Core Insights - UPAY Inc.'s South African subsidiary, ACPAS, has entered a multi-phase development agreement with a major pan-African financial services group to launch a new digital lending brand in South Africa [1][2] - The partnership is structured to align ACPAS's growth with the lender's expansion in the South African online credit market, with revenue based on transactional income [2][5] - The new platform aims to provide South African consumers with affordable and transparent financing options, promoting responsible lending and financial inclusion [3][4] Scope of Work - The development deal includes custom software tailored for the new digital lender, a cutting-edge online lending website, and enhancements to ACPAS's Loan Management Software [5][6] - Key features of the platform will include streamlined credit origination, digital onboarding, real-time loan management, and scalable backend support for high-volume transactions [6][7] Compliance and Security - ACPAS's integration will adhere to strict compliance protocols and advanced risk management safeguards, aligning with South African regulations and international fintech best practices [4][7] - The platform will also ensure robust data privacy and credit governance standards [7]

Financial Data and Key Metrics Changes - MeridianLink achieved total revenue of $81.5 million, representing a 5% year-over-year growth, and adjusted EBITDA of $34.8 million, with a 43% adjusted EBITDA margin [6][27][36] - Free cash flow was $40.6 million, equating to 50% of revenue, and cash and cash equivalents at the end of the quarter were $128.9 million, an increase of $36.1 million from the previous quarter [42][36] Business Line Data and Key Metrics Changes - Total lending software revenue grew by 10% year-over-year, accounting for approximately 82% of total revenue, with consumer lending revenue growth at 11% and mortgage lending revenue growth at 7% [38][39] - Data Verification Software Solutions revenue declined by 15% year-over-year, primarily due to a 28% decrease in mortgage-related revenue [40] Market Data and Key Metrics Changes - In 2024, MeridianLink processed 28 million consumer loan applications and nearly $700 billion in application volume, alongside serving 50 million background checks and over 40 million credit reports [19] - The company completed 15 mortgage lending deals in Q1, marking a nearly 90% increase year-over-year, the highest count in over two years [30] Company Strategy and Development Direction - The company plans to focus on three strategic pillars: increasing product portfolio breadth and depth, simplifying customer interactions, and strengthening talent acquisition and retention [22][24] - MeridianLink aims to enhance its product offerings through partnerships and acquisitions, with a particular emphasis on digital interfaces and automation [77][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand environment, noting a strong pipeline and healthy demand across platforms, despite some softness at the top end of the sales funnel [59][60] - The outlook for 2025 remains unchanged, with total GAAP revenue expected to be between $326 million and $334 million, representing a 3% to 6% year-over-year increase [44][45] Other Important Information - The transition of CEO leadership from Nicholas Vlok to Larry Katz is planned for October 1, with Katz emphasizing continuity in strategy and operational focus [7][10] - The company has made significant investments in its go-to-market organization to enhance value delivery and operational efficiency [9][11] Q&A Session Summary Question: Are the changes in strategy an evolution or new initiatives? - Larry Katz indicated that the changes are a continuation of existing strategies with a focus on accelerating growth and improving customer interactions [54][56] Question: How is the demand backdrop and ability to replace ACV release? - Katz noted a strong and healthy pipeline, with robust demand across platforms, although some softness at the top of the funnel is being monitored [58][60] Question: What is the outlook for the consumer lending business? - Katz highlighted that growth is driven by ACV release, with solid demand in the consumer space and an increase in average ARR [66][68] Question: What are the expectations for the auto lending vertical in 2025? - Olmeta stated that while there is uncertainty, the company is assuming 7% year-over-year growth for the auto lending segment [82][84] Question: What is the appetite for M&A in the current environment? - Katz confirmed that M&A remains a core part of the strategy, with a focus on finding the right deals at the right price [96][98]