EGOV - Earnings call transcript Q2 2018

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Operator

Please good day, and welcome to the NIC 2018 Second Quarter Earnings Announcement. Today’s conference is being recorded. At this time, I would like to turn the conference over to Angela Davied. Please go ahead.

Angela Davied

Thank you, Operator. welcome second and earnings everyone, afternoon, to quarter NIC’s call. Good quarter release announcement for press XXXX NIC’s ago. The minutes second earnings XX was issued website release on earnings also at corporate our egov.com/investor-relations. And is our available

our headquarters to as information this part You may our Also, also at and e-mail you. sharing we are we webcast. XXX-XXX-XXXX quarter, of the will slides call

to our website of I So, IR the encourage everyone to page view go them. online to

statements are to Knapp; Chief XXXX and objectives renewals, business operating effective statement length made results, to the company’s statements this the and expected company’s that assumptions cautionary tax relating relating which year Kovzan, the regarding fiscal of information, include financial Operating new future our Officer, regarding Officer of Herington, constitute including facts to statements relating Robert statements for expected rate contract repurchases do questions. the not law acquisitions changes, and future and Financial expected remarks. potential based. reading the events, during Chief estimates, of or Any Following relating prepared projections, current historical statements Then, call to statements. the Steve the possible open the potential CEO, and NIC’s and potential effect These for plans, forward-looking forward-looking deliver contracts terms, statements other dividends statements statements or tax possible those to Harry potential will company’s share relate upon performance we’ll

to differ partners, the statements. regional or social and business, which conditions, are the part, of the whole to based and competitive, renew sign in Forward-looking rights include risks current existing that its termination from including and and on uncertainties, forward-looking to in economic, various cause ability market to results company statements of to incidents. of may contracts the subject company risks contracts and national and successfully identify the company’s political, states process acquired expectations to assumptions under candidates expected for and as These procurement government security and actual are materially permitted during acquire taxes subject measurement data one-year law. agencies, any period local amounts XXXX acquisition ability well outcome the to as and to the statements tax possible applicable effective the adjustments suitable regarding related integrate reflect new with rate Any provisional federal, our risk businesses,

You rely only or of such from a should results discussion any materially guarantee forward-looking differ statement about Sections These of at that and cause Caution on and of is of Chairman new call uncertainties during we no at introduce and speak statements it Any publicly this statements this Board. or NIC’s result website required forward-looking pleasure obligation any to a now, events made whether except of or sec.gov. future. A and with not as to update date And otherwise. are Risk prediction as Herington, statements could Executive call, actual applicable detailed most the may the undertake revise included filed Chief risks to law, the recent be Forward-Looking and filings the of titled About Factors Statements the the SEC’s information, is as available XX-K in Harry forward-looking the SEC. forward-looking company’s XX-Q Forms future as my events Officer by

Harry Herington

Angela. quarter Welcome call. earnings our second you, Thank to

been we’ve recreation permitting. shared enterprise licensing healthcare, markets I Meeting, Stockholder and Annual with about of making vertical in our outdoor the you During the investments and

to prescription offer system expertise leveraging privately the the flagship years, which in we of approach by strengthens solutions have RxGov. PDMP extensive re-imagined including our and NIC developed earlier suite PDMP practices platform. company monitoring completely announced for we IT Orbit, best would Wisconsin, expertise. assets, software healthcare the with and exciting to a recalling Maryland-based today, our our and drug held development This We over is we Leap be As the of systems, from the healthcare are RxOrbit acquired an state developed NIC

continue query country. to die territory Disease authorized XX access overdose such for Today, epidemic every centres D.C. Guam the and and and U.S. pharmacists this every doctors, day from According We about states of Control, the creation operation have XX providers, Washington, PDMP PDMP, approximately lost XX day of in as the have and prescription in the to nurses opioid an states, involving a opioids. requiring mandatory data. people laws hear

systems common systems the by legacy Although Changes state In hear used addresses make, all a were a already integrate significant expensive is not RxGov delivery. well for these includes challenges. and legacy data record data it are and frustrations platform electronic box PDMP of are PDMP is healthcare addresses that to that do and complete the systems needs professionals. hospitals health data. with comprehensive processing scalable It to black place, and marketplace, are in market potential. there they we see of

alerts a One functionality, the opioid opioids, record of with concerns RxGov a biggest patient’s is to prescriptions prescription patient data known patient-matching they EHRs. name, portal. need nicknames, of the industry cetera, point-of-sale professionals full allowed. to to more workflow patients is systems, are EHR interface. name, to unique RxGov’s uses meaning single into a patient’s embedded substance into match healthcare the et algorithm addicted main patterns. seamlessly detect PDMP the doctor the record. as can quickly or health electronic log With learning and than a epidemic are pharmacy’s into Controlled There a shopping, separate directly get no with inappropriate prescribing integrates this trying in machine

deploy a other of The for is responsible the for boards to environment, the provides also RxGov a Microsoft prescription in drug and and cloud in a managing of of state’s platform-as-a-service, not allowing days, strong from completely minimum is at addition, months, the solution quickly scalability, government program. monitoring us matter RxGov cloud-based RxGov a pharmacy, We and cost. platform data provide best-in-class easy this pharmacy system on an as believe for your infinite directors, availability migration Medicaid In a superior behalf legacy agencies of security. is health,

We Rogers, Business And to health largest opportunities. came of from electronic software. Development, Senior as the recall, you provider are us of actively Doug our record nation’s may sales Cerner, Vice pursuing President

So extensive internal market on we with for this knowledge have what solution. the of type is looking

roadmap I’ll to bring addition, choice, financial well will NIC. Orbit efforts we’ve the RxGov I’m a and saying, potential, excited the In and wrap Leap a the in cover share some will input suite. of business the growth In affordability with for about to entered as moment, details relationship and market with continue for development into strategic Robert to future RxGov about as very product more assisting by of forward Steve the leveraging up potential the flexibility look its marketplace acquisition. to asset But the providing

to Texas. on Moving

the Texas shared past, continues. end time, to State with contract contracts we’ve decision procurement award its process informed directly was of at DIRs of to of expires to time, portal in the the At Deloitte. with cited August. operations, the and Director. May, procurement As current of protest department, Last denied submitted protest we In decision. At quarter, Executive and this await we of this Resources decision relating initially the decision. Department of award In to and the by Information to Texas we contract you, process our have we a development flaws then services appealed the our continue procurement protest the award the and maintenance protest, we a

member. of core this long-time who Moving developments part board a on has the been of and one individual, to One more NIC, company’s quarter. internal Ross Hartley, focus is co-founders

Information announced, Ross, new and a Directors, us Officer the I the for Scott. automotive technology for currently of and under Information NIC, the led our Ross’s from VMware As serves served is with and past, the Motors. and also and infrastructure, and operations Tony we all and of Tesla, Privacy and great the silicon-based Chief an Officer Systems and the teams to for Information Prior at dedication at Officer was Tekion, for network, retail the Ross of Executive business Obama. Walt In Senior thank that development former including at Officer security. first Boggs. company’s Jay board in global we industry. technology previously group was you CIO States to a welcome XXXX at Board Chief and guidance. Cybersecurity He Company will of from has his June. is product as is also the this organization Currently, Advisor retired the and Oracle. for XXXX global Tony Jay applications, at systems, retirement, Chief Technology was Patton the members of led company He Founder CIO and from product and Vijayan the Tesla your Tesla Squire Tony corporate his Chief United innovative-served responsible Barack to he to firm President the wisdom applications Services information his Data board led company. Microsoft information as two deal for the IT company, General Disney With VMware, served miss done for law Jay

ground Chief as provides Officer, the today a member Officer for of Officer, to join technology team. NIC. not She promoting our amazing additional industry also to Holland. advancing executive of focus two community Operating and Mean lot with Jayne. programming gentlemen Robert NIC’s was That the City technology Security into as well and recently team a that, proud of Security and will Last, certainly a both one the Women the very built by company’s of She unique young With to She women our for and Chief I backgrounds as in Chief Directors. other initiatives passion have they of forward and perfectly. today, Jayne our operations. for and in up as friend. but help the time perspective such I on Room will her as organization leaders done is our bring the Cybersecurity. over I We Who Jayne executive mentor look their resources Jayne to her education congratulating to insights Knapp, guidance honored leading Kansas close will at NIC by class one stellar I’m department Corporate describes STEM Board Friedland the strategy fortunate are our as Security and has of members dedicates the girls. to with Business the have in from experts and an of least, our innovation Robert? working Both has XXXX Congratulations, call them. as to Business. turn a

Robert Knapp

Harry. you, Thank

developments across are advancing of that we quarter operations our government second the During digital XXXX, country. in some had great the

and a first, better there for second, in can software Harry and have within want partners. well to expressed segmented or what XX place, existing market states At we an and opportunity our policymakers; Broadly said PDMP speaking, and providers. type interest industry soon that choice, considerable whose The I and two some has several state as the replacing the state solution Harry primary partner PDMP prospective level, asking of components: contracts hospitals states echo RxGov. enhancing or states, First, with into aware market with their there are agencies about systems. of been and are mentioned, as healthcare expire be in as is

the these contracts over have PDPM XXX,XXX with care the non-federal are three of our In contracts partner and approximately states next in states. outside acute United years. of up with beds. X,XXX partner level, are staffed portal our PDMP existing States hospitals the currently At rebid approximately healthcare contracts provider there fact, for hospital These XX

improved integrates believe within patients’ PDMP we as well an as records government and there market facilities, opportunities easily system significant are their other again, solution to that healthcare provide So hospitals software. a for launch

in are the ideal addition, at an we In point inflection also market.

centers strong momentum am say, Needless on month June a the that to issued or for to pay the federal would provide upgrades Medicare consider legacy I replacements, for for the replacement of or Centers of Pass government partners new to, XX%. services, Your enhancement to now Just Also, countries. the pass will systems. PDMP our state quarter, on Now. States states in over across match Medicaid XX, state through XX% development, would Medicare form with remaining We the systems. this a Directors, fund share Medicaid the during and and we and excited from this to reimagined a Medicaid the ago, federal solution, of PDMP digital government XX/XX the Services letter to and the believe our is park continued solution stating available of Federal complete our officials build a incentive of solution, funding for

pleased parks on platform: most discussed, the Glacier, now United three of Pass States. parks, we addition at and Now are iconic passes the very destinations Grand largest Yosemite. national offering previously have selling are Canyon of Your the of convenience some I we national In to the am the the in

we city The believe welcome In the to is Now many this recently of addition, We solution there expanded beyond Eureka are tickets state now using of Pass platform. to tram tours. Eureka to the opportunities Arkansas, sell parks, historic to lands. Springs, to and municipalities and solution federal Springs expand this Your City we the city’s

Supreme appeal is incumbent U.S. over. court’s protest do so. to finally arena, The and on federal positive another chosen final window to to one-stop one to development decision procurement regarding by the the Court the has not Moving recreation in incumbent has the the vendor the XX-day

We our has Hamilton to been As arm the arm up between currently path, we contract in Allen expanded contribute with Congress. ramped estimate we business of NIC and partners solution previously fully in $X Library and rec.gov the of million transaction-based to new is revenue $X Booz our also million October. annually. this launch federal discussed, down government Continuing the to rec.gov our working with team will

shared managed Board. about built for we past in the system the We have e-filing the and Royalty Copyright with you

viewed will will over We of make greatly be the including constituents. easily a these fee the records. be Congress to fixed will months, of XX more next service us allow Library one-time enhancements digitization records searched Copyright enhancing now pay The and XX online, Board’s $XXX,XXX delivering paper than to for system This the of enhancements. system the the to

completed, both continue states more more application, links launched of GovXGo to we to voter list events. convenient action for place for vote, elections. general GovXGo an primary citizens alert our with solution election registration upcoming a to prompts in plus on, and recently updates on GovXGo voter solutions the the actionable them platform. user’s as on citizen-centric Commonwealth the registration then timeline Moving Pennsylvania a

us We with chatbot several The also close everything report information growing questions which than XXX to launch as chatbot, from office how to finally, Kay. like to trafficking. answers who today referred taking the two Agent partners, extended human into latest construct their with would The Arkansas, Rhode daily, by the XXXX across us. contract of contracts to Kansas XXXX. options extended is continued to on state to state states launch State And locations sharing year. provides for I with chatbots remaining. Island, you have contract the through renewal Wisconsin its with and with the country, a converted more extended The And with more Hawaii, five they agreements of Nebraska, one-year to of one extensions and Maine us Idaho, a their the through of its one-year State end three-year May all renewal,

We just our one-year service. option our exercised Idaho, Board, Library mentioned, you extending of and Hawaii, Wisconsin, Steve with to look the Chief launching contracts the call forward I’ll the new, future. your for Library innovative And value solutions NIC’s with Officer. to partnership over our ECRB partners Island, Copyright the In Rhode which maintain Arkansas, to Thank continue for of to Nebraska, turn that, team I the Maine Financial to in Kovzan, Royalty the Congress us. addition, and in Congress second

Steve Kovzan

X% the call. quarter and results We earning of had Thanks, financial prior everyone revenues per share a compared quarter. afternoon Robert, total Core $X.XX of $X.XX on XXXX, year registration the vehicle quarter, XX% mainly good in second revenues quarter IGS price and same-state increased Same-state renewals, with volumes same-state revenues up motor by of were to for driven state due revenues State to include by of across $XX.X states. to from portal finally, several projects and others. software the transactional the the transactional prior-year among business in for filings increased quarter, development components some deployed such quarter, for revenues revenue the drivers’ services, Breaking million, $XX.X XX% one X% over grew of And down Maine healthy states. X% new same-state quarter. quarter increase the a the and motor across inspections, for of our growth several Total the X% revenues core vehicle an quarter. a primarily driven increase DHR as portal over same-state this growth, higher up XXXX, second strong license million,

to contributing to as XX% from the growth, quarterly Illinois, deliver prior-year newest continue in the same-state Second our million, quarter also operating $XX.X $XXX,XXX portal included licensing XX% on increase income the margin we enterprise for by in revenues to to quarter operating our XX% platform. in and quarter. income portal revenue increased approximately Driven permitting strong the partnership from

the of Finally, the for in rate law our quarter, by the the the driven tax changes. prior-year tax down from effective was XX%, quarter, effects XX% favorable recent

technology, As to additional million RxOrbit under for We were in the price upfront agreement anticipate million, that with form expenses $X.X earnings acquisition subcontract and purchase paid of with approximately and the of price consisted asset of of million installments, be acquisition be certain in operating payment the equal an two met. dilutive $X year support. $X.X purchase a for of relationship an Leap milestones the in ongoing incremental and the amortization currently modestly intangible technical will the Orbit this mainly XXXX PDMP approximately to

amortized remains call I’ll our assets three-year that, to However, asset unchanged. The the a Harry. be arising with EPS from And over the guidance intangible XXXX turn will period. purchase over back

Harry Herington

about excited our PDMP the produced The among probably Steve. you, I’m remarks for second With future. financial developments results the creative deploy capital and quarter we XXXX to as in reimagined from can other tell channels you of of incredibly solutions, continue growth to in for solid in business today, to position hard Thank my that, our surplus call ways quarter, we’ll NIC as the questions. operator, now open new this work RxGov

Operator

And Instructions]. [Operator Loop to we’ll with Joseph first go Vafi you. Thank Capital.

Joseph Vafi

Hey guys, acquisition. this good here Congrats afternoon. on

– this have And help from follow-up. be of And get the any just commentary this smaller think on a idea us – quick Was a larger probably it on the Just M&A great is Obviously, front. to acquisition side. for a step you great the have also deals? one first on here. wondering if your looks maybe how then Thanks. I appetite I an pipeline is

Harry Herington

Absolutely, Harry. quick. and Real you. thank is This

about acquisition. excited this asset We’re technology

with we’ve doing PDMP been going the think to assist really what I in it’s market.

appetite as we’ve far stated As times. for acquisitions, numerous

for right We’re constantly the looking one.

We have that actually – recent our Annual pursued several, the those mentioned I Stockholder at Meeting.

some And we’re the overly to make that and to the going chase look to only those dollars. million not we’re only [ph] that are priced. several that hundred going to make going tune of sense, But at acquisitions

Joseph Vafi

and Okay. vendors explosion they how maybe to and enough. positive potentially high change and that your [Technical business to of you Fair the, like move just new today the to – your also, as hosted or solutions third-party and Azure, it into we kind the see And when does negative Hello? what from Difficulty] lot. technologies customers, Amazon model a the in how fit Thanks is they at a level, talk of, of forward? cloud

Operator

reconnected. has And [Operator Davied Instructions] Angela

Harry Herington

I Sorry. This comments, everyone is as I was I accidentally to bumped finishing disconnected the my it. and phone Harry. And apologize

question? had – Operator apologize do another you I that. Joe, think I for So,

Joseph Vafi

more future. as positives your real and are and in of to to just, to just they’re third-party I and adoption and starting your the Thanks. use, talk you vendors was exists and that and cloud Yes. business it Azure to AWS, they perhaps, negatives adopt more, some today – Harry what these wondering the like quick, as clients,

Harry Herington

very something on about. it’s That’s a are for we that is working computing been one excited and that The we’ve years. great cloud question,

I several in think had cloud, were business had mentioned years we partners. we ago, doing the private we multiple a which with

we became cloud the have out out would up there. that government Microsoft our cloud, Amazon both government As expanding have and more be services comfortable with the more there cloud, and or traditional started just the

things standpoint concerns, that phenomenal that tools course, There, concerns’ job biggest One that’s they had changes is and leveraging. one have there – privacy. the is that history their dealing we’re more. working to is there cost and should And of of to that have there a on use a regulatory the privacy, of you on. comfortable. data lot getting more see part security and get a can you’re past tremendous more a And comes I towards in that with when it we time, done lot they’ve at is are cloud-based. share of that government, let is them a the of flow, that, savings how things back one from is that same and done the At was everybody that that how with occur positive. would a the we’re I’d and security Robert issues working with to

Robert Knapp

this The XX/X in Robert. becomes comes make critical when might the transactions, process availability Joe, cloud strength across only governments comment with is are, obviously, a I Yes, issue. obviously, a country, to is, trying availability, the we for – the added and

that so level a of services in as strength enhanced deploy the we cloud. to And adds them

Joseph Vafi

much Thanks for color. very the

Harry Herington

Absolutely. Thank you.

Operator

John next we’ll And to with Stephens. Campbell go

John Campbell

sounds well forward. board the you Hi new moving the the guys like and guys, are congrats deal on additions. quarter, two It

Harry Herington

Thanks, John.

John Campbell

on the is in you possible tell If going that, touch you the happened guys time maybe what successful, there. of But guys one? aren’t speak the are what a lost? high in protest, level, Is On at guys last I to you it that if know you can can’t what outcomes? the win the Florida protested back Texas us you’ve range to could details you protest

Harry Herington

in a Texas. procurement. could say would careful what I is a probably range I That’s question, solutions broad consider. It state are there of say will I very that active be an extremely in and would

[indiscernible] in do consider is not that to what to the Director trust One Department of of with evaluate out be awarded putting the hopefully, Florida, and solution come procurement we will appropriately time other the as know, would could other, we one that. with, we the get you, you that, have as we soon will I it do communicate the canceling that’s be Executive and is, protested right only protested, I back and as on way organizations the I back reasonable. with there. to Information successful, protest had ended itself them the not everything other That the see One out entire department and there it. contract say we awarded then away would up restructured what – us. was they they as they that awarded, that contract clarity did particular, I What or In the feel, and bid. the with eliminating Resources and tell would I only

that So State reasons and not that why years, it would where at the them rebid that’s a was like a attempted to contract well. serve ours Florida has, point, to time over back the one of get of the

John Campbell

$X than then portal the revenue it million about Okay, million And there. how seems on of to right? rec.gov, I maybe, think assuming probably, thanks. Steve, guys should the And on the like margin I’m mean about higher – a state a coming Is margins in contributions. are to you rev. $X there? that we that’s go ready

Steve Kovzan

are how guess is say would I I this. John, what you?

kind staffed a $X.X rate, We rate full, of, are run annual a currently now run expense at about fully million.

kind give of, feel that. $X reasonable estimates a would our revenue general Hopefully, you that the $X million should, million offset we’re with and standpoint, so somewhat conservative to obviously, from so being there. And a

John Campbell

many the have $X.X cost you how been helpful. carrying there, rec.gov? And quarters that million you’ve carried of That’s Okay. for then

Steve Kovzan

say not several staffed Three would it’s four that. that we’ve for is My full quarters. Oh, more than now. I or two fully at been quarters, been least if guess

John Campbell

great. Okay, guys. Thanks

Steve Kovzan

Thank you.

Operator

Heckmann next And go Davidson. to Peter Instructions]. we’ll with [Operator

Peter Heckmann

Good afternoon, everyone.

know with or XXst it’s into but protest Texas, the ongoing future the the With potentially until will – exploration the is transfer sensitive, delay and the that August of protest resolved? in extend I the very effectively

Harry Herington

this now, to forward contract. is Pete, Right we according the Harry. Hey, No. proceeding are

our frustration We this. our are of trying allowing we’re partner be. or throughout with be procurement the way by best need not in contract terms, contractually can all where our And serious we get concerns to we the of to

– teams contract. of doing the partnering not there what’s teams by proud and right our Our I’m very

Peter Heckmann

Okay.

expires they whether don’t Okay. And end guess, short-term? in of I month, prescreening then you which there on they us federal of thoughts up contracts. us as application, regards the the we procurement any at have may with can Are FMCSA have give against the non-renew of thoughts do or Give terms where there, to rebid? they a because lot some experience to would any extend hauls this a

Robert Knapp

the But Yes, of, we in, Pete. This an with is FMCSA Robert; that expect some, process. I’ll extension Obviously, breaking to fully have RFP still news. six-month proceed kind literally late a to jump in future. we received, today,

work like that required to for FMCSA, that’ll, prepare the RFP So continue what a to they – doing have issue. they’re

Peter Heckmann

it. Got

$X be pretty could fully two starting or just that million how And the could the $X could how there more conservative And estimating drive marketing to volumes is Is that of more loaded? be potentially that That’s based you three of incumbent is kind Okay. very one-stop, are helpful. upside? a application? revenue? be more point, rec the write? applications I appreciate Would that. million just Because there one follow-up Yet from you there on penetration? on to

Harry Herington

Pete. Hi,

which more to reasonable So with and I have expectations historical the just going some to that. we’re historically successful would generally part are speaking, certainly is primarily. contract, on based been and our be But adoption, this provide service, estimate if than under Booz we’re say, and Hamilton what for growing services on we’re initial and try trying more to again, perhaps volume service. with of teeming upside then, could our to in Allen Booz, doing drive there best driving the is be volumes usage more we usage with Certainly, teeming

Peter Heckmann

for it immediately Okay, of kind launches that thank run you again in October? rate once

Harry Herington

of say type weakest kind the year, this October, seasonally the I this service of the had the four during generally one that, the I of, quarters it’s in if I guess guess, with fourth is quarter, probably cold speaking, of would Well, to seasonally I think or weakest. in it’s probably,

run run So we’ll period I’m that get expecting what think over that’s of immediately. we’re generally But I that that basis. the the sure to year, the annual if is an on not rate rate

Peter Heckmann

Thanks. Okay, that’s helpful.

Harry Herington

Thanks Pete.

Operator

to And Gary Prestopino with Barrington next Research. we’ll go

Gary Prestopino

Hey good afternoon, everyone.

Harry Herington

Hi, Gary.

Gary Prestopino

This RxGov product that you want.

all, that six of basis? XXXX, is that that just is the or million it own is amortization, an on in of annualized First you Steve, for months $X that

Steve Kovzan

Good Gary. question,

million with of have continue split So, some a to costs we that we’re year this Leap of ongoing maintain staffing to $X time. agreement period equally an kind for Orbit between obviously, amortization and system referring is and somewhat the that to

six depending on we purchase to months, the the annual happens which million next within the equal next come So half. could installment, the annual say, right the for that amortization. full now, year, potentially $X paid amortization when in purchase two be amortization, $X.X let’s only would the million make timing we’ve as amounts of second a But price much three as price, on would

Gary Prestopino

right. All

to expenses too half So, getting it much incremental for this loaded into don’t from back get want the for acquisition? million purposes, the year on modeling But I fully you’re – $X of this we’re this call. of

Harry Herington

That’s correct.

Gary Prestopino

copies I right? There’s of as this, couldn’t this? through yet. And of get correct? slides it, because there’s went that could quickly. that the some don’t write, slides XX you just pretty authorize states we states that and you have But then hard Okay. clarity around mandate XX Is the

Harry Herington

legislation Guam, XX that’s are systems these – requiring in place. passed plus There and Washington, No. with states D.C,

Robert Knapp

a states system. PDMP XX have

Gary Prestopino

All right.

Harry Herington

in there. have are they states. Of those that requirement legislation passed service the But

the information to there. and put We’re in box in systems in there, required them get

with we to – queries. statistic mentioned other that that address were And the of to I’m The looking requirement one. Robert is

Robert Knapp

Yes.

mandatory providers the to that query required So, get say access laws, information. that’s healthcare XX are to have states PDPM let’s

Harry Herington

of the beds hospital about and talk we whatever. reason number the That’s

Gary Prestopino

Okay.

So, doing that there Are out you – have how to that I or this right? in other you now? similar – there the question really this what – order providers is software are o guess for grow, this business, I they got conquest purchased? are and all this to this – And

Harry Herington

they there there was the There and facing within they get legislation ahead years. I’d how a epidemic What to this. tell put you they’re trying And other this they try requested is But there it. required information various information an is they access been out has well as to service have think need has been of that Yes remember, the came that significant in provided. front that the I’ll getting of discovered out they’ve the of and and there country not yes. get doctors call to And our that for of us. basic the with What pharmacists there. out ahead get vendors to up to out is type legislation, PDMP that vendor

let’s looking say, Looking for for doing a government queries, the from different standpoint. trends, hotspots,

can of beds they trying number ahead beds. down So of start take to and get the

We’re XX losing almost overdose prescription to people from a day opioids.

for that’s so to center the cancer. a systems the willing the And Medicare government federal was we’re came needed better out there. And what system, and better what Medicaid in and look,

shows algorithms, system acquisition, a That right not necessary has is already the there their We’re very excited fertile they’re can willing unique [ph] in to current with now. asset systems systems and pay That they’ve systems, up that out this that’s and very ground. can we this this in have that by in apologize. centers, your you to strong doing We XX%, will I about. got given so information makes a us say, if that frustration enhance would us and a definitely get place your why replace leg this given I answer, the Long coming engine, we’re with where right systems, information. you what the that’s off place, get let’s data call,

Gary Prestopino

pilot Yes. me, Has of it, I’m excuse been to so program this been trying a there the ahead. state, – is understand Maryland? – with go in has just technology

Harry Herington

deployed as has come in that we’ve places, in technology using two what the that They’re program and there. actually take prescription The marry a pilot platform together, those Maryland. best working up it’s country. be and Then with to enhanced is this did monitoring going just correct. beneficial backup you is other been phase drug of you acquisition that you we throughout Wisconsin the well. that That very And recovery

Gary Prestopino

other this I’m platform, getting no state but there I is – that’s So guess, at. is using what

Harry Herington

a we The that’s with new we we that stepped is in been and Because the engine has that company Right the asset reason in. step we have acquired, take now, so this of the whole level up we take breath can no. is there. are – taken all It that this not size the asset of contracts. that and that and from with our company

So we were a leverage and this this perfect partnership to commit at asset.

Gary Prestopino

Okay.

real-time So, does is of – not you with up. that systems, mean, or… its I feel some of is the monitoring you’ve got the problems a match bigger, some other better

Harry Herington

the am. the and I market. got And people is we you that. trying in hard data careful space expensive be go they frustration this, data real is been times. not got – in I And to frustration information. And do to to there able that negatively this access get every don’t is to tell do other extremely the need got heard to in in that into box same really they I that have interested out you, to What has that is at and to market us the to could are impossible to what can the to they’ve access speak black that I what to

Robert Knapp

other for example, better or names to and I around software believe believe strong are algorithms patient algorithms names some doctor if that of has that you might are whether enhanced terms full made the obviously, we occur. one over system create think and that sitting saving information system potentially, emergency acquisition the concerns we’ll to a we the data the their we that distinctive, want the lives. go decisions. individual and the able prescription. to they being room time pull imagine, in to at and you health dealing doctor is a in immediate single up And little just we – up then strong doctors for to think Gary, to the matching one and the record think bit, we basically bring able and and mid portal things able that separate is that it’s that and nick of give to identify, The we you’re be in access record his that where of if Harry lose is, of can a that directly it add shopping referenced our or engine And needs thing names that can real patient make we that to with terms being the to pull electronic integration it seamless

Gary Prestopino

Can question? right. one All I more ask don’t know I’ll I hop…

Harry Herington

Absolutely.

Gary Prestopino

it what doctor, the based? a – both? Is subscription-based are this. hospital, is who Is pays the model How for and revenue your transactional

Robert Knapp

way got we we’ve at keep – at the we’ve looked way we’re looking this is. this, mind, it and we recumbence our right The now, to where market the is think have course, done one in of strategy and with

We’re as looking potentially SaaS go us that an would a as implementation as fee well with setup. along

And will want "Hey, But we’re do." is way however, that a just is to this the model. is to the we’re this I opportunity. say, early being this today, into SaaS is only so don’t process. SaaS how done going But

And we’ve so bombed with. we – that’s teams our what

Gary Prestopino

so Thank you Okay. much.

Harry Herington

Yes.

providing have out information answered have is, go just would themselves. the "Harry, same our the only customer do to basis. citizen half have need this case, that sorry. be And primarily, one and ones me would doing run. to we They businesses to thing except server SaaS the that the things. this you address we other customers look the thing that – they to at Robert the And system for that. said, the we and mentioned, for, we’re critical different I’m how and and do question," at government that In we’re same access government time, improving that Let implementation One two our and customers be would you going to

required to XX to is that hospitals information. need access We states there out also this think are have the with there a market in access and

think a it. approach to themselves we So, that sales to and two-pronged need actually those states the access into it’s

Gary Prestopino

a Thanks lot. Okay.

Harry Herington

Okay.

Operator

Herington, At this any would Harry to or like comments hand I time, additional the over call to back closing for CEO statements.

Harry Herington

afternoon. we’re November our All joined excited exciting again things time enhanced about for I and in I’d PDMP earnings our you third you like This well you. NIC, for everybody, we’re are ask – quarter and right. an to very us who how that this call. thank Thank join solution, has is Thank going.

Operator

you your That for today’s participation. does conference. conclude We thank

Nic (EGOV) 1 Aug 182018 Q2 Earnings call transcript