Earnings call transcript Q1 2023

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the MeridianLink's Fourth [ph] Quarter 2022 [ph] Earnings Call. At this time, all participants are in 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. ahead. go please Erik,

Erik Schneider

welcome first and XXXX fiscal earnings call. to afternoon quarter MeridianLink's year Good

discussing announced me the release be President, Chief will We results Blitchok; Sean the Executive Nicolaas and closed Financial Chief Officer, issued Chris in market today. MeridianLink's With Maloof. are Go-to-Market, Officer, Vlok; after press our

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

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

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

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

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

Nicolaas Vlok

is Good us XXXX lending thank software Erik. Thank you, another for fantastic Total quarter. team revenue given achieve first a solid I the achievement conditions. earnings for want solutions everyone. XX% MeridianLink joining Thank all entire for you call. current afternoon, which year-over-year, quarter our to market helping grew us

most services platform, our for position economic remain focused that to success, best times. We led in a financial their hyper look highlights technology uncertain at the being especially these Let's areas focus customers businesses business and take helping on results. trusted

of partner momentum. our logo MeridianLink product We cross-sell the and new the platform integrations. One capabilities powerful capabilities, value-added through are for continue platform drive another continuously to quarter, And and innovation improving

demonstrated up million year-over-year a As QX, to with top revenue in and line solid MeridianLink again operating GAAP X% exceeded result performance. $XX.X guidance

personalized real-time Our our resilient lending and needs to insights solutions continue our win, consumers. that and remains changing model customers to frictionless of especially the business provide mid-market customers meet

digital and growth. leading see to position and businesses a platform, lending for transform best choose this the sales provider health continuing reinforces their One the MeridianLink As of our to view. cycles future of not customers that The fact have pipeline slowed modern we

no pay attention which is market close We market. of recent expectations. retail external to are failure the of States. The from in in to with and highlighted United regional events customers several large continue by seen these institutions was Because commercial the conditions our material to focused, common risk we concentration related deposits, our impact have banks a target not financial

of at Whether forefront institutions their to economic more regulation, consolidation the that. is will or there cycle, undergoing competition, is of MeridianLink automate Irrespective lending the and increased the pressure digitalization market be it's on financial processes.

assisting our benefit, remain these each serving of market surge on opportunities meantime, laser customers in our the communities. model. in business focused capturing In and the In transactions accrue of because to our will we digital volume-based new their scenarios,

about minutes, guidance. year full performance and second Sean our guidance speak and XXXX a few In provide will QX quarter financial

engine recognize several like areas the and we Before to have of on leadership our fuel three I to growth would our gained that, I go-to-market updates give will then acceleration.

evolution the of go-to-market our We are capabilities. proud of

a year, to and position. MeridianLink's market have scalable we As strengthen deployed growth comprehensive, accelerate created the over part development of strategy and

public have a As of phase growth entering we the part organization. go-to-market leadership company, expertise added following our next of across as our

last been more and MeridianLink Since to cross-sell year. structuring Chief increase team, win Scheig First, customers Officer, we welcomed has the Richard team our our Richard new in momentum. of Sales instrumental sales joining late-summer

end our the to capture of as team software ability we the to added our of Balasubramanian experience bolstering the and more at benefit Suresh in generation on the welcome February are focus Chief with demand Officer, share also We market. new Suresh's Marketing

Customer And as finally, strong and ability makes we Chief team, combined Dean's his to our go-to-market [ph] leader support, teams. engagement are excited experience approach with to productivity add Officer. to customer-centering our Dean success new across and him Germeyer MeridianLink's a customer accelerate services leadership

quarter, investment a go-to-market On our to turn dedication an that in of built the first few in the robust Our area high-performing go-to-market let's with growth resulting consistent acceleration pipeline. our customers. the wins and to deeply more is note, team efficient has that motion, in a first which engaging represent

are for the continued of increase, year-over-year solutions QX. we software lending report As an MeridianLink platform, in to cross-sell One demand happy evidence in approximately XX% bookings

our three examples are accelerating. and strategy signals platform that is fantastic go-to-market These

leadership are the positioned With penetrate well customers onboard, the objectives. to new help we more growth achieve and market further their

growth turn capabilities let's revenue that, our platform With of our the expanding acceleration, to opportunity. area second of and our

year, product focused existing are our to our we to With of allocate map, meeting public needs the last migration which road the excited resources the of customers. completion is on cloud

on to through sales our capabilities multi-product of motion we the are platform. connected value Critical creating our focused

For maximizing customer's example, from and our benefit platform. the the MeridianLink MeridianLink portfolio Consulting performance overall team is credit One dedicated to

rules in depth each that is downturn. capturing experience quickly an for past team customers has economic to creditworthy engagements, been customers from a Levering providing this imperative decisioning of alternative capability

our would expanded improves the and we with highlight enhancements One launch like user's the connections platform. MeridianLink efficiency, MeridianLink our from of SWBC. increases the Turning integration to payments SWBC products made Network, experience with the Partner integration within automation to This to

through the partner relationships example demanding their expansion collection to customers Our in can A of logos. be now on capitalize leverage our can win to their and final functionality, seen ability borrowers of new financial conditions. improved this midst strengthening strategy

and developing banks sub-lenders. of Credit with worked ability we to deal closely to the of QX, the In on MeridianLink the of MeridianLink Solution. won meet Origination extensive our partners, configure lending in FinTech needs one Card customers' Global a large-scale Consumer the our network

the succeed our Turning to which empowers third markets MeridianLink customers they participate. focus, of to grow area in compete in and

have enabling of track to clients clients' share and customers capture record greater win more a We debt of their a wallet.

needs deposits are liquidity your shifting environment. response a to lending of launched we in increasing evolving who current the initiative address grow to to focus the customers, QX, new our In

integration that of personalized capture and enables MeridianLink customers deposit provides Engage through growth communications. relevant Opening MeridianLink deposit a account to comprehensive and solution opportunities more The frictionless opening

Xth There can One are enable existing to bringing forward innovative user prospective Resort Anaheim. discuss than to their looking nothing we and Finally, Disneyland empowering the growth journey. hosting May forum on together a customers platform the at in the more the MeridianLink how XXth is of capabilities through

want we investing with our face long-term customers how to record-breaking engage year both emphasize to how face initiatives. the attendance, and market. strategic and while profitability consistent continues immediate can't wait dive deeper As we in to are to MeridianLink deliver on again track on for a growth levels, provide to I and value in MeridianLink healthy

resilient in macroeconomic customer from control acceleration what face QX. benefit we high-quality to ours. our In on this conditions will the a having of three is whose base create experiences focused continue aligned of borrower the We can growth staying demonstrated we areas best executing mission on as year, highly uncertain directly is with well

exceed revenue and by platform We to expanding continue meet and needs will our opportunity. with digital in their capabilities customers engaging lending part

communities. empowering services to positions most clients technology climate. trusted strive We flywheel starts customers be grow and succeed our financial with Our economic to to better that platform customers our the serve and an their

With now talk to call turn over that, and to results I financial the guidance. about will Sean provide our

Sean Blitchok

the you, today. joining for I'd like on to Nicolaas, call Thank and thank everyone

like to guidance, I'd Before financial achievements reviewing the with am emphasize first and quarter. results the our impressed I how in

impressive the to entire reflect for the effort again my to I that team continue MeridianLink and culture gratitude results Our and share for team. want

top revenue quarter finished guidance. compares year-over-year, In exceeding of the line strong face challenging we the

growth. to structure continue by customer see but the likewise remaining to continue macroeconomic we ongoing perform headwinds, and We contract impact our mix, of insulated customer

of model decades of now, enable economic through and two we've capabilities our resilience benefited solutions business cycle. perform the customers that the the from to industry-leading our For

monitor investments control, cost what external to continue we accelerate and growth. conditions, on well we As strategic to execute can balancing discipline we

volumes. quarter first up revenue generated We $XX.X growth driven million, financials. transaction total year-over-year primarily to turning lending of Now by in consumer our X%

customers' that of capabilities consumers. the We empower continue the with to journey see MeridianLink the needs the evolving growth meet platform One

at solutions look down. our first break Let's how software

contributed inclusive of solutions total primary Combining software mortgage lending remaining consumer grew grew the of driver software for and revenue revenue the XX% XX% total. accounted revenue of close for solutions, revenue and XX% XX% accounted year-over-year. XX% lending As open lending nearly Mortgage and total within software the year-over-year. of consumer, related

total XX% software to XX% Revenue year-over-year. decrease solutions. by which data represents solutions. accounted of of was in XX% revenue, mortgage-related total and verification Turning verification for the driven XX% software data declined This nearly revenue

overall mortgage although for minute, mortgage last a is in and X% Let wallet. major revenue consumer MeridianLink on year me revenue XX% market generated strategy focused of component for remain sequential debt second on focus lending the was Despite mortgage mortgage-related improvement an as of our down in quarter. headwinds, total we from straight total a this a total

taking outperform win. enabled to market, share in continue have as We MeridianLink capabilities and cross-selling One to a declining customers more are we through adding that

business led our is other lending. by The to majority outperform, which of continues XX% consumer

wins to secured lending opening enables home we to of With as While the inevitable the grow. platform the strong. by the and pipeline the to process This consumers. transaction continue personal the loan their anticipated a the preferred account business customers are frictionless our lending, credit, needs in that the the of to loans as mortgage in matter customers MeridianLink other of back accessing market, and me deceleration type One seeing or such remains our provide healthy equity, types point No brings meets lending its momentum quarter our channel for demonstrated normalization and clients. in

Moving compensation, was Adjusted GAAP margin in XX%. to was margin stock-based gross profitability. for XX%. QX gross Accounting

break Before in expenses. increase our to year-over-year turning down operating I'd like to the the operating performance in quarter,

increase our specific with calling in onetime better In to understand expenses. associated costs to strategic are operating recent investors true also that nature help investments, out the acquisitions, we're in addition

million GAAP non-GAAP a bonus year, year. a $X.X expense a first the on onetime XX% past first increased G&A basis XX% bad on XX% $X.X million to increased and increased with quarter G&A of R&D retention the Adjusted to debt of associated basis of quarter XX% Adjusted XX% on first compared past with year. to of quarter last for for last Compared acquisitions, GAAP XX% customers to onetime associated of and on first R&D the a last from the quarter a the acquisition, basis basis. non-GAAP increased year. last compared compared

our expand and marketing commitment to our increased basis, engage of capabilities. compared and go XX% to sales on On platform last our increased first non-GAAP the deeply investments XX%, while more to GAAP to represent customers market marketing quarter to a basis, and These sales a year. with

on expenditure We expect examine on return individual continue merits. its each to and a long-term we'll these investments

of to Turning was now representing operating operating On our and adjusted business, net EBITDA with GAAP $X.X a overall the was our was of Highlighting margin $XX.X of adjusted XX% was $X.X million, GAAP performance million was X% million and XX%. performance. revenue adjusted guidance. adjusted basis, the million back of or an an onetime loss $X.X the EBITDA income true EBITDA line and EBITDA costs, operating operating million. million, income margin non-GAAP $XX.X $X.X of representing adding in

turning ended or the the first flow the a million million an end equivalents, flow $XX.X flow flow and and free fourth quarter with million We of was XX% unrestricted sheet the cash XX% in Now, $XX or balance cash million a quarter cash $XX And cash $XX.X cash flow margin. from in to statement. was quarter. margin. of the increase cash cash first Operating

part as our to uncertainty, in customers quarter, $XX.X shareholders. ongoing in shares and flow our cash $X.X while In the flow margin. period allocation this us operating value million of first protection flow of flow cash margin million We or or XX% was $XX.X cash free provides repurchased build period use the a cash last cash . enabling quarter. XX-month was in of a worth flow capital XX% the and for of for ending cash million free MeridianLink's generation strategic

less and I'll now we in update guidance aggressive deposits as guidance the for lending a decreased. anticipated for base, of pivot in QX, Entering excess to the consumer customer deceleration year XXXX. due our lending to year, full volumes,

XXXX. sharp mortgage-related half second the interest a rates continued the in of of occurred also in expected previous the mortgage during revenue with We first year increase in the quarter decline

we on module changed the view Our to over and customers these has not than more offsets and expect continue penetration quarter, a dynamics adding headwinds. level new at that these increasing last

of and million total same change estimated represents million, an million $XX is to estimated between for X%. be period second to XXXX. revenue the year-over-year quarter, expected For compared $XX in X% to the This $XX

for revenue between we period $XXX raising estimated same million, of year increase to full $XXX in compared X% This million year-over-year. to total to XXXX, and an the represents X% are For the million $XXX be XXXX.

of the contribution XXXX, mortgage-related approximately the expect our in mortgage XX% we second the for compared to We XXXX. revenue revenue, XX% year. in For continue to of for throughout to contribute second the quarter QX anticipate the market quarter

a To provide given around in our guide mortgage-related continued more data in in comparable the verification drivers color XXXX. tough growth implies the total impact the the revenue, of revenue, revenue decline

we more in and both from the than winning market up open drag the capabilities verification that expect and However, our offset data pick to will lending closes XXXX. mortgage organically in through

post-pandemic in be screening off lending continue Understanding part XXXX, the quarter. these and largest as consumer year-over-year, of the our headwinds in to is demonstrated revenue our verification dynamics, a data of we lending expect will we proposition. side, in the non-mortgage value momentum at heart Consumer result is of coming flat employment the as hiring. market the expect first On business

MeridianLink a digital providing exceeds frictionless by exists customers' consumer growth that journey experience expectations. the to enable lending

One. providing Over in enhanced now lending we MeridianLink which are years, thrived premier capabilities have through the

environment. In XXXX, the there's against today's them the customers in ample capabilities opportunity differentiates to demanding more equip competition with that

Our as highlights can partners momentum how cross-sell access QX and to MeridianLink demonstrate customers for the and volume will further MeridianLink for configurability, whole. to empower and of growth a hundreds today One

million, non-GAAP estimated EBITDA quarter adjusted basis, adjusted of the margin $XX an $XX be to approximately the turning second a midpoint. to between is and expected guide. adjusted On at representing EBITDA XX% EBITDA million Now

of EBITDA and representing full $XXX For million the midpoint. EBITDA margins the of adjusted range our XX% million, are year XXXX, at we reiterating approximately $XXX adjusted

that growth discipline do to reflects acceleration. areas contribute meaningfully Our EBITDA the guide in continued operating not

legal Our costs third-party guide with year. in we and associated expect this also anticipates be completed an will increase litigation largely

quarter cost structure up anticipated focused for the estimated incurred We first an one-time be our the in the $X.X increase and on costs expenses in costs will million of managing to legal the make year. from in

of continue and as public we to accounting forecasting our align company. as broader a forward, maturation the Moving part

best organizing our position its to for and growth. of dedicated I'm CFO, As to MeridianLink next processes cost structure phase

I'd the are by customer superior of the quality our like two and track of growth. business These company's to proof points record demonstrating and our end base. reiterating consistent resilience profitability model of

than end At in solution ever We've of the for providing that that's efficient day, now accelerate need an designed digital more the customers growth. decades. to leader been the solution

and market deliver to on that continue as accelerated will promise We an capitalize embraces the digitalization.

With that and your the of turn I it to take over questions any and operator. to are Nicolaas, back happy Chris I'll

Operator

session. and question-and-answer Ladies you. Napoli Please Blair. question will begin we [Operator Bob gentlemen, Your William Instructions] the go with Thank now comes ahead. from first

Bob Napoli

market in for you there Hi. banking slowdown. given as the results we're guess significant market, as are afternoon. and It the why seems are tough Good the crunch you concerns about stock credit Good higher you what in just Thank seeing confident environment. the guidance of consumer with I lending? potential question. is like all risk for in a regional the

Sean Blitchok

Sean. Hey, Bob,

Bob Napoli

Sean. Hey,

Sean Blitchok

I hasn't now think couple longer. out ones. popped this market is quarters a the of will of just There's couple quick in you been if for One continued of a pressure nowhere. not if up

of we're ordinary. not anything the so doing out And

held have up Volumes volumes. strong demand, strong see to continue We nicely.

consumer continue And has isn't material the I -- though in it the decelerated so year. still think even and growth there really throughout is the it will

outside that's of is historically no of one a number pattern guide. see our just slowdown So we

is very of this base. early just very base. said other will and two-thirds fiscal of our the quality which to it's policy mid-market, morning credit, listening base tightening what I of credit do. around customers. and our credit making hours the remarks at union of our my because and hours on the up customer to it's I just customer up the they Fed We the look And think because was and in I lending depository is what -- are of the prepared high-quality

it high-quality it, base a volumes. up customers for but -- to in lend and our factors multiple very shows There's lend we our

see where of have proportions where the we kind just So at-risk base. you don't are or at-risk institutions high commercial And see in that you of lending. our typically

have And into so anticipated built It's in guidance the top-line confident we're deceleration. the we as today. and it so our very stands

Bob Napoli

Thank out versus union banking you. of And of the seeing you a union as differences two-thirds regional then the follow-up as market? your you of portion are the credit base business credit said

Sean Blitchok

No. anything have of just union, credit union a partners. the the members. have sheet anything stable. of is a if have unions And right? They If customers. fundamentally credit balance liquidity They operate -- different, I They more credit so don't

And unions. don't calls escalation any -- credit so we I from take don't

a and of we're do steady, but fact, more how As matter we of volumes union the going say, forward. credit more the do not team, that only looking are at would obtain how obtain we population I Richard with go-to-market

Bob Napoli

you. appreciate it. Thank

Sean Blitchok

Yes.

Operator

comes ahead. Credit next go Nik from Please question with Cremo Suisse. Your

Nik Cremo

guys. taking results sales my hear not Congrats strong the down. it's question. has that on cycle thanks slowed to Hey, the and for nice And

QX QX First, lending a looks guide. can flat quarter-over-quarter perspective and midpoint factored an in normally. you It from up guide that the saw the lending volume on how that's first into April of being provide update at you trends the the seasonally volume in

So just in off taper seeing bit or is little that conservatism, are more a April? volumes you lending

Sean Blitchok

speak assets of it's it's We concerned to nothing did across in consumer, -- the a were inside talked is bit deceleration saw April I I et what what numbers The non-secured which we a of We less of strong strong in growth the The lines growth cetera. terms loans, why rate, -- numbers don't credit slight be use I of growth to But think, just don't the personal were use bit from terms is growth about would more board little business natural in here. the nothing around decreases remarkable can general We earlier see cards, in Sean. but Nik, the I XXXX. volume say. conservatism beat. little specific in volumes. but about, in of

Nik Cremo

just are And lending Thanks update was last I for my the business launched MeridianLink you to follow-up, much was color. traction an your all guys that hoping get on for having product with the very quarter. then

Chris Maloof

thesis. on integration remain is This But buy. that IP with our question. this a We Chris. Great track was remember

product and now that proposition QX seeing it selling overall -- So around great that. into value to and of we're the and we QX some successfully part over the integrated platform our as having conversations the in market customers

Nik Cremo

you. Thank

Operator

of Next Bank question with Please comes go Koji from ahead. America. Ikeda

Koji Ikeda

Hey, a could the more little for in we on to taking ask wanted guys. bookings. the Thanks dig if I cross-sell question. you, bit

You remarks the in increase bookings. the mentioned prepared in cross-sell XX%

is you it that it it's to a but maybe If or platform, it what the been could is would going tough have would, what it's you cross to that products easy it like sell about about talk cross-sell what sell, sounds driving about booking strength. And end guys. guess, quarter or the is what the assume market good I for pretty

So any there you. Thank helpful. be sort would of color

Chris Maloof

been sales back Chris. is the This that investment we've really And to and making. this marketing ties year-over-year

expand We recognized customer to five has modules and our of average a We concerted customer runway year. capability have made so both perspective that of effort last on four a our our XX to messaging Remember penetration on that base. increasing or there. contact a our lot

and institutions value a an To R&D add to tie then opening the from that been on do we've more of lot impact a successful we've grow where market. of solutions these to is, focused perspective from looking something be very their of where that, with directly that each account been more part deposits an support on than our together perspective. that specific to are And is some seeing what we're

motion and And LOS our a ultimately we're the perspective. our perspective a as base automation invested integration an selling our consumer resonate then seeing from across customer that we ROI have between and in account group the well as we've -- marketing of opening, both really seamlessness

our that's central one and to example from platform So selling that's our motion. just thesis

Sean Blitchok

is the there. past cross-sell focused say first Yes. I would And on just Sean. I've in the the because said Koji, opportunities motion go-to-market this will are that kind be of our wave quarters, of

cross-sell And so bookings this of were quarter XX% intentionally. our

of catching it's So, see natural to a very very in almost successful, logo inside and the going pleased we're cross-sell future almost go-to-market then our with XX% quarters. quarter. where the progression as new up cross-sell phases But beginning the

Koji Ikeda

And you. that. for a Sean, you Thank follow-up it. just maybe Got for

I like bottom Is I'm like think turning year. the maybe assume You the is from correct it loan kind basis commentary and from mortgage mortgage about sounds performance and wrong It for year-over-year rest, be like loan the XX% segment? growth first the right full of also is kind this seasonal the market mortgage total the the me quarter It market, mortgage kind mentioned, of guidance of revenue here. that down sounds in for going coming if to feels going -- and to loan the forward. just think of maybe to way the

Sean Blitchok

perspective in beating yes, XX% talked the than We reason. results for a QX but countercyclically think good lending, bought in market results mortgage considerably. general, OpenClose year we saw in year-over-year down better We remarks. that I our a from for saw is prepared DBS, about anticipated. good we

piece, piece, So, kind the even exclude DBS component mortgage we're still the of you or down X%. only XX%, roughly lending in X% being OpenClose down if inorganic

So, we're beating the market.

-- did our turn a We this little year I our think a in of last forecast, call. XX% in consistent is and bit is corner. the throughout said quarterly

out positive our with it is trough minimums structure, that contract with our that the hoping we come going was we're and the going that was forward. this in case us, to place, and For thought

Koji Ikeda

taking you for question. Thank much so it. the Got

Sean Blitchok

Koji. Thanks, Yes.

Operator

comes Your Please [ph] go with ahead. Matt BTIG. from William Nemer question next

Unidentified Analyst

question. Hi. my Thank you for taking

if have in changes know the the leadership new major of been strategy go-to-market wanted given kind there with any Just sales and to marketing?

Chris Maloof

our platform the last enable to for customers them bring been remains This compete three over quarters is comprehensive we The consumers. for to we've Chris. a messaging, strategy how consistent ultimately what

we is to being as that to team look company again. on journey brought this help the in double us So

Unidentified Analyst

you. Great. Thank

Chris Maloof

Yes.

Operator

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

Jessica Wang

question. Hi. This got I is just quick Jessica Wang one on for Alex.

with the address to road about your now of velocity move, that in resources. R&D areas you're of What we completion you now So up think a And on product how the cloud? big you're a are looking Thanks. freed map? product cloud lot should

Chris Maloof

Hi. This that. our the excited cloud is Chris. Very about the discussed of host that we've with and move benefits come to

Now investment consumers in outgrow advantage that those are three-fold. rolling the maintain resources a market. our and of thus extending is enabling doing we terms And our in off, way competitors our for we're customers to and that the out-compete their

enabling is the on make expand successful. tools final maximize fast the best-in-class One auto decision expanding how to ensuring on including marketplace our get to loan and auto a they to digital that customers can the the the have they as their well population And of they consumers' own leveraging that then number percentage can decision meaning one as our so technology, technology decisioning, -- that profitably. base third and is expectations

we're that to those down So, path with additional accelerate resources. going

Operator

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

Andrew Schmidt

the Thanks been loan sharper volume, like kind get questions. for curious decel more the in the kind overall comments gradual remind that But just a just could finer for kind positioning how of If scenarios what you're on the be on down. credit assumptions a spent sounds a of about of environment few savings that just of guys. maybe you we It there can see front. know, with how sensitivity kind is it's you put did my think point so of Any taking and that today? Hey, there's would helpful. to contraction on that. regarding a just I us a questions

Nicolaas Vlok

this Nicolaas you and question. is Andrew, thank joining the in Hi, for

to in I too. of history what need is the the at you the think take look company a MeridianLink

time to we're team even slower spent the company's staying Over we've the through how And Recession during remarkably think rates continued and looks business at And I to ahead from grew. still lending we've Recession window and did but consumer of a the the thinking compare this in what the Great narrow year Great the like. years can at the model grow around considerable company if year of decades last job at the this year you looked what prior expectations. grow kind fiscal good and what But two, the the into and curve we benefit put at some beginning we And from the history of that our cycle the can past year's to guide of maybe extent, on forward this have little not our months we've we trends. environment of or up in slowdown from moving we've XX better that viewpoint constraint of because And in already for kind part of headwinds. headwind the in the accounted longer. operated a some a

it later through doesn't past of number up Now a vehicle, class system and say be in certain interesting tightening a see vehicle that's where different would play well with of application which and call it and that acquiring let's second in the buying else lower dynamics approved cost we've a where a in different credit think kind hopes few as asset environment may get seen approved. you consumer the cycle entering get for of unfortunately brand somewhere security an a our case done this is the little times or a same a moves of and kind the social to showing in BMW a BMW cycle And a and model. lending

in five in I needs is a also mix three, you here or have well certain is into of it with very but -- functions add the interact typically his in I total what not consumer for a negative first by it's multiple the touched vehicle every base somebody, And then, and four asked on customer question with failure a a years a our who's touch will on cycle would well the to approval. with early leave Sean And demographic. and points commentary that, us, system if thought due to

what kind to folks mortgage it who salary get have of that's seen in XXXXXX recession. a and their of past And the a a They've trends bi-monthly demographic at of a We've of so in good looked paid account in folks And at a in from is the of far deposit is couple been credit over rarely looked the and business with contractions. retail who and yes we've been this and we've of early loan business. goes our cards, personal And a shape. we've bank members what created And or very a COVID kind union there to goes of and bank we a year great retail a done business kind focus. the stages seen of in and perspective, stable the have modeling. my our It how a payments. car have or are

in There's the curve interest now. MeridianLink's in and ahead as a interactions. is clients And ton such solutions demanding for digitalization and trailing. and need market right not not offering and touchless traditional platform are the customer more growing. of It's our is customer receding. their base members interactions base And They're our for lending of the

in in. the interact future most integration is from standpoint, consolidation. medium-term and to are the positioned platform, who are new have force will future you I new and who be right the so will investment ones consumed ones be those need right If the driving likely the clients ways XX-year ultimately lacking and a technology near the today they who And right going in do at clients be to with best those the will the cycle, gain will market members. They believe be a look investing if to lacking

kind and lesser of here, and maybe And Now, deposit over regulation the merry internally, this we've few conclusion of a the last go the that out we've tightening, of kind see banking swings is, months. kind reached of round taking the of institutions. around go you whole the lot debated

it's banking there's maybe than And but more be expectation credit side It's not the smaller the to shrinking. is with of of side. the Our union those, on number is that's going the system a interacting number growing. consumers

that purchase cycle there loan The and asset continuing and and in some a meaningful is momentum And for consumer more is of economy, more drives interaction every consumer COVID and decent more US pretty where has play in digital. accelerating. application. And of and was the more jump becomes also the an the it initially, form

think headwinds. So, or my a in quarter take little a is be maybe, bit two, may there of if it more you

But at times, have model or over business overall, this see in headwinds look now. because to we're significant stronger the in in better two that the don't natural in times if I whole cycle business decades, tends tailwinds, anything through on change for accounted MeridianLink you be going we right we've this and business the and a

the the to volumes, with. and some year for pretty how alluded that a I'm in weakness, on call that or there's of our here. XXXX nothing business confident. Sean, we the but started based little and will of I'm volumes from the see have guidance. us is So, April areas, for to ordinary kind We view strengthen here, with out QX us on to the year-to-date out different that view lead we the a April view Sean

I said to I've don't want I've a to know lot. if you Sean, So, said. what anything add

Sean Blitchok

answer. perfect be That would to was idiotic. think a say anything, would I be

Andrew Schmidt

very Thanks, I Agree, comprehensive. agree. Nicolaas.

to be better the Some of need the market. of do of segments terms understood those end in nuances

On the a that's also was well. a positive cross-sell, there. But And go-to-market focus been may very MeridianLink there a as me to be clearly, perspective. from helping momentum it that obviously, seems One,

platform, may a on of Just cross-sell. having single more incentivize sort things

but improved what MeridianLink one kind thing, to on contributor well Thanks extent as One, it's a One the specifically curious is Obviously, a just So, component. as MeridianLink the go-to-market. lot. not of

Chris Maloof

through I central Yes. and This is much Chris, success. alignment view to sales very marketing and is R&D the the

really is to partner buy to value everything build platform approach, buy So us, more down bit has through customers, from the more value specific to solution the add little a right? add prop one apart. being to extending together we a So, them encourage to as more look we than comes it extend to our than

item, one would So the little at and extend when bit yes. that I And, migration cloud with really a do what we resources, is I asked looking discussed inter-connective was how about tissue we capability. that do last,

associated that center prop value the So the our of cross-sell center One, is rest of And the that. strategy. MeridianLink the and organization supports the is

Andrew Schmidt

and Thanks. we much. how has very more a terms bit one that it. and in talk, time to then quarters quick focus. revenue coming if little could trending efficiency to I Got you sneak you years. Maybe been and And one, of implementation about could a the should know just that's how over that, reducing Thank in. progress expect I

Nicolaas Vlok

audio great. a would Was about question. this And be I but shaky apologize, [indiscernible] the last mine was question little in That on the Thank you.

Andrew Schmidt

It was Thank Yes. about you. Yes. --

about a Sorry, absorption. I know that. that's efficiency focus. It was about backlog implementation been and

Hopefully evolve that how trending that to quarters So, came through and years. that's clearly? we the and over just should coming expect curious how

Nicolaas Vlok

clearly. came appreciate trending repeating It's that. and I Thank It through you well. you

the the work and to continue business. backlog ACV release We down in

look of ton Dean the Customer you the of And very enablement results if experience Officer. very also services in overall predictable services, of a have Dean We're to Germeyer our excited kind join scalable, story. our a of us organization. services brings at scaling Chief think as had that's building I part repeatable,

we're or accelerated where and the in level. that and is I really Dean how to where leadership the next team we things that us I we're to from over we've think his focus the And But done so well the at, going at. playbook where move years think ideas business we've to help last to remarkably and three were

for XXXX more the the new to up So, be organization having team pace it's into through pick go doing scale what think even excited and than how a to Dean But we expand. will I'm and seen going join we'll continue XXXX driving as business I pretty on we've today. that and focus planning

Sean Blitchok

as the point about us I talked more think I -- we've it the ACV to that. of on agree has a but think bit And different even so more phrase internally working around I right? same we're means turning kind the corner to whole this a heartedly before, see like Nicolaas. connotation. Andrew the one I'd release, thing And but with just backlog little be

that full reporting I time. to bookings, and an services in ACV I think between due release And be velocity, over struck intention on that has that have there's time. equilibrium

agree Nicolaas, it's say now, with than more manageable I would But I right it has been.

to We that's have will improved in release have the backlog the [ph] that us guidance. around implementation have services a specific line our that and to the ACV we do provide good of cursor we sight cycle-time

Andrew Schmidt

very Thank guys. comments. Appreciate much Perfect. all the you

Sean Blitchok

you, Andrew. thank Yes,

Operator

Scott comes from next with Wolfe Wurtzel Research. Please question go Your ahead.

Scott Wurtzel

for Hey my taking question. guys. Thanks

from me. one Just

cross-selling. Going your noticeable byproducts was if bifurcate I noticeable April, back shift we that maybe to in we as versus from if banking wondering was saw there January, was of any existing shift March, from sort of just in topic customers a any there demand March your February customers? demand turmoil in sort on and the result the of

Chris Maloof

enhanced What of in we go-to-market our along motion increase in recently account marketing around to our with specifically did tied was our we automation account an opening. had was interest integration the which solution opening solution,

the proposition overall one points their help on of that's accomplish the leverage cycles, value outcome. we together is our like great them depending So, economic can really about thing one to different platform

So, they our that grow in this leverage solutions case, they a to combination deposits, capability. want of to extend can

Scott Wurtzel

Great. Thanks guys.

Sean Blitchok

Scott. Thanks

Operator

go Your with next from Saket Kalia question Barclays. ahead. Please

Saket Kalia

appreciate But this I late, taking Hey great And net apologies way retention if disclosure. Okay. just so with solutions here. the maybe the to the and improving guys. business. asked. by Thanks you my joined in was lending the Sean for see start I apologies questions

about net products what's the level you sort more wonder could driving deeper retention in like that up that Any of expansion? on having of color be NRR you feel improvement in that's one what sort success are if would driving talk volume-driven a helpful? of most or just if I of sort

Sean Blitchok

hi first. Well, Saket

DBS verification, flat lending difference continued The time. data of period supplement, think is the we've a a So, component very on disclosure calls clearly big to in between for at see our year-on-year. versus mortgage NRR it XXX% drag DBS lending clearly a software DBS versus Second right? software out The XX.X%. I long balance of

lending in XXX% line, see really the don't but improvement I higher benefit huge are the rate. numbers inside of really even in a an that towards it's NRR skewed total, a consumer expect we from So perspective. that at

-- so -- above point. even at this And and is but XXX mortgage

know a the provides chance to -- I think review supplement, color if but don't for. I is added think So looking that that had this you're I you

Saket Kalia

Yeah.

I that saw of helpful. very improvement. I difference And between was of the driving more two. So wondering sort what's those kind

look I lending in was XXX% back the about if XXX%. we at mean, year So a this ago

ones just success from the And products volume if That's a of one really of sense? lot question. are kind of that it's the products the of kind it driving which what's or either clearly, or it make of So new Is from it? new coming of crux the other? sort in -- those Does products. are

Sean Blitchok

that cross-sell the we combination now opposite the saw things. a the in and it's percent make I think kind the where number big it year want the I you're wasn't you're of have was last consumer said and mean now with stabilization cards. consumer kind I footnote. the seeing of sure a that across a can't pace of percent it larger part or entire like before. But consumer in at the of overall calculation inside board of of was of product a That's correction you credit it's we don't of I driving with can't to mortgage that I is volumes, slower the point another. of NRR the inside to being opposite which to a consumer. and of is -- was of what and point Yeah. motion, now one product. can't seeing right do consumer note personal I take point It's component a sell-through loans. think I kind I cross-sell inside that or auto. to included a

Saket Kalia

for it. the follow-up helpful. Got it. That's Got you. maybe Nicolaas for

in question. I was it think another

color to -- do little wondering free taking gains this was you you're it Is in-house to of gains? -- providers? taking solutions? on where you're as where it share feel you Is share from You core like Where well. Chris on like feel more do course, from a some I of more, feel feel getting bit. those and from software qualitatively alluded Is chime it other share right? like in the little bit you're A providers? you

Nicolaas Vlok

basis decade tell would I'll I taking where there's point think my first smaller not where way is area with a all you underinvested mid-market who of B right much and that And a broad decisioning. the order digital more in institutions, one pretty offering because at the out. platform we stand more wallet I readiness, of Saket against for is peers over last say we're single invested least offering. there's a on a who that now in of isn't a invested kind is my executing option solution go perspective deposits have sense percentage a above in

conversations with have And compete is offer. what I is not on today rather customers say would with we we our is it's that difference -- the what about

have across to platform. information access your You our

do analytics You platform. ability to across our have the

enhanced the about marketing where ability the across we high single platform. have to automations a automation at competing market. about and end vendor. to choose with And at of it's that less point choose more be our and other not do we to compete the You It's

point definition solutions, else. We who everything are integrations kind average. we And win my as marketplace not of APIs more we we are, into we enabled across as legacy with pretty is where cuts doesn't and that with partner than on offerings and offer a of the who are legacy workflow-driven are focused solutions, single solutions at where higher a percentage replacing more

there to ability the think into automation to into. So platform the over room the so win I there's not well years analytics opening four more workout and -- to integrations It's it's and with go from to platform types three collections auto with the the marketplace R&D integrations buy everything enablement partner innovation somebody do to have to a the across account compare all us needs here. and where MeridianLink's decisioning or that loan the the more if to you offering needle we single against last either we we over moved a all and

all where above coming above because say we out put really and your there pick and same the can't competitor thing. the finger of it why I locally with the you a goes option single some. And B, of that's competes all sources see And MeridianLink then from on would

Saket Kalia

Got guys. helpful it. you. Very Thank

Nicolaas Vlok

Thank Saket. you,

Operator

question ahead. William go [Operator with Bob next comes Please Napoli Instructions] from Blair. Your

Bob Napoli

data last demand analytics you Thank any on in touched that insight for to answer update product Hi. the I – platform product? MeridianLink or for follow-up. it you just outlook that for but that on

Chris Maloof

is This Chris.

clients and the cards to can going is Insight So report provide associated our the we business our review process forward. central MeridianLink

the is our what against to how factors cycle. origination customers specifically it performance across key So see benchmarked enables for they're

to technology a to deeper us day-to-day drill can scale an that from they we change uptake three that work our the a plan they five them their year data get anywhere leverage else way road get in map demand. and to that to on So such that on cornerstone is as and data seen a with can't and that them for Insights due we've product we basis through how as

Bob Napoli

Great. Thank three million -- then the you. And shares you did repurchased quarter. in

was -- have read planned, I through? capital return that capital think you I that was playing more perspective or And opportunistic? do from a

Sean Blitchok

shares. not That's $X million

Bob Napoli

Okay. It lot. like seems a

Okay.

question. the Forget

Sean Blitchok

tiered that we're That's repurchase buyer. price. stocks based plan. to of structured Where participant market in have on been general just on we our where repurchase been we've and on a in just Okay. But a part is the value quickly see touch

Bob Napoli

you very much. Thank

Sean Blitchok

Yes.

Operator

time. There are proceed. no further questions at this Please

Nicolaas Vlok

And earnings family. close the experiences as our for us. And operator. we the you, customers to I'd who to MeridianLink team strives partners welcome new and Thank dedicated best everyone to with today's our like call, works create

our of grateful a we basis. As to employees I'm daily we hundreds commitment the grow, whose approach maintain customer-centric and me on inspires

partners. I And forum our expertise. of XXXX their from insights Our partners again. user support staff This and speak we happen customers, the we gather forward from event will benefit to and when wouldn't sharing look our customers speaking of without

a user was enriched joining where I we a relationships. and key and provided valuable to incredibly thank played evening. great success and of operator. year's engagement are look today to a event. moments strategy Last you Back our that It resounding and and for feedback you role successful forward another Again have in forum afternoon,

Operator

concludes disconnect that for your lines. for This thank call participating Thank please you you, today. gentlemen. We ladies ask your and conference you and

MeridianLink (MLNK) 2 May 232023 Q1 Earnings call transcript