PAYA - Earnings call transcript Q1 2022

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Operator

Good morning, ladies and gentlemen, and welcome to the Paya Holdings Inc., First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] A question-and-answer session will follow the formal presentation.

As a reminder, this conference call is being recorded. I would now like to turn the conference over to Mr. Investor Paya. of Head Humphries, Relations at Matt

You may begin.

Matt Humphries

the quarter XXXX morning and conference first to welcome Good earnings Paya call.

filed at assumptions, based Before everyone X-K forward-looking and we Form of refer as company's reflect our call. this Paya's statements, business objectives and that the the statements. Please be well that SEC or remind update the about release beliefs, press expectations this disclosure we today information for current on earnings with obligation events strategies, to today's discussion business, will to financial begin, will statements any statements the contain made growth occur only let yesterday no guidance, our of current made expectations and me will statements after as that undertake the end and call. forward-looking to including discussed our on forward-looking the other All reflect

more the Risk could can the Factors You press the is this This March during that XX-K and factors the differ the actual SEC. section SEC. in earnings be via to non-GAAP in discussing the results certain of the files we filed with Also X-K that our of cause available with and call our financial and release SEC call, periodic provided company's webcast. supplemental the subsequent about from discussion are of in will reconciliations in the measures filed non-GAAP GAAP performance. also financial to company reports Form learn materially today's with specific XXXX risk information

the Relations Quarter just described, XXXX section I of find can Presentation the including have website. You supplemental the Paya's information First Investor on all

the Paya's Renzulli. Hack; call on CFO, CEO, us Glenn Jeff are joining Now and today

that, Following their open over to questions. prepared Jeff. we call now With the will the your turn I’ll call to remarks

Jeff Hack

detailed reported further to in strong segment joining by continue Paya's results accelerate first the led Paya the financial efforts ACH and Thanks growth capitalize as secular quarter good to Matt, which results we’ll us everyone. remarks, the again underway quarter, and then the XX% take Integrated of Glenn results At market for you, conclusion in Thank financial cover and XXXX offerings. our and commerce, on Solution These towards questions. engines, my today, financial our our quarter. morning, payment-agnostic growth. we of shift our review Paya led nearly our two represented total software revenue proprietary this will

revenue. integrated prospective, four and ACH payments two-thirds represented For years of some ago total just over

capitalizing technology all $XX.X ramped growth investments objectives, grew first nearly quarter. growth ACH Solutions stronger XX% grew underpin product Adjusted to in performance undertake. transformation first to million, billion, with investments XX% as periods Integrated ACH us to in the are even and focus ability quarter confidence payment geared high Our to digital gives in middle capture which the of variety the companies ahead. market and cycles a people towards In on in gross market through the continue driven in volume XX% of by over in card $XX our to to million of efforts profit XX% EBITDA innovation grew revenue expectation Total volume with $XX grown our planned million. go-to-market growth $XX.X XX%. line the and we growth XX% and volume

a of the TAM. revenue. growing by continue key share to lifecycle of that capture multi-trillion these fast stepping areas dollar I We will some provide color a on to strong will us growth incremental new are through allow in these leveraging accelerate additional investments initiatives to

significantly First, our efforts. marketing we have expanded

more improves early larger opportunities qualified pipeline opportunities, increase we already our While dramatically importantly, strong which days, are in seeing ROI. both program a and with

and substantive the channels providing for is return all an highly with in-person excellent across opportunity conferences addition, of targeted In prospects. or use dialogue

hunters not our in additional drives sales to well process added customer through greatly resources improves the improved speed discipline. as these process sales we’ve Bringing in resources considerable and satisfaction. only also client sharper earlier technical revenue and support as wind sales success Second, but to quicker rates

signed the large Thanks partner our vertical, growing for markets fastest Paya. ISP, process. large the California the we property make. Health very some new and verticals. leading a drive in both organic Further, demonstrate Stockton, quarter, of on Remote added Opus, Landlord, new which witness we These of quarter our ISP. additional is this Georgia, we a to one sales first management the a government conducted with of investments fact, ability wins Marietta, partnership In cities, to focus we on Behavioral our wins we back In great our record. variety and during in key saw healthcare, rigor a signed implementations results In we across

progress proven course, experience reach. capitalize Third, who offering we thread partners. in success levers existing growth we focused ability to common continued broaden extending for pillars partners. and end-to-end and The Paya expanded resources our to helped here with an Most drive train our that thus our our these is our talent partner Paya's significantly Examples partner continue penetration to sales initiatives. opportunity attract our the exceptional accelerate of talent have client sales multiple add these forces to and three who on both vertically marketing include, client capabilities, massive our is talent, to exciting

me of to and the and our consistently, talent a part foundation efforts and innovative these innovation for continuous value laid said larger continue proposition. of combination Expanding QuickBooks we engine update One well on our in great great technology for tools Having multiyear offerings, Sage Paya's which ecosystem. these leads which our new features we've our as our support enhancements while expanding and markets also a is, invest is into add across customized to capabilities efforts, investments our funding value is strategically to partners completely are PayaConnect, in great These Acumatica, additional a as strong services clients our markets. library payout extend example agenda. and in winning for to especially solutions of partners technology, an in here new integration As BXB a continually clients. combination

enhancements as solutions partners upgrades market-leading their boarding and enable to as with our scale and and their tangible UI business Additional them efficiently they portal such expand support and to value grow enhanced businesses. add

AP Finally, and launches workflows digital clients ERP accounting bank our originating commercially payable clients market deliver portal, across will recent businesses. to QX accelerating variety accounts integrated Transcard for enables Paya accounts. automate and of a us a their to thus middle allow single within new partnership solution applications payables to a unified this solutions, AP module in software transformation

through efforts on partners year our This existing further this with focused is for of with single as are go-to-market prime said, client initial trusted solution offering another to a Our Paya and providing partnerships is partner across our in these opportunity growth. next. integrated vector revenue work every the we add side. is progress plans we while Paya AP excited our the to and partners already additional to to a extend partners AR to with larger this scale deep value day, clients and Simply and deeply technology the ERP

will years capital allocation for inorganic of we're even expect and this the a enhance opportunities serve remains further growth We come. strategy. to our making investments our will in to Layering bolster profile key organic attractive that further component

in results pleased quarter, we January and last touched we the with be far. VelocIT we acquired As couldn't more thus on

our While the positioning this in we VelocIT and small talent, already value competitive leverage acquisition and to The technology expands BXB-focused the accretive especially solutions, size, strong Paya, relationships market-leading and for VelocIT and channel. from team provided ERP client provides. that solutions adding as are our the capabilities in deliver results will additional Paya

a expect, the markets some of deals diligence natural we busy very are and As you conducting serve and would across due adjacencies. we sourcing variety on in

enthusiasm not faster that acquire businesses Our has Paya of can wavered. part to great as grow

the In fact, quite opposite.

I'll Glenn? great on All attractive Glenn and to Our tremendous it financially. hesitation. of strong and inorganic should we us gives turn to see in to opportunities ahead in see course act make where generation a detail. opportunities to financials over they us act flow walk sense flexibility through capitalize balance strategically provided cash you on free more opportunity we that to without With and the these sheet that, bit expect you

Glenn Renzulli

volume good and financial the of Thanks as growth of quarter quarter payment drivers current of the future continue was combination XX% increase led to Total integrated growth first volume in everyone. and powerful by showcase first XX%. results and ACH growth. an $XX.X solutions of of Jeff company year-over-year card morning and volume ACH Paya's our XX% the billion, in payments

verticals of larger Our the with especially. BXB quarter were strength BXB and broad-based this growth volume non-profit in drivers

QX. versus in a sequential quick QX typically volume As results lower note, seasonality card

revenue up Solutions year-over-year million, First growing non-profit Services quarter our versus up verticals. strength the XX% was led million, and last XX% ACH Integrated total by XX% XX%. was in was revenue over $XX.X $XX growing $XX.X million, revenue BXB Payment year. with revenue

EBITDA organic continue mix. combination to basis with down as strategies attach XX.X% by up quarter income for Services expenses of million in expanded Payment margin and gross prior ACH year-over-year Payment adjusted partnerships. with innovation, XX% provided million, growth with profit a versus XX% expected profit growth of our nearly go-to-market $X in share margin versus million, Gross quarter. enhance per margin. up the in operating million was Adjusted $X.XX the with as Gross margin year investments related see remained to offerings XX.X%, of prior the at prior profit $XX.X quarter the a quarter, and with up $XX.X year. $XX our versus million, We new $XX.X which Solutions product and Integrated gross the the XX% $X.XX. ACH the versus incremental was were combined cash income with first for Paragon. to up GAAP million, Paragon. first XXX the $X gross our operating reflects million, earnings $XX.X software our XX% ramping million was net up margin, strong by per the QX, in was these in with of ramp XX%. of we gross quarter partner flat proprietary Adjusted gross million the driven XX% was activities along, previous $X.X expand in quarter with was ACH expenses led and year, share. EPS primarily by in year, Paragon. net $XX.X was of Net was the a investments strong rates Services Adjusted gross of the points

of Our share the million the inclusive $XXX.X yet was diluted earn-out million end outstanding, met $X.X have thresholds. issuance shares approximately shares not that of count at quarter first

share walk-through illustrative an reference our count can of our presentation. in You earnings

cash $XXX balance net trailing million in sheet, had gross leverage of and million X.X we ratio Regarding below a with $XXX debt our times.

we continue to to out. margin will fall back EBITDA I'll guidance, year of a prepared $XXX range gross range full million, a Jeff? to expect $XXX million. concludes call over our to million close of and to adjusted the that of to Jeff, XX.X% to Turning turn the remarks. range $XX $XX revenue million within profit in my XX% That in

Jeff Hack

Glenn. the in continue for expectations a and business. strong The the balance Paya you both Thank to partners, inorganic strengthen delivered strong and investing delivering returns that, high-growth questions. for position we've we're you, on with to growth, a in our a very deliver the and financially, across take commercially sheet and excited roster are our to and of of ready have, organic to we and is results Adding non-cyclical fantastic while excitement markets our our back operator, With future, markets with ability shareholders. see in further can the our diverse investments, serve combined strong verticals. we our why

Operator

first comes James. you. Thank Our from Raymond question Davis Instructions] [Operator with John

Your line is open.

John Davis

guys. morning Good Hey.

want your little here. bit, bit there's change Just comments of little M&A. to sounds a It talk Jeff around a like, tone on a

you seeing there Just Just helpful. valuations comments any be Are in? curious, what's come driving would that?

Jeff Hack

Yeah. question. John. Good the morning, thanks And for

So, change no implied. tone

been have We enthusiastic.

We be our to about done the getting pipeline. time. right the We like continue at enthusiastic, right deals

wholesale want feel to will is, valuation. the we some question like, there, meaningful a it's but movement a change. I think we your good But regardless, near-term. sea say, M&A is in don't indications in I get implied done there in Certainly,

John Davis

on bit transaction That's then, volume a growth. consistently there. is helpful. outpacing Okay. I want ACH little And just to touch growth transaction

So be there business now? is any what helpful. ACH color just percentage of And would the

Glenn Renzulli

is about supplement John, immaterial we on XX. our a provided that revenue. released. this slide We Glenn. slide in Hey now of actually It's our ACH is XX%

John Davis

Okay. And then last one for me.

were gross although a think this margins slightly than were then better they down most and I year. little I think bit expected myself

So just come margins will year? of we the little bit from So cadence that to help implies think gross the the the trying guidance how of down should about here? a rest throughout on

Glenn Renzulli

this were we basis little full maybe have again. are see. imply Yes. we year. still for a into initially Glenn, margin, what look year. This is I I but which stronger going thought. Look, in actually we But probably think gross margin, going a not were to as think We on year year-over-year think pleased better flat strong to probably the little gross than the the than that first appropriate we as the is would a thought range maybe we yes, quarter Yes

range end So but for the of same – the full still day year. at the that

John Davis

guys. Okay. it, Appreciate

Operator

Thank you.

next question Our Bob Napoli from with comes William Blair.

open. is line Your

Bob Napoli

morning. you. Thank Good

three feel you ability versus the most maintain excited Jeff, And six and are what ago? to environment I Solid you as macro results. accelerate far organic to today growth? do about the how months possibly about as guess

Jeff Hack

Bob, Thanks. Great it's questions. Yes. Good Jeff. morning,

about of is supporting our market in growth I'm verticals what really strength. most So clients model excited core showing is its on middle our organic

all than we ever. But COVID. of is the payment the that fully think engagement to stronger changes process end-to-end occurred would the I tell digitize level prospects I know during of you

is existing partners that prospects from and penetrate. to time more at means what more attention that, and So both

be the growing like more feels and the isn't more yet, So TAM you'll it Bob the out means research new and is to But to it. even maybe more do and us bats at business. that one quickly

very and do the And terms I during in our of well the of the for to macro be also I I'll which macro, what performed been would has clients. we But the for some add of let couple remind most how constructive. continues Glenn even folks would say environment In better times challenging we general years color. last bodes

Bob Napoli

a very is you your the you. and relationship What I does AP AR Thank – Transcard AP the – the space. and And AP. TAM bit that focused what's a The does kind more talked about the helpful. this build-out, AP double potentially or on road this Paya's on guess map game more historically, plan or in of color some AP? on five-year And in maybe Paya efforts

Jeff Hack

Great it's No, question. Yes. Bob, Jeff again.

first penetration thing have we you the powerful. and with not long-term the our is I this like are technical drive have heard the most setup. partners. thing mentioned And time partnerships, AP is call on integrations on fact deep me adoption technical the already these say that side and to the And those guys again, ability this AP important a onetime deep marriages. is and move They So the the you to when very the are to from AR side have side

the those partners are our deep are that as partnerships existing So we technical largest on given because place. I mentioned in with starting makes sense, that call,

client is massive very dialogue. few it what you of, and over years, prospective adoption the to terms of tell I with next we penetration opportunity In the is produces would are obviously, pleased but pace the gauge, impossible

pleased is a time. about important together this be offering you'll long very very and talking with, going of this are We time. over for a coming to how hear us It's company joint piece the

Bob Napoli

last that might sneak I Is an -- guess just that one in, help accelerate? M&A that area I one

Jeff Hack

a and So great continue to are we maybe, you you this is, partnerships big have Maybe, said I we but together. again. case, very have partner organic In what would found Jeff before, excited acquisition. build this have it's on opportunity levers three you to and as say work we've

Bob Napoli

Thank you. Appreciate it.

Jeff Hack

Bob. you, Thank

Operator

you. Thank

with next Peter Davidson. Our from comes D.A. question Heckmann

Your is open. line

Peter Heckmann

getting from to relatively large those those were vendor the with Are the indication in Congrats going Hi, are perspective sales sector public Thanks really my large partnership good question. relationship? taking that, or metros, a municipal sales an that on software that unrelated morning. for the signed side.

Jeff Hack

it's Good for Jeff Yes. morning, Pete again. Thanks the question.

answer yes. the is, So

strong we of are of of themes and partner out and to ever like a growth we the municipal We expect well. you progress categories transformation patterns the lot selling is do distribution we coming segment, and is as know to see like going engine forward. as our terms partners. as as our that continued smaller signed solid and the pleased the of both we municipals the And in We see And COVID, direct as end a which with very in are both technology municipals both particularly all same, in direct this digital the capabilities.

Peter Heckmann

$X good That's number, I hear. Was million million in range? small but kind the And to know in a $X it's the acquired relatively of revenue quarter. that to

Matt Humphries

million. $X was it about Yes,

So for organic XX% growth the around quarter. was

Peter Heckmann

something And Great. your low guidance, the the team. kind still embedded of that's then organic rate in is in

Matt Humphries

last through Yes, quarter. exactly. organic That went implied. at is end growth as low we quarter double digits Similar, same rate

Peter Heckmann

Great. you. Thank

Operator

you. Thank

question Timothy Chiodo next from comes Suisse. with Our Credit

open. line Your is

Timothy Chiodo

two? a And break then just talk year could for maybe about about rate Paya that know taking out take so? you general trends, talk specifically maybe necessarily the volumes evolved and last seeing lot the Thanks that to, the doesn't the But I you're for segment. volumes or maybe across how by question. over those Integrated if that's just able Solutions you're in

Glenn Renzulli

Tim, this Yes. and the And you there. two we which This similar trend I spread a is Happy each in back year-over-year guys touch quarter. did pricing is the to comes aware It see are card, as point integrated we've rate rate, a increase Related solutions, not that have seen that is in integrated in continued take for basis rate increase -- we're we're second quarter. on We to also modest did in basis. Glen. a on solutions. take take seeing year action think seeing on second card in that. a mostly this stepping

volume on an rate can you And Yeah, take growing. card tell then, basis. yeah, is go implied up a that see the to that year-over-year from pleased quarter we're from perspective. So in

volume basis integrated driver volume to more a were of the card in we positive growth there is year-over-year and continue there. up So momentum the larger see on

you is organic that Solutions Another over time. digits area piece can of we growth to give mid-double it settles think rate Integrated is color where was in I in, segment tied XX%, which around

Timothy Chiodo

those definitely nice. it the of some inflationary there’s seeing model what Very markets? morning. -- you'll on I that couple benefit your from great. And end from -- in any make a comments largely Okay, that apologies your you're inflation things given you points-based a And kind missed if some basis benefit? of that of did this see But

Glenn Renzulli

Yeah. that Glenn decent still we we pretty looked but bump the as approach to I guidance the year through up and Look we'd the get somewhat to. our organically from a to again. make and ahead is conservative year. growth last year's may exited not And No, think I inflation in last that that trying second that's you we're not into right? sure XX% that's how level we we we a get were stepping as account back we same that think at constructive nice the taking quarter. right yeah tailwind at year saw occur be thoughtful happy of and exited were This year When for QX, in

not at the think in is we're our yeah maybe it. implied to that a continue past. pace we'll answer still So benefit. benefit heavy But again same still the We throughout we've it's the seeing get in seen year a the and -- guidance from

month a looked I'd to volume be April, So solid you the on a perspective. of from April other give piece color

not an like seeing change no really time same acceleration. trend. But the in we're So at

the level back. pretty others were the tailwinds, economic still same think are activity. running at with what consistent seeing still of maybe inflationary not looking were last I quarters So we couple but as There's good

Timothy Chiodo

Glenn. context. Great. that Appreciate Thank you, all

Operator

Thank you.

with Andrew Our next Securities. from Jeffrey question Truist comes

is line Your open.

Andrew Jeffrey

hone And them the bit everybody. question. on morning little I'd investments Jeff, making. nicely. laid taking you Good like a to I out Hi. you're think Thanks in the for

a where of year I this the think question year margin part expected investments ramp is are to is that's bit. a pressuring and little

one benefit reasonable to out guide, we asking expect I'm look next real year that's multiple but when as on then you Because it that of scale. thinks I the investments from revenue and is year the to looking think for next organic terms things in see it So about your of growth not we you that a should and potential those are stock? to

Jeff Hack

for morning Good this Jeff. Thanks Andrew, is question. the Yeah.

question allocation a initiatives. said say looking to and quarter that longer. this back is takes would last ties that that better One, I when things of to capital in a decision buy one earlier If some And to making the things. then we of simply couple always remind across a it So folks and things bit investment good are even you're inorganic than you're is the if want call. organic decisions, build a I to and

behind a So stand is decision. good we that that. think We

should not what terms or exactly months. binary. you the know, we like a what to cannot vantage a your But they're But it's answering few In are of either business on on were to They're they do terms point decision in are investments. our our indications are And as high, very terms our investments. see good. indicators. investment it's the said. question just directly, If are investments thoughtful that from it you intended little their We, conviction you what these bit Early year, leading of very, ROIs prove we business having ROI investments next accelerate obviously, high benefits. all the those great in in very about out of the in

very about feel to we So, business. incremental the help us these They there are scale investments. good

execution of to investment performance. course, suffice inform should importantly, next with say, incremental But how I get plans. think decisions expect is our the you as we've the investing. all us, year's the and that And share you guys with very year business with pleased know in impacting leverage great of and in that we to most the you, operating later the have we taken of will

Andrew Jeffrey

us that dimensionalize far road might opportunity ISV on progress for the there? it partners And the of to how you look today the Can like then, forward you back sort bigger down there. books. one I opportunities in updates Yes, sounds And your of be opportunity? monetizing Okay. into will selling your help terms getting Paya of be

Jeff Hack

Yeah. penetration penetrated specifically base Thank less quantify, I partners. from as partners would guys, great effectively It's kind of the backlog. The It's you, hard Jeff is of you obviously easy but Andrew. It's a run to you give But a than our question. again. vantage point. will our rates of this revenue partners the it think expect way, larger gamut entire newer math

And that about way the it your on we double is so, is the in think to penetration opportunity general, average.

you that a that if So, done those of some work the magnitude will more sense migrations significant we about technology productive terrific partners and I gives than few done larger easier. we the and migrations And to back faster chunkier and And to significant a the quarter that have of you in have ever fact, also think Paya. opportunity book larger in that to before. first these we back that. And had do you had make proprietary remind book are

always think I the don't guys But because know measured the item, I that I those absolutely the this. of be these to speed capabilities want and unlock speed size to overstate you penetrating try books. of on back technology help So, very

Andrew Jeffrey

helpful. wins? Are That's BXB those Okay.

Jeff Hack

They are.

Andrew Jeffrey

Okay. Appreciate it.

Jeff Hack

you, Thank Andrew.

Operator

Thank you.

question comes Fitzgerald. Siegler with Josh Our Cantor next from

open. Your line is

Josh Siegler

more curious, significant market industries experiencing are are Hello, good verticals, strong you end specific are this quarter. execution see Nice ticket sizes higher experiencing such that morning. inflationary to tailwinds? across I'm or there

Glenn Renzulli

is Josh, in gone average Glenn. you're ticket correct I up. Yeah, think Hey, this look, has

the presentation it's in side. see yes, not-for-profit pretty put it's side price But well. you it through we've in see the that widespread. good and think it's think that lagging see overtime first probably and on And definitely of that still one So, think the the But you side kind probably BXB moves We to BXB little it. cycle overtime the that's see see is Maybe the I those I look most where our disclosure, the I more it's sooner that trended probably we lift. definitely in of a on a benefit where page. more government us. as comes of in a lift tend as And for page been

Josh Siegler

to of to throughout Excellent. Thank much. compare guidance through you your expect the you XXXX? we improvement adjusted the EBITDA can Paya very And rest margin you us walk as margin year, how implies improve

Matt Humphries

Yes.

is at adjusted just it for right? look can of seasonality it's a in year low QX, EBITDA. Some point last QX just even us revenue in you the and

right? some So wins that normalized layer it those the side, we pricing driven we all do of see year. of that we over that the some business, in in growth partner initiatives is You in, of the penetration new most as of the that see comes overtime the off just plus the kind

So up quarter. in we seen EBITDA think indicator. revenue as it we is it models And we've think jumps it pretty how the modeling pretty the each about of good kind spread I good the and of feel last and spread street that a close is saw year we're when you about how

Josh Siegler

much. very you Thank

Operator

Morgan with We question James a Faucette Stanley. from have

open. line Your is

Unidentified Analyst

Gilion James. is Sandy on for [ph] This

called just business? just or you in the more you'd drivers highlight vertical’s just strong to and for perspective. to those a in particularly of Just Anything not-for-profit two out like across dig particular there a little as that had really terms it's whether BXB from

Jeff Hack

historically and morning. of very I BXB, think little as franchise of it's folks the vector Paya acquisition partnerships is in broad-based have a very would donation and we of also remind that faith-based construction think of from Glenn then guys which so color Thanks was strength strength continued field services manufacturing, I Paragon durable their you question. source strength. the in the donation management strong I XA. and A and quality The me added The and attractive. are good Sandy, management. for goods, Not-for-profit their know all growth Yes. this the a showing distribution, Jeff. campaign logistics, well.

through two get a as shows when reminder a midterm heading year. those And you a lift campaign work nice side. as cycle, So the the side side obviously you're by into

Unidentified Analyst

of I on from Got M&A, it. that there. color you're pipeline? function a business And in exposure? then the bit just certain we've know love informed or spoken but Would this, Thank anything a you. vertical Is that about within just little just particular targeting

Jeff Hack

Yes. Thank you, Sandy.

for I our hit. So obviously change to us like anything that priorities. reminder with an we vertical direct say into no through a allows Quick in a double-click is, Paragon sub-vertical would existing folks, did

work also the very to in continue on attractive pipeline some We adjacencies.

other So fit where to that of think Sandy, that the of those enthusiastic we're as then And in. verticals and verticals be continues and/or about. particularly one And proprietary important focus talent. very is which IP alongside that area existing is that the we an like we are closely thing,

job only VelocIT a as brought there's which it leveraging, not further lot but we accelerate knows, initiatives. some talent us incredible some the everybody think our that the acquisition technology of market highlight Paya, conversation already BXB days. are proprietary also acquisition the helps incredible I to around I of these And

So all altogether, can of part the enthusiastic. just question we to And anticipating why continue deal tie work the opportunities we're sizes. other of is understand you those

So, course. of as smaller are capital larger deals accretive, and in attractive pursuing of guys need but to excited know, we opportunities larger take you And and terms be strong as very get done, deals longer well. and to strategic is incredibly our position

Unidentified Analyst

Thank Perfect. you.

Jeff Hack

you. Thank

Operator

you. Thank

Our Canaccord. next comes question with from Vafi Joseph

line open. is Your

Joseph Vafi

solutions Thanks. versus us now great around answered, there's morning. have questions idea. perhaps Paya’s guys. but Good where Nice see in go-to-market Greenfield you incumbent? Hey, penetrated feel back Could my already opportunity. in give circle a AP been results. for your base your AP perhaps maybe there an you how It's other to a how Most just of partner and maybe

Jeff Hack

Joe. question. a morning, Jeff. That's It's Good Yes. great

been how than lot would the is the opportunity which starting is base. AP more first characterize partner in has automation like as penetrated So is already a I far looking AR penetrate put place. to which automation, with point,

find only very the attractive but after people it, who a innings. Obviously, relatively opportunity early we is that to not go this are TAM. So large

Joe, which the is And corporation. The AP stage important penetration a plays is at is experience as to middle market mentioned level, call enterprise is, terms different significant remember not other which very of event key finally, early AP the the market. is is, here earlier or where in the digitizing in I is evolution Middle than for a thing, decision and a the opportunity. is the Paya very of in

revenue. basically to commercially terms how capitalizing understand and technically on and it maximizing lever is it do them both speed ability of a help big in to your So to

So, lots of opportunity.

will about talking ultimate maturity. for this We before years about asking opportunity is be anybody

Joseph Vafi

Again, Great. Thanks. got. nice have I results. That's all

Jeff Hack

Joe. Thanks,

Operator

you. Thank

We question have from Mike [indiscernible] a with Securities. Grondahl

Your open. line is

Unidentified Analyst

force? to on Any doing what's or that secondly updates the the And of the watching? on excited one the tech Real about call guys. should be stuff thanks you're sales out then Hey, there quick. investment side you're we thing number

Jeff Hack

Jeff morning, again. questions. it's Both Good Mike, great

implement of with been force sales remind of So I combination is progress will go folks penetrate the who market to and digital who sales very pleased the farmers structure how of quickly sales talent, successfully. in that customer – partners base experience new helps partners understand which force, existing hunters, terms the the the middle these to very and it importantly of after partners success the a making. the we've do and

into the pipeline know, qualified that And year. strength. execution investments So think made we've I continued very sales of pleased invested with the is on That getting you of on the frankly, those enthusiastically. in things quality through all of incremental that, so teams a you of process, pleased quickly more front. things the maturity we you the component is moving opportunities this tell the and pipeline And I the have all significant and pleased very that as which very would know three, all evolution more

what terms children we investments most excited In which technology love little the your about asking, that's you of a and harder. of most. It's are like

making we of the all by verticals. investments, very excited We our are in are core

the So a tailored front-end delight. exciting may may, think before not some but and huge UI very of source we've it's use whether funding talked that of the to refreshed you, is sound exciting to or all client case is of tailored flexible I a

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Unidentified Analyst

Thank you.

Operator

in like I'm for the closing queue. I'd the Hack turn And Mr. back other questions Thank to showing call Jeff you. to no remarks.

Jeff Hack

very we great today to us are hope Thank pleased Great. everybody very have Suffice say, initiatives. you much. day. our and for progress a thank you with with and results our our We joining growth

Operator

today's for call. participating. you concludes Thank conference This

Everyone have disconnect. You day. great may a now

Paya (PAYA) 11 May 222022 Q1 Earnings call transcript