Triumph Financial, Inc. (NASDAQ:TFIN) Q2 2024 Earnings Conference Call July 18, 2024 10:00 AM ET

Company Participants

Luke Wyse - Senior Vice President, Head of Investor Relations
Aaron Graft - Founder, Vice Chairman and Chief Executive Officer
Melissa Forman - President, TriumphPay
Tim Valdez - President, Factoring Division

Conference Call Participants

Tim Switzer - KBW
Gary Tenner - D.A. Davidson
Jordan Ghent - Stephens
Hal Goetsch - B. Riley Securities
Frank Schiraldi - Piper Sandler

Luke Wyse

Good morning. It's 9:30 in Dallas, so let's get started. We'd like to open by thanking you for your interest in Triumph Financial and for joining us this morning to discuss our second-quarter results. With that, let's get to business. Aaron's letter last evening discussed the quarter's results and the investments we are making in a few projects that we believe will create long-term shareholder value. We are excited about the opportunities we see to lift an industry and create a network that delivers tangible benefits to all participants while improving transparency and creating value for America's truckers.

As you'll see this morning, Todd will not be joining us. Todd is never afraid to get in the trenches and leave during difficult market conditions. However, today he is recovering from Achilles tendon surgery after being reminded that pickleball is not a contact sport. We wish him well on a speedy recovery and expect to welcome him back to the earnings call in Q3. That quarterly shareholder letter published last evening and our quarterly results will form the basis of our call today.

However, before we get started, I would like to remind you that this conversation may include forward-looking statements. Those statements are subject to risks and uncertainties that could cause actual and anticipated results to differ. The Company undertakes no obligation to publicly revise any forward-looking statement. For details, please refer to the safe harbor statement in our shareholder letter published last evening. All comments made during today's call are subject to that safe harbor statement.

With that, I'd like to turn the call over to Aaron for a welcome and to kick off our Q&A. Aaron.

Aaron Graft

Thanks, Luke, and thank you all for joining us this morning. I have just a few comments before opening it up for questions. The big story this quarter is our progress in building density. Our network engagement stands at just under 47% as we sit here today. With the signing of C.H. Robinson and with ArcBest, a Top 20 broker going live during the quarter, we have a sight line to achieving critical mass related to our network density, and monetization is what follows density. This is the way it works in network economies. We have a tremendous amount of momentum right now. Now that's what we see on the horizon. And while our eyes are on the horizon, it is not lost on me that we live in the present. And for the present, our earnings are under pressure for the reasons I wrote about in the letter. There are some things we can control and some that we cannot control.