STRM - Earnings call transcript Q1 2022 | Streamline Health Solutions, Inc.

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Operator

Hello and welcome to the Streamline Health Solutions' First Quarter 2022 Earnings Conference Call. 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. It is now my pleasure to turn the floor over to Jacob Goldberger, Director of Investor Relations. ahead. go Please

Jacob Goldberger

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

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

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

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

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

income expense not of items measures. certain and are However, in included these

most differ To utilize may own another website in amounts to and over our non-GAAP Green, may Officer. www.streamlinehealth.net our earnings terms, on now Executive please their of from which release So those Tee GAAP entity refer these measures. measures turn would to to comparable reconciliation to at such calculating Chief non-GAAP for measures. the a call calculations compare the and these consistent President like I

Wyche Green

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

by followed Following will businesses and my CEO financial and updates Avelead President CFO of Solutions President Solutions from Stilwill, Tom Jawad Shaikh, update our giving on a their and remarks, CEO eValuator Gibson. be opening Ben of respective

of bookings. quarter first $X length with an opposed with were first million SaaS as million Beginning dollars outlier This first August This sale RevID. Automated our was made on with that, Avelead Charge Reconciliation performance acquired company's our is of $X.X from This best that to XX-year results in quarter contract XX, The reminder, Avelead's a As Cerner get completed be the date. of fiscal in will quarter XXXX which and agreement contracting included dollars their I’ll RevID agreement successful financial compared bookings directly GAAP new we SaaS clients. XXXX, XXXX historical highlighted the contract started. strong booking the agreement overview of for results a to our history. VAR was fiscal in by Cerner in Solution, a as industry-leading ended we With terms. the of the our our financial under terms with quarter bookings,

agreement However, typical quarterly still adjusting for three-year fiscal of bookings this our million single to $X we guidance first within quarter million of of XX-year XXXX. sit a agreement, $X the to for

continued of large may can’t this by signings are what seeing potential we While outcome are additional will predict to in be as impact when means upside maintain our and the $X XXXX. Overall, in million $X throughout fiscal and we on to in million We drive operating encouraged forward. our COVID’s going within lessens future acute expectation of success we that per contracts the like occur, average this care for improving bookings hospital performance magnitude quarter expect it periods. systems bookings other range conditions

Notably, million XXXX. results a XX% fiscal Moving $X.X XXX% months from XXXX period. XXX% the basis prior revenue the increase year for increased financial XX, SaaS now to QX revenue a for three consolidated our QX, fiscal or GAAP our grew million year-over-year. from ended On total revenue $X.X dollar was recurring April

is basis, despite our XXXX industry X% We experienced and have revenue this year-over-year difficult the and SaaS the Revenue bookings end from of of successfully sales fiscal grown forma has pro growth for revenue The by environment the the for lives. because forma a accelerate years our pro a QX to basis pro go the the on growth recurring On past timing company year. pandemic. prior year. dependent total revenues COVID-XX increased forma increased revenue of on X% two expects

to in of first fiscal $X.X of XXXX. EBITDA adjusted was quarter the loss adjusted EBITDA First $XXX,XXX of quarter loss compared million XXXX a

XX, Bridge to XXXX with acquisition debt hand a entered million million we loan Avelead. $X into cash on $XX April of had of we related Bank of the of to As which term subsequent with

and innovation the rapid progress remarks. driving continue only Our cap with of as will service clients his one eValuator its wins is Avelead leadership. existing about is with improve relationship during Tom stock. through our businesses. Both made CFO details has the maturing respective Jawad’s table provide new common class booking financials under the Gibson, remains clean significant to additional our prepared well. Cerner and rapidly eValuator their business and of functions Avelead and

past made have months its environment and eValuator’s sales and we to fee investments the professional in extend leadership to direct nine force reach the Over team.

turn eValuator’s In physicians. testing Officer, addition certain the and the inpatient Chief outpatient company industry the eValuator’s acute space, in is code veteran, leadership organizations for use Amy that health the Growth primarily now care for physician of investments new Under care to an Ben as Sebero, in to eValuator. update second I'll Ben? call to yield and Stilwill, begin the results of XXXX. the CEO regarding over and provide with we Ben these that now are will confident President, half

Ben Stilwill

while first concerns strides clients’ Tee data client to points the you, morning. including Thank industry-leading good address quarter, patient mix, we Solution changes pain with staff new of implemented eValuator’s provide volumes, to to service. innovate security. and eValuator was shortages, rapid our continued efforts rising In by features the defined making and into quarter case

billing recently three reporting the of pre-bill set. Additionally, beta basis critical first a addition eValuator our professional vendor provide using most and we all to modules, larger phase healthcare our coding a fee our for that practices physician centers. spectrum on offering. centralize for clients across We're entered outpatient notably, and allows to auditing advanced inpatient, It's a rule

contract. hospital pipeline growth size number larger of in contracts of each logos to ACD. and pipeline continues in sales eValuator historical are on than the in the of both unique average the our today Many see Our our $XXX,XXX

of prospect time the In improvement stages seen well on term. to reseller the growth in her have half in Tee effects And bookings in of the joined extensive the our already in as expect the year, sales fruition relationships short the bookings Sebero all and Amy to channel. growth expertise progress the deal noticeable comes us flow efforts partner our second been eValuator growth with mentioned, We discussion. year announced as has that and of combined As this industry a near believe we lead Amy meaningful as will impact our to access earlier as team transformation to of Solutions. accelerate has company with we've

During that of to work quarter are they backlog both clinical clients for of visits and began from well. prospects invites onsite as hospitals visiting the hospitals prospects we headwinds visits It's their and declined become through staff. facing clear the beginning a sign live promising has first our receiving professional and during differed are the Online shortage that backlogs and COVID pandemic. from projects their project a

required outcomes organizations eliminate will to achieve that Our Avelead. Jawad? include solutions Avelead, key now provide financial provides. We be software our Jawad I our to turn effort our the solutions to approaching believe these teams. services coding Shaikh CEO success the reduce will that President update healthcare the and audit business for a with and path combining software of successfully will call or over to with

Jawad Shaikh

you, Thank morning to all. and good Ben

we existing fiscal Since stated increased of contract early of signings. first quarter's their quarter then our solutions our As the facilities on to have eight client we in new several XXXX. milestone largest our last achieved call, usage

bear in executed EHR mentioned type strength was fruit. with we accentuates how earlier. nature development activities. to EHR recently in an scaling Tee Cerner an the Cerner The with meta for The EHR demonstrating the RevID Most continues that business of eight-hospital first system agnostic first with broad health based our Allows which agreement signings of Michigan partnership facility, our our

and innovation for components for lies the opportunities reminder, Avelead’s opportunity our with channel service through stage a XXXX the in future business, Cerner. to have expanding we further list the growth of improve With contracted our rapid footprint existing XXXX our of as partner So large clients, exhaustive growth. an setting that said, focus is in

and pipeline. RevID’s We client bookings to with build and client our in fiscal existing XXXX. proven and plan we our relationships sales Cerner revenue to have Within worked process successfully drive ROI leverage base to satisfied

our opening financial CFO, from both eValuator, call and within the the we over our opportunities partner to like Gibson, to I'll results COVID Tom? our turn in review Just direct now see Tom as retreats detail. impact more channels.

Tom Gibson

XXXX year. of XXX% revenue million, was increase attributable same to Avelead first comparable you, quarter ago. increased increase Jawad. $X.X SaaS a revenues on XXXX. a August XX, $X.X of last million year for XXX% period the Thank the over the Total the or compared were $X.X quarter of approximately acquisitions to fiscal the million of

was increase of prior the spend million spend its enhancements First can during remain sheet. $XXX,XXX. loss in XXXX of was the company months The cost these an quarter reformed pre-COVID nearly evaluation adjustment fiscal to totaled a be balance sales level. the and to compared during higher the in ended million operations full approximately non-routine the loss three XX, April XXXX continuing investments operating XX, in of period. million made of the year. The months This the year on sales Loss acquisition was of related to continuing Further, entire the acquisition included by $X.X ended and the liabilities XXXX operations a quarter the for compared the other its the ended related at up the that million $XXX,XXX increased adjusted quarter Avelead. income of quarter $X.X of from EBITDA EBITDA resumed critical increased April to adjusted Adjusted to first function quarter Avelead. Loss not levels XX, the months company innovation the $X.X of $XXX,XXX million company expenses EBITDA was from XXXX million set were loss utilized for ended to in a explained of primarily is innovation opening of Avelead acquisition travel XXXX. XX, impact for from several the expected compared The its direct April by for for to loss saw for deliver to XXXX. $X.X three April the by quarter was for of $X.X approximately income the $XXX,XXX and of and $XX,XXX first same operations the in three of investments result fiscal $X.X XXXX. continuing

acquisition million. The at Avelead million of acquisition will $XX.X April of paid million $XXX,XXX of had of cash the future close the of to additional position as the following the at required cash restricted value million company utilizing entered we date. paid Moving is $X of XX, stock each in and provide XXXX. There restricted closing are will term the on coronavirus the referred five-year dates is Subsequent related term present detailed the into earn $X.X estimate be $XX uncertainty acquisition, closing in the as in its us anniversaries beginning These XXXX. prevents the completed market to two stock $XX,XXX equates Avelead XX, the that repayment the monthly we healthcare at which valued closing. year the the loan to both on balance hand first consideration are no approximately million the providing common of out acquisition. the Bank. will to monthly and the XX anniversary close. These Bridge next the effects the and with of be liabilities on the the of amounts maintains sellers sheet acquisition approximately stock a required upon of company and an in novel year on cash, the guidance. compared following company of to that second balance The cash January the sheet, from are in liabilities million of $X.X of Under and the agreement, to $X.X to XXXX loan September

targeting to of in of per of The is for are revenue. SaaS Streamline quarter continued remains go well XXXX. on its $X million SaaS an company XXXX. focused achieve average $X We pace booking forward target bookings growth positioned TCV to million

continues Going strong with experienced company resume company to the forward sequential that to we through fiscal XXXX. most forecast growth SaaS consolidated revenue of Avelead. evaluate the its expect The

entity previous review. QX, on the I will Tee Tee? are remarks. call that combined Green concludes our back the closing now cash to turn noted by update generation As his XXXX. will optimistic for we That my reach

Wyche Green

Thank Tom. you,

Health’s and to for improve streams across the and value the been enable smooth the to has Streamline company innovation revenue into company. dedication and drive position and performance shareholder healthcare priority over and continue a leakage strength We significant providers recurring address our our and proactively taken and forward revenue to integration have financial remains long-term. partners Avelead The of healthcare to steps the major diversified to better family product deliver growth

and I'd Streamline support again and our to Q&A session, work Before like providing to their entire provide our care ensure support resources for you we to your all thank essential are they the Streamline hard for serve. up contributions us the communities free Their tools Thank begin and our all necessary to team quality and they the healthcare once for vision. have time dedication. clients of for Health

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

Operator

first Our Group. Capital is coming Thank from Hewitt Matt Craig-Hallum you. [Operator Instructions] today question from

Your line is now live.

Matt Hewitt

for a that pipeline? in taking said QX. questions a Good bookings on little outlier, seeing if or there, whether you're not wondering and provide of morning know longer an starting but average strong from was and and thank contract congratulations drove in you that Maybe could I the I'm color the a on contract and length on you the XX-year the length standpoint you what contract decision

Wyche Green

I'd the pushing the the with five-year, XX-year We’ve question. Matt, our for Hey out for thanks to Green, Yes see started Tee we're company and the way we for Jawad average. three XX home the comment we to been exciting taking as direct, of that's the months Maybe but run. years contracts Cerner think to will kind don't it's lot the see and years love those. of you long-term this? XX the do more on is -- a I But want obviously deals

Jawad Shaikh

can I add Yes some commentary.

the the picking too. that of to I Cerner back off just of of of kind think So partnership well as some and kind speaks agreements

larger Tee on piggyback get deal able think back advantages the a kind if to client Cerner, those as try to So a we we're like client with of behemoth deal a out this to signing that’s that's that some the case Cerner there's off signing the Cerner. jumping was they, of I XX-year of in but mentioned and more not obviously and of a are that, going norm, the things were

Matt Hewitt

new acquired opened And the become eValuator? any from an under mention just change you even That's priority a quite just anticipate Cerner, could you guess, is the that frankly management opportunity curious then Avelead opportunity great. greater Oracle relationship I'm if, there of I see were or they for maybe a what in and by or up

Wyche Green

well Cerner One things, remains we executive this from everything intact the and Oracle Matt. don't know in is Well, Tee, scheme know know. team grand I we they who that think, of are even the probably I but

the to on the on of will to and a relationship grow weeks just prosper. side few -- ago the Avelead side we Our Cerner team continue eValuator And the business. introduced the

anything the it that's changing take for relates we a will time, but So as don't new anticipate to process. acquisition. It us some

Matt Hewitt

potential it's maybe Obviously spending here little environment hospital it touched couple then been actually last like in a queue, had in existing and and starting It how appear may Understood one and improve past a limbo challenging you're your face-to-face. But and the customers a little I'm back kind progressing and sounds you to up year little of the bit. meet trapped are those to lot now a the you. been to be things able get hop you've environment bit? last and years. just one curious particular customers I'll had on bit Thank a be in but of with into contracts that over the opening of

Wyche Green

that's Yes, The back health travel I hospitals Tee inviting systems interesting thanks our -- are point Yes, right? and the spend is very again. our mean, data encouraging. in, Matt, an and so teams

to going and We have are -- point those for. up. starting to encouraging. back new asked see also being limbo we in I’d have line we contracts had contracts so of see legal and contracts a that and forth pick number starting to red of But we've that's in We're

the getting to across case that to That country anticipate are I would work. the systems So back that continues. that looks be health

Matt Hewitt

right, All you much. it. thank Got very

Wyche Green

Matt. you, Thank

Operator

you. Thank

Kyle is Lake from question Capital. Street coming from Bauser next Our

now Your live. line is

Kyle Bauser

a questions. much the for eValuator on the so Ben question Maybe ask Great, I'll business. taking thanks

So largely space in cash for their your time curious the claims? flow hospitals of claims associated course higher particular, meantime. the types the as there's been post on to non-COVID traditional in words, to will basis? that related been these of how I'm pre-bill a up, open kind the basis off within have manage clients, has In for opposed other of to on limits in COVID of but auditing a auditing the hiatus rate and claims started be bill But able kind there of a just has been COVID- kind with a claims

Ben Stilwill

a great that’s question. Yes,

in there that COVID in and improved differing and But cases auditors the now specialized and and that specialized it the claims a helping all to for we think big coder a and coder still ours the used got coming was we needing once we're I at live so the trained the able coders drastically or catching on pretty those away But the has spike on back was on demographics So is instead. as because and great early had that the felt taper part coders these getting flags that's do level that lot and saw they're get for of I'll education of, a been opposed most review basically, encounters, in that say we has catch present has a solution something catch the something that like -- rule. as learning see are obviously help there coders We like so a either off the rules basically lot we a to that we’re quickly it pretty of it coders kind to it’s of straightforward these finding the that get that's at to so see. right things haven't coding frankly itself yet. specialty still days the sort to

Kyle Bauser

efforts little maybe current a be et that. up, appreciate team bit more flow color Got transformation talk you the deal particular cetera. about of operations course and more a Can little the I granularity of around is bit provided to sales how and Ben transformation, And maybe is so forward? going increase growth a kind you sales helping Amy the the successful bit differences more the industry kind and and of little versus the to relationships, of key team it, new kind following about between the hiring just lead of before going in and

Ben Stilwill

Sure.

the think So there Amy been she's of lot what art selling. much organization. comes science and She's from and learn been successful there I very is a to able larger a around

our prevalence contracts sort at and monitor of importance are forward I pipe. think operations sure look the the later our of the the we look if opposed that the metrics that metric just to we sales based as account down on going based earlier at we of or and large marketing making

that I think as so is that's like and have they inbound what a as significant need and reps where she making impact the that. of sure making opportunities amount far things

experience sort that what obviously then our from that she works a of large just brings the organization connections knowing So organization. and and to

Kyle Bauser

certain Tee are it XXXX. Okay. cash that kind of really, like looks of a Can you I for generation during QX that. to reaching Tom, appreciate And maybe number? or lastly you fiscal able you anticipate revenue pin to

Wyche Green

ahead go Tom. Yes

Tom Gibson

Well, you, we're we our way it looking at Thank adjust can is, Tee. cost. the

We without have number. our on we able achieve are can our so revenue costs that and or we projected to that pull with triggers certain

Kyle Bauser

it. Got

the I’ll taking Okay, for for queue. all jump hey back in my thanks questions. and updates

Wyche Green

Kyle. Thanks

Operator

you. Thank

turn like our management of further over for end closing the reached floor comments. have question-and-answer to session to any or I’d and the We back

Jacob Goldberger

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

need speaking If again year with second fiscal discuss you financial We questions you jacob.goldberger@streamlinehealth.net. to please at quarter we information, forward free Good day. me any feel performance. more when look additional have or contact to all XXXX our

Operator

you. Thank today's does and conclude webcast. That teleconference

line disconnect a and this at day. have for your may wonderful thank We time today. your you participation You

Streamline Health Solutions (STRM) 9 Jun 222022 Q1 Earnings call transcript