ProntoForms Corporation

Good day and welcome to the Pronto Forms Corporation first quarter 2022 results conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Babai Khadram. Please go ahead.

Thanks very much, Samira. Good morning, everyone. Before we begin, I will read our cautionary note 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 2022 objectives, the company's strategy to achieve those objectives, as well as statements with respect to management's 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 CDAR.com and our website. And finally, note that because we're reporting U.S. dollars, all amounts discussed today are in U.S. dollars, unless otherwise indicated. With that, I will hand over the call to our CEO, Mr. Alvaro Pombo, to go over our operational highlights for the quarter.

Hey, good morning. Thank you, Babak, and thank you, Samara. Good morning, everybody, and welcome to our company's conference call. Before I hand the call to our CFO, David Croucher, to discuss this quarter financials, I would like to take some time to discuss the performance business. We achieved 14% growth in recurring revenue over the 2021 comparable quarter. Our annual recurring revenue, ARR, based at the end of the Q1, was $19.6 million, with 41% from customers with greater than $100K of ARR. As reported, our base decrease is likely due partially to a 1.5% enterprise reduction in ARR from the completion of a one-year project and lower new enterprise bookings in the quarter. The enterprise go-to-market transition is continuing, but we saw the effect of the longer sales cycles, typically of the larger enterprise sales, on which we're increasingly focused. However, we are pleased to report that with our recent enterprise expansion of over $100,000 of ARR, bringing that customer to a total of approximately 870K ARR. This is the kind of deal we are targeting and expecting to be more of. We're scaling conversation with our customers and how our platform can help them addressing pressing business issues like inflation, labor markets. People need to rapidly automate today. Our improved go-to-market team is uncovering more enterprise expansion opportunities. Last week, I was a keynote speaker and moderated two panels at Field Service USA, the largest show in our industry held in Palm Springs, California. The relevance of the industry is better than any year before. The need for automation is growing. Our rapid automation capability is focused on the field. primarily with large enterprises, continue to be very well received, and the main large suite of software players acknowledge the reference and addressable market of our solution. The market remains strong, and the opportunity for growth continues to be more real every day. Recently, the connection between customer experience and technician experience has become more acknowledged. and the need to improve workflows and automation beyond the traditional work order management has become more relevant. A good customer experience is made of multiple workflows that need to be iterated, coupled with the need to improve the field technician experience, combined to make the need of our product timely and relevant. Also, as field service organizations are finishing their field service management implementations, they now have more time to consider other workflows outside fix and repair, which plays very well into our abilities. Let me give you some interesting and exciting examples of what I just mentioned. The Global Heavy Manufacturing Organization increases commitment to ProntoFarms by $180K to approximately $870K. This is an organization with over 60,000 employees and billions of dollars in revenue. They use Prontoforms as a key technology driver for their full asset lifecycle business model, from new asset installation, maintenance, and recommission to replacement. Why did they select us? Our ability to scale to thousands of users with many use cases, open integration, security, reliability, and agility were key in their decision, and they continue to expand on that belief. Second example, a Fortune 500 power and renewable energy Global Enterprise deployed us as a technology starting with 450 subscriptions across two sub-divisions. Prontoform supports health and safety reporting, inspection process for wind and hydro turbines, and gathering performance metrics to enable their field engineers and salespeople. Our agility to deploy multiple use cases, seamless and intelligent connection to their field service management platforms, ability to move contextual data from the field and to the office, as well as the capability to embed rich media into automatically rendered and routed custom work documents were key factors in their choice or decision. Third example, the Fortune 500 oil and gas enterprise has expanded their multi-year deployment of ProntoForums by 200 subscriptions. for a total of 2,000 as part of a global service agreement, an MSA with us, as their sole mobile forms solution provider. The platform also provides unique capabilities for this organization, including repeatable sections, interactive multimedia, sketch, high-resolution photo capture, as well as seamless integration with Microsoft SharePoint. As you can see, the diversity of workflows beyond fix and repair are very powerful. Installation, decommissions, compliance, and safety are some of the themes, and that's why we are a standing up clear set of solution templates. Through stronger and more robust product marketing capabilities, we believe this is a key in our evolution this year. Enable our customers and our sellers to see where they can take the product next, given the global nature of their needs on these corporations, will accelerate expansions. Working together as a squad, we have a scaled customer success, community, learning, and support, and focus more energy in our large enterprise accounts. We continue to receive very good MPS scores, and the churn of this segment is particularly low. These squads are generating very good conversations and ultimately opportunities from these key accounts. Our customers are living very clear challenges. As one of the customers say, It is a lot easier to find and pay for five attorneys than a good technician. And that is just the beginning. Costs are going through the roof. So multi-year agreements, contracts that they enter into are challenging. Rapid automation is a key lever they want to activate. Which use case to deploy first? Eighty percent of the hundreds of use cases deployed with our product are implemented in less than eight weeks. Our sole task today is to make it easier for everyone and everyone to adopt. This brings me to the last bastion of our improved go-to-market, sales. The team is in place. The transformation is underway. And the main thrust is customer centricity, particularly around enterprise expansions. These changes take time, but they are well underway. Finally, the pandemic has had an impact on meeting people in person. The world is opening up and we're taking full advantage of that. Our people and culture focus continues to evolve. We're back at the office in a hybrid mode and we have been recruiting some great talent. Finding and recruiting is very difficult in certain functions these days. We have been improving our tactics to deal with the people challenges that we are all living. We are not out of the woods with that challenge. I will wonder who is out of the woods with that challenge. but continue to have a company and culture that attracts some great people. So as CEO, I'm very proud of our transition to enterprise and accelerating 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 technicians that serve us all all the time. I now defer to Dave to discuss the financial results for the quarter. Dave.