- Earnings call transcript Q3 2022

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Tom Baumann

Good afternoon, everyone. My name is Tom Baumann from FNK IR, and we were recently retained by Intellinetics. I am pleased to welcome you to Intellinetics 2022 Third Quarter Conference Call.

Before we begin, I would like to remind listeners that during this conference call, comments made by management may include forward-looking statements regarding Intellinetics that are not historical facts. These forward-looking statements are based on the current expectations and beliefs of management, and they are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. to forward-looking duty no undertakes update statements. any Intellinetics

our well that actual statements, in not results different value. in be the companies. by March and press be turn financial more the for yours. will results today refer in information call management other Condition and differ the contract Non-GAAP annual measures, cause Discussion to report non-GAAP factors about as issued caption measures isolation as GAAP release are forward-looking with from between the A in For to filed section of value uncertainties be XX-K call. EBITDA now accordance can reconciliation Jim risks measures found other financial and on Operation a on to Intellinetics President to under Intellinetics as would intended XX-Q James, today DeSocio, CEO. the uncertainties issued such over Risk or call today's Also, XX, Results will I may total contract all materially today. described may total With non-GAAP the and prepared like and and the Analysis and press Form risks Financial the XXXX, that as substitute GAAP in and considered presented and and that release and measures said, be to financial Factors filed please included Form discussed on please adjusted discuss Management's note non-GAAP today, from of call in is

Jim DeSocio

are a Intellinetics, profitable path This further sustainable Tom. was quarter growth. you, a demonstrating that for we on Thank for strong

growth, Folder year. in April and part growth to success tremendous We sequential we SaaS due than Yellow faster the closed acquisition, and to of revenue continue of large this our consolidated which revenue in year-over-year our drive growing the is revenue

Folder, Yellow it XX%. acquisition grew with grew revenue year-over-year XXX% and Our organically the of SaaS alone,

We cross-sell efforts Folder integrated to expanding. are have Yellow effectively successfully and our services

and of invest with into in markets cross-selling, to goal and capabilities marketing further our the We markets. effective continue new sales penetrating our expanding existing enabling

last of from was $X.X perspective, XXXX. momentum of As already of into into bookings investments, XXXX, is the team continues months giving this value. strong contract million, over as are of surpassing less. of contracts meeting X an the all well revenue particularly with professional and in total result these Since Yellow $XXX,XXX the to acquisition, of the our sold and expectations. in contract contracts year total quarter our have a new we and Yellow growth X contract pipeline us grow, SaaS Through a Folder or head pipeline value year. generally orders The total as worth $XXX,XXX recognizable we these closed services our year XXX April in Folder end estimated value contributing just and the to of

Yellow Our than this K-XX Folder. market since SaaS our over doubles K-XX now districts, acquired significant operations presence in generating more we revenue, has vertical XXX which

provides this cross-selling increasingly of shareholders, does EBITDA our market. its base, a in via Intellinetics high-margin the expanding revenue opportunities. is It services. for enhanced each acquisition recurring with our Folder scale Importantly, meaningfully addressable Not Yellow for these but opportunity our was for revenue also only and it and our excellent is clear districts SaaS Intellinetics transaction additional an more expand target business acquisition that

Folder conversion customers on Yellow contract quarter, of the document we for cross-sold $XXX,XXX. value total During X

markets. component and our portfolio Another growth products of is strategy of broaden addressable our to our

or payables adoption our core drive this, of solution automation we IntelliCloud part IPAS. As of to continue

this complex cost year. enterprise for financial launched reminder, earlier platforms new automation payables IPAS software a a very class As IPAS with solution was is accounting.

Homebuilder collaborating $X awareness market. Constellation IPAS, part family the are software the with Homebuilder We especially Systems, in broaden Constellation for billion to of

adjusted new highlight consecutive shared that, story will As next, like on our EBITDA consecutive quarter XXXX, In In our non-GAAP I'd the IPAS $XXX,XXX, marks adjusted to review measure speaking $XXX,XXX. XX% the third customer and solution. a exceeding minute, of their the part financial QX investment of the EBITDA. success details XXXX. a results This Joe reported we of of of quarter to up from but positive ninth eleventh return this on quarter

us Our and profitable on team to sustainably company, continues acquisition organic made and inorganic deliver a growth the the has entire synergies.

expand. like are to time, our to It's and opportunities call the turn an well sustainable at market positioned Joe growth At Spain. Chief time over Officer, Joe? the Financial profitable exciting continue Intellinetics. this We for would I to

Joe Spain

Thanks, compared our Total results financial the to the year. same XXXX. James. review third XXXX, now quarter period I $X.X for million as to September for the quarter for increased revenue ended last will $X.X of million XX, XX%

in our presented on operations. revenue of our statements of are components order Following the the

The is which same million quarter which revenue, quarter. services from period from Recurring makes the case Yellow for and this decreased year. software $XXX,XXX make period to our the for is on-premise to XX% continued shift cloud plus of differential the revenue, to this of very higher more Organically, cloud revenue the $XXX,XXX our is a the X% partly for also from $X.X as hosting $X contributed the as which Professional organic as customers Yellow maintenance expected, increased of year. SaaS, third rapidly cloud from shifts toward software given inconsistent $X.X comprised revenue migrating last revenues. increasingly component year Software from toward growth last to XXX% to SaaS $XX,XXX increase. shift quarter Folder, noted in same versus comparison attributable revenue the for revenue, overall solutions services solution grew same on-premise at swing solutions the of of to license can period solution, Folder the small including Every X%, we ongoing Without our SaaS. significantly migration year. resulted maintenance lieu revenue well. comprised last XX% than perpetual services last for solutions. quarter overall million to The for $XX,XXX decreased maintenance million in strong the revenue was the

a to revenue revenue winter. by in XX% professional of percentage services compared decrease As our total challenges driven the decreased Sciences and for at subsidiary XX% period after same total of ramping was revenue over Omicron the quarter for year. workforce reductions revenue, total The up to professional the Graphic services of last

fully We XX% reflects up $X for increased retrievable increase Net the grown last 'XX million for sales, QX quarter $X.XX $X.XX $X.X $X.XX the other outstanding or per our nearly This XXXX. to $X.XX as increased offer third This the per expected the and 'XX. last investments as in April quarter of gross share the for Operating team was marketing for per $X.X or shares, to increased point private shares and private the the million X.X XX% a share compared $XXX,XXX X% net a share earlier. of and as for compared increased to lagging to added have QX compared but a result is capacity offering I'd to per quickly total staff Sales $XXX,XXX revenue last per X, and to A period for margin marketing $XXX,XXX I the for by share year. in $XXX,XXX share the Overall, expenses the was quarter $X maintenance the X, last in EBITDA expense has professional EBITDA preview same per was get and production for per to driven million period compared $XX,XXX $XXX,XXX ‘XX, term diluted period $XXX,XXX of our quarter or year X% 'XX. in to reiterate compared mentioned to which expenses million basic in XXXX. diluted an by $XXX,XXX the during basic $X.X of like James' in which X% and prior income a Storage as to $X.XX incremental The period our and compared for to quarter compared Folder the compared to with out Interest in year. revenue of QX third our in decrease this compared strong quarter earlier, diluted for added modest expense backlog, shift Earnings due key $XXX,XXX for income million in was same year. $XXX,XXX, up mentioned. interest 'XX to largely XX%. The increase $X.XX factor year. we services million Yellow April was placement and just to increased toward outstanding services increase addition number were Cost couldn't of To A the adjusted past. QX growing total to in same in which on for Folder. the I higher-margin income that mix the for adjusted the at diluted share was placement increase to from share James XX% addition year. Yellow debt. the net of SaaS same of expense XXXX. an quarter solutions

accounts had to receivable September balance million sheet. of $X.X company turn the cash I'll of review At Next, XXXX, Intellinetics and $XXX,XXX. net XX, of

including an including of $X.X assets of million million, liabilities in acquisition. part September Our Yellow in other XXX,XXX. about All total were million $XX.X principal Folder Total million, assets $X.X increase as in and totaled XX. as the assets of debt $XX.X intangible goodwill were million $X acquired

raise brief risks we and we we you X, As outlook. earlier, With continue this assumptions to we adjusted I for private of EBITDA with uncertainties filings and of capital And Based in XXXX, I our I open described to due plans basis. expect added $X $XXX,XXX Q&A. Yellow revenues from on current total on in assume. the all grow added time, wrap our would want in part we $X.X to deferred and our up Folder, we call, our to at and financial up revenues, a as in mentioned XXXX we to million. Tom? to this like million debt subject where on listening. that, their thank year-over-year call contracts SaaS April a closed in from stemming offering Also, on

Tom Baumann

open your now is for call The questions. Joe. Thanks,

If that bottom raise line. or please open to the to the alert to icon, ask need speak us a the your raise use submit a your Please question, of use the widget today's will if to hand Q&A call. we to your like you icon hand you'd note, screen your you'd like use question at on

or icon asking wait ask icon. begin Q&A we'll gentlemen, a question. you Again, raise want So please hand you to your ladies your to call just on and use for question, us to if the

There Okay. time. are questions no this at

So I'll to call the over Jim. back hand

Jim DeSocio

you come grow summary, few and Thank effectively helping Tom. us the a pieces was model. to we revenue, years anticipated, assembled again, shift SaaS sustainable us cross-sell That In as together to this past more have shift a quarter. enabling profitability. have strategically predictable more drive we over is The strong

We as and well by are future We the excited and and longtime our appreciate attract results. of shareholders opportunities. delivering our is strong Intellinetics financial about investors aim support consistent to where continued new

FNK visibility our New the enhance markets. American we Stock the our to us capital engaged end to and to uplisting help the IR third Following Exchange the subsequent York quarter, within of

to community. our It forward our speaking will investment for Thank and weeks and recurring coming with today, revenues create for to months, conference you is the continue shareholders. on next increase engagement value to again working be joining us our to Over transparency and goal the look we our call. and we grow

Tom Baumann

reading and going to question were get you did would internal Thank Mike sort like we of your you. XXXX forward? visibility remarks a growth your what James, -- while closing discuss is

Jim DeSocio

Well, we forward-looking usually visibility. don't Okay. give

next Things past. the for haven’t good We year. look very

you've the our year We're on bullish release. seen very earnings continued As growth. and next

Tom Baumann

Thanks.

look your more Let's color a it here closing some statement. while on like reading give has it Todd give Can one Blue in more you questions because you're minute does some question, coming IPAS? are

Jim DeSocio

hundreds product niche can. Software, you Constellation software IPAS purchase Constellation that of in and $X with ERP company different I very that certainly is Canada of Software. we're working out billion a companies, Yes, know, is I most markets. has exciting exciting software they that a individual don't companies if

people launch construction of working with marketplace. their to one in accounts are to end. It one count supporting We worked does some to those those the reduction is invoices, process called products. organizations it you very And we've the to very Close homebuilding It automate payable, the do customers. IPAS of have is processing IPAS we've some status, which in the life What levels. reduces it number -- closely cycle automated actually building with or the and end documents the service them XX%, Constellation -- improve of increases visibility to recognized and of large a head streamlines into invoices. to entire just with of

a the at is last potential very it Constellation nice So and Homebuilders' forward. week, meeting of Meeting going customers just Annual product, we're hundreds

Tom Baumann

you, call. conclude session the It Jim. the Q&A and Okay. Well, thank wrap does up

So thank for you, everybody, in. dialling

Jim DeSocio

everybody. Thank thank Well, you, you.

Here look for in great year XXXX. a

Intellinetics (INLX) 15 Nov 222022 Q3 Earnings call transcript