Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 2.1% to $4.3 million compared to $4.2 million in the same period last year [19] - SaaS revenue, including hosting, rose by 11.8% to $1.5 million from $1.3 million year-over-year, driven by early successes in payables automation [20] - Consolidated gross margin increased by 88 basis points to 65.8% for Q4 2024, compared to 64.9% last year [22] - Full year total revenue for 2024 increased by 6.7% to $18 million from $16.9 million in 2023 [25] - Full year net loss was $546,000 compared to net income of $519,000 last year [27] Business Line Data and Key Metrics Changes - Professional services revenue was flat at $2.2 million for Q4 2024, while year-to-date, it delivered 8.9% growth, reaching a record $10 million compared to $9.2 million last year [21][25] - SaaS revenue for the full year increased by 10.8%, contributing to improved margins [25] Market Data and Key Metrics Changes - The K-12 market is expanding quickly, with two additional Iowa school districts engaged after a pilot program [12] - The company is also targeting local governments and municipalities as potential new verticals for its solutions [46] Company Strategy and Development Direction - The company is transitioning to a predominantly SaaS-driven model, focusing on digital transformation solutions [7] - Investments are being made in sales and marketing to accelerate growth, with a focus on hiring more sales representatives and enhancing marketing efforts [17] - The launch of a complementary purchase order solution is expected to expand the customer base and increase transaction volume [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the payables automation solution as a key growth driver, highlighting high customer acceptance and significant ROI [8][9] - The company anticipates revenue growth for fiscal 2025, although EBITDA is expected to be reduced by more than half due to increased investments [31][32] Other Important Information - Cash flow from operating activities was $3.9 million, allowing the company to prepay $1.6 million of its debt [30] - The company has a strong balance sheet with total assets of $18.6 million and cash of $2.5 million as of December 31, 2024 [29] Q&A Session Summary Question: How many customers are live and what is the expectation for the second half of the year? - Management reported that two customers went live recently, with five more in the implementation process, indicating smooth transitions [36][38] Question: Is there any hesitation from customers regarding budget deployment? - Management noted that while some customers are cautious due to market conditions, the strong ROI from their solutions positions them well for sales [48][49] Question: Will SaaS line margins maintain above 85%? - Management indicated that while margins may fluctuate, they expect to maintain a mid-80s range due to the nature of customer engagements [50][52]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 2.1% to $4.3 million compared to $4.2 million in Q4 2023 [19] - SaaS revenue, including hosting, increased by 11.8% to $1.5 million for the quarter, driven by early payables automation successes [20] - Consolidated gross margin increased by 88 basis points to 65.8% for Q4 2024 compared to 64.9% in Q4 2023 [22] - Net loss for Q4 was $54,000, compared to net income of $62,000 for the same period last year [24] - Full year total revenue for 2024 increased by 6.7% to $18 million compared to $16.9 million in 2023 [25] - Full year adjusted EBITDA was $2.5 million, compared to $2.7 million for 2023 [28] Business Line Data and Key Metrics Changes - Professional services revenue was flat at $2.2 million for Q4 2024, accounting for 52% of total revenue, down from 53% last year [21] - SaaS revenue increased by 10.8% for the full year, while professional services revenue increased by 8.9% [25] Market Data and Key Metrics Changes - The K-12 market is growing quickly, with two additional Iowa school districts engaged after a pilot program [12] - The company is focusing on expanding into niche ERP providers and underserved markets, including county and local governments [46] Company Strategy and Development Direction - The company is transforming into a predominantly SaaS-driven business with a focus on digital transformation solutions [7] - Investments are being made in sales and marketing to accelerate growth, with a significant increase in sales and marketing expenses by 37% in Q4 2024 [23] - The company plans to enhance development capabilities and bring features to market more quickly [59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Payables Automation Solution as a key growth driver, with high customer acceptance and significant ROI [8][9] - The company expects revenue growth for fiscal 2025, but anticipates EBITDA to be reduced by more than half due to increased investments [31][32] Other Important Information - Cash provided by operating activities was $3.9 million, allowing the company to prepay $1.6 million of its debt [30] - Total assets were $18.6 million, with total liabilities of $7.9 million as of December 31, 2024 [29] Q&A Session Summary Question: How many customers are live and how many are expected to go live in the second half of the year? - Majority of customers are in the process of implementation, with two going live recently and five more in progress [38] Question: Does the live customer count include the large customer mentioned in the last call? - Yes, that customer is included, and they are processing a significant number of invoices with minimal human intervention [40] Question: Are there any hesitations from customers regarding budget deployment? - Customers are cautious due to market conditions, but the company believes it is well-positioned to demonstrate ROI [48][49] Question: Will SaaS line margins maintain above 85%? - Margins are expected to fluctuate but should remain within the mid-80s range [50][52] Question: What verticals is the company looking to expand into? - The company is exploring opportunities in county and local governments, as well as other ERP players [46]

Revenue Performance - Total revenue for 2024 was $18,018,373, representing a 6.7% increase compared to $16,886,381 in 2023[9] - SaaS revenue grew by 11.8% year-over-year, reaching $5,688,936 in 2024[5] - Professional services revenue increased by 0.3% to $9,985,028 in 2024[4] - Total revenues for the twelve months ended December 31, 2024, increased to $18,018,373, up from $16,886,381 in 2023, representing a growth of approximately 6.7%[25] - Software as a Service (SaaS) revenues reached $5,688,936 for the twelve months ended December 31, 2024, compared to $5,133,215 in 2023, reflecting an increase of about 10.8%[25] - Total recurring revenues for the three months ended December 31, 2024, were $2,649,893, slightly up from $2,646,580 in the same period of 2023[21] Net Income and Loss - The company reported a net loss of $546,215, or ($0.13) per share, compared to a net income of $519,266, or $0.13 per share in 2023[9] - The company reported a net loss of $546,215 for the twelve months ended December 31, 2024, compared to a net income of $519,266 in 2023[25] Operating Expenses - Operating expenses increased by 23.7% to $11,698,431, driven by structural investments and share-based compensation[9] - Total operating expenses for Q4 2024 were $2,829,369, an increase of 11.4% compared to $2,540,565 in Q4 2023[7] - Operating expenses for the twelve months ended December 31, 2024, totaled $11,698,431, up from $9,456,486 in 2023, representing an increase of approximately 23.5%[25] Cash and Assets - Cash and cash equivalents at the end of the period increased to $2,489,236 from $1,215,248 in 2023, marking a significant increase of approximately 104.5%[27] - The company’s total assets decreased to $18,574,956 as of December 31, 2024, down from $19,026,260 in 2023, a decline of about 2.4%[23] Liabilities - The company’s total liabilities decreased to $7,943,201 as of December 31, 2024, down from $9,275,539 in 2023, a reduction of approximately 14.4%[23] Future Outlook - Management expects revenue growth for fiscal year 2025, but anticipates EBITDA to be reduced by more than half due to increased sales and marketing investments[10] - The Payables Automation SaaS solutions are expected to be the primary drivers of future SaaS growth, with live reference accounts increasing by 50% in the last quarter[5][11] Debt Management - The company made $1,625,000 in debt prepayments in 2024, leaving just over $1.3 million in debt[4] Share Information - The weighted average number of common shares outstanding for basic calculations was 4,201,401 for the twelve months ended December 31, 2024, compared to 4,074,194 in 2023[25] Deferred Revenues - Deferred revenues rose to $3,411,852 as of December 31, 2024, compared to $2,927,808 in 2023, indicating an increase of about 16.5%[23]

Revenue Recognition and Stability - The company recognizes revenue from subscription agreements ratably over typically one-year terms, leading to potential delays in reflecting downturns in operating results [87]. - A significant portion of the company's revenue is derived from government contracts, which are subject to early termination and audits, posing risks to revenue stability [88]. - The company does not expect to pay any dividends on its common stock for the foreseeable future, as it plans to retain earnings to maintain and expand operations [109]. Compliance and Legal Risks - Compliance with federal securities laws results in higher expenses compared to privately held companies, impacting resource allocation for growth initiatives [90]. - The company may incur substantial expenditures due to indemnification obligations for directors and officers, which could discourage legal actions against them [91]. - The company faces risks from potential litigation related to intellectual property claims, which could increase costs and harm future revenue generation [97]. Market and Stock Performance - The issuance of additional securities may dilute existing shareholders' ownership and affect the market value of common stock [98]. - The market price of the company's common stock may fluctuate significantly, leading to potential losses for shareholders [106]. - FINRA sales practice requirements may limit the ability of shareholders to buy and sell the company's stock, adversely affecting market conditions [107]. - The company must comply with NYSE American listing requirements, and failure to do so could result in delisting and reduced trading activity [102]. Operational Risks - Security breaches could lead to loss of confidential information and significant liabilities, adversely affecting the company's reputation and business [92]. - The company faces risks from potential disruptions at third-party data centers, which could harm business operations and customer satisfaction [112]. - Global economic uncertainty, including inflation and higher interest rates, may adversely impact the company's operating results and financing [110]. - The company’s IntelliCloud Payables Automation Solution is targeted at industries like home-building and construction, which may be negatively affected by new tariffs [110]. Human Resources and Competition - The company relies heavily on attracting and retaining top employees, with competition for skilled personnel being intense [115]. - The company is dependent on its ability to protect proprietary technology, with software piracy posing a persistent threat to revenue [116].

Financial Data and Key Metrics - Total revenue for Q3 2024 increased by 8% to $4.6 million compared to $4.2 million in Q3 2023 [17] - Subscription software revenue increased to $1.76 million, with SaaS growing by 8.5% and software maintenance revenue remaining flat [18] - Professional services revenue increased by 11.5% to $2.6 million, representing 56.7% of total revenue [18] - Consolidated gross margin decreased slightly by 20 basis points to 61.1% due to unfavorable projects in document conversion services [19] - SaaS margins decreased slightly to 83.7% from 84.5% but remain strong [20] - Operating expenses increased by 37.3% to $3.1 million, driven by share-based compensation, sales and marketing investments, and general administrative expenses [21] - Net loss for Q3 was $393,000 compared to net income of $209,000 in Q3 2023 [23] - Adjusted EBITDA for Q3 was $479,000, down from $709,000 in Q3 2023 [23] - Cash position at September 30, 2024, was $2.5 million, with total assets of $19 million and total liabilities of $8.6 million [24] - Debt principal outstanding was $1.3 million after $800,000 in prepayments during the quarter [25] Business Line Performance - Payables Automation Solution (IPAS) is the primary growth driver, with strong customer acceptance and additional functionality around purchase orders expected by year-end [8][12] - IPAS is being deployed in the K12 ecosystem with a beta customer already live and additional orders secured [13] - The company is actively pursuing opportunities with niche ERP providers to outperform generic solutions [14] Market Performance - The company presented at the Build Smarter Homebuilding Industry Conference, where a customer showcased strong ROI from IPAS, leading to significant interest [11] - The K12 market, while having smaller transaction volumes, offers faster implementation times compared to homebuilders [13] Strategic Direction and Industry Competition - The company is investing in scaling its business, including hiring additional sales reps, an implementations manager, and expanding marketing efforts [15] - Investments are expected to temporarily reduce EBITDA but are anticipated to bring revenue opportunities that will exceed the spend by 2025 [15] - The company is focusing on integrating IPAS with new ERP systems and expanding into new verticals [31][33] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the future, citing strong SaaS assets, a cash-generating business model, and a competitive position in growing markets [38] - The company expects to grow revenues year-over-year for fiscal 2024, with adjusted EBITDA expected to decrease modestly due to increased investments [26] Other Important Information - The company has paid out $2.7 million in acquisition earnouts since 2021 and reduced long-term debt by $3.6 million since December 2022 [9] - The company has a strong deferred revenue position, particularly due to government and K12 contracts running from July to June [24] Q&A Session Summary Question: Total number of live IPAS customers entering 2025 - The company expects to have 11 or 12 customers live by early 2025, with a significant new customer providing $250,000 in annual revenue [27] Question: Pipeline potential from the homebuilders trade show - The company had a strong presence at the trade show, with over 50 attendees at their breakout session and positive feedback from a customer testimonial [28][29] Question: Pace of implementations and functionality - The company anticipates faster implementations as they formalize their release schedule and improve tools and product knowledge [30] Question: Expansion to other ERP systems - The company is actively working on integrating IPAS with other ERP systems, including a co-marketing agreement with Software Unlimited for the K12 market [31][33] Question: SaaS revenue inflection point - The company expects a meaningful inflection point in SaaS revenue in the second half of 2025, as new deals signed in late 2024 will start recognizing revenue in early 2025 [34][35] Question: Activity in Michigan - The company expects activity in Michigan to remain consistent through the end of the year, with low expectations for government-related business until the New Year [36][37]

Core Insights - Intellinetics, Inc. reported a quarterly loss of $0.09 per share, significantly missing the Zacks Consensus Estimate of $0.01, and compared to earnings of $0.05 per share a year ago, resulting in an earnings surprise of -1,000% [1] - The company posted revenues of $4.59 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 2.13%, but showing an increase from $4.25 million year-over-year [2] - Intellinetics shares have increased approximately 185.2% since the beginning of the year, outperforming the S&P 500's gain of 25.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $4.26 million, and for the current fiscal year, it is -$0.07 on revenues of $18.09 million [7] - The estimate revisions trend for Intellinetics is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Content industry, to which Intellinetics belongs, is currently in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Revenue Performance - Total revenue for Q3 2024 was $4,589,625, an increase of 8.0% compared to $4,248,429 in Q3 2023[6] - SaaS revenue increased by 8.5% year-over-year, contributing significantly to the overall revenue growth[2] - Professional services revenue rose by 11.5% compared to the same period in 2023, reflecting strong demand[4] - Year-to-date revenue for 2024 reached $13,738,302, an increase of 8.2% compared to $12,693,692 for the same period in 2023[9] - Total revenues for the three months ended September 30, 2024, were $4,589,625, an increase of 8.0% compared to $4,248,429 for the same period in 2023[20] - Software as a service revenue for the three months ended September 30, 2024, was $1,403,942, up 8.5% from $1,293,745 in 2023[20] - Professional services revenue increased to $2,600,230 for the three months ended September 30, 2024, compared to $2,333,090 in 2023, reflecting an increase of 11.5%[20] - Recurring revenue grew by 2.6%, representing 58.6% of total revenue, highlighting the stability of income streams[6] Profitability and Loss - Net loss for Q3 2024 was $392,850, or $(0.09) per share, compared to a net income of $209,331, or $0.05 per share in Q3 2023[8] - Adjusted EBITDA for Q3 2024 was $479,537, down from $708,749 in Q3 2023, indicating a decline in operational profitability[8] - Net loss for the nine months ended September 30, 2024, was $492,514 compared to a net income of $457,628 in 2023[24] Operating Expenses - Total operating expenses increased by 37.3% to $3,104,065, driven by higher share-based compensation and increased sales and marketing investments[7] - Share-based compensation rose significantly to $1,185,330 from $349,073 in 2023, indicating increased employee compensation costs[24] Cash Flow and Assets - Net cash provided by operating activities increased to $3,652,417 from $1,128,314 in the previous year, representing a growth of approximately 224%[24] - Cash at the end of the period increased to $2,501,729 from $1,689,125 in 2023, showing a positive cash flow trend[24] - Total current assets increased to $5,514,625 as of September 30, 2024, from $5,004,375 as of December 31, 2023[21] - Cash balance increased to $2,501,729 as of September 30, 2024, compared to $1,215,248 as of December 31, 2023[21] Liabilities and Equity - Total liabilities decreased to $8,590,848 as of September 30, 2024, from $9,275,539 as of December 31, 2023[22] - Total stockholders' equity increased to $10,443,537 as of September 30, 2024, from $9,750,721 as of December 31, 2023[23] Future Outlook - Management expects revenue growth to continue year-over-year for the fiscal year 2024, despite anticipated declines in Adjusted EBITDA due to increased investments[10] - The company plans to continue investing in sales and marketing to drive future growth, particularly through the IPAS solution[3] Deferred Revenues - Deferred revenues increased to $3,468,109 as of September 30, 2024, compared to $2,927,808 as of December 31, 2023, indicating growth in future revenue recognition[22] - Deferred revenues increased to $540,301 from $378,061 in 2023, suggesting growth in future revenue recognition[24]

Revenue Performance - Revenues for Q3 2024 were $4,589,625, representing an 8.0% increase year over year, while revenues for the nine-month period 2024 were $13,738,302, reflecting an 8.2% growth compared to the same period in 2023[97][101]. - The Document Management segment generated revenues of $1,913,116 in Q3 2024, up from $1,871,395 in Q3 2023, and $5,592,624 for the nine-month period 2024, compared to $5,549,194 in the same period last year[111]. - The Document Conversion segment reported revenues of $2,676,509 in Q3 2024, an increase from $2,377,034 in Q3 2023, and $8,145,678 for the nine-month period 2024, compared to $7,144,498 in the prior year[111]. - Revenues for Q3 2024 increased by $341,196, or 8.0%, and for the nine-month period by $1,044,610, or 8.2%, primarily driven by software as a service and professional services in the Document Conversion segment[113]. - Software as a Service revenues rose by $110,197, or 8.5%, in Q3 2024 and by $399,591, or 10.5%, in the nine-month period compared to the same periods in 2023, mainly due to new cloud-based solution sales[114]. - Professional services revenues increased by $267,140, or 11.5%, in Q3 2024 and by $811,571, or 11.7%, in the nine-month period, driven by a significant project in Document Conversion[115]. Operating Expenses - Operating expenses (excluding cost of revenues) for the nine-month period 2024 increased by 28.2% to $8,869,062, driven primarily by share-based compensation and investments in sales and marketing[102]. - Total operating expenses for Q3 2024 were $3,104,065, up from $2,260,036 in Q3 2023, marking an increase of 38.4%[127]. - General and administrative expenses increased by $597,833, or 39.4%, in Q3 2024 compared to Q3 2023, primarily due to new share-based compensation expenses[127]. - Sales and marketing expenses rose by $206,211, or 41.6%, in Q3 2024 over Q3 2023, driven by the expansion of the sales team[129]. Profitability - The net loss for Q3 2024 was $392,850, with a basic and diluted net loss per share of $0.09, compared to a net income of $209,331 and earnings per share of $0.05 in Q3 2023[100]. - Gross profit for Q3 2024 was $2,805,854, compared to $2,605,591 in Q3 2023, with a gross profit percentage of 61.1%[121]. - Overall gross profit decreased to 61.1% in Q3 2024 from 61.3% in Q3 2023, but increased to 63.4% for the nine-month period 2024 from 61.8% in 2023[123]. - The gross profit percentage for professional services improved to 45.0% in Q3 2024 from 42.6% in Q3 2023[121]. Cash Flow - Operating cash provided was $1,933,562 in Q3 2024, compared to $1,427,945 in Q3 2023, indicating improved cash flow from operations[100]. - Net cash provided by operating activities during the nine-month period 2024 was $3,652,417, compared to $1,128,314 in the same period of 2023[139]. - Net cash used in investing activities in the nine-month period 2024 was $695,359, including $302,396 in capitalized software[140]. - As of September 30, 2024, the company had $2.5 million in cash and cash equivalents and a working capital deficit of $0.2 million[134]. Workforce and Growth - The company had 199 employees as of September 30, 2024, an increase from 165 employees a year earlier, reflecting growth in workforce to support business expansion[105]. - The company anticipates continued growth driven by the demand for software as a service (SaaS) solutions, particularly in light of the increasing adoption of remote workforce policies[92][93]. - The company is focusing on expanding its cloud-based solutions and data storage offerings to drive future growth[114]. Challenges and Risks - The company anticipates a significant adverse impact on future professional services revenues due to potential pricing renegotiations with its largest Document Conversion customer[115]. - The company experienced a higher than normal churn rate in K-12 customers affecting the growth of the YellowFolder product[114]. - Cost of Software as a Service (SaaS) increased by $28,819, or 14.4%, in Q3 2024 compared to Q3 2023, while gross margin decreased to 83.7% from 84.5%[124]. - Cost of Professional Services rose by $92,715, or 6.9%, in Q3 2024 over Q3 2023, with gross margins increasing to 45.0% from 42.6%[125]. Customer Contracts - The company secured a renewal contract with its largest customer, with an estimated net rate increase of approximately 21% effective October 1, 2023[133].

Company Performance - Intellinetics, Inc. reported quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.04 per share, and down from $0.03 per share a year ago, representing an earnings surprise of -50% [1] - The company posted revenues of $4.64 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.69%, and up from $4.26 million year-over-year [2] - Over the last four quarters, Intellinetics has surpassed consensus revenue estimates three times, but has only exceeded EPS estimates once [2] Stock Performance - Intellinetics shares have increased approximately 78.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 12.1% [3] - The current Zacks Rank for Intellinetics is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $4.82 million, and for the current fiscal year, it is $0.08 on revenues of $18.48 million [7] - The outlook for the Internet - Content industry, to which Intellinetics belongs, is currently in the bottom 42% of Zacks industries, which may impact the stock's performance [8]

Revenue Performance - Revenues for Q2 2024 were $4,641,593, representing a year-over-year growth of 9.0%[81] - Revenues for the six-month period 2024 totaled $9,148,677, reflecting an 8.3% increase compared to the same period in 2023[83] - Revenues increased by $383,163, or 9.0%, in Q2 2024 and by $703,414, or 8.3%, in the six-month period 2024, driven by software as a service and professional services[92] - Software as a Service revenues rose by $122,673, or 9.6%, in Q2 2024 and by $289,394, or 11.5%, in the six-month period 2024, primarily due to new cloud-based solution sales[93] - Professional services revenues increased by $364,042, or 15.8%, in Q2 2024 and by $544,431, or 11.8%, in the six-month period 2024, with a strong pipeline in Document Conversion[94] Operating Expenses - Operating expenses (excluding cost of revenues) for the six-month period 2024 were $5,764,997, an increase of 23.8% year over year[83] - Operating expenses totaled $2,830,873 in Q2 2024, an increase from $2,294,045 in Q2 2023, with general and administrative expenses rising by $463,857[106] - General and administrative expenses increased by $463,857, or 29.7%, in Q2 2024 compared to Q2 2023, and by $1,037,739, or 33.3%, in the six-month period 2024 compared to 2023[107] - Sales and marketing expenses rose by $38,136, or 7.7%, in Q2 2024 compared to Q2 2023, and increased by $246, or 0.0%, in the six-month period 2024 over 2023[108] - Depreciation and amortization increased by $34,835, or 14.5%, in Q2 2024 compared to Q2 2023, and by $71,127, or 15.2%, in the six-month period 2024 compared to 2023[109] Profitability - Net loss for the six-month period 2024 was $99,664, compared to a net income of $248,297 for the same period in 2023[85] - Gross profit margin improved to 64.7% in Q2 2024 from 60.8% in Q2 2023 and to 64.5% in the six-month period 2024 from 62.0% in the six-month period 2023[102] - Professional services gross margins increased to 49.5% in Q2 2024 from 43.1% in Q2 2023, reflecting stabilization of wages and price increases[104] Cash Flow and Financing - Operating cash generated in Q2 2024 was $1,107,089, compared to cash used of $125,274 in Q2 2023[82] - Net cash provided by operating activities was $1,718,855 in the six-month period 2024, compared to a net cash used of $299,631 in the same period of 2023[118] - Net cash used in investing activities was $398,766 in the six-month period 2024, compared to $291,101 in the same period of 2023[119] - Net cash used by financing activities was $825,000 in repayment of notes payable during the six-month period 2024, compared to $700,000 in earnout liability payments in the same period of 2023[120] - As of June 30, 2024, the company had approximately $1.7 million in cash and cash equivalents and a net working capital of $0.5 million[112] Employee and Market Outlook - As of June 30, 2024, the company employed 189 individuals, an increase from 170 employees a year prior[85] - The company anticipates continued growth driven by the demand for SaaS solutions amid economic recovery[86] - The inflationary environment has led to increased labor costs, which the company has mitigated through customer renewal rate adjustments[86] - The company anticipates potential pricing renegotiations with its largest customer, which may adversely impact future professional services revenues[94] - The company secured a renewal contract with its largest customer, with an estimated net rate increase of approximately 21% effective from October 1, 2023[113] Debt and Indebtedness - Outstanding long-term indebtedness as of June 30, 2024, consisted of the 2022 Notes with an aggregate outstanding principal balance of $2,139,500[116]