Financial Data and Key Metrics Changes - The company's first quarter revenues were $34.9 million, reflecting a 10% increase compared to the prior year [5][13] - Recurring revenues grew 10% year-over-year to $33.2 million, representing 95% of total revenue [13][30] - Gross profit increased by 9% to $24.6 million, with gross margins remaining consistent at 71% [14] - The net loss for the first quarter was $2.4 million, compared to a net loss of $308,000 in the prior year [15] - Adjusted EBITDA for the first quarter increased to $7.3 million from $6.8 million in the prior year, with an adjusted EBITDA margin of 21% [16] Business Line Data and Key Metrics Changes - Strong performance was noted in payroll tax management, payroll benefits, and marketplace offerings [5][30] - The payroll tax management product has seen continued momentum, with new capabilities launched for large Canadian companies [7][8] - The company reported a 45% increase in new bookings compared to the prior year, with a contracted revenue backlog up 339% year-over-year to $82 million [11][30] Market Data and Key Metrics Changes - The company has a well-diversified U.S. client base, with revenues being more than 95% recurring [29] - The HR compliance segment remains depressed due to the wind down of the ERTC program, but better performance is expected in the second half of 2025 [14][30] Company Strategy and Development Direction - The company is focused on a multi-pronged growth strategy that includes organic growth, enhanced organic growth, and inorganic methods through acquisitions [9][10] - A new $60 million credit facility was finalized to support customer acquisition and drive inorganic growth [18][72] - The company aims to achieve revenues of $180 million to $200 million in the medium term, with adjusted EBITDA margins of 30% or more [26][91] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's ability to grow, citing a robust pipeline of opportunities and positive trends in product launches [23][30] - The company anticipates accelerated revenue growth in the second half of 2025, driven by improved attach rates and cross-selling efforts [87] - Management noted that the worst is over regarding the HR compliance segment, with expectations for a strong second half of the year [41][42] Other Important Information - The company has made 16 acquisitions over the past 18 months, primarily focused on customer acquisition and expanding the product suite [19] - The company is leveraging artificial intelligence to enhance customer interactions and product development [27] Q&A Session Summary Question: What are you seeing in terms of productivity with dedicated sales teams? - Management highlighted that attach rates have improved, with a notable example of a client increasing their spend significantly after adopting multiple products [35][36] Question: How much progress have you made on maintaining HR compliance with customers? - Management indicated that retention rates had declined due to the ERTC program but expect to see improvement in the second half of 2025 as the cohort stabilizes [40][41] Question: Any slowdown in pipeline based on economic uncertainty? - Management reported that while sales cycles may have lengthened slightly, the pipeline remains strong, and small businesses are active [48][50] Question: Can you discuss your investments and product roadmap? - Management confirmed ongoing investments in technology and product development, with a focus on enhancing the product suite and cross-selling opportunities [56][61] Question: How should we think about acquisitions with the new credit facility? - Management confirmed two acquisitions in the first quarter and expects an increased cadence in the second half of the year, supported by the new credit facility [70][72] Question: What are the primary drivers for accelerated revenue growth in the back half of the year? - Management cited improved attach rates, a growing contracted backlog, and the ramp-up of enterprise deals as key drivers for expected growth [85][87]