STRM - Earnings call transcript Q2 2021 | Streamline Health Solutions, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to Streamline Health Solutions Second Quarter 2021 Earnings Conference Call and Corporate Update. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Jacob Goldberger, Director of Investor Relations, FP&A. ahead. go Please

Jacob Goldberger

joining results for second the update XXXX. corporate of Thank of us Streamline financial XX, July review which the Health and XXXX you ended for Solutions quarter for

operator the indicated, As call my is Jacob name Goldberger. conference

Tom from will are Officer prepared call remarks, Executive Chairman call Streamline Chief or Salisbury, www.streamlinehealth.net the Company; of Gibson, today's full question-and-answer can Board; press of financial Avelead, the Joining the President a numerous have President Shaikh, Chief and our Green, Marketing Randy from today a it on session. At and not anyone Tee we text Sales company's Officer; Officer. today's open on website me and announcing the call our of you of release Jawad the Chief participating Officer Chief at for and websites. copy a and Financial Executive Health If results, does retrieve conclusion

releases is more file XX-K including and risks, These these Commission, uncertainties refer made information we with uncertainties, submit factors. and Please therefore made this actual annual historical Exchange record factors Securities to remarks, with the Private may call want and the be report and most filings our for those press following on Securities statements may our not certain to statement. facts meaning for are that Statements Before are we to and U.S. the be the provided could everyone considered we how calls, the recent the should to earnings of XXXX. are from of results begin subject as sure company's today, to clear the information Act be record which other materially of risks, cause assumptions conference assumptions on are about forward-looking that SEC Form for differ We all the viewed. within other on prepared be Litigation with we Reform which discuss. with

of forward-looking financial Avelead. On related will today's management's call, always, these to Streamline discuss. measures on as we Management revise presenting commitment adjusted these we As any made financial obligation call this publicly are risks provide undertaking discuss and as our take figures statements performance. account measures, such uses non-GAAP any recent the current of better will today. should not EBITDA when of acquisition topics or evaluating Please we to note, into unaudited these today. does Health to our Participants items analysis insight help into such

of and www.streamlinehealth.net and now non-GAAP to the our at Tee. call measures a President for Executive certain ahead, of these in another from are income expense entity which measures. non-GAAP compare on differ website included to terms, Green, turn our I To amounts to these would utilize help comparable please most reconciliation such you and However, refer over own like release consistent items the earnings Go calculating not these calculations Tee in GAAP so may their those to measures, Officer. Chief the measures. may

Tee Green

and for all Thank morning. you, Jacob us thank this you joining

are quarterly our recent Avelead. our excited we of to addition In acquisition report, to discuss

for him want we He but call. about following his solutions going As who calls future. for Avelead Q&A these appearance to regular Jacob will Shaikh, will also grew to and we a Jawad forward. are making will that and from you by the be all mentioned, founded today's lead today, continue not be vision on and business hear joined available Avelead Jawad directly

S growth, plus service, I success like straight-cohort like equals Our [ph] eValuator company follows that G. a customer team, for revenue our equals paradigm-shifting plus growth innovation formula and is our software

continue eValuator we features and benefits. improve and it's Regarding capabilities it's to expand innovative solution, our

our on reviews an expanding and support line customers, well-known partners strong to effects our service and referenceable sales revenue. of yield of customers' growth. healthcare growing large list provides team success reseller a we combination customer pipeline. stable Today, top providers in bottom have This of Our continues innovation eValuator's and and number

results; revenue a to now million, in the included in financial is reminder, second Avelead $X.X XXXX. for XXXX. our the revenue of figures. these for line total to was our revenue accounted the quarter SaaS not XXXX. of second from to as second Moving compared XXXX revenue XX% with second quarter XXXX quarter Notably, quarter XX% of grew quarter XX% this of Recurring for Total

Second loss compared XXXX. the of $XXX,XXX during loss second an $XXX,XXX quarter XXXX quarter a was EBITDA of of adjusted to adjusted EBITDA

XXXX, cash with connection cash XX, Avelead, with Bridge no our $XX July of we and entered term million of of bank of $XX a $XX.X we approximately on with our loan Bank. acquisition In hand million into million had As debt. utilized

issued at closing. $X to also stock restricted out of price We to sellers round the million the purchase

clean about our remains table will Gibson, remarks. his with only common additional provide details cap during Our financials of stock. CFO, our one prepared class Tom

two in fit March great our recent Avelead, strides Streamline last has ECM a of in a for made position our found business and to million legacy for years, milestone the cleared successfully $XX clean our our preferred our our position the XXXX offering. up table, our We cap achievements bank put acquisition sheet, to stock balance company. These a the raised significant growth. for company on to Over major our outstanding us team eliminated debt complete

was only hospital revenue of cycle Our systems not the leadership nation solutions ones, Avelead's embraced have solutions. we're the impressed team and largest Avelead some the in with

a As the growth. enjoyed company rapid revenue result, has

million totaled run million. rate of for $X.X SaaS $XX.X total trailing the and revenue months XX As June XX, Avelead's XXXX, ARR was

will revenue, our of Avelead's XXXX for have and portfolio XXXX. management we fiscal profitability that combining revenue with for Avelead consolidated revenue and products to expect Streamline, more our of fiscal By customers. that cycle expanded of doubled be all closer than nearly our We SaaS twice moved

a tremendous We job building done Shaikh have to team Jawad are thrilled to business. They the to a Avelead welcome successful and Streamline.

our President and the Shaikh, my member Avelead, team, CEO the is a Jawad Now, of Health it Company. pleasure to newest Streamline of introduce

Jawad Shaikh

Thank to to to put healthcare is speak you. to a end Avelead's lost have pleasure our mission Tee. you, revenue the providers. for an with It's of opportunity all

the those and healthcare of you of organizations most Avelead, cycle out of cycle increasing every a revenue millions result of the errors At and for better company, a employees. eValuator, dollars our just management or clinical revenue realized have are not vision, losing revenue down I that, practice built the follow providers space with XXX% complexity who I had like as suite earned. As understand billing. of solutions Tee consulting customers chance they've capture to his borne our year we've of coding a better could our closely, in our healthcare I When and our help partner identified a sit

which charges have ensuring are with their primarily eValuator. Avelead, solutions bill. focused yet that construct our to comparing Today, long-standing flagship and enjoy Cerner coding of drive market envelope at Streamline, Streamline, a like-minded are we Cerner customers staff through Just and clinical we has complete claims RevID industry information, influencing to to with like an their leakage go through combination partners. a relationship like direct HER-agnostic, continue RevID Also on a partnerships our EHR before are with is to revenue to helped by solution ideal help we eliminates which accurate selling posted processed with information hospital's and growth leaders. our which complement

positive rolling this stages in solutions a cloud-based RevID, revenue of more for sure apprised than cycle. the ROI Beyond different utilized customers. early healthcare our in market Today, solutions and are our the additional XX will keep have over time. in portions are we And of you out services in progress a provider's we every for significant case, I'm delivered hospitals. team of our

I Tee's a combined Streamline bright join organizations. future Here for forces and at thrilled Avelead, see leadership are we to with under our

Now, Streamline to Marketing Sales to turn Salisbury, Randy I'd it like Health. at Chief and Officer over

Randy Salisbury

good of decision-making stated delays mostly healthcare and to elective as again portion fiscal uncertainty start financial eValuator began areas system have before quarter. but we're of near The last a Thank became the a we year. sold Carolina-based more beginning just again second been of revenue. a new tends that of quarter the in and to Many I'm that procedures of our grew. the some difficulties with been was hardest departmental to with in forced signing dealing substantial year the you, very not the receiving vaccinations prevalent fiscal a another variant we're And contract as Jawad cancel This of by final hospital lessen of report we million quarter novel topline is Delta people number these that with the and country term believed I the in which but suspend a signed initial coronavirus provider cases. delay of healthcare pleased the these this That approvals. welcome created now million to in eValuator contracts generate experiencing $X larger with which contract stages have their we was COVID factors approximately hit new said, high-profile third to providers eValuator $X.X North decision-making aboard.

second and some During we additions made quarter, sales teams. the marketing substantial our to

we with want hardships them customers more, support technology. coding through staffing, our As unique to and to continue our provide accurate experience for

was channel leader Lance instrumental very third and a Senior the is in as successful company Development. Vice senior eValuator strategic President Business Seach, added in helping some coding our second proven bringing of us note, During in space. joined the large quarter, to reseller we and experienced recent of He most leader, Lance of of third partner resellers the sign a and during eight. agreements. one month two our on total number August, new quarter, the the a that And partners

in During and added five we to pipeline the new the XX added eValuator second month partners our of more these prospects just quarter, August.

to primary is these signed to the opportunities represent partners many Our eValuator more drive activate forward going contracts. objective

improve the cycle Sales technologies region, hired Western also of provider great joined throughout salesperson for in Vice She can company States. of how the very President new discussed business our financial efforts because new last hospitals a And successful our revenue development We BDRs and representatives. Western we management with United two quarter's relationships or experienced our Regional a eValuator on addition performance. call, sales expanded development as she sees with help we

with introductory executives prospects and our and Sales. set throughout providers Regional Our contributing already in healthcare between cycle the the doors securing new leading management calls open appointments to country. Presidents and Vice department team is focus revenue Their of new conference are of members

the we're and making you excited tell, marketing area. sales in can very the As progress I'm about

lead validation turn CFO, reseller the Tom Tom? active will relationships help call our Gibson, accelerate is of will integrity an in I movement now more us sales. results and goal revenue financial hundreds to to to reach our second quarter's partners Our review to expand our with provider pre-bill industry over and large the detail.

Tom Gibson

quarter lower fiscal of services SaaS or quarter were during from was revenue second services the higher $X.X a revenue for $X.X offset in revenues significantly from increased and the software XXXX Revenue impacted licenses same Total revenue quarter year to the Randy. prior the the SaaS, audit and by with compared XX% period. million, year by professional you, quarter. Thank line million ago. during approximately

grew operating the stock development related higher primarily rates R&D lower to R&D non-recurring of $X.X compared of to Second higher for expenses prior quarter expenses. on The due being million with expenses XXXX. were million, higher amortization of $X.X operating compared expense transaction period. expenses, million quarter of to is compensation $X.X allocation of second capitalized year rates expenses and higher of a capitalization as software XXXX not $X.X development, the million

months second the from more on months will in capitalized XXXX transition of provide development previously the costs XX, X.X XXXX three compared July $X.X loss loss efforts the XXXX. respectively. as growth. a company quarter Loss had that with included three spending income amount Loss has was $X.X of million during on for associated $X.X continuing million XXXX totaled net million the the of for products This CARES loan. the quarter continuing July impact XX, forgiveness reported, development the of six and operations the of Act for an it's and of XXXX. $X.X XXXX first from million, ended As operations is of the our months fiscal fiscal Net to of second ended

from compared XX, of on income discontinued second $XX,XXX business Second operations the quarter quarter company's legacy of XXXX, from during XXXX. and was sold Adjusted ECM operations fiscal $XX,XXX closed of of for XXXX net loss of to fiscal February included income a the R&D the which of EBITDA related discontinued was XXXX to substantially loss to capitalization million fiscal of of quarter compared adjusted second million EBITDA the the of $X.X expenses. in rates lower EBITDA fiscal The $X.X of all lower first loss XXXX. adjusted an is quarter

company is of fiscal company continued fiscal with deal. we transaction ended hand the million million quarter had balance at remains cash million of second of term for of loan Subsequent uncertainty growth effects a Bank loan, guidance as focused close on terminated the the the due Bridge XXXX, had XX, on compared acquisition to of the position closing coronavirus. $X.X used continued which the novel The the XXXX, facility Moving Concurrently, in Inclusive term to The our $XX.X XXXX. existing the to sheet; SaaS approximately end time. not at cash of we the $XX finance balance from of July revolver new outstanding no to July XX, provide around to the on to of $X XXXX and company the $XX revenue. million approximately we the to we transaction Avelead. completed million expenses, closed the on year

a Currently, GAAP in include development of We for SaaS amortization XX% fiscal SaaS of expense. historical our margin are revenue gross targeting margins XXXX.

eValuator The the months our SaaS of XX% the and Given six the company historical second first amortization achieved Avelead. software XXXX, reached costs. of in margins. evaluating after of of we revenue company it's have development development forecast consolidated is yet gross gross margin quarter not volumes targeted adjusting In high our levels software amortization, with the for SaaS for excess and

Tee I for optimistic However, his QX now call or XXXX. the cash remarks. Green entity that That my generation concludes back it turn to Tee? combined comments. remains closing QX by reach will the will

Tee Green

Thank you, Tom.

to strategic new to team successfully I team in sustain entering we position leadership seize successful areas the of Streamline financial acquisition market Today, chapter. have revenue all focus healthcare performance, Avelead, company providers SaaS strong and help feel improve cycle and confident accomplishments of a our exciting our continuing opportunities technologies multiple With revenues that members and on management. across of a is their years' our growth to departments. worth talented of two

macro market continue Our to every the short eValuator the and the more integrity us I the with successes hampered impact of continues sharing and we focused RevID. on vision in by be pre-bill of what every Though to are revenue in come. somewhat forward of momentum be tools providers are understanding The overstated cannot like gain power to the day. term the day coronavirus, controlling to front at and winning can and that we we in look of in quarters our opportunity may you

Thank heartfelt Before we Streamline during work enable the begin time and of have to for hospital Streamline up and members serve. they support tools support contributions system your Their quality our ensure the support that they communities their and they to Q&A our resources and to for customers free care for hard perseverance need you vision. to provide for session, enormously I'd time. like to of all your Health the our and Avelead extend us challenging thanks my at team an

like the to call open Operator? Now, your up questions. I'd to

Operator

question Matt is of Hewitt question. Please your from first Group. proceed Craig-Hallum Our today Capital with Instructions] [Operator

Matt Hewitt

taking Good morning and the you thank questions. for

using initial of overlap? to not to opportunity First you've what curious one customers, thoughts eValuator them or about I'm a initial any there a bit and Do that's Avelead their for had me; opportunity the if both is are? feedback have cross-selling speak the whether And any little talk customer from you maybe with get on some platforms?

Tee Green

Jawad we they due And -- the weren't Hey didn't look well. ecstatic this. in talked start process, right, of we you Avelead to customers. and probably But wouldn't at let have I'll seem when as you one, [indiscernible] and Matt, Randy part diligence obviously, know, yes, we if done look Tee. when the it's you can that and jump

with out in been eValuator out key software the we they're So evolved organization pre-bill, and here side that's both the domain knowledge on not much technology I that's be. they're with a very But core exactly to developed started very tremendous on that's is of where as platforms pre-coding And cycle, is tremendous like built Avelead so started knowledge. RevID powerful eValuator, which domain at side it -- fits but it Jawad, consulting these post-coding -- revenue that really both the It from where they're right? has the think solutions. as with want

you're about to reference in Now, cross-selling; correct health say -- systems. XX

I yes, some using have And we And So mean, have the then the customer it's two eValuator are opportunities that RevID but both that's big the right? market, in base. vice a house. sides versa, of do different will

two grow. are that new but see companies continue them both now, and We So to to it's continue operating want certainly independently. the right of

So to of any on that? opine you Randy like or Jawad, would

Randy Salisbury

say great. This any is upsides I which just combined short to Randy. don't CHS; customers have Matt of the quickly, mean, I we is, believe I think of one is

have opportunity Jawad? We there.

Jawad Shaikh

I faster same think was customers us too. just a our the from And are kind on really of excited, and ability interest, the and better just things thing. more for Exactly, grow No. to do perspective, side. product twofold of going -- the the a lot as eValuator to then Avelead from kind say well, And on of the I

helping marry them can activity. we approach kind of with their holistic So a to pre-bill

Matt Hewitt

gears now I distribution add thoughts the or to up your Is That's to got partners. -- there at Or guess, Cerner then little a Avelead's distribution great. think then bring to And opportunity Having there? agreement? I partners bit are Streamline to what eValuator you're an Cerner. shifting and the eight

Tee Green

partners those on to partners want all with we of Obviously, first, that, post-code, Tee, right to the is to of platform But and time. leader cycle they've is job and right Well, RevID -- that see value introduce the introduced on like done see pre-bill, so Seach, part certainly we unique. to Lance team a -- revenue new development would again. the eValuator just eValuator. team be side, Randy business time. Avelead the this of tremendous that can bringing mix Cerner Great the question. pre-code, Saying our And we teams also eValuator at at all being the you the

And Cerner so going to is believe this attractive very to now. I be

Matt Hewitt

do not Fantastic. maybe some decisions. it's that Delta one had last way purchasing the that's spike like the continued across the you to our line. is people gets we're think sound like trigger you and in much maybe due It's we're and sign of doesn't two disappointing customers pipeline, as lost I do has diligence, pipeline to be this. the goal ultimately you. things, that the that will in just there contract? going one really throughout level, you appreciate it's that anyone say, those as ready think that we've to getting Is -- delaying okay, What we've think can, some more it learned micro -- your build one any What And we've we to from then, possibly you've to done to getting or or macro signed? lead contracts a Thank either excited,

Tee Green

then Randy. Tee to Yes, again is I'll this over turn it and

you number this says, weekend and give full health I guy in two this variant. are the was Delta with Tee, -- Day. people beds to he And have Just halls past at in waiting and our the we system a Labor completely over large

So it's I it's temporary there, a spike. real. it's mean,

Idaho care or in Coeur can you're I in Georgia. You d'Alene, look if -- don't

some it And in But there the going board, as starts can continue health pipeline you're their board, you timing is areas, grow. some get which fall we that's announced thought. we're is with that grow. with of It's in to departments. spike it the I that just dealing come this you're contracts But The dissipate in happen. out I to yesterday that more another seeing you're of our every Randy, day. exciting. great that to think across number got on system continues sending you to seeing, know, insight don't give legal through So to general, because backlog

So Randy?

Randy Salisbury

there, the I waiting looking they're right MSAs echo are would at that they're deals stages to get out that. Tee of volume that I that final the into approval. suggest, of Yes, them, would kind Matt, moving is were

a that company we they things the helps And win, the is of One we're to going more win. the from keep. the side macro more

or kind We are and or just them mistake. back our priorities eValuator a they're they're whether like ROI. victories So looking given multiple seeing in positive signed, up and helps we messaging these in to of prospects not make momentum marketing here pipeline going That at. keep us, be move that to have Cerner-based that direct all no to they tell providers, more you're hospital of the matters use selecting and and systems the list healthcare go priorities Epic-based the

Tee Green

because a of a they more every add don't thing It's conversion. losing. too, much forward, macro the side how Matt, they're And it's one Yes. you're talking to On know I'll about move not eValuator, money month, that, they not it. deinstall.

the advantage going contracts So to start going easiest and I they're first? system route have team that's real these our do think is sales to I has think when eValuator. a ROI What's to to going take health fall. biggest that's the

Matt Hewitt

Well, very Thank it. you that's very much. Got helpful.

Operator

is of Street question Capital Please your next Lake O'Neil proceed question. The Markets. Brooks from with

Brooks O'Neil

a significant, are you things you lot. there evaluated money the is merger possibility the your the probably Jawad, for I capability which going approached just sale that I'm secondly, by they're Streamline as the Tee company possibilities growth see think organization questions see there. down Good to morning, was are or I company of curious, you can guys. product bring obviously before aside And you from line enhance curious, all was as and curious, at then have from two. to the Jawad being road? looked your I'm and the Streamline. both or for your One set if things -- you Thanks in I here Good actually. team? Matthew

Jawad Shaikh

question. the for Thanks

really Our growth. about strategy was

the how were is we're One healthcare. to of Avelead problems faster in that going we to going for and at see solve grow, things we looking the how we're grow

at off we're still on decided do were acquisition during looking to were own. those through we through investment. go whether market. opportunities. say all But actually were So so that And we to when that, while we were and said, their kind we after team spoken something." Tee to to growth. of that We on back vision. urges for on relationship, really went we're market, shared we Streamline and "Hey, really interested and our and growing for again off-market market, We -- They in had on liked their conversations, came vision looked the those successfully or opportunities great us doing was for plans we growth built you We

was we the of primary move that forward. So factor how want to

Brooks O'Neil

All right, very Thank much. you great.

Operator

appears I this [Operator like Instructions] There back be questions Jacob turn closing to no remarks. for to at additional time. call would Goldberger to the

Jacob Goldberger

again, interest of you and support all, your Thank Health. Streamline for

or you any have December speaking performance. We all will discuss with information, contact look financial If to more you again we additional our at me jacob.goldberger@streamlinehealth.net. third please quarter questions forward in day. need when Good

Operator

concludes conference. This today's

You may for you time. participation. disconnect Thank this your your lines at

Streamline Health Solutions (STRM) 9 Sep 212021 Q2 Earnings call transcript