OTRK - Earnings call transcript Q2 2022

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Operator

Good day, and thank you for standing by. Welcome to Ontrak 2Q '22 Earnings Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to you speaker today, Caroline Paul, Investor Relations. ahead. go Please

Caroline Paul

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

and Chief are on Lou Brandon Officer; for Financial the today XXXX. financial me available June copy Ontrak Executive Earlier Osborne, Park, today, Officer. Terren Commercial quarter Mary Joining is results Officer; of website. Peizer, Officer; the the released release Chief Company’s Operating LaVerne, Chief XX, ended James A Chief press

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

Terren Peizer

us. everyone afternoon and joining Good Caroline. thank you Thanks, for

committed so my Health unwavering our and people grow. the of have two strategy financing Chief mission and Officer remaining in to help As company belief we're business the why of tier Health, and is Executive Ontrak why Ontrak

clinical AI-infused to We our are market, end model. continuing enhanced refine

Osborne differentiates Financial of we need here us and who focus customers long-term they've the role. Our activities excited work what exactly and confidence our build us LaVerne place. I growth stepped prospects evidence run strategy as in told Lou Park what new and seamlessly has growth. I integrated to our Chief also approach market into We're and have our day-to-day the in James new leadership into are have have on to formation Brandon think Officer co-Presidents materialize doing the progress provide on based to the and full operations the Mary to company. and to see them been here care is excellent capital and team, and

Now, I'd like the to co-President. over Lou call Mary our turn to Osborne,

Mary Osborne

by network availability current our behavior utilization. large provider growth value-based health members health innovative for it's with strategies. plans; have pipeline improve that our and my physical health avoidable medical will are the and interest health behavior solutions new prospect to These we and In conversations our prospects self-insured drive and Terren. Ontrak lead I'm development grateful major with goals My progress, supporting in opportunity groups, top prompt current achieving clear, health customers Ontrak's searching plans, solution health employer prospects, and value-based meetings groups for their we priorities a you, growth self-insured plans for which outlining prospects. and LifeDojo with prospects of Thank include and an help on are inpatient of compelling our groups In room groups. and engagement Health. I Ontrak the employ emergency health update the provide are employer comorbidities, provide their categories and and decrease Health. by reducing to our business expenses encouraged access provider their

customer health include plans our final health lives prospects a shared the needs data received feed than we ascertain which plan very apparent X.X to to greater plan which members U.S. continue base million a and a of us our state in The of awaiting which pricing their behavior will with from across all business robust representing has includes lines their unmet of lines existing pipeline of to improve of significant proposal. responders. were health from we currently first we all XX are a able feed in business national, data over First, opportunity One make local and have the significant regional, large we data cohort final

plan health in a with potential a outreach early-to-mid approximately soon. pool this combined development over in stages large mentioned prospects to earlier with indicate of about members. of second million to discussions data features this launch opportunity financial pipeline remains plan this cover a million Medicaid face. prospect remaining with The a members members. and potential prospects optimistic the variety moving exchange Our This a multistate the QX XXXX. proposal A a X clinical XXX,XXX XXX,XXX of to which translates date I'm between

a of In on addition, three new health employee two include business. our plan with state we of own a base, current customer's expansion, which a and expansions customers working are new line

employer in are conversations are proposition second we the category, these with QX have unique XXXX. value discussions. We several these believe in We that prospects Ontrak will whom to expansions these customers. group active contribute highlight revenue we In by delivers self-insured encouraged to beginning our

with these of is of dealing and step data members for effects is a The sharing COVID-XX. the includes member healthcare are frontline who large union is anxiety, and proposal. this clinical for depression, next XXX,XXX providing a One and that with workers financial

health our two access group three cities to allow a is behavior more behavior for their Our partnership patients us including improve would that have providers and third we to through where covering network prospect availability provider states. prospects multiple active a category health value-based large across

wellbeing variety active Our four a employer fourth prospect across is digital solution organizations. we LifeDojo where our prospects category of have

a robust groups each located U.S. after pilot. our summarize, these expand of our prospect is and a we dependents for financial outreach and provider of and proposal as variety our currently is To across and health plans, category completing One the successful prospects lives of XXX,XXX engagement with across pipeline least employers, their our evaluating at progressing

Our Ontrak health of our XXXX of beginning most efforts. focus in growth potential to represent sales the opportunities plan and our remain QX continue revenue

Now, Brandon over I'd to to call like LaVerne. turn the

Brandon LaVerne

want model CFO Terren I I'm To Feld beginning some Lou. We've Park operational, appointments to a development, an under opportunity Judy's is for maintaining functional the AI-infused and delivery. clinical as immediately that integration co-lead made also My on new Mary collaboration to to full-faith Chief Dr. bring and Ontrak experience we've the our alongside Medical thank clinical of while Thanks, leadership cross James really also about roof Judy important Health Ontrak centralized as and delivery, and with excited focus to Officer. James Health. decades you. evidence-based teams. that with ensure deep structure one will end, operational and our technological, significant team the value of clinical seamless

availability, prompts as maximize a visits. system motivational of to that natural believe identification a It research-based coach the high and Our integrated proud standardized entire of technologies health manage X) medication into conversations themselves. versus health bring include excited other coaching proprietary coaches and customers is like model a X) engagement to based progress. meaningful the huge emphasis optimal treatment but throughout assistor tech on touch Ontrak smart Ai-generated eligibility. we're and of members language and behavior that organization just places plans. management activity use of of Taking that different therapists, lives goal to also team processing orchestration a solutions, sentiment X) bidirectional that human communication and the Evidence-based effective technique on together promote access cases and psychiatric with quality, a help on. a provider care impact interviewing, content, and and within high behavior call, measurements offerings, an differentiate consistent intelligence rests and augmented series all setting, upfront, and relationships capabilities our focused to program for in and as provider for and Such and time visits not us competitive Health we enhanced of prospects of make elements This plans our approach represents care interactions members the notes innovative believe only These tailored our The engagements sessions, whole is this approach like care interaction. health app assessments we of platform provider market. analysis advanced such to not technology for and their Enhanced continuous blending our the Measurable and advantage serve. we to to X) engagement plan person strategies health and

our new James like would Officer, I turn to Now Park. Chief over to Financial it

James Park

excited million quarter enrolled per We the average decrease quarter. enrolled in disenrolled of and of per enrolled and month per during that revenue for members month Lou some during Mary On to and previously the That have The number per shoes with X,XXX step Great. QX a month ended member XX% large of of the the for by big equates quarter newly Thanks, compared primarily was the I'm and and graduated in you, to $XXX recorded X,XXX. of the revenue $X.X I quarter, Brandon. in year-over-year greater to quarter in XXXX enrolled opportunity $XXX the the $XXX enrolled or want for either to members beginning the of to number very at of the of to to driven or second member simple decrease customers the XXXX. members QX compared of quarter. member X,XXX two per about in thank opportunity. per enrolled the members At discussed. we we end loss of the Terren

core a per per go XXX XX% in of of and QX rate the compared QX which revenue annualized enrollment, rate in enrollment bit near quarter QX's gross rate XXXX. the Dividing To to last averages during enrollment by average XXXX a X,XXX a which XX% current a to to quarter expect of X,XXX it month we the We member total future. is the continue for to enrolled the compared in approximately the deeper annualizes year. XX% members QX on enrolled at into

as the the While as are pool average effectively new we that launch customers, enrollment expect rates we be on time. to we in work few able for continue we first be months higher customers, for would mature existing through the bring to rates these following initial the targeted and expect to first our

during the net of decrease was XXX the few quarter disenrollment with enrollment Our a members average the improving graduate we members the is X% the past XXX the impact enrolled of net the of members all quarter. quarter. The of at program in XX% in beginning that was monthly which second the trend over a consistent Further, which above rate equated quarters. enrolled

margin is related gross the the from and decrease quarter Our XX.X% decreased year. to discussed. our in The decrease pricing revenue from our the XX.X% well model decreased as due to customers previously was XX.X% quarter sequentially gross for last the second in in second two as was of of new of loss the margin our

normalize of from our our We the which with cost in QX members. quarter We in XX in included gross year. end in the is by XX% sequentially expect the low-XXs decrease members enrolled of ended line our margin the to XX end at team of the with down revenues

cash flow. the Turning and sheet to balance

$XX.X payment million down and flow the down million Including from this was from of cash from former year. the have access $XX.X negative of we drew million with during which negative $XX.X on quarter during million we have the ended Of in lender We million in the quarter, cash million that our last $X.X balance year. $XX.X equivalents the of to million off $X.X note to quarter. restricted existing former end end our principle million quarter With to was Well lender. related $XX decrease quarter million at $X quarter quarter the we cash the second current XXXX. of of in first at subsequent total debt with of $X.X Keep $XX.X cash, the for million first Our to paid down agreement of and our cash second our the of operations compared end cash, was remaining quarter closed

million $X.X improving net continue a sales us execute work upon to allow capital to our to structure on pipeline. raised recently have and also week last our We

our outlook. Regarding

that during this ever Our Mary equate would pipeline would per to new outlined, members. members Which To revenue per potential we to based has Lou mentioned, in of opportunity plan believe at we equate QX as X,XXX health been million it a the quarter. diverse have impact of provide and current prospect signed rate that And month, Lou at is our XXXX. enrolled outreach per approximately some million X approximately go to live the equate plan and expect Mary context each as of client into XX,XXX health revenue experience historical large would on our year enrolled current in to pool. our members this a enrollment member will $XX

given the as materially expect cycle evolved, our However, to large budget previously in the how QX have we not timing has and contribute we currently do revenues these of and QX pipeline to anticipated. options

our As such, in and any will believe our for will I'd open to growth. be call Operator? million $XX questions. show revenue the we a year $XX million triple-digit the continue be range for now updating of that guidance to to to like XXXX

Terren Peizer

Have in interest day. Thank you your a of for great everyone your rest and the today time Ontrak.

Operator

today's does in This participation conference. your program. for you conclude the Thank

disconnect. You may now

Ontrak (OTRK) 10 Aug 222022 Q2 Earnings call transcript