Ladies and gentlemen thank you for standing by.
And welcome to the HMS Third Quarter Conference Call.
At this time, all participants are in a listen-only mode.
[Operator Instructions].
Please be advised that today's conference is being recorded.
Instructions]. [Operator
like Borchert. conference Relations. Senior ahead, now speaker to Please hand sir. Robert today Vice to would over the your go I President, Investor
Borchert Robert
everyone. you, Thank good morning and Victor,
and Joining of website Chief our me our Financial call be company and This at being Officer. Lucia, Investor accessed are our via Chief Executive and the Jeff Bill Officer Sherman, webcast could is hms.com. Chairman Relations section
we questions. will and please then website. one you the first our in financial through will question results posted we limit Bill so queue open Today's our fashion. get can and IR line financial business We ask timely follow-up, Jeff one their the press for results yourself to highlighting release recent full provide on is that a on perspective and our operating outlook and
like today reported September preliminary the financial quarter the remind and release you are third in Form not I’d that are the filed. press until XXXX is final for and morning's results to XX-Q XX, this ended
guidance, financial and and are financial subject results differ materially. including Some to will we based our uncertainties actual related make nature forward-looking their expectations in to current Such full year our to on that plans and our of we updated the XXXX and performance risks business operating today. future statements, it future our business objectives view statements see may today as are cause of those and
including this XX-K. today's company's factors the result our a considered described conjunction risk press filings, in recent As be the statements Form SEC most in and the with should release cautionary in
morning. in to comparable refer release to our to GAAP certain measures website. this Reconciliations these of measures included may the our Finally, press posted are non-GAAP financial we measures
now I'll over Bill. hand that, the to With call
Bill Lucia
year last did adjusted over HMS for reserve down EBITDA Thank first X investing quarter time total year third this months this a mixed with years EBITDA the everyone. increased X.X% results significantly. Robert, and good adjusted up but With the is in year. the quarter. revenue revenue the quarter morning our versus post cash strong and you, of Through flow releases XXXX, both including XX.X% gains and up
to continue in This flow XX% operating enabling our cash order year us generation support ago up comparable a from with flow a cash strong year-to-date on to We and significant our infrastructure in to cash capabilities product generate basis. future growth. is IT invest
business all which signing expansions to work we performance, Overall the confident past we to and lines past, given mentioned across an in revenue certain on quarter our did primarily date client of a remain for strength ago. basis. COB service have QX. COB quarter good said over potential variability our customers. negatively calls the on and attributed the QX the XX.X% be in This when favorably whole we business. third recoveries year QX of With in in quarter to ever of on of quarters us the annual we strongest have contract lines strong as in year one year compared can very impact recent to of trajectory respect of the our and each timing decline visibility also decrease in related have And to to year the
but new that cannot claims or This to lines control it's activity. on third party precise than While we're at our original treat not we lumpy not understand quarterly systems prepared the COB important handle times from carriers be Medicaid our is revenue COB generate. the phenomenon do Their we COB party third just providers. as can to claims differently of timing transaction eligibility a of claims
revenue fourth quarter. growth revenue expect for key rebound mid-single The digit this revenue to not planned. as originally the in currently is the in and lost for we we opportunity COB point full the year that anticipate is had COB We
and and to learning We development our leveraging through by our insurance solution. on work growth machine COB having continue such product an verification time as identification automation eligibility real
strong QX another trends programs. revenue last client with delivered we're commercial integrity adoption and seeing for our encouraging XX.X% as from up year solution within base both quarter in Payment existing government this
Of last course industry business by weeks program supported focused two our [indiscernible]. in integrity announced opportunity the on administrator PI is CMS heightened as by the
year most basis from revenue second recent flat X.X% health sequentially year a population quarter in was our the quarter. but Our essentially on up over
Our driven the is volume still Eliza consumer driver today business. PH which continues to be platform engagement transactional revenue, a primarily primary of our
balance revenue recurring and signing We between our to are efforts the agreements term and transaction shorter revenue. term sales working services of longer oriented
integrated XXXX we commercial did targets And planned; our this so of unfortunately This force. as beginning in we not sales work PHM overall had have not he sales into far the attained sales we our year. approach
team As our go PHM focused solely the we and sales and on rebuilding pipeline for To sales in a new refining sales both hiring which to result talent. is be strategy clear are and we market includes continue a PH leadership traction to our gain market solid.
certain our We recently improvements of scores large revenue but Eliza in through complex longer gaps and risk with more performance Eliza at period time. of this deal number appointment national and quarter payer. in over our are a revenue indicators have recurring based ramp In including A the achievement we recognized a on will second be did our also potential key upside in of which contracts then much nature ability to signed care scheduling. close sign so
their our of to We PHM also what continue clients. build capabilities state awareness
sale specific with on weather designed these eligibility reminders And Most is life a to their alley analytics programs care recently childhood with our out increase which interactions the [indiscernible] adverse pending. Medicaid members about predictive and very with a that Eliza. and and platform. in our to reaching signed initiatives of her our we set impacted complete to similar help first engine have solution critical win can example which with immunization contract management sustaining we individuals led both how leaders HMS will acquired This events. prescriptive another rates, have fact the great analytics pair by stratification redetermination like discussions certain medication customer why In is risk state we
Our health high of determinants how from so and to high members data to is algorithms analytics stratification members social other claims enrollment point cost we Eliza and believe rising risk can of engage early proactively identify prevent also the distinct event. use tools. risk why and from day historical as as It's plans
actively care. HMS consumer strong our connect to ability their high places Our engagement in risk competitive manage very members and with care to help management customers a and rising position
outreach then is to at of from to us the engagement the inform timing analytics the Eliza how the used Our wording of the mold executed took scale. the and communicate, message
Additionally we to outcomes. leading pair in this as growth to MedAdvisor management initiatives intend in Australia software HMS international continue the medication to a and relationship. with to continued invested but platform strategy October our evolve advance management the improve United of management part in in medication nurture company clinical in capabilities solution the digital Kingdom our strategic We innovation and PHM early with Australia. population alliance our also MedAdvisor, US This
and offer and strategic market In and our we growth the XXXX. for trends numerous support the sales investment combined opportunities into recent quarter for very outlook with of for our summary momentum believe XXXX positive remainder
expectations improved cross delivering will to continue on not third remain on and will curve them quarter outcomes Jeff details and clients to our We provide help on to performance Jeff. clinical additional our focused quality.
Jeff Sherman
Thank and morning. good you, Bill
in terms expectations in did of cash While to we our deliver solid QX. and up financial quarter earnings sequential our performance growth in we QX currently anticipate was and not flow revenue
Bill quarters mentioned, model performance provide extrapolate As and the as has business which to potential you guidance not remind variability why a we trend. anyone quarter for some our quarter revenue to is annual
revenue For in COB expect fourth the to specifically quarter. we currently rebound
X.X% line guidance the date a same to revenue COB to on year PI compared up the overall trending period Year reserve and X.X% initial that X.X% growth February. the we back implies This in are ago, below revenue during communicated increased revenues service was up our really the basis for excluding period. PHM same
the basis when the investment EBITDA leverage model. and operating business with expanded our you adjusted this our on both long line exclude XXX inherent expectation This in reserve the margin in over years. term Year-to-date gain release based it points quarter is
versus adjusted XXXX per diluted was quarter EPS year $X.XX share per share $X.XX in diluted Third QX ago. a
benefit investment back in million an $X.X This benefit of per adjusted share and following an company's related we EBITDA $X.X adjusted to that investment an recognized in quarter gain sale in InstaMed July. of EPS included from QX our
also a in share Adjusted adjusted costs a included EPS. $X.X about penny or related deal quarter EPS of million our this
increased XX% any a of a flow than Our %$XXX.X full in to a strong of operating ago compared settlement history. year the cash the million payment of of adjusting and operating $XX.X million remains last for cash the in with normal X.X% cash higher cash its flow year basis quarter company's year quarter XXXX. flow Year-to-date operating flow third on from to
Quick debt total million XX, cash and and return at $XX equivalents$XXX cash September XXXX.
of continue cash balance profile. This hand. funded is strong liquidity on sheet after a and million September $XX.X We have [indiscernible] to very a acquisition with
level in leading on and and As executing We in to medication our company launched a traded and with in capital our and This allocation this MedAdvisor in Australia management in line made capability for to infrastructure PHM investment geared XX% strategy capabilities. Bill initiatives. high enhancing our product business our plan a noted investment a relationship approximately be evolve publicly strategic advance our in early stake towards digital focused a IT our company. our investing ownership $X.X we sales million October continues strategy at growth remain
focus forward We to transaction opportunity with are and it will our if financial acquisition continuing criteria. meets strategic the move on and potential
basis. to period year year. be authorized total of year years. expect in a repurchases. include on recent financial currently the our This QX take when share guidance X% to full In PI for when We discretionary plan up X.X% would of and We of today updated company implies to of of you basis $XXXmillion for revenues opportunistic the we stock show to our to both to of of year approach on Directors a COB, $XX XXXX to We performance both repurchase growth $XXX reserve expect and million the remainder years. This of releases the our now million outlook account our to and Board a million. growth up $XXX addition million from to be company's sequentially $XXX to into common PHM over has revenue two
to adjusted million of XXXX. release to we and quarter full over projecting to revenue be XX.X%. range to of We're which reserve a EBITDA are the we're being this on both now of now million XX.X% year $XXX year year in gain XX.X% and would XX.X% growth full over $XX year $XXX including investment the to Similar million net income years projecting of XXXX million represents $XX growth
on outlook on details Additional questions. now modeling provided revised in our press more address which our year help were website posted this detailed for will release, morning's the
As we remarks concluding for and we we'll continue close the focus now Bill questions. results year delivering on for some positive for our our Bill? ready shareholders. clients offers and then be to will
Lucia Bill
that Thank a overall for believe tailwind XX advantage you, other now heighten program or expand We plans. rising The Recent for insurance HMS. we individuals commercial eligible coverage. should Family Kaiser its uninsured approximately and either be do the been marketplace data PI Foundation both to to rate continue leverage to and million environment payment are and accuracy subsidized has integrity highlighted uninsured to and Jeff. our industry significance experience XXXX focus continues Medicare will on Medicaid from since COB services the CMS
and covered to eligibility populations government get to year fiscal in well is HMS care state very to some these including managed services as XXXX. that of positioned Medicaid continue plan uninsured efforts the organizations type XX expansion provide
buy a pharmacy current for commercial Medicaid with across from continue both are our opportunity forward. to we the as report other up indicators to government industry of offerings. increased and and client apart are a competitors and Additionally have on large the innovative and healthcare aligned footprint and we prevention market business across of plan quality the many value showed Keiser deliver in, diverse stepped opioid set place. help focused and has as This uniquely initiatives These the clearly future that their positioned a partner. solutions payment HMS large misuse move accuracy state cost HMS solid containment, are
confident shareholders am our In organization organic our we like customers. support. our to continued remain the inorganic I of closing the to employees, both and delivering value and their for committed task enhanced and for is HMS entire our to Board growth up thank I'd
question. first the for ready now are we Operator
Session Question-and-Answer
Operator
Daniels - Q Ryan
Good the did and the what the based a how Can more of new more bit force health initial with provide and management morning that occurred Bill little hope on you reorganization talk was the sales about for sales guys, thanks the taking the team in population the on drive bit a business. going you question. kind call will for to could help detail pipeline? in there existing restructuring integrating sales then your what little view
Bill - A Lucia
Thank you, Brian.
what our PHM team attempt we on team way, account I strong that management would the by So pipeline on had we think QX. sales should we the that strong have early closing to complexity what sales commercial a the business. pretty entire I do that of in consolidated team and was primarily decided under reiterate the, train But and are we were and unique
that not can same the was the sell delivering this importation that measures new and we we realized When and product programs and about of on getting needed case imagine think and sales on this we that to leads our COB solely we prescriptive unique with Build business. were are buyers, different LE that complex of plans then who chose which to type that a into management the need directly what who and that a track While PI because is fair now health very three health that that and to we so always health, quality sale for and PHM to we analytics had the not particularly sales different understanding social could integration President are predictive needed regroup. we sell line, products you have and a a amount we course of we most is services. we determinants in focus PHM of really anticipated and a do focus over of of the a you found type do I do PHM the recruit of knowledgeable we a also person and sells the is decided people the technology sometimes sales division individual our report population deliver the force of leader
of in So balance to fruits volume that that we're starting see more more should activity in that of but change from the sell that see to only and year XXXX. expect we cross
Daniels - Ryan Q
at team seeing build sales the Okay so is they're point still number still reflected that a this or we of of far in that the out hires the marketing complete new fully group? of establishing for and of that are along are the what's spend how you leadership process direct the kind size
Bill Lucia - A
still Yes exact I but don't building the out of the we are team. team size know the
not hiring interviewing existing and we're it's not say our base. customer leveraging So and to are we we're that still
team strong quarter closing it’s we have team. most done but generation, completing sales said contract account but QX the a lot closing fast client and management of sales over With We pretty either from we said implementation. HMS that it fast build time up go it's a Products of for did our to had may our drive we're but previously use those before your contract sold a existing leads closing our particularly out done as that to have revenue not pretty the PHM. so and that will continue to we we from [indiscernible] not have
A - Jeff Sherman
year product, multi-billion traction potential add was a well we we the and Bill numbers continue service be Ellie in are ramp going our line state to knew with noted for and in our given three we longer so months smaller expected we we about so year, as very we management I up market, then the which process I care the head the good what product just was Ellie risk slower are are there winds some first products came traction breath year to would optimistic the in Yes. prospects we this into obviously And the some by getting going seeing of be and here X our clients products received be XX% we PHM there's In be opportunity. we but opportunities we traction a as market. consider are over we of a more getting ratification think into XXXX. sales a as market momentum to build but believe combined, much to growth
- Ryan Q Daniels
Okay, thanks a lot guys.
Operator
of And Matthew Gillmor Baird. our you. Thank a line come question will from next from
begin. may You
Matthew Gilmour - Q
system claims, that to payers also Bill were wanted question. the about performance the quarter, comp had COB COB think there based I some the I for what provide to could more and delays broad difficult details some had some I the mentioned of of it payers hoping of more Thanks issues appreciate subset ask or this a volume specific you you a if processing causes trend? that was was I about was
Lucia Bill - A
Thanks, but Matt. of in our This had happens sometimes it relatively XXXX. paddles of on QX in business as consistently
we I’m through. we not that So of have to name verification whose managing but eligibility going we capable PBM volume a system not paddlers was had the push of
group volume frequently. they and plus our To client consider couple people because and a if into system we handle hundred to changes Now wants XX important benefit some detailed transactions or to while PC if a information a us a our because verify verification verify number weekly I'm specific. of processing Medicaid that's we with really that's on get weird going can't our our plans, it's benefit pharmacy and use or volume monthly and daily and words whether get policy to a very be need about state able but it clients then and very medical data load to lot bases clients pharmacy that coverage down we to are to that
not payers a is or we limitations system very a PBM was claims typically systems they couple had that something then for process where So don’t Medicaid all their problems I we that’s out, the again volume a our and or of have the ready. know is that due this when low large we shutdown to regional their for are happened of capable process claims another don’t backlog so processing clients, loss revenue week that payers, system then XXXX we and us doing
final happens is and the after had we more the we unfortunately quarter tap typically on So turn that this back then in up. turn on basically we catch and what they or of do back
in sometimes because the so you per still sometimes rapid can a of not know week. And over quarters out fashion, processing they in rapid of couple fleet claims are x number systems they're only
in that and So QX little lot QX obviously QX in on less our happened more a a performance. based
A Jeff Sherman -
would up sate we COB and occur finished are QX. had we when it very in recall we strong a strong year the a XXXX QX happened in I up had about just X% the week a date And with add, and year year three also the and finished to X.X% XXXX quarters in we QX
said against up phenomenon, overall go as but not expect we in with do expectations. line be So our us are it of still Bill QX more in this rebound original I have more to than certainly new digit expected think we where there and to mid-single it's a that COB our way quarter a respect QX was lot we
Gilmour Matthew - Q
at bigger other picture looking tends earlier and have as quarter seen the bounce a quarter one if was period normally business you and or you any Thanks the when to just you lower could, just trends for have in then that accelerate back. see hoping I service you fourth
here visibility quarter. the processing had you if accelerate some of claims see those into to want fourth in Just
A - Bill Lucia
it now help occurred client going automation we of of of looking have We're by client of track work have actually at the the doing ways that some at technology new or way. lot more client in that backlog work We our by into on can some it. look them a some base a introducing that that
that know at very point it and to rebound this see expect we a we at say confident what see basically And this would client knowing specific a remain will in point. on we we I rebound detail, we QX basis. in So QX
Q - Matthew Gilmour
very Okay, much. thanks
Operator
question from Jailendra our the And you. Suisse. Thank next of line comes from Singh Credit
begin. may You
Jailendra - Q Singh
quarter your business So same about year time more essentially previous mean I reconcile want revenue guys are around you miss not you $XX or to fall guys talking in just it reflecting or in million, quarter. recovery but third quarter quarter business? whatever that short the third follow reoccur the those up full you in revenue your $XX shortfall that let's shortfall as variability does million actually third so in by to in to amount Q-X being quarter any the question, reversal are actually quarter outlook same at us conservative comments of just is assume on the the the the in fourth quarter Help reduce the
A - Lucia Bill
largest COB of then for of revenue year each a almost the we'll into next that of -- had. it over, expecting on for already with, Well million. at on back own the still volume expectations. we us. see come and single roughly Bill million that address that the and -- can won't we bleed would there what health as our be management majority remainder to expect short we two is applied Each the process to was of to so from PHM would and claims driver QX there would PHM of component, revenue side extend those we'll but COB the the the population quarter. in real the there the of then PHM COB the We've finally many in then expect said, remainder, the would times, are about side side up side, were catch quarter so $XXX that in part X/X say, related year. to we are growth We for see so revenue principal ranges the PHM to I of there of the $XXX in And our the some are see I shortfall most the the was was say some because business probably guidance, shortfall carriers be
the do strong we following pretty bleed could COB expect revenue with of year. some of we'll some from a the side, get QX So into and that in back rebound in it
- Singh Q Jailendra
my Medicaid utilization having COB having impact some verifications then be frame. and having on Any business, you and the on around enrollment Okay especially Have seen been concern thoughts, marketplace helpful. illegibility will segment? follow-up. in I've any impact your in Medicaid that that
- A Bill Lucia
indicator not spent, No, and in we've has claims data leading coming any as so our not our right? a process not lives, not have number grown and enrollment -- key through fast number but Medicaid we really our claims impact negative -- of on seen. seen is we that an seen big that dollars we We've impact of month-to-month. -- volumes claims of indicator as the systems
is because classic it able additional increased continue lives. of We to to some we get may Now scope, get spend we're do. what
them. in in from have us eligible the population, also data turns CHIP client restricted Those that past the their Medicaid may they now a states are have we pursuing our get some expending So eligibility. and on but fee,
legislation Some expend like to was broadly much ballot a initially waiver in actually in year broad, and of thought this you as they're that how general on proposed. Canada the CMS a front more and than more past
more states expansion specific populations. see to broadly on states other some continue and in we So
I I we think to continue -- So think don't outgrow.
continue outgrow. will We to
is on insurance. and off they turn. And primarily Medicaid, you commercial and on move have enrollment. think Our I insurance employers it's move they there off and revenue between People will because remember move the health Medicaid outgrow or always plans patient's to likely
of turn revenue All HMS. creates for that activities
- A Jeff Sherman
enrollment And in most COB Medicaid digit. to grow expecting year-over-year. off down shows I We're mid-single would data recent the add, X% just actually the revenue
continuing are activities there. yield to drive revenue our So
to Our continue other see COB then for making and opportunity where and help we that focus we're recoveries, orients, to XXXX. cover when are the revenues other back The higher are opportunities returns X are drive so. half that can technology and and activities. is those we where coverage, will in great and we to other find years yield more dollars Continuing the as continuing broken in into investments there. QX we yield invest we policy find go costs remains There's find coverage there and a
Operator
come Fargo. line question the from of And Stockton next Jamie will from Wells
Stockton Q - Jamie
really maybe these the just isn't other from demand. follow COB. any shortage on is up a some are guess, you I that questions client's The It guys correct? on saying that all. issue at shortfall to like side on of standpoint of sounds there Is
A - Lucia Bill
Because payer provider mean payer being or look that more. that and you're happen bring -- really of scope want you're on plan, scope you're almost way as That have those a typically every getting us, endurer be that we to to innovative commercial changes. of want quarter has certain to net-net, state positive I provider which claims build But a sure every make you margins, is the -- dollars the as to and the back year, possible rejecting those paid changes early quarterly. whether a right? or you and Medicaid on
years, the are for But parties. in be while the control expect third don't to this for going in line business that the -- been significantly, will past this we years behavior continue. because we've grow again, see business seen doing mid-single-digits, lumpy of I it technology-based to enrollments will XX-year the service we XX quarters we've smooth So it's and to But win-win healthcare a a don't COB and lumpy it's that it in and service for business grown while XX the continue old not we've system. growing, quarters. always
- Jeff A Sherman
ROI day customer needs. a be -- commercial product continues this our government for very this And is high both and to
we in federal when control from day, we but of process execution law they we a don't can't a on end think demand. coming So slowdown data again, I seen demand piece a control given claims the in that carriers This get where, side, it's these the se per and side, on processing is the in deliver, claims. the more basis, timing ROI we the haven't the always data at quarter-to-quarter we again
better So still to recover dollars. continue more get see to opportunities we and
Lucia A - Bill
in or COB think to I but in in being this have I Medicare the we've bucketed talked commercial reality, Medicaid both strong And and opportunity, general, while guess the COB, grow, continues COB -- in we markets. about this Medicaid is
the good part that year, be clients we And then to Medicare a Advantage D some as commercial-to-commercial in in their as will D which we've activity offering and that so expanding in our eventually serve plans this will successes product part helping our COB, COB well sale had market.
gift call keeps experts I we market a So it are it to the and because to COB is in a, giving we that into expand plan this, areas. hate it
Jamie Stockton Q -
then buyback, a this I was just And kind standpoint. of the mean technical, capital expiring old some program the allocations and is
still You focused M&A? disproportionally guys to on are going
A Sherman - Jeff
I -- still our a at and allocation over share an years, In review million average important of be repurchase mean opportunistic to our our as to component share value. bought back view buyback our stock, in -- $X million of for plus building continue on catalogue, in an do acquisitions just shares the continue last we've continue of consistent proven with strategy commitment program shareholder Jim, mean, to resistibility and to we as overall in we'll $XX cast below invest $XX side. share. rigid business, price X I over
opportunistic I with we've we'll share program. this good I think would be expect deployer of So opportunistic and and over well been buyback time, we've as been a buybacks
Operator
from Genuity. come of Richard line next question from our Close will And Canaccord
Close - Q Richard
population the remaining I X/X shortfall. breakdown X/X, as X/X of how you of Jeff, EBITDA in appreciate the than p shortfall that well, Is on of of I there, terms the terms revenue health the in COB? curious, think about was
A Sherman Jeff -
a the Richard. We margins blended by for is us to generally the Eliza down said break margin and well. product based PHM, basis, particularly had company's don't high similar margin a overall it product-level COB on as We
XXX the our clearly, and In majority had to at if shortfall. you with went with in So shortfall XXX earnings now on to range or guidance in the XXX that impact the revised XXX previous our our revenue COB guidance, to was revenue to revised that quarter.
year and last leverage we're the we're I margin to of margin the So are revenue remarks, our end-of-game quarters performance said we margin at on in the still prepared year, quarter was highest quarter. the have the first we three this XXX for good for continuing my as normalizing the of But to good points QX year. basis see in reserve generating. and
quarter continuing are in and revenue that The leverage that thing technology expect on to as -- the as more drive yield our to beyond. XXXX we're doing continue margins, processing generate allow to on and into that trend or in investment and drive allowing continue us to we yield, we the to side revenue become well will incremental So believe get we efficient into fourth are for XXXX. us is and
- Close Q Richard
over move force time. or -- the health subscription? trying or to volume thoughts business move that just from think revenue the And how on a then sales changes the we Do perspective an building to force trending transactional independent a timelines model about any should to population associated with this think you and there. with the And restructuring specific respect the or sales
A Jeff Sherman -
So piece, biggest I is of the revenue piece would Eliza PHM with the today. which say the
model are still the seeing We sales. subscription
was grow. it I the of into those model Except say, when bought not, subscription subscription that now. moving care sale exact risk sales the and would are product, it those expecting more to for as stratification we model are bought now entirely model. and if and management a principally, we're software We we any
expect Eliza our it can prove a we expect So do. capabilities that what to on subscription We where existing the to is to headed we're but into the seldom, view I in model, side, sell our time don't without the package going as ability customer come a combined customers. is the sale a new from think, going still we're over subscription
Operator
next line question of will our [indiscernible]. from come And
Q Unidentified Analyst -
about those you give guideline? talked little lot just So sales a XXXX, in you pipeline. can us of I strong a growth bit but terms of early specifically general in thoughts closings and about some it's know sort
Sherman A - Jeff
head Yes, positioned into we'll give think guidance, XXXX. as Steve, certainly we we're in growth for February. We continued
at we're at, look quarter X XXXX. a in the years we where of ago I had similar As quarter third
be the to market much for and is in to as I evident I think just we're able earlier, PHM. in getting acceptance market payment positioned integrity we continue product I the merging offering position fiscal to given view well. expect as overall, think in just said the growth And and to expand COB as better margins following we are what today strength company the year,
I we'll So to margin grow see XXXX. specifics February. as and continue more give That into heading think to optimistic guidance we're able be expansion, we'll we give in
Unidentified Analyst - Q
individuals who rehiring on to going or now sales people? new the moved is one into stand-alone organization out a move really and Were rebuild out who and hiring rebuilding do larger it -- And fair. full sales will you and have a That's or question PHM there other force.
A - Bill Lucia
sure we the have they needed. and areas. is is it it leadership to didn't PHM a don't -- of I some product will sale we didn't like not who as our while value as and mean a do just from our the from we It -- people. Again we what the the I to We just other necessarily of did PHM take for Eliza. this and around, move large about it move we staff single we've It's we a state mean, I people thing their important the more that's Well mean get get the because have we rate. did, raising bought of flu consolidate mail, making to complex. sales XX% Medicaid liked on to see that have I are shots, around focus did probably in up that clients pretty say they rates, which CMS to things in move very go the that alone, who people line to got them a response can they they're important [indiscernible] needle have lined basically thing the year, them [ph] immunization states of help to in about about this interest this sending and very those scorecard, in to stuff MediKids getting redetermination time we way be scored as half in have how I've electronic of happen talking childhood on November of are often a heated reminded instead year, five eligibility have
because presale to be procurement a is in state we structured So deploying the and in and where of support hired subject the state to market matter sales a there's the space sales have market starting longer more market become process a -- cycle course and of -- activities. will help that just we expert
feel about -- we we're didn't the very just think sales fit I not fixing but in of the team the strong that. take now we did we moves, So right product line consolidating and terms and its
Sherman Jeff - A
side, traditional lives the quarter the half -- the pay And state the for on still in are then cost. service, Medicaid. are But of on about managing states the
do the really any much states or not still sick are the are technology So that. managing using to patients and
So solutions. I got very help to we've our them think attractive. be manage to failed, going management population that's It's population a health ability
- Analyst Q Unidentified
you do when that the will of -- rebuild be done? think And you majority that
Jeff - Sherman A
say would those -- to expect be with and people board we'll we're of [indiscernible] done as that I in and yes rebuild a the see that part process in sales on quite QX XXXX. come looking become in the
Operator
Hooker comes from of Don question next line from the KeyBanc. our And
Hooker Donald - Q
as and revenue get be to a with in some that story? as about to maybe longer-term is collaboration or going should VitreosHealth being want this revenue tailwind mind, In a of Just growth kind to think the around I near XXXX acquisition my Medivizor. thinking synergy
Sherman - A Jeff
been Yes. they with been of product restratification Vitreos past the our predict the over Eli. plus year and working component had really We've [indiscernible]
now Eli growth Vitreos. we product. view Eli certainly continuing early to we going are the And just XXXX that story ramp fully so approach for of said, as our as Bill It's the in part with restratification sales be integrate comprehensive of and
with there we and I is in we outcomes, a both similar and large product client offering actually we're the think uniquely has some the national actually when to help our to patients this think you Bill base clinical marketplace from as with most improve of have behavior have combine payers for well talked not change product traction that once as some to positioned we to states the -- here. their with, see what importantly engage really ability us -- restratify of to as to that well been our that's meeting our positioned
A - Bill Lucia
investment the was comes Particularly problem there that significant it's a it And that. interested when is medication a add. I to international Medivizor, reasons. of a adherence. there's in -- clearly And of will lot in people -- numerous just for an stakeholders of One,
as interested S., are taking sure people they quality and the drugs in as U. outcomes of very the particularly is for much interested and First nations, the making in making patient, sure, all, Pharma prescriptions. but their paid in get refilling very their also where don't
with that we a our also global can we in solution. also in is think adherence MedAdvisor internationally better medication that lives address and and investment So in address Elli into analytics plugging issue risk by U.S. help and the our the
in and going very fruition focusing not markets a the on. the we in is to this -- for for the come to be health sales we some but just the multi-year trifecta So U.K. and are which time this population take game measured have We're Australia in for game. other quarter-by-quarter it's it plan. believe I the long both to management these U.S. get and is we complex in and we'll know the This long we're in
Interestingly, expand us Australia their channel X sure opens say the the in opportunity outreach in improve. in U.S. done up. Equally for us interesting There's are complementary -- up us just national what a MedAdvisor based then really you in big segments. interested to think management customer plans, pharma more offerings for When the our the so potential an adherence health investment making we taking and they've patients it and really our -- not important, opens that There's lives U.S. It's product that's offered and also internationally. medication the very population gives about chains. large seeing health to if important it upon there's medication
Q - Donald Hooker
competitively? about kind of anything be integrity up payment their follow nice in there seems had It's to high-level to and be area, that. Maybe environment the some there view of united maybe player. Any good would talk in which competitive numbers love some on may the of my you quarter. another see to the and Super hear the like context
Bill Lucia - A
integrity Well, customer United. coordination doesn't much doesn't Equian are consider with Medicaid traditional because slash off what do their you benefits. coordination-of-benefits us United a impact the of but really very acquisition little payment of do we They Equian
impacted hasn't us. So that really
the get better just space invest it's in the goal. the we the delivery; at payment that's past. continued framework to -- in account management an business continue have in to talked competitors And around where we've be and we integrity competitors about traditional just in that invest area technology Our same our
- Sherman A Jeff
for Advantage, $X addressable of capitalize our historical integrity, managed billion-plus total there, continues Medicaid to opportunities I think Medicare see payment side. there's lot with the market at client the opportunity lot base is -- space look a white so and to there. a and well of we we $X us. as think both still to Medicaid we rack on The perform billion still for
to see have been growth there We're more the than and expecting approved continuing auditors. new rack on getting rack We to other to continue side. approved scenarios audit audits see are the
see market optimistic there well. federal are Advantage, growth our managed for the of integrity X Medicaid and we're rack, all CMS payment we'll continue with in as stateside. really and opportunities It's So In seeing Medicare the segments. to
Hooker Donald - Q
you Thank so much. Super.
Operator
And from Jefferies. will come from line David Windley you. next Thank of the our question
You may begin
David - Q Windley
to much in the additional where morning. PHM planning opposed kind as your I'm to would existing. the Good make interpreting that is sales correctly, your sales out of comments you you of force force quantify investment If cost or ad you're how build Could here reassignment in an think be?
Sherman Jeff - A
-- think don't to I think it of the be end I day, going material. the at it's
is talent [indiscernible]. Some it just of on bringing different
little a would not material us. cost. be I activity bit the overall to think be for could incremental of there It P&L
and certain are revenue going on drive more themselves. costs to that bringing -- than think we're the I we're those for pay and
Windley David - Q
of potential sales client? PHM, Or imagination with which than this this is has Sticking rather attention already? terms new of at into it. leading products captures that in pattern three kind pattern formed and the something the all a a force after with Got forms that perhaps of of the
Lucia Bill - A
who's something Eliza either something really is or managing communicate all -- say anybody risk to Eliza -- a is effectively really That's would patients that scale. engagement question, at good clients, with member Dave. I members or needs
it. only health benefit the healthcare But we're is Eliza. large could behind at back Eliza. do even a So from have Eliza system day X.X think behind The starting not it to have It's we but public we conversations. science key million also could areas of scale, one about the outreaches benefit a even about from behavioral
do So when purchasers, they that uncover always understand detailed -- with robot really just call into you do the that has when you dig at cannot why a they with company. they level that and can't a
Elli, understand Australia they to the patients dialogue tell and we predictive the outcomes. it or been on and see they should cost determinants in prescribe of those side poor that social that's our in bulb brightest focus now that you who of there. they when incorporate health actually people I an of fact, In avoid get are But have to and prescriptive understanding better to
it. you it's difficult. force sales have a analytics very The a excited are clinical challenge a when to little product, used don't is selling about People
to going attractive. of number and be of a X front of and their course, on Elli, a Jeff them programs say experts is so We most we're year-over-year, analytics you We up MMSOs have critical very sale can of of And a small call the out sales having existing XX% so what as I'd good customer, subject that across once component. believe can't integration many the plans And that -- only is believe so compare. said the matter that's said, and line. top so mid-sized in But with it's product IPAs take very, success
enough been is lead and the very, of product. intimately market to new involved a and salespeople challenge out of a that of in types It's in the in analytics because sales that it. strategy we've value brought couple one we've he's seen ago those chief on the that officer reasons state commercial of very analytics go-to product Now both line level. the And of the months at getting announced we market,
David Windley Q -
Got helpful. it. Very
Robert A - Borchert
one to and everybody get if the still several please. you limit one in queue people question got are Thanks. We but so to follow-up, in we're can try going and
Operator
next our Charlie of CJS. the from Strauser And you. comes Thank line question from
You begin. may
Q Strauser - Charlie
morning. good Hi,
you. of in time guidance? couple you one a quick ones your Are Just expecting for any included benefits that's QX in
A Sherman - Jeff
The one any benefits No, anticipate guidance we're doesn't not. QX. in time
Strauser Charlie - Q
And of that? costs kind Got revenue thoughts then as have Any a behind project color direct quarter a declining despite of further the it. little to or seem percentage revenue the in also spike year-over-year.
Jeff - A Sherman
was we work to And technical challenges, when we some have these do by brought on are some projects. It's we additional of temporary try mainly sometimes we help driven -- some automatically on staff. specific line. in being able on temporary bring in main cause we're some bring driver that. we'll process not If to to That some that do things help additional the to
Charlie - Q Strauser
Thank Great. much. you very
Operator
question next of line SVB Leerink. our the Thank Grosslight you. from from Daniel And
You may begin.
Grosslight Q Daniel -
from Hi, guys, midpoint of it like up the for growth best in have to Jeff, the growth comment a pick COB the taking implies I to guidance a of thanks of integrity. hole your to on ever. that your question. quarters a rebound that on confident come you going want here. that sounds at have it that most to your payment guidance basis digits. commentary, like made from mid-single one pretty XX% are And to you're you But is It about that going to leaves sounds reach still
XQ a is how line confident into and how strong are you much you have going that payment really curious specifically? integrity Just to visibility have that
A - Jeff Sherman
we are we've one seeing inventory payment of our seen of say claims to I'd reviewed, integrity continues be the increase. in to things is
seen area in-house a including in record and go where have always is we to success CMS, have to know we've work an submitted findings the we actually and got but getting edits medical new where edits to we've an we through we actually customers, good there's process. that strong So have PI commercial inventory have our where approved. approval
we're Some bureaucratic but revenue QX. our are getting of would and we more traction and contemplated at are in than expecting certainly there good we approved times, like and edits complex and processes PI that's approval those more seeing growth that on audits
Grosslight Daniel - Q
one the side. on quick and one it just then PHM Got
budgetary the in of understand vendor and decisions most most like it they large make cycle of plans their I XQ. seems states As
So if you're this up probably that PHM Does building XXXX the it mean that first team quarter PHM is till opportunity? quarter, XXXX. a of really start won't the revenue
Sherman A - Jeff
Yes.
the half our care payers the back there's gaps always have to not care beginning particular, in cycle PHM on gaps opportunities for engagement so of more see side, sales per look generally in in a on the our I the year of year as of we think closing close se side business.
do of continue we think year. XX comment sales and have process. the to in government I a the XX-month in earlier really side, bills on process think procurement product be can for this states to note the I all lines quarters to our each
time getting lead in front re-procure. so of some have next with an you may capabilities opportunity And they the the to state
So is that's more commercial-driven I'd say state-driven phenomenon a than of it a phenomenon.
A - Bill Lucia
star add is, only out. ratings thing The came I would just remember,
impact as So ratings star we well.
selling that also are QX it incentive are other things plans, health of to care traction related to starting what and ratings, plans our just So management we've impact plans a so didn't happens the in cat in of star management and year-long typically we in program, introduced a in their impact where hawks beyond QX do those can attention star areas rating. We our of into that star some Advantage sale we're satisfaction customer things star that crisis this the It's of QX. cycle and cycle. self-reported as program, rating. course, still scores. the And year, There's impact we market. all get sales Well, gap QX future but rating scores, those and all state well closure other Medicare
Grosslight - Q Daniel
you. it. Got Thank
Operator
Demko Citi. Thank question on next of line you. from our the Stephanie And
begin. may You
Stephanie Demko - Q
Hey, guys, taking for you my question. thank
there's payer these digestible make any can the ideas make can With you the you systems players? there claim nothing on at internal your more end in for business COB clients, of some do change to your your the are help to submissions investments
Bill Lucia - A
that percent than the probably compete Actually, claim Medicaid electronic. third take attempts is these claims electronically. XX% because for file mean process do they reclamation our are send a carriers to payers anyone We because to with who then digestible paper we That print system some of party their know to can't a us doesn't and submissions adjudicate -- XX-plus electronic them claim. them our more
issues process. but on. We the or take doing to to day send but do. process move accommodating; the that work. closely very, we possible. to some make quarter-to-quarter, They payers can as very we we for arm work lot those the And large see these of PDMs fact we one end spent large that payers' them processing our that any a not and the and Unfortunately, settlements we labor to arm and could time, have whatever have up at payers handle at cannot they do that the there's there large can are people we're two settlements. manually And what do PDM three as payers quarter we that still But as so negotiated a of have with all while. on them So then them not the and very required process a Jeff very, that we from legally temporary and this help to we're said, with claims the that was can not is just verification needed time will end are areas do and transaction work sure easy to in working given
Q - Demko Stephanie
lumpiness that does some Understood. the in And cause business? the
Bill A - Lucia
question? Could repeat that you
Stephanie Demko Q -
just some claims the For quick we of see is on lumpiness about just a up talk volume? payers' why this one. settlements, When the in outside will -- that that follow you business
- A Lucia Bill
actuarial It's two claim in department given and of them. it closing quarter settlements, on of doing them client. we any like part. they We're or Yes. that we claim a doesn't reasons. close negotiating sent and we're new and the behalf sample. mean, I anticipate forth three our could send back The various don't We because we're sample
I we involved. new something involved the just the again, get I get to potentially negotiation, this everybody. But for for phenomenon. this. state we plan course, want -- we This now is back and set much years, So to health reiterate is Medicaid having seen a we in the of we've of not This scale that same kind QX. challenges talked quarter a larger XXXX, Harking in work, rebound on but about XX third of done
look, it's I you So think a with compare COB -- else. can't our business anybody
can. say this You experts And the before know this I can we it's We're and from in space. we a trend difficult we've really seen extrapolated it. how So to that? know to overcome
that just So it's the of a part process is business.
Q - Stephanie Demko
All business live subscription on side right, model PHM a is This things. primarily basis. of a understood. Then the with
PMPM the non-subscription the Or So to was sales through? call there any some attrition function on out compression was year-over-year? falling revenue down that a or this driving the just was of
Lucia A - Bill
didn't sales. LA No, have non-heightened transaction the didn't combination we qualified not sales have sales, it sales. And a the scale in to surge a those well, through force was more -- to of we actually a coming because make expect that fact we
knowledgeable and LA than it's we higher sales a unleashing have salespeople now more that ever product. queue have with We on
Jeff Sherman - A
and majority actually in up is Say which the year-over-year the Eliza is quarters revenue revenue. of The to, of Eliza revenue the in nature. is Stephanie transactional X biggest for component
generally it to we expected be recurring do year-over-year up. up gaps just the transactional as business work Now closing we as because characterize is terms up. of as Overall, in we same the typically the in it much It's not sale.
Demko Stephanie - Q
for it. you Thank it. guys. Got Appreciate the clarification,
Operator
Thank Guggenheim. question Kesavabhotla the from of final our come And Vikram from line you. will
You may begin
Q Kesavabhotla - Vikram
taking question. the for Thanks
at productivity of M&A you. And the of around in in a do fully sounds are at that to for update is given side, focus areas out hiring full the you'll business? the strategic on a in of the hires effort be the anything be point on any in the sales it those platform? the terms made to Just you're for there in just mostly get PHM. broader timeline offer terms building acquisition in up? partnership, end XXXX up quick one quick a think It capital done you new at appointed terms you'll takes as of then what And of what but ramped QX follow like Thank you
Lucia A - Bill
So let me sales start with team. the
our But selling people -- for of you health risk we who so not to for bonuses QX. bleed tell strong across looking type companies product bench and selling we're our So building into of it either we product year-end we're Building other opportunistic bring will degree quarter? look, of look I experienced it are couldn't always have reality in end But the waiting want this have in all talent. important. at to into you providers. analytics experience by the clinical that We Will or plans people team at we lines finish always the to is the hope so.
And be curve matter that So subject will expect be quick. experts to pretty sales as will It also additional their team. in not we bringing augment steep. we're the learning
we well it's think can plug-in that space acquisition on where to see our in those products moves we'll opportunistic, XXXX, on integrity payment next we we that for we'll product areas, areas our rebound or Vitreous, acquisitions. looking with of we're in it. in focused the really for And or PHM be we product And believe expand because needle activity side, PHM. the like I markets payment active very that acquisitions accuracy, prepared at in any whether both can we'll see lines. then we So are a a COB that all from the And technology the product be sales
- A Jeff Sherman
Bill And that expect we continue manage very continue to and we'll strategic acquisitions noted, be making we're to so at as over to have active and that look time. a pipeline continuing that
predict to Just timing. the hard
Kesavabhotla Q Vikram -
you. Okay, great, thank
Operator
Lucia turn the further Thank like for Mr. remarks. back any you. at any over this to I'd to questions closing call showing And time. not now I'm
End Q&A of
Bill Lucia
call. I want the to thank everybody for attending
again our forward Have We speaking on to to a are looking you call. fourth weekend. great quarter
Operator
call. conference you and this today's for concludes Ladies gentlemen, Thank participating.
You may now disconnect.
