MLNK - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen thank you for standing by and welcome to MeridianLink's Third Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. 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. ahead. go please Erik,

Erik Schneider

welcome third and call. XXXX to afternoon, quarter MeridianLink's earnings Good

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

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

Exchange For a reports future today's please the discussion file the of could Commission. other affect and to in filings and factors refer financial our that time earnings disclosure the with from business, results and we release and time to Securities

made information as on our All assume available as by are statements. of today of obligation law, statements such us no any required we except and update to to based

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

of that, GAAP Nicolaas. non-GAAP section turn the You can is our release, our to call over to the in me find With measures website. our Investor of posted Relations which press let reconciliation to a included

Nicolaas Vlok

and Thank for us earnings employees on consumers, for you our make positive Thank afternoon, clients joining a and XXXX you, businesses, another impact serve. call. the third to all quarter great been recognize they our good for It's and quarter, Erik want everyone. I helping communities our

a for culture, the future. the to clients innovation to Thanks commitment place making our optimism difference. team drives and our they the for MeridianLink our Our in platforms and our trust our again

an on quarter will provide XXXX results Chad guidance. and and on details today's I our call, third update give During

which previously strong see, performance guidance. As in exhibited you exceeded MeridianLink our QX, communicated can

in while revenue GAAP margins high to demonstrate XX% quarter. growth of continuing we Third XX% this adjusted million, profitability and EBITDA with the was levels up delivered year-over-year, quarter $XX.X

than and for expected activity. I lending commitment growth, driven these best-in-class strong couldn't continued Our to levels consumer of clients our be QX growth mortgage by our maintaining showcase in prouder higher while volumes results were which of results, margins.

markets, in TAM our we about well-positioned growth of future prospects. billion, growth our are are trajectory We with a excited have over the and $XX strong

humbled into dive our like made I and our are on excellence our and are Best digital-first I'd a financial X% to to initiatives the XXXX further Unions want Their initiatives. focus our elite MeridianLink to the that country's customer-centric strategic we talk quarter strategic congratulate Best institutions, honorees commitment growth we about to fuels today. Forbes' clients growth list top third the and results, Credit who list. us majority of philosophy, of This X% wins of Before clients. and inspires honors Banks four

I our network. First, will cross-sell; fourth, target provide our strategic third, update innovation; second, monetizing M&A. market; partner on and also an expanding

First, digital-first need face digital been Innovation to will for innovation to demand processes be growth. more to They consumer a MeridianLink. offerings. increasing success. continue our continues and lending of our client solutions drive Product drives their innovation and modernize and hallmark has

in clients clients September. event announced serve our cross-sell data share Clients QuickApp enhancements verification risk to data key an checks new QX, Group efforts. cite to and new our in enabled most platform offerings, reporting a and we as customers services, robustly. expand selecting more In our fact, client In giving their new driver innovative consumer that the agency enhancements reduce that User Advanced recurring in them tool their that annual background digitalization integrated accelerate MeridianLink TazWorks about these enthusiasm enables of portfolio features to including our

drive receive also employment our from a product key The through expanded continue especially Credit integration. new using agencies offerings to reporting Link, we areas transformation. consumer to digital that LOS lenders ongoing support Mortgage the we innovation, mortgage feedback of verification clients in For will

Opening cross-sold and MeridianLink integrated the platform, existing for highlighting drive existing One cross-sell. opening service seamlessly a In possibilities of drive longtime a through combining bank and our and platform digital our on empower XXXX, data assets broadening QX, Portal helping solutions collection, of and new loan and stories point-of-sale and MeridianLink and driving is our for MeridianLink how is integrated account. origination and clients with to the deliver their state, our capabilities. with is is which and MeridianLink Portal digital and allowing Further, partnership MeridianLink XX we the account access synergies clients. to partners mortgage We legacy our the loan, to in with place owned the and many decisioning, MeridianLink in anytime platform. One and then than one clients locations to rich vast and in MeridianLink differentiation privately displacing new products with Second, convenience growth. other of largest digital MeridianLink value consumer to apply anywhere in or consumer Portal their billion savings consumer MeridianLink QX, added our Mortgage industry's funding. and as footprint. of them in lending lending than logo selected from customers instances network integrates reporting supports a our while more system. Mortgage how products, enhancement our consumer of solution updates new one mortgage, the MeridianLink Consumer MeridianLink was banks journey lending, transformation spans MeridianLink There XX its their by trust early to The more Consumer $X prospects, are

as position key to our that honored us. are the in our clients and industry trust We innovation longstanding with cite leadership they reasons work continue

we logos, beyond, in expanding Third, spot continue new and target to both our our win market. sweet

our million assets. to institution $XXX billion know, is $XX you a As client financial typical with in

this that third profile. quarter, unions many the on new fit credit During banks we brought and

MeridianLink decisioning and tools, win These system, to with larger expand application, market and of end us automation. our throughout these, markets. and traditional factors our beyond which allow integrations, has over chose of well-rounded due same clients One we to the target ease continue country, to our offices competitors

During than typical Reserve commercial $XX more the more twice Federal of our assets, than client. we added billion in top XXX quarter, size bank a the with

specialty also company We the regional operations consumer with nationwide added finance and companies. several finance

win prove focus We market, increasingly profile will compete our monetize but we primary continue yet high add two our solutions target successes to to for to on another expand. we innovative us that network opportunity Fourth, and recent continue with growth integrations. continue as these partner our and

solutions substantial monetization opportunity clients and one-time offers income. a provides Marketplace fees, Partner vendors that service vibrant us choosing Our based our with they're annual transaction integration through share fees, revenue and the and

verifying faster quarter, ACH the integration QX. value and and can an in Plaid our Plaid. We alternative micro deposits into premium continue add-on Plaid's and optimize is to partners, we replace for labor-intensive to including already that Partner MeridianLink account we to for Marketplace. offers Portal. new options. several generating clients stronger for seeing provides ownership. a product more welcomed our It interest marketplace for our cultivate funding for instant are account clients be Plaid is And third account verification used

at Partner see happy excited trusted fuel the Marketplace continue to to our to turn to clients be and breadth their partners our in We offerings of our growth.

Saylent. on want the M&A, progress specifically integrating strategic have Finally, made I you we update to

product continue selectively or to building to experience acquisitions pride Saylent additional on integrating provide we in developing clients our personalized, and organically, and addition our own we made ourselves a or offer In to of pursue acquisitions. that that to the and on will efficiently report development lending its automation pleased to solutions integrate both, great our customers. capabilities ability I'm QX, beta progress marketing for we more We completed clients' digital members a capabilities. new

progress when are and to We rapid will provide integration other updates occurs. it M&A we Saylent we're the excited continue the activities by of and on making,

to Orange I well the results. Year inspiration the Before recognition. the admire Strategy started Tim. and Nguyen, I'd that partner respect recognition. In I XXXX spark business talk in Tim end to from I about we Innovator Chad award I highlight He's this and over as that call turn innovation important now his will industry an Co-Founder, Chief in continuing received and September, another the greatly, initial of deserved and our a like our financial and Officer, County are pleased to Congratulations, and received acumen Business Journal. drives company, business close,

Chad Martin

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

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

our was loss adjusted $XX.X $X.X operating million, and was operating EBITDA $XX.X million. Our was but million, income non-GAAP

IPO, Our our incentives please was employees equity compensation earnings our comparability. the granted with of the third to equity, vesting expenses that and completed substantial note the operating our for IPO a impact release, we conversion and in of in combined the But corporate present quarter increase drove in of pre-IPO of as stock-based accelerated net the stock-based compensation.

usage a model. recurring have revenue based We SaaS

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

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

software of The which other verification solutions, XX% revenue our from year-over-year. increased data one-third comes

revenues. of from Third mortgage loan revenues overall generated market quarter XX% the our

to acquisitions were customers. software volume while customers, contributed the by increased penetration of data the products. year-over-year existing primarily addition and XX and points were Of customers, points XX% points of X% of new of through XX increased came of software and our our TazWorks, mortgage Specifically, remaining solutions third our growth focused revenues quarter, from verification the revenues TCI of module in revenue solution our lending the tied our six

but stock-based growth lending software data double-digits Gross growing margin solutions trended it from compensation, was XX% As adjusted expected, prior and period. year organic the growth for robust, versus was remained software lower verification from XX%. year-over-year, QX solutions organic in

acceleration. invest We marketing organic our continue efforts growth and drive in to and sales R&D to

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

to investing we control flow. cash intend our focus to expenses profits into While drive we of continue free carefully will growth, incremental revenue and on and the conversion also

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

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

existing rate in free basis points facility credit expect increasing completed We in reduce in process to be by we currently shortly. $XX.X of to flow duration indications cash was and was expect flow able our million that margin. a loans our our third cash cash be extending quarter addition of interest million, XX% of to to process that the $XX.X and free credit are XX the facility. our or base revolving Operating refinancing are the and Current flow the size

robust. providing my the conclude of be can see for in pursue full invest We the remarks business to that by for used and our deleverage. year business, Overall, remains QX and momentum, strong guidance or we I will generate acquisitions prepared funds XXXX. now pipeline continue continue to to

Given QX. lower I business, like the remind seasonal typically everyone of financial QX's are would to nature results than our that

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

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

be of XX% will quarters. continue in MeridianLink be growth. faster low We areas, the that, and business underlying to mortgage drag to will face we TCI take of to any the the which is in continue its Operator? I related levels toward from difficult lending This in data to with activity reweight expected in support Overall, contribution continue the realized your year-ago the in expected refinance QX. modest QX and of results. a are suffer with to our elevated which reduction revenue mortgage mortgage pleased comps contributing With versus slowing software in double-digit happy XX%s continued questions. recent ahead, verification activity performance mortgage the line to and expect growing at percentage Lending TazWorks, given Nicolaas software in the expected quarters are

Operator

Instructions] the of with America. Ikeda from sir. Your line Koji Sure, question of Bank Please comes ahead. go [Operator first

Koji Ikeda

first question. Nick. Nicolaas Chad. Hey, guys. you, for Hey, either I Hey, Chad. taking for Thanks my guess, or question

the consumer XXX wanted bank. these about lending wins in -- I the talked on actually, of focus You top specialty a two lot here. to

from you, pretty are I wins from harder here? is do potential any you And market then, initial conversations I XXX are with to at important. how And here? of do those pretty think then, we these land top just the end big for to think higher these given start about this How the going the customers? that in be expand think, bank, leaning

Nicolaas Vlok

Thank you and the for question, great question.

the $XX assets focused on Our $XXX million it, under lens to, call remains very management. billion of

have and customizable between case, as Marketplace enablement this with And Koji, implementing I We're partners we and into highlight as success of and where larger of platform, our out platform. difference there's spend Marketplace. platform that's say our integrated highly functionality this Partner a our are think, supportive are the a through We seen bank, to our well years institutions that the trying goes not approach big and configurable customization. in interested we large totally the Partner to

platform We are and on we've but that in upper very to focused mid-market, seen in continue we success the our product. market our end of invest and the

great be going market spoken think marketplace enhanced market. the It's where that some at same time on which to the with in to But we've naturally We've us so getting for call, or done, packaging $XXX in there's example, But us investments go with billion. where For go investments. success seen down-market opportunity clients introduction, in help for $XX to there's we've been at the POS also got up the seen us making bigger There's over we're and approach us speaking million folks. and That portal time, it's to enhanced momentum. -- our work not lens. getting made expanding to good right we've that working to strong being to mid-market great past, that further I a decisioning, left also the demand. and this about the and strategies pricing -- ones much in and our being we've opens us

next I an pursuing, lever refocusing want on did focus proud it the of with pleased outcome, would the such lens. everybody opportunity move to say, large we're business. team position growth in that not in to our as and landing up-market. would But opportunity what not a It's I the very but the So, it's

Koji Ikeda

wanted double-click follow-up here. Thanks bit you it. maybe lending percentage Got revenue. color for the Chad. data percentage one little to for a that. mortgage I mortgage more on Thank just of for that And of and on here the

does guess, related quarter. in market performance those loan the guidance if punch this pretty we rates should low declines and pretty the I in something here Are how mortgage low there? that revenue. nice a guys of segment mortgage steep that level of mean, and staying in out So, you about third we had Or I imply just XX%s, that here be for the you assumptions segment? seeing in different interest thinking the with the some that is conservatism side?

Chad Martin

Koji, thanks for the question.

fact QX, mortgage market the Fannie, the where helped And incorporates you're that some back, I gave us the we're market on And XX% on our QX business longer, which drive But really results. if benefit into expecting also if that to but you expectation. want But we as related still view Freddie, sales we Certainly, be has mortgage the the just we're seeing QX to to came and guidance seeing numbers. or the well. ability bankers we're giving the to continue market side, business the their forward. the continue association, drop, may numbers the -- there just in this and in see to right? consumer not take with is more the invest and seeing that from the also and will stayed growth benefit leveraging market then is R&D we're marketing that away We go. circle stronger So, above that in

Koji Ikeda

time. Thanks, Appreciate it. Got the Nicolaas. Thanks, Chad.

Chad Martin

Thank you.

Operator

of Chiodo And Please question your Credit Timothy with Suisse. comes you. the next from line Thank ahead. go

Timothy Chiodo

Tim. lot. This Great. Thanks a is

on Marketplace. Partner the a So, question

some to and with. about of the unions the a if it work ancillary of you services, leading attractive of are some will, that often indicator think we credit that good So, you as banks

partnership, in could is what the just interest. of to up picking a of on light great obviously if you are traction? But some those ones Partner maybe usage And that ancillary that share, shed aside will, seem be from the you So, some that services Plaid general, announcement Marketplace? really gaining recent with are the within

Nicolaas Vlok

That's multiples And general partners of partners, being and probably a enable I specific to in or we selected. in cases, partners, speak highlight let more of engage kind choose doing great want have don't because what's clients we we same. some question. the

Timothy Chiodo

Yeah.

I think categories [indiscernible].

Nicolaas Vlok

I that interest And fraud is area prevention would to say Yeah. in see fraud. one I and the Yeah. of continue

interest months higher with last weed fraud. that of certainly I can And what's for XX MeridianLink but the much of And moving for Marketplace way partners, there our Plaid's prevention which are alert MeridianLink client think of one every another. XX, a good And out moving other how and or as Specifically, over so into numbers much branch example of pretty there's digital, platform of there? of is the out part through a and that, integrated you well. that's Partner

Timothy Chiodo

is Excellent. little think -- just in there those businesses, quick Okay. then, about seasonality you. on contribution is sequentially for we And Thank I TazWorks weaker their absolute QX? TCI the QX, as QX. an just bit dollar being two to should a the and believe real down QX, basis still relative in in

Chad Martin

Sure.

business them. mentioned, seasonal business. we did So, TazWorks good we'll They're from acquisitions. that businesses the in the we what mentioned, our same to exceeding we're we've But base case results Nicolaas TCI still, as expect into modeling on the had see when original we and still those seeing and impact we're

how pleased we're with relative business original so, very And their they're case. performing still to

Timothy Chiodo

the for much help. so you all Thank Excellent. right. All

Operator

you. Thank

Your comes Please Citi. line the next of ahead. Andrew Schmidt from question with go

Andrew Schmidt

that data, customer a taking NFI We enhanced development Hey, profile historically, parameters types new go I the seen alternative underwriting many, loan begin some on you for and learning that my decisions in to loan the way. processes. Obviously, here. after for filter improve things they give guys. many of of market, of wanted decision different of we've would understand credit like the could kind that and machine you mentioned. applications, Thanks decisioning, questions to

enhanced when Thanks. decisioning, of type what opportunities curious, talk about about we're we just talking So, here?

Nicolaas Vlok

Sure.

is opens connected third-party more in decisioning with of ends would our the enhanced it to which ability believe enable be is to be the And with up and and goal would the to functionally. robust to more goal to incorporate inputs, of The decisioning, flexible, more more the decisioning and is also decisioning smarter inserted. a engine data approach be structure also into I make be kind kind the aware ultimately more up-market goal to more faster, Our us for it digitally up opportunity. strengthen ecosystem. of and But criteria our an allow

Andrew Schmidt

that, range. I third consumer you that just Thank -- feel the it. want just I in couldn't non-mortgage side. estimating this. the for And it to I upper LOS confirm in quarter, then, Got the Nicolaas. teens had growing

of, then, want volume confirm correct call between incorrect. that's Just be versus detail to a Any net versus would cross-sell new or that to it, activity? And helpful. let's whether logos break there Thanks. is way there sort down

Chad Martin

Yeah. Andrew thanks question. for the

analytics new your I And the of driving that seeing of kind as over the talked and ago are the increases growth well in what in think same number, quarter the seeing growth. growth accurate. growth included volume it up-sell there numbers year characteristics we quarter-over-quarter just cross-sell, in customer per characteristics -- I still quarter break the as customers, out but We would same is the don't see themselves, about. still to that point we

Andrew Schmidt

it. related question. maybe if Got one And I more sneak could

large based could pertains people, around on it's XXXX color you Thanks or would implementation as backlog, talk talk accelerating just of sales your Any et focus growth a it helpful. cetera. about that be if sustaining to Just for about just a into visibility pipeline, pipeline, since -- lot. that sort

Chad Martin

Yeah. Thanks, Andrew.

we've that around forward. XXXX won't the next coming report until guidance increases from But up-sell, cross-sell, double-digit volume early to outlined -- we year. logos, new no growth side, there's the we the give change on consumer the So, trends going

the range have volume -- we've drivers will that communicated the intention growth growth of will that no and and long So, changed. be

Andrew Schmidt

Understood. Thank you comment. very much. the Appreciate

Operator

you. Thank

line James. the go of question ahead. next Please Sklar comes Alex Raymond from Your with

Unidentified Analyst

quick question. have Alex for on [indiscernible] is Sklar. a I This just Hi.

consumer can right are And going now. guidance? pressure us been lot a wallet bit pieces moving is under mix What of cards you seem credit around tell to and the on be going strengthening. a also auto but is loans to how there Thanks. personal your the about with impacting industry, volume So, debt have of

Nicolaas Vlok

to wants to Chad a if higher Let of the respond he and hand me kind to respond model guidance. level, to and from it over I'll it

believe tailwinds that like seen I touching consumer and really going at think include a on the a the supply know even pinpoint last fact our the in is in chain, in I become going bigger believe strategic But a are the I in do well see consumer we highlighted the and tailwinds control, and executing what we probably thing we've months, business. seeing easing point seen that for digitalization than living can't growth a and And new laser-focused when be continue tailwinds. business And guidance standpoint, the kind of nine, managing which nine, we're Headwinds, We've a from the on think, prepared to bottom of strong with heavy you're a issues Chad, as demand we've and and our And I've me, in seen believe the the want performing been welcome you the the that of also, is we've of business. on in and months. some maybe the to model, headwinds I auto out. on more on kind time, remarks. again meantime, highlighted third I spring side, there. benefit I is is don't great even drive what's to some is viewpoint really question, the quarter. on stay I fourth the see. seen line even over building matter it's kind we given up focus We've to of base that you're kind and the to I our believe, shift side company strong growth and highlighting last other earlier is here. the and of headwinds you've headwinds whatever -- extremely from footprint to clients. six, our the going coil business believe getting home quarter. despite over see we guidance. vectors, sales the timing our XX standpoint, can supply really And My what call we're And some strongly tailwinds we comment on if my it resolved. areas of more in even of a out a well-positioned, that XX We you from chain from there's best when

Chad Martin

Yeah. Thanks, Alex, Nicolaas and thanks, for question. the

think hit it on I right. Nicolaas

expectation mix which So, been has and revenue see in radical mortgage, making we really We're see predictions business. been where or our have to expected the guidance any changes we're expect tailwinds, not the what in to we the in than go. around QX the expected of provided other that we've explicit been

Operator

Thank you.

comes Blair. Napoli question the with William next Bob from Please go Your ahead. line of

Robert Napoli

afternoon, Good and you. Nicolaas Chad. Thank

cross-sell, target rate? assuming net revenue at be your would looking your what long-term, a retention once and the revenue mortgage on normalizes, So, net for retention rate

Chad Martin

about turn mortgage. to point that as growth turn may headwinds Nicolaas tailwinds. may be that part the talked reported into we growth, talked of about, roughly into of XX% kind look we've XXX% But our XX%. ARR about -- in tailwinds headwinds the at last year, will and we we of long-term, which So, which at ARR year-over-year that Those for we some Nicolaas and when talked think -- tailwinds some continue

look part business. up-sell, we Marketplace, of increase, the Partner both growth cross-sell, the driving to volume, in our consumer As price that for range

Robert Napoli

for Maybe Erik. Okay.

or that the looking types active you're is of or market, Chad what market update environment the how -- you front for? just that How types are M&A pipeline? on you're the the I But deals And for. you of looking you? the the seeing be are Nicolaas. guess On might in active acquisitions any opportunities --

Nicolaas Vlok

Bob, great your voice question and good hearing again.

strategic an We tend I are adjacent to to around want specific growth to think while to tracking flow, our deal discerning internal and we our is much here. appear of spaces in value is value we one I'm be but making do platform Chad good exceeding every And we asset also we from anticipate and looking that continue it fit mentioned focus. that we stronger, to our to creation opportunities completed, The be our acquisition brings be are we to differentiator expectations. at that pretty us. be standpoint out point earlier competitive interest very see build clients

integrating technology around would drive into for to clients. certainly team into value difficulty] initiatives. and work We've our drive platform, is and at a data clients. to us focused. growth for individual another strengthening seen we that, that's and analytics team, to our do You've the that are evaluate about be we integrated thought our We've real getting platform will as the we strategic is acquisition with Erik look continue outlined our continue the our Saylent our Plaid M&A strengthen And that and five [technical and opportunities. growth fair offering It's attention assembled and should

Robert Napoli

it. Appreciate you. Thank

Operator

Instructions] go from question VanVliet of with ahead. next Please the Matt line you. comes Our [Operator Thank BTIG.

Matt VanVliet

have more Have are investments where I on prospective Thanks lending a the in think resources the we are the question, guess taking to for you newer it's should some of whether some you the are the more more that moving at focused going Yeah. to sales be be heads incremental the look focused ones guys. company, market? those job little the ahead, or the on of returns. ahead? pretty incremental the larger moving as what of about How going areas to realizing allocating and bank specialty be recent maybe marketing of quarter. you Nice good some given deals,

Nicolaas Vlok

question, and up-sell between in think We've are mix change Matt. cross-sell, I in go-to-market investing that good and to a new That's the going we're found in good don't new and momentum we motion. XXXX local beyond. our

change are significant focus sets and on marketing We in certain us for that growth contemplated real plays for plays, expanding no is specific but up XXXX, between. segments markets with sales

of heavily where invested to in same logo tech -- as tech like and we at, Partner new last in investments. investments of have well. would our continue where our then, have Personally, go-to-market us I the cycle our our having organization. are from, coming the where the our of more and sales reminder, -- months, believer we marketing a and a expect up-sell our big over go-to-market. channel I I'm team, We're build we're excited we in making and where to out teams gain in and pretty I'm And XX from with out Marketplace. where with the efficiency came XX, stack our stack XXXX, As see that we're forward would We've say, organization. type going team, cross-sell,

Matt VanVliet

companies competitive and of we let MeridianLink sure to staying you're including Excellent. side five you get offering, all as do a push at envelope these other One the of and into some trying providers to Does of you the make -- the of necessary And as companies look give development you lightweight Marketplace. offers the that kind not ultimately platform the functionality or then sneak continue to barrier with what some sort ahead FinTech even or of to enough some to along have really of in? Partner the loan pricing of see all the on of

Nicolaas Vlok

we've built we Marketplace the on more a do defensible in our perspective, is the and know rest laurels, in a marketplace into the our positioning decade mode don't my indications that very have we platform. From but We the strong. over Partner got we've than

-- market We leading are position. in a leading

the is ourselves competitive at we $XXX defined of enhanced in ecosystem not positioning compete we're need infrastructure And supporting as that as years knowledge been there interaction had that platform. consumer But touch to with for billion from believe the cloud positioned the analytics going, for that of and meaningful continue way. we've we've better today our into a we integrate it's the platform any point -- We long company while very decades invest, away the of than to over in an XXXX history the And into behind what we've getting continue the We a where where believe a technology, consumer shift going and and have strong is in invest platform the that two and that. we the of and position time to the lending a time. omni-channel market experience to an for the continues in the enabling that and I I are The to in more I $XX it, landscape than into decisioning. pure feel to MeridianLink. to do and it points, market great last, the making call and under will digitalization I been where consumer moving two here branch investments million greater moving assets and need a ready management. to is to data market culmination

Matt VanVliet

sorry, more -- follow-up. quickly then just And one

ways going Obviously, that components less that maybe the of interactions a you in looking guys there. data are here market to are But areas of Are if a screening becoming sources lending other those added wider branch smarter, mentioned especially through a that that the to there or cast more You are are mortgage the contract? to verification but any some acquisition. data and tenancy people there trend be growing little continues are net, types institutions incremental? of

Nicolaas Vlok

point I to fraud. would you back

as alliance, through on one platform and And the our very fraud this are at our to world prevention as in CEOs in that to especially Marketplace, of speak items, around that. Partner think of of is functionality regard. when point mind additional integrations time, enabling and digital the I acceleration top focused I continue fraud through well in we build of management

that look year digital the and probably with now in to So, data that make the we've as on consumer so us as and place others in years The and And than integrated is vetted or is decisioning a new significant that. and looking fact and digitalized, What much part five from to a a of fraud as from so managed. mortgage tailwind. bringing back more lending how that view I you've we're data through lending and the platform mortgage of broad even anticipated my whole coming XX the the seen part I standpoint, revolution a in decade believe as back, personally, years two in consumer going frontier sure at landscape. decisioning think consume you looking we're is analytics taking if in this in the industry well very and maybe next for what so the to opportunities ago. I marketplace. a last digitalization great our that's feel basis meaningful process broad is or It's way

Matt VanVliet

Great. Thank you.

Operator

next Thank from Roderick question the comes line go of Tom your And ahead. Please Stifel. you. with

Tom Roderick

Thank for Yeah. Hi, gentlemen. you question. taking my

But the already think I Portal everyone's juggling, apologies, MeridianLink calls the and were recently. more update particular, know few you today, investors this asked. So, hope had interested in in that a so I pretty I on we, wasn't

perspective who you footprint on as XX out is I'd understand customer way what there financial upgrading competitive changing the what then, your into from the in at think more some Or might more the about in you? Talk same to the in terms your terms of the of services customers selecting competition? of to also that that talked are customers that the the landscape you that all you bit I And digital into What change a it push is of world cut-throat love does typical impact to sort of broader front? portal technology bump little that? from in financial quarter. a about means

Nicolaas Vlok

I'll it of this. Let the financial from it to kind to of kind me hand a Chad to respond part respond standpoint of to market and

It members. portal platform is the played months, years it experience building and place larger on -- really took be innovation institutions we digital mid financial market this team a banks before for Board the and And serve the be last enablement And and and clients of our is over to pandemic. there financial MeridianLink's enabler was omni-channel two specifically Our with the XX creating institutions. to that is out -- a a an moving larger stacked hands strategy creating started competitive customers, and the portal on in two the and we with digital engagement single sign participating has positioning years invested always they where our That's touches on. cloud. scalable invest invested the in why investing point by and to that our it. platform And and interaction over front-end have that driven omni-channel we the is experience MeridianLink. platform, we that the that And in it's moving our partners ecosystem been consumer creates experience them. clients' that

focused bringing positioning it's further a very today and From us pretty we're important on consumer a to landscape. that So, investment market. for lending the something about, excited standpoint, it's really

want the how know their being you experience I across plays integrated and we can the clients go our and can this with subscription MeridianLink But partner You to it, the access want speak portal, to part we if platform platform that choose platform see our a point best point-of-sale be of don't Chad, clearly there. ecosystem. the more the today, that the enables financials. of for to best be that to the into if kind into

Chad Martin

customers dozen the get I do base. subscription Yeah. than kind category. the we our additional of modules modules, Tom, But application, is the it's attracting of consumer bit sell consumer are of rather rapidly applications that growing also in do by side. application It's would they so, customer having one that using of say get they're other If a the the of one solution. the and the volume additional lending friendly modules seeing we of Portal benefit we a have the benefit portal in on

Tom Roderick

price I'm glad driven, financial subscription of the driven number that customers end So, the it's And Yeah. that point. just just platform? Perfect. consumers drive has, application Chad. transactionally it's clarified by number institution is not that, would of you on that that or

Chad Martin

of type more it on the difficulty]. price size necessarily institution, of the do customers, [technical but not We

Tom Roderick

then interested in follow-up. your And one additive on Matt's quick solutions. answer question there, was last Okay. I to just

money when combine edge ready of say, the data paper lot sort solution you seems the perhaps to let's like the in machine further fraud in in seems fraud a the and more automation about level, expect your learning of the lean AI, that hear analytics, are intelligence and that around verification, of that And step-up step highlighting go sort to intelligence, it just one with doing move that one talk customers lot there. be theme? is there we you could high to catching And as artificial really investing to of on is what of of AI, market beyond some processes these intelligence? You're are a the newer in Should on. and the just a horn? the network the to additive and of Maybe solutions

Nicolaas Vlok

greater to But if captured better differentiate, customers customers there's importantly, have decisions, for and value captured. make the well the for and into as our from believe of our by be interested example, better us. a capabilities, it's that driving in It's out integrations process an be future also growth And highly building over interest integration. Plaid helping it's just that also the an partner evidenced, area more time. investing like we integrated It's would faster, as risk and existing the own as our an there's management our capabilities in area value are to capture in to I not we're are And M&A. to or that benefit through of capability decisioning, if lens opportunity area certainly new we And an value that of it's customers. looking we partner market,

Tom Roderick

Yeah. here. Thank helpful. back in I'll you. appreciate it. I Really jump

Operator

back to Thank Vlok, call our the you. final concludes And question-and-answer will today. that for CEO, comments. our I turn session for now Nicolaas

Nicolaas Vlok

you and And where have second from today our both discussions the of we're never our may opportunity us. we've thank think my I reporting that quarter public joining and about business the company picked everybody a results. up on us optimistic of ahead more you So, health Chad for the as been that

And levers to would MeridianLink would our -- wanting even numerous venture the We at growth is I I have strong. products say say for demand unprecedented. and

very Thank great on toys me fortunate the sitting our lending we market. hands into in that digital clients of I like us And great clients We're I consumer our here. This is feel personal for a For night is holidays opportunity. gratitude be to sincere our want my all to an that's And also now on you look finish Thank QX. note. and faster we're our employees, in a send that to up all approach, our your journey the at today. here. I to partners for thing and landscape. keeping biggest in There's me, next to this our as can for the incredible Operator? how excited of earnings would to part MeridianLink, will journey we joining getting of when get on talking you right discuss tailwinds forward you we call and interest

Operator

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

may You now disconnect.

MeridianLink (MLNK) 7 Nov 212021 Q3 Earnings call transcript