MTBC - Earnings call transcript Q1 2018

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Operator

Good day, and welcome to the MTBC First Quarter 2018 Earnings Conference Call and Webcast. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Shruti Patel, General Counsel. ahead. go Please

Shruti Patel

Executive morning, Chief Quarter Good Haq, to MTBC and our the Founder Hadi Director; Thank our Officer. Chaudhry, Call. everyone. On First President; Chief Snyder, Stephen Conference Executive Korn, Mahmud and today’s XXXX a and A. our you. Bill Chairman; Welcome Officer Financial call our are

of the are you than made during statements Act we I forward-looking within as Section statements business including any including Before statements Orion opportunities. certain amended, financial organic for of begin, of are statements, of would Securities XXE future and acquisitions that during like as Section statements the XXXX outlook of call of other growth meaning conference operational amended. acquisition and All and Securities conference forward-looking Exchange to without expected performance, call in and XXA guidance XXXX historical remind and and this Act statements, details closing other potential growth, fact, regarding made discussion this limitation our the regarding expectations the

may, sometimes negative may will, such of as and believe, plan, terms. similar anticipate, with upcoming, these words statements be estimate, the identified or Forward-looking expect, terminology

with comprehensive reflect promises and those to of Please forward-looking differ to contemplated a results and these press Forward-looking refer beyond in these statements. and you Exchange from information or opinions future are this statements. to of future are could actual undertake which our as the events. of factors our discussion could new statements more Commission, and release presentation subject these cause find revise where light only our date from performance control, we our in Securities materially will obligation of not forward-looking our that no reports filed statements to or statements many of and to and results a materially differ performance risks of of are variety guarantees uncertainties, which cause the These actual forward-looking

Finally, Please over quarter today’s performance Snyder. non-GAAP press I MTBC, call Executive With turn call the financial measures. reconciliation our on to to results GAAP to measures first of Officer results. non-GAAP refer financial XXXX a Steve. today’s certain now to will announcing refer said, that the Chief for we of our may release these Stephen

Stephen Snyder

and XXXX. for earnings Thank you, MTBC to Shruti on everyone record momentum joining thank a continued for you are year we first XXXX us we and report start our as was call. quarter pleased

since achieved profitability GAAP the as During positive first we of in quarter XXXX. we of year, net this our income milestone, another important our IPO first quarter reported

cash in stronger from an untapped are as balance sheet We debt, generating positive credit has $X operations cash $XX no virtually million. million of end April been the and of of our and line with never

since IPO, few MTBC follow If the you our things you have a us. been know story about in then

First, almost our that stock. and Management common you realize the half team Board together of

So shareholders. be interest a you profound our leadership our alignment can assured between is and there of

focus and world-class our identifying for We dozen believe, healthcare on revenue of you identify opportunity the been to of the is management in have opportunity acquisitions XXXX, processes the the we building beginning assets more to than now teams Second ever consistently have that close been. to growth. a model and close the Since we platform, business become technology, more accretive support acquisitions. And a consolidator systems we compelling the to see accretive we know committed have to our purchased proprietary unique than rising leading using been cycle third, it’s and companies, grown that sector.

to MTBC the newer for As background, those who are story.

revenue for acquisitions we cycle a of management XXXX. recognize quarter today in and of MTBC MediGain quick a closed during provide our opportunity to companies. me the management acquired like fourth cycle other recap revenue largest space the the which MediGain, consolidation began Let play

over practices MediGain best lack of comprehensive They XX platform. they experience MTBC, unlike technology lack proprietary the However, operation years team. an and management hone lack

During more and customer those MediGain MediGain’s it performance. during than it’s we in contracts, or their month. the unprofitable were of with fact was customers Not roughly one lost was each of year MediGain acquired half who unhappy cash burning model dollars before candidly million only business was revenue and more collapsing, half MediGain’s remained and quarter

our its While deploy we we its resources are if MediGain, to additional the processes. days best and were team strategically that assets we realistic believe acquired facing when with and still come, could about challenges technology we yet its empower

our chapters MediGain the to satisfied customers MediGain since purchased only into solution. Not achievable. we our course vision that were Of of promoters turn enthusiastic the that unfolded was able have proven we

Silicon on balance some with and losses we XXXX. sheet Bank into Virtually profits we no MediGain's also and With the team about boarded are members backdrop, We pursue. on in organization opportunities investors $XX addition, for MediGain talented million during and strong to $X that record reporting find line all of new now who fronts a new performance our as in within leaders we credit we turned now our ourselves with Valley untapped debt, talked cash million earlier. an have for

refers Court we assets those approval target which called with latter the this bidding purchase similar Corp are a substantially a Orion month. to of into closing the of affiliated we very its encountered month, of Orion next The to to and Health underlying we MediGain. dynamics one of of and process part subject a these with XXX entered call through sort believe Let's of agreement date sale Orion an Inc., talk bankruptcy opportunities to we XX all Earlier companies. about Orion. Orion's

that be revenues expand as potential revenues, after we management Not would its and significantly to to three These an were only driving times than new would relationships upside at closed customer physician time greater for opportunities services new that as Group a Orion. could practice transaction offering, long-term MediGain's provides niche revenues Orion the Purchasing we discounts and Orion's include it customers. with and solutions to see these growth. two new larger increased cross-selling However, even a offerings solutions service and compelling our an hospital closing our Organization present offerings acquisitions pharmaceutical likely our

addition with to a and in role are year. our available we In other record, acquisition key play various potential growth proven capital this expect during Orion, to targets track our exploring we acquisitions our

remarkable During XXXX, recall a our that our by investors year-over-year. grew we will revenues XX%

committed As to we achieve this last are to revenue year's are objective. and growth year well-positioned a believe Management exceeding rate, team we this

course any an look year important another guarantees doubling Orion run we rate forward. our on but revenues closing, organic organic end will regarding can't Hadi. plans. And growth as we exciting our of I forward additional execute our part expect floor annualized broader year-over-year basis terms the fact, our of continued $XX make acquisition presently to revenues updates be the to now in Naturally increase and by Chaudhry. of Hadi the a that on we million annualized as we rather growth President, to us objective In A. will we achieve we as providing vision it's on more to move this closing helping expect present over XXXX. than closing XXXX, and the during turn our

Hadi Chaudhry

and on first for our joining technology I thank the is you, that playing us call. Steve objective. XXXX helping our our us to and role would on Thank achieve everyone focus quarter like

electronic to our health First, with called talkEHR. regard records next-generation

way We bar our is based raising have virtual intelligent uses engines that the already automatically. and take introduced the making, medicine to further. assistant. intelligence algorithms even physician intelligent and a voice changing answer TalkEHR artificial assistant It decision recognition actions support factors and clients appropriate virtual

the growing independent strength and address hospital portfolio reduce clients. of larger we during and to base quarter the last our growth. leveraged our of uniquely increasingly needs Second, Especially, our technology operating further costs

medical generally each not Since larger background, are and revenue As using other, there platforms unnecessary leads loss. inefficiency and often redundancy, with that leakage, multiple to do which is turn platforms not groups significant these in integrated. costs are communicate

our Some platform customers leverage of end-to-end. these

third, gaps revenues develop costs. us is and bridging have these competitive applications, acquired disintegrated develop key like exchange to Orion. capability information we us support other reduce our which to systems of This others, and been add For customized helping allows providers. are to increased solutions able advantage and in drive value health continuing and And between the is team clients generation to accounts next medical to a transactions our the and between MediGain

with are will a Medication network end We information Starting which chain by history allow and quarter. without blockchain employing technology, other to block the health this EHRs of to manner. highly securing efficient protected connect in share

now turn Bill. the in Chief before to blockchain technology, for uses floor able expect Financial to our value position over to edge and We Bill on is add are Korn. I to of technology so. do will exploring Officer, the be our users, long leading to competition our the for

Bill Korn

Thank you, Hadi.

quarter a of for remarkable quarter was First XXXX MTBC.

though quarter to our are industry, lower deductibles. which our We are Most the lower QX are due materially percentage growth of reporting even quarter-over-quarter across annual the our first seasonality. cyclically clients, is of other receive revenues than to quarters by payment in typically due revenue

quarter We our together who MTBC’s million, the $X.X to an QX first year. quarter income last increased XXXX. were $X.X from since the during IPO revenue quarter million million generating of fourth of signed $X.X report are positive of almost from with the during and first million. XXXX the began quarter also revenue first $X first clients with in compared MTBC very for contract the EBITDA XXXX pleased period for XXXX same includes adjusted to revenue quarter Revenues of net GAAP

standard a standard on agreed not the of after adopted recognized trued time payments not MTBC for have healthcare amount based and each revenue ultimate was on is XXXX patient to provider as is recognition old of created is fixed our to determinable each performed the recognition standard of clients. impact new Our recognized X, the recognized the clients, which revenue Under that final visit is the revenue XXXX. met Under January revenue. revenues means XXX same recognized period at revenue for did new weeks revenue as and insurance the reported of new patients revenue standard is by a portion payments insurers a could revenue over which is which value the quarter. work level up the be ASC the based upon material on it MTBC until on

recognized the to since XXXX at due but not additional new is of recurring new quarter ,the revenue impact MTBC standard first our the the standard, revenue $XX,XXX all revenue material. During recognition is of of

the XXXX first IPO was income net quarter since in of of of improvement with with our quarter compared the quarter X.X% loss at GAAP income a or the million of companies first XXXX. three This was $X.X IPO of net purchase of Our XXXX. MTBC's and GAAP first $X.X $XX,XXX net revenue, in positive million an the time

net First to from income net to amortization positive loss of GAAP quarter dramatic GAAP $X.X of so over million was flow depreciation non-cash for GAAP our the operations generated quarter. $XXX,XXX expenses, cash due factors. four and turnaround includes $XXX,XXX $XX,XXX of of income net The a

direct a or First, costs. of $XXX,XXX XX% operating reduction in

reduction and general Second, administrative XX% a in $XXX,XXX expenses. or

reduction charges while first compared $XXX,XXX the a and acquisitions the as Third, with and some amortization XXXX. $XXX,XXX associated finally, intangible with assets fully the amortized of in restructuring elimination prior of quarter depreciation was expenses of

acquisitions standard teams quarter our restructuring and income net operating revenue than Lanka to just Sri closed during as that a our Poland work and prior on few Bangalore shifted $XX,XXX, offices gain efficiencies. dollars impact XXXX of the the Pakistan and was were First on The the we impact included in new revenue. more of our to charges obtained in India

So quarter release table standard. interested. a earnings for is which the new been recognition and back at anyone our have is first who new positive results without revenue the our would under income old the There net compares even of standard

calculated Our due to of first turnaround a common outstanding. net loss common for the income to quarter net divided positive net shareholders shares is of share of was $X.X from GAAP GAAP by net per any dividend. four XXXX dramatic loss $XXXXX net factors. The before $X.XX weighted loss average attributable always GAAP share income million to Overall, GAAP calculated the per the of the number was effects using

A XX% or First, in reduction $XXX,XXX operating direct costs. of

$XXX,XXX XX% Second, or in administrative reduction general, expenses. and

depreciation the of and in in expenses we we charges. companies the restructuring amortized fourth the of intangible and assets fully reduction bought $XXX,XXX that Third, as elimination XXXX amortization $XXX,XXX from

acquisitions $XX,XXX, recognition new standard impact impact a There revenue. just restructuring charges in income operating than restructuring charges teams were in this Poland work India offices the on first included the of we on XXXX revenue net Pakistan no year. Sri and were gain quarter closed our was Bangalore, to during in First our and more previous efficiencies. few and that the quarter The as Lanka shifted obtained of to our dollars

would our standard. without even have net recognition revenue income So, the positive been new

our included have old release in table if recognition anyone the details. earnings the our We interested to used as back of had comparing standard, a the is first see revenue so we quarter

though per the loss is income calculated net EBITDA common shareholders. loss was outstanding. GAAP income That's to weighted XXXX adjusted $X.XX GAAP overall before negative of last Adjusted X.X% is the was attributable share by for XX.X% quarter compared calculated always Our of to net shares which first per on net net $XXX,XXX why shareholders, loss GAAP or there share always for XXXX of GAAP same positive. based using loss even subtracts per net any first of effect $XXX,XXX of EBITDA divided GAAP or the shareholders per but number income net period common negative or attributable of is common to the average value of net revenue share, the loss year. paid dividend, a our of income or in quarter is to dividends share, the revenue preferred

first expenses reflecting GAAP taxes. of non-cash an First over of last of $XXX,XXX $X.X quarter associated year, stock-based from is totaled integration as XXXX $XX,XXX is with improvement The positive net of savings quarter adjusted compensation the EBITDA same expense expense, months. difference million have net EBITDA $XX,XXX of period reflects quarter consecutive of interest depreciation adjusted income as which and and and between $X.X of in the amortization $XXX,XXX and acquisitions This $XXX,XXX million third transaction our represents the income costs nine significant we of XXXX EBITDA, adjusted achieved. provision $XXX,XXX well for prior cost the last

last of an to shares Our in same quarter improvement is $XXX,XXX the for of end income per net income net year. non-GAAP million common of $X.X period using first calculated income adjusted net $X.XX, adjusted period XXXX $XXX,XXX share compared adjusted positive Non-GAAP was negative of the outstanding.

quarter of for $XXX,XXX, quarter million First This an first improvement operating XXXX. quarter XXXX positive first X.X% since quarter the from in the IPO $XX,XXX, Non-GAAP GAAP the of operating operating positive income the in first operating was income $X.X represents loss or GAAP of with of which was income XXXX. is adjusted Company’s revenue.

cash income operating first first $X.X income, is and stock-based of measures, operating from expenses purchased non-GAAP This was cash and are integration amortization quarter our positive adjusted represents of by a intangible XXXX of $XXX,XXX. quarter as of proxy compensation costs. operations adjusted fourth measuring quarter our and our transaction flow from XXXX, of XXXX. such EBTIDA, finds adjusted First as an financial non-cash consecutive good Management improvement million assets, In non-GAAP operating the income which for generated such adjusted that the actually quarter of business. excludes

positive working Bank facility in attrition Company Company a $X March annualized Silicon cash million revenue are credit XXX% where and has repeatable agreement. the on capital secured based million of with $X.X million. had The by as the of rate revolving adjusted Valley an defined of XX, $X.X in As borrowings XXXX, approximately

under XX% A dividends XXX,XXX Capital MTBCP additional and per during Company the rate the sale of we raised have first pay the line While annum. of via time Nasdaq Bank’s net including shares shares of Preferred fund Silicon monthly a from initiatives, on offering be cash of Valley facility Valley acquisitions under the approval. $X.X April. drawn credit at during growth Silicon used million at of preferred future week trade not ticker The can public with XXXX, to its any proceeds the non-convertible the series stock SVB Market

although A perpetual Raising November and opportunities market. the can had no series take approximately the advantage virtually of bank stock was we us in consolidation no additional Company early this has debt. in $XX in the shares is after positioned the April to Our mandatory redeem per capital has at to for and preferred see redemption million the XXXX. starting cash of of April, in closed Company further end choose the $XX round By share

example, portion we acquisition if our For opportunity. use of available to a intend we Orion cash the close

proprietary technology made sheet us space. the have and Our leading our strong and experienced scalable balance consolidator in highly processes, team a

allow as succeed to XX% by having our scale grow We opportunities and record are and expand uniquely now ago. achieve equipped margins. our be our a his will Orion, successfully of assets such to MTBC to face achieve able us which to to for Orion a XXXX, significantly with I before floor Chairman more in revenue successful turn MediGain business allowed we annualized will the comments. which concluding expect That integrated over Haq, Executive purchased similar transaction months to situation and grow after their profitability further revenues profit to the integration we XX Mahmud

Mahmud Haq

Thank you, Bill.

of We $XX have end annualized update vision In pleased reflect year our our We call offering and raised support additional XXXX start we had we share their the following by thank forward year stock, continued cash likely of traction we remarkable as the record to acquisition is performance investors, our in all. on for customers, and that preferred of our front earnings Europe believe gain this have revenues providing progresses. that to additional our employees the and a in last the to since XXXX, recent to year. look million are growing of

the question. call for Operator. now will open We

Operator

the Instructions] Kevin question now will from you, go ahead. begin the we will come Please HCW. Thank of [Operator session Dede first question-and-answer And

Kevin Dede

have mean with storied if you just your purchase purchase, not teeing is to thanks wondering a I'm gentlemen, similar matter have just whether with dealt the the it I the history I'm one is in call. of morning that for given seems Orion acquisitions you dealt be? up taking or curious Good Steve, the

Stephen Snyder

again which Really for we the about in the we acquisition MediGain challenges, on we that team MediGain, we Kevin year we that scenario way outcome, will of that again Thanks encouraged like have to look those of pursued to technology that MediGain, and much the respect when and to then very for virtually ever these stakeholders. that record we question. relationships the virtually are and Orion about the challenges like think we the level and frankly was add scale one, opportunity our shareholders together, is add last And extension the day and the respect relationships, think used optimistic we at performance MediGain an us the value similar the a so MediGain of value will… the opportunity very at achieve approached and some and the be add to in look Kevin, also it's in just put like another value Orion We ever of then opportunity end to Orion by XXXX.

Kevin Dede

I very to meant Steve. the opening apologize listened I your I auction construct? carefully remarks,

Stephen Snyder

Understood, so for sure.

about if we buyer, XXX MediGain being MediGain construct like equal to going through all initially prefer a candidly go which things would as strict we of the Orion XXX talk again to was MediGain, So, auction foreclosure. a construct the

the of a of constraints For lines reasons other timing MediGain internal strict had. foreclosure, proceeded they variety and because along of

as transferred of the transaction. further account actually buyer the with luxury are The MTBC. mitigating candidly perspective has over from scenario, have you this seller and another over So terms assigned though of ensuring assets that risk it’s they some sort assumed that provides The XXX, type advantages in by really the by of that Court MediGain that they actually been accomplishing have order don't the way and are in that of the the also transferred a same of in thing. XXX terms

Kevin Dede

how what I perspective, that, the seems at why? that it's not and it. just and external that Okay of level you opportunity is auction what curious open wondering given to you I’m your the look close might guess confidence from have kind

Stephen Snyder

are XXX% right. You

like at with XXX to is regard succeed have it, financial look who to a bidder an Probably thought about to for we fewer we the doing sales, this looked in up a high at at or won't capital the of opportunity think to our at haven't that’s have have when in buyers to like team with point or we time our understand in another an they already strategic the those in, transaction bankruptcy passed strategic XX And such is as the - is something that opinion. Orion or companies buyers least fact it. being who of least have any and in and of example, the candidly And have ours. there with they is particular As that opportunity others Orion, from as XX at wouldn’t need come submitted in time, there this opportunity this regard the opportunity point the technology really platform MediGain. most or perspective interest a if in may experience a need bid

that a level are the by proceed So could bidders The confidence have but right are and we submit other aren’t bid. its that could who open there end we at guarantees. is a XXX% very come closing, process to nature day, of high going any in to the you of to

Kevin Dede

to end you the of alluded June. and way level timing? think sort I ability to any your to there get the the deal quantify your on done of confidence Is

Stephen Snyder

and enter order last based Court the Sure. is of that our who look would to timing, and Yes with matters Orion, end exclusively, provide the it they sale of in confidence we focus focus at when all information our really level our counsel occur certainly than the we terms on week vast debtors know upon XX%. to upon of higher a discussions based of outside bankruptcy the during June the the for the an June,

capital another extent, forward. be can’t creditably it transaction, a team, that only have bidder, To comes technology, doesn’t we the the in, confidence. to occur, course the to but we the of available experience able was guarantee stocky not the with course, high will to, horse a move have include, we submitting would would was quickly not have pretty in certain ours also be addition than we paid bid the amount. so only fee us that a that of to be fee have higher that to is with they Of in of only were dollar we occur, of would the if comfortable But roughly provide expense also where bid it we not have by But as the do XXX,XXX, the total out who bid, get a break-up to have course to have to which together a the to bid, level reimbursement.

Kevin Dede

Okay, thank you.

also sales spoke pretty to year. you Now, a aggressive started this

wondering, are looks that seem this that So last almost why doesn’t could you even pipeline and it is which your work figure, you acquisition so out, you growth should what side, the could approach confident on I’m year? not organic still yield that there. pipeline looks from And what like what since XX that get

Stephen Snyder

the That’s timeframe, customer Kevin, majority really very The achieve at and scale we years much attractive like to grow acquisitions where and before. to and of years. are a are like this that see much looking able be year looking to overwhelming the per prior acquired achieve last the our year come from multiple achieve to it. we and we cost to growth opportunity will

So through of to will continue acquisitions. growth majority the the come

close million extent million should the rate happen, Orion. the run of rate. get targets. We Orion that expect companies grow expect of other higher upon To year one Again, Orion able year at is wouldn’t and the that run our are upon no be the acquisition year. rate furthest this similar to are would the million in more of and in $XX to end premised us revenue the at that’s doesn’t those This be vision But belief by level. that’s scenario be that acquisitions likely nevertheless the transactions we would really all other end it a moving attractive by to that year a perspective certainly the envision on along at to continue terms would that again most than today. have $XX and to candidly forward not from from to closing going are be those a discussions with to year acquisition perspective last talk an opportunities We $XX and other the I been looking and when close premised since we began we that nevertheless

Kevin Dede

Fair enough.

may, you please. for clarifying thank question for I yes, One Steve. if Okay Hadi,

Hadi Chaudhry

ahead Kevin. Go

Kevin Dede

talk do centralized sort database application correctly. I tying in of view you and together referenced implementation records, talkEHR I'm Hadi a versus understood wondering and health why construct more your sort that to a and choose blockchain would would decentralized just what of if be you software construct?

Hadi Chaudhry

Kevin. you Thank

explain - the me the it we leveraging of let are using using on integrated continuously and continue the So database intelligence the the the and improve from is one EHR part usage it or artificial focusing which the for and HER. making to easier user

to records well of back as EHRs other is decision your coming employee user so can in so on the patient making blockchain industry. the way perspective, of different the the talking EHR interacting exchanges. use the responding you EHR and of have blockchain with your between technology the after exchanges and information back purpose have well. and From health as start keep you keep was those the the updating information communicating up, can the to different say when like using health with Few one a AI can connecting voice and the years virtual the in taking introduced actions EHR recognition more it in as added also to office, appropriate the the We talking

there the if be specialist could physician EHRs. is the the A no of B a seen good has a a wants patient, between for health patient’s there who record which is to So existed that there A physician physician look the the patients mechanism two and is at same

certified that share using exchanges health patient’s So or to one records. communicate or the use information health method we will the to continue

the due and to to as pieces get healthcare and probability it of there chain blockchain of design the is secure, has strict some connect blocks the ranger starting can any this industry its you say EHR and these other to interchange there data. the and can high same getting in is technology get secure the can So more in own because regularized share of blockchain this those data evolved built more further technology, is of a

of protected the So evolve, in on. thing this patients that further the it health blockchain be will as able be health will share is purpose prescription the share so to their same technology And we and details, specific this leveraging so of be the different the information lab between we the for can used any blockchain we EHRs. expect industry so details - and to

that as that far stays that from have the same every there, have. integrated application is and integrated the operating database as currently connecting we database, still So we

Kevin Dede

you can hope you [indiscernible], platform leverage. to is using Compliance? that what on Okay, more you how Are thinking your about thinking regarding ensure specific the and you then do that HIPPA be

Hadi Chaudhry

Okay.

specifically those may making you regularized implemented. to are these there the I which sure the being being things, to in few say blockchain, considered can I it pieces standard mentioned when are those HIPPA healthcare of So as or are about some we get talk of Compliance, the industry, of type comes not but that but the high earlier probability is requirements,

default and all the the the sure built-in So is mentioned absolutely HIPPA system the will inherent one other specific now, than relevant thing be right in that Compliance security, out the met. the of industry design, by is, making secure requirements being that are the we design blockchain as but there much I any

Kevin Dede

taking color, very appreciate my Okay. questions. Hadi you Thank for I it. the Thank for much you gentlemen

Hadi Chaudhry

Thank you.

Stephen Snyder

Thanks Kevin.

Operator

question be Research. Zacks next Marckx Investment The of Please go from Brian ahead. will

Brian Marckx

the on congratulations quarter. and guys morning Good

you bit to RCM mean just Just comment trying that clarity for seasonally XXXX? Can terms on that low organic of more we organic sequential interpret you growth typically made are a to thoughts QX growth, little that on through of growth your industry. what remainder is in a the may based see get that the

Bill Korn

went of last have the two same revenue rehabilitation hard business Brian. a of predict, full of from all large client, growth. clients but in with of during I to live going therapy fourth in Thanks that’s live. can’t And largest beginning you new a in a quarter was one the going clients of have due before that number Large they we had providers. number up signed XXX clients another we tell when of year, We year. were a physical and which is are this are days a December, was so the practice are QX to signed They obviously that them, three organic. size, our organic signed got sign the quarter measure now process first of months Thanksgiving, we that to in up particular

business get not would to across to It’s do So, but generate you that acquisition be let to revenue, our that sales ours, an we when and on to we us new continue basis. in especially going a spend organic organically more and like will can organic continue double far recurring growth. marketing we basis, so growing clients a regular our expect many effectively efforts or no adding one inorganic on clients sales on enough

Brian Marckx

team, infrastructure, sales on still in and potential the that the I is sales plans potentially sales the in think to and of team out build strategies anyway in side one of Bill terms potentially the organic was your XXXX?

Stephen Snyder

hi there, Steve. this is Absolutely

continuing said, For gaining a are towards sales team the end first had to we sure, closing we large quarter traction. it year had successes well, continue of this out last Bill as really some of year, the as and during to our build

is support as guidance and of providing also Fusion, product. strategic former rollout Howard, who CEO, an advisor have from Practice and a We marketing our the and as join team perspective talkEHR added we founder Ryan the our

So been in his valuable. has input

that Also also team of of as half candidly on-board additional additional organic think focus close, as the we members business also that continuing Orion acquisition. add to would a we hope hope with lines growth experienced some we this on members year. come of other and result to during to transaction sales We of part our the that are be team of that acquisition, really helpful strategy we continue as second will to

would one as roughly transaction entire acquire from essentially extend on Group person would Orion X,XXX into as end we cross-selling, think which that in fee a of a understand for other of that discounts discounts the rate. Group that we that units have business pediatricians, benefit solution. we and the who be to part based negotiates is and phenomenal Organization, negotiating the on a Work we middle Purchasing of that with then again, discounted EHR receives one pharmaceutical cycle universe end the Purchasing the providers healthcare companies X,XXX instance, solution Organization. management vice healthcare For could revenue candidates with And GPO mostly versa, of our client providers sort

whether are transaction that sorts other with in we these see Orion synergies partnerships So we it be or pursuing. of

Brian Marckx

out you that terms functions of additional the be be that overseas will Orion operations? that And the you can like Based fact Are done on capabilities the GPO in bringing of your assuming closes. on integration referenced? those

Stephen Snyder

working team using We presently onshore U.S. really the with our additional those talent offshore solutions level. will members adding be globally and is throughout resources, to team then it next would have Orion to the whether on-boarding take members the be and resources, and team be that the able we to

the instance, the that if be and to alike. Group for we will They capabilities unit, marketing managing have GPO. think a about add Organization but So we and already Purchasing team sales phenomenal resources business believe, able you

Brian Marckx

you Thank Great. guys.

Stephen Snyder

Thank you.

Operator

next Amit from ahead. Please go question be of Tandon will SeeThruEquity. The

Amit Tandon

income a positive GAAP reaching Congratulation on net guys.

obviously moves real have question or important is, improvements You that mostly year other margin the in some implemented allows enable integration this which last some your My is the over operating from direct were that showing improvement? expansion. synergy costs,

Bill Korn

Thanks Amit.

providing One of the a combination firms. a it’s is responsible. team, that they about day employees things that’s if there that in and two were think really we work, synergies, a have transactions MediGain, five integration MediGain close sub-contract different like So are major case, you

we one, our client day both good employees moving were office and doing started the added weren’t Sri-Lanka as to and away who so the felt resources who job. subcontractors, than And from and Pakistan own work more more our expensive

handing small there you were There bigger been variety out get were have cost able public about of it, don’t a savings we positive smaller your space so because it's we able a low net all think transactions, So needed, are we to been generate to overhead and the use couple you you typically space a that base. But over people you months liabilities being assume get there. to expensive long-term has expensive that. as when of an in spread trends grow company we can these to the That’s do got public, integration. of if expenses hard of were for to income move fruit these revenue, of less you leases, first the fixed a that leases again all in

I result of think going about need net not so lot CFO, going another another we're need us to doubling as the CEO, we're another not gross be to our and need a able thought] bottom margin will (Ph) [grant to not a revenue to going again, line. we're those income drop to completely

Amit Tandon

us kind acquisitions Great with the to prior and the done also a to Orion, going going like so on the you potential of can with scope integration process sense respect on to give obviously up or work, of save u are already of MediGain? double work the

Bill Korn

greatest if our you say resources MediGain but after just understanding a service offshore do other a years we will And do transaction. keep, by can Again, who reduce provide net go providing experience to see those candidly you will job to ability that better we've as we subcontractors clients to possible cross-sell services, able will to effective probably and the people probably see rate, a service good it's the XXX members to little a then to get our and double in the be adding start both maybe people couple a a team. to is confidence as So people's and foremost It's you at team as XX XX individuals best first got job good Again, bottom then they've to cost are think and to with significant and line. to got again, did we see leases so about improvements we those of up the the subcontractors. with it so our and the right pretty quarters combination.

Amit Tandon

for my taking Okay, great. Thanks questions.

Operator

the hand I And gentlemen to session. Shruti that to and closing would like ladies conclude back for any our conference will remarks. Patel question-and-answer

Shruti Patel

for you and first you a call everybody Thank great you hope conference so all have joining day. our much. Thank quarter we

Operator

you you. the concluded. presentation. and has gentlemen Thank for attending conference Ladies today's Thank

You disconnect may lines. your now

CareCloud (CCLD) 15 May 182018 Q1 Earnings call transcript