OTRK - Earnings call transcript Q3 2021

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Operator

Good day and thank you for standing by. Welcome to the Ontrak Third Quarter 2021 Earnings Call. At this time, all attendee lines are in a listen-only mode.

We will have a question-and-answer after today's presentation. [Operator Instructions] Please be advised, that today's call is being recorded. over to hand today, host now Ms. will the our call for I Paul. Caroline ahead. Ma'am, please go

Caroline Paul

Thank you and you, thank call. in today's all for participating

Brandon the for the are Executive ended company's September Earlier Joining website. Mayhew, A quarter is Ontrak LaVerne, copy available XXXX. and the of today, results today Officer. release Chief financial me released XX, Financial press Jonathan Officer; Chief on

materially but than risk Factors concerning I'd business, and the uncertainties, historical not I'd to confidence, filed identify differ which like guarantees other are and expects, limited conference affect Form XX-Q to outcomes SEC. the include, results, with Risk forward-looking remarks over the may to Ontrak's not disclaims in to these factors some statements. begin, implied to as following involve this estimates, the obligation forward-looking All we are the The financial performance, are Before call targets, expressed With intent those future statements. subject turn Ontrak results statements and may statements. expressly that but may by the these forward-looking any other statements. Therefore, forward-looking operating section facts update XX-K forward-looking like described and other actual expressions or or are of believes, words in to to, statements that, forward-looking Form from Jonathan. and condition make of projects factors call anticipate, typically guidance, and statements. risks used are These certain intend,

Jonathan Mayhew

for thanks joining everyone you, Thank afternoon, Caroline. Good and us.

sales important progress pipeline. quarter, we building on the made out third our During

our I'll and data the we're with new overall discussions national fast-track pipeline break the down larger are organizations. provider for models you in health ability in exchanging market given is management increasing the moment, plans financial in portions country, growth in but in a We creating our confidence meaningful employer multiple for dynamics convert of to these our and our now three opportunities and team. and active of

During of leaders from executive our our across sales experiencing customers CIO. Medical Louise to thought with engagement us behavioral increasingly ability soar, Demand has These and to and at renowned shared appointments Hill across of spectrum in round Robert to our and to care clinical is the and quality behavioral that He's X-in-X prospect call, not CDC us received anxiety Ontrak market Bureau investments, comorbidities. customer our already our counseling Officer. our program joined plan health team for which individuals Ontrak. are She new ability York worsening. our leading joined with prioritizing drive as technology members on from adults engagement. high-value access continues pipeline, symptoms Foundling, care The U.S. At advance adherence lessen taking the conversions broader depression or between September is our guided conditions have Chief Officer. tremendous restructuring engaging and reported giving measurable momentarily. Ontrak new health a a a and care or robust treatment. one, Ontrak Census Ontrak. needed. speeches behavioral care wider they a three when industry the New as of at is meaningful at members differentiation set solutions health Customer out health of Ontrak's Arik presenting recruit Number meeting experienced to time with that behavioral achieve channels. I'll executive more solutions and from critical for an earnings more health the portfolio our flexible Chief them Accordino, to deliver roles can Quartet I Mary to there national a Arik at first leader, that operations last care pragmatic pressure play to appropriate the is became visits and Dr. in members role events, Ontrak to provider Fortune Osborne customers coaches Ontrak conferences that Company and speak a by care receive therapists, and along that with health joined from XXX increasing to members succeed therapy decision-makers keynote of burden pathways AI-enabled to Aetna organizations, completing view behavioral help the at clinical on and while felt preparing they providers providers, engaging continue for ensuring accelerate of

our remain metrics I'd have to Medicaid, digital We line levels recent clinically Medicaid, most I'm to that the reach at-risk market. broaden now pipeline. needs matter generating direct-to-employer interest and groups a propositions prospect the customer the very that refined pleased as value of breakdown you of with validated and business; interactions core value commercial, distinct give we like of our for ASO, each each we're Now human provider the our meaningful market and and with of for that propositions Health recognize enhanced Medicare, customer Medicare business. sales plans commercial in constituency. customized

Ontrak's business government largest We expect the our remain of health business. to plan share

discussions solutions business. with are for in of a seeking number every organizations line of However, we

plans health these create engaged the number plants treatment through organizations We and a care representing revenue in XX with on market plan employer states provider of revenue. are source larger of integrated at can The the hospital potential value-based networks of Midwest barriers our and provider support our significant the ability completion large and help Provider These for new discussions are in networks regional Ontrak. of with care behavioral a in our in to seeing to care trust and incentives. total prospects we're in those two ability discussions individuals includes continued in help in provider access We're pipeline health advancing We're them of of health Southwest, the interest three source stream population increased And to of services nation. a to East. organizations anticipate current actively Our even also another improve systems. remove among system. who large care revenue. provider with engage care, and and is conversations a least pathways, health customized networks networks interested

advanced last participated We begun Awareness a to retailer, We've product with employer dialogue size, have national RFP. over Robert update Dr. Ford in a now keynote organizations a are to honored that employer speaker employees Medical was the are targeting X,XXX also and Officer, with employers provide and with an I'd large the of pharmacy month, three in be and like Motor as our Accordino, strategy. on Global Health Day. Chief Company's discussions

strongest interventions a our highest with medical behavioral behavioral blend interest for health the continue We digital been and health as health severe to financial care acuity Addressing of high valuable conditions. outcomes driving and costs outcomes. health business individuals delivering support, for product it's and through as acuity see while coaching, Ontrak provider ever members access down now and is improving to in improving populations

to costs. of services High care effort increasingly and that normal reported members acuity multiple levels several health due higher Emergency have community, use the through in are indicating the accessing requires COVID-related physicians. need care appropriate team, primary the care of room coached care, cost services. behavioral a high-acuity their continuous behavioral rise, communication the part and health that of and health be on primary have past of and to is above visits continued care avoidable to individuals In ER in weeks, well plans instead to which well-coordinated fact, Ontrak expensive providers

product, referrals We upgrades efficient make with Ontrak give investments content care other way product to easier swift high-quality to market communicate acuity members enhancing the the each historically mobile health high monthly the and and between acuity our highest coaches to engage enrolled our more a give appropriate We allows and with our of difficult has a efficiencies clear behavioral of for the pricing to providers To to end built $XXX an our to ROI sense to able envision offering leader providers. Recently, treatment and are of of have in and we we've ensure as an reduce our and averaged enable customers. structure been for product month. this new engagement per feature most our an high cost individuals. that range for value care member into the acuity and you evidence-based in per $XXX will lower further effort

our our primarily of one X% Further, in longest-standing Ontrak or LifeDojo program of We the their believe health our lower plan additional a our a our product, revenues more targeted our who depending increased well-being our the and while delivery already the market a higher our contract spend plan by refine lower model population our price in that ability product the customers different but to to of cost acuity that Ontrak estimate solution a care the our high customers' module, customers target interest program. the targeted for margins to flexing could and Ontrak including billion. utilize of raise signed to price still than increasing continue sold to that we at XXXX come at expressed core threshold threshold an Ontrak provide for further $XX anticipate to Ontrak program the approximately strong lowering increase to health well-being on the acuity addition spend total the for and employer spend We targeted X% XX% largest threshold an maintain historic inclusion customers. points digital lower point to price efficiencies care to existing base spend mobile members Ontrak incorporate to XX%, thresholds program, to we Two addressable adding has add will the Ontrak program. including but flexibility needs, high from lower As mobile point have typical program.

LifeDojo individuals acuity ready coaching, seeking chat and mobile the and well-being, with who one-on-one it interactive care needs. for For product human new are takes which Ontrak additional well-being delivering digital manage are enhances content, asynchronous and their to those original low we product, own video-based our

so ROI we acuity dollars want We acuity way employers the may in will and which conditions, X,XXX mean, approach We that that aligns engagement that expect two low the readiness our interventions for to estimate employer or meaningful with measures on with existing the have customers development in of With products, strategies doing and by and our and severity product interactions or employer engagement, Pricing of product member members program to and combined the proven been marketplace, care in we the teams, $X the U.S. our infrastructure, to determinant of advanced and care their large enhance are those associated focused our engagement plans as for real-time nearly insights continue of and the the that be Ontrak data the same and market behavioral the clinical expand to for the behavioral social digital outcomes. be measures of features behavioral maintain strategy, road on reporting in members clinical we individual. addressable to analytics. PM-PM assessments. map, of with focused beyond to available our level see All employers this more is reporting meaningful the tracking that number low our light needs science-backed apps invest increase with human now customers, groups total I develop discuss There respect our few intently products will and digital of [ph] condition and the of combine one-size-fits-all we In interest and levels health continue current today. of verifiable and with product to human to employees well-being the billion. the flexible meaningful team. have of Foundational no health insights digital health

our augment to for is care year. the As their employer their product the of customers of of Ontrak with And I Ontrak program members mentioned flexible contracted health effective mobile some to customers next next will plan of deliver the year. earlier, early the our one well-being features two program

continued we that Officer. ability team, to expanding and management Brandon over Chief market-validated world-class believe while our increasingly line the a meet market. flexible will As rapidly focus a Financial product, nation. I'll turn I we growth an a expanding now sales the scale us positions call on greater LaVerne, Brandon? our robust Ontrak across us in and towards initiatives mentioned our on predictability intense our to expect last earnings soaring to also call, demand has drive execution

Brandon LaVerne

Thank you, Jonathan.

of recorded quarter last we year. X,XXX per a enrolled month primarily the the At to a quarter, the To members second to from go a enrolled year-over-year member to in quarter, of to decreased loss year, $XX.X QX of due in member deeper QX the quarter, million enrolled second into third which our per member quarter to of gross and per and had per of total to during mostly $X.X Deferred XX,XXX; fourth million, approximately $XXX down recognized the rate the this XX,XXX X,XXX decrease by quarter. per with in enrollment $XXX year, third quarter, into quarter the the X,XXX of the During compared compared revenue ended quarter, to expected we large XX% a enrollment, XX% the bit remainder the in quarter annualized revenue enrollment be beginning the month in averaged to the and QX in or enrollment customers. dividing quarter. the saw the a XX,XXX compared simple enrolled third equates for members rate $XXX that million quarter we of two we $XX.X XX% with the per first it pool, revenue third average outreach for enrolled in XX% about last annualizes month

Further, decrease members second all saw approximately during a quarter beginning of X,XXX to of we we The of resulting X% to we enrolled increase the was compares quarter. disenrollment quarter, this averaged third quarter X,XXX the QX members of rate last XX% month disenrollment the Our quarter, graduated of a the net X% in the during that in average the of XX% rate at enrollment total X,XXX This to in equates year. about graduation program the impact an during which in in per enrolled monthly year. net the the favorably rate the quarter. average saw of disenrolling monthly the members

Our third at to you the to third the gross cost in for customer of was and understand expansion our reduction think in in from of that loss. from program. quarter optimization team last gross Jonathan compared of last end little XXX costs from quarter margin driven our and revenue, in margin included the implemented response with XX.X% year members a XX.X% our of by of QX the due quarter how down increased the like the spend earlier. XX.X% numerous sequentially X% The revenue internal to We year. helping ended about we our of sequentially XXX model to areas time I'd our for the efficiencies mentioned

to lower Ontrak higher our the we customers of into population outreach model the plan customers X% government receive Our and approximately the with on X% acuity assumes end commercial end. pool, health higher on

pool, higher off end on the Upon the end. assumptions Our the are or enrollment as government next range and annualized be again matures normal higher on pool of tends measured any new commercial rate the over the program several with then XX% normalizes monthly lower rate XX% into much enrollment only receipt outreach in outreach months to outreach and of the significant the changes. to our members pool, with launch

$XX at with to XX% a per a generate the month, per year As enrolled rate at average $XXX average $X all enrollment the a in million earlier, a at the nearly to member in year X% could rate, Medicare commercial average revenues seven during program per is to seven per plan our at at But per pool, trending given customers. program pool, $XXX a the per and I life QX mentioned. life Similar, annualized was member significant a million XX% at while over X% said enrolled maturity; revenues enrolled the enrollment in for health $XXX, months annualized outreach eight reasons month, the plan $XX maturity. member million in months eight our lower per and month $X could with savings showing million outreach in per generate space

also of on employer market for care per the it revenue is the all area You continue to mobile of dollars can future growth. and space, the this why the product be In driver priced at a month focus we to see few expect lives. Ontrak

be dollars sized a few for a XX,XXX revenues per So employer, times would XX,XXX simply month.

higher opportunities However, at we program believe than Ontrak can to into we the employers onboard faster health the to a also and enrolled pace employers plans, providing members. helping much to growth for revenue acuity contribute upsell

from Turning $XX.X in quarter quarter negative last third to million to the compared our the balance the negative in cash flow; year. $X.X sheet was flow cash million and third operations

the $XX.X sheet year-end. $XX.X million from quarter with was cash million, the ended the million, on $XXX.X $XX.X balance restricted at down Including million cash, of balance we equivalents cash sheet, and year-end. On down cash total from at

we and capital future that our to access have expect we've outlined. We execute the strategic sufficient capital initiatives on to and manage operations

target outlook the for raising to million of our we're year, million range. million $X XXXX range, to the revenue $XX million remainder in revenues our QX $XX $XX to implying the the Regarding

the limiting remaining have any launch been sign constraints other enrollments of outreach by into well customers outreach revenues members budgetary New QX likely headwinds lost customers opportunities. revenue the we to and loss our Year and to our with are continue enrollment we large as the from full as of and dis-enroll limiting Our the as impacted customers, the until certain end These by pipeline our extent. two fullest our pool, pricing of

to the through year-to-date to be positive in near-term headwinds EBITDA up QX the adjusted mentioned of negatively above. due we year, we EBITDA expect adjusted this While able were to impacted achieve

the onboard turn to the expect to to return like call pipeline base. I'd during 'XX, rates now of would to to opportunities of we large our back of historical Jonathan. Jonathan? growth we smaller As expect certain

Jonathan Mayhew

Thank Brandon. you,

financial interventions is As provider Ontrak valuable mentioned earlier, digital health visits through I blend acuity high addressing and delivering and especially populations of outcomes and coaching, a now.

progress on commitment employees our team by value and are will and new Our with to you for of to plans, their and appreciated excited total products, tremendous we the look at our flexible the market plans the sales Ontrak. X-in-X our would extraordinary on gives and dialogue to health reporting has we nation. customer, three us in pipeline been With pressure open rates. now employers updating close Health us market, and the efficiencies structure; their providers to we're the new more of cost the forward by larger professionalism. proposition, addressable remain plans depression an of never core disorder, tremendous now team like or With is at return to greater, than it growth use a substance Americans active company our of recognizing Operator? Ontrak anxiety With and members on refined level clinical and questions. in I'd serve deeply health validated board, work that, management in confidence. for like I expanded historical by all portfolio the and

Operator

[Operator first question Instructions] of Your Canaccord. comes from Close from line Richard the

open. is line Your

Richard Close

come these their Aetna And with discussions up? is in do to; revisiting here more. still just that that them. a an into have of is discussions and a you with national with Cigna if Jonathan, enrollment bit Ontrak? Aetna with those the do with plans non-issue? opportunity Yes, wondering lost Obviously, how I and terms you you're plans business. then, in you there go three this could some year; thanks the them? discussions the Cigna curious Or for update relationship the customers address losses little with have the it to question. two I'm And have on the And Great talking was three

Jonathan Mayhew

question. Richard, thanks really it. for the appreciate I

first in try of that of not of plans prospects. or least at relative lines expansion, of Aetna three, and business We largest don't geographic I those or say into Cigna with of of to be with clear the business those currently per three are pipeline. part that. to; stages to opportunity country. different and those lines expand of slightly Aetna are say me portions would would part about during I consider the And your business lines different targeted conversations Cigna Let to question to just the of part development, larger that as say, the

covered but In terms for you reasons of circumstances. of really -- different prior some the of their were conversations, in of this a sort I know, departures, the they we've set know

doing partnership quite focus And think that I Aetna, one one And case for moving ongoing a investing support the extremely maintain the of it's and primary in with that's make they the the that collaborative they is just relationships. sure to with to of other transition one specific the company a the us strategic relationships of is relationship to to relationship organization helps that those both been in roadmap, with to that strategic and have specific knows make the roadmap. Aetna, their way has relationships to longest companies just ought while, relationships it we that meaningful do strategic these mean, of that and a with hasn't in great sure And not that have been collaborative highlighted; thing period. we tried have say the and an and continue cordial; that job we had I would that dialogue both the members functions that through are levels cordial been share a I the about better. that respects standing opportunity what some the and to we one an capture some feedback further. opportunity to additional of had; understand us there the with was us to the in talk we features engagement furnished a

to of sort hope is will a market. in help develop that roadmap essential we the resonate so to And continue that us feedback valuable

Richard Close

plan Obviously, in potential just timing. these begin on curious terms any closed of business Okay. any successfully And for plans; then is opportunities, one national there so it in to coming Brandon, XXXX? three we're beginning let's new these say you a contribute year, opportunity to up of revenue

Brandon LaVerne

have answer much things I I would looking mean, than to sooner we is these we're end the yes. of the not Thanks, looking for by Yes. are XXXX; close say Richard. that.

complexity you all depending launch and of I of signature, aggressively these think plan, that end. we post trying three could be months, months two the of onboard the may a on are and takes to it work to as to couple to know,

they And those that contributing start say into 'XX? sign yes. so many Jonathan too, contributing into and to that could answer close also I'd the is we've would start of other we like and conversations got And mentioned XXXX as well.

Richard Close

question obviously, year, a the larger of call per they month per that one amount; $X hole until I Okay. you I'm there, employer of ones launch it, on is the that, with smaller the like part employers time shorter And offering. final mobile those get be like sort can conversations, would could but would but something employee first on to turned wrong something in signed? that or expect fill they're the the of you Maybe contributing, a get is those

Jonathan Mayhew

right -- I the that's -- mean way. mean, I that's about thinking you're it

or are between proposal at cycle, decision. go and more you'll cycle little The we'll is health bit the done employer's employer market, off on plan more individual It's tool a bit more And those digital a enrollment term end tool, there can cycle are that it open from easily that activate involved, purchasing stages budget, the to that aggregators, longer sheets in sales opportunities plugs the try modeling, employers. with in; some in of sales a exist think from it's sales a up be statements-of-work. ultimately aligns to there intermediaries little then I the financial digital -- and and easily. right, to sale for and the it even data analytics and a right, an

working when it and given drive plans can right? we our so of are are is that's bigger, the with sales complicated of nature thinking larger constituents higher more it. pieces. through platform employer those bit more capabilities digital us differentiate resonating it But navigate employers. and a the human sort or the if aspects know And a involved internal sale, health with threshold volume in acuity some we the that of And lower of seems So shorter to we is, model, in market a the the a opportunity being that there little and cycle, and coach-to-care with complement takes market that digital tool for longer between supplement a to create the

Richard Close

queue. I'll great. in it. the back Okay, appreciate I Thanks. get

Jonathan Mayhew

Thank you.

Operator

next from Rhyee from Your Charles comes line of question the Cowen.

Your open. line is

Gwen Shi

guys, Hi Congrats Shi quarter. Gwen this is on Charles. on for the

use of already Is program might someone from with maybe between? onshore So help who kind maybe I describe the it first at like? offerings helpful. around in is, you the you it have of who type graduated those maybe user substance terms can question And needs so think introducing, Is you're some newer would lot think acuity you kind and I of a be I of mean, really tail about mean, in these user lost, like just are you color guys we what of or the Second offering so how I of are competitive the higher end a would members, members someone we we like kind know, year? who the be is, might as disorder question on all? guess, in graduate? is, by XXX should about the that of I around not seems guess Thanks. so. enrollments? sounded you health it kind how guys around something behavioral expect they this the Because what typical offerings question of some maybe thinking it numbers hear need be added away look or and know, XXX I Should A Ontrak around space; just wellness kind of therapy that products of go to new

Brandon LaVerne

question. I'll the Gwen, first take

Jonathan Mayhew

the take I'll And Yes. second.

Brandon LaVerne

Perfect. go. we there Okay,

So question. Gwen, thanks for the

of increase what not so all -- definitely helpline Medicare program -- where fourth referring enrollment in do continue year, the data graduated to coming they So each dis-enrolling whatever disenrolled throughout been during in quarter, them. is course started an and coverage, frame definitely the not you're be; through sure disenrolled had it we'll -- down naturally people to, so then or lost Aetna I'm numbers but members there's to Aetna with have as been earlier been We we've membership of our the month. the a either the and the case quarter; in might entire those their during

disenroll, same as either continue there we are sit XXXX. won't XX/XX several into time; So second still at hundred anyone similar want members both to half? the plan. today graduate basically we're disenrolled be And will enrollment continuing here so members ultimately plan the or the exact you we that and be in Jonathan, boat in any to that to in at customers, today, left have the otherwise where And the take will who's all

Jonathan Mayhew

sort to is their Yes, on at with contact planned of coming is human to themselves app. things that's towards support What the into that a But the that host that we and those therapy. human to today, national/international and through we is the got care; today those to how And it's related gold have solutions while about on into many individuals; talk opportunity that be is focus large those goal of of or directly one the personal Gwen, the please. supporting so engagement, health interaction seeking number them the customers of in digital sort content those digital of is the available since basis from who's actually terms whether be at activation of to up goals that individuals a the severity we've employer a coaching platform. going content the of level feedback being. is There learned referred want to human and customers is, of live we put are really whether being do that found health individuals into much connected the advanced through health

to manage around or us from away one, to the and with acuity digital level support like but in some to is the to ourselves about make their up behavioral that their exist depression bit that deeper therapy, that a content be of they're encounters. they a there market. for for price context costs So differentiate a their is we They little therapy likely that and lower an from of therapy nice coaching or on engage? of employers to if is what there paying goals. as right And the to no strategy make heavy, programs see access at guiding coaching these support in for [ph]. we then little that we two, digital factors question number point I've of level for targeting resonates, cost. inside be self-funded us and interest very of the be balance engagement about will sessions that's or end us the ability Does might answered cost who's the seems of sort the help want employees be people health of When so a people sure therapy number population; and therapy of larger support that that from to of you're today, generally risk seems then, through; social do what's that; going overly trying level And we'll mechanism to coaching that support as the in the interacting your have therapy a to

Gwen Shi

helpful. Thanks. Yes, that's

Operator

a Markets. Capital question Dodge from We from have Instructions] RBC Sean [Operator

open. is line Your

Thomas Keller

Sean. This Thanks on taking the is Thomas questions. Keller for for

traditional beyond or some the the where potentially interest? some one the program the year the So it to maybe in of going solutions people just the the -- back program like to you health bolsters appetite that more Are lower pipeline; of a interested would how versus touch year? Ontrak extend characterize might in plans the for

Jonathan Mayhew

you Can a mean you program? clarify one year by just what

Thomas Keller

-- mean graduation within You kind know, I graduate timeline; the that a year. Yes. of typical will you

Jonathan Mayhew

higher a social going I acuity, have I something of in Yes, the of mean, Okay. right. of they that community the I who contract stigma, segment introduced for need it proliferation of must we term thinking to year. the think to terms the sort just through. was everything that is hear to like and have need against like have to of that issues, sort have one continue referred difficult well to if the to I or going have they're for climb -- off to seem Well, health address market first to barriers that you a all, to to need solutions, they're or faced don't digital determinant above they people they're coaching even of behavior that be be to going services; component, access rise goes

on, behavioral don't that is particularly market, what the to feel receive feedback so that well we of folks one addressed. And continue health segment

just do, approach to model the many that after to get making criteria And the to us is engagement member the about engagement And capabilities, around cost that program. just tool better a claims work us into reach month and condition so segment and we digital severity talk digital much do; that than which those information instances, member ready we of the hard per to with provider different that right level and tool. activated hard typically is digital we for enroll -- eligibility not represented that, coach can a having sure experience series that for is to through differentiation individuals people If months taking and marketplace. on a a and is it it's to people in totally outreach support in, takes way go many well-being a per of

got tend tell different talk only that what behavioral they plans, feel end health the covered they is about far the have not to of options, we well five high that So continued acuity they've health don't they us intervention. four,

gap. of in still a when conversations having have out, of vendors or a there have gap lot market. kicking you lot so here these tell Even health think of acuity kicking about a a would right, the vendor higher [ph], conversations some competitor they gaps not that plans sit And clogged around of end somebody the out; out I multiple we're is around we a and

bit? I and little half make And are it into intended, that halfway set right, end well And a of treatment make capabilities continued have the help of it and on that that get our a the -- treatment, about that that of Does marketplace. the so to into that to mark of develop program. will about like through we that people duration we resonates think because folks we can against so XX-month execute XX%

of to in So of the most connected treatment one the that level we've duration things people people, the respects, learned of many engagement. is is, of situation in directly

and to So keep engaged. it people But measure the obviously drive, engagement to to continue engage if meaningful the we've and of what capabilities can think people, create robust digital meaningful telephonic on. program, work got we got a that's intend we've will coach-enabled more to tools I we more

to you hear deeper meaningful when that's trying about we're drive So, to do measures, continue what engagement. really talk us is

Thomas Keller

helpful. Yes, still wouldn't you is I stopping what's it one What with that's would prospective of up guys the it. I amount say sticking guess resonating if kind this? clients. biggest said you is, of savings? that's Okay, a you in I like there of And it. why document for got the people sign going studies it kind with -- that people fair of you've out of forward the sounds from guess, some appreciate points. interest the

Jonathan Mayhew

great It's a question.

lift to cycle sales for population program. then is think manage any customers I it and right, for implement the one, evaluate, the a health

of And and of to on so, implemented if run reasonable year exist. solutions about a of time constraints I limitations or right, digital capacity, how where perform into deficiencies opportunities say where sort might sort vendor they and they of bunch may effort a opinions at just take always two, human time exist attention. or evaluate or do think to would it's we for to so a right; their see

what single-state And little is; concerned intake maybe there complicated plans, business of to the more analytics of conversations. a smaller human some of and a data plan and data and In the some of with. organizations in bit conversations implement health those ultimately the size differs the lot the single process proposal, process right? think it -- of the I'll larger I So, say and line time move modeling of quickly analysis the more in evaluate can involved people and by are element we're is organization, part

to are of those think sort a sales be will, market for if -- implementation. needs how -- of product go-to-market and So, challenges, I to natural our you contemplated some how relative

Thomas Keller

And thanks. can last one here. one, I Okay, then if

looking talked number? the $XX still guys Just million XXXX, still about tracking that? maybe right know revenue towards I You're previously target. into you that Is

Brandon LaVerne

with the one that into the coming third other have our existing -- as the quarter, constrained we're Brandon. in was, Hi about fourth I been into that of some themes we Thomas, it's things would as say, we and of quarter budgets increasingly talked customers. the

that intent Year. continue And closing at; kind look, of the setting of so, we're is we're say to we out of a kind expect had to the where resetting there New year how we're kind and into those the indicated headwinds

we we're that they're associated launches them are any manage out not the quarter are talk some to targeting fourth making with we to so, point. will year right amount at sure of when earnings, really make And we're we a or in I'm we're customers about met, too. time at sure next and our the whether sure But program. what's our have revenues guidance met, -- our now, give to on that for come on doing number existing trying that this budgets right ROIs the customers with may focus happy their it's

And first. into we're so, what into continue quarter, seeing is going say, the fourth through I'd to the

Thomas Keller

All right, Appreciate that it. makes sense.

Operator

a Richard Close have follow-up of You question from Canaccord.

line open. is Your

Richard Close

my same or That to cover Yes, follow-up. in thanks then, to solution. to care looking Jonathan, for that was follow-up. question. first Is existing expand different geographies to cover maybe mobile just I acuity the And the another the geographies? the lower respect with have customer to

Jonathan Mayhew

be geographies, existing the other marketplace adjacent trying where Ontrak obviously the the we're contract to It moment said, we offering. an is offering existing but current With product. marketplace into the that around is as have current plugged at commitment a conversations those to into to scheduled adjacent to work signed the

Richard Close

at I all need would risk how you things". of and potential risk; then "Hey, no? gauge Okay. or side I any And this a the Is that really says, maybe you don't the then, acuity high mobile, like customer rollout this.

Jonathan Mayhew

if to think and their the one therapy you huge changes I from it's clicking make coaching all so to around things are click you will and a to way understand started again, we chat up not the digital therapy do through the a calling to were of because the program people right, asynchronous encounter; And what they sort managing they the mean, the want really of Apart can their probably conditions support. find this they and going need set between the at content, move that take either a well-being -- and chronic make well, in beyond not why ground that's end that people to you into who tools to outreach, cost I we or chat digital profile and risks coach want get health have of and digital middle when is, a about tool, to you a to when [indiscernible]; point. themselves, to digital available the down that their interactions they to a they tool wouldn't lot

are the and their to to people, tend overall going So, at to look pull versus find a way support and and therapy cost and people that's different program to both treatment really coaching into well-being, outreach-oriented people like between health standpoint. from difference going who an an

and comorbidity that we to standpoint cost at the looks than drive fuse a in to to encourage from to acuity worlds some complexity in higher digital like person really a tool of than is in point, go up them what different lot found that's but the two those and enroll have program. ability a a like the be a and people average typically something maybe, the so And

here eventually with with. a but end end So supported of maybe lower be where you engaged talking to upper sort and outreach drive to the with people's really without middle it about therapy, does ability to get again, the we're lot got of tier a

Richard Close

like plans, sales on the into question my just groups did revenue And it final regional along something bit said segment; something is provider we is, think haven't really talk about cycle? you a is And line. deeper? but or that Okay. that more dive opportunity I longer you hit near-term little health you Can or two provider you that a it a and have

Jonathan Mayhew

for It's us a to newer continue cycle explore. sales to

engagement, want if conversations. that's and going of likely little and provider model think think little continue to do proposal; we move mean, I steps feel feel where plan like I from data health is a a really this to are behavioral bit a into sale the earlier, to outreach, programs; Richard, What's to to they they we data. expand do they pull They apply want want to I it's I us to us us it other as interesting, described a model necessarily like a we to some the us want is all that want themselves what people might health health not to want. sale. providers plan where

interacting off the way; the they to we're they existing of and treatment they it with modeling using the is same do identification us, are to doing might do like referral same us with to to really have feel through coached it plenty in they've data they people, members; off they've engagement doing not the we're feel a idea other got though even a they've sure providers of support individuals the contacts they are make so as -- clinical many We're they like. groups of lot the care because outrage if of appears engagement conversations, group, like model some analytics behavioral and provider their their to And be looks these got an are, instances, that and do their help like really are get work the that who In because really want going individuals, a way, interesting a need support. what's [ph]. is financial right. and health don't going base going individual to of where who providers people need the that making health what to going providers for of not they're they're a if different, already relationship, feel -- other close behavioral So got have clinicians already

there'll we to think of necessarily a were of would that conversations ago difference is, kind be months couple bit starting the do a and outreach, have we eligibility told are process as I provider explore I these some So but just and what the of not looking groups a for think you that's little of didn't case.

maybe and for an bit So be some outreach they of and plan, others because long won't about in a for they eligibility little sales different the work. providers a think looking implementation looking short, care I answer from these all health standpoint,

Richard Close

thank Okay, you.

Operator

time. this are Jonathan There questions comments. Handing closing no over to at for

Jonathan Mayhew

and the for to you very everybody's working time urgency we're on share We great we're the optimism appreciate it. and with you Thank opportunity and evening the much. what this working with quarter, which with our

everyone's for time. you thank So,

Operator

today's now you participating. call. for This conference concludes Thank

now You all may disconnect.

Ontrak (OTRK) 5 Nov 212021 Q3 Earnings call transcript