Ladies and gentlemen, thank you for your patience. Welcome to the GTY Technology Holdings, Inc. fourth quarter earnings conference. My name is Louisa, and I'll be operating your call today. If you wish to ask a question, you'll have the opportunity to do so at the end of the presentation. Please press star followed by one on your telephone keypad. If you wish to remove your question, please press star followed by two. I have the pleasure of handing over to your host today, John Curran, to begin. John, please go ahead. Thank you. Good afternoon, everyone. I'm John Curran, GTY's CFO, and I'd like to welcome you to our fourth quarter and full year 2021 earnings conference call. With me on today's call is TJ Parass, GTY's CEO. We will be presenting slides on today's call and encourage you to view the presentation found on our website at www.gtytechnology.com. Please note that our earnings release is also available on the GTY website and contains additional information about our financial results. Any forward-looking statements we made in the earnings release or any that we may make during this call are based upon information that we believe to be true as of today. Things often change, however, and actual results may differ materially from those projected or anticipated. Please refer to our cautionary statements in the earnings release under the heading Forward-Looking Statements. You should also refer to our SEC filings, including our most recent Form 10-K and our subsequent SEC filings for a list of risk factors applicable to GTY, including risks associated with COVID-19. As you will hear in our comments, the pandemic is impacting our business today and for an undetermined time into the future. During the call, we may refer to non-GAAP financial measures if we believe they are useful to investors or if we believe it will help investors better understand our results or business trends. You can see a reconciliation of our non-GAAP financial measures to their nearest comparable GAAP financial measure in Exhibit two of the earnings release and in the appendix of this slide deck. With that, I'll turn the call over to TJ. Thank you, John. Good afternoon, and thank you all for joining us. For those that are new to GTY provides cloud-based platforms that help government organizations transform the way they engage citizens and manage their operations. Similar to the private sector, governments have been moving away from heavy, monolithic on-prem solutions to modern cloud and SaaS applications based on the lower initial purchase price and the fact they don't require large implementation timelines. This trend has been a decade in the making, but it's really started to accelerate in recent years. We are still in the early innings of government's migration to the cloud. Included in our primary target sectors are municipalities and counties, colleges and universities, K-12 school districts, public healthcare agencies, public utilities like water and power, transportation and transit, state governments, and federal agencies. As of today, we have over 1,900 customers and approximately 400 amazing staff across the business units, with both numbers increasing weekly as we've been leaning into growth. To add some color to the size of our opportunity, in 2021, state and local government in the U.S. was expected to spend just under $120 billion in IT. Total IT spending grew at a healthy 7% for state and local government, and within that, cloud spending grew at a more than twice that rate as more organizations continue to shift workloads to the cloud. As our customers are starting to modernize their infrastructure, GTY is well-positioned to capture the opportunity the transition to the cloud represents. Let me unpack that a bit for you. Our best-of-breed product suites provide budgeting, grants management, permitting, procurement, and payment solutions. Combined, these product suites give GTY a strong starting position to capture the enormous opportunity ahead. Our go-to-market brands are on the right. All of our solutions have three broad characteristics that position us for success. First, they are cloud and largely SaaS. This means highly recurring revenue streams with a remarkably low churn, often multi-year contracts, strong gross margins, and predictable cash flows. Second, each of our product suites were created specifically for government's unique requirements and are considered leaders in their respective functional areas. This leads to high win rates against older gov tech competitors, as well as against horizontal players that often struggle to meet the compliance or government-specific feature requirements. Finally, combined, our product suites allow us to access the full spectrum of sizes and segments of our customers from 10,000 to 1 million in higher price points, and across our 8 subsectors, from small municipalities all the way up to large state governments and federal agencies. With that context for the newcomers to GTY, let's turn to our results. I am thrilled to report that GTY's fourth quarter performance was a strong finish to what was a strong year for the company. We are seeing all levels of the government embrace the business, operational, and financial benefits from moving to the cloud. This trend drove great demand of our best-of-breed cloud product suites. In fiscal 2021, we believe the continued trend of governments moving to the cloud puts us in a great position to generate strong growth for the foreseeable future. Let me start with a quick overview of our financial results for both the full year and fourth quarter. For the full year, we reported total revenue of $60.4 million, up 26% year-over-year, and this was underpinned by recurring revenue of $46.5 million, up 28% year-over-year, and an annual recurring revenue base of $51 million, up 23% year-over-year. For the fourth quarter, we reported total revenue of $16.6 million, up 27% year-over-year, and recurring revenue of $13 million, up 24% year-over-year. The core strength of our business is our ARR, which remained robust over the quarter yet again. Though our ARR growth rate of 23% in Q4 was slightly below our recent quarterly trend, it remains very strong. More importantly, we have been able to deliver consistently solid mid-20s ARR growth for 9 consecutive quarters and expect our ARR growth to accelerate in 2022. Turning to bookings, Q4 was in line with Q3, but did not grow as expected since a few deals slipped into January. I'm pleased to report that one of those larger deals was already closed in January, which provides a solid base as we start 2022. As we have stated in the past, the exact timing of deals is somewhat hard to predict, but we are seeing a strong pipeline of opportunities and a solid momentum in the market. In total, we added 69 new clients in the quarter for a total of 295 new clients in 2021. Our new clients include wins across all 8 of our target sectors as well as many customer expansions. Additionally, the average ARR per customer is consistently growing, up 4% quarter-over-quarter and 15% from the same time last year. I want to take a moment to highlight some of the more impactful new clients from the quarter. Our CityBase business unit continues to see transaction volumes increase as the impact of the pandemic continues to subside, and our customers continue to adapt to more virtual or touchless activities. Most recently, we announced the deployment of our self-service kiosks in two of New York City's five boroughs to improve the self-service payments options within the city's business centers. Our cloud-based budgeting tools, Questica and Sherpa, have been selected by a wide range of organizations, including Orange County, Florida, Merced County, California, and Colorado Springs Utilities. Additionally, we had almost $1 million upsell activity in the quarter, which highlights the expansion opportunities we have with our existing clients. Our permitting platform, OpenCounter, continues to add functionality and features in our internal configuration tooling that improves the speed, consistency, and reliability of our deployments. A few notable wins in the quarter were Colorado Springs and Polk County, Florida. As we head into 2022, we see a number of opportunities that are expected to use our platforms for their purchase. Our grant management platform, eCivis, continues to move upmarket from small nonprofits to larger state and local governments. During the quarter, we had solid customer wins with City of Philadelphia, City of Grand Junction in Colorado, Solano County, California, City of Denton, Texas, and an upsell with Sonoma County, California. Finally, our procurement platform, Bonfire, successfully won an RFQ with IndyGo, otherwise known as Indianapolis Public Transportation Corporation. We are extremely pleased that four of GTY's business units have relationships with different entities within the city of Indianapolis. This latest win was not a cross-sell opportunity. However, having said that, our reputation precedes us as we respond to these RFQs, and that is a result of a solid customer experience and reputation from our other business units. During the quarter, we had a material expansion with the Ontario Colleges Procurement Management Association that expanded Bonfire's use under an umbrella agreement to nine additional colleges, bringing all colleges in Ontario under one agreement. Other significant customers in the quarter include the City of Tallahassee, Florida, the Government of Barbados, The University of Texas at Austin, and the Utah Department of Transportation. Before I discuss our outlook for 2022, I wanted to highlight the three primary drivers that are accelerating the digital transformation within governments. While the common perception is that government lags behind private sector, which is true, they are catching up and starting to accelerate their digital transformation. First and foremost, as we exit the pandemic, all levels of government have budget surpluses from improved tax revenues, along with additional financial support from the CARES Act and ARPA funding. Most importantly, there will be deadlines on this spending that we expect to cause a spike in technology procurements in 2022. We have all heard about the current labor challenges facing organizations today and the difficulty in attracting and retaining competitive workforce. Historically, public sector entities have had a more mature employee base, and they have experienced a sharp increase in employees retiring over the last year or two. While in the short term, staffing shortages may create some challenges, over the medium or to long term, it will accelerate the adoption of cloud technology as leaders look to improve productivity and younger tech-friendly employees demand modern tools. As information technology becomes a backbone for citizen engagement, chief information officers are being elevated into more strategic roles, which is accelerating their modernization efforts and represents a massive opportunity for native cloud-based platforms. We saw a similar trend over a decade ago in the private sector when businesses realized that their information technology infrastructure was vital to not only increasing operational efficiency, but increasing sales and enhancing customer service. This emergence in the public sector will impact the go-to-market strategy and lead to larger average contract values. Turning to our outlook. As we look towards 2022, we are excited about the opportunities in front of us, which will lead to an acceleration in our ARR growth. Our main focus is expanding our sales capacity and enhancing our go-to-market motion that will allow us to execute on our expanding pipeline. During the second half of 2021, we added a net of 23 sales and marketing staff and expect to hire more in the first half of 2022. It will take some time for these new team members to ramp up to full capacity, but we are expecting them to contribute later in 2022 and to be fully ramped up heading into 2023. One of our recent hires was at the corporate level, a new Chief Growth Officer, James Ha, who's dedicated to expanding and enhancing our go-to-market. James' immediate focus is to continue the expansion of our sales and marketing teams as he coordinates the best practices between all of our business units. In addition to this work, James will be spending a considerable amount of time on partnerships and our cross-selling plans. We also welcome Katerina Goros, our new head of HR. Katerina is highly focused on attracting the right talent to GTY and helping us to continue to add to our strong group of staff. Our business unit leaders are noticing a sharp uptick in procurement activity. For example, in the first nine months of the year, one business unit tracked six state enterprise RFPs, but in Q4, there were nine RFPs, with many more expected in the first half of the year. Another business unit's pipeline is tracking about 40% larger than in recent years, mostly due to accelerated interest in GTY solutions and expansion of our sales teams. As noted earlier, we are seeing budget surpluses at all levels of the public sector, and ARPA funding is providing additional financial support. We expect these factors will cause a spike in technology procurements in 2022. Public sector entities have reallocated, and we anticipate will continue reallocating budget dollars earmarked for something else that can be paid for with ARPA funding, freeing up budget dollars for technology infrastructure spending. We're already seeing this in a number of small closed deals and a large number of deals in the pipeline. We are addressing a number of the hiring challenges we experienced in the latter part of 2021 and are now starting to feel the results. Our investments in recruiting and new leadership have led to solid improvements of retention and recruiting. Turning to our customers' experience, staffing shortages continue to be a challenge, but as a short-term measure, we are helping them with that challenge and also speeding up implementations by providing consulting services as needed to our customers. On the positive side, this generational shift in public sector employees will give rise to a new level of tech-fluent leaders that will remove additional obstacles to adopting a digital government strategy. As noted, we believe we are in the very early stages of a dramatic shift in how the public sector provides services to its citizens. In conclusion, we are excited to have multiple tailwinds supporting our business and look forward to executing on our growth initiatives in 2022. Thank you. Back to you, John. Thank you, TJ. As TJ mentioned, Q4 was another excellent quarter, highlighted by solid revenue growth and success in hiring new sales and marketing, as well as R&D talent to our team. For Q4, our GAAP revenue increased 27% to $16.6 million, compared with $13.1 million in Q4 of 2020. On a non-GAAP basis, revenue was $16.7 million for Q4 of 2021, compared with $13.2 million in Q4 of 2020, an increase of 26%. A reconciliation between our GAAP and non-GAAP results is included in Exhibit 2 of our press release and in the appendix of our slide deck. We'll provide a more detailed explanation of the change in revenue on a subsequent slide. Our fourth quarter 2021 GAAP gross profit was $10.1 million or a 61% margin, compared with $8.2 million in Q4 2020 or a 62% margin. Our fourth quarter non-GAAP gross profit increased to $10.6 million or a 63% margin, compared with $8.5 million or a 65% margin in Q4 2020. Our mix of revenue and some one-time costs negatively impacted our margins year-over-year. Turning to our operating expenses, our total GAAP expenses were $31.1 million and include a goodwill impairment charge of $15.8 million. Our fourth quarter non-GAAP operating expenses increased by $1 million or 9% compared with Q3 2021, primarily related to additional headcount in R&D, sales, and marketing. Our fourth quarter 2021 GAAP operating loss was $21 million, compared with a loss of $8.5 million in Q3 of 2021 and a loss of $11.1 million in Q4 of 2020. Our fourth quarter non-GAAP operating loss increased to $1.4 million, compared with $100,000 in Q3 of 2021, driven primarily by increases in operating expenses throughout the quarter. Consistent with previous quarters, we wanted to provide a little more color on the change in non-GAAP revenue. As you can see in this chart, our recurring revenue grew by 11% on a quarter-over-quarter basis and grew by 24% on a year-over-year basis. Adjusting for seasonality in our payments business, our quarter-over-quarter recurring revenue grew by 5%. Services and other decreased 20% on a quarter-over-quarter basis, but increased 34% from the year ago period. As you may recall, in Q3 2021, we recorded $1.2 million in one-time revenue, primarily associated with the DTE Energy kiosk installation, which provided a significant boost to our services and other revenue in the quarter. Adjusting for this one-time revenue, our services and other revenue increased 9% quarter-over-quarter. Our service revenue can vary from quarter to quarter due to the timing of large projects, and we expect professional services to decline as a percentage of revenue as our base of recurring revenue continues to grow. Other revenue includes sales of kiosks and software license sales that we also expect to decline as a percentage of revenue over time. Our current revenue growth should continue to be higher in percentage and dollar terms than service and other revenue as we continue to forecast growth in our base of subscription business. Turning now to our cash flow. We started the quarter with $15.3 million and ended with $13.3 million in cash. Our cash burn from operations was approximately $1.8 million this quarter, driven primarily by an increase in our operating expenses in the quarter and income taxes. The change in working capital was positive for the quarter, primarily due to the timing of invoicing and collection. We also paid $520,000 in interest. Based on our current forecast for 2022, we believe we have sufficient cash to support our growth initiatives as well as our ongoing operations through 2022 and beyond. We also recently updated our S-3 shelf registration and an ATM agreement to give us flexibility to accelerate operational investments and to make potential acquisitions if we see opportunities in the market. Turning now to our outlook for the first quarter and full year of 2022. For the first quarter of 2022, we expect total revenue to be in the range of $15 million-$15.5 million, or approximately 15% year-over-year growth at the midpoint. From an operating loss perspective, we expect a loss to be in the range of $3 million-$3.5 million for the quarter. For the full year 2022, we expect total revenue to be in the range of $71 million-$74 million, or approximately 19% year-over-year growth at the midpoint. From an operating loss perspective, we expect our operating loss to be in the range of $12 million-$15 million. 2022 will be an investment year, and we expect to onboard and ramp a number of sales, marketing and development resources throughout the year. This should result in improvements in our bookings as we go through the year, but we expect revenue improvements will be delayed into 2023. To help investors better understand the benefits of our investments, this year we've added a forecast for ARR, which is the leading indicator for revenue. We expect ARR will be in the range of $63 million-$66 million, or approximately 26% growth at the midpoint. Finally, from an operating cash flow perspective, we expect Q1 2022 and the full year 2022 to be negative. For the first quarter of 2022, we expect the burn to be slightly higher than the first quarter of 2021 as a result of increased hiring. For the full year 2022, we see operating cash flow to be similar to the full year 2021. With that, I would like to turn things back to TJ. In summary, we are very pleased with our fourth quarter, with GAAP revenues up 27% in the quarter and ARR growing 23% year-over-year. As we enter 2022, we are feeling good about our market opportunity and look forward to increasing our investments to meet the needs of our customers in 2022 and beyond. I'm continuously amazed by the quality of the products we bring to the public sector, our high NPS scores and loyal customers. Personally, I want to thank all the staff at GTY for their hard work and dedication in helping bring the public sector into the cloud. With that, I want to thank you all for your time today. Operator, would you please open the line for questions? Of course. If you would like to ask a question, please press star followed by one on your telephone keypad now. If you wish to remove your question or feel like your question has been answered, please press star followed by two. Our first question today comes from Jeff Van Rhee of Craig-Hallum Capital Group. Jeff, please go ahead with your question. Great, thanks. Thanks for taking my question. Several guys. First, I guess you touched on pipeline and I think you gave some snippets there. Can you roll that up holistically, you know, and give a broader sense of the magnitude of the overall pipeline? You know, preferably quantified. Give us a sense of how much that's grown, and then I got several follow-ups. Hey, Jeff, how are you doing? Go ahead, John. Sorry. Yeah, I'll give you the Go ahead. Sorry. Implementation standpoint, Jeff, we're not prepared to kinda share the dollar value, but rough order of magnitude increase over prior year would be certainly north of 20%. Okay. On the bookings front, again, I know you don't quantify it. You commented on the effect that you had one push out. Can you give a sense of how big that one was, that pushed out and already closed? Maybe more importantly, just bookings, if we can't have it quantitatively, at least qualitatively, was the total bookings in Q4 larger than Q3? First part of the question, the size of the deal was over $1 million, so just right around 1.1. That deal closed first half of January. Bookings were essentially flat, Q3 to Q4. Okay. That's helpful. You commented on the professional services. Obviously, the linearity or flow there can be highly unpredictable. Can you give us a sense of how you're thinking about services for Q1? It's an excellent question, Jeff. Thanks. We're anticipating services will be lighter in the first quarter by about half a million dollars. It's just simply timing of large implementations. We had a couple of really good implementations in the second half that helped our services revenue in Q3 and Q4. It's more of the middle market business will be the core of our services business in Q1. Okay. All right. Last from me, I just on the sales side, I know you commented in several cases you got a new head of HR, and you're very focused on sort of offsetting the great resignation with capacity additions. Where did you end up in terms of overall percentage, you know, either headcount or capacity additions in sales? If I missed it, forgive me, but I didn't hear that. Just some commentary about, you know, kinda current pipe and what you're seeing on sales recruiting. Sure. Yeah, thanks, Jeff. Good question. Yeah. Q2 last year, we announced we're gonna add about 20%. That's about 23 people. Sorry, about 20 people. We actually added about 23 people in the end, at the end of Q4. Overall added, I think a net 33 people for the year. Made some good progress, and we certainly ended up where we wanted. This year, we're looking to add another, I think 40%, another 40 or 50 people. We think that's right in line with what we were able to do the last two quarters. Wow. Okay. All right. Good. Thanks. Thanks for taking the questions. Thanks, Jeff. Thank you for your question, Jeff. Our next telephone question comes from Joshua Reilly of Needham & Company. Joshua, please begin. Hi there. Thanks for taking my question. Maybe starting out on getting some more color on the improvement in demand over the course of 2021. How would you characterize the improvement in the second half of the year? Was it a pretty material step up in terms of demand improvements? Has there been any impact to overall demand due to Omicron here in the first quarter? I know you mentioned a couple of deals slipped. Were those deal specific, or would you characterize those as macro related slips? In a way, I would answer, tackle the Omicron question first. You know, I would say the Omicron was around in our area, but nothing we would point our finger to as a deal delay. In this case, we have a large deal, the $1 million deal that closed in January, just missed by a few days, and it's just a matter of these large deals. You know, as we've talked in prior quarters, we continue to, as our ACVs are going up and we're seeing our deals get larger and larger, those larger deals, we're just learning better and better the cadence of how to figure out when they close. Some of the stuff over the edge. I wouldn't point at Omicron with that. We do think Omicron's a bit of a wrench in the works in terms of some collections and some small things, but we wouldn't hang our hats on any delays related to Omicron. In terms of Q1, we're not seeing anything specifically pointing to Omicron or any delays with that. I think your second question, Josh, was around the demand. Yeah. The second half of 2021, we start to see some more demand with ARPA starting to flow. Our pipelines start to look like they're increasing, which they have been. As we kind of roll into 2022, really no substantial increase in overall pipelines relative to the same time last year. Got it. That's helpful. I think you mentioned on the last quarter that you were expecting roughly $400K in kiosk revenue from that large customer here in the fourth quarter. Was that number in line with your expectations? I know that there was a little bit of a pull forward there, or what's the dynamic on that? Yeah. Josh, this is John. The majority of the large customer kiosks, pretty much all of them were delivered in the third quarter. Originally, we thought they were gonna be spread into Q3 and Q4, but that customer was fully delivered in the third quarter. We did see some additional one-time revenue from kiosk sales and some license deals in the quarter, as expected. Got it. One more for me. You know, you mentioned again in the presentation about the challenges around hiring salespeople. You know, you have a new leader now in HR. You know, maybe you could help us understand what is the profile of the sales hire that you're looking for? Do you need to make any adjustments to that, given the leadership change in HR and just the overall difficulty in hiring tech salespeople right now? That's a good question, Josh. I think overall we, you know, as we look back to 2021, we're pretty happy with the outcome that we had, the number of people we wanted to hire. I think our HR team and expansion of our recruiting team has worked. They're working really hard at it. With Katerina now on board, a lot of focus on looking at what the new dynamic is as we come out of the pandemic and what makes for a great workforce. The profile of our salespeople hasn't changed much at all. From our account executives, we're looking for experienced, you know, 3-7 years, not necessarily need to have any government experience, we can train that part. Our BDRs tend to be up-and-comers. They tend to be the ones that feed into our AEs, and we're pretty happy with the pipeline of what we've got recruiting happening right now. Got it. Thank you. I'll pass the line. Thanks, Josh. Thank you, Josh. Our next question comes from Rudy Kessinger of D.A. Davidson. Rudy, please go ahead. Hey, guys. Thanks for taking my questions. I wanna go back to gross margins. I think you know they were down a little over 3% sequentially. You said there were some one-time costs. Can you just elaborate on that? How should we think about gross margins for 2022? Yeah, Josh, hey, sorry, Rudy. This is John. We did see a bit of a dip in our gross margins the fourth quarter. We did have some one-time costs. An example would be porting one of our platforms over onto AWS. Those costs hit COGS. Had a bit of a mix of services outside of our budgeting group, and those professional service margins are lower than those we see in budgeting. Those would be the two primary factors this quarter. We anticipate it kind of getting back in line in the first quarter. Overall, margin expectations for next year will be a little lower than this year, probably by about two percentage points, primarily driven by onboarding more implementation resources. As we anticipate our sales teams coming up to speed, we're gonna need to add capacity for implementation. We do anticipate some interim hit to gross margins as we ramp those guys up next year, then following year get back into the upper sixties as it snaps back. Got it. On the sales, going back to what you just said to Jeff's question, looking to add another 40-50 heads next year, I mean, you combine that with the 23 you just added, that's gotta be north of 50% sales capacity you'll be adding. Certainly, you know, they're not gonna fully impact in 2022, but you're guiding in 26% ARR growth exit in the year. But with that capacity, if you hit that 40-50 additional heads, what kind of potential growth does that set you up for, once all those reps are fully ramped? It's about if you add the 20 to the 40-50, that gives us about 60% more capacity coming out of 2022 than we would have had going into 2021. It's a pretty substantial increase in bookings capacity once those resources are fully ramped. Is there a way you could speak to maybe like the kind of growth, you know, if once those resources are ramped, the kind of growth you might be capable of if all those additional reps, that 60% additional capacity are hitting quotas, et cetera? You mean like in 2023? Well, yes. Yeah. I don't know if it's too early, but, you know, again, if you're looking for 26% ARR growth in 2022, and that's with these, you know, 23 new reps not fully yet contributing. I guess I'm just kind of curious how you guys think about what kind of growth you'd be capable of if you add that 40-50 this year as well. Yeah, we're not quite prepared to go that far. It would be certainly north, well north of our growth rates that we're projecting for 2022. Exactly how far north, we're not quite ready to go public with that yet. Yeah. Yeah, fair enough. Just last, as I just sneak it in. Just payments, a pretty good bounce back it looks like. Just where are you at in terms of being fully recovered versus pre-COVID? I would say certain areas we are fully recovered. When we, TJ, during his remarks had mentioned, you know, like property taxes and business taxes. I think those volumes have come back. We do have certain activity that's more tied to, say, travel and leisure. And those numbers haven't quite bounced back yet. I think we still have a little bit of room to kind of get back to what I'll call pre-pandemic norms, but I'd say we're probably 80% there at this point. All right. Got it. Great. Thanks for taking the questions. Thanks, Rudy. Thanks, Rudy. Thank you, Rudy. As a reminder, ladies and gentlemen, if you would like to ask the management team a question, please press star followed by one on your telephone keypad now. We have no further questions from the audience. On behalf of our listeners today, thank you, Mark, John, and TJ for your presentation. I'll now hand back over to John for any closing remarks. Just wanna thank everybody for taking the time to join our call, and I hope you all have a great weekend. Thank you. Thank you, ladies and gentlemen, for joining today's call. Have a lovely rest of your day. This meeting will now close.