KLDI - Earnings call 4 2021 | KLDiscovery Inc.

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Operator

Good morning. My name is Chris, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the KLDiscovery Q4 2021 Financial Results Conference Call. [Operator Instructions]

Thank you. Officer. Financial Chief Wilson, Dawn

You may begin.

Dawn Wilson

Welcome Thank Year QX Full KLDiscovery's Conference you, Call. operator. XXXX and to

forward-looking Today's or forward-looking materially the filings future uncertainties our performance. obligation statements call earnings guarantees no to SEC. that Actual clarify not contains due of amend, today. statements issued more to results KLDiscovery statements. are These press described made undertakes may detail risks release as with differ assumptions, from these in forward-looking are these update and statements in of and yesterday,

During press our measures to this the in GAAP. release non-GAAP measures EBITDA terms. our measures investors in call, we detail results measure will issued for night, provides adjusted this to to non-GAAP the also accordance operations. with of which in present financial on shown most Reconciliation believes GAAP useful including discussed are prepared were Management comparable non-GAAP along financial those directly regarding of not call, our definitions that with presentation financial information last supplemental EBITDA, and

financial measures should a addition as not superior non-GAAP for considered be or and any substitute to to in GAAP only measure. Our

release to replay this access to Please our of on the refer call. press how

to our will now turn Chris the call Weiler. I CEO, over

Christopher Weiler

you I you and joining for am Financial and joining. Full the Results Thanks, and very Year all much Dawn, Weiler, KLDiscovery's CEO and of XXXX is name Conference thank for Fourth Thank KLDiscovery. Chris Quarter Call. Co-Founder My

an leading of the environment. We focused, strong in areas organization The delivering is all challenging exceptional and has day. KLD business. amazing had in momentum every despite amazing an build It results staying deliver results of and an job year honor macro hard to done we this as working tremendous XXXX our continue team

can the for trusted are large fact perspective. clients a over have proud and around KLD, the demonstrate on established am chip financially both many and from partner world, I an focusing the customers. that control, results we business that and including what we so At we been of X,XXX blue

our This revenue with a highest in third difficult XX% our exceeded million. quarter history consistency company year-over-year. quarter $XX have our achieved demonstrating we in up million We $XX row, in times. revenue, And for in the is

revenue number late in Nebula XXXX, of end to an In particularly XXXX. in from We XX impressive year. $XX XXXX. years, XX% many features the to of This Nebula in the hosted versus grew only we the of terabytes Nebula million since available became increase just grown at of product the have X XXX is

increased on and in we investment technology people our our our focused XXXX, In Nebula.

We are in excited sales and about XXXX investment adoption plan of increase overall to experience the the XXXX and accelerate growth platform in further our initial to Nebula usage. Nebula for

in hopes Nebula We XXXX winner very platform beyond. transformative in have a high and for have and this

loss our XXXX. Even quarter with first the XX% by the since improved from down seen year-over-year lowest the investment, of to we increased have and XX% level is net over XXXX

We in to also generated XXXX. compared adjusted higher XXXX EBITDA

time, equity time to Obviously, not and appropriate capital remain continue to million an we more. we equivalents the will even are $XX conducive the facility. for In help but access look for at on conditions us cash to be undrawn to market raise XXXX markets ended liquidity a continue this go as grow market. we and with position and credit $XX cash Our to our in revolving to million cash intend strong future,

going opportunity relationships overview customer customer a already Nebula. significant contains for is for the an before I is potential excellent opportunity and to it. expanding very it large and have -- an our market large last scale to and Even so year, of exponentially. grow This as increases because it cross-sell you What offering. data our Late there a base. encourage KLD loyal we you We will global means to has is business. our filed read find a that continues customers, S-X share with much

have solution Nebula. technology We a and with powerful exceptional end-to-end proprietary

and and as our Singularity, on wherever however it tremendous product client-centric want. clients services all to Through easy by which models, Nebula clients deliver clients can are growth. are, is just our are our covers Nebula's delivery Most model. extremely for and one We usage-based our evidenced making capitalize price thrilled, importantly, we

be can't what accomplished we more I have so excited about far.

company. focus to great continue growing We will on this

that in We XXXX. transformational deliver by shifts can strong, pioneering have consistent financial our technology we in demonstrated legal inception results since

will profitability we great positioned for already and build the upon long-term momentum achieved. excellently have growth are We and

to now CFO, will Wilson. our I turn the Dawn over call

Dawn Wilson

you, Chris. Thank

said, Chris of the Revenue history. XXXX KLDiscovery. XX% was of to fourth in highest for of XXXX. an is quarter was the up million, As fourth the XXXX revenue This $XX.X quarter exceptional in compared company year our year

full generated year versus we an For represents XXXX, which million the $XXX.X in million $XXX.X increase. XX% XXXX,

million grew $XX.X versus XXXX. XX% million $XX.X revenue ecosystem Nebula in our year, full to the in For 'XX

We proprietary are the this platform believe be we revenue significant traction will a excellent in to that seeing from future. contributor

in XXXX investments margins Nebula, to we result the to our invest in accelerated continue longer-term marketing result, in accelerate we support in Nebula and to investment EBITDA future. of the in future in XXXX in and made and in responsible development revenues. and revenue This expect in to a R&D research further XXXX favor in As growth will growth Nebula sales declines of

fourth improvement net the In XX% decreased $X.X our loss to quarter This an net to significantly the of is of compared XXXX. our million, lowest of fourth XXXX. loss we quarter XXXX, since

a impairment $XX.X an third quarter. an in asset impact the million, net for EBITDA. intangible our of not The For impairment did EBITDA or $XX.X adjusted the full year which includes was XXXX, charge million loss

XXXX of $XX.X EBITDA was XXXX quarter slightly down $XX.X fourth the in QX EBITDA from million, million. of

compared margin XX% EBITDA QX XX% Our to QX in was 'XX in 'XX.

year, XXXX million XXXX, was XX.X%. full to compared million in of an the $XX.X $XX.X For EBITDA increase

the due QX differences XXXX XXXX restoration well mix primarily of down adjusted in quarter-over-quarter. EBITDA in of from revenue as implemented to reductions due was temporary QX $XX.X COVID XXXX, as million, XXXX,

full the XXXX, EBITDA million, in up adjusted from was million $XX.X $XX.X year XXXX. For

million Liquidity we credit cash as our December continues was XXXX, strong have facility. revolving equivalents on on XX, $XX.X nothing cash million $XX drawn to and be our and

over closing, and in the expenses of R&D beginning have past In managing the years able future. position we in the pandemic, growth loss our so adjusted while to revenue, have net for KLD lowering delivering while and to the been investing do since X we EBITDA. been EBITDA increasing

sales will favor in of invest in and and resulting XXXX, growth. EBITDA accelerated declines in in in continue adjusted We marketing short-term to R&D longer-term

call final I for to will over Chris comments. turn the now

Christopher Weiler

really that, great group a want people lead it's Dawn. thank I such for globally. fantastic everybody to to I just joining. of appreciate And

Operator

Ladies and and now Thank disconnect. you concludes you today's gentlemen, call. this conference for participating, may

KLDiscovery (KLDI) 17 Mar 222021 Q4 Earnings call transcript