MLNK - Earnings call 2 2021 | MeridianLink, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to MeridianLink's Second Quarter 2021 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to turn the conference over to your first speaker today, Erik Schneider, Head of Investor Relations. Erik, please go ahead.

Erik Schneider

Good afternoon, and welcome to MeridianLink's Second Quarter 2021 Earnings Call.

the market in closed discussing issued press be the after today. will results our announced release We With me are and Chief MeridianLink's Chief Executive Officer, Martin. Officer, Chad Financial Nicolaas Vlok;

conference to Before our I'd current actual uncertainties, materially. number expectations. are differ based remind of call statements company's will forward-looking results to you on we may the include like and that subject begin, These significant statements forward-looking and today's a risks

business, the please a other with future and For we obligation to file of us financial Exchange today's time to in could as factors statements our reports to we of statements. update today, the any assume are to no our affect refer such as All earnings discussion that filings law, from and disclosure made time the Securities results and release on by available and based information except Commission. required and

refer measures. GAAP we During both and to call, financial non-GAAP will the also

You press to can Relations our find a included website. the which section posted release, in Investor of GAAP to measures non-GAAP is reconciliation of our our

over me that, call Nicolaas. With the turn let to

Nicolaas Vlok

public you, good afternoon, everyone. a us on Thank Thank our first Erik, call as all for earnings you and joining company.

details Chad QX on call, will as QX and today's well I and results as During our guidance. provide our XXXX

spend the of MeridianLink but few first, story our also market and this may the to with opportunity of the a will time We business, financial you I'll covering newer since many be of highlights off results. kick

volumes customers in high exhibited still which activity, both while revenue I by to growth exceeded previously historically to mortgage am margin driven our growth interest our was our these with results, and see, our I best-in-class driven that prouder demonstrate levels continuing continued can growth GAAP which delivered year-over-year, and rates. impressive MeridianLink showcase lending margins. consumer adjusted million, of low communicated QX you performance strong EBITDA quarter couldn't report we be of the of of by QX, in As profitability pleased levels in $XX.X guidance, high and this XX%. XX% up for strong

strong be I'm of honored and such leadership organization to team. part a

marketplace, clear One people and it's is our of like that in or and inclusion. more culture would our our MeridianLink and product acceleration to employees the employees I powers their for of acknowledge our commitment and all domain in the of performance dynamic innovation industry-leading lending of Many have expertise their MeridianLink's first development. of passion differentiators XX half year. the years the and

a our for engine banks, important providers for a reporting is consumer is mortgage our leading consumer agencies, lenders, customers. institutions, platform platform of cloud-based financial lending including revenue and an lending provider MeridianLink credit and unions, and specialty growth

are We growth and have our in positioned well trajectory. a strong markets

loan and and consumers institutions. and cloud-based include solutions account software of simplifies the transfer opening, analytics mortgage financial consumer collection lending Our that point-of-sale, origination, capital between

Our a financial solution institutions. is leader mid-market in

customers Our or lenders, agencies lenders reporting consumer and key consumer mortgage are CRAs.

XX target under work between of over X,XXX over XX% banks. the $XX XXXX In of management. financial customer credit $XXX and including institution XXX total, unions and million and we assets customers, billion Our unions with leading best credit has Forbes' of

detection credit solutions software and screening. powering verification, verification cloud-based platforms and reporting, verification, asset for employment include income data fraud Our background

we TazWorks market. operational are an Our and software empower CRAs leaders Mortgage platform and with CRA products within Credit verification the Link data and data,

X our decisioning. institutions. banks financial of software successfully to have reductions, ROI cost large of providing risk compete solutions a allows growth, suite and customers efficiency improvements against reduction areas in Together, and measurable our our mission-critical of history the to We the customers revenue Tier

revenue our continue we to so customers grow and alongside And and critical them. engine customers. do We succeed, our for are a growth as

global are compete pandemic estimates U.S. our still world, institution's to The in the has for years will The in XXXX. is billion, SaaS digitalization billion billions States investing industry in software, Advisors institutions banking double investment addressable we over software services the our digital United lending independently in and Data financial XX The Cornerstone accelerated to the Corporation early currently market of to and is business. in domestic at from market financial spend industry the estimates debt digital financial transformation. X nearly International consumer that $XX and $XX relatively by ahead. total sector of believe stages largest

at risk Our and more products outdated to account less and from time. origination, point legacy replaces enable management and capable solutions platform loan reporting any anywhere efficient opening,

continue for We the to to expect in market reasons. win MeridianLink X key

including loan types, categories, lending By comprehensive. is and increasing small technologies and transformation, they originating industry. contrast, loans. struggle legacy to digital because financial our mortgage, credit consumer disparate solution rely home helps the experience platform keep that mortgage mid-market and all serving these only consumer we our many accelerate all with we nearly complete auto, our expectations lending the equity numerous In permeate loans. compete business on still remain consumer card, addressing unified win to institutions MeridianLink First, customers' personal, customers and by Today, up

more thoughtful as a is meaningful span Second, essential platform with can is disorganization. platform and drive journey, interactions. deeply experience expect needs. our integrates complex to rapid increasingly Speed and customized and intelligence lending suite solutions and access their that consumers our real-time data across platform This efficient. our and Because market a personalized the enables matter, of decisioning we a in plagued digital lending more

Third, platform modular. our is

growth streamline it allows specific strategic game a as clients select is extensive our to platform our The their of meet or our marketplace MeridianLink for customers Our can as as changer to our many extend customers to X requirements. processes. products integrated well facilitate

performance key Several the in initiatives company's solid drove QX.

in our sessions unique comes User company And with to There a Our more May Forum XX,XXX were clients offerings, place to and when over to of cumulative and learn for MeredianLink's it all attendees the expand. X attendees about XXXX Virtual continues over sessions engage than offerings. had total took for XX lending days. X,XXX and more

platform, marketing in And to our the capabilities organization of MeridianLink April, will Saylent. the integrate. data several fact, key to logo and Saylent in the another wins, which had and One and continue In we quarter customers enhance acquisition completed and solutions. expansion signings bank new also new including credit key union lending, specialty finally, for company of contributes strong continued data verification

consumer expect share recent several in grow. continue are of growth on of accomplishments, excited And will that We more to we lending about as growth. lending further our the our We to growth proud and even and key believe increases, opportunities. volume executing customers'

execution dynamics, market our in position growth are we Given positive our and our trajectory. in the confident operational the market,

multiple vectors. We growth see

First, expanding market. our target

We banks, the credit unions, community historically specialty middle on have focused providers. market, lending regional banks,

and institutions, smaller expand and solutions also we our can market include to successfully our with we resonate believe However, larger both. target financial well

traction. Our quickly newly packaged customers offering targeting gained has smaller prospective

logos. Second, adding new

are wins. to new logo high-value Our built high-power acquire sales capabilities

We are purchasing particularly investments new scalable making effective to technologies, to seek and our continue and customers clients, continues and digitally team marketing in transform go-to-market securing target sales by our new institutions more markets. as to financial in win

and our nature The existing and facilitate client continuing of retention exceptional Third, solutions land cross-sell within embedded our critical growth expand. base. to

both more functionality features retain to existing of a products inside their and and new offer and and we customers the have installed demonstrated We to ability upsell cross-sell products.

customer products our our interest in services. at a user by to attendance remains integrated forum, additional base strong recent there our more demonstrated As learn about and record

monetizing Fourth, our partner network.

marketplace bottle solutions their offers and customers a monetization with provides opportunity. of the vibrant substantial and our Our choosing vendors actionable us

institution our our third-party Our for financial access solutions partners to of act network as and extensive the customers. gateway CRA

share We via are fees, income to revenue annual the service transaction-based MeridianLink marketplace. able on fees capitalize and onetime integration

to our win. customers partners optimally customers expect win, market we to current work for position opportunities when We to in the themselves and and the with new enhance our

strategic Finally, M&A.

acquisitions: and increased leading be brings opportunity Saylent, to both. addition established and additional offering; consolidation have areas technology lending in-house adoption growth, a or developing TazWorks, will our continue capabilities analytics that indirect which adjacent In pursue months, selectively of past organically, in and to continues acquisitions we the data M&A through significant area of our our which we improved X the and XX clients. TCI, market; In CRA or own for capabilities enhancement. for customers which platform solutions a provide to position marketing capabilities

turn about our to financial over the call talk results. now Chad will to I

Chad Martin

for Thanks, before third Since thanks us overview everyone a providing model, by full our this start again and to quarter I'll second for call, Nicolaas, detail and the our to guidance today. brief go financial joining year results earnings through is and moving on in I'll our of XXXX. first then quarter

professional revenue other. Nicolaas were quarter, XX% subscription second quarter balance mentioned, coming we the of our fees, from the with $XX.X up in As and generated revenues second year-over-year. the services XX% of total million,

future visibility healthy our drives resilient have usage-based growth financial a model It provides and that SaaS our profile. performance. and is revenue recurring position We financial into

penalty. customers commit monthly years is fees Our minimum higher In customers usually contracts, incremental to Typically, over the receive long-term for applications. And transaction without they lower that purchases monthly annual commitment and per exchange of sign not monthly pricing. application commitments, any X an charge. are cancelable

grew we to more X/X like and their model at with customers, once revenue software quarter, data of solution revenues provide second used. and it In software with both can aligned lending installed software effective year-over-year. customers are our naturally We is ability XX% as total lending, platform's success. We approximately make we Our for solutions. and and this the drives and lending volume efficient more grow verification accounted our our

activity, The by software data mortgage heightened which refinancing interest to from year-over-year, increased a credit reports lower level including solutions, rates. other driven XX% revenues verification of our associated still X/X due the comes of largely

revenue contributed XX new both increased primarily points loan and of data the solution's module software XX while Second our X% in addition and solution our customers the verification TCI increased mortgage year-over-year from growth of XX quarter the of XX% of volume customers, revenues Of the and by existing were revenues of revenues. acquisitions from software through customers. remaining and points quarter, existing the generated new lending second TazWorks, the penetration market points of came

continued as gross second strong XX%. Our in economics nearly quarter the was our unit margin

and in marketing growth research and We drive acceleration. our continue to invest to and organic efforts development sales

and spend, XX%, EBITDA are in to million Even second robust marketing $XX.X significantly grew research XX% capabilities. and the more additional and quarter to XX% development. sales was spent we EBITDA Compared adjusted and in million. margin We $X.X and by this approximately marketing to investing adjusted more our our with year, build last sales

will carefully increased control we growth, profit. to revenues into convert expenses continue for and While also invest we

and interest second of $XX.X and the equivalents, $XX.X first the sheet cash down the balance After flow quarterly close used debt million lien $X.X our our extinguishing the by quarter. of the we debt, million expense ended unrestricted pay down to million million. around statement. lien end quarter, million to Turning from the IPO to in first second cash We proceeds reducing cash $XXX quarter and with the $XX of our and reducing

debt part paydown in million. $X.X of of of this As incurred debt extinguishment we a charge QX,

a $XX.X flow flow margin in the million compared ago. flow to cash converting compared a Free in incremental $X.X the second free X% flow free by second driven quarter XX% million The ago. quarter, cash cash flow. was year cash was million revenue improvement a and was a to flow year XX% Operating free margin margin $XX.X in cash operating into million cash $XX.X

by of strong will pipeline we our XXXX. providing to for now for full and guidance call robust. and year see momentum, continue the I the QX remains conclude business Overall,

million approximately $XX.X million of is and quarter, On $XX.X to XXXX. $XX.X the to XX% the compared estimated quarter total same midpoint at million an to for third adjusted of XX% third million, expected period estimated represents range. representing revenue expected is estimated $XX increase non-GAAP the be and our year-over-year. EBITDA XX% be For $XX.X in million between of margins to basis, This a between the EBITDA

$XXX.X of the year-over-year. On $XXX.X of between and to estimated represents EBITDA at a million, non-GAAP year for of XX% period For revenue and be the an adjusted million between $XXX.X expected in estimated margins XXXX, basis, full million our be compared to range. expected representing XXXX. XX% the $XXX.X estimated million This EBITDA approximately increase is is the to same total $XXX.X full year midpoint million XXXX

both TCI QX levels in and to is contributing recent the the quarters expected lending will the TazWorks line data elevated performance from mortgage Lending drag in are mortgage accounting remainder software with be quarters. to expected of refinancing modest while a the facing for seasonality the activity in activity, continue and comps year. suffer verification at difficult ahead given in year-ago slowing typical

With take and that, are Nicolaas questions. I your any to Operator? happy of

Operator

America. of from [Operator of comes Instructions] the Your first Bank question line Koji from Ikeda

Koji Ikeda

couple A me. a from Congrats quarter nice on public the as first company.

Just to the about start way that to consumer solutions. forward? X% that mix off software of on right the mortgage now going think being versus Is mortgage lending

Nicolaas Vlok

question. the don't comments and to initial the for appreciate you Koji, that please? why Chad, us, respond

Chad Martin

Sure.

mortgage lending solutions. exposure of both So the we part the our software and the for verification broke out software data solutions

was that XX% X% So quarter. verification, and data XX% on the on lending for overall

X%, through think, that the trend. for for time overall based the as renormalizes and so we just come down potentially as the consumer market will the grows market And mortgage market side, on

Koji Ikeda

it. Got it. Got

pretty and Okay. now the there volumes And rates the tailwinds the commentary revenue decline gradual indication that be then saw could sequentially. down your verification decline and begun refi And in the here? is really low software the at refi mention have has looking solutions behind revenue the rates. mostly the did some steady software mean, mortgage at both revenue been the here. that for that mortgage business holding model and data Overall you really in is I the market, some past this

Chad Martin

way leverage the -- kind impact the of market. basically is side the views -- industry forecast data So the third-party the we the business, of our mortgage with the the on on verification both and of we -- lending our

team have economists. a So we of don't

cetera, So slowdown the the Bankers to around on refinancing we're of in Association, what activity. forecasting et they're the relying Mortgage Freddie, Fannie, timing see

is as of forecast, stream revenues. in line that view, we obviously, forecast how our impacts believe, of that adjusted with So kind our for

Koji Ikeda

Got it. it. Got

question from Last Okay. me.

work trying math Just to the here.

points contribution TCI TCI about that And contribution, correct? and that's Is all of the from so implies in TazWorks. XX So million right? with $XX in consumer, that and TazWorks, growth

Chad Martin

focused growth TCI both And math TCI. to XX% of and math the your the TazWorks to in And tied up and aren't yes, So tied TazWorks the quarter, you're are mortgage. neither was XX% presume XX% I mortgage. doing those -- of right, on to

our And TazWorks of focus of part and lending in data and they're and screening. is business, our employment in solutions, and in breakdown, our the software So yes, terms auto TCI is on they auto. indirect on focused verification tenant

Koji Ikeda

it. Got it. Got

that really you And that's that out that's side, mid-teens if of great bit consumer is, organically. a backing what's loan imply the going on about consumer little there? consumer grew in I So in XX% Can organic market about Is growth guess driving the the it that talk that does the ballpark? side growth.

Chad Martin

Yes.

-- of on driving other we cross-sold combination who that business part are of parts of pricing because platform, the what's of the a we So either also on a if that model. growth platform volume-based are is customers have. or more more you solution our utilizing who remember, them, we've have upsold Or the into

new on growth also during from So monthly drive kind customers additional on those are then institution, between who was from forward. that their customers see their we customers who -- growth participate customers as new their that. we of year, in and obviously, commitment and combining for beyond volume previse existing have they platform broken the And in to to come the

Operator

Crédit Chiodo of question from next Timothy line Your Suisse. from the comes

Timothy Chiodo

quarter congratulations first first, And question. also on company. similar, again a as So similar public a the

in in quarter just higher It's nice and certain not back So to like in a teens it's the some for core thing. has just our mortgage, it growing we out into of quarters we're high of business maybe tend the seem been been even backing consumer and to LOS to the doesn't attempt out our acquisitions. It some on it the we're where we really a that assumptions now, growing And or mid- model, this does model. time back quarter. this wasn't like have business seem really rate at depending years backing

some of the quantitative could put components you that. around hoping a framework just was I

maybe up roughly year, we forward, which So business, our the market. estimates for or new And think is new you going usage, think XX% investors mentioned there's churn. our are of that that this what that customers. about There course, then, modules, about makes of little right? should total. growth algorithm There's quantitative a underlying increasing When of growth on bit end there's

Chad Martin

having growth. Yes. Similar they the conversation, to good just question. were around the Tim,

of that lot that, customers, more those that have So think not right? We right? and we in have I our go-to-market of existing you we're them it's activity base. of into much than a customer complex back that is use and selling [indiscernible] outlined, on it [indiscernible] And the pieces Getting focused to solutions. more we're existing selling functions prone to features that get more

sale additional modules. the portal, data are the [Audio to account of existing above solutions the minimum, to for introduced, of you Some lend that analytics, better is those incremental if collections, using platform, base, institution loans the volume don't the they're customer point power a the there offering Gap] having of to they're institution. And seeing against. drives incremental because for like we've leveraging if see more Gap] Again, which opening, of that revenue then drives to the customers and [Audio us account more the more that their go

seeking they're So from our solutions lending -- out or customers.

more they and more there's us the price on other things So have that as then that customer from existing base. And the well. accrues top increases of volume, to that

talk customer to that, it the that customers, motion way we're new what Nicolaas right, really on that don't. with side, adding referred getting of then we're and to success net. we and of that course, -- in over earlier, the But sure then we're into is he we kind jump volume. just in sales on And same kept the wish -- get in in success their and solution but doing there's the having remarks advantage minimum again, making their to on his above but doing have and the we all But come start and new them where may existing to they're and And the talk our customers then to here new about about solutions they're want seeing on immediately their applications churn, of of pushing trying seeing platform every our platform. the customer, customer kind customers, and right, the yes, in base, of new as loan they top we of all those again,

Timothy Chiodo

ahead, Excellent. Go please. [indiscernible].

Nicolaas Vlok

last there's but Chad that's the to expanding focus overstate XX, we've But beautifully, footprint. on of think created new XX think individuals business here. months, driving focused and over the that logo it and the in team answered about the our Not I just a dedicated go-to-market

where for to be new configure [indiscernible] associated with optionality kind revenue can that customers There's on accelerating and of that basically from a we are continue management team for and call had a both or And is those environment on about specific side, we in want accelerating SaaS think We the enabling a account expand spoken build market come, that's also really customized implementations that to partner specific progress go that what those integration. of a us. cross-sell, playbook of is marketplace to solid us Couple to teams part with funnel $X will marketplace, marketplace, funnel out real standpoint. it's think about focused teams marketing accelerating. of And haven't And are confidently. partner this of the upsell more team in into enabling with for management of yet really driving well. and roughly good sales there's a I years as we and progression. What $X.XX on to great revenue both quarter, kind an the the call on

Timothy Chiodo

first was was inorganic the the million or we and during just million QX. contributions is, roughly $XX contributions Excellent. that My believe, referenced follow-up million it from $XX $XX minor TazWorks so in TCI, to half I

some the figure? slightly for year. now still will a been thinking $XX of with earlier maybe in for higher And that do Or be something have continue strength of full to We perform inorganic along but sort should we in $XX million QX? the seasonality, you mentioned contributions their those to year, million typical line, that in the roughly about given full you modeling the range be expect

Chad Martin

not what specific have your in model. I'm Yes, you Tim,

you're upon in been in right, the seasonality, I to those I And the the call, as so mentioned and trajectory, think quarter. impacting of into we current we reports they'll fourth see backing kind have kind [indiscernible] continue we the think on expect but of where kind based the their right, for of analysis which have.

So that guidance you there. hopefully, some -- that gives

Operator

question next of from Your comes Saket Kalia Barclays. from the line

Saket Kalia

Nicolaas, my And I you. congrats for echo company. on maybe public becoming a first

Just just and first solutions bit I little be business, zoom in lending this to particularly bit. a environment could since call, competitive the just at just piece? sort was how if competitive your could Maybe that of you is about non-mortgage you little wondering it's if talk a out our backdrop if it'd the all? changed, there helpful recap

Nicolaas Vlok

been on more thank lending. integrations you but focused congratulations And really pretty enabled little the to weight large above in solutions also been well built, and that always kind banks, MeridianLink's history our when in let's the financial have large has to their changed, tailored. effective enabling we've we're here. the where punch We've lot your a MeridianLink Yes, Saket, the platform and being its The to mid-market with done a midmarket we've exciting field. compete institutions not for bit going. at historically public focused whole look on of

with more on of and be there. point, there a don't market compete some up that in kind ceiling kind winning wins we've us as Over space getting network but and keep we that larger well do, solution we or the focused of configurability partners as and integrate it, customization where and we into customization, ability into seen accounts. and we so, development, recognize full which competitors And not our part customers for call of custom helped at keep but ecosystem. larger larger that but that's years looking And partner that new moving typically transactions, are ourselves with is the our last, would the to the larger X MeridianLink those on logo

at solutions, real to market to On legacy even we rare And how and the much the that. that's something of than is side, even point-to-point where those solutions instance a offering there of bring great as end, a been tend manual in defined more kind market more replace lower-end lower pipeline we down that we are market a [growth]. implementation of integrations us have for logo solution set to institutions. terms new wins, traction prepackaged it's in our and The pretty go playbook. much for And even

seen So approval of solutions higher from lending legacy, those in our expect institutions. we typically side. the what and perspective, more point electronic would end change haven't integration, workflow you which bring on much consumer Typically, the are automated more then more than kind the MeredianLink's of to real or platform decisioning,

Saket Kalia

for helpful. very follow-up Chad, to That's it switch you, keep my just to in bit X. maybe [indiscernible]. it. just maybe a we'll And gears Got for

been margins half that first think EBITDA XXs, I XX%. least sort of almost high the have here, at in

the Can I just and in talk But culprit about investing to sense? level of in a you think Does think the some the how bit a company marketing. guide second public you puts for and the a talked about XX%. also half? takes sort are little that bit make of at about about of of there. least little sales you that high margin QX sort is costs imagine bit little I

Chad Martin

as kind the as the products. of in spend we for side. those and we've accelerate marketing right? had on success on talked referenced in -- well about sales did our continuing a to and our As Yes. basis sales investments earlier, I our Nicolaas invest new in year-over-year making Sure. R&D,

-- We on spend years continue expect versus see prior there on to to growth prior basis a and relative and quarters.

public and technology And insurance of of going platforms company. to cost cost we've who be of and kind us both in we're with yes, added just in there associated costs public kind additional layering is persons that a and of help our

of so guidance kind the with we comfortable still back to over But we're time, margin those half of back grow revenue, half long-term right, kind as that of in, the end we've on pushing continue provided -- the year. layering the it's the And previously. of

Operator

comes of Schmidt Your the Citi. from next from question line Andrew

Andrew Schmidt

quarter well of mean, Nicolaas, try to accelerate on [indiscernible] I Chad, also to from -- as want pending the hedges some side. or non-mortgage I this maintain congrats a to line. the dig to just see. a Erik, think to I mortgage first offset the me questions this are into we're around function the consumer of lot the seeing of good

It wanted I of on nonmortgage [consumer] on to the dig you've It of current or visibility lot lot like, maintaining of accelerating into put a the rate your emphasis terms in side. a So seems go-to-market, growth of clearly, improve the there. sort we're the like to can showing market. or up current sustain now, investment of should which that of be secular in in growth levels the seems seeing backdrop of that sort

and sense curious pipeline, to sort pipeline of So just sales in just between the get your implementation confident growth there?

Nicolaas Vlok

But standpoint, very acceleration please the over business company been anything seen last make when in And the years. the I'll have lending consumer we in to real X.X if some speak has done. a high-level up remarks bookings from And Chad, you I'm here, and year, add, we've strong.

really a our the focused turning healthy enabling of scaling implement. on them and pipeline to those customers services so newly is healthy We are the and benefactor to team on And in go acquired doing our and platform. and muscle backlog a

excited I'm so So far winning we're us pretty about the with given XXXX. seen in into what in we've taking success XXXX business

control, on turning can any in chain, into It's the team customer you of and relates real ambassadors not issues and possible As service winning and to focusing the sleep on deals and our of to control? the employee base is really we factions of the East supply products. our over things at. our the we are That's customers, very delivering Middle on customers our great what products the or world can. best what the focused the cannot other solution the I we Myself, customers world delivering leadership lose you it control. can don't

organization really see And curve predictable for on come our lending clients. see the that as the we've that more standpoint, bookings. of kind into last now I it's from consumer the implementing processes, -- and buoyant. rest repeatable. I'm systems, us a progression. really building has a I'm sales reality we and year is through where continued of that. year, XXXX a to behind is supporting of feel And coming think also streak becoming the or We of business can accelerating. where kind very those I the It's kind years, with of team had going We excited X.X winning on And acceleration the going be accelerating, over turning turning we've those sales to pipeline clients, organization

anything that? want you Chad, add to to

Chad Martin

I -- for live question. would structured, add and go they're just and way start implemented solution. paying customers Andrew, the just thanks until using that our are don't the are add the would the contracts our I us point

and the internal implemented. go Nicolaas of bookings about, talked has our to kind get into the sales of goes success So kind pipeline then

today success into the revenue line. will turn customers down and So the

a kind when And as solution get system. lot there's them so a want change possible, to management of obviously, like online of loan involved a implement origination we as you soon but

so gives us And that the comfort.

those of using start platform. once come then right, a then And in, more customers also of they kind

of put they future more those on or from and time through platform. types on see more take kind turn of And use the so volume as system again, we growing loan customers growth the more and

Andrew Schmidt

it. Got

constructive. very Sounds

direct lending Or additional of could you terms the nature? the side in we there bit of that be strategy and is see LOS little On to job or product adding and today, add-ons? of same pipeline larger as cross-sell larger the on to capability the opportunities in platform more towards lending verification are look the M&A good transformational maybe commercial data a recently done more that at something within or such. strategy, capabilities, But the products a

Nicolaas Vlok

that onboarded we making us on that a good XX-minute developed Erik the a strategic did really for and plan a close for us you our acquisitions. M&A years, focusing the process question. identified question. clarity capital and over provide And strategic we our really now, years modeling was Thank I'll basis it's decisions also helped back, the the About Maybe with a that give plan. and of business. priorities we playbook late X.X and business allocation to to we've started a ago in long-range to into layering started take planning we've as in It step you X in what that M&A snapshot playbook where the

Our it solutions. It consumer been the be mortgage very mean, needs can to enable And focus strategic. not lending, it fits benefit really I data consumer a consumer needs verification customers and And deals, to it's and consumer good to strategic on, saying needs it. our made If that, through or art our And yes, our to saying to no it into to because and either well add landscape. from has the the much business, service the date lending we market. it's the as you base lot transactions flow, to the customer actually platform in it there's to imagine these deal sense. is for in by of significant evaluating

in and our it drive and that would enable makes acquiring continuing we're priorities. buying standpoint. decisions look strategic sense focused building not from or partnering towards to allocation really the and help at where when And business us capital go or opportunities we've buying And made on a

transformative or a look, or looking landscape the at. we'll think adjacent they place We And come that. really for are certainly customer to M&A additive needs that anything platform for additive, we're TAM looking change keep what focus activity. the would the If fit And type a often. can It our team. platform that that's to the at into and our long our typically and come ourselves field plan. really strategic will stack But standpoint would all acquisitions our hard like benefit our certainly be with and think I of and would too we're platform. to should to take focus. really busy markets I time an real we go think we don't and from of of at it far we see the we that that frequent benefit And the by need transformative the with looking customers don't do hands

to if there. I anything Chad, you don't know add want

Chad Martin

No. XXX%. agree That's great. I

Operator

of Your Raymond next from question comes Alex Sklar from the James. line

Alexander Sklar

on I cross-sell to up the want Chad, follow Nicolaas, opportunity.

activity? and cross-sell steps about some about could that already. are that, there any terms solutions. X in you having average really And customers that some of talk of just taking improvements on I seeing But on promote customers internally talked solutions? Is the your talking that been commonality about the you've to of taken you've You've with think of number higher

Nicolaas Vlok

need Well, continuing kind split our of realized as starting go-to-market to we operation with to we the that scale on teams. the question, early we were fairly

customers better partner and of deeper customers, enabling to customers working platform, use motion, the showing our New quite opportunities, more the and different with get benefits platform. of understanding logo kind the working with of integration from

continue teams to we're to the out understanding say, And you think going the where first today to If invest team with significant to headcount. that should we're should ago. to I thinking our bought. continue with we've we enable. should separate content cross-sell, be, not improve, add and what was We totally in the of where be to never at at better in step me continue journey, team the We've continued to and create So We've where want it's upsell ask and of I build a terms be, some time the we was products. we a our destination. to continued if it's to enable place step

not we've we team, cross-sell, an previously opportunities tools, through that expand with the As to with existing work modules upsell enabling think with I customers there's done.

hopeful partner can opportunity see start we enable excited X a cross-sell, that team. think better in we're how through there's we're continue in And our marketplace beyond. X. to thinking But very start in pushing also, on and the I XXXX pretty average. going here not-too-distant something sizable I'm that want better growth we upsell our to integrate that future enabling and and with about that's to to

built invest customers customers understanding So our I ultimately we line we of product crank to We've get specific from able set technologies, a tech using from the to are customers, XXXX. starting our our think that great continue it's a that's can heads across whether platform. given benefit think how also been our our we And my another create data organization, a foundation. around better in are product for most our turn perspective, to our stack will the which down product. I which we've And then analyze the and partner or the that

Alexander Sklar

Okay. can Great. relates have it's of That's in from anything of early the really goals I your helpful I next-gen what and of One those benefits to the or know theme, color. of you as And of wanted still terms cross-sell tell days, but MeridianLink the but And maybe you my terms before ask anything follow-up live it on percent early us call feedback usage platform. expect in progress terms adopters? kind early to base end of continues and year? in to about that your

Nicolaas Vlok

MeridianLink our be I lending, our well. broadly Yes. One loan that by And as we'll that, mortgage define consumer saying by consumer the only the working clients market. is we're and origination platform collective including for term some early adopter we're that with. focus from really driving We've that a it's got includes cross-sell, mortgage in offering that upsell XXXX. And the a standpoint, into

and through feedback. how feedback adopt the to and into bring far, some So the of it good thinking the platform. feedback feedback Great

perspective, my very we So where pleased with from are.

of naming lending from area we've doing it bringing MeridianLink think I together, with altogether shared conventions a a But an it's 'XX, ago. to 'XX. the One while is than under think with you standpoint, we're what all offering focus line time for the little would say, bring I more that I consumer

Operator

from comes of the BTIG. question next Matt from line VanVliet Your

Matthew VanVliet

then there the past? in segments any that us event you're or of showed out on user see more surprising more of the specific terms in really lot than the from coming or quarter. differed upside of successful year? that guess conference specifically a I mentioned, And a market year in that how of earlier success. How little of iterations this anticipating? just Nice in much Maybe the you Congrats provided or sort deals has as IPO. build job pipeline you different your bit closed out help were the or did areas

Nicolaas Vlok

users last, That's good breakout X more offerings, user years, the more evolution sessions, have with stories, successful for us over a the much solution started where working been in market. a enabling The say, and question. with focused on specific much

be from to gen of built. continues We great kind It of a deals products, seen platform in lead seen of functionality, going. is the generator a cultivates with the a pipeline great pipeline already. always a for get terms to lot of think where new close that And showcase great market lead interaction perspective, ahead We've discussion, clients. us. And we've

slowed a meaningfully for down anything virtual benefits in even the So or in being time it. hasn't the it changed it second of with from row, terms

say before year would the it's even I with year fact, some still switch In event. being the accelerated and a this probably virtual

virtual can of and in and to setting But kind where we standpoint, ask subsequent from was with kind the we outcome, networking the person missed will and in other. closed. the pipeline results deal the in customers and deals exist I the I engage given do social we be would I say benefits already each in that customers pleased tend had would do a of because with with to very think what say I again. we soon on when opportunities Hopefully, that out

Matthew VanVliet

us logo the around guess, then you're you on the I of investments where remind quickly, whether, cross-sell headcount team? versus in then And terms heads? and quota-carrying growth building just new And are Great. support much sales some in can the how front, increased on of adding Chad, new at that out team especially quota-carrying sales of

Chad Martin

Yes.

adding correct. it one not of add reps, really break that specific about don't you about we more reps, continuing team. yes, you're is to And but And building to we but So just the ways out quota-carrying folks talk the and having the rotation the team talks CRO, on game, not right, the Klann, but their really through our Brian for specialists. around the -- just and X the and having reps about, the whole depth picture think

presales, to leads them then you a up leads who people take So set have demo closer. then you that to you have

tools we of and the on of focusing be rep and having then help are so And so using. basically to that on we're new technology actually seeing both stand process the can successful. kind Nicolaas really board, great in about And really they up opportunities pipeline. a the then that But them teams faster come when talked see technology conversion

Operator

comes Stifel. from Roderick Your next question line of from the Tom

Tom Roderick

This the good recent volume relative And IPO. legacy for of line? upgrade And across have but to existing actual it's there hand, I again, what congratulations -- credit customers or to challenging convincing I'm and transactional unions of from to been customers, goal but one of VanVliet's that some environment bit kind technology a new of going on results your it's set. their just little to it a think the is build fintechs on to the a pace sorry, on get taking out seems seeing one not Matt banks you're peers the question, convincing

taking the On is the kind on that a customer out are other platforms that change being base at hand, looking place volumes forced to the there. given you're of

in seasonality and you to wins, that love new would what So what's with when new from selection platform? on come actually logo the how urgency hear of plays your perspective, see is for into those happening the customers perhaps terms

Nicolaas Vlok

a Actually And my on Yes. pause it's me good here's perspective second. I a think question. makes it. and Happy think and for there, to go

where mid-market. are their catalyst, of We a was ripe than is larger customers in the the A strategy, in folks institutions business at the model, real is mid transformation lot market. earlier we're of and their kind And earlier, more to ready different. the living their of digitalization a and they've about What invested that digital started stages what's pandemic the on business, probably start that's serving and of kind using consumer business looking meeting thinking forcing expectations, engage a mid-market in a struggling ready of to for to a opportunity been not excels. and who's an time would a that which folks is platform and serving in ripe customer as anywhere, of integrate. any and with And [indiscernible] MeridianLink solution, single type who's that point to the they're more we and is is love find the hard that with transformation,

our what of mentioned to offering excels. customers and the where are the a are really perspective, actively platform consumer, you what And tell that's in mid-market faster make service have, can't the better in level legacy that solutions. move more have to kind ability it speak interested struggling from you folks of they our to and But and I where real-time basis. to I decisions experiences, my much And MeridianLink's on improving that bettering their can relates

decisions. And better kind overall some we to we've of of ability from access have standpoint it we kind to an make the real-time that together acquisitions better done of the where where ties have information,

customer of an effectively decisioning investment mid-market type level these the most in of institutions the their we The automated which and level into lacks which cases. peers who better find a to compete have integration, have larger legacy And solution of don't we digitalization has made enable with institutions. or

its make it who solution. the those So back-office sales a investment. ready against to wants legacy kind customers our always team, not say shift, of I hesitancy we're really selling perspective, with and I or as the find to from to don't my And finding

interactions generate more legacy our cost We and the think if transition branch tend different We And it's they with efficient I tend be our view a you're but to solution from with the bit along see to kind more peers, tend a digital growth. engage than grow solutions customers way. little are customers institution. some is, challenging in faster peers. back-office We in of enabler who investing time in it's we enable savings revenue integrate to than interactions, and back-office their my today's of solutions. to an or solutions,

different than a from struggling little So up from legacy bit solution. to sell a it's my perspective,

market into a accelerating are it that we think benefiting from. it's is and tailwind I the

Tom Roderick

That's understands think good on appreciate Outstanding. side color. follow-up the compares of those really detail of from the you. the mortgage probably I Yes. all business. really Chad, the I contribution year-on-year. of for And the challenge quick everyone

that's So great on how of we measure compares. to understand I belabor sort won't think up those I that, detail but

that that? your that probably X, how just your last business. business impacting a the a from are auto that little robust of bit but Would how love a the is business little of to more I give out the when last probably you growth detail to pretty mean, more tough you a years? year, was this on a over tough book Or was side think we pretty as about of Can year. get hear steady business lending bit color transactional compares X, that look might pretty on as X is -- segment and those framework

Chad Martin

Yes.

we consumer segment of don't And break report side. is or loan lending on types. So the one out component various auto the

auto, And across customer like types one the we their talked the cetera. they're accounts, end, is volume loan of direct, commitment, just system. of the cards, to credit right? types it indirect, that when as I've of the opening in So loan the a exceeds And all that processing, volume -- et and it's about,

there's end up corresponding kind level we at kind moving looking up or their offset holistic of period, So that's down any anything of loan often business. of And a type. another in from

seeing the we that of going that of nothing say, I and to, that generally [ others ] So loans own -- we're volume what as forecasting look as in we're would in industry from in kind everything on everything CUNA outlook and our tied to what's we're volumes. market again, expecting kind the and seeing at the of

Operator

from Your line Napoli next from question Blair. comes the of William Bob

Robert Napoli

[indiscernible] the on congratulations And congratulations.

see, to great earned. So well

Nicolaas, increased you a sales. the the in talked lot about and guess, I So sales investment

the since investment has probably since like a product has seems become management side, lot. improved in R&D been come [Bravo's] team R&D it in involved, the this On there's has more and

the So set? [Audio stack and tech the Gap] product

Nicolaas Vlok

a not your Nicolaas. the of or know hope I to portion ask ask it you my if but cut is your and phone question, -- phone, this it's I it repeat large to I Bob, was -- don't out question? offensive, I'm

Robert Napoli

Not at all.

critical a but we it's to sales, that about it seems the Just company. lot talked been

the where the to current you Thoma important -- critical since You've set momentum to your Bravo that management in the was you that's most and product upgrades brought has investment, the with the the most What continued improvement been make really improved is team. have? what continuous need

Nicolaas Vlok

us But in scalability We've what a journey we've benefits made future in product migration well right. we the to number making quite start invested customers it you're cloud ago, are we're -- and cloud. to we're our a as question, like comes -- product. made investments with standpoint. the and good starting of We've cloud. and the benefit in get And that's in really cloud and heavily investments a years. would a will to the The security to public years X ask everything from that into well. And environment decision and with our That's investing

work much new we've But been in also, high invested that brings our in from for been interfaces customers. demand, requests stream products, That's user high better another our which together. has it

investing enhanced it, are call We decisioning our for in, product.

move would competitive with like offerings. remain we we As our front that to on upmarket,

into we we big mortgage And going side, then of invest, XX, the also continue investment on the a XX to over and last mortgage had round our product months.

large in really some do So clients always also made benefit from our good of kind opportunity going base. the benefits groups perspective, my what's and to at. There's we've the going our the decisions continue to always for functionality that to for think on benefit you But can more. look enabling to long customer of I company What's term. an long-term focus

really about think level here? I with get to of we've And to technology, technologies. where the a integrations we're doing the to automation our continue decisioning speaking been deeper accelerate deeper company front with -- and our excited from to about ready number enhancing and partners next end

Robert Napoli

investment, the mortgage would. you on follow-up a just And if

number the players or you that? more is LOS are think unique in verification competitively the the I of investing data the versus a of So market. POS? the investing in your POS pretty LOS who's business there's the lot confusion in who's a around -- Or versus market. the And versus LOS in Are you

you are mortgage? So what areas in investing

Nicolaas Vlok

In mortgage, we are investing in the LOS.

We have we partner with marketplace. the partners that in POS

Robert Napoli

And piece? Okay. data the verification the verification,

Nicolaas Vlok

to LOS it's mortgage the continue focus we and come threatening the system. of in us a non years And invest way own That run mostly a for to CRAs but to do the end, their in the custom data front to who work in side, the POS. a is CRAs, the number verification platform or not on with

Operator

will There ahead. the questions call are back Nicolaas CEO, go queue. to on turn I Vlok. now no Sir, further please our

Nicolaas Vlok

getting and folks, has to MeridianLink. And the on of incredible never company to joining want And our first personal the about us in just for of note, I gratitude call, our then forward And you this us customers, employees, sincere thank I'm looking you a on of want optimistic I've send call. MeridianLink. all to been Have talking evening. like for interest here. for great say to all our I'd future thank us journey. earnings really public an just call. on I Thank a our you the more And to ahead partners you on you. opportunity And your for our our been next to

Operator

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

You may now disconnect.

MeridianLink (MLNK) 7 Sep 212021 Q2 Earnings call transcript