Kldiscovery Inc A

ladies and gentlemen thank you for standing by my name is brent and i will be your conference operator today at this time i would like to welcome everyone to the kl discovery third quarter 2022 financial results conference call all lines have been placed on mute to prevent any background noise should you need operator assistance please press star 0 on your telephone keypad and an operator will come online to assist you thank you it is now my pleasure to turn today's call over to don wilson Chief Financial Officer of KL Discovery. Please go ahead.

Thank you, operator. Welcome to KL Discovery's Q3 2022 conference call. Today's call contains forward-looking statements. These statements are not guarantees of future performance. Actual results may differ materially from these forward-looking statements due to assumptions, risk, and uncertainties that are described in more detail in our earnings press release issued yesterday and filings with the SEC. CAEL Discovery undertakes no obligation to amend, update, or clarify these forward-looking statements made as of today unless required by law. During this call, we will also present non-GAAP financial measures, such as EBITDA and adjusted EBITDA, which were not prepared in accordance with GAAP. Reconciliation is the most directly comparable GAAP measures to the non-GAAP financial measures are shown in detail in our press release issued last night, along with definitions for those terms and a discussion of certain limitations. Management believes that our presentation of non-GAAP financial measures provides useful supplemental information to investors regarding our results of operations. Our non-GAAP financial measures should only be considered in addition to and not as a substitute for or superior to any GAAP measure. Please refer to our press release on how to access the replay of this call. I will now turn the call over to our CEO, Chris Weiler.

Thank you, Don. Welcome to KL Discovery's third quarter 2022 financial results conference call. My name is Chris Weiler, and I am the CEO and co-founder of KL Discovery. Thank you all for joining. In the face of stiff winds coming from severe macroeconomic conditions, geopolitical uncertainty, and a Fed aggressively fighting inflation with rising interest rates, the KLV team is hard at work implementing operating efficiencies in our business while still investing in the future. We are consistently creating new features on our offerings and identifying ways to improve our world-class client experience, which differentiates us from other service organizations in the industry. We continue to execute our strategic plan and strengthen the company and believe we will be well-positioned to capitalize on our investments in our growth when the external factors of the world has been battling ease. We achieved $74.5 million of revenue in the third quarter, which is down from the third quarter of 2021, but in line with our second quarter of this year. Consistent with our strategy to drive future growth, we continue to invest in the business. Given the stable nature of our business and despite our current net loss, we are very comfortable continuing to balance responsible investment while still delivering positive EBITDA and adjusted EBITDA. Our existing customers and potential new clients I speak with are impressed with Nebula. All of the key Nebula utilization metrics we monitor are up year over year. We are also getting very positive feedback for our client portal. Our client portal continues to evolve as we develop new features that we believe will drive adoption and increase the value it brings to all of our legal technology clients. For example, in October, we released functionality that gave our users access in real time to critical financial metrics on demand. Advanced visualization tools allow clients to group these data points by service type and soon by entity and time period, providing an unmatched level of control and flexibility. We will continue to focus on strengthening KLD and being the best that we can be under difficult economic times. I'm very proud. to be leading this great team that delivers excellence every day by keeping their heads down and working hard. I will now turn the call over to our CFO, Dawn Wilson.