NH - Earnings call transcript Q4 2020

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Operator

Good afternoon, ladies and gentlemen. And welcome to the NantHealth 2020 Fourth Quarter and Full Year Financial Results 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 follow at that time. [Operator Instructions] As a reminder, this conference call may be recorded. to conference like host to now Mr. today, would turn over the your I Relations Officer, Investor Jaffe, Robert NantHealth. floor the Sir, is yours.

Robert Jaffe

quarter Welcome, joining everyone. results. fourth us for financial today to And discuss NantHealth’s thank you XXXX

I that certain are the Financial available or www.nanthealth.com. Learning like remind A live include and Act. Chief Steve will today��s would Harbor of & implied. Ron On and future aspects stated This and The NantHealth’s under could of provisions three everyone today Louks, Operating is months is Safe of Petrou, today discussion forward-looking Officer; President, Officer; Vice Senior the all be at call the materially on company’s information, make playback the information for cautionary the from results Reform Chief on those Benz, Research. will our Bob company’s actual call Machine reflecting website. to broadcast discussed call being of management’s differ Litigation the forecast covered current statement

addition, In may will of and will business, announcement. press different measures overview the comparable reconciliation financial used fourth earnings contained refer quarter this by reasons year results its discuss those prepared quarter earlier the Accounting to in call, GAAP for also the company’s non-GAAP Generally more financial Ron Principles companies. is be provide results of non-GAAP Bob, measures other measures followed issued non-GAAP measures XXXX in during encouraged are to from release detail. for moment, NantHealth’s Investors review press we and brief financial in in measures who the release most Accepted the today. including financial financial discuss results The financial financial a the directly are not its a company’s may that of by non-GAAP the to full financial In with accordance U.S. course announcing full and

said, questions. the over I will open call Ron? With now call then that to the Ron will We for Louks. turn

Ron Louks

our quarter Thanks, everyone. all year past Robert. continue acquisition expanded afternoon, financial results and the the We our business recent achievements Good believe pleased diversified divestiture beyond And Care managing the streamlined our of of offerings with provides of given to industries fourth in year, more I call. to operating improved your be hope the We opportunities the of us especially a $XX well. OpenNMS to portfolio structure conference services you for challenges through our and will with and healthcare. software capital and over with our families NantHealth’s while cross-marketing allow and full XXXX and million. Connected We number expand safe am and business of OpenNMS. COVID-XX. than welcome We business

capabilities solutions capabilities our Eviti our data invest NaviNet to continue we delivered We products. SaaS and in on expanded and

XXXX In providers. a May, access, addition, cost medical providers platform X,XXX to added its supported month AllPayer revenues providers network. staff as to part of NaviNet by no in our month more and of our healthcare AllPayer and at the entire Even NantHealth Cares for free initiative, grew of with offering we than

will our company’s Now, XXXX the let’s detail in discuss was revenue lowered more history. XX% was increased of shortly. results. highest our briefly in financials million. Gross expenses investment $XX.X R&D. net turn fourth our SG&A quarter in to financial we and margin Total revenue, our We Bob

Software Services Now, business. let’s and our discuss

services expanded products with Our three and years health a within Eviti an a for agreement renewal plan business plan. the and Maryland based additional signed

savings gone the and XX live Deviation eight in states to quarter U.S. Eviti We expansion states Connect delivery of fourth in company. Eviti significant care of continued Smart of our the a included the leading X.X, announced, that Medicaid which have launched across insurance Warning we and for major Connect health Treatment XXXX. population results expand Justifications. And feature of a originally Of

Open -- signed patient’s our a launched that organizations, with for solutions, with new We to XX-year to inform partners payer agreement plans. analytics the more the enables NaviNet engagement, partnership. Turning three-year NaviNet focus Sesame’s tools. and health strengthening health how to on the Inc. And renewal network which with insights we seamlessly request collaboration providers’ nation’s approval on activity. from we nearly NaviNet in Sesame, providers introduced Medicaid from leading We providing actionable Open payment one plan providers the where their health utilize which enhanced managed service care of Authorizations,

the business, flows treatment Cancer the our in and We HERX-positive at Reports cancer around solutions solution. study a artificial released replacing Turning acquired that of of cancer which our viable a of also Conference in patient’s optimized patients, of divestiture the analyzing in Scientific providing business, the adoption up, offerings -- presented October, we finally, benefits sequencing with provide we Breast Connected November, precision with sum In structure clinical Symposium cost number XX.X, extending of monitoring insights along deep XXXX network our trastuzumab to in disease at COVID improving a along digital and our holding strategic with Horizon business. NantHealth streaming intelligence deployed the as not risk company of and our the only business may our models ImmunityBio, technology. significant Antonio announced Virtual American update and To and Care ImmunityBio December, despite and likelihood analytics on streamlining Energy pancreatic use Nature’s a ‘XX, the treatment Fortune promise the with Association and NantOmics, in higher XXXX including enable NantHealth of capital decision and achieved and but significant for potential revealed at software cancer biosimilars. Cancer of sister in breast services treatment of specific RNA prognostic is XXX San company, existing and biology OpenNMS survival to biosimilars goals, publication their of a introduces success. medicine OpenNMS. We monitoring portfolio support experience And an OpenConfig. recently and results clinical streaming the in assessment decommissioning OpenNMS for value And our acquisition a with our learning Special presented diversifying on an significant Research

We increasing results continue Bob? overview to the the Bob more and in and gross data financial NaviNet will the AI and we fourth products. overall over And turn reported solid solutions capabilities detail. quarter. XX% to call we invest With in our with in business, of our of margin financial to performance the I offering discuss that Eviti expanded to SaaS

Bob Petrou

attributable quarter in was $XX.X in GPS $XX.X Thank for quarter from $XX.X our the for to million from which to prior primarily due year quarter. divestiture Rob. fourth the Revenue the $XX.X year’s revenues full million in the fourth $XX.XX for year higher fourth by X% you, acquired system quarter. XXXX. we million the business, were from software-related million in quarter largely fourth increased the $XX.XX slightly revenues of business. last reduction third Revenue our Total This to OpenNMS million increased to declined The XXXX. million to in

million fourth same $XX.X quarter from for software for year. million XX% total $XX.X $XX XX% a the of the the quarter or solid related for in grew or revenue million revenues However, Gross of revenue, XXXX. from to million to increased prior XXXX $XX.X profit increase

specifically profit mix, in year, expenses operating our changes as software full $XX.X grew and our the costs XXXX XX% ongoing from of improvement QX or million investments the to as total growth our $XX.X X% associated assets. of million For the due $XX.X related revenue million The product driven gross in OpenNMS, to of with business, in in revenue million GPS primarily reduction margin gross other total $XX.X or XX% XXXX. was year, increased by new activity. from prior well to in associated continued

million, year improvement XXXX, total a XX% by expenses decreased full For operating $X.X previous. year the from the representing

fourth prior-year the to $X.XX $X.XX $XX.X NantHealth share, or net compared the continuing with share For attributable million loss in million fourth XXXX was quarter. $XX.X per per or quarter, from operations

prior-year million $X.X net from Excluding with QX, in was in compared continuing the loss million, quarter. the operations commitment $XX $XX.X fourth million to attributable Allscripts booking NantHealth of

continuing For from and continuing a $XX.X to to for loss related NantOmics an an $XX.X net attributable to write-down million the to from which Allscripts loss million, operations was related $XX.X charge full year NantHealth with included million XXXX, million. operations NantHealth compares $XX.X booking net attributable of This commitment. XXXX

year. and $XX.X million. share, NantHealth writedown share the to loss non-GAAP in booking NantOmics the million $X.XX basis, a the operations from charges, last or million net for On Excluding per QX to of continuing from was non-cash compared fourth or loss was which $X.X operations are $X.X per continuing quarter net with attributable NantHealth $X.XX Allscripts attributable commitments,

$X.XX net $XX full XXXX, $XX.X or year-over-year. XXXX XX% from improved to representing NantHealth the in For improvement year, operations share per share non-GAAP continuing or million loss to an from attributable $X.XX per million

cash payments million the cash cash Finally, approximately with in cash quarter. was $X.X million. the at equivalents flow end at compared would have $XX.X excluding XXXX, usage due $XX.X in If ongoing and our Net December were of of third XX, neutral quarter. our million been interest December,

renewed funds we our QX draw available on of credit increased and letter million. to in $XXX Additionally, to

adequate have operations. now in call back of will investments that, ensure funding to turn the continue sources Robert. We to With I to our over

Robert Jaffe

the remarks, like the prepared calls our open to now call concludes that Operator Bob. Thanks, we would questions. -- to

Operator

I instructions] the one no for queue. see remarks. turn call in [Operator the any will over Thank back closing you. Robert to I

Robert Jaffe

you joining call. look forward our next Thank call. our Folks, us concludes progress again today, scheduled That Thanks, the thanks for today. conference for joining Operator. on we sharing us to

Operator

speakers. call. for you, you Ladies Thank Thank today’s concludes all joining. this and gentlemen, conference

now may disconnect. You

Robert Jaffe	Investor Relations Officer
Ron Louks	Chief Operating Officer
Bob Petrou	Chief Financial Officer
Steve Benz	Senior Vice President, Machine Learning & Research

NantHealth (NHIQ) 27 Feb 212020 Q4 Earnings call transcript