ProntoForms Corporation

Good day and welcome to the Pronto Forms Corporation third quarter 2021 results conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Associate Director of Investor Relations, Corey Cohn. Please go ahead, sir.

Thank you, Bettina. Good morning, everyone. Before we begin, I will read our cautionary notes regarding forward-looking information. Certain information to be discussed during this call contains forward-looking statements within the meaning of applicable security laws, including, among others, statements concerning the company's 2021 objectives, the company's strategy to achieve those objectives, as well as statements with respect to management beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance, or expectations that are not historical facts. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management and is subject to a number of significant risks and uncertainties that could cause actual results to differ materially from those anticipated. Also, our commentary today will include adjusted financial measures, which are non-GAAP measures. These should be considered as a supplement to and not as a substitute for GAAP financial measures. Reconciliations between the two can be found in our management discussion and analysis, which is available on CDART.com and our website. And finally, please note that we now report in U.S. dollars. All amounts discussed today are in U.S. dollars unless otherwise indicated. On that note, I will pass the line over to our CEO, Alvaro Pombo. Alvaro, please go ahead.

Hey, thank you, Corey. Thank you, Bettina. Good morning, everybody, and welcome to our company's conference call. Before I hand the call over to our CFO, Dave Croucher, to discuss the quarter's financials, I would like to take some time to discuss the ProntoForums business. We are pleased to report that our annual recurring revenue, ARR, increased by 3.2% in the 2021 third quarter, following 4.7 and 4.2 in the first and second quarters. Q3 growth in bookings was reduced by 1.1% churn caused by the discontinuation of our Mexico operator reseller agreement. This discontinuation is similar to what we saw in Q4 2020 with AT&T, but at the reduced scale, and it's almost the end of this legacy channel. The discontinuation has the benefits of improving the quality of our base and focusing on the right type of customers. We continue on the journey of scaling our sales process, primarily around enterprise expansions. The combination of Mike Kramer, our new CRO who joined us in July, the deployment of more sophisticated playbooks for expansion, better use case description, including tangible evidence of hard ROI, much clearer execution, good NPS, and closeness to our base are telltales of our evolution. The company has a steady growth curve, has the enterprise base, and has successfully done large expansions. We will accelerate growth to the next level when the above operates at scale. Those who attended Empower 21, our user conference, saw evidence of what I'm describing. Speaking of customers, I want to reference a few great examples. The Fortune 500 oil and gas company did an initial deployment of Prontoforms in partnership with a leading EHS, environmental health and safety provider, and quality solution to 700 field technicians to support their asset compliance and leak inspection workflows. The Fortune 500 energy supplier deployed Prontoforms to their technicians to achieve a step-by-step delivery workflows transparent customer service, and report generation capabilities. Also, the Fortune 500 building material supplier expanded their commitment to ProntoForms by over 150 subscriptions. They use ProntoForms for quality and safety inspections with data collection that fuels operational analytics. Last, a global leader in fuel storage deployed ProntoForms to support their QA inspections and asset management workflows. Front of Forms is connected to their field service management platform. These are some of the examples of positive business outcomes that companies derive from our product, as well as the diversity and the continuum of solutions that people realize when deploying our product. I'm very happy with how our product is evolving in support of our strategy. Over the last quarter, we saw the deployment of features that facilitate our integration with Salesforce. We made further investments in that partnership as well as with Service Max. And we are seeing great benefit of both new business and expansions with them. We're also packaging better the use cases we thrive in, as well as improving our ability to tell these stories within and across verticals. Everyone, rightfully so, is concerned about people these days. People and culture have been one of the key pillars of our company. We continue to amplify this great asset by investing more in people. We are recruiting for experienced enterprise sellers, so we're raising our sights to attract top talent to work for a great and experienced sales leader. Also, for technical resources, there is an increased demand for them. These people follow good teams, with modern development stocks that deliver appreciated innovation. And guess what? We have those in place, too. I believe that environments with clear and segmented employee value propositions, underpinned by genuine trust, transparent culture, shared sense of purpose, and growth with equitable pay will continue to attract and retain good talent. As CEO, I'm proud of what we continue to achieve. We are going to accelerate our pace of capturing this great market. It is an exciting time to be in this industry, but even more exciting to be servicing those field technicians that serve us all the time. I will now defer to Dave to discuss our financial resources. Dave.