MDVL - Earnings call transcript Q3 2021

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Operator

Hello, ladies and gentlemen, and welcome to today's conference call. My name is Natasha, and I'll be coordinating your call today. I will now hand you over to Caroline Paul from Investor Relations. Over to you.

Caroline Paul

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

Kilroy, and Officer; Corporate Ed Chief Ramona are Officer Financial Controller. me Chief and Executive Seabaugh, Joining Earlier today, MedAvail third quarter Holdings released financial September XXXX. results XX, ended for the company’s release A the is website. available copy press on of the

statements risks COVID-XX guarantee in of provisions we predictions statements margin and them and to these expectations All Litigation market without considering results events for prospects future our are additional relate on make during decision Accordingly, from not such Any actual limitation, performance in the within made associated the your will gross operating and XXXX. upon the pursuant in may that Before future that are management, XXXX of various not on Also, forward-looking do undue making to with Reform federal for expenses or statements. that our expense forward-looking those These including risks future management harbor recovery, differ that reliance performance. statements of anticipated materially or statements, not statements response I’d opportunity these to or remind and investment you those for or our should based and guidance or statements. this implied the rely cause an of statements like in you assumptions. forward-looking organization statements of by begin, business and contained hiring, events, place question. and our should make on securities and Securities estimates operating management involve this revenue, include and meaning expansion material forward-looking and growth call current uncertainties to reimbursement, could Act the to performance, trends are and statements Private results expectations to laws, relating without similar financial statements safe forward-looking which impact call

uncertainties Form disclaims XX, XX-K and required conference Exchange except over obligation November please is by the And or the Risk as XXXX. future law and the in Form and with update a call to today, the or filed list forward-looking section it new Ed. MedAvail I financial of associated revise the projections Factors time-sensitive Holdings events and refer call business, broadcast XX-Q because otherwise. any information, to with intention of turn will only This live contains or accurate recent as statements, whether For and with information that, risks description Commission. Securities of are to any our most our

Ed Kilroy

you, us. and Thank Caroline you joining thank and good everyone afternoon, for

sequential We top line growth are of XX% XXXX. encouraged second our strong quarter the revenue performance of by from

has As retail technology-enabled of segments; comprised large and technology retail touch a reminder, revenues the these to two pharmacy customers our high business their consists technologies from support our or pharmacy pharmacy operation operations. the sales of own sale to of model of services pharmacy, provision

from of the growth generated Our $X.X period in increase of over a and representing of sales XXXX in this XXXX, second quarter segment the third retail pharmacy XXX% XX% revenue quarter XXXX. million

land the second recognized XX%. progress million made year-over-year non-recurring from of patient year, and we benefit accounting agreement for are focused SpotRx day. them partners a our sites providers After into and the and in first and are pharmacy third conjunction every our potential results accounting pharmacy revenues a proposition partnerships signing unique existing meaningful pharmacy large we deliver revenues XXXX, this delivering one-time the model. embedded return increased new value included remained quarter of expanding saw to excluding on during We technology momentum in have a adjustment, XX% decreased XXXX medication focused quarter, challenging of to improving We operators half adherence strategy. of one-time the Our These the Notably $XXX,XXX. to our and care $X.X sites satisfaction, XXXX growing technology each expand with clients. both to a with on with approximately clinic that with and of maximize numbers commercial

Our their our star important prevent the operationalize place Medicare tracking able a that we lean ratings to quarter evaluating actions we had such beginning end, and number We clients. or our of a metrics Geographically, centers are on data client and work as clients as with the XX of partners. clinic with in to by two level site. patients continue installations, valuable such new in therefore hospitalizations in Arizona, reimbursement perform state. patient, The three real by new Health, clinic time CareMore patients quarter. PDC of By third value-based and in [indiscernible] market, XX our clinic identifies SpotRx care and we nine help led are scores, in influence installed and operational third at-risk we metrics to new covered their proportion from clinicians as clinic Florida. were that with strong other and auto-refill, med in are These can to expand California, deployment as CMS. Access sites deployed enables days Health we to To

in-clinic our track also to by We XXXX. with on have deployments expectation new XX yearend remain

in development, new business within current delivering third the to well our We partnerships. states deployed on as execute quarter, continue as expansion

with an and In initial expansion continue for patients We in we further access IMA patients. Central serves four grow model geographic medication IMA pharmacy medical an work a adherence them. of across we planning agreement with XX growing September, services signed wellness medical network centers Florida. objective to with provider Medical to Group, as clients embed our clinics with an IMA our SpotRx improve to and into

InnovaCare, beneficiaries demonstrate SpotRx's to three more and in clinics. we strong eligible InnovaCare to delivery continued access career SpotRx clinic value-based dual leader today, including large our agreement in patients XX providers. the to This our signed market, than account concentrated Orlando managers key a initial than at across announced As InnovaCare and support one kiosks, transforming a home with locations in XXX,XXX value also XXX,XXX with offer Florida, proposition care an our states care and expansion Medicare delivery patients by over of manages more area. lives,

new new with partnerships, are these and growing deployments foundation with value-based growth Importantly, the and building and large new we for care scalable providers. sustainable

market importantly, Epic to Health Sam's continues time United Health deal their technology Currently, such work. a Providence Kaiser such Resources installed Our our to work working segment prospects clients us and pharmacy production our opens software. Resources the electronic as Club, of to in announce they integrated us installed technology environments operate Clients many the users to development deployments started approximately did networks or software as and multiple capability have from with we advantage the are the this closely deployment and integration a we a MedAvail of with Epic this using health signing for for Most full to delivery XXX have take pharmacy -- technology. Texas intend there Texas MedAvail. pharmacy expedite opportunity in represent significant the installed and This we our Today, continue customers plus that immigration technology. for to as who States. are pharmacy Health are reduce and as Previously, record forward. have of integration health with that the move with Epic Epic

sales also the to resources second are integration be of We Epic accelerate is completed work the adding XXXX. currently The to opportunity. in scheduled quarter

we we last The be from rate Turning timelines expect in excluding we this least to XXX% of revenue see the XXXX XXXX, in line the our and net new are mentioned, growth seeing geographies. first we to ongoing Further to XXXX, continue unchanged installation quarter. to outlook; deliver and to expansion $XX given excess one-time the to at expect dispense top for our offerings previously continue million. expect benefit from physical growth revenue into our maintain to remain in demand

Finally, and growth healthcare leadership expertise brings initiatives, of invaluable as as to have to our we XX be executing CFO. and operational financial Ramona's performance. drive in team with excited over will announced pharmacy Seabaugh strong Ramona services we organizations our experience September, years strategy leading strategic join Ramona in are

against financial to opportunity partner the continues on-site be strategy to The results. the to third execute as our of grow excited ahead. risk market and we are review a clinic quickly in pharmacy and are operators the with continue our about business the over We call marketplace. and to we quarter are turn leading to top advantage Ramona now our gap] development Medicare pleased [audio bearing growth that build I'll our we provide to With

Ramona Seabaugh

to I joining look team you, excited the the business forward strategy. Thank partnering with to as am and Ed. be growth continue to execute on MedAvail we very

$X.X XX% of for revenue the $X.X net third same September in million our XXXX period the a months into quarter from was year. prior million XX, Turning results, three ended decrease the

to decrease revenue $X.X services due in in agreement was XX, of this retail XXXX ended million. the associated a September months earlier, decrease XXX% was increase pharmacy the This non-recurring offset mentioned of As completion by was sales. three commercial

sales. past, have these patterns level can large to associated processing part sales from technology we with to As capital the indicated pharmacy variable quarter enterprise quarter, in in be due

flat Ed quarter quarter the was during the margin compared XXXX. the prior the segment in Gross quarter, to agreement of with non-recurring year from of centers third third XX Gross recognized margin mentioned, XXXX $X.X one-time conjunction pharmacy in completed in XX in period. from XXXX. third sequentially med accounting quarter XXXX quarter million non-cash As retail third the the XX% second as services and X% deployed of benefit to we for of includes a compared the commercial the of the

expected for the quarter million, continued of one-time increase XX%. other the expenses our the XX% quarter third was million for XXXX, in expenses was of and operating benefit, in of operating margin in were including $X third expenses facilities third gross focus, primarily of investments operations quarter the this necessary $XX.X XXXX Florida. out increase in XXXX. for build Excluding from personnel, Total a launch This by driven operating the of

XX.X initiative investments million and million reflecting capability, various with We important expense, approximately packaging. ended quarter by a to fourth shares. equivalent. have $X.X which we to third million share and in quarter in Adjusted the to automate the XXXX a the in to continue a million based calculate compliance exclude quarter loss growth our compared average quarter non-recurring 'XX common count including EBITDA, of investments compensation about. talk other have XX.X third heard of you've and million stock investments in $XX.X outstanding of cash approximately us shares cash now of of expect weighted the depreciation we service We third and amortization, and expenses of the was XXXX and of loss our make back additional we workflows interest adding in to Additionally, accelerated customer stock income $XX.X

our outlook to to and we Turning continue $XX deployments new at million year. least revenue this net XX expect for XXXX, in-clinic

the Regarding And call for gross to on margin gross turn have throughout as execute outlook, to our previously our continue comments. focused we Ed balance we XXXX of on back improving discussed. the remain I'll initiatives we over closing that, with the margins

Ed Kilroy

the Thank Thank you you, Ramona. joining call today. for

the this With on of momentum the And quarter, you in our we third updating that, execute in forward return we Operator? progress now up look for with to expanding open as it questions. market. will to we continue

Operator

Now go Charles, your is instructions] open. Rhyee question Cowen. first from we [Operator Please now of take Charles our ahead. line

Charles Rhyee

of quarter. deployments Yeah, here I where far fourth here could the at for quarter. obviously ask taking XX it here where about we're the you questions. so in Maybe we're Ed, like And -- any get of update of some third where strong you XX, if thanks at a these, first lot. give here are to to in an XX the need, update on we're thanks of as number Can deployments quarter, a getting clearly target mid looks to your sort less

Ed Kilroy

fully into And, would say XX as track line are Charles, would to that deliver have of just year on for as expect. you we those we the sight full the we I outlined. good a

and on deploying We be monthly happening throughout the they're a quarter will so, basis.

the reconfirming are we again, So XX.

Charles Rhyee

I Thanks. update get pharmacies has of last kind the of talked in think sites another here question board about changes great. quarter Okay, is, some delays really you caused running there. and up that to any

improved I timelines of talked X-week had XX-week some have delays. think if all. that -- to about you those has at Wondering

Ed Kilroy

and are as Michigan. anticipating haven't We not balance any take I'm a the moving Arizona the any and now. forward -- And we don't consideration changes isn't of Obviously, board just note, into there the for California seen as in deploying right pharmacy as year. and in Florida, are of Charles there inspection that we and

we that can a mentioned Florida, earlier. no so, states And change move the we little there's but been to in quicker other

Charles Rhyee

better utilization have revenues elective back? seen two maybe just delays other some came were I a one kind And procedures COVID little as than talked volumes ones, higher then some know about maybe bit just expecting. as come in you we is Have quick of on companies expenses. in related well

seeing and team, helping you you're you what Thanks. the you start next maybe then you, priorities the question your of you step. here Ramona, curious there? terms Just would for are think lastly, as in come what list kind taking -- of with a what working about, And MedAvail here as

Ed Kilroy

thanks, Charles. So,

So and patient the I'll say perspective, I'll clinic with volume just -- in jump a from visits.

to continue improvements see seen those the to quarter as fourth would have I quarter. well. into We quarter expect to

we, we improve similar patterns as which approvals, we board or into -- in part consideration what discussed of the is back against any the we've of continue planning the say, come that encouraged the see timelines of last I taken is we've seeing to on should did Ramona? but year the You pharmacy into the comment Obviously half very previously. traffic are which year,

Ramona Seabaugh

on our Charles. Hi, continue both around for this us this clearly drive have overall role, of areas want some I continue Yeah, to operating continued cash then improving reducing burn. see Example, and to And fulfil focus to business. Ed. financials units. to be our company productivity overall we end our the will in by focus Thanks our agreement within with with and will We key growth maybe deploying efficiency McKesson segments on start top into programs our to finally the line coming we an our of to year.

the So those majority buckets that the we three time. will of are probably spend our

Charles Rhyee

of can the pharmacies Would refill would fill It's that up work, that be just to the great. your central partnering pharmacy alleviate central McKesson? follow What some on first would leave more doing for with That's your I need to and would McKesson. then? do prescriptions that

Ramona Seabaugh

ahead. yeah, So go

Sorry Ed.

Ed Kilroy

Charles medication order is going XX-day pharmacy. for us McKesson into is We What packaging then process to [ph]. would Biles that XX-day, in doing be say our XX-day, the

the what pill into the because breakdown us doing management, saving managing it's also the customer at be is inventory counting So they the inventory their by then would and end.

Charles Rhyee

I see.

Okay. financial… And what of kind

Ed Kilroy

Its labor reduction?

Charles Rhyee

Right.

I that more would say that next So it year.

Ed Kilroy

refills savings, now, be we're I Obviously, to it would process. percent beginning driving right it, to productivity the out. through number move just improve we on now we're this because would, certainly you as Yes, we we our into roll want that And don't specific evaluating maximize are on right our of XXXX. counting but that to dollar but have a

Charles Rhyee

right. All you. Great. Thank

Operator

ahead. now Lake take of question Go our Charles. your you, We [Operator open. Please. Street next Brooks Markets. Capital Thank instructions] O'Neil line is from Brooks,

UnidentifiedAnalyst

operates InnovaCare or into clinics, Hi can get for XX that you guys. opportunity the InnovaCare This signed is see discuss given locations thanks than more I filling in has [ph] Florida, question. the other Travis open for to that Brooks. Spangler clinics so? in to three SpotRx And my and taking XX

Ed Kilroy

in of our I that growth. are all we discussions with enterprise would regards customers to say with continued

plans, for to I can we is but have a impact adherence patient the them a on have speak So, can't direct InnovaCare's we important business. internal and -- satisfaction, very as which offering

that earn we right in there are going we an that to business. have the will with expectation So

UnidentifiedAnalyst

home Got the delivery see to of you their like it. And visit? in guys option opportunity at one patients medications pick more the end the a question. shift Do do clinic up your or

Ed Kilroy

we career chronic the when patients home visiting have both of up number when a site are when first we large receive do of to prefer of channel it filled clinic, to delivered. they're to medication little fills itself, choose but on Certainly those the we some refills. chronic pick it the others medications, either a choose see for the at them can see their patients that have It's,

UnidentifiedAnalyst

you Sounds Thanks my questions. guys good. for answering

Operator

Rhyee line of followup your a go from we is question Charles, ahead. open. you, have also Brooks, Charles Please Thank Cowen.

Charles Rhyee

here we a that year? better think can as we with are look year. about taking next line takes guys than sites we're those for puts been in And of deployments, some of Ed, at here. the kind seeing follow least number, expecting. you be means of about maybe to revenues, out XXX% the do like in you little to on revenue do you not into are What When that? achieving in talk factors a for where growth year Thanks this of ramping sooner we kind the it swing had round tracking next kind think which think want that up clearly should at looks of kind commitment and generating maybe

Ed Kilroy

Charles of Well, we'll the put put important. the think is XX year year, go-live obviously in the deployment I this very this have of in we have

will of next live get cadence quarterly the then, the So important. I'll timing into of the And be go those deployments. year say as of we

we guidance year know But sites deployed in last were you of provided certainly As vast the that sites. you for of in our know volume this haven't first we the next year from do of yet deployed part that any half majority June. the

there of So of not a was those. benefit lot

that XXXX, that we hoping on we're we're should in we we have the cadence year have say the into clients number this or smoother a operating based of in as in. So move Jarvis I

exit for ground. at key will factor So as XXXX, this have be with year the that'll we we be us sites that but we into scaling continued the very within the get driving main --

Charles Rhyee

then Or expect this how it would can you weighted because terms even quickly year, and manufacturer, of expect the of cadence any just in going update switching were starts in of beyond of, us 'XX fair clinic deployments deployments? half most the to back seasonality you contract about obviously is think of these, some kind that you think, of becoming might forward And the is throughout there here year? your more and partners the deployments that of

Ed Kilroy

is holiday quarter, I the manufacturing seasonality, mainly They contract in a things we aren't bit hours year. an go see in into so XXXX. of going With don't first people to fourth the regards down not deploying and although early that next late are a well, very is seasonality, slowing the that So into say a the usually we would as of operation. quarter season issue

from then certainly see be we but And there's that So, to move that, perspective. provided I deployment have other next XXXX. will really guidance haven't said, cadence than for year, a we seasonality no we a expecting as we smoother as through

Charles Rhyee

Great. And I in has maybe here, in. ask their fertile Florida making obviously ground you're for sounds been could any just if more lot expansions. very I on one the Texas guys, like of efforts then on about to a update thinking to how you be a here know state radar inroads where

Ed Kilroy

clients for Florida Most market correct. a the in but sites our absolutely a you're that footprint signing based clients, as Texas. on in not most at significant those there's a very, So of current have, far, other we've so looking Florida all, opportunity. certainly Florida that And of the the us. just within have clients, is got we clients, presence significant well we'd very ever large done state, as very

discussions play a as state are in state, is customers we are our that but there's So well. also a others with that that of couple that about having

up the being before. growth time. many discussions path states ones certainly and on want Texas, But a we're talked to having as the think how key at number to So, we we're of about certainly with very we open active we've one one about of on that have states

Charles Rhyee

he all about is to it, expansion more deploy clearly think be of of what resources to you maybe your sorry, second at are rate, the I maybe kind of I capacity to currently, that a do to now, the for deploy, just think capacity? deploy that your one because, cadence max end to quickly, of the partners Sorry, did sort schedule if terms What as your of that If be plans deployment XX your capacity think assuming right in willing we ask the of in able of basically this quarter. and quarter, able the and here. XX quarter

Ed Kilroy

plan. cam. the Yeah, we're driven the the staff I'm not because Charles, part we're longest going we really is deployment our training technology a installation, hiring as and that In max by to It's declare deploy. education of the physical going the our actual site -- specific of the of usually is it clinic into. not a It's the of

our So managers. clinic account

more -- our did as skills and and up people usually pace training our move as have clinics, the the we so, physical up again, of And of to to we we have quarter see and that the each fourth capability which faster noted, not wants of to staff our street a the XX client training in to the demand it's get and capability, on the installation, recruiting and ramped our but we us move. that more And the it's ramp you but year, internal do educating rate our hiring that than XX we'll it's to putting for the than education more

Charles Rhyee

exceed bit you Is more roadmap given it the is more did of because you you possible a XX like your issue a little seem that on partners with timing that just have or few or kind indicating the of it is up just kind were quarter just space to quarter, do of in of here? then last set a you kind that -- third it's does free to more

Ed Kilroy

the is not What XX changing -- I right guidance would Charles say we're not we're now.

Charles Rhyee

a Thanks great. Okay, lot.

Operator

you much, Thank Charles. very

We other no have questions.

for closing So hand to back I any will Ed remarks.

Ed Kilroy

taking you Thank time look joining our on your call. updating next for us. you And nice Have a to evening. in forward we all

Operator

Thank This concludes today's joining. call. for you

may You your all disconnect lines. now

MedAvail (MDVLQ) 9 Nov 212021 Q3 Earnings call transcript