Earnings call transcript Q4 2022

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

Operator

Greetings and welcome to the Streamline Health Fourth Quarter and Fiscal Year 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. A brief 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 introduce your host, Jacob Goldberger. sir. you, Thank

begin. You may

Jacob Goldberger

XX, for financial joining the corporate you ended for quarter us review of and January which results XXXX, for fiscal update Streamline and Thank year the XXXX. Health fourth Solutions

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

of the Gibson, Chairman Chief Board; me Financial Officer on Green, Executive President; today Officer. call Joining Ben Tee Stilwill, are Chief and the Tom and

on session. announcing today's our will conclusion does open remarks, the at If from financial of anyone it a for press you www.streamlinehealth.net the a participating At have numerous website retrieve we websites. question-and-answer call of not the full these today's call copy company's from or can prepared text results, release

we this information, Litigation that conference for how the of record to Before Private viewed. the and risks, factors statement: are therefore, the assumptions record considered may are which our on be We we as for with be submit clear earnings remarks, begin everyone with actual certain are cause prepared provided we those be XXXX. Statements the of today, meaning statements facts Securities want be uncertainties, historical forward-looking differ Act are should to materially subject within made of other all These may on to call following results calls, sure the from we could Reform not that discuss. to

with Form risks, and and for the SEC on Please refer and XX-K about with is Securities made which most factors. press information these to report, file U.S. filings more company's Commission, and other assumptions annual including the Exchange releases our uncertainties recent the

of on evaluating call Streamline statements Health are into made these obligation should this today. as commitment today. when is revise will we of or items such to presenting note, these As risks any any Please undertaking not management's publicly forward-looking we take account current topics discuss. the analysis always, Participants

adjusted help measures will performance. to EBITDA, such discuss into of these unaudited financial insight non-GAAP booked SaaS better financial acquisition call, and as to figures related provide measures ACV uses our today's we our On Management Avelead.

However, these measures, may these utilize own which non-GAAP certain included those another differ items are calculating not in calculations may entity income measures. expense of in their and so from

compare you to terms, at GAAP release www.streamlinehealth.net our if comparable these non-GAAP results So refer the such for to most measures consistent our please reconciliation on and of measures. website a earnings

Officer I the would Executive turn the over Green, now Board. call like and to of to Tee Chairman Chief

Wyche Green

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

will CFO, update; President, an update followed Following from sales financial my Stilwill, remarks, operations and opening by provide our Ben Tom Gibson.

reminder, a Avelead our XX, financial their on that in GAAP As August from included performance date. we results acquired will be XXXX, and

a beginning XXXX, of ended the With of $X of $XX.X $XX.X to with million our XX, overview. exceeding per quarter million of bookings products, average XXXX, The million, that, I'll January financial get of an of to XX-months $X for TCV $X.X contract per estimates value value in quarter. was which SaaS million total attributable contract total SaaS started, million totaled our

channel sales direct of built projects continued key Macro of to new our with our provide clients. conversion clients strong the products we've bookings hospital our to backlog credit associated to and the a is our success staffing and booking hinder Our value revenue. headwinds

fiscal million, million compared grew our to and XXXX. during $XX.X a However, revenue to improvement, we revenues the successfully XX% year, XX% $X.X SaaS total increased

well revenue, annualized we Booked began all metric, for XXXX, a recognized have reporting not value as implementing. that are into the which as being new SaaS been that bookings During is we agreements ACV, contract

January $XX.X XX, million, million as our $XX.X of target. of SaaS As million XX, previously as reported, $XX previously Booked to as exceeding January was XXXX, announced ACV compared

term our software balance achieve XXXX. our had less XX, sufficient cash XXXX, capitalized balance January million. adjusted is loan in positive believe was We $X.X sheet to $X.X million of on of cash development and fiscal EBITDA we on of As our the hand

have combined Avelead an eValuator We access liquidity X, and on operations through line November XXXX. We to credit. additional of our of non-formula $X million

expected. has Ben's process leadership, moved Under more integration quickly the than we

Our eValuator call Solutions share and Software selling Avelead common point.

which achieved significant redundant reduction elimination have integration, attributable $X.X million cost contractors. certain from the of We savings positions, X, other was to and executed the voluntary salaries XXXX, on November executive of of was and management

as models XXXX, anticipate business million that cost the We throughout $X.X realizing our had savings operating additional of compared separately. fiscal to

fiscal the to expect leading growth indicator continued the will of a after rate the and during ACV be to to strong second-half we incremental of ahead XXXX, run begin achieving the Looking margins that business come will revenue a of year. expansion Booked realize SaaS breakeven

from improved software. continued RevID; identified eValuator; growth and XXXX. Epic-based within to our no capitalized partner breakeven have facility logos for business existing our flagship less and relationships, channel an particular new corporate and key objectives leveraging solutions, performance both our Beyond They RevID EBITDA our utilizing achieving client in order, certain we in from a are, have adjusted existing

our believe contract Booked material is news. signature ACV each we continued that SaaS SaaS expand, revenues individual Please note, as to and no longer

confident keeping forward, apprised we forward. progress against remain contract significant corporate Going key prospects release in objectives will we unless individual committed of no our going press deem of them We longer to our significant. you growth We remain signings. bookings and our

and our are guarantee enough that success. not services part for products they macroeconomic is industry, Unfortunately, Our hospital our the facing the burdens today. to demand of client are for and answer

experiencing their high-priority potential which Our are in of impacts manifested effect hangover clients backlog a pandemic on operations, projects. from the COVID has continued a of hospital the

clearly care is been Our bill our which solutions, it and is we automated to and to our more believe to the clients the continue never are industry This to capture have today working impact bookings prebuilt enable communicating than for critical ensure they of accurately all hard our provided. team has our they will accelerate.

exit to SaaS stated fiscal goal our million XXXX maintain we with result, of Booked $XX a As ACV.

Ben over Mr. call President, to With turn Stilwill. I'd that, like to our the

Ben Stilwill

Thank you, Wyche.

As have their to integration the high Avelead and to, rapidly grateful team of all proceeded success. changing has to of teams, smoothly. a adapted and I'm eValuator And quickly level Wyche members, while service commitment maintaining to our alluded client who

at fuel Internally, out is the objectives Wyche long-term working laid growth. priorities, our and corporate will five towards the which annual Streamline support team

being new clients. first and five, The outcomes and RevID is for effectiveness growth; second, eValuator scaling through products; the RevID the eValuator client improvements; delivery enhanced the the compare our rules; service is increasing logo expanding to reach client usability enhancing technology of through our fourth and doubling compare third

on the system, revenue a for within cycle. study Health denial conversations client one increased remain a recently of physician published their XXX We need Our clients, focused and employs impact individual our XXX case for hospital which providers. rates University eValuator's bed Care, Cooper the automation of

case $X.X return found financial a The on impact investment. which Cooper's to selecting million also as translated reasons of eValuator, XX Cooper a for eValuator. times of confirmed of result their study use

In future addition to tool's and is the and the to team addition financial the able Their FTEs improve of outcomes. robust of insights to the justify Cooper to suite. impact, reporting organization team highlighted ease our leverage optimize and the use eValuator's results

positive staff we as highlighted we empowered for additional a to I results able by sales-related these our toward goals Said became like share differently, that automated work the believe center. organization the momentum net earlier. cost than the being a will found organization rather solutions provide

on architecture the improvements our primary suite. innovation, focus to Within our back-end RevID compare remains of and

us our enables We products burden effort to reduce will with RevID improve implementation ROI associated experience. recognize to the with improvements are user making and the those customer of the that and revenue generate associated implementations the earlier. Easing

to improvements expanding the well, We our overall, make solution making eValuator also effective. continue the system set incremental and rule to as more

client-centric are maintained develop our eValuator, effective higher should for some We into us steps has and help more taking in learning been initial techniques true within and generated incorporate eValuator roles are ROI market. to for service organization differentiator the machine us developed clients. a to our we for translate which a how The rules

As value maintaining staff education tools within never to of ensure bottleneck. Administrative our the of are especially solutions are for that client working We're teams searching solutions our providing. IT the and executive delayed implementation implementation within meetings well-supported. This timing quarterly understaffed, are hospitals we're that we to their actively are for I hard prospective above, the establish cadence highlighted monthly and clients has remains strained our departments. and

bookings efforts result branding Officer, well early established XXXX the Sebero, our refresh Chief clients. of year. SaaS to the shifts TCV in by and growth front, were received report the Growth above significant are our our Amy bookings growth which the palpable million On SaaS The $XX.X of in for million quarter. per $X our thrilled million fiscal XXXX, of TCV $X bookings to sales was structure, we The team average achievement of in our for expected was marketing fiscal

lead the to competing been or time past And contract hindered from has hospital spoken have that finally, the our we implementation products in signature clients. at revenue window about by the

For of eValuator, two has been in improving. this QX experienced XXXX. new go-lives We steadily

have revenue a fiscal in have impact basis early quarterly QX will XXXX. of more implementations for go-lives We meaningful These four a SaaS QX on XXXX slated recognized sequential in in XXXX. two and have new year-over-year on and

care Tom, service talented mission team growth the our turn of I provider and excited to strongly for associates they are and clients the will our are equals results to our all yield who healthcare to our over of thank provide. paid plus formula execute hard-working I for as to would very of our believe I'm tremendous ensure call Before like innovation to all supporting expand. all lead continue we us that that

Gibson. to With our over CFO, hand call Tom that, I'll the

Tom Gibson

Ben. Thank you,

As in that GAAP XXXX. Avelead August Tee of All included our mentioned date. we Avelead on opening from operations numbers remarks, reported in his XX, acquired are

owned numbers Avelead year assume the forma pro of that provide prior also period. the we beginning We from

ended $XX.X increased year total XXXX, XX% XX, the For to GAAP million. revenue January

compared For to XX, increase SaaS $X.X of acquisition of XX% XXXX. the revenue attributable to was the revenue grew in year fiscal XXXX, ended the Avelead. January million SaaS

year basis. fiscal actual XXXX revenue $XX.X $XX.X and forma was pro a and on for Total million million XXXX of

and have are IT will COVID. headwinds delays hangover contract long and our effect personnel projects, hospital clients. clients our accordingly, our timeline. from impacted these our shrinking a revenue. that backlog face impact We contracting headwinds know of how by process overcoming margins, impact These operating do Hospitals recognized been our not shortages We and significant implementation

of as contract $X.X unimplemented January SaaS is XX, million value of annual XXXX. our live

As respectively. the SaaS million million coming are $XX.X and implemented XXXX in strong for expense was the revenue quarters, our will XXXX fiscal investors operating growth. year these Total There contracts and $XX.X in see is $X.X $X.X expense fiscal amortization XXXX Avelead. increase and of totals. respectively million and is of operating of to attributable depreciation those $XX.X the million in acquisition million and XXXX year

loss of the and higher full fiscal the travel expenses as partial in year net compared with that The than higher fiscal XXXX. year XXXX a million and in million of of entertainment is a fiscal $X.X bonus loss Fiscal Avelead severance company $XX.X XXXX loss experienced year. of operations a net in to totaled The compared XXXX. previous result

net Avelead of income the $X.X of to Additionally, quarter loss fiscal $X.X a in and loan million adjustment. earn-out of XXXX of forgiveness related income included fourth each million from valuation acquisition

and Fiscal fiscal as the to EBITDA by loss of can Certain travel of a Avelead XXXX and million entertainment administrative such as year these loss compared have salaries for $X.X partial units. as of integration of investments a $X count fiscal in XXXX head the adjusted higher sales function bonuses our curtailed XXXX. fiscal year architecture in XXXX. with loss EBITDA of costs in eValuator fiscal due year been with performance upgraded in be compared the million compared an in costs and explained full EBITDA Avelead higher and of adjusted and technology, fiscal a Avelead was XXXX, operations XXXX to The

Moving balance to the sheet.

on the to in XXXX, direct XXXX, XX, XXXX. The January fourth of in registered of company of at cash $X.X As completed of $X.X hand January fiscal quarter million approximately $X.X million which we resulted a had XX, million. compared proceeds gross offering

anniversaries each the Avelead closing the acquisition to of of first date. two provide additional on XX-monthly consideration company agreement, Under the the is contracted

The XXXX. million these of of the stock. in approximately and fiscal $X quarter first restricted were using The was cash fourth $X made payment common million of paid payments of

second $X.X The in will estimated acquisition and is cash company's be sheet. The is payment pay it Of cash. valued as stock is earn-out approximately $X.X and this we the on also amount, will the balance sheet that at referred liability on in million. million to liability paid balance

in XXXX, the of or in close. term the $XX closing a required following $XXX,XXX is Avelead to Bridge into loan close. Subsequent of the acquisition with five-year second the the $XX,XXX monthly in Bank. term was required the we There no entered year loan year first million repayment following

our loan XX, was The balance million. term $X.X of of January as XXXX,

cash which Bridge we liquidity. development, line relationship draw recently to of capitalized positive have our million necessary. EBITDA adjusted expanded hand but on pleased our we a include this We is can $X with mentioned, if credit, a Tee achieve to less believe on Bank to excess As we that to additional sufficient software are

Wyche mentioned, for as as are have value stands being As as where an provides that ACV, an a for metric annualized ACV agreements client agreements new value. contract contract revenue, for that this contract not We implemented. client well we introduced to SaaS that value annual recognized into have figure refer our Booked annualized

subject of Implementations from is a client the or annual are ACV implementations. provide executed due competing be live after sometimes a our proxy for delayed system. to note recognizing the revenue revenue Please recognition We to contracts be SaaS and timed may revenue. signed of believe our implementation Booked all will projects contracts larger of if recognized timing as another that by

Our XX, XXXX, was million of as of SaaS not ACV $X.X Booked totaled implemented. ACV million Booked January $XX.X that and

The fully XXXX, SaaS rate $XX in on unimplemented. We business believe cost a company ACV Subsequent QX this staff SaaS our second fiscal and of would $X.X end we of incremental implemented to focused its recent level the of on this totaled XX%. I progress in We was Booked will of million XXXX. our XXXX, the which margins achieve achieved current of gross like bookings million, and remain $XX.X of half above continued made at realizing SaaS run March XXXX, their million. structure, breakeven overall have fiscal XXXX our as of XX, SaaS expect is we am success. proud revenue the have to of revenue. during of On revenue commend to I growth fiscal

closing That the I'll back Wyche? remarks. review. concludes turn his my now to Tee call Green for

Wyche Green

Thank Tom. you,

revenue care providers address revenue continue flow and alignment forward shareholder growth significant leakage recurring major enable We losing that The position over long-term. taken improve better or us for streams and and deliver near-term has steps cash health to performance financial without to value company growth momentum drive visibility proactively in the enabled have innovation. our to to to

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

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

Operator

Thank you.

from question-and-answer now Please Group. question Instructions] be Matt will We Hewitt your a session. first Capital question. [Operator Craig-Hallum Our comes with proceed conducting with

Matt Hewitt

selling in strong first the Good hoping Maybe on morning, to more gentlemen and bit was ‘XX. on congratulations the could up, we dig finish I environment. little a

You hangover headwinds the COVID. talked experienced about year, some of last that the from you

hospitals, volumes public to following some on the show are Tenet, staffing procedure improvement, particularly out side. coming for commentary the of The of HCA, appears suit? Some example,

we the what little how be thinking as those also in only context you're quickly about that Do How you abate for headwinds in improvements to you not expect will year contracting, of into the should implementations? that but translate think seeing? a bit And progresses? maybe do the that

Wyche Green

profitability the going a was we're right, great for about you're reports, then Tenet, you have side for comments. growth, out in other bankrupt. exceeding Yes, and pointed on the incredible excited the But ‘XX. But ‘XX example, projections year camp, hospitals the Matt, and exceeding. It right, of revenue Thanks here. like question Wyche and their you

system. the tale of the in So right, cities, two health it's care

stuff I now are know different That's their do and the -- through health lot now stretched right a through. dealing getting implementation contracts. to in environment. we're still go have can I the Their IT headwinds. in they're think -- little the health dealing and rates are that still They're so well, what financial still systems with think post-COVID these interest the having staffs do they're with with delayed. a still We I of systems and the still be

of all why need points So I and though, tailwinds more guess, more, they Streamline. to that, for

do half be all for to first So they going year. CFO's these things, that be the head Tee is the I back last of fighting fighting department. like in time time fighting of but the think for the still Counsel's in to for are half and of this good going It's then are year time the in -- office, office General

I Amy. And that's something incredible led than an so growth we One, just have to better by have we be others. team think

It exactly major can IT and staffing. of also is It they technology it implemented very but requires what staff our revenue, be issues little obviously, need. as their second, solves, But quickly. such

So Ben, to you want that? further on any opine

Ben Stilwill

it definitely Yes. and for head. Yes, can. finding automation hit our current on feeling the dollars prospective think need -- pipeline I clients they And are where you clients and just the

volumes margins that seen, but make sure improvement. there's struggling kind they're to as of So continued have still and improved we've

Matt Hewitt

follow-up that. That's really just helpful. And on maybe a

As far exiting Are you're pipeline that slower this seeing $XX would ACV feeling you to as concerned, SaaS maybe the million in confident moving year? expand? are albeit that Booked still maybe about pipeline through continue the things than where hope? is moving But you

Tom Gibson

through continues more significant expand I eValuator for quantity, is especially profile client pipeline ideal in side. quality. in what but would the of really determine to Streamline, trying analysis deals and the The We've Yes. say on historical gone to

ever ROI growing, but most impactful, eValuator can where the of for most of things pipeline who's Where to pipeline wish into So the it's details, could about lean growing is the of client? than largest that because we the of I -- the Matt, quality meaning more likely but you solutions? the not our the show sense. generate we some had of be the only I So if the makes pipeline believe that those the pipeline, it's exciting can are some we

Matt Hewitt

maybe you. one thank then last hop and back And one in I'll Yes, Absolutely. for the queue. me

As nice in far as quarter. a concerned, the gross uptick here fourth margins are

the plus that margins progress you as few about we then think margins XX% years? mentioned you gross maybe and you thinking on incremental look line the I ‘XX company for total as that a are how the SaaS on out should through But implementations. be

Wyche Green

give Tom let Difficulty] but I'll [Technical the details,

Tom Gibson

XX% of Yes, Thank cost of you, almost SaaS capitalized line Tee and about amortization. is software to is so development that Matt. hey, there related goods

normalized of on basis basis to cash with And cash XX% about, you're so a that volume. see on through kind had margin. a to around going And to we going expand that continue XX% a gross as

Matt Hewitt

much it. congratulations Got you the and again finish. strong Alright, very on thank

Wyche Green

bet. You

Operator

Our with Brooks question your next comes Markets. O'Neil with proceed Capital from Street Please Lake question.

Brooks O'Neil

Good I talking understand with be wanted I the what about sure just morning, you're sort of business. to everyone. non-implemented

think I the been Booked ACV not million $X.X you implemented. said has of

line revenue the in not that's yet. assume I So

Tom Gibson

if don't correct. Brooks, XXX% me how Tee, is mind you hey That doing? are answering, you

have You QX. are up may in go-lives two coming remarks four had early Ben's heard in that in that QX we and

And And eValuator XXXX. those going so being why that's deals growth revenue strong on in revenue into about see on that start that revenue you're line. to recognized we the talk

Brooks O'Neil

great. That's Yes.

be the those though, Now we delays on still I'm there's going to new headwinds contracts, as some with book assuming well. as out implementation there,

and it's contracts, about of catching implementation revenue a way sort but in past of So in implementing contract that and shorter the to the put going bucket up be Is not contracts process necessarily think it? recognition. this time signing continuous of between putting terms to this right -- more --

Tom Gibson

off? Tee, you me to start want

Wyche Green

follow-up. it. I'll Yes, Go ahead with soon go ahead.

Tom Gibson

Yes. Thanks.

with that shorter, seeing a am especially So lot Brooks, I what delay is eValuator. getting

Brooks O'Neil

Yes. exactly. That's

Tom Gibson

on RevID, heavily we're following thing With whether a or client-by-client it depends Cerner it's not. and

but lot plan tell side a shorter, With would not as you're eValuator making on the you, as RevID, Tee? shorter. that we on getting far So timing. seeing yet it's I there it the

Wyche Green

you it. Nothing further. No, -- that's

Brooks O'Neil

always comments? to That's the that was you was positioning of, whatnot. like that I If I And because thought to to, resonating to one automation hearing properly? a up cycle I these past, carefully be market that enable systems me may picking the I revenue hospitals. with kind in avoid then hospital Okay. great. and with to subtle am might pre-bill be and over-reading in on more. it today disallowed just listening the going there coming let me of Or try Am terms revenue was guys I in shift of focus sounded was ask are the think I But the into you the better say your I

Tom Gibson

over-reading be just might You a bit, Brooks.

on pre-bill focused operations. are We absolutely

We are leader pre-bill operations. in the

In side are exist system? questions maybe should. right fact, That doesn't will we're now ask beginning jokingly. this we the that say it pre-bill health the who's vice position of systems, in industry. in -- I the president health the leader for the to we but And of

But pre-bill a around it And so, read into the evolves all on well, no, maybe you further little automation side. but it. as

Brooks O'Neil

Yes.

I get that. Okay.

integration understand Let ultimately that thing. you on the down time through? of ask something that a Or with for integration slows mentioned period one with going Cerner, what's kind on a me is last Is going Cerner. side to you? for of Help guys following get they just Oracle. be Tom just the that to until their with me that obviously, positive

Tom Gibson

lot at we we all. really Cerner, strategy, Well, that's Oracle that Oracle something of don't a Oracles that the insight that, influence right? don't have I So just -- -- into

QBR you Cerner the pre-bill about relates been when that initiatives, as the I care you have with hasn't And part and look at more they've team health So excited eValuator at RevIDs coming of the in not. Oracle strategy and has what out it can Cerner changed. say do Cerner eValuator of would look fact, gotten to plan and already

the good -- don't us. and side I is of pre-bill Cerner the that's accelerating for strategy So

Brooks O'Neil

my taking questions. for you Thank Great. very much

Wyche Green

Thank you.

Operator

at like turn questions the now for Jacob to over further I floor this Goldberger time. to no comments. back would are There closing

Jacob Goldberger

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

when -- more Thank We you any at and you. contact need have we discuss quarter you additional our jacob.goldberger@streamlinehealth.net. questions please me first or financial again If ‘XX with look forward performance. information, speaking to

Operator

conference. today's concludes This

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

Streamline Health Solutions (STRM) 27 Apr 232022 Q4 Earnings call transcript