Good morning, everyone, and thanks for joining us for Billtrust's First-Ever Virtual Investor Session. I'm John T. Williams, Head of Investor Relations. We're very excited to be here live to showcase our executive team, dig deeper into their areas of focus, and update you on our business. Before we dive into the agenda, I'd like to remind you that today's presentation may contain forward-looking statements, including our full year 2022 outlook, our expectations regarding the continued growth of our software and payments business, potential for margin expansion, net dollar retention rate, and our medium and long-term targets. These forward-looking statements are subject to numerous risks and uncertainties, including those set forth in our most recent annual report on Form 10-K for the fiscal year ending December 31, 2021, filed with the Securities and Exchange Commission on May 12, 2022, and in subsequent reports that we file with the Securities and Exchange Commission from time to time, and available on the investor relations section of our website. Actual results may differ materially from any forward-looking statements we make today. These forward-looking statements speak only as of today, and the company does not assume any obligation or intend to update them except as required by law. In addition, today's conference may include non-GAAP measures. These measures should be considered as a supplement to, and not a substitute for, GAAP financial measures. Reconciliation to the nearest GAAP measure can be found in today's investor slide deck, which is available on our website. There will be a Q&A session directly after we conclude our prepared remarks around 90 minutes from now, and I'd ask you to please send any questions or comments to ir@Billtrust. With that out of the way, I'll turn the stage over to Flint Lane, Billtrust's Founder and Chief Executive Officer. Hey, thanks, John. Welcome everybody to our first Billtrust virtual investor session. We've got a packed agenda featuring lots of the executive team here at Billtrust. I'm gonna speak just for a few minutes. You hear from me all the time, so I'm sure you're excited about hearing from some of the other members of the team. You're gonna hear from our Head of Talent, Jeanne O'Connor, who'll talk about the most important asset we have, which is our people. You'll then hear from Greg Hansen, who runs our product organization, and he'll talk not only about some of the things that we've built recently, but some of the things that we're building for the future. Nick Babinsky is our General Manager of the Business Payments Network or BPN, and he'll talk about some of the exciting things that are going on there. We're gonna tag team with Jay Johnson and Steve Lindeman, who'll do a little fireside chat talking about how we land business and how we get business live. We have a great interview between our president, Steve Pinado, and one of our newer customers, Sunbelt Rentals. Finally, Mark Shifke will finish off with some updates on our financials and some revised guidance. As John mentioned, we'll be doing live Q&A at the end, so feel free to use the Q&A link at the bottom or the email that John shared with you. I thought it would be helpful to first start a little bit with where we've been and where we're going. We went public back in January, about a year and a half ago, and we went public for a very specific purpose. We didn't desire to be a public company. We went public for the purposes of raising additional capital so we could drive continued growth in our business. We raised roughly $300 million through a combination of our IPO and our PIPE offering, and that really fortified our balance sheet. We were able to clean up our cap table from 20 years of venture investments. We're in a fantastic position from a cash perspective. What we told investors were we're going to be more aggressive around sales and marketing so that we could drive more meaningful revenue growth. We said that we were gonna drive higher margins. We said we were going to really focus on building out the channel and having partners drive business for us. We also said we were going to be acquisitive. I'm gonna update you on some of those things that we've accomplished over these last year and a half since being a public company, and then talk about some of the things we're focused on in the future. From a revenue perspective, as you know, we measure revenue as a net revenue. This is minus reimbursable expenses. We've guided to roughly a 19% CAGR in our October investor deck. We've outperformed on this metric quite handily, driving 24% CAGR over the last two years based on the midpoint of our guidance in 2022. On the gross margin front, we also outperformed, and we continue to drive higher gross margins in the business as we continue to sell more software and payments revenue, which is 80+% gross margin. As we continue to migrate customers off of print and onto electronic, we're very happy with this financial performance. We also did two acquisitions, as you know. We bought a company called iController back in October of 2021, which leapfrogs us ahead of the competition in terms of collections capabilities. We've been actively selling this product across the Billtrust portfolio and have started to land business here in North America, where iController was very under-penetrated. We also bought a company called Order2Cash in Amsterdam in February of 2022. We're just starting to get some of those synergies now, but we're very excited about the future of these two acquisitions and other acquisitions that we're contemplating. We've also been busy on the channel front. We said we were gonna be aggressive around channels, and we certainly have been aggressive on channels. This is some of the new partnerships we've signed, certainly is not a reflection of all the partnerships that we have in place. I'll point out one which may not be an obvious one as in terms of importance, but I'm gonna talk about Procede Software. They're a software company that's focused on the equipment space, the heavy equipment space, and it is a referral partnership. With a referral partnership, when your ERP recommends that you use somebody to focus on accounts receivable, it is a much shorter sales cycle. We just landed a deal that took 32 days from start to finish. Our average sales cycle, anywhere between four and six months, and this greatly accelerates the sales cycle. We see this in a lot of our partners. We're not expecting all of our partners to work out exactly as planned. Sometimes they go in the wrong direction. If even half of these partnerships drive the success we're hoping for, we think that'll have a positive impact on our business. Looking ahead, we continue to believe that we're gonna drive significant growth through our direct sales effort, both in the US and internationally. Jay Johnson's gonna speak a little bit later about how we do that. As we mentioned, in the fourth quarter, we had our record bookings quarter. In the first quarter, we had a record in terms of new logos, new customers that signed on board with us. We continue to see ample opportunity for us to grow direct sales, and we expect to continue to be aggressive there as we maintain an LTV to CAC ratio of over six to one. The Business Payments Network and the Digital Lockbox is an amazing breakout opportunity for us. It is a blue ocean strategy, meaning nobody is offering those kinds of capabilities, which means that we have that all to ourselves right now. We don't think, you know, 1,000 customers are gonna need that. We think it's 10,000 or 100,000 businesses are going to need a Digital Lockbox. The key for us is figuring out a way to get to market to land those kinds of customers. We're gonna talk a little bit about our focus on driving the bank channel. Surcharging is something we announced last week at our Billtrust Insight Conference. For those not familiar with surcharging, it's very much like a convenience fee is for consumers. We, as consumers, will sometimes be asked to pay a slight upcharge when we use our credit card at a motor vehicle bureau website or a utility website or something like that. They call it a convenience fee, but what it really is is an extra fee to focus on the impact of what those credit card fees would be. In B2B, it's called surcharging. It's more complex in B2B 'cause there are state rules that regulate how surcharging works. Greg is gonna talk more about this, but what we're most excited about is about half of our online billing sites don't offer credit card payments 'cause they don't want the expense related to credit card. When we're able to roll out our surcharging capability to them, they can instantly offer credit card payment acceptance at no cost to them. What we do is we charge the small business that is using their credit card a small surcharge, which will manifest itself as additional payment revenue for us. We're estimating 50+ basis points in surcharging revenue for each of those credit card payments. The adoption will probably not be as high as normal adoption when, you know, credit cards are free for the businesses. But we've done some research, and we expect significant revenue from our surcharging capabilities that we launched last week. We've already signed many deals related to this and expect this to have a revenue impact, not in a material way this year, but probably next year. I talked a little bit earlier about potential acquisitions, and we are focused on our M&A pipeline. We've got these two deals that we've just done in the last nine months or so, but there's lots of opportunity for us around here, whether it's further geographic expansion, additions to our product roadmap, things that drive BPN success, things that get into supply chain financing. There's lots of opportunities that we're going to look at. We expect to do one to two deals per year. Some years we'll do none, some years we'll do three. We're focused on those things that help us with our strategic goal of being the globally dominant provider of AR solutions and B2B payments. Finally, one area that we're excited about is around accounts payable. As you know, the Business Payments Network is in the business of serving two constituents, the suppliers, which are our normal AR customers, but also the folks on the buyer side who wanna make payments to the suppliers. We get to those buyers through their agent, the accounts payable companies. They act as an agent for many, many buyers. We're actually in the business of serving both suppliers and AP companies. Today, we sell AP companies the access to BPN so that they can drive more significant electronic growth. We've had a lot of conversations internally, and Nick will talk more on our BPN strategy, but maybe there's more things we should be selling to these AP folks. Every one of these AP providers has to offer their customers a supplier portal so that when they send out a virtual card, there's a place that they can log in to look at and access their credit card payment, their full credit card number, as well as the remittance information. It doesn't make a ton of sense to us that 100 AP players are out there building their own supplier portals. We think there's an opportunity for us in the future for us to be in the business of providing that supplier portal. We have built that already as part of BPN. That's the Digital Lockbox. Why would all these AP companies build their own supplier portal when we have one that offers the ability to receive all of your payments, not just from that AP player. That's more distant in the future, but that's something that is on our roadmap, something that we're thinking about that may come into play in the next year or so. With that, I'm going to pass it off to Jeanne O'Connor, who I've been privileged to work with for quite a long time. Jeanne, take it from here. Thanks, Flint, and good morning, everyone. My name is Jeanne O'Connor. I am the Chief Talent Officer here at Billtrust. I've been with Billtrust for 11 and a half years. When I started, we had 50 employees, and I was a one-person HR department. I've had the pleasure of helping the company grow and driving our award-winning culture over the years. It is something I am extremely passionate about and something that I really love to do. As Chief Talent Officer, I oversee all things people-related, including talent acquisition and retention, talent development, total rewards, and culture and engagement. In essence, I'm responsible for ensuring that our most valuable resource, our employees, are happy, engaged, and fulfilled in all aspects of their Billtrust experience. Given that, it makes perfect sense to begin our track today by talking about some of the reasons why we've repeatedly been named as one of the best places to work and how we intend to keep that competitive advantage going forward. First, we have a remarkable culture, starting with tone at the top and centered on our nine core values. Our values include customer commitment, invincibility, being open-minded, accountability and ownership, showing fiscal responsibility, listening actively where results matter, our families come first, and we embrace our unique individuals. These values are the backbone to our company, the backbone to how we operate and do business. They are the backbone to our culture. We treat our employees like adults, let them know what's expected of them, reward them for results, and give them plenty of opportunities to learn and grow, both personally and professionally. We work hard to exceed customer expectations and do so in a diverse, inclusive, and positive environment. We value the unique backgrounds, skills, attributes, and perspectives that each employee brings to Billtrust. Whether it's participating in a Billtrust for Good volunteer event, being a member of our talent advisory board, or supporting one of our employee resource groups, our employees are encouraged to bring their full, authentic selves to work every single day. We are committed to seeking out the best and the brightest, where every team member contributes to a culture of belonging and delivering high quality results. Second, we recently adopted a work from anywhere policy. This approach provides our employees with more flexibility in their day-to-day lives. It means that we can be effective at work while spending less time commuting and more time with family and friends, creating a better work-life balance and fostering an environment where we generally have happier and healthier people. We believe that work should not be our employees' first priority in life. Rather, family, however they define it, should come first. Our work from anywhere policy further supports this firmly held and long-standing value at Billtrust. Third, our work from anywhere policy has the added benefit of what we call boundary-less recruiting. We're able to focus on finding and retaining the best talent no matter where they live. A distinct competitive advantage for us in a very tight labor market, and an environment where many other companies were, and still are, less prepared to deal with new labor market realities. Our remote work environment also supports our goal to maintain a diverse and inclusive workforce. We are able to hire people from more varied backgrounds and demographics, and also retain talented workers who perform better when granted the flexibility and safety of our remote work environment. As these realities evolve and other companies shed employees or the labor market moves in a different direction, we're in a position to move quickly, press our advantages, and continue to attract top talent. Finally, we've invested in a new environmental, social, and governance function to ensure we create long-term value for our stakeholders. At the end of 2021, we conducted a materiality assessment to identify the ESG topics that are most significant to Billtrust business and most influential to our stakeholders. We know we can realize value for our business when we look after our people, our society, and the environment. We have meaningfully reduced our environmental footprint with over 95% of our staff taking advantage of our work from anywhere policy. Employees were using over three times more emissions annually in the office than they are now working from home. We see greater opportunities for impact on the horizon. We enable thousands of growing businesses to reduce their paper use and emissions. We set hiring goals to strengthen the diversity of our workforce, which we have already made progress on, with 41% of our new hires in Q1 contributing to our diversity targets. In Q3, we will publish an ESG update on Billtrust with a summary of our priorities and recent achievements. These are just a few of the many reasons Billtrust continues to be an employer of choice with a culture and a value system I am proud to be a part of. Thanks for your time today. With that, it is my pleasure to turn it over to Greg Hansen, our Chief Product Officer. Thanks, Jeanne. Hello, everyone. Nice to be here today. I'm Greg Hansen, Chief Product Officer. I've been with Billtrust almost two years. I oversee product management globally, including user experience, analytics, and the roadmap for our portfolio of products. I've been in top product or GM positions for leading SaaS companies in multiple industries since 1999. Previously, I was the chief product officer for PrecisionLender, which was acquired by Q2. I'll spend a few minutes today discussing our product vision, priorities for investing in our platform, and why that's important for our customers and investors. At a high level, the areas of focus for our R&D investments are related to maintaining and expanding our leading position, but also developing new high-growth opportunities and increasing our addressable markets where we can maintain a competitive advantage. In particular, the Billtrust platform provides customers value through reducing the cost of doing business while also improving customer service in the AR lifecycle. Costs can be reduced through faster processing, faster collections, automation of cash application, reduction of errors, shifting workloads to more digital workflows or more efficient human task management. The Billtrust platform supports an incredibly diverse customer base across industries, sizes with various forms of invoicing, payments, cash application, collections, and credit management, even e-commerce needs. Our vision is to streamline the accounts receivable and B2B payment process for all of the revenue from our customers and give them the ability to easily and continuously transform their business to generate value for their customers. The main priorities of our R&D investment fall into five major categories, internationalization, unified payments, invoice distribution, analysis or analytics, and integration. The two most recent acquisitions directly impact several of these areas. Both Order2Cash and iController bring deep knowledge into the R&D process, as well as a wealth of customers in market. From a product perspective, the iController product jumps our roadmap for collections forward dramatically and is now available for sale in the U.S. as an integrated solution in the Billtrust platform, including the Billtrust payments engine. Two of the most exciting features of our enhanced collections product, formerly known as iController, are the cash flow forecasting module and also the ability for fast implementations due to our library of dozens of connectors for common ERPs. The Order2Cash acquisition brings a robust capability for delivering compliant invoices to government portals. As with iController, this capability jumps our roadmap for invoice delivery forward significantly and gives us new rapid development capabilities to continue expanding invoice delivery globally. This is a powerful expansion and enhancement of the invoice delivery capability of BPN, which addresses significant workflow needs among our customers in terms of delivering and monitoring the status of invoices that match buyer and regional preferences. Regarding internationalization, we've also recently launched new language and currency support for invoicing, presentment, and payments in EMEA. In the payments area, we will soon launch a new unified payments experience with shared wallets, payment rules, transaction history across our portfolio. This will help our customers serve their customers' payment preferences more seamlessly throughout the AR lifecycle in North America and EMEA. Later this year, we expect to introduce the first of many analytic dashboards to help our customers understand both the state and status of various processes in the AR lifecycle, like invoice delivery and payment updates, but also to provide insights into opportunities for further optimization. For example, what portion of my customer base might be ready to switch from paper to digital? What portion of my customers might switch payment methods to help streamline my cash application process? Or what collections campaigns are reducing open balance most efficiently? While these data have been available in raw formats for years, we know there is an increasing level of demand to digitize process and so among our customers, a demand to make informed data-driven decisions across the AR lifecycle. Our dashboards make these data easier to consume and act on for our customers. As Flint mentioned earlier, surcharging as a service in our payments business represents a significant opportunity enabled by our PayFac. While surcharging has been possible for a while, we are introducing a new product where Billtrust will manage a compliant surcharging program on our platform, which relieves our customers of the effort and risk. We will monitor 67 different federal, state, and card brand regulations continuously, ensuring 100% compliance. Our dynamic surcharge calculation engine ensures that appropriate surcharge amount is applied without violating card brand merchant policies. We allow our customers to turn off card acceptance in non-surchargeable buying scenarios based on their policies. You wanna block credit cards? Okay. Want to allow surchargeable card types only? Okay. We make it easy for our customers to adopt and manage surcharging. Finally, I wanna touch on attachment rate of products on the Billtrust platform. The most commonly sold product is, of course, invoicing, delivery, and presentment. The most commonly paired set of products is invoicing and payments, which are combined two-thirds of the time. The most common third product grouping is invoicing and payments with BPN, followed closely by invoicing and payments with Cash Application. The overall number of products per customer is 1.8, which is up from 1.7 last year. We see sustained demand for bundling of our products on our platform and opportunities to continue enhancing value for our customers who utilize more than one product. With that, I'll turn things over to Nick Babinsky, our GM of BPN, who will talk about BPN and the Billtrust Digital Lockbox. Thanks so much, Greg. Good morning. Great to be with you all. I'm Nick Babinsky, the GM of our Business Payments Network, or BPN, as we call it here at Billtrust. Really excited today to talk to you about the supplier side capabilities of BPN. I've been here for the last 10 years looking at how Billtrust is evolving the accounts payable space. I actually came by way of acquisition in late 2011, one of our first transactions that Billtrust did. I've had kinda firsthand experience over these years kinda seeing the B2B landscape of commercial payments evolve in so many different ways. The evolution has really led us to be, as Flint was mentioning, so excited about what we have here with not only our network, but the capabilities inside of it, inclusive of Digital Lockbox. The story today really begins with the paper check. We as fintechs spend a lot of time vilifying paper check, right? Rightfully so. There's, you know, a lot of downsides to it in terms of the inefficiencies, the delay in cash flow, the challenges of fraud. For all of its downfalls, the paper check really has remained quite ubiquitous. If you think about business bill payers, it can't get much easier than just finding out your supplier's mailing address and then cutting a check, typically through your banking system, your payable system, or accounting software. For senders, it's relatively easy. For receivers, over the years, banks have done a phenomenal job in rolling out physical or paper check lock boxes that take on the role of insulating AR departments from having to open up paper checks manually. Right? Most paper checks today, if you look at where you're sending your bill as a consumer, same place you're sending your bills as a business, right? It's going to those PO boxes managed by typically banks that are lock boxes, opening up, scanning checks, extracting the data, consolidating it for the purposes of reconciliation and posting. Paper check's ubiquitous, right? That's why we see that 42% of all B2B transactions in the United States at least remain on paper check. That inertia remains largely because electronic payments haven't found that same level of ubiquity. In reality, they're quite painful. Let's take a look at what these electronic payments look like. Here you're gonna see examples of what AR departments really around the world deal with every single day. These are literal payment instructions and remittance devices that businesses send to other businesses. You'll see here there are emails. There are web portals you have to log in to pull down virtual card numbers, settlement information, remittance details. There's PDFs, there's files. There are so many flavors and formats of electronic payments out there that for AR departments and the recipients of these electronic payments, it is absolute chaos. When you compare this to the paper check experience, of, you know, using a paper or a physical lock box to do kinda the dirty work for you, it's no wonder why paper checks have had such staying power in B2B, and that recipients largely who are spending, on average five to six minutes per electronic payment opening, keying, and processing the payment, going to their accounting system or ERP to look up the open invoice and retire it. It's really no wonder that the electronic payments have become such a pain point, especially as the growth in B2B has really gone digital in recent years. What's interesting is this is not just a small problem. We're gonna look at some customer examples of a small, medium, and large Billtrust user of our solution. Right? On the left-hand side, you've got a business that receives $45 million of their receivables through electronic payments each year. In the middle, you see one that's almost $1 billion in their revenue coming in via these electronic payments. In the right-hand side, a really large, technology distributor receiving almost $3 billion of their receivables in these electronic payments. As you can see, it's across tens of thousands, hundreds of thousands, and sometimes millions of electronic payments every year that are coming in this form. You can imagine that for CFOs that are thinking about staffing plans and the overall working capital position they're in, they need to figure out how to deal with these electronic payments. Oftentimes it is a struggle because they're looking at, you know, do we have to add headcount to deal with the growth of electronic payments? In today's labor market, in today's economic environment, you know, answering this growth or responding to this growth in electronic payments with people is often quite painful, right? For years we've been wondering, kinda as practitioners and participants in the industry, is there going to be some kinda standard or other, you know, innovation that allows for this paper and then electronic problem to really go away? The reality is standards have existed for a long time. EDI, as an example, electronic data interchange, as a way in which buyers or bill payers and suppliers or payment recipients can align on certain formats, as well as some other examples here, have been around. Because there are millions and millions of businesses transacting with each other, all using different accounting systems, ERPs, banking systems, payable systems, right? There's so much inertia and so much embedded operation around existing ways of doing business around paper check and what we just saw in the prior slide, that we don't actually believe it is going to be one single standard to rule them all and to address this challenge for the B2B space. What's even more interesting is the problem's become more amplified in recent years due to accounts payable technology that has come on into the market. As I'm sure many of you on this call are very aware of and likely participating in, there has been tremendous growth, energy, and investment around accounts payable automation. There are over 100 participants now in the space between banks and financial technology companies and others that are working hard to transform the payables experience and digitize payments out to suppliers on behalf of business bill payers. Each of these entities is out there, creating their own flavor and format of electronic payments for suppliers to deal with. That has created this tremendous momentum in the AR space around our solutions as we look to insulate these suppliers from all the growing forms of payment they are now receiving through these various participants in the market. That's really where the idea for the Digital Lockbox as part of the BPN was born from, right? We looked at what was happening in the physical lockbox space and the check space, and the fact that suppliers and businesses were telling us that, you know, paper check, in many cases to receive isn't all that painful. It's these electronic payments that we're now seeing 10s or 100s or even millions of every year are becoming quite the problem from a human capital perspective. That's where we were very excited about launching Digital Lockbox as a solution that, much like a physical lockbox, enables participants in BPN as suppliers to consolidate all of their electronic payment activity to the single pipe where BPN will take on the role of opening up emails, file attachments, web portals, receiving these payments via EDI, APIs, and other formats, so that at the end of the day, suppliers are experiencing touchless transactions. The fantastic part about it is not only is it a multi-channel solution in the sense of opening up different formats or dealing with different payment modalities across account to account, bank, virtual card, wire, but we also have this entire network effect behind BPN. Meaning it's not just Billtrust out there that's working to grow participation in BPN and distribute the Digital Lockbox. What I mean by the network effect is we've got participants on both sides of the transaction, as we call it, so on the pay side and the receive side. We are working with over 30 entities on the pay side, that are banks, fintechs, that are hard at work, as Flint mentioned, driving buyers and business bill payers towards electronic payments. They are doing the hard work of converting them off of check, and as those AP platforms, those bank platforms join BPN, they are given addresses, much like that PO address I mentioned in the check world, they're given Digital Lockbox addresses, so that these banks and fintechs know exactly how to route payments to the suppliers that are brought onto BPN. We've enjoyed a tremendous partnership with Visa, who's been critical in the success of growing the number of banks and fintechs on the buy side, on the pay side, to participate in BPN for the last number of years. Now, on the supplier side, again, it's not just Billtrust alone. You've seen announcements from us regarding folks like KeyBank, Commerce Bank, and Coupa and others that are hard at work helping distribute digital lockboxes to suppliers in AR departments they work with so that our business payments network can gain more participants willing to receive payments. That whole challenge of supplier discovery that issuers and payable providers deal with in terms of, "Oh my goodness, I just signed up a hospital. I now need to figure out how to pay their supply chain electronically." BPN makes it quite a bit easier for any supplier that's available to them in terms of here's exactly where to pay them electronically, here's the data needed, here's their acceptance policies. All of that is demystified and made automated through BPN for participants. Oftentimes we're asked about the commercials behind BPN, right? It's pretty simple. On the buy side and on the supply side, there are economics, right? There's a toll that is charged to participants, the AP platforms, the issuing platforms that we work with in BPN to enable them to convert check payments to digital payments they often find more efficient and in many cases we're gain revenue in the form of interchange or other rebates on. On the supplier side, any of the capabilities that the network makes available to our resellers and distribution partners that we call supplier sponsors, we are sharing the economics they earn from the suppliers or AR departments that they work with, that they are implementing the BPN on behalf of us for. Finally, we're gonna look at just the growth, right? We remain tremendously excited about the growth that we've experienced, largely in part due to the network effect we've seen because we have so many entities helping us on the buy and sell side of the Business Payments Network. You can see, you know, year-over-year and especially quarter-over-quarter when comparing 2021 to Q1 of 2022, the 86% year-over-year growth in Total Payment Volume, which is a critical metric that we measure to see what the level of participation looks like in BPN. ACH and wire, bank to bank transactions or account to account, has also aided in this growth. We, as Flint mentioned, intend to see, you know, growing levels of growth due to new capabilities that we'll be rolling out as part of BPN for both our participants and our distribution partners. Thanks for the time this morning. Really looking forward to the next part of the conversation with Jay and Steve talking about our go-to-market strategy here at Billtrust. Great. Nick, thank you so much. You know, it's funny, when we bought this small company in Boston about 10 years ago, they were focused on municipality billing, which we're no longer focused on. It wasn't the best acquisition ever, but it was our first one that we did, and we learned a lot from it. We also got Nick, and that alone was worth the price of that acquisition, and Nick has just crushed it for us over these last 10 years. Nick, you can go off camera. I'm not trying to make you red. Anyway, I'm excited to be joined here with two more of our rock stars, Steve Lindeman and Jay Johnson. Jay heads up our sales function, and Steve heads up our customer function. I'm gonna be peppering them with some questions. Why don't we just quickly start with some intros. Jay, you wanna go first? Yeah. Good morning. I'm Jay Johnson. I'm the Chief Sales Officer at Billtrust. I've been leading high growth software organizations for over 20 years. I joined Billtrust in April of 2020, and currently my responsibilities are to lead our direct sales and our channels organization to achieve our bookings, revenue, profitability, and customer satisfaction goals by helping our customers solve their critical business problems. Thanks, Jay. Appreciate it. Steve, to you. Yeah. Hello, everybody. I'm Steve Lindeman. I'm our Chief Customer Officer. I've been here for seven exciting years. I've been focused on customer success for at least the last 25 years of my career. I'm responsible here for managing a group of our customer implementation teams, our support teams, our e-solution team, our engineering. We have a dedicated team of engineers that focus on the customer, and then we have a dedicated customer success function that takes care of our customers. Now, my team and I spend our day focused on partnering with our customers to make sure they, you know, achieve the value and the benefits they expected from being partnered with Billtrust. Thanks, Steve. Let's start with Jay. Jay, I remember, you know, probably 15 years ago, you know, our sales team was a group of people that all did the same job. It was real simple. Go hunt new logos that want our solutions. Things have gotten a little more complex than that. Maybe we'll start with a sort of describe the sales team, how we focus on customers, how do we figure out who needs our solutions. I think the audience would find that helpful. Great, Flint. Well, we've done a great deal of work to analyze our total addressable market and also our ideal customer profile. We've done this by both vertical market and by solution. We took this information, and we utilized it to build out our direct sales and our channels organizational structure to support our goals. Currently, our direct sales team is broken into three organizations. We have a corporate team, an enterprise team, and a vertical team. All of these teams go to market around a named account territory structure. The corporate organization focuses on selling to organizations that are below $650 million in annual revenue in seven key vertical markets. They have several teams that focus on selling new logos, as you mentioned, and their job is to go out and prospect and sign up new customers to the Billtrust platform. There's also an existing customer team whose responsibilities are to ensure customer satisfaction and then eventually maybe provide additional services off the Billtrust integrated accounts receivable platform and also to sell into new divisions. You know, the corporate market has been really strong for Billtrust for some years, and we continue to expand in that market. Now, our enterprise organization manages all accounts over $650 million. This team is responsible for both prospects and customers in the enterprise space. We believe this hybrid structure is the best approach to securing, retaining, and growing the business in this complex environment. You see, these organizations tend to have longer buying cycles. They often tend to have international requirements, and they often include many divisions. The enterprise segment is one of the fastest-growing segments inside of Billtrust. The verticals organization is made up of four teams today. We have an equipment, vertical transportation, medical, and business services. All four of these teams are structured as business units. They own both corporate and enterprise accounts. Several of these verticals have been around for years and have been some of our most successful teams. When we looked for the decision to stand up additional verticals, there's two key drivers for building out the teams. One is the ability to partner and integrate with the ERPs in that vertical. The second is, do we have a deep understanding of the nuanced accounts receivable process in that vertical? We made the decision to stand up a business services vertical in 2022 because we believe we have the capabilities to uniquely solve critical business issues in that market. Now, as we continue to grow, we'll continue to take a look at whether we should add more dedicated vertical market teams. All three of these organizations are supported by our dedicated pre-sales solutions and payment specialists who bring expert knowledge to our customers during the buying process. In addition, I have responsibility for the channels organization, and our channels organization is responsible for identifying, signing up, and then managing both referral and reseller partners to extend our reach in the market. We've got consulting system partners, we've got systems integrators, we've got tangential technology partners, and we also have financial institution partners, and they help us serve our customer base and also introduce us to new prospects. We have big hopes and dreams for our channels organization, and we hope the channels organization drives tremendous growth over the next few years with accretive pipeline and revenue. Finally, Flint, we have a tremendous inside sales organization, which helps all of these other teams by qualifying opportunities and driving pipeline. Yeah, that inside sales team is fantastic. It's the hardest job at Billtrust. You know, this is the team that is calling in blind and making connections and queuing up our opportunities for the sales team, and it's a great starting sales job, and we've, I know, graduated many people from that team into full functioning, sales people. So, awesome job there. So that's a lot of different people. You know, I think, we get asked by investors a lot, "Can you hire enough salespeople?" Or, "Where do you find salespeople?" We know it's more than just salespeople, right? You need the right marketing air cover, you need the right, channel strategy, you need the right inside salespeople, and of course, you need salespeople as well. Maybe describe a little bit about what we look for in salespeople and how do we attract them? Yeah, we look for people that are smart, ask good questions, they're curious, and above all, they're great listeners. We put a great deal of time and focus on recruiting and hiring people that we believe can have a consultative approach with their customers and prospects. I believe we have fantastic new hire sales enablement programs at Billtrust. I joined a little bit over two years ago and I went through it, and it was outstanding. Every new sales hire goes through a very structured program and is also assigned a mentor to accelerate the internal learning of Billtrust. We train every account executive thoroughly on our solutions. We give them a named account list, and they start really going through and understanding the business of the accounts they're going to call on. We want our account executives to be able to provide value to their customers and help them solve business problems. Now, the great news is we're selling business application software to finance buyers, and the value prop is consistent across every vertical market. Because of this, we, it, you know, we believe it helps us rapidly build pipeline, and it's given us the ability to accelerate closing our business, you know, from four to six months and sometimes shorter. We'll continue to look for ways to refine our sales process. Let's talk a little bit about the competitive market. You know, we're not out there selling a loan. You know, in the early days, it was mostly evangelical, but we're now a well-established category. How are we winning against the competition? Well, we listen to our customers. It sounds cliché, but we listen to our customers. We've got a sales process that is consultative, and it's based around an industry best practice methodology that we have tailored to the Billtrust sales cycle. As I mentioned before, we have a focused named account strategy, and we expect our account executives to understand the business of the accounts they're calling into and help them solve problems that they have today. They also get in front of problems that might be coming down the road as a result of the account's growth strategy or their business objectives. Now, to be successful and continue to win, we need to demonstrate that our solutions enable our customers to do one or more of the following four things. We need to help them increase revenue. We need to help them decrease costs. We need to help them reduce risk. We need to help them improve their customer engagement. Now, we don't expect them to take our word for this. We work with them, we do a detailed ROI analysis. We uncover the success criteria, which is really important, what it's gonna cost them to achieve their goals, and then how the Billtrust solutions will add value to the business case. You know, this consultative sales process requires us to stay aligned throughout every step. By understanding the success criteria early in the process, we're able to hand that over to our implementation and customer value team to ensure the best possible customer success when they start to implement and go live. We've got a very well-defined sales process from our initial qualification to implementation, and we understand which Billtrust resources are needed at each stage of the sales process to ensure maximum success, and most importantly, give our customers the best buying experience. Awesome, Jay. Thank you. I've been at other software companies where, you know, the sales team sells whatever they can sell, and then they sort of throw it over the wall to the implementation team, and the implementation team scratches their head. They're like, "Okay, what did we sell? We don't have one of those." I know that doesn't happen here, Steve. Maybe describe a little bit about that handoff from sales and how we make sure that we're aligned with customers' interests. Yeah. Great, Glenn. The value we drive for customers, as Jay mentioned, starts early in the sales cycle. We're tightly linked with the sales team, and we focus first on understanding the customer's current processes, business challenge and what they need to accomplish, what success looks like for them. We then apply our best practices that we've developed over 20 years and close to 5,000 implementations and projects that we've done for customers, and those processes are based on getting the customer to value in the shortest time possible. That's key 'cause we understand how tough business is, and the customer needs to show results quick. We start with a number of suggestions in the sales cycle as we start to understand the customer that will drive them to that value quickly. Sort of think of it as upfront items they can do to get organized even before they've decided to pick us as a partner. As soon as it's signed, we assign a intake coordinator that works with the customer to finalize getting all the information organized, answers questions, helps explain items to them. We also give customers within hours of signing a contract access to all our training material so that they can get prepared and better understand what we'll be working with. That intake coordinator working with the customer then gets them ready for a kickoff meeting where we assign a project manager, a business analyst, and an architect, and some projects vary a slightly different mix, but that's the common. That team stays with the customer from that point through go live, through all the testing for two weeks after go live. The reason we keep them assigned to the customer for two additional weeks is we wanna make sure then just in case there's something missed, we're there, we have the right team to engage and get past it as quickly as possible. Because again, it's focused on delivering what the customer expected. Shortly before that go live, we introduce them to one of the teams that I talked about and Jay mentioned, the customer value team. That's a manager that's assigned to them for their life as a partner with Billtrust and the support manager. They train the customer on how to use our support system, make sure they have all the information they need to get the value out of the partnership with us, and this guarantees that they maximize the value they were expecting. Awesome. A lot is talked about these days around customer success. It's very different than customer satisfaction. Like, having a satisfied customer is interesting, but having somebody who screams from the mountaintops how awesome you are is really the desire. A lot of that is around aligning interests. You know, one of the decisions we made early on at Billtrust, as you know, is making sure that we can help our customers transition from paper billing to electronic billing. Every time we switch from paper bill, their costs go down. Every time a paper bill goes to electronic, our margins and our revenue go up. We've been doing customer success under a different name for almost 20 years, but we've now formalized that. Maybe share a little bit about how you think about customer success. Yeah. That's a great comment. You know, Billtrust is only successful if our customers are successful, happy, and able to identify the business value that they obtain by being partnered with Billtrust. We do this through a number of methods, but it's focused on a regular cadence of interaction with the customer. The customer value manager, who gets introduced during the implementation, builds an understanding and the knowledge of the customer's business. They make sure the customer understands all the new features and capabilities we're constantly adding to the solution that's included in what they've already bought from us. We also review the customer's business as it evolves, because as the e-business evolves, what was the perfect, you know, implementation and settings 20 years ago is not the same thing that's perfect today. We work with the customer in that way. You mentioned, you know, it's evolved. We still do traditional support, which sometimes is called break fix, and that's important, obviously when there's a problem. We also go beyond that. Our support organization is also monitoring for trends, which is important to, you know, identify. Just because, you know, customer calls, we fix. That there's something wrong if there's a spike in the number of calls, whether they've had turnover, they've tried to use a new feature and maybe haven't mastered it. The support team is constantly with this customer value manager monitoring the customer to look for trends before it becomes a problem, right? Then solve that by implementing the right Billtrust resources to solve the problem for the customer. One of those is our customer education area. We've worked hard over the last year and a half to evolve that even further. We provide an enormous amount of free training courses customers can take that we've built based upon the customer's input, saying, "Hey, I can't sit in a 2, 4, or 6-hour session every time I have a question, or I just don't have time." We built our training to be in 10, 15-minute increments, so they can go right to the question they have. We have advanced courses that we'll offer them if they wanna become experts, you know, go beyond individual capabilities. In addition, we leverage the Net Promoter Score tool. We survey our customers twice a year. When we get those results, they go to all of my executives on my team, as well as the appropriate people on your team. We look not only for problems, we look for where a customer is extremely happy and a big promoter because we wanna replicate the good and address and fix any possible problems so that we integrate that into the rest of our process. To make that happen, the customer success team briefs the executives here every four months, every three months, really, on any trends they've seen, so that we can identify and improve as an entire team. The entire Billtrust team constantly focuses on the customer and driving value for them. You know, one of our core values says, you know, what would the customer want? We start every meeting whether we're building an implementation, solving a problem, asking ourselves at the beginning and the end, what would the customer want? At the end, we ask, is this what the customer would want? Is it best for the customer? The entire team is focused on making sure we drive value. The customer value managers, as they meet regularly with the customer, even go back six months after implementation and take that ROI Jay talked about, and we, you know, sort of give ourselves a report card. We look at did we deliver the ROI with the customer? If we didn't, we immediately engage to make sure that we get them to that ROI. I'm happy to say that 99% of the time that I'm involved with it, we're hitting the ROI, but we're gonna be there and stand behind the commitments made, which goes back to your first comment. We all believe and buy into what we've committed to our customer, and we stand behind it. That's awesome. For investors, this manifests itself in one really important metric, Net Revenue Retention, which I think last year was around 120%. If Steve and his team are not keeping customers thrilled, they're not gonna wanna buy from us. They're not gonna wanna grow with us. If Jay's team is trying to sell into a customer who is dissatisfied, good luck. Like, they're not buying anything from us. The work that Jay's team does to get new logos that feed into Steve's organization, the work that Steve's team does to get those customers live and thrilled with our solution, then feeds back into Jay's team so that we can cross-sell additional solutions to them. That's a big part of the success here at Billtrust. Thank you both. That was super helpful. You know, I get asked a lot about can we hear some more stories about some of your customers? We thought it would be actually helpful to hear directly from one of our newer and larger customers, Sunbelt Rentals. With that, I'm gonna pass it to Steven Pinado and John Schoeben for a little chat. Hey, everybody. Thank you for participating in Billtrust Insight 2022. I am happy to welcome John Schoenberger from Sunbelt Rentals today, and we're gonna dig into their business and how they are using Billtrust to optimize efficiencies across the AR process spectrum. Thank you, John, for joining us today. I'm gonna say a little bit about Sunbelt and why they're such a company profile that works so well with our solution set. John's gonna educate us on the company some, and then we'll dig into the decision they've made and the outcomes they expect from working with Billtrust. You know, as a leader in the equipment business globally, but particularly in North America, Sunbelt has more than $7 billion in revenue, so there's an opportunity to drive meaningful scale efficiency outcomes in their business. They have a large and very diverse customer base, everything from single machine operators to some of the largest corporations in the world. The frequency of their interactions with their customers is great. They're constantly selling and servicing and interacting, so there's lots of invoicing activity. They're a leader in heavy equipment, which is a category where we find that companies really see the benefit of using our solution set. For those who may not be familiar with Sunbelt, John, can you tell us a little bit about the business? Thank you, Steve. Sure. You know, personally, I'm Senior Vice President of Finance at Sunbelt Rentals. Steve covered a lot of what our company offers to our customers and, you know, the geography which we cover. You know, I've been with the company going on 20 years now. We've grown tremendously from probably 100 locations when I started to more than 1,000 across the U.S. and into Canada now. The diversity of our product offering, our customer base has changed dramatically over the years. You know, we go from offering small contractor tools to aerial work platform, forklifts, earth-moving equipment, temporary structures, power generation, climate control, and, you know, the diversity of categories is immense. The size of the projects that we help our client service is immense, too. You're talking about stadiums, airports, retail centers, office space, and, you know, to the small home projects. Our customer base is just as diverse. You know, any project, any type of job you have, I'm sure we have the equipment that you need. Over those 20 years that I've been with the company, we've invested a lot in technology to make the rental transaction easier for our customer, technology to improve the efficiency of our operations. But you know, on the back-office side, that development doesn't necessarily keep the pace of what we've done on the front side, the customer-facing side of our business. That's where Billtrust comes in this particular case. Great. You know, you're a relatively new customer, been live for a little bit, and we began talking, I think, last year. Maybe, kind of bring to life the challenges you were initially thinking about, when you first started talking with us and kind of where we started and where we are in that process, and help us paint that picture. Sure, Steve. It's a little bit of an accident how we got hooked up. We were familiar with Billtrust, but you know, I was doing some typical financial analysis, and one of the areas that I was you know, concerned about or just curious about was the huge increase in our bank fees and the amount of fees that we were incurring for accepting credit card payments from customers. Digging into that, what I realized was how painful and manually intensive the whole exercise was with respect to receiving these payments from our customers and the methods that we had to apply it. They were coming in one email at a time with a remittance advice, where our people would have to take those emails and manually enter them into our computer system. One that resulted in higher interchange fees, but again, it was just tremendously inefficient. Again, that's where being familiar with Billtrust, we reached out and asked Billtrust what they had to offer that could help us out with this situation. Got it. Sort of how'd you get there? You know, it sounds like between the growth in the business, between the proliferation of these accounts payable portals and your changing customer base, you know, you just got more and more of these types of payments, you know, and then all of a sudden, here was this issue, you know. Did it happen over time? Just, you know, how did that evolve? It certainly happened over time. I mean, yeah, virtually every customer, we were the same. You get the opportunity to use virtual cards for form of payment. It makes it certainly easier for the customer side to make those payments. There's a benefit of floating the money in your bank accounts and everything else. There's a lot of benefits to using those virtual cards. You know, over time, the number of customers converting to that method of payment increased tremendously at a pace greater than our growth in our revenue, which was pretty robust in and of itself. It just stuck out as an unusual expense in our P&L. Again, it was. Once I saw how manually intensive the whole effort was, there just had to be a better way to do it. Yeah. You know, you touched on the customer portal, you know, from those same conversations on accepting the credit cards. You know, we're also looking at the customer portal side of it, which has grown exponentially as well. Customers more and more demand and require that we effectively process their invoices, their payables for them, and if we want paid, we have to enter our invoices to them into their systems in a format that they require to get paid. That, too, is just an incredibly manual exercise. We've tried to automate it, but we just can't keep up with the pace of it. Yeah. I hear this a lot from you know, our customers in the market. It's sort of the automation around accounts payable, great for accounts payable, as you noted, right? There's benefits, there's efficiency, not so great for accounts receivable because of the inefficient mechanisms like emailed virtual cards, like constraints and proliferation of many, many portals. When there's a customer base as big as yours, it's a growing problem that, you know, it really isn't going away. It's also a problem that sort of screams for automation, and it enables a company like us with so many customers to really exert some power over those portals and get direct integrations and drive efficiency. So that's what we seek to do. How do you quantify the benefit? You know, when you think about your ROI, your returns here, what are the impacts organizationally, you know, team-wise and financially on your business? Well, what we're seeing, as you said, we're relatively new to it, but we have implemented the cash application side of it at this point, which I would say that the project management was fantastic. I did not have a whole lot of IT resources available to implement the project, so Billtrust handled pretty much all of the technology side, which was fantastic. The transition went extremely well. Normally, an implementation of a new system of any kind doesn't usually go well, and people don't like a lot of change. The two benefits out of it already that we see is, one, I mentioned the interchange fees. The way we had to process these payments was resulting in a higher interchange rate. By going through Billtrust BPN platform, we are getting a better interchange rate than we were incurring. Secondly, what we've seen already is now that these emails with these payments are being directed to Billtrust consolidates those payments, sends it back to us in a single file that we import into our system that automatically clears all of the invoices, assuming there's no differences or exceptions. That has cut a tremendous amount of time out of our processor's time, and they love it. The managers are already saying their people are looking for other things that they can do and areas that we could use their assistance that we need. We saved a tremendous amount of time. With respect to the ROI, I would say initially, the dollar savings will be modest. They are there, but what we've got the benefit of here as we go forward is just the scale. This activity, we're gonna see more and more customers converting to the virtual card payment platform. We're gonna see more and more customers move to the portal platform. We can scale up so much better. I don't have to grow my workforce by 20% when my revenue grows 20%. You know, Billtrust will be able to do a lot of that heavy lifting, and we'll be able to provide better customer service for doing other things for our customers besides just processing invoices. Got it. Hey, just to give the audience, excuse me, a sense of scale, how many people did you have, you know, operating in this world between the payments coming in and the invoice insertion going out? What was the team like that was that you had to push against this? I probably, you know, can physically put to probably about 20 people or so keying the credit card payments. I wanna say I probably had a team of 20 to 24 people that are specifically dedicated to entering invoices into the customer portals, but I know that's spread all over the country, where people are doing it one-off for customers, and that's part of the concern too, is we just don't have really the control and the visibility that we should have with all of this being done on an ad hoc basis in some cases. This will help centralize it as well. Yeah, that's another thing I find in these discussions that once people start pulling the string on how many folks and how many resources are involved in these payments, whether it's they're coming in on the phone or coming in via email or, you know, in your case, you know, probably at some of the locations in the field, you know, once you start pulling the string, you realize the scope and scale of the problem. Maybe I'll just try and summarize, John. Tell me if this makes sense to you. You know, your participation in the Business Payments Network, and you're a great participant 'cause you're using both sides of the network, has enabled you to, you know, meet your customer where they wanna pay, so customer experience for your customers through their portals, through what they're doing, through their systems. It's enabled you to drive down credit card processing costs largely because of the way that they're now entered, the way that they qualify, and also, I'm guessing we've used some of our scale to help with the rate a bit as well. On top of that, you know, working hard to use the insertion of invoices and do that in an automated way straight out of your ERP, rather than have people keying into each one of them individually. I mean, you're a terrific user of the Business Payments Network. Did I characterize it correctly? Oh, that's exactly right. Yes. Great. Well, John, thanks so much for mostly, first of all, for your business and for engaging with us and the work your team has done with our team. It's been a terrific relationship. For joining us today and sharing your story and your insights with our audience, I'm sure they'll find it really valuable. Thanks a bunch, John. We really appreciate it. Thank you. You're welcome. That's great. Thank you, Steve. Thank you, John. John, you may not know this, but we have a Billtrust superstition. Anytime we see a Billtrust customer truck or a piece of the equipment, we give a little honk on the road. If any of your rental customers report excessive honking, it's probably some Billtrust employees just giving a little hello, thank you, and thanking you for the business. With that, I'm gonna pass it on to our CFO, Mark Shifke. Mark? Hey, thanks, Flint. Yeah, that was a great conversation, Steve and John. We appreciate it. Good afternoon, everyone. I'm Mark Shifke, Billtrust Chief Financial Officer. I joined the company in early 2020 after five years as CFO of Green Dot. Prior to that, I had enjoyable careers in both law and investment banking. We are very pleased with our financial performance over the last few years. We've grown our key software and payment segment revenue at a 24% CAGR from 2017 through 2021, and it grew 34% year-over-year in Q1 of this year on an adjusted basis. At the same time, we've been able to also expand our adjusted gross margin by more than 900 basis points. Part of this profitable growth is being driven by expanding total payment volume, which, as you know, measures the dollar volume of customer payment transactions hitting our platform. We saw a 35% CAGR in TPV growth over that same period, while our direct card revenue posted a 70% CAGR since 2018. As we look to the remainder of the year, we expect to continue to generate strong operating metrics and corresponding financial results across all our sales channels, supported by very favorable secular trends that have shown no signs of slowing down. We are reaffirming our 2022 guidance that we laid down on our earnings call back in May, and our mid and long-term guidance are also unchanged as our expectations related to quarterly cadence for our results. We've spent a lot of time speaking with investors over the last few weeks. Those investor conversations frequently come right back to the same handful of topics. Given that, we thought it might be useful to quickly run through the questions we've been hearing most and explain why we think we're well-positioned to navigate through any near-term concerns. The first topic is, of course, the macro environment. You know, that is not something we can control, nor are the markets or the multiples that investors are willing to apply to our stock at any point. We've been at this a long time, and our focus is and will continue to be on executing well and remaining focused and disciplined around our strategies and cost structure. What we can say is that in a macro environment where growth is challenged, where inflation is high, where rates are rising, where the importance of what we offer to businesses is more clear than ever, we are continuing to be very successful. Removing manual processes, reducing costs, finding efficiencies, and ensuring our supplier customers get paid, and paid accurately and faster, are issues that are on the minds of every CFO and finance leader, regardless of the macro backdrop, but are even more important in uncertain times. The next question that tends to come up is about SPACs. Now, we're aware that many investors have and continue to avoid investing in businesses that came public via SPAC. While we're not able to really offer broad commentary about SPAC performances or expectations, we can, as Flint did earlier, point out how Billtrust has done what we said we would, how we've exceeded our guidance since day one, and how our capital structure is now clean, with all warrants retired and all shares unlocked, and how there is no SPAC sponsorship represented on our board, and how we remain well-capitalized with more than $150 million in cash on our balance sheet, and how we're well-positioned to run the business going forward. To be clear, Billtrust is no longer a SPAC. That transaction worked for us. That's part of our history that is firmly in the rearview mirror, and we don't plan to discuss it any further. The third topic is profitability, and that requires a little bit more thoughtful discussion. This is by far the number one topic that's been brought up in our investor meetings, and we'd like to provide a little bit of context as we think about our path to profitability. On average, just to remind you, we generate 85% gross margins across our software and payment solutions. In addition, even with increasing spend in sales and marketing, we continue to see 6-to-1 LTV to CAC. These and other key performance metrics make it clear that our investments have been paying off already. Finally, as I noted previously, we have plenty of capital to support the business. At the same time, as we have said consistently over the past two years, when the market indicates that profitability is relatively more important than incremental growth opportunities, we will respond accordingly. We recognize that it's time to demonstrate more obviously the operating leverage embedded in our business. While on the last two earnings calls, we said we expected adjusted EBITDA to be adjusted EBITDA positive by the second half of 2023 or the first half of 2024, we'd like to update that expectation, and say that we now expect to be adjusted EBITDA positive sometime during the second or third quarter of next year, and to be adjusted EBITDA positive for full year 2024. With that update, we're happy to wrap up the formal portion of this presentation, and we'll now move ahead to our investor Q&A session. Thanks, Mark. So you've got myself, Mark, and Steven Pinado available for questions. A few have already come in. If you wanna type them into the little Q&A box on the bottom, you can do that, or you can just email them into ir@Billtrust. The first question is around surcharging. Can you provide some additional details, including opportunity sizing, amount we could charge? Is this a BPN thing, or is this a portal thing? Let me just clarify. Steve and John were talking about portals. There's sort of two portals in play here. We have our online billing sites that are called portals, and that's what our customers use for their SMBs, their small customers, to allow them to look at bills and pay bills online. Buyers also set up portals as a place for suppliers to enter their invoices. There's two different portals. I don't want people to be confused. There are supplier portals and buyer portals. We sell supplier portals. The surcharging capability that we've launched is in the supplier portal. It is not a BPN thing. Generally, surcharging is not a virtual card phenomenon. It's something that you do at your portal. To give you a sense on sizing and opportunity, you know, I said earlier that we think it'll be north of 50 basis points per transaction. You know, as I think you can tell, over the last year and a half, we like to be an organization that underpromises and over-deliver, so we're very comfortable with that. That was not factored into our guidance around direct card revenue. We'd previously shared with investors that we expected to get into sort of the teens in terms of take rate on card. That was before we launched surcharging. We think getting 50 basis points plus on a large volume of card payments will obviously drive the expectations higher there. We're not ready to give guidance until we have some more understanding about how we can get uptake on this. In terms of the addressable market, you can do some math on total payment volume and how much is card today, and then subtract out BPN card volume, and that is a rough approximation of what card volume we get at our online billing portals. As I mentioned earlier, roughly half of our online billing portals don't accept card, so that gives you an opportunity right there. If we just go after the online billing sites that don't accept card, that's gonna take some time. Everybody's not gonna do it, but you can easily come up with some estimations. As we get through the end of this year, you know, probably we'll think to give you some more guidance on this, but we think this is an enormous opportunity. We think this is $ tens of millions of revenue over, you know, the longer term. We gotta go get it, but this is a big opportunity. We've got results from surcharging already in our platform 'cause we offer it as a capability. Our customers have to worry about their own legal risk, and they manage the whole aspect of surcharging. Now that we're delivering this as a service and we are managing the legal risks, we have a better understanding of what our customers want and what we think we can drive. We're very excited about the opportunity here. The next question, let's go to Steve. Sales and marketing expenditures, when will we start seeing these results? We get that question a lot. I'm like, well, we are seeing the results. What would you say to that? That's exactly it. We've had accelerating growth for several years now. We are seeing the results of our spend, and we are continuing to be efficient on it, as evidenced by LTV to CAC. It continues to be rational for us to invest more, and we'll expect continued accelerated growth as we scale. Let's stay with you, Steve. Let's talk a little bit about Digital Lockbox in the bank channel. You know, we've announced a couple bank partners, and I know, you know, we've been busy in the bank area. How's that going? It's going well. You know, there's a real need to bring in all these digital methods of accepting payment, and there really isn't a product like it that exists. We continue to have good traction on the business development front. We continue to work closely with our bank partners to really crack how we get this in the hands of their customers in an efficient way. We're optimistic on that as a distribution mechanism as well. I would add, you know, with the success we've had bringing payers into our network, that's sort of, if you will, the supply side of the equation. We have lots of people who would like to get through Digital Lockboxes to bank customers within the channel. Yeah. I would encourage investors to also ask the banks, right? Most banks at this point are offering some kind of AP capability to their treasury clients. Why would they not also offer AR capability? You know, it was an ordering thing. It's not an if, it was more of a when. You know, we've been doing this for 20 years and have demonstrated to the market that people want AR solutions. Banks don't wanna sit this out. But don't take our word for it, ask the banks. You know, so I've guided in the past that don't be surprised if you see big bank announcements out of Billtrust. We've made many big announcements about partnerships with American Express and Coupa. There's certainly lots of demand from the banks for the Billtrust solutions 'cause they wanna be relevant when it comes to accounts receivable. Let's go to Mark. Can you discuss maybe some more specific steps around the acceleration of profitability? Sure. I'm shocked to get that question. You know, we've been saying for quite some time we could be profitable, as we were in 2020, if and when we need to be, and it's always on the path, as we've been saying. The question is it time to accelerate it? We believe the answer at this point is yes. The things we can do around that are really across all of our three, you know, expense segments. G&A has stepped up in part to become a public company, in part to create the right infrastructure to be an international company. Once you incur those costs, you don't keep stepping them up. I think just by its nature, G&A is flattening out. When we look at R&D and sales and marketing, you know, as Steve just talked through, we're getting great results from that. You know, given the results we're having, it's hard to scale that back because the growth opportunities are so great. When the decision is do we need to have that incremental growth or can we be a little bit more refined in getting the growth that's appropriate for the business and managing the cost structure a little bit better in both sales and marketing and R&D, then the answer is yes. We have flexibility around managing those costs. Great. Thanks. Let's go to Steve. Maybe I'll answer this question after you 'cause I've got some thoughts on it. What is the largest cross-sell opportunity for existing customers? The largest. I'm going to venture a thought a bit here and say it is payments penetration. I think it is probably the most ubiquitous. Here's why it's hard to answer, because we enter into our customers in many different ways, right? Generally, we're in an environment with an executive team who is committed to digital transformation, and that's at the high level. Urgency is created when there's a specific pain point. It could be a collections challenge, it could be invoicing demand, it could be inefficiency around payment capture and invoice distribution, as we heard about from John earlier. You know, we enter in many different points, and we have vast customer TAM beyond. Payments are likely the largest, but there are many opportunities, and it depends how we enter with a new customer. Yeah, it's interesting. I have not thought of that as the answer, only because it said cross-sell, and that felt like an additional sales motion. You know, I have said in the past that, you know, we could send all of our sales and marketing people home, and we would still grow as a business 'cause we continue to get digital adoption, converting paper to electronic, which drives additional payment revenue. That is an enormous growth vector for us, full stop. In terms of cross-sell, I don't know. I might have gone with collections simply because we've got. I think we probably stated we have over 2,500 customers, and the vast majority It's our lowest penetration rate, right? From a solutions perspective. Our lowest, yeah. Yeah. The vast majority don't have an automated solution, so it's a you know a bit of a greenfield opportunity for us there. But then I think of Digital Lockbox and, you know, we're in the early innings with Digital Lockbox, so we have a wealth of choices there. It's a hard one to answer. There's no lack of opportunity for us to cross-sell. Mark, you're shaking your head. Would you have answered that one differently? For cryptocurrency. Cryptocurrency. Yeah. Yeah, we need some blockchain, you know, Web3, DeFi, crypto. Got it. The only way to frame it is units of sales versus direct revenue too, which is another dynamic we didn't really get into but would have an influence. Yeah. Another question was, what is our outlook for growth of direct card revenue over the next few years? Mark, do you wanna take a stab at that? Not willing to provide guidance on what our long-term growth expectations are of a particular product. I think we've provided intermediate and long-term guidance about overall software and payments as well as net revenue, but don't wanna take it a degree lower. Fair. Steve, let's talk about demand. You know, we've talked a little bit about sales success in Q4, sales success in Q1. We're seeing some macro external issues, inflation, higher interest rates, things like that. How is that affecting demand for our solutions? Yeah. It's really not manifesting itself at the top of funnel or in our sales process yet. We're on the lookout, right? We're looking for it everywhere. You know, the pipeline is full and the team is engaged and working hard. We have not seen real concrete signals yet of the macro environment impacting our funnel or our pipeline or propagation of same. Great. Next question is around net dollar retention and 120% is excellent. I might not understand this question completely, so I apologize. Given the overall growth rates, that metric seems to imply growth of only single digits from new customers, which seems low given the commentary you provided about adding new customers. NDR in 2020 was 110. It was 120 last year. That doesn't include any new customers. NDR only is the class of customers that have been with us from the previous year. Signing new customers will not impact our net dollar retention. It will the following year. As we sign existing customers, we need to continue to mine them. We're pleased with the direction of driving additional growth. There's another question around net dollar retention, and I don't think we've shared a number there, but it's high 90s%, is what we've shared in the past. I'm not sure, Mark, if we share that number annually or if at all. Yeah, I don't think we've been sharing that number, but I think we did when we were going public in 2020 and haven't really discussed it since. Yeah. We let the NDR speak for itself. Yeah. Other commentary that we've said is, like, you'll talk to other SaaS companies about their renewals team and how often they get renewals. We don't have a renewals team at Billtrust. Every one of our contracts is evergreen. It automatically renews. They're generally three-year contracts with one or two-year renewals after that, and they just automatically renew. There is not a process for us to renew. Our customers, when they're buying an online billing experience or cash application solution, they're not buying them as an experiment. They're buying them because it's gonna have a major impact on their business. As Steve Lindeman talked about, we're focused on driving success for our customers, and when we have success, they're not thinking about how do I unplug this, they're thinking about how do I get more success with some of the other Billtrust solutions. Steve, let's go to you on this one. This is a fun one. What inning are we in the growth rate of take rate or revenue per transaction as it relates to card payments? We're talking about baseball innings for our international audience. What inning are we in? Was it cards specifically, or digital payments? Let's talk about take rate. Take rate I think was 6.3 BPS in our last quarter, roughly, Mark, right? Yeah. Doesn't it really depend on, you know, how we see progress in surcharging? That's just started and it's unclear what impact that's gonna have over time. That may impact what inning you're in. It's early innings for sure, right? We know it is, but you're right, Mark. There's a surcharging dynamic. There's a check to electronic dynamic. There's ACH versus card dynamic. There's a penetration of our payback relative to third-party providers. There's BPN growth and bundling functionality that where we are the merchant of record with other solutions in an integrated way. There are a whole lot of things on our side as we come up to bat, if I can continue the bat analogy, but it is certainly multidimensional and it is certainly early innings. Yeah. The correct answer is it's the top of the second with one out. For those looking for specificity on that. You know, we've got lots of things up our sleeves. We knew about the surcharging opportunity a year ago. We were not building that into our guidance 'cause we don't wanna build things into our guidance that we haven't launched yet. We're now launched with this. We're signing customers, and it will have an impact over time. We will, you know, reflect our guidance of, you know, at the appropriate time, but, you know, as I said earlier, we wanna be the organization that underpromises and over-delivers. Steve, another one for you. What are the biggest competitive threats to the business in your mind? You know, our competitive dynamics really continue to be what they've been. They're around inertia, which is changing and becoming less of a threat. I think the world has awakened to the value of our solutions. We're able to drive urgency more quickly. They are entrenched point solutions and then, you know, fighting to move them to a more platform approach, which is in our favor and is a decreasing threat. We've got actual competitors who look like us, not surprisingly. I think they emulate us in many ways, who are real competitors, and they do their jobs well, and they've got good technology, and they market and sell well. It is the normal competitive threats that we've seen over time. We do not see today a lot of competitive threat from larger, more well-capitalized people, not approaching the market in the way that we do with the same kind of value propositions. Yeah, I got this question yesterday. We do new employee onboarding, and we had, I don't know, 20-25 new employees, and somebody asked me this question, and I think it's our biggest competitive threat is talent. Can we get the right people at the right time for the size of organization that we need? You know, we've got great solutions. We've got great vision. It's all about execution. You can't execute without great people, and I think sort of the thoughts that Jeanne laid out on how we attract great talent, how do we retain it, great talent, how do we remain a great place to work, that's gonna make the difference, right? It's tough to put a number on culture. It's tough to put a number on values, but anybody who's been in business recognizes that it's the importance of that. Like, we don't hang on to a Nick Babinsky for 10 years unless he loves working at Billtrust and feels like he can make a meaningful contribution. I use Nick as an example. There's 150 other people who've been here for a really long time that are having a massive impact on Billtrust. If we can continue to drive that talent engine, we will have success in the future. We're out of time now for questions. We appreciate everybody joining today. If you have follow-up questions, feel free to reach out to John S. Williams at ir@Billtrust, and we look forward to seeing you on our next earnings call. Thank you, everybody. Thank you. Thank you, everyone. Yeah.