HMSY - Earnings call transcript Q1 2018

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Operator

Good day, ladies and gentlemen, and welcome to the HMS Holdings Corporation First Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time.

As a reminder, this conference call is being recorded. I would now like to turn the conference over to our host for today, Dennis Oakes.

begin. may You

Dennis Oakes

Good conference Sonia. welcome the to Thank for morning, the earnings call XXXX. first HMS you, and quarter of

posted are well. Bill supplemental list so will webcast limit Today's as investor will kindly We section and of Chairman Jeff earnings our be can accessed Jeff we release callers Financial Bill their results company and morning information questions. Investor Executive on provide the you presentation on follow-up can timely a in we This this slide me Relations as the Officer. and inquiries being get through their and our Chief Sherman, an website to and is well our fashion. open remarks, of call our financial for are as that perspective the one by Officer; line website containing our Joining Chief first full question Lucia, quarter at ask one following and hms.com.

Before on of based the business we will you that and forward-looking we are want some I as make today current view get of statements expectations the our remind our to started, to it uncertainties actual and statements Such see those performance differ materially. risks including to plans results we future and that business objectives related to today. subject cause are future and may

is statements results until company's the XXXX release financial As release, factors The considered the first today's not a which earnings be result, Form in in XX-Q are final SEC recent most reflect today's earnings cautionary filings should in conjunction Form with quarter in risk described including results filed. XX-K. preliminary our they and our

We're measures both -GAAP to certain measures the of a morning. investor now release and included our in ready we to presentation. Bill? is reconciliation GAAP begin. this Finally, refer to And earnings non may those

William C. Lucia

Dennis, you, and morning, good Thank everyone.

on EBITDA we our the we quarter objectives. by have and revenue start today. our Total XXXX, the are initiatives record PI, purchase believe consumer implemented the continuing significant our Medicaid financial the cross-sales passed adjusted year that results our of intently to our to penetration. to growth engagement the revenue, for we of Following year-over-year achieve flow operations year first full expectations, customers, the we plans existing to recently analytics integrity and in Having in nicely anniversary reported enhance in each The customers savings are the relatively year lower focused exceeded reflected for payment ongoing which added generate we encouraged the is platform, supporting quarter, boost and strong an HMS. revenue indication analyzer operating set a positions Eliza us a cash are fourth particularly middle-market this to XXXX, in where one

began our international the previously we and management which spoken we We list about approach have of reaction the positive about at of of solutions. care target our to the capabilities end new engagement consumer and received customers year, last have

purchasing about our on several customers our to dialogue a customers and use of technology solutions. and are business members. and with contracts behalf active We our their have broadly, innovate COB inked to to number and database of existing continue analytics More we in unparalleled PI leverage

healthcare Sims development. we assist week, Jacob announced hired product experience technology-based organizations As process. that extensive Technology has we it earlier this to large-scale Chief Officer in and a leading

of good the activity we he impacting that changes equipped to world. is is the who outcomes. of of our engagement, population will early and from with change clinical designed and health members have software rapidly-evolving we healthcare A analytics at technology, product and personalized example behavior IT plan ensure to proactively new innovation effective internal well developed. improve stay risk So This a identification intelligence maximize benefit assists most forefront solution accurate intervention

We state in have the both population one experiment last state Medicaid which and with year, the previously including state. about in spoken fee-for-service that this began managed an effort care plans

new this launch more the approach particularly execution integrity total to newly as with sold have say ahead, PI we important worked overcome formally implementations the during population will weeks We in regard related challenges, to product. management hard to to about We of and XXXX payment business.

total implementation HMS to COP, entire PI hold cause the and to delays, reduced refined and from have both signing improved contract to due projects revenue on the We process time eliminate required throughput generation. for

revenue related expectations. complex time now risk state any first we months, portfolio, payment audit the the on agencies. is factors year. revenue the lowered broad doing place now operation two our detail areas Jeff this first revenue expansions technology Jeff? PI have is should and contributed will that we growth volume, generally, the other in are in for improved mitigate finding, first plants existing integrity were existing the incremental to place the issues, who the time. contributor. savings added And last per the customers a clinical seeing and greatest Going network and Scope outperformance which reviews, quarter, first quarter products data payment or year. product the expand to Medicaid year-over-year customers including yield we integrity performance. spread are concerns second whom forward, the impact perspective, saw to quarter continued COB the increased PI revenue work. recent produced multiple our customer mining PI believe with growth to turnaround three bought That which we There growth our for already More rate in was expect across revenue achieve provide actions for of from improvements individual hub we to were in people, compared clients, which will and sequential in audit processes provide based we PI put we the PI and From this in product and the that meaningfully

Jeffrey S. Sherman

will million, in reversal million quarter good reviewing product Thank original this Medicare I first appeals the of and RAC you, begin a morning. revenue from $X.X by to revenue Bill, revenue of to portion a contract. due the included both morning related of the reserve customer Total perspective. and $XXX.X

Following to our associated for the maintain a Region January B appeals expiration of reserve. the contract or requirement and reserve on reversed XX, pending open old ended we

was in million was Reserve in $X.XX such quarter normalized EPS quarter diluted Reserve resulted that the revenue the Release, net the per Excluding RAC in adjusted quarter. for million of $XXX of the share, $X.X Eliza projection. Release above benefit The revenue normalized our a $X.XX. was slightly

total could RAC acquisition up the as quarter government first from commercial last up was an over the until quarter. in of Excluding digits benefits, released on and Eliza basis, on low-single that was not since revenue the reserve year-over-year April, coordination X% organic digits, up we state double close excluding revenue was revenue and both was comparison, revenue the

consumer diversification revenue growth expect of get That of of year incremental our XX% approximately significant reflection basis. revenue XXXX a new we we management and step-up of ongoing expect initiatives. second engagement in in approximately strong efficiency savings $XX from quarter it see XX% half. a Though Coordination it well the both of quarter we quarter was in integrity million XX%, million leverage continue the the was to faster year meaningfully but always, XX% As the reflects and the is vertical, and in the by $XX higher of to revenue components a tax relatively benefits in of these will range to first EBITDA compared modest effective Adjusted more revenue second be uptick Reserve each positive followed included to the the was from full the total revenue the This addition as quarter. a as resulting payment $X quarter XX% total a cost Release, of a in benefit ago. the performance on of a in approximately care on still rate the than of first million. nearly

Equity strong balance XXXX. $X.X cash in to and on of was bonuses we for rate, and in half employees deductions million Operating million quarter. call, first remaining $XX equally relatively our usual by of manufacturing was compensation the out we to due $XX.X February at the quarter, relative just of expect of flow was under compensation result a domestic this things the executive to annual each among year. cash a certain (XX:XX:XX) rest the payment roughly million, offset which of federal full grants year, such was is of on for in at to rate The the local flow beginning the of that to despite made As year, quarters the employees projection quarter partially equity stock loss compensation. new the lower annual the pointed the three taxes, projected and level based state of the higher the

growth, $X.X expenditures of million, million. shares Capital kick in our to first buyback to repurchased and an execute The in equates at to last we be IT in was but our another approximately share. million, overall four XXXX. the on and as our million of and do total progresses maintenance data in CapEx XXX,XXX shares we under the strength the to years, price full purchased first were just of continue as which of positive further was place the technology-based cost expenditures flow our have quarter approximately for X.XX pace security the a of to indicates pick time diluted for year in November, current and of investments quarter year well as Since $X $XX approximately We $XX program the anticipate the which the financial up cash continues approximately Free million. quarter average $XX of still share year focus our the we first performance put authorization expect systems. per off

and of have which we an pursue. to We also continue active monitor acquisition pipeline opportunities

existing focus overall believe in Our particularly and franchise, is however, consumer our we new moment, short, In growing strengthening the vertical. management the care at primary first year our engagement performance concluding the Bill full for take Bill? remarks, and of financial questions. then months have three achieving the XXXX objectives. ready now solid creates to brief will we'll our foundation a be year and

William C. Lucia

As for mentioned, a is strong year Jeff HMS. to new start just off the

is healthcare with aided high positive need recognized increasing Macro services. incidence to the chronic throughout factors unsustainable aging of Looking and government growth Reaching predictable considerably and a and favorable consumer as throughout a on sales by provide our environment it. for disease, cost backdrop programs XXXX, the our business. the objectives population pressures we are our consistent of we ever a committed such experience, services an and ahead, of for focus achieving performance for

support will the committed data, believe analytics, beyond. throughout have highly a business and and We and profitable the base, growth the sustain which year workforce customer model, a also this engaged and leverageable we

have want will to of announced the contribute Before closing, be tax-cut employees company's to plan the This change reward appreciation. indefinite the by have every participants savings in to for HMS, department design their country first a reminder is ready Operator, internally each in XXX(k) In increasing to an federal and work a provide for HMS hard the an we will recognize question. our not customers. growth day plan. with and of our I one-time now that success long-term the of we ongoing recognition the employees for portion who match a employees added we to which around company our service incentive sharing our contribution, to save for that are plan recently of an and bonus, future; but throughout

Operator

you. Thank

Our of Dodge Sean Jefferies. first comes question from

Your line is now open.

Sean Dodge

Thanks that Good implementations had Maybe taking you've for update my and a process on quick know Bill, with you've mentioned Yeah. those commercial questions. the up. refining I been that to on; speed working some outlook, starting morning. you

the As revenue quarter? growth we see year ramp, the nice how every a commercial linear over here, should we so progresses sequential expect to of think course or about improvement from

William C. Lucia

in if half. the second see historically, of a second of at So, then XX% you XX% in uptick us year. the the in first ramp in the Typically, half our we half is and modest about look further usually revenue's QX and

our that should say that also lending expect is I growth. from you timely backlog sales on of implementations So and that, getting through would perspective. more the executing those

Sean Dodge

And numbers see you the Okay. to And those interest then, then, Very having you're of you Bill, consumer Can all should growth management client any for lots good. put in or we of platform, platform? engagement on or anticipated flow conversations solutions. mentioned around when revenue? into that that care begin

William C. Lucia

Yes.

vertical consumer as care management grow to our this do talked call February, So we double digits about in we year. expect in engagement and the

changed. hasn't that So,

level the product the to first place believe we'll quarter with of revenue and of we think sales achieve quarter of be the have that interest fourth we've in I line. double-digit taken XXXX, the seen growth some that and both that already in able

Sean Dodge

good. All Thank Very right. you.

Operator

Thank you.

Mohan Our next Oppenheimer. question comes Naidu from of

Your is open. line now

Mohan Naidu

taking for questions. my Thanks

So, two questions.

the yield Jeff, And AI and you have Can numbers? improvements can learning translate having? looking on efforts machine productivity can one impact happen bit improvement. First or I'm here. that using to at guys you in discuss been that expect the Bill quite about talking potential specifically, margins? we these And any soon the a Thanks. how are to

William C. Lucia

a question. good Thank you, Mohan. It's

have record might AI reading to assist what a to and replicate medical records we been medical using in So NLP and us coder do.

new is ramp meant resources findings. over revenue we deep sure PI, also go do have making dive competitive we add I'm as we it. as that need But won't do in is, how that appropriate into going For we what to to more we're many and not – reasons, to

So clients always for probability the using so is to that But that's that? us, of much add false providers now one they are very that scores, good not want positives. of get providers, (XX:XX:XX) been audit. you really to anyway. we're false important about technology to the number and to through recovery of We've us things lower our the of distributed anything the quicker, Jeff, the course helps positives the we

Jeffrey S. Sherman

Yeah.

resources us have also I been incremental manual initiatives yield redeploy those tasks, think of to on we robotic talked driving which then automate also staff think some and at for hiring using allows we've working the I more automation process customers. our like about to

through a So we win to it's of that more perspective And think progress a as a that well started see some I both XXXX, cost perspective. as and from of we revenue as to see in lift XXXX. expect

Mohan Naidu

this guess, mean, that Thanks, – guess, follow I involvement. I I a up having the better than guess, as guys. the with quick maybe or are looks I is on you human efforts you looks surpassed big to beginning It effective there. like are getting doing guess, that like it that's work. hurdle the in acceptable – sort effectiveness of have an level learning, to threshold? compared over, real you I machine of to human get a here,

William C. Lucia

a this doing of and So, learning machine very company and we're company. One AI is that the learning places PI does of is that have models. implementing that only we in couple can specific tool a and the in on basis. the we're part task not that, two machine purely do a repetitive

other intelligence. mentor-based of artificial is machine a The more model an learning,

the tool and So, our it efficient more and effective how do more are, the learns efficient from effective we is. the then, course, the – and the reviewers of work better

technology so, and AI And that's deployed a in we've more model also that. mentor-based

that areas just integrity. or really production experimenting we with there's not in number tools payment couple So a of are a different our are business, both in of

Mohan Naidu

or that should as an Got the guidance to that Jeff. guidance? was in One think million-odd it. we your Release, one upside quick Reserve The for anticipated $X of

Jeffrey S. Sherman

guidance on don't guidance updating guidance did year plan update We provide range. each didn't in and quarter. full a We Yeah.

the this positions didn't mode objectives. nicely we Reserve one we as in We a indicated to the call, our So that quarter. we strong to in in our were when But contemplate (XX:XX:XX) remain when with year year and just measured gave full we us we reach to want guidance. February, guidance with provided start Release

the for point as comparison. basis would to I adjusted So EBITDA and for normalized quarter the the numbers revenue

Mohan Naidu

it. much. Yeah. Thank you very Got

Operator

Thank you.

Blair. next from of comes William Daniels Our Ryan

Your line is open. now

Unknown Speaker

line the for start. one on and maybe (XX:XX:XX) questions. Rob is Was direct, the Ryan. both This top RAC release Thanks you for bottom the taking for guys. to Hey, Jeff, is when the is so, we why million, million which if versus from EBITDA subtract normalized $XX.X get delta $X.X million And there? the we What's $XX.X the what number. impact? reported

Jeffrey S. Sherman

or then we as over Yeah. to it is, line through the The revenue bottom to delta our pluses minuses RAC and related time our equity reported calculation. and reserves, have bonus flows our in

there it bonus over little million, calculation $X so $X.X is was So bit a from variable a million. impact

tax-effected you of that have $X.X And the to about well over the million and down So was EPS impact, million. to takes it. $X.X the just benefit the then tax-effecting it as net so Release Reserve after get

Unknown Speaker

much. Okay. two my helpful. second you're for With That not to Eliza, question. very PI plants working top then, you guess was Thank you with this opportunities led And yet. I really that cross-sell XX got the core Has any business?

William C. Lucia

we two brand more continue then to those with relationships plants, those For Eliza that, those the as we yet. But have anticipate that HMS the Eliza becomes accounts. not we'll brand opportunities build

Unknown Speaker

much. very you Thank Okay.

Operator

you. Thank

Demko Our next Citi. from question comes Stephanie of

open. is now Your line

Stephanie J. Demko

questions Thank and you quarter. my on guys. for congrats taking Hey, the

William C. Lucia

Thank you.

Stephanie J. Demko

on touched made in you've last but a the since few you Bill, revenue the (XX:XX:XX), year; conversion. So of remarks, prepared PI half in this investments back

walk quarter ramp Just PI given through of still tail out the the what versus in forward? could some to played is going could you of these items, longer this or come me segment what

Jeffrey S. Sherman

– start jump is in. I'll I'll Bill and let and Jeff, this

exiting did a as about requesting. we that number the records you medical see uptick quarter of third we started the may So actually to recall, were talk we in significant

of XXX-day the in we typically, helped a request volume we record a and from And improved to that investments having finding revenue we increase. actually technology to Some our a made when generation. drive lag have XX- screening

of I think, think, PI capitalize recognition playing to see starting we just we're that QX. (XX:XX:XX). from So as is of trend now into I higher and expected. requests continuing revenue right out list saw We the volume that And

we're effort that it of hitting results just fruit our both the in quarter, was that an all process. lot characterize for revenue was first quarter, then process, think would strongest quarters not starting And typical Typically, is to that the saw but PI was a the And a see at we in XXXX, over which and (XX:XX:XX) whole implementation sign revenue process declines, work first us. is revenue and flow four I in pattern fourth first PI and we the the revenue quarter the quarter sequentially improvement hard of recognition So, year. PI total, from up quarter. good increase see highest done from which in looking quarter for quarter throughout fourth our is actually we and

Stephanie J. Demko

Thank you, Jeff.

product? in up (XX:XX:XX) you, give a update that an could you've build-outs to prospective market your on PI us trends, PI, investments made As given on many follow or recent been

William C. Lucia

in So, past, we those we was continue that product on service, to we coding. complex DRG, the side clinical invest said things it place as prospective clinical really to our focused in in product the – prospective to the complex types reviews, of do complex or world the of

It that marketplace. rate, implement we the longer in adoption other more side edit mining a we refurbish now is process retrospectively takes attempting moving They them slow in are quarter the engine. they the so trying data But we complex. We to even before. of virtually talked little It are to a the had adoption can run into have the and any about edits, to on as move in prospective that these. or increased

as So, a grower that business. we strong still for see in the future our

Stephanie J. Demko

Given kind have product machine peers? it's of a margin learning a then build-out, PI of would little healthier than your more some a your of

Jeffrey S. Sherman

I and think we our lift the the time. screening at we I peers. more wouldn't compare it from leverage But should we success that technology see able margin rates, as both to look improve to it, are that to if over

Stephanie J. Demko

appreciate it. I right. you, Thank All guys.

Operator

you. Thank

Charlie of comes CJS Strauzer question next from Securities. Our

line open. is Your

Charles Strauzer

continued kind other head be good have of issues seems that that the smoothing the I prevalent (XX:XX:XX) last to were the up kind any onboarding along of Hi, too? there this back seeing know of are cropped year, of we And that implementation strong morning. to as year? that kind ramp way issues half some you of

Jeffrey S. Sherman

So, XXXX particular lot in of time implementations we PI. and devoted to in resources improve a and overall

more business product As both and budget of level through on discretely, the so year. the normalized our to of COB, both much for level, at at implementations. do mentioned at call, inventory that and work people the we place PI end we the we We the did a in we our are and sold think have customer processes

we the significantly refined analytics XXXX. of have tracking half our so, implementations and And and in back

effort So will noted changes we to do have better because us the we've in I customers changes visibility, make happen, respond changes which other think And their look could prepared implementation based plans. a done Bill will to our that at is, that have hold control, in all his that on in remarks we were HMS took upon projects those. of issues hard resolved queue and very we allows

I it to can focused monitoring month our and so, is at certainly now team, review have as We changes. respond month. we every every is and clean queue look it it And team very we a accordingly that very an executive and think

lot So see XXXX hitting I that the of it's a done benefits starting that combination a think of to was in work we're throughout XXXX.

Charles Strauzer

you around like sounds arms much. very have you It your Thank guys that. Great.

Operator

Thank you.

Close question next Richard Our comes of Canaccord Genuity. from

Your line is now open.

Richard Collamer Close

you Bill, Great. the about bought that time, sort the maybe PI Thank down just buckets PI in Congratulations. terms the was in for three talking three the of with most and scope Can of you. important of revenue improvement. COB existing gave expansion terms there; the growth them? buckets existing rank you the sort and yield growth, of first break what then those

Jeffrey S. Sherman

say, new ramp than base. to to explosive expand I ramping details. on Jeff. customer Hi, faster I'm a give it's would is not But up a Richard. customer always base This going existing

always expect of to So more and customers that, with revenue, the more or a you time on improvement yield take three, existing ramp as customers new expanding up. have should impact sales immediate

I weighted existing you new up. towards over improvement, ramping with but customers that would yield So just point in more time customers

Richard Collamer Close

what and are environment, selling versus made in like it the near-term positive most you you people just with some long-term? there. interested overall comments selling sounded about Bill, Can talk the maybe Okay. environment

William C. Lucia

of we're particularly RACs, think markets – commercial most government to and or attractive Well, commercial our both appealing, in our suite State our market. the integrity are across government product payment line The Medicaid top the is risk. and be because serve, state base plans remember, I we then continues RACs across customer

right. and typically they so have the have are margins payments (XX:XX:XX) get they to audited, So,

roll we then, see management launched unique So rest our month. in interest discuss this the product a we uptick to is have there. the in solution, which what continue of next we'll more we But an it, are the members identify engage customers from through they about we working to and manage appreciate them engagement ability to high-risk that not Care a is starting Essette as through platform Management perspective, are to talk the as them management out And approach to currently then population tool. on as them an total care

are to presenting holistic high-risk a members we or So, very approach members. managing potential high-risk

those market in So now. I think continue the base. are get of our And things customer across are resonating that the COB right upsells to course,

Jeffrey S. Sherman

care just And but Yeah. much principally would processes. much engagement focused is management government member before, mentioned marketplace both marketplace. commercial lies a complex, The add, set, we've more the more and in detailed on RFP I this

We as that risk-intelligent and both to traction get think see good we're as over there market well. think be well, dialogue to impact, products for mentioned. a going we have interest we opportunity a more started to of state have sell are going but Bill do into well that don't and XXXX products And time. upside having in are the those – the seeing there to do big going those active there's as we're product state an believe as market we we the We

Richard Collamer Close

So, a comment. follow maybe that up on last

Eliza all, State of with management, there? are engagement the set Montana talked what's the win, on health I some think that you has a in One competition state like the curious, maybe about recent the population in their of business member to just offering, people for the And running area? Cerner and care into at was like regard we Medicaid. Cerner, companies of I'm cover, it other

William C. Lucia

we the haven't seen procurement. started through a lot but procurement. buy marketing in typically We the just Well, of market, state states

RFP-driven. So,

they linked of We haven't RFPs a we're seen yet. haven't just state we're been with the new MMIS solutions, approach three we into population sell What management for helps do RFPs sell market for this. systems the But to out partners which management so lot and intelligence that risk There number have they a then analytics their everything it risk they trying of or bearing engagement. care our suite will are with right tools the wrapped do more many on don't this either finding identifying of analytics, population comes product management course, opioid now And of and are important the – of (XX:XX:XX) now. And members course, states care we them clearly is not many from haven't arena, which, become focused don't higher today have programs. based consumer the is, a RFPs our But that members. know RFPs there. on seen really for in for that seen of holistic together

Jeffrey S. Sherman

using positions foremost, well hospital do But to of the to advantage think to work data competitive and to think that an to be you that And think give how physician to data very utilize us provide have; we insights us we some and as with claims, claims. does first look claims we it data already currently be all pharmacy positioned actionable competitive, states. we and are because well the that we already which have, we

Richard Collamer Close

the on is year you any last with with My question state to – profile. lines a the that think had you this give talked I final of Can about us along you pilot? update that member Medicaid respect pilot agency health

William C. Lucia

Yes.

that talked tool is So, the we risk about. that intelligence

Richard Collamer Close

Okay.

William C. Lucia

in about state will we'll integration product Essette. and talk said state. in are five – plans I I It's the They contract next the we of month. also the only within front have market final of the health a stages. that launched – that what independently, the there formal launch subcontracts do but itself And be That's in is Eliza The with think it'll contract countersigned. not we're

Richard Collamer Close

Okay. Thank you.

Operator

you. Thank

Wells question comes Stockton from next Jamie Our Fargo. of

line Your open. now is

Jamie Stockton

Thanks morning. questions. for Good my Hey. taking

with products Just guys – are at trying as (XX:XX:XX) is you to that the a the if most some often starts is plan differentiation using of the the of I plans keep the to versus working health follow Bill, maybe the that, which state. Should in that sense of health a we this existing Medicaid vest close up moment. a all population on managed about kind think not details your you're

better members and, to the then the another, getting your have all from a data. you hey, comprehensive if of you're platform product. claims are notion because got for that getting so, maybe appreciation the one And And just moving we already you've a are plan COB the history, claims because

William C. Lucia

Yeah.

you, So, state you're right. the about detail that the not fact of But as data, the I doing tell uses we is authorizes of for the as We're well lot the launch will reasons. competitive right. a product leg-up have

accurate terms of like in members the this of services care accurate encounters realm. we are took Typically, managed – and the receiving the not of they So the pilot plans states our but important claims the care not their encounters is, in encountered of plans. What's that they're of pricing, from all terms state, or provided, pretty from managed just where (XX:XX:XX) services. the that's in state in gap services in the important the encounters

the a that new And state managed member and picture to signoff person. And a if of signs then, scoring areas. plan, care get delegated all one has in a day to of a that's encounters (XX:XX:XX) full so, under both the and claims we they reach the risk of score took them as every risk

interesting they be all So, screen physicians, a of them four better they that could six them that usually queue things. engagement to abuse opioid (XX:XX:XX) ERR in, out. potential take the for The non-compliant a path that our to months the a is, clients And top abuse. number can the the needs encounters, that those the they That patient somehow immediately it of at figure a and primary takes drugs of and it will in with will see where of be basically thing give who care, (XX:XX:XX) now. correlate

on important. impacts a in is notice more outcomes, end the real they terms better, So day and one it's very managed management care that effective getting on our person real, more of which help and

Jeffrey S. Sherman

Yeah.

help patient the way and care platform one have out their management reach you with care. platform then of the the engagement, change set if So the provide day through well as know, also they to the risk both comprehensive to a of the with as patient care best behavior management as continuum member manage we to to can profile Jamie,

and think a offering have perspective the market coming from So, do differentiated. to with unique that we something we

Jamie Stockton

one there the that's that a the of unusual QX number the in just as still view one, SG&A quarter we of think level? come anything of SG&A the non-GAAP number Okay. bonus was Jeff. that was did The And more kind or number a from in what's of I the But maybe number pretty go-forward had heavy That's great. this down should clean kind kind accrual. you – where other level,

Jeffrey S. Sherman

Yeah. clean does I stock it's noted. of mean, a number, a Jamie, that I it level include comp expense, but stepped-up

we down year. comp do will stock the so, expense, expect trend of the And for quarters remaining

Jamie Stockton

Thank great. That's you. Okay.

Operator

last of question And you. First Frank comes our Thank Sparacino from Analysis.

Your line is open. now

Frank Sparacino

guys. Hi,

Given we're any What's the Eliza, just have base? about in year attrition a meaningful the seen past client curious, you been retention?

Jeffrey S. Sherman

has very been Retention high.

it some of quarter model. in In model. see QX. about revenue talked about Eliza growth a we XXXX, think the that PMPM was in recurring on nice did We I revenue

sale can QX. every – time always a think expect on So, which is me, at as necessarily more I technology-driven a departures. that And or receptivity we are year, us model We We're revenue as seen and puts because seen in still on that occurs to member have a going a and it have we and and new more we recurring model wouldn't it cross-sales good on several Eliza engagement, any margin takes, but going we SaaS on is transactional higher expansion start the sale. new recurring lumpier a meaningful excuse – is noted, a we revenue management a marketplace quarter-to-quarter there model, as revenue we're basis, the with but until care which be believe haven't in time. view evolve seeing positions are it. to And the we getting little the over to believe transactional generation margin in see customer over Bill

Frank Sparacino

to last give kind or me of sense the I you remainder terms the the the Can trend XXXX? work backlog out in volume look us on Great. visibility through in just now and, right one you And what terms business. one as type have to of guess, PI current for of a you of side maybe of

Jeffrey S. Sherman

starting timeframe. stepped-up the saw has higher we in level but So, mentioned, level requests I'd it's – average as for a saw at stable, been September-October That of rate volume we continued. much say, run the I stable it's than our XXXX.

be we're So customer, the with existing generation that some We're an visibility as throughout can we're quicker expansions, to And to and implementing expanding that. on add revenue I think we Bill then year. good have still if continuing noted.

XXXX. overall think, digits see I grow in we So the PI double expect

to well first quarter upon think I positioned that results. we're based do

Frank Sparacino

Thank you, Jeff.

Jeffrey S. Sherman

Yeah.

Operator

call ladies Bill conclude this to you. any the Thank Lucia now closing session. back over would remarks. does and question-and-answer like And to I turn gentlemen, for our

William C. Lucia

thank to you our our quarter like quarter to Have all a for and call look Thank forward I'd a and wonderful call. weekend. attending first you. day good Well, second

Operator

for in participating Ladies program. gentlemen, conference. and you concludes today's This today's thank

day. You all may Everyone disconnect. great have a

HMS (HMSY) 4 May 182018 Q1 Earnings call transcript