CPSI - Earnings call transcript Q2 2019

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Operator

Greetings and welcome to the CPSI Second Quarter 2019 Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. Afterwards we will conduct a question-and-answer session [Operator Instructions] As a reminder; this conference is being recorded, Tuesday, August 6th, 2019.

I would now like to turn the conference over to Dree Anderson [ph]. Please go ahead.

Unidentified Company Representative

you. Thank welcome second and conference XXXX the call. to afternoon, quarter CPSI earnings Good

we regarding pursuant make expectations, this XXXX. Private may During call, Act Reform statements Harbor of that of forward-looking Securities Litigation Safe and constitute future statements the made to provisions the performance plans, operating

We results available reflect are information expectations caution not such or predictions and guarantees only that statements any future performance. and based you of forward-looking managements' upon currently

such those and the Actual as releases forward-looking annual those results by materially but or on and statements uncertainties filed from XX-K. Securities result risks, expressed described Commission, recent including, may report Form other not known of with public Exchange and reports a implied to, differ limited most and including in unknown our factors, our

that call revise the We this of to events developments statements and provided forward-looking the outlook or our also only update information caution forward-looking obligation represents call. no as of in this investors reflect or we undertake date, to any date this after

time, now Douglas, Please turn Boyd over Mr. Executive to Chief and President ahead, will this sir. go I the call At Officer.

Boyd Douglas

Thank you, for us. you and Dree. everyone, afternoon, thank joining Good

will you At any Joining along prepared Chief take Officer, call Chambless, the and Fowler, today Financial Officer; Dye, to Chris our Officer. David have. will available questions Matt our with Operating me the Chief two the on our our of us, be conclusion be comments, may of Chief Growth

and urgency and challenged by near-term our continue be quarter. schedule decision-making the relatively customers. with timeframes heading Bookings again, aligned expectations based Once revenue installation existing a on among our and QX were of earnings to new lack extended into

quarter row our perspective, process. the for have a hurdles sales in in services relative experienced TruBridge business, a of couple From a the we to second

times the to business connections family function personal outsource and making therefore, creates uncertainty friends, hospital business outsource to their of have the decision community office. office hospitals and within perception. when play their and decision in the terms at Many employee's smaller First, neighbors that impact

of the community local, the on permanently in has site. jobs keeping place hospital's TruBridge aid to To goal those existing resources flexibility

we remotely. and We component hybrids or important we off-site have hiring to hire them training develop employees supplement existing subcontract help is this manage on-site skills. to clients and An their local where provide employees the on-site XXX% remote, where the to we program

around changing is larger and are that hurdle Their outside second base. The client hospitals revolves the specific the pain vendors. to greatest challenge CPSI proceeds, typically

the financial RCM more and fear, target for because dynamic them of this struggles experiencing combat proceeds idea vendors we changing significant To that becomes hospitals are palatable.

TruBridge TruBridge lifecycle. to with one-stop, of vendor challenge is more the RCM can partner. able across be their services of its many range hospitals broad that managing face end-to-end also than one address RCM

strength that working this seeing the of months last of the closing third this since having the million the have traction quarter in greater TruBridge than part in with year. we're We based confidence three a first than $X and recent contract more we've pipeline of on the strategy the doubled been in the

you as client reality opportunity rates focus market, are retention catalyst the also government one no to services TruBridge. was is buying and with community that all our our slowed driving businesses the cross-sell improving within market program strong in This create sales aware, system longer EHR of decisions. behind keenly maintain through our order acute The is stimulus experience additional

community as a continues know pipeline, that that proven help can support hospitals other to hospital. build the work and them with deliver a they Turn a as simply over competitive from that these for EHR looking are vendors will needed will partner small our provide

care one is balance the tight community. of they margins along keeping never vendors for health to decision pressure community with in as The an switch easy hospitals their local

believe support imperative including we maintenance pays the our challenge, the ownership a this model is intra-subscription as community made, percentage system, a balance win and also that provide that of To sheets, for to and office be our and to flexible hospital's address models level. continues preferences accommodate rate healthy outsourcing TruBridge. to pipeline strong decision collections a it's come our business services Once remains with from at our

weeks Two move chose hospitals three we CPSI. ago, that announced from to to Montana

was a One of which returning client.

in receivable have still last additional a to date services bring third In fourth the our for helped the than million, larger for we with QX activity TruBridge more closed we that an week, and quarter. welcome to also sales addition, our upmarket Montana together hospital play deal from bookings just accounts $X

these competitor systems, since which greatest doubled EHR especially Examples, is has reinforce timeframe, acute time this elongated XXXX. our such as than at for our the more position decision that

our Finally, quarterly booking's a we results in believe from bookings, perspective, small a percentage of which in top of results; solution experience our while decent post-acute product continued settings, This including the workflow of representing progress post-acute important focus from care a represents to we strategy saw across facilities. our line user sign positive first HealthTech. of coming increase an our improved provide American and post-acute integrated an and long-term also part delivery an with our is

clients CPSI only In May, of companies. opportunity education hosted an also newest our Real of shared provide than Get was across National strategy of San acquisition recent we not solutions family our are quality our included engagement from to product for in patient but where the across Antonio, result Health. our we Conference vision of which welcomed and companies, which This we Client X,XXX more attendees, family our our

for more engagement, an Get Health that enhances I'd strategic Health. the of acquisition value-based reimbursement the a Matt, this demands was model Before Real patient our address like I of and to ability care. solutions transition outcomes-based trends growing Real and provide disease turn and over chronic Get to help improve health into insight around update that to management

in They that the Health and domestic have care delivered markets. Real their products a value big engagement company of presence punch terms patient a clients. is Get health to international small packs a established their both that in proven have

Health, collaborated of delivers U.S., NHS like Keystone to Get with organizations and and Outside Real that Information government and Southampton in the solutions TELUS The Trust Europe, organizations University the Health private Hospital Australia Health Exchange. Canada

is areas three new go-to-market solution being a with identified expect our to cost portals, in which around will our synergies, Get portal of additional which portal clients $X built cost for Health superior addition, of first, we focus: to Our save part the in savings. existing million the is previously Real value and strategy migrate to we deliver our clients will

from tool management a The care second Get has Real focus area that Health chronic stems developed. of

clients. be management of line offering acute new as around our will as the into TruBridge tool, well this directly sold care under With the TruBridge -- services wrapped business our net base chronic to non-CPSI EHR

will new long-term. This their chronic patients or help care the program, service setup enroll management and then TruBridge provide for the program maintain

under this care our the additional client our Service into accelerate base. Chronic brings client Care also umbrella this base the new chronic of model We service subscription pipeline nTrust a interest. model The may acute our to that come Management acute from deals help management cross-sell will of value that new interest healthy

sell focus our from that sonic -- TruBridge. to we pleased hospitals clients of and towards own separately strategy not had Care contract may larger first go-to-market their because Chronic will program, that Chronic those be need third Care two area needed hospitals services, are Management Service already Care will the Chronic accompanying had the manage we Management And Management month announce scale finally, TruBridge geared service. without and the our our to resources We tool last

open of the has significant outside for English-speaking presence Health marketing Get door the and opportunities sales countries ongoing U.S., also additional system. Real help that in our the will EHR to With their believe we other efforts

means health help care both an our creates Fitbit actionable in EHR. understand closing, tracking care the from easy real mobile and provider devices, data such engagement from to information and apps In all and health tools applications. with the direct patients' clinical command information new for These patient delivered monitors iHealth a existing to suite from mobile to patient, make and as time to

available to behind client not base, the sources. being them Health, in coming helping time them We innovation of this front of With is delivering have CPSI right their Real of right strategic importance to unknown the a to different Get making the from full-service acquisition and solutions searching out stay partner that do understand our our way. they the of burden so clients at change

I'll turn look over for that, a Matt With call the financials. to at the

Matt Chambless

sure everyone. additional performance, to GRH, the today's Thanks highlight, of good quarter be financial and on some call Boyd we Get On additional detail themes the period's for I'll through or that level including our and major results. a by to Real, metrics want followed some bookings acquisition nonfinancial high around color walk afternoon some cover

a slow first of our based our quarter, as conference Client timing As out. our second has challenging growth National we performance made remain Conference the future as pipeline last our pace pointed making on shared on Boyd and we the bookings And expected. strength for prospects the while continued, excited this about of has call of quarter decision quarter

decisioned our $XX we've to have All and meantime, through improved but of in flowing not made income the XXXX. profitability In during been million CPSI revenue and increase preserve to face are cost XXXX the million strides profitability which allowed towards fluctuations. $XX million of has statement, identifying by savings $X only during

of million XXXX increased X% or EBITDA net increased have X% income our are has and from down basis. measure or nearly in on $X.X quarter XXXX, second non-GAAP categories quarter decrease revenues has compared of decreased to X% included Expense in while a EBITDA second a Despite of year-to-date XX%. XX%, the million the adjusted $X adjusting

financing tailwind are has X%, adjusted and cash From receivables, with from increased a XX%. cash net flow, financing with headwinds while has to non-GAAP abating flow. This coupled has improvements revenues receivables our in profitability year-to-date higher led income increased XX% net million $X.X perspective, similarly significant a contributing EBITDA to down

quarter operating cash flows operating our the second January in highest million second the of flows The in the XXXX, than doubling XXXX Healthland marking more quarter since level of of $X.X and second million, cash $X.X of during acquisition of saw XXXX.

million cash basis, This the purchase bank last by in our roughly on to $X allowed a $XX flows of On XX-month $XX.X trailing from a funding for reduce boast million operating from XXXX, price basis million debt this has we to us GRH this facility. XXth, over trailing year. XX-month time cash compared million June now strength flows despite at $XX.X improved

and and opening opportunities Speaking of contribute focuses; directly and strengthening the created. markets, engagement international particularly platform, GRH, products, acquisition of strategic CPSI's patient three has market the to expanding growing about GRH's EHR excited capabilities, the Canada. we're TruBridge's technologies relationships the

licenses, makes that for was recurring, Financially, subscale lumpy revenues small GRH a from business subscriptions approximately of and a mix XX% results. with frankly, and with pre-acquisition services,

TruBridge's like expect Care We Chronic while products that we its business the and into integrate technologies to continue Management build Service. new

date of accounting by of the adjusted quarter ASC contributed Since an in XXX, the application $XXX,XXX new of on loss to standard which were of second effectively $XXX,XXX, our results EBITDA half acquisition, GRH recognition. revenues revenue for cut the

the Inclusive we adjustments with range that the could related EBITDA deal amounts any of $X.X XXXX for of GRH could depending the revenues in $X.X in results, pipeline were easily revenues, the to that timing, $X.X fourth XXXX quarter to deals lumpy ASC or of of year-to-date number. has GRH large some produced XXXX. something of of XXXX million, loss XXXX the double million first potential into is non-recurring million of fall and and Because range similar to revenues outcomes see quarter from wide, an prior that pre-acquisition XXX. on fairly

year fiscal GRH's opportunities to on reasonably contribute That performance result, significantly synergies contribution adjusted XXXX to pipeline. timing a said, moderately currently be depending slightly EBITDA full negative positive. existing increase contribution full for positive and that before to GRH could expect with for the of the the As EBITDA the we

with such partnership look in advanced We like opportunities, continue announced Centre and our tuck-in for to Sunnybrook Health other strategic initiatives. GRH May Sciences that acquisitions as the

rebounded $XX.X increase performance, bookings the million in to $XX.X total total posting XXXX. an quarter but sequential of bookings the of X% second from the results, million slightly Turning bookings below overall first quarter's

saw business business acute strong mostly our XX% care segment. The to improved increase, deal EHR due software of new flow our from for sequential a side post-acute bookings and

the continue care to acute That extended Boyd, serving as decision to XX% decrease primary by pressure new from time with and second of said, lack in quarter our system in business urgency, a XXXX sales frames of bookings culprit. EHR the apply resulting support mentioned earlier

in the our the our bookings from of for $XXX,XXX bookings in included TruBridge mentioned, are continue and Boyd XX%, feel pinch Xrd, a resulting sequentially, to reported XX% which quarter, hurdles family companies GRH, year-over-year. of on which that TruBridge of May declines contributed joined bookings.

revenues million and million date in and million Of install with months. lag second million next revenues, revenue included non-subscription our subscription to trickle of be in into quarter bookings, and and an our that six to $X.X between weighted the five $X in start $XX.X an support should months. system the sales lag with average XX represents booking $X.X the booking sales month, to roughly is reported install XX over over average non-subscription six months, to sales, the of between similar five period EHR five represents a average years next of

recurring TruBridge million four six to starting a $X.X revenues from are of Our to be over of next one-year all recorded bookings period, months. in nearly comprised the

in acute of care the to sites metrics, product non-financial in compared previous three key quarter second quarter the per As six customer and live four our XXXX. with went Thrive

this subscription XXXX of were one first in quarter quarter second to the and period's lives compared each mix, three cloud for As model a go of XXXX. of or under the licensing

Thrive The quarter go had the XXXX. to scheduled as startup marked second second was X than shifted six the the lives third facility during of for quarter we anticipated quarter a less previously

solution new expect cloud our this facilities go with expected X to third Thrive quarter, six go live with to the client a in At we in time, environment. live

Our decrease X% is employee March June roughly from X,XXX, XXst. of roughly headcount, as a XX,

service the financial during of TruBridge our the increase over receivable X% results period, by $XXX,XXX Strong quarter. for posted XXXX. volumes sequential GRH of the revenues the were with second to results that contributing accounts sequentially the Turning X% and TruBridge up quarter drove management

Compared throughout in of our resulted bookings or accounts X%, increased performance to while months services $XXX,XXX the XX second the XXXX, management our for trailing quarter strong RCM receivable the solution TruBridge to services hosting showing with increase. for And increasing division revenues drove by XX% or X%. a managed our insurance services IT services $XXX,XXX another $XXX,XXX continued strong revenues our or demand

decreased some quarter. quarter, volumes XX last had patient customers a months our the consequently on and noted have revenues trailing their decisions of the we TruBridge larger by As that few seen made for operational a impact negative related

were particularly management against quarter, decisions the growth primarily for services. and the locations, medical operational the lab of certain coding to of million TruBridge These underperforming receivable our closure creating revenue services related for $X in curtailment of headwinds accounts

decisions Without year the fourth we these aren't results and next have for anniversary would the headwinds related quarter organic volume declines TruBridge These posted these the to second growth expected quarter. to X% so headwinds, expect XXXX. prior fully continue until of customer against quarter,

from Sequentially, of XX%, quarter XX% TruBridge gross reported the margins remained second flat at XX% the -- while margins XXXX. improved moderately for

As a GRH $XXX,XXX TruBridge to for contributed cost of sales side period. note, the

Next, million to $X.X system MUX-related as the in $X.X million, the quarter in second decreased first support quarter. revenues revenues sequentially, from and sales million $X.X decreased $XXX,XXX

over add-ons million strong compared revenue Non-MUX first $X.X million quarter million exceptionally -- add-on decreased was $X revenues a average as $X an in posting in eight quarter the quarters. the additional previous to

we as decreased Year-over-year, million, $X.X nonrecurring work down as $X.X were mostly million, quarterly naturally this revenues opportunity. MUX-related revenues down

sequentially, cost-saving resulted incentive cost improvements of support -- of resulted system lowered with expense $X.X software costs and X.X% million in payroll costs. initiatives mix have decreased coupled improved Year-over-year payroll were initiatives improved X%, sales savings sales or saving cost as in costs. cost or as as in cost aforementioned yielded and lower the $XXX,XXX down third-party Our while hardware compensation

were in year-over-year cost XX% first outpaced to improved compared XXXX as in second the margins revenue XX%, declined quarter decrease of revenues. the Gross margins while XX% the for quarter to despite from XX% improvements

development costs compensation largely incentive area. in were year-over-year. development by offset were sequentially costs and flat this of expense GRH Product essentially product $XXX,XXX decreased

payroll GRH. costs costs marketing the program year-over-year costs $XXX,XXX commission, only in $XXX,XXX making increase than up GRH $XXX,XXX with marketing as more administrative marketing decreased the and of decreased sequentially Sales and sales and General offset from expenses. quarter's and costs and sequentially, $XXX,XXX increased

costs. increase As Client in mentioned we sequential in previously, Boyd our a related resulted in hosted which National $XXX,XXX annual in Antonio, May, Conference San

Conference year therefore, Client National was planned Our and expense. held a is each

note, accounting XXXX and were legal Offsets anticipate our $XXX,XXX increases second the hosting a National in fees. to Conference As we quarter of Client these decrease a XXXX. in

$X.X planned employees. benefits as $X.X competitive other down a costs costs Year-over-year decreased severance health million costs employee XX% increase have due design while intended changes still decreased $X.X in and charges to drive to to nonrecurring million million, or despite providing our

the tax XXXX. our Lastly, XX.X% income during effective was during line statement, on tax XX.X%, first -- was first rate of quarter relatively second the during the in rate the effective quarter the quarter with

R&D X% benefited -- by acquisition GRH by the rate effective tax such from notices years, estimates XX% associated non-deductible stock-based prior the during the with quarter. as tax effective items, and while collectively, rate state increased Discrete tax tax shortfalls state costs from the compensation credit

to closing, our customer we feel slow optimistic obviously and made base we cross-sell about In growth sticky more particularly do progress our in quarter targets. decision-making and loyal in have about growth environment increased some and flows our towards to profitability the pipeline, we've this topline long-term Nonetheless, work for stronger, the diverse cash within reach and prospects. opportunities

We the taking business, of and our growth core leveraging helping and continue on our communities opportunities their stability to our thrive. of focus advantage clients

we'd with for like lineup open to that, the questions. And

Operator

you. Instructions] Thank [Operator

Garro from William comes line question & with first of Company. Blair The Jeff the

Jeff Garro

good you on the on within it having deadlines market. what's regulatory start and prospects how off pipeline? the one changes could side Maybe through maybe think question. thanks about hoping control I'll the for are And the related with your other Yes, that to afternoon it, help I of decision-making? end and moving much taking us then keep was

David Dye

here. David Yes. Jeff,

except or decisions we The an the environment. nauseam first the regulatory that, mentioned the MU there as exception market, now, really with that's your the fact post-acute lack anything part that thereof of longer have any question, for no we've of right driving isn't

there's solution certainly year that changes the October post-acute course, not reimbursement other needs major addressing some driving they meet AHT if are But their minimal they'd to may some been like world, in perspective. and -- of relatively Xst effective those that So, a players that's the feel to are go because that this have a from concerns. market

the was question? help our answer second no. your Essentially, to under your control summary timeline? that the to Do And of the we the part what anything second part is, have question with question -- of

that and this, when with base of it's doing the their marketing a decisions such organization decades make sooner. of in a what push sales at we're that contact in on them. be job to way proven and our people make minds In a to to the decision customer customer for deliver forefront of ineffective they are based ready try as and can awareness our base and company to our to It's do be potential

Jeff Garro

Understood.

So, maybe little down that try to expectation. of a bit a quantifiable into boil

have still a to during install to on about talked appropriate of guys an good XX facilities of that annual expectation a year? facilities basis. the You new XX an been Is installs number for number

David Dye

next maybe Yes, We're of based that, range. had right is year. A now, feel in we that the do still feel it's still lot realistic on still that about the see that to success feel on achieve XX We that the good year. going pipeline year this based course, good of closer as we very more to well. we But level. last we what number around to --

Jeff Garro

I'll Great. side. And gears TruBridge the switch to maybe

of could Or there. maybe representative base a could creating decisions be of whether Maybe operating as customer a discuss TruBridge discrete bit were those business? the that issues? client that operating the decisions headwind of could client some about impact talked You whole you a more there kind

Matt Chambless

Yes.

larger and our decisions of had on decisions call, of this it's just with are can throughout the more pain the say Matt. impact I growing that given services think indicative Chris that -- P&L which place of population exponential out on but our size. come this Jeff, our bit operational It's pushing customers. of somewhat an have handed facilities earnings -- these take a that is a along I last there So, -- wouldn't where potential that TruBridge when upstream and in kind twosie onesie do

somewhat wouldn't would I say view it's being isolated. symptomatic and it So, as

Jeff Garro

Great, And TruBridge. on that's up me, following last helpful. for

the I that selling You cross mentioned to really about the excitement TruBridge. assume within company refers opportunity. have to

base TruBridge need to within update So, kind overall maybe from your more of penetration on the management business client of your adopt the and services. existing clients an

ChrisFowler

Chris. this Hey is Yes. Jeff,

base So, onto RCM. moving clearinghouse from from legacy platform of standpoint, billing a TruBridge-RCM we're electronic rapidly our customer TruBridge our

new some say, And every deal RCM I would TruBridge a to deal every along portion hospital get in -- that of XX-ish that goes those with getting virtually that. we we're year,

as So, a that's relates opportunities. of there no-brainer to along kind it tag

look then services. convert and medical private the have pay management, onto huge service, still full you When coding, thoroughly the to customers those the opportunities into accounts down those receivable out-service, we

both like hangover the and Obviously, nTrust. going the elongating. tag a Boyd big little feels now -- EHR that, it with referenced initiative that of I from right we've bit a got that a there's of the on Matt is And kind think decisions

a apples. to I apples think to opportunity to scenarios in think that the are to somebody better just we driver the force not allows value-adds like in through Care to Management something, that there's now us Chronic regulatory to not take do to they're nTrust I able be that situations Service, bring or replace that do getting break. enjoying

office. now a billing So, hospital our has right

paying it I be am compared dollar I you. seeing as would now what they're just my bottom-line, a collect right paying to So, on what to

So, in Care the we bring opportunities well. would revenue bringing additional like to Management where Service Chronic as

But to But some continued obviously, see that. continues I we're how early think going we're grow. momentum to to around that excited see there.

Jeff Garro

hop That back queue. I'll Great. helps. the in Thanks guys.

Chris Fowler

Thanks Jeff.

Operator

The ahead. the Wells Stockton Please next Fargo. from of with question Jamie go comes line

Jamie Stockton

couple. Hey Thanks just questions. taking good evening. for my Maybe a

that'd there. Can are your over great. guys what us just in competitive business, plans that insight do The private have obviously, start first you of one you I you mean understanding on from what seeing with any be athena, if things marketplace? what's them equity there the into environment, give could changed to the

David Dye

may any But second -- probably not active you Yes. know have part they're you us. opportunities. hear from than know I'd in as you rather there better definitely new Jamie. heard on sales and But that probably

not trying to that customers. versus any If They it's continues are current an a in they're and cetera. pursue to MEDITECH, Cerner hospital to making be retain system, on us It other effort active et their opportunity.

increased seen have among their activity We customers. current

may little But be summary skittishness bit a think of would of I the that to my situation. hold. future as a the what

Jamie Stockton

that that's great. million sounds from other maybe just The It Okay, about numbers here? were it guys costs from million QX of Is the kind Get QX the tight. assume is like pretty $X And the synergies saves or you cost were on fair $X of then maybe Real for outside -- go one, of quarter one for cost $X that saves the annualized was there some that of still of to reflective to Matt. Get us the call. cost Real in number, basically Is talked other expect million that you Health. saves

Matt Chambless

Yes.

rate. flowing the So, P&L. cost identified savings about all through quarterly $XX nearly have still of $XXX,XXX Jamie, on the there We run million we're total having of

that $X.X So, the annualized, start benefiting million QX. just P&L in

I remarks mentioned EBITDA opening my year-to-date, expenses down million. $X.X that are in

and So, post million. to the P&L run $XX million, starts quarter, home annual $XX.X for it the that annualize rate add million $X.X if gets you math that benefiting in third which the the you

Jamie Stockton

you. right. That's All great. Thank

Matt Chambless

Thanks Jaime.

Operator

Please Stephanie with go the now line We Demko Citi. ahead. from question have of a

Stephanie Demko

Hey guys. taking questions. my Thanks for

a as about if the do thinking through the given rest XXXX, year should XXXX? the how cloud just of not we think so environment, baseline mix bookings about And business, revenue? for Just of come bookings the recurring

Matt Chambless

Yes.

on So, us. sales of tend most opportunities revenue come do for the Stephanie, come -- the does of the naturally, the of nonrecurring side to house, does particularly in -- booking, system form

go as revenue a up. So, as recurring of down, percentage the comes overall non-recurring will mix

were recurring year The us million. that So, growth of dramatic there. makes think QX curve gradual $XX quarter, again, that this past would expect on increase revenues and QX next

towards movements staying non-recurring overall mix shift in recurring. relatively bookings certainly can So, higher stable, that with the sales around

Stephanie Demko

Understood.

are? second the as Is to opportunity could at given how challenging, bookings on the of think we look there's backfill of going just So, more be the an about where it Do out think you to year? the growth we kind half years?

David Dye

the -- bookings perspective. far the are we've lot do. a with year, this Boyd We mentioned of way Obviously, from challenging work quarter-to-date bookings obviously, so of Yes. the to that half we -- a first quarter. it's performed plus $X given our million where we've in got Stephanie, left

But the we of end as the the we shortfall booked based the overall our quarter fact end what of first as what of think this would've and internally. quarter target of we booked more rather our from increased on second and what than year to that that the would of the pipeline compared significantly was

just So, we to perform the it. opportunities there is obviously, up to, have to to close

that then close the lag frame that to hope means and of appears And we deals ready these time that and they we've it are experienced, some are.

large we we perspective this of rest hope a year. So, XXXX through to it the really how on -- perform is sales that to achieve in depended growth now in part our growth -- answer your our question, from

Stephanie Demko

Okay.

walk patient issue. I hoping like You're solutions I and payment last the kind innovation through think then the any demand, just talking and of onboarding, anything like onboarding that? a And seeing us acquisition. portal of consolidated the would forthcoming Real you one the one Get Health for was solutions timing portal's me, a patient

Chris Fowler

Stephanie, is this -- Chris go ahead, go Boyd. ahead,

Boyd Douglas

No.

You go ahead.

Chris Fowler

a So, we or be Get partnership Real a to set, still add Obviously, we're also a development. Real complete from very from some There in services have innovation bringing not standpoint. base from set some our the an excited current TruBridge did that things we offers to offering Health solution that'd adds current looking strategic into standpoint. with from about very internal Health the EHR Get whether look solution but in and are continuing that are not to just the

to to like some So to the put technology when opportunity able obviously, if from patient we're go seem that capitalize It that's to really there. services into doesn't for about a us us thinking anybody be able that together there's upmarket, being there's engagement. from and side

hopefully, very the just we that it's where to Health market, soon quickly. see all pieces with which not but expect those be should to to we setup could Real something a relatively able matter coupling that Get that to we're is So, that way today, of action bring together there

Stephanie Demko

it. eye for taking questions. Thank appreciate my an for keep you I'll that. guys

Chris Fowler

Thanks Stephanie.

Operator

next the The line Ott ahead. Oppenheimer. from comes question Please of from Mike go

Mike Ott

today. Thanks the Appreciate color questions. on my afternoon. for TruBridge Good taking all

Just curious single-digit year? growth revenue this still them upper you're from if expecting

Chris Fowler

Matt, and finish I'll start want it. one you to that

Matt Chambless

Yes.

row So, to upper yes, get naturally so two climb hill steep to a to in -- single-digits. for a make quarters the does

to TruBridge somewhere X% we're this So, between X%. thinking year realistically

Chris Fowler

Something to Mike. in add there

it remarks; that Boyd's $X in of bookings I was we all we cleanup one of expect the that year. weeks similar recognize year ago, $X last that announced opportunity is this was we a it half think I second is in closed the that million to to that There a X think quarter-to-date. project million

also way are upsell is standalone excited the the growing. TruBridge's the very the market, pipeline TruBridge We -- about

like nice big but some signed, onetime So, any not deals incremental we growth just one the through. coming that should that see we

Mike Ott

Thank from with and to Chris you you Microsoft And very integration Clear, you. if HealthVault? helpful, Matt. then also on get wondering recent expand hope GRH's what could

Chris Fowler

population. portal from I continuing think it's patient -- and standpoint, from making just product So, and for conversation the available that our about the the more the

and our more with one just patients way it's our to systems. So, interact services for

that, they're as be hospital -- So, that on health it's personal to brand and patients able the market we'll to is what portal. from capitalize as and I giving about changing opportunity us thinking for separate that their as way to the their think business make their their Microsoft another see

Mike Ott

very Okay, very much. Thanks helpful.

Operator

[Operator Instructions]

of have Hooker from question Please KeyBanc. ahead. Donald with line a the now We go

Donald Hooker

afternoon. Good Great.

-- don't aligned just from MUX headwind the license understood being up the properly step-up -- that understand another with is I I XXX? so leg there down. then we we be make Is -- for we're just there the thought third sales MUX these so that with sort sure software of quarter of And might sales timing for revenue. a it there the of big I Just

Matt Chambless

Yes.

on just To-date, just about $XX.X to million life Don, where MUX-related of recap we kind Out recognized date So to we've of over $XX of are of revenue. MUX. million. bookings

still all see remaining, sales somewhat So, do $X that's close dependent. obviously obviously, we end the perhaps of opportunity incremental But of million that to but opportunity. nearing nearly sort maybe we're

$X.X far rec frames majority potential the Bookings that were in the are extent quarter to rev that QX regulatory opportunities that the overwhelming doubling materialize. knowing of we time of timing this past amount. to expect bookings million, those as just as remaining fall we on opportunity so But the see, to the remaining roughly what the QX

that a So, that. far as million as frame between bookings a that time we're us, on still optimistic to it's delivery good $X rev frame convert very the compressed for potential in rec to time of because revenue portion QX could

Donald Hooker

financial the Got down. receivables you. terms were flow, free And strong then obviously, in cash of

if that? or sheet have still released. to on amount happen? financial there that go to And would receivables down balance us an held opportunity those -- can a about that of love to fair to there's the Can being talk receivables you that to There's continue is left. hear You up you'd balance lot could to a there financing anything be cash -- receivable cause of do for

Matt Chambless

is a news the action have has any portion revenue good these there XX-month lot MUX-related the still on that XX that that balance a been We the show sales. parked receivables. with cycle financing positive but Don, part in of over there's not Yes. so months in up current natural these our largely just sheet on MUX of past payment plans the really

financing contribute do we MUX, be work on once of the kind year expect to going neutral we forward on that item. out cash. we And So, onetime opportunity should relatively this receivable remainder of for the

Donald Hooker

I Real The general and for Get XXXX. is bogey in up or XXX, there's Was think Would there. mentioned Okay. pre-ASC that -- assume I in move But me. million? XXXX million XXX? I is there it's that And ASC lumpy. -- you trajectory it'll about the know maybe And revenue that of $X.X that of growth that down and one $X.X last kind think some to XXXX. were question XXX right upward million is $X.X But ASC Health, and

Matt Chambless

Yes.

GRH private So, a that was under was ASC company. XXX.

and we the haven't recast XXXX, XXX to undertaken numbers. restate them really So, XXXX effort to -- for became beginning effective

Donald Hooker

that's Thank Okay, fair. you.

Matt Chambless

Thanks Don.

Operator

David ahead. Please Windley go line question with from the next The comes of Jefferies.

David Windley

Thanks kind Hi, question. for My customer of is profile. afternoon. my good question taking around

-- that. or not motivated at care. kind point I'm by Health and or clients to them. become As of prepared the you about or entrusted management the typical interested figure cut Real of all which population your in I remarks value-based that Get earlier context the it's in in of your profile talked sensitive

or if interested bed side, to wondering get in or size need a just -- profile in And a that? where there's describe that that a kind typical you be could something that of interested they dictates

David Dye

that. that a of any profile there's for take don't hay I know

far moving that size them the obviously are are that a more some quickly As progressive are anything, the ones bed or of -- towards that ones more hospitals. as

us, got Obviously, to service majority and ready things, then And probably with and customers of with adoption and new progressive the care. the value-based into progressive lot forward-looking else system like everything if behind. and system, of TruBridge the dive also and with lag a obviously, you they're

value-based customer think smaller general, say penetrated not smaller as it are larger to facilities. hospitals in safe base, I the care And our the typically near with that certainly -- as the

David Windley

you Thank for that. Okay.

Chris Fowler

add a Chris. there. just to David, This is bit little

is Get hospitals X% note, you're where too -- roughly of At XX% thing from volume from was Conference, feedback the that that cut. a our other about our is that The the got that amazingly have. customer So, it a whether acquisition there, base or some positive. largest Health we there around of size as had we customers we of was National Real smaller our and the of thinking

there organizations patient from was all standpoint. of out doing our that, what in they were found we what a a regarding conversations were lot happening of And engagement

on a that, and can needs it So, it were a the it's something help using about early we happen think and TruBridge to bit bundle take a they little that. right decision service across we've I this that to were them still successful ability little something service forward they make is or look for -- think to which be that I I our the looking board, and and as to whether them thinking it's do deliver why seeing that so to to bit do on line, as timing a or think forward seen us to over while it's pulling them time of doing a up

we're think that. for to in demand the cutline see going I no real that

do think I becomes cut deliver to need the they're it if that to stand assistance TruBridge can base. whether they the those themselves While via customer something it's going operations solutions or to if up to their

David Windley

I appreciate elaboration. it. that Got

Health the patient outcomes-based to so follow-up of I three engagement, a remarks know of different Real and and chronic disease kind prepared disease, as management you things, full-ups stuff. kind care-type of that So, the not big, Get chronic kind to mentioned in that triggers. of

is And then be outcomes-based individually? reimbursements, one the then so, of and of those leading things if that can follow? rest And engaged those kind is way the there

Chris Fowler

We're question. a Management a customer the go looking office chronically to Chronic be an at Care presenting and existing interesting to so the back driver to more an in you outsource business It's of base a for example place has nTrust. the we're where hospital in the that. Again, option

first forward. bring that offers step costs Chronic change little what's value-add just The to at to ability the to today and just a apples Management to The in going bit. to apples us Care to look compared that is dynamic math their the cost

thing years to may care pushing Care not direction But that the or organizations. obvious out government from now. the is five four that it's Management the the of the us is be going Chronic

services patient through help is start these step so and this good And through a the the hospital, first for to that additional process. engage us

that's think internally. I driver big a So,

the the facilities bring and we think think to services for engagement us the for outside look platform larger in on that can a additional business think that competing when we're we is with, I stand portal for itself I patient I the way great market, up.

that more delivering put there. manage as we holistically look patient patient online that to payment where to solutions other allows for portal having the at for operations at us the it or -- seven the the successful an out they a relationships portal be using early engagement their hospital various So, tool would payments versus to as system for for in a

equally think about So, of But depends we the would all I market it say the of size driver of the what excited on we're them. is.

David Windley

Thank you good. Very Appreciate the it. answers. Got it. for

Chris Fowler

Absolutely. Thank you, David.

Operator

the turn you, I'll at and/or to continue time. are this closing remarks. There questions now back the further call with no please presentation

Boyd Douglas

Yes.

want for the interest to in thank rest CPSI. a today. on I call your everyone So, of appreciate We Have great week. being your

Operator

conclude for and your the line. thank ask today. does your participation We that conference That you you for call disconnect please

TruBridge (TBRG) 9 Aug 192019 Q2 Earnings call transcript