CPSI - Earnings call transcript Q4 2020

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Operator

Greetings, and welcome to the CPSI Q4 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Drew Anderson.

Drew Anderson

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

of results we are regarding that and pursuant currently make expectations this XXXX. management Private a may performance. differ During risks, not annual call, limited expectations Act Reform XX-K. from known Exchange or statements and including not forward-looking Harbor of results Actual that information materially most future of available statements forward-looking releases filed report Securities our such on to unknown Form reflect Litigation Safe public caution and factors, reports constitute those might and upon by future such statements predictions Commission, the implied with made you guarantees based those including to forward-looking We provisions expressed and the our Securities any recent performance described uncertainties plans, and result but operating or and other statements only in as of the

also after date information I our or President call the statements this events this Executive of Officer. time, of Chief and developments reflect revise to Mr. investors At sir. forward-looking ahead, will as call. in no only outlook this call the this turn Douglas, represents any We the now we date to provided over Boyd update Please that to obligation or undertake and forward-looking caution go

Boyd Douglas

be Chief of Dye, to and comments, our take questions. our joining Financial fourth beyond. thank our regarding us numbers two and over Officer; for our everyone us. my Officer, provide Chambless, afternoon, Chris prepared your discuss our Fowler, you our the Good and year-end along will Operating will the and additional Officer, will Chief with Chief Drew. call and comments, After for Thanks, At the to quarter Matt available of XXXX who color conclusion I hand David Growth expectations

for fight and like recent and the sincere would their as aggressively hospital, In and to never-ending efforts pandemic acknowledge customers I check-in ICU our appreciation tirelessly beds nursing with home the our of to clinic essential hallways begin, I communities. simultaneously rollout elderly Before continue overworked efforts community calls of and clinicians, nursing with heard on descriptions executing along while residents. workers all leadership, for have hospital overflow vaccination I and and they shortages

We are the next looking year to end, what We framing beyond. providers challenging and partnered return. end healthcare our spend and total these going with up in proud shareholder beyond XXXX New the focus pride to be forward their our to time future enter this that holds in heroic increase communities. afternoon, XXXX execution To Year during to with some a I'm what's and for CPSI strengthened and

heart, crisis to Although strategy. using sound waste taken [ph] have year cliche, the reassess it may an a as the mantra past never company opportunity growth to disruption of we our

safeguarding in purpose assessment During months, path gross we stewardship, for also of sustainability the as identifying footprint other to strategy more this employees. maximize was a CPSI's such and review critical interest have business and premium stakeholders long-term consulting in growth several to the and and would that The clients our our drive to post-COVID define a clearly success world. of us the and our shareholders opportunities our with to best value assist past increased partnered while firm a

market through with client growth that base drive to way. along is significant our opportunities our business for upside optimization adjusted technologies growth current core fields intended components most the intended EBITDA growth margin Core are in pursue in and plan next that along markets $XX optimization initiatives innovation. simultaneously. healthcare Our three is new investing end confirmed attainable and three growth, XX years to share EBITDA. outcome includes plan of and returns around our to The utilize higher our an the over valuable help of our important plan aggressive our is success There and we in equally and component will profitability. improving asset, overall acquired drive initiatives growth that our penetration identified will four years, core to of the the goal several demand, provide culminating targeted an three this yet grow while of assessment tangible margin concentrated core component core shareholder have current compelling and The in to in we XXXX. The play. in The XXXX million adjusted

First, our will EHR substantial, cross-selling continue acute basis. our into services TruBridge expanding post-acute by we established relationships sales and

at CPSI, [ph] on from this our needed opportunity page turning look great. is not to this to execution good improve we While initiative the

end a of total With opportunity of XXXX. annual in revenues, in of target annual the the million by TruBridge have efforts market $XXX $XX million revenues we through cross-sell incremental confidence in

their of XX% managing Second, operations expect to facing patient increasing estimated to we pressure accounts RCM self-pay COVID-XX, hospitals see a the and still hospitals are our EHRs, confident share and up larger entry use expanding with our to market impact systems. of that increasing financial an in fluctuating due of market, those shift to continued in-house health including continue TruBridge hospitals competitor remain outsourcing ability providers and we volumes,

achieve up TruBridge bookings setting million, on this continue XXXX billion million this in of total $XX than to the end from of Total $X $XX.X by of annual our attainable. incremental annual from is XXXX the in a target goal. execute revenues, segment course solid addressable totaled us our With of outside more XX% base over XXXX EHR to and TruBridge market outside revenues

is to growth of across our growth plan retention they base The pursue and of are conservative core maintain rate EHR our EHR as to driving a TruBridge. third clients with initiative new cross-sales healthy critical

closing rate. confidence historical that acute confidence rates see recent with to our XXXX, record support approach relationship-driven with a will will we execute on with with line we segment that XXXX maintain and client us clear additional then of consistent maintain pricing along XX% find continued we improve in we what current gives growth. abatement continued EHR business, use in selling will new single Supporting a retention the routinely on to of our net of we initiatives solution levels the win that EHR pressures efforts our increase on sight modernize Our seek, average retention or prices a of delivery that consistent savings our growth cost wins. our and and track core these experienced efficiency in resulting invest can Based

million towards of targeted target three optimize $XX by to years XXXX. Our cost we seek operational further XXXX of supporting as million next execute savings $XX over margins, our will initiatives adjusted the EBITDA

to and optimization dynamic The first with leadership is faster our realignment The our that employees. today's that today asset position help efforts impacted more optimization intended closer flattening organizational to in efforts initiative frontline by filed our and decision-making our we with a X% of spur to will create eliminations. X-K organization an bring organization margin to our customers reflects date this our employee base by nimble

certainly work. By to our X-K million $X.X results. our framework to to While difficult reach with in they savings place have CPSI the financial filing we actions All cost how organization, to of a begin the in million realigning annualized in necessary the we goals. transformation will XXXX's for today's impact $X.X improving bolstering were these long-term result were announced told, essential decisions,

and efforts. XXXX partnerships pursuit standardizing by function, new The our and uplift representing productivity [ph] We levers patient innovation outcomes drivers ensure vendor automation of EBITDA increased and components growth our are adjusted further optimization engagement, include $XX reporting to new defining adjacent component technology. are components will incentives insights, and market core lead future. in our offshoring upside and on to million. establishing on analysis fuel that of by additional may core Running and growth growth the to the strategy present analytics for dependent to Successful to execution efficiencies the plan processes with margin growth us and of expanded in activities opportunities desired aligning reassessing opportunities. the parallel our roadmap margin appetite these a targeted that an would clear our future and be industry achieving provides of These optimization

have the in the window new other of the Real English-speaking business our In change Health to ourselves we help opportunity recently and our successes orchestrate associated a that patient a creates in excited governance way, progress and risk, our This team traction visibility hold take continued to to formation support along for celebrate and of Office expansion and East and one and along transparency solutions. within most our Middle into experience will accountable of countries new plan, Canada, As to Transformation transformation, drive announce and Get are time ensure drive the long-term our company-wide partnerships the example, expanded helped investment to any way. ensure of along CPSI. the we with efforts Management order

we will share too course, key quarterly, - with KPIs can progress us our Of also with accountable against hold you our that you so quarterly goals. for our

expansion new cost strive cross-sell as we expand wins regarding margin we customer Specifically, optimization as TruBridge our EHR provide our bookings, metrics market execute and TruBridge of will up bookings, we comprised efforts. base net and to retention protect

by that our plan returns the the thrive been Our have serve. expansion has growth the service transformation, and to this innovation this drastically and identifies crystallizes more wheelhouse, changed, clearly continued has while more commitment opportunity the our vision, growth promising capturing beyond. to within that fuel To will true markets strategy how the rapid path potential necessary we'll not shareholder that the CPSI of the through ensure we even growth require emboldened core we are of evolution to outsized dynamic future business success to of achieve re-energized, and culture including long-term go-forward defines of that the adjacencies key XXXX in customers accelerating we

Matt to excited will on progress forward. as report the call to at forward along are And look I deeper bringing now our and look going the We you this for embark turn a financials. over to we journey

Matt Chambless

arrangements results. performance, through with lingering higher some afternoon, SaaS recognizing the muting bookings quarter, challenging a a of today's call, brief mix continued care tough bookings our acute bookings, flat million XXXX. fourth and due care results million decrease from driving EHR sequentially pace to net and quarter slow decisions On additional $X.X that a walk on a and quarter's to beyond. bookings of a the this had support was details in and the of including quarter fourth EHR past year quarter for of on sequentially everyone. impact XXXX mark total the were provide XX% our outlook the effect of the XXXX high-level and down overview concluded I'll towards financial the with pleased Boyd good Thanks, pandemic we the bookings a way or shift Starting We're for against System $XX.X XX% comp down were for new sales acute that XX%.

XX% quarter of of comp. making with saw post-acute XXXX, sales XX% during after MUX years $X.X four for at and past million to bookings a third sequential normalize bookings quarter million system saw fourth Our segment adjusted were the levels showing were highest somewhat a down bookings of or the support Compared that its fourth bookings tough for $X.X fourth decline. XXXX the the quarter the quarter quarter or near-record as particularly posting

net continue XXXX the $XX.X add-on made the full headwinds year decline bookings to that both bookings, segment sales, masking markets EHR EHR tangible net that and year see subscription vital had care since declining the momentum XXXX's our new as of that total in segment result. appreciate process what XX% investments, quarter's quarter execute million with sales and acute we proof acute of arrangements posed long-term contract improvement growth particularly drive and pandemic, protect earlier. our on SaaS our is XX% bookings made we by bookings to for despite signings over system of as post-acute of improvement acute and our net half base the bookings the We for while and sales emphasizing our as back all Boyd fourth our at recurring up XX% annual X% its annual for mark XXXX, new see increased XXXX beyond, X% best XXXX's sales during revenues by of EHR a acute to trends, care our on our contract post-acute SaaS arrangement. throughout bookings add-on EHR core customer touched our promising a EHR to we've in support recognize Looking new care the Including signings initiatives care of under trends showing EHR these to with the bookings the gaining so EHR during total products being strategy offerings serving

XX% Compared million or over or million TruBridge. outside base increased $X.X outside and offset non-GRH our bookings from bookings the GRH were for bookings X to Bookings XX% in sequentially times quarter or while $XXX,XXX $XXX,XXX up Moving EHR of from million $XXX,XXX than cross-sell slight $X.X as as our declines the XX% $X.X or related or bookings XXXX, of fourth X% base more third cross-sell to bookings quarter. increased XX% the in bookings bookings TruBridge in opportunities. EHR $XX.X of increased GRH million and increase the or

a bookings Looking eclipsing the XX% million, the our the surpassing bookings company from XXXX's highest the increase at in $XX.X marked back by XXXX XXXX finished X%. while at record $XX.X in Cross-sell bookings, year million at TruBridge previous set XX% $XX.X year year amount full of and XX% base a outside over EHR bookings million, finished history, increase. XXXX by

earlier, Boyd as of has full footprint year increasing both confident our efforts As overall outside to execute growth on about this critical growth ever growth goals. our and ability our our driving both revenue strategy mentioned as cross-sell through our components are TruBridge base impressive stated and EHR CPSI of

XXXX. in fourth that X% to period. decrease resulting a the Turning the mix non-recurring created license of for revenue Decreased from quarter results volumes million sequential outpaced or implementation in revenues or million shifting revenues financial $X.X X% for a in gains headwinds the and $X.X decrease TruBridge revenues and

revenues cost sequential primary a On seasonal X% million the sequential quarter EBITDA XX% the $X.X the $X.X an in dynamics while or EPS. fourth or effective adjusted aforementioned in front, non-GAAP non-recurring the $X.X million a revenue XXXX, tax increase XX% drove driver - XX% in in the $XXX,XXX non-GAAP and improvement sequential resulting income. decrease in outpaced declines, a net adjusted or EBITDA to of in million Compared or decrease rate behind results quarter's was profitability fourth in decrease a decrease

saw On quarter behind the quarter's XX% adjusted margin over margin. but fourth third margin the the an quarter of the fourth front, EBITDA of improvement an XXXX's XX.X%, XX.X%

volumes the overcome, or fully our XXXX, From the down on not revenue improvement creating non-strategic sales put weight million from in pandemic's in for profitability $X.X income $XX.X margins EBITDA on decrease profitability IT revenues perspective, with growth during XX% of compared fourth For the the that where prior at our XX% into for headwinds The margins which MUX quarter particularly of by of decreasing of improvement revenues of in TruBridge, and impact non-recurring the the X% sequentially was XXXX. total existing year, on exacerbated the on in patient support was from adjusted increasing revenues total work in a and years. X% in system eclipsed came add-on XX%. suppressed margin modest during pandemic our by half second net lower the and full pressure XXXX. $X.X decreased translated opportunities EBITDA or Despite the million could pandemic's million made adjusted itself EBITDA that end Recurring up non-GAAP to EHR adjusted impact customers, decreasing XX.X% heels in customers be decrease XXXX. purchases XX.X%. quarter the or XXXX second quarter to continued sales resulting the XX.X% decreasing a hospital X% were million hospital This in considerable the margin by of result to revenues, revenues in volumes patient up roughly annual $XX.X

recurring with revenues XX% to compared made million XX% recurring $X.X by year, revenues XXXX of X%. decreasing slightly total up around during or full the revenues roughly For

to segments, increased client Looking contributions and volumes. TruBridge deeper from X% improvement lumpiness the the in from GRH revenue client $X the offset from impact new wins X.X% trailing with improving TruBridge as the the or continued a related partly patient XX by at patient our sequentially over months Revenues record lingering quarter a pandemic's hospitals quarter revenues XX.X% at XXXX, our of ago. on million XX% were on in revenues fourth increased volumes margins

patient damage XXXX. we nearly roughly GRH levels. volumes quarter the basis to excluding the XXXX Although Despite of to compared TruBridge increased exited from quarter fourth with TruBridge continued pressure gross the revenues XX.X% improve, of have volumes pre-COVID patient on patient X% fourth below volumes, margins XXX improved XX% points margin. XXXX's

expansion fourth headcount the all during margin more As reductions a didn't COVID-induced institute the quarter's impressive. we making reminder, any XXXX

acute a new million or Next, care XXXX sales support total XX% reduction the from XXX% segment drove decreases that for and support revenues system $X X% fourth or installations and quarter revenues or long-term year-over-year $X.X XX% in couple system XX% SaaS our are our installation revenues. non-recurring a during growth as care and volume total were $X.X or from net million in a our from fourth mask care the decreased Similarly, of driving revenues quarter, million key trends acute acute segment. of non-recurring strategy. overall revenue sequentially mix sequential the million These down $X.X promising sales and to decrease lower

existing XXXX, SaaS care conversations acute sequentially increased and our offerings our quarter customers customer the attempts SaaS and to successful from XX% fourth focus in First, new a of prioritizing on testament XX% to to revenues SaaS. convert

XX% just amounts. For year, XXXX the acute SaaS from million, $XX shy full a of care revenues increase were

fourth post-acute and post-acute revenues of XX decreased posted the a XX.X% new a quarter SaaS to by our live to previous go its offerings live are view compared We revenue XX.X% during in margins a in recurring a evidence standpoint, of the this first quarters gross recognized sequential which currently segment market. the to the following period or quarter facilities our margin quarter going to second efforts as four We XX the From revenues, in that posted for environment. appreciated consecutive XXXX support and non-recurring declines. recurring and XX.X% to increase in Thrive of with sequential Second, post-acute the with growth, quarter sales our cloud seven of modest X.X% decrease revitalize XXXX. quarter XXXX of being system our expected caused client anticipate third fourth in solution

development the operating due were were to or $XXX,XXX costs the of expenses. sequentially of capitalization Product software on down but quarter to development relatively XX% from Moving fourth flat XXXX costs.

a care of associated As of from the the quarter $XXX,XXX settings, statement. for development marketing down drove down all or due of single out quarter direct calls. XX% capitalization X% revenues $XXX,XXX in a is non-recurring strategic with the in platform Costs general driven investment XXXX marketing Closing from Costs fourth new costs costs $X increased lower. our to the and administrative increased million costs decreased XX% endeavor and levels the we're of capitalization fourth Boyd for General result $X.X making programs. due to and million were project and income project non-recurring XXXX or reminder, of lower we've GAAP for mostly the discussed. that or the was and bad our debt. commission CPSI on multi-year XXXX transformation spend to increased software or requirements discussed as travel sequentially, development increased Sales by sales costs the costs solution that previous transformation XX% and sequentially expenses were costs support on decrease system of

research to true-ups on XX% tax fourth was for quarter the during the adjustments R&D to tax XX% expectations rate lowered to credit. and quarter the year-end tax provision return qualified mostly eligible during expenditures XXXX effective due including of compared Our

a third that timing XX% or For million year discrete ago. XX% record for balances. of double operating fourth sequentially of flat flow mostly down $XX.X an nearly cash XX% at XXXX's receivables items. XXXX, of the a to were with in the sequential were related, expect financing but flows of DSOs improvement The $XX.X significant to quarter below million million. relatively flows of From cash quarter, coupled we existing standpoint, cash XX $X.X XX compared normalized work rate tax effective is the

continued flows capitalized up development cash of adjusted For the year compared million operating $XX increased full XXX% Net operating of cash adjusted million XX% annual flows ago. or or software costs, $X.X were of to the to XX% EBITDA $X.X EBITDA year, a a XX sheet months for of million in or from during cash flows over past strength X% This debt by amounts. in timeframe. balance allowed net million over the cash with $XX increasing has the same XXXX $X reduction million bank

on ago, was capabilities, setting XXXX's value support leverage cash allocation and years we continuation balance the doubled with flow XXXX operating X.X our improved ways sheet, set achieved over debt deploy execution confidently priority EBITDA, nearly surpassed coupled a A of poised enhance that from when XXXX to capital momentum Our flows their times since little a market cash in and ratio levels. we're of profile, capital three our target during successful priorities during robust now of our rightsizing leverage opportunistic shareholder XXXX that health with to strategy. cash-generating of growth

our multifaceted that dividend earnings position, call, stock time, the early while share authorized the our providing to on quarterly highlighted we to of our indefinitely we and growth using abundant of have repurchases invest last be be maintaining using Directors over million the of market that $XX the as executed business capital goal board that maximum approach strategy. to a discussed strategy a in strengthen organic allocation length. capital for flexibility Boyd at includes to and our September Board continue value-based This with will of broaden a attractive plan At disciplined repurchases, to all our pursue acquisitions program, M&A that a pursue additive suspended we same announced timeframe. a two-year share As repurchase in optimizing

be the on shares flexible from tool High total quarter, rationale improvement $X.X also the cost priorities by to we value cadence and capital cheap During in share capital repurchases considering allocation volume our [ph]. program allocation alternatives. million. may influenced using repurchase shares M&A, XX,XXX alternatives potential primary being value replacement for In of factors newly of November The program fourth Xth. with capital executing repurchased as capture will a over our the enhance first undervalued our formed we shares began but on repurchased availability, number fourth and to of and of capital is evolve a valuation a other the for time. and Capital with return shareholder quarter, total needs

So, reflect a lack of given the value may on repurchase of quarter not any stock. activity our views in our intrinsic

discussed achieving stabilizing us prevalence continued our state to EHR our strategy, In for successful in topline targets and risk Boyd other and amidst companies Lastly, the historical to vaccine of some revenues of to we guidance our as set inching around pandemic. Boyd meantime, later the abated XXXX pandemic's insight joining naturally hospital host it brings guidance for uncertainty beyond. by that minimize return a efforts uncertainty we've in our federal towards mix. the in long-term governments private XXXX the base XXXX total with the introduced production of retracting the ourselves with guidance coupled closer and call, the and of earnings the for efforts gives levels the This volumes mentioned we'll the XXXX in with the confidence for the distribution. behind recurring further actions and last research, in time of CPSI. and In ago, bold since A efforts sector year first with uncertainty increasing has and ways, the

in a driven X% Our organic shift in towards by long-term X% revenues an continued average to arrangements. annual continued growth of outlook recurring EHR SaaS TruBridge for and calls growth

For the total over towards $XXX XXXX, this million representing end revenue we to XXXX. that high the growth million range growth revenues be midpoint to of recurring X% and $XXX expect of anticipate with revenue range of

to a range and basis XX.X% the a arrangements a revenues. our achieving long-term long-term margins. represents EHR near-term during total reminder, in benefits place near-term our within to limit on XXXX of pressure ability point margins, XXXX. for the of but expansion XX.X% mix our margin EBITDA This on with this incremental total XX% we midpoint pressure As to Compared on margins will revenues SaaS EBITDA increasing for a XXXX, by target adjusted XX expansion non-recurring On EBITDA range envision of does focus in brings land margins excess adjusted adjusted XXXX. of tremendous

generation, cash roughly XXXX we EBITDA. of represent terms of In expect to XX% cash to operating XX% adjusted flows

although to show next recognition more we profits providing quarterly remainder the we quarter that guidance, and mismatch a revenue to in expense will won't Lastly, meaningful be expect ship the of year.

expect for elective first expectations sequentially slightly flat the profitability we that to with line are Specifically, open overall the be pressure place metrics. incremental the will for we'd quarter to volumes quarter, that of questions. up on procedure internal yielding relatively last revenues below And that, like

Operator

is conducting Cantor session. Instructions] At question this Halper [Operator Steve a time, first we will be Our from question-and-answer of Fitzgerald.

Steven Halper

Yes, hi.

well guess? include Just to the related on a I benefit, headcount point the that as does the XXXX, reduction as of clarification the EBITDA guidance costs for

Matt Chambless

Steve. Yes,

So headcount announced in the included anticipated was yes, they are in that reductions X-K from number. up, guidance that the that the today spoke costs Boyd

Steven Halper

Right.

benefit in to should be able in XXXX, the you get correct? So, theory, most of

Matt Chambless

That's right.

Steven Halper

net On basis. a

around levels with have regard volume you made to expectations, Okay. then talked to increased closer topic? about assumptions historical profitability XXXX your that inching you - And procedure

Chris Fowler

Yes, hi, Steve. This is Chris.

that form put versus that six out that going based that flatlined relates we've just the with the we're on thought last volumes the XX% on it also based As for to of XXXX, and making several or months being where model and other last setting into assumptions on volume over historical over may historical our in months XX trends care the some hospital. urgent not service it to return back to the Telehealth, may be just that that's based

Steven Halper

cases December, you your some say in - utilization again in November, did follow-up. as base a see decline question customer And in to last as starts Have increase a markets? January COVID

Chris Fowler

positive I from matter but which that hospitals. flat up a probably I we're in is a long-term the the utilization for say where Not the seeing the again, just interim. services line think ER, definitely making would in It's elective is of that

Steven Halper

in elective procedures well? are pretty good But - Great. pretty hanging

Chris Fowler

seeing, what From we're our hospitals, yes.

Steven Halper

helpful. very Great. Thank That's you.

Chris Fowler

Thank you.

Operator

question. your is of question Donald Please next Hooker state KeyBanc Our from Markets. Capital

Donald Hooker

Thank Great. I a you make Good want threw understand you. afternoon. numbers the kind of out to of sure math, bunch I here. just

like XXXX, seem like by million think about that of million my envelope quick on XXXX. of in the by would to I where growing looks math it about So you're add, you want $XXX TruBridge back you're at a $XX you top saying, - [ph] math, want

So revenue outside I again, kind within we're the and there am base revenue XX% to to get of talking something? kind base of of CAGR without incremental right client client numbers a that and or my the about both missing

Matt Chambless

Yes.

in I but You're right. mean from the I the revenue do the point, and of I XXXX's math $XX the base. starting have front - aiming million million EHR cross-sell, from don't of expect we outside mean $XX if incremental number me,

So it about yes, thinking you're right.

Donald Hooker

Okay.

that's the out do that? a to that running in which that's I'm that, term, gross I'm an staff of is would kind it about gross XX%? bring rate. need I to a to you target - I that upfront think near there, I goal they any just good growth look lean pretty interpret XX%? margin mean how any of kind Am how have I you're investments - I as of TruBridge thinking down of in come [ph] admirable XX% outside in, Are know about, well. significantly, looking margin about from grow an that you grow million like a threw do thinking there hefty, kind to So EBITDA $XX costs? just Does

Chris Fowler

we're we're efficiencies delivering specifically is and still through thinking for opportunities there. the that about heavy automation on now, ways side on very human capital the of TruBridge TruBridge that one for the looking increasing Steve, Yes, margin services. Right

Management that the efficiency. and Office a of process inside towards initiatives So one is focus Transformation our automation of

Donald Hooker

to use program how for to one there financing When receivables was kind in. me, we take long-term would and last of think flow. us will lift still just the around cash comes collected? the nice of have then they They $XX they to expect these short-term financing million the have number long-term a What that would receivables have told amount $XX.X Okay, talking sheet? outside you - receivables I points you super. thought one let's - I maybe hoping million down, this that you that we a be of of meaningful fair That $XX.X quarter, seem lot to left? fair receivables. Are million a related And been on still like be as do would. a coming and - of I'm [indiscernible] balance

Matt Chambless

Yes.

- So in flow you up cash this year. a nice on pick a nice pickup for

then and cash I in over lowest the financing right from three past SaaS been think given sense meaningful years, XX-month of on stage they've was that million the worth which now contribution balances the our point are mostly seen their it years of which mix which couple financed high were use collection $X at we've X these these in makes past that about terms. receivables,

has of financing short, flows. license and the in past with SaaS cash mix a towards So decisions coupled a more between created shift in period a favorable disconnect this bit now revenues current

expect cash positive but them So say flows, to and we receivables forward, we that somewhere to million million next be to drag range. where generally down say flow going all some windows $X year $X see financing cash may XX-day

Donald Hooker

Thanks. you. super. Okay, again. jump Thank I'll

Operator

Please Zhang Leerink. from is next question Joy SVB your question. state of Our

Joy Zhang

Good afternoon question. taking my and thanks for

Matt Chambless

Certainly.

Joy Zhang

say, follow-up be other areas M&A we that's as that circle read to we that, I RCM. area within on your will automation in or So well? sort health that a to Thanks. as investing Real of that can Get in within your rather like effort or assume than, since hedge focus of comment [ph] towards will Health [ph]? And be as acquisitions would let's going Can we're to back on

Chris Fowler

I don't that's necessarily standpoint. Joy. This if Chris. M&A us assume for to that be from I the would going know an lien is Hey,

other looking throughout anything Yes, innovation the intelligence, can goal sky or we about find. buzzwords go to opportunistically automation, like a we a that other you thinking it's multiples at you high. much are what want it when throw that company, the of mix of deliver we artificial do partner development handful we're is can there we achieve the there, with think to who I in-house, can

aspect there anything there. not but is, we're more towards probably the we'll partnership ruling a of lean So in little out it,

Joy Zhang

market. this Helpful. market, just and has And remarks over environment about targeting wins during going some a opportunity still on about given health changed that year. [ph] that seeing know there were ask this Cerner the it's time you up, exit talked quite seeing year, there being on the strategically past focused as forward, a last wanted EHR within Are competitive opportunities and follow-up, I prepared your perhaps to or new in others?

David Dye

Yes. Hey, Joy. David Dye here.

customers over I but acute development health We we or mean, Athena haven't on change further not doing sales course that have is any year. efforts their supporting still the the care significant any last still product. of seen

some seen hospitals have we of the enter So those market.

so There scores not are incredibly vendors, we course and product, the feel vulnerable more enhance satisfaction that the call or standpoint, position the product XXX a are continuing we are approximately care under acute clinician XXX will do so from beds on still are low. enhancing to in that some expect others what over are hospitals but of We their XXXX. like

the will lot somewhat in a hospital a those see basis. now, for as have market say Cerner focus intense significant would don't be play small do an on selectively to right where they continue I regular on see of somewhat there basis, well So on an we future. continue either or as We in have no to area we hospitals entering continues that they near currently a they change. the it to Meditech But the be is regular and decades marketplace but -

Joy Zhang

much. very you Thank helpful. That's

David Dye

Joy. Thanks,

Operator

from Truist is next your state of Please question Our question. Sandy Securities. Draper

Sandy Draper

I Sandy. guess my Hey It's dropped I guys, S.

David Dye

We were wondering,

Sandy Draper

Yes.

questions. of couple a So

I those to do like see just and and back. I if But leaning traditional around situations flipped license but okay, the the lot, guys literally is you the, several next kind pandemic, likely type of heard we're may to that would right, stay whereas a that's SaaS. more I'm was seeing I it you very be are more it's quarters you quarter, we're anything think like to to a you financial there hyper it the it - was was sales XXX% towards towards bounces you anything related SaaS know ago, inverse heavy deals a and this to there suggest, the SaaS? recall ponder seeing that in suggest just are First on and related trying saying expect that quarter. a SaaS of

Matt Chambless

Matt. Yes. Sandy, this is

of clarification. point a Just

So during acute quarter for signed EHR the side the the on XX% were the contracts SaaS, of that net were new but of installations. XXX%

a... a just of it's bit So

Sandy Draper

Well, some is then you. of same. last that or I we're it trends I misheard the I I expect more to question suggest had still there maybe the the are then quarter-to-quarter? - really But take Okay. two guess quarters' so trends, lumpy that - you the I guess leaning SaaS towards if be do

David Dye

direction to bandwidth as continues and continue customers definitely much and Sandy, lumpy, I'm so because Dye. frankly standpoint from will but I'd say more as are to marketplace a that improve somewhat can. with course David receptive a move is lot two pushing we trend of picking rural a But a do up but be in it availability to here, has the of One we're from areas that possibly SaaS just to that's reasons. be more connectivity SaaS and Matt, seeing Hey, we two, to quickly. the for environment,

SaaS, new projecting our have But XXXX us So today. that's be sales XX% based net the of that that as on business we will well. in we're currently helping pipeline

Sandy Draper

five base, - is When in on customer outside reference see capabilities? can Do a a that helpful the lot are and you've side changing mishear you there it's key are the differentiate TruBridge. guys - to What I'm it What going RCM they specific job? but they it? the software think Matt. a people is What you that, say make you of Okay. where sales that, on about they of to you your successful have is Because I about so have you But That's for? things core and want some been sale when that space, question And do clarification. people that you players Great. a metrics, outside of you? there other just think out there's you still looking there. what can about really - great the - it the is sorry second think on want the to think talk relationship? be think got of

Chris Fowler

This Sandy. Chris. is Hey,

lot decision. guess saying So when focused XX months are is by brand unpack. what over is awareness, really and a is we that start there we've for in the been last just sure a the on us to somebody I'll game making I making

is EHR side hospital I CPSI look community EHR a other decision a there on part is that to the in. not the think If you front, don't

an up, up thinking or significant we'd Reviewed other obviously, got reference else. like at-bats. and look stands to we as getting some about credentialing used HFMA there When whether Peer our and aspirationally, from And we're against referenceable what, and that be the it'd [ph] going like be wins to standpoint. just so we've of those to the metrics last forward. that show we've year matter on capitalize the catapult some, And the to a got product a had it's anybody We feel stands - awards, RCM we

Sandy Draper

That's Great. helpful. Thanks.

Chris Fowler

you. Thank Yes.

Operator

of would reached Douglas closing we turn for call like to back question-and-answer to the the the remarks. Ladies gentlemen, session. I end have and And Boyd

Boyd Douglas

healthcare services able afternoon. that have and around our the our delivered time as deliver on sense effectiveness, to hope We mission our accessible us were everyone want updates for enthusiasm that plan, have to is highlighted CPSI. of evening. that positive you to transformation begun very to this I global to effort have this and today marketplace. going Thanks, which the We and everyone, impact I good join efficiency providing to look we products and quarter our progress on at on clients your efficient, and time our you shareholders, will thank a believe a into transformative genuine employees. forward and value some we the each

Operator

conference. today's concludes This

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

TruBridge (TBRG) 10 Feb 212020 Q4 Earnings call transcript