Good day and welcome to Paymentus's third quarter 2022 earnings call. This call is being recorded. All participants are currently in a listen only mode. There will be an opportunity for questions following management's prepared remarks. At this time, I would like to hand the call over to Paul Seamon, Interim Chief Financial Officer, for some mandatory comments. Please go ahead. Thank you. Good afternoon, and welcome to Paymentus's third quarter 2022 earnings call. Joining me on the call today is Dushyant Sharma, our Founder and CEO. Following our prepared remarks, we will take questions. Our press release is issued after the close of market today and is posted on our website where this call is being simultaneously webcast. The webcast replay of this call and the supplemental slides accompanying this presentation will be available on our company's website under the Investor Relations link at ir.paymentus.com. Statements made on this webcast include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements use words such as will, believe, expect, anticipate, and similar phrases that denote future expectation or intent regarding our financial results and guidance. The impact of, and our ability to address continued economic uncertainty on inflation, our market opportunities, business strategies, implementation timing, product enhancements, impact from acquisitions and other matters. These forward-looking statements speak as of today, and we take no obligation to update them. These statements are subject to risks, uncertainties, and assumptions that may cause actual results to differ materially from those set forth in such statements, including the risks and uncertainties set forth under the captions, Special Note Regarding Forward-Looking Statements and Risk Factors in our annual report on Form 10-K for the year ended December 31st, 2021, which we filed with the SEC on March 3rd, 2022. Our quarterly report on Form 10-Q for the quarter ended September 30th, 2022, which we expect to file with the SEC shortly, and elsewhere in our other filings with the SEC. We encourage you to review these detailed safe harbor and risk factor disclosures. In addition, during today's call, we will discuss certain non-GAAP financial measures. Specifically, contribution profit, adjusted gross profit, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP financial measures. These non-GAAP financial measures, which we believe are useful in measuring our performance and liquidity, should be considered in addition to, and not as a substitute for or in isolation from GAAP results. We encourage you to review additional disclosures regarding these non-GAAP measures, including reconciliations with the most directly comparable GAAP measures in our earnings press release issued today and supplemental slides for the webcast, each available on the investor relations page of our website. With that, I'd like to turn the call over to Dushyant Sharma, our Founder and CEO. Thank you, Paul. We are pleased with our solid performance in the third quarter. In the quarter, we booked over $30 million of new annualized recurring revenue, and expect total new bookings for the year to exceed $100 million, which is about 30% higher than the previous year. Based on our current pipeline, we also expect our bookings momentum to continue well into 2023 and beyond. As a reminder, our contract terms generally average four to five years, and assuming the continuation of our historically high retention rates, we expect this revenue to grow organically for a long time. Our contribution profit increased over 25% to $51.1 million, driven by a 31% increase in transactions compared to the same period last year. Our adjusted EBITDA margin grew over 5 percentage points from 10.3% in Q2 to 15.7% in Q3, notwithstanding our continued investments in the emerging areas of our business, namely IPN and other related products, which includes our bank-based bill payment as well. During the quarter, we completed the implementations of several significant clients, including a large municipal utility, a timeshare vacation club, and a real estate company, which continue to show the breadth of our platform functionality and vertical reach in an expanding addressable market. We also launched a citywide deployment with the City of Baltimore, as publicly announced. This implementation was completed within a couple of quarters, which shows that our large client enterprise-wide deployments can be completed and implemented relatively quickly with a strong client engagement. We continue to work to motivate clients to accelerate timelines to match our pace. Additionally, in the quarter, we expanded the payment acceptance capability of a large utility that joined our IPN for expanded coverage of newer payment methods and channels. We are seeing more and more demand for these newer payment methods and channels enabled by IPN, which is bringing additional consumer adoption and accompanying transactions. One of the most important aspects of our IPN is our ever-increasing reach. I'm happy to report that our IPN has crossed over 1 million payees, including SMB businesses, which we believe sets a great foundation for Paymentus to continue to offer innovative services to these payees who are receiving payments but not fully utilizing our platform yet. During the quarter, we completed the implementation of a credit union with $3 billion in assets on our new flagship product, Bill Center, which we believe is attracting interest from other companies and generating larger opportunities. As a result, our IPN Bill Center bank bookings are up significantly over last year, and we expect that trend to continue into 2023. As a reminder, there is currently no interchange associated with any IPN and Bill Center originated transactions. I'm proud of our results for the quarter and continue to be excited about our ability to deliver long-term profitable growth. Just over two years ago, for context, in 2020, we were a $300 million revenue run rate company prior to us going public. In spite of COVID, the economic downturn, higher interest rates, and the inflationary challenges we have faced during last two years, since 2020, we have added about $200 million of revenue, and we have now crossed a run rate of $500 million of revenue. As I said earlier, we expect to close out 2022 with over $100 million in new sales, which once fully implemented, as anticipated, is expected to bring our revenue run rate to over $600 million, doubling our business in a relatively short period of time. We are working to build a significantly larger business, and we'll share more details about our strategy in 2023. With that, let me pass on to Paul. Thanks, Dushyant. As a reminder, today's discussion includes non-GAAP financial measures. Please refer to the tables in our press release and supplemental slides for a reconciliation of non-GAAP items to the most directly comparable GAAP financial measure. In the third quarter, we processed 92.2 million transactions, a 30.6% increase over the same period last year. Revenue was $128.2 million, an increase of 26.0% in the quarter. Contribution profit increased 25.8% over Q3 of last year to $51.1 million, which was a little stronger than we anticipated. Contribution profit per transaction was $0.55, which was consistent with the past three quarters and our expectations. We continue to experience inflation in our average purchase amounts, but are starting to see some of the benefit of the pricing actions and other expense management measures we've implemented in the quarter. Adjusted gross profit increased $8.5 million or 26.0% in the quarter to $41.0 million. Adjusted EBITDA was $8.0 million for the third quarter, which represented a 15.7% adjusted EBITDA margin. Our EBITDA from our biller direct business is materially higher than reported here. Due to our focus on the longer-term growth, we continue to invest in IPN and related initiatives, which puts pressure on current margins. We believe this is a worthwhile trade-off to fuel growth for the long term as we expand our ecosystem and total addressable market. Operating expenses rose $8.7 million to $38.8 million for Q3 of 2022 from the same period last year. Overall, the increase in operating expenses from last year was driven by investments in staffing, as well as additional operating expenses associated with our 2021 acquisitions, the amortization of identified intangible assets from the acquisitions and stock-based compensation. Specifically, R&D expense increased $1.5 million from the third quarter in 2021 to $10.3 million. Sales and marketing increased $7.7 million, driven by the Payveris acquisition, continued expansion of the sales team, adding partnerships to capture our sizable market opportunity, and an increase in stock-based compensation. We experienced a decrease in G&A expense of $500,000 due to continued efforts to control costs related to corporate insurance and employee hiring. Our GAAP net loss was $700,000, and EPS for Q3 was -$0.01. Non-GAAP net income was $1.8 million, and non-GAAP EPS was $0.01 for the quarter. As of September 30th, 2022, we had $148.3 million in cash and cash equivalents on our balance sheet. Cash decreased primarily due to the timing of certain customer payments, as well as increased operating expenses due to the acquisitions. At quarter end, we had approximately 123 million shares of common stock outstanding. Now turning to our 2022 full-year outlook. We are reiterating our 2022 revenue outlook with the range of $485 million-$492 million. Our contribution profit guidance was maintained between $200 million and $204 million for the year, which is approximately 26%-29% growth. Our adjusted EBITDA outlook continues to be in the range of $25 million-$28.5 million, with an adjusted EBITDA margin of 13%-14%. Our current guidance reflects our assumptions around continued inflation as well as ongoing wage pressure. Finally, as we said last quarter, we would anticipate our full-year effective tax rate to be around 30%. However, due to the amortization of intangibles associated with the acquisitions, the closer we are to breakeven on a pre-tax book income, the more variation we could see in our tax rate. In addition, the permanent tax benefit from stock-based compensation continues to impact the rate. I'll now turn the call over to Dushyant for closing comments. Thanks, Paul. To close, we are very excited about the continued acceleration of demand for our product and services, exemplified by our expectation of over $100 million of bookings in 2022, accelerating growth in IPN, and also the fact that outside of IPN and related investments, our EBITDA is already materially higher. I hope this provides you the context why this gives us confidence in our growth and profitability for years to come. Especially when you consider the fact that we have almost doubled our business on a fully implemented run rate basis in just two years. It is very exciting, and we are just getting started. With that, I would like to thank our team who tirelessly work very hard to serve our clients. I'll now turn the call over to the operator for questions. Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If for any reason you would like to remove that question, please press star followed by two. Again, to ask a question, press star one. As a reminder, if you're using a speakerphone, please remember to pick up your handset before asking your question. We will pause here briefly as questions are registered. The first question is from the line of John Davis with Raymond James. Your line is now open. Hey, good afternoon. Thanks, guys. Just Dushyant, impressive margins this quarter. You kinda called out, you know, expense control and really focusing on profitability. Maybe just help us kinda understand how you think about the longer-term margin ramp and, you know, how you think about getting back or getting to that 25%-30% longer-term margins that you guys have talked about. Thanks, John. I think, look, our focus remains that. First of all, the reason we wanted to highlight the fact that our core business is already more profitable than or in some ways, the EBITDA is subdued because of the investments we are making into IPN and other products. Frankly, is materially higher than that than what we are reporting here. We feel very confident that as our investments start to deliver more results, financial results, we will be able to get back to the type of margins we have talked about. Additionally, we are making, you know, we are very focused on expense control and making sure that we are, in this tough market, we are being very judicious about all our investments, all new expenses we are making. We plan to get there, I think, over a period of time, and we'll talk more about that in our next quarter, as well. Okay. Nice to see the upside this quarter, just reiterating the guide. Any kind of timing shifts, stuff that fell in this quarter? Or, you know, should we just view the fourth quarter guide as conservative? I think, look, our range for the fourth quarter is still broad, as you can see, and primary reasons are, you know, there are three factors, implementation, the pricing adjustment based on inflation and inflation itself. If things fall in our favor, we could be in the mid to high end of the range. If some of them don't, it'll be in the low to mid part of our range. I wouldn't consider that guide to be a conservative guide. I think that's the range we are pursuing based on these factors. Okay. Last one for me quickly. Any help in helping size IPN? Or maybe if you can't, talk about when you think it could be material to the top and bottom line. I know it's growing nicely, but just curious if you can help us with sizing there, that'd be helpful. Well, look, we'll provide our guidance next year, but it is growing. We're expecting 2023 IPN to be growing much faster than our overall growth rate, as stipulated here. And it is. Okay. IPN and some of the related products, I mean, have a headwind towards our EBITDA margins, as we have talked about. As I shared earlier, I think we'll be able to overcome that as those investments start to pay off even more so than they are already doing right now. Okay. Appreciate the color. Thanks, guys. Thank you. Thank you for your question. The next question is from the line of David Koning with Baird. Your line is now open. Yeah. Hey, guys. Thanks. Good quarter too. I guess my first question, I guess it's a little like John's in terms of, like, gross revenue guidance. Even the top end implies a sequential fall off a little bit in Q4. Is there something seasonal about Q4 that would cause that? 'Cause I would normally think that the billers just keep adding on to each other and naturally just get sequential progression, you know, through the year. Well, I mean, there are, you know. First of all, there are different factors. I think, Q4 on its own, it has, you know, believe it or not, a lot of bills are still paid during the working hours and the weekdays. Q4 tends to have a lot more holidays than some of the other quarters of the year. That plays a role in this, but the other factors are, you know, based on how the implementations are going and how many of them are able to produce for us during the quarter. A couple of the other points I talked about, the inflation itself and the pricing related to the inflation. Yeah. Okay. Then, you know, one nice trend, I mean, your contribution profit all through the year has grown at least as fast as your gross revenue, even with the inflation kind of in the market. Do you see going forward now, you know, if inflation continues, can you continue to have that pattern, especially as the IPN comes on, that I guess network fees get leveraged, basically? Yeah. I mean, look, IPN has a pretty interesting factor, which is neither it is affected by, because there's no interchange associated with it, so there's no inflation impact that way. If anything, we do have the ability to adjust our pricing based on inflation, and we do that on the IPN side already. That is just a net benefit, but there's no additional cost due to interchange rising. We see that as IPN starts to become a material contributor to our business. IPN, I think, as. We will talk, Paul and I will, as I mentioned in our prepared remarks, and we'll talk more about that in 2023 because we want to talk a little bit about, give you the color behind how we see IPN growing, not just the way the dimension it is understood to be in. If you reflect back on what I said earlier, that we now have access to a million payees, and a lot of them are SMB businesses. For us, we think of IPN truly a network effect where we can take these payees we are sending payments to to now start offering them products or services we otherwise wouldn't be able to because and especially given they're receiving money from us we are able to target those payees more effectively. Said differently, IPN to us is bigger than just the one source of revenue. It's also an ability to monetize more of the product and services than otherwise is visible. We'll talk more about that. To specifically address your point you're talking about is that absolutely. If, as IPN becomes bigger part of our business, interchange does get less of a factor. Yeah. Gotcha. Well, great. Thanks, guys. Thank you for your question. There are currently no further questions registered, so as a reminder, it is star one on your telephone keypad. There are no additional questions waiting at this time. I'll now turn the call back to management team for any closing remarks. Well, thank you for your time. Really appreciate it, and look forward to speaking to you, later. Thank you. That concludes the conference call. Thank you for your participation. You may now disconnect your.