation solution to their implementation, bringing them up to eight PowerSchool products deployed across the district. I'm thrilled to see the longtime customers continue to expand on our platform. It validates our ability to provide better student outcomes and transform K-12 education with unified platform. No other vendor has this cross-sell opportunity given our market share. We have only touched a fraction of the billions of dollars of cross-sell opportunity within our base. Second, We have proven our ability to innovate and create new avenues for growth through platform expansion. The integrations of our recent acquisitions are progressing well, further rounding our best-in-class SaaS platform that we believe is unmatched in breadth, scale, and presence within North American K-12. Last quarter, we added our communications and attendance products within Unified Home. Already, we have successfully sold the product to a regional Department of Education representing 90,000 students that was already using our SIS and special education products, helping them with territory-wide communication and attendance intervention. We are also excited to announce that we are bringing an integrated curriculum and lesson planning solution into our classroom suite through the acquisition of Chalk. a small technology tuck-in acquisition that we closed this Monday. Having a best-in-class curriculum management further differentiates our classroom solution and further the value of deploying an enterprise LMS to support consistent, high-quality education in every classroom. The chalk acquisition is consistent with our long-term strategy and push us one step further towards creating personalized learning pathways and expand the size of our total addressable market. There is no shortage of opportunity to continue expanding our platform. There are hundreds of options and partners for technology tuck-ins to broaden our solution, with legitimacy around every solution area in our portfolio. We will continue to expand our platform through the highest investment in innovation in our industry, in differentiated unified expediences and unified flows, Take example of a recent innovation release of Naviance CCLR college career life readiness solution with Schoology to effectively do course planning for students. Third, we continue to grow our platform leadership position not only in North America, but increasingly as a global leader in K-12. With over 45 million students reached in over 90 countries, I'm excited to announce some recent traction the United Arab Emirates, where we secured two net new full suite platform deals, which includes our student information system, our learning management classroom products, and our entire unified talent suite. In private school groups, Al-Hityat and Leva Education, representing over 10,000 students. We recently brought on board an international head of sales based in Middle East. as we see additional pipeline demand in Middle East and more broadly across the globe and will help us increase our focus on this massive international opportunity. We look forward to sharing more about our plans to tap into this growth vector in the future. Finally, the growth and recognition we see is robust, but most exciting is the impact and the level of product adoption and usage we are seeing with our customers. In Q1 alone, our customer delivered over 110 million assessments to our classroom products, showing the value of classroom solutions for all learning modalities. We have been critical in helping districts solve one of the biggest issues with teacher retention and recruiting. With 2.8 million jobs posted, 1.7 million substitute positions failed, and 1.4 million professional development courses taken within our talent products in Q1 alone. These statistics underscore just how critical our solutions are to supporting our educators and administrators day to day and our stickiness and our ability to meet customer needs as they evolve. These are just a few of the proof points that highlight the breadth and the scale of our platform. which we believe is unmatched by any other vendor in K-12 space. This will continue to grow. We had over 500 product go-lives in Q1 and currently have more than 1,700 active implementation projects. We are the market leader and the only provider of unified, comprehensive end-to-end software platform serving the K-12 ecosystem. We are the strategic choice for our customer as no other single vendor can bring these pieces together and drive their broader digital transformation like us, and reaffirms that we have the pipeline to grow within our existing customer base for years to come. I'm very proud of the business we have built. This sustainable and profitable business model allows us to generate consistent results, but more importantly, it allows us to have positive impact on education outcomes. furthering equity in education and make investments to our vision of personalized learning. We are pleased with our first quarter results and have a healthy pipeline for Q2 and beyond. Looking forward, we are very confident in our ability to deliver consistently strong results both in 2022 and beyond. I now hand it over to Eric to discuss our first quarter financial results in more detail and provide guidance for our Q2 and rest of the year.