MTBC - Earnings call transcript Q2 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the MTBC Second Quarter 2019 Earnings Conference Call and Webcast. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Shruti Patel, General Counsel. Please go ahead.

Shruti Patel

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

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

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

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

Events by earnings Investor and presentation. site, ir.mtbc.com, may second Please telephone, on those the download click Relations presentation. earnings For you our our visit into call download dialed the quarter XXXX

Finally, press financial to to may call, reconciliation XXXX certain to refer results. our today's announcing on measures release second non-GAAP a financial we GAAP quarter non-GAAP today's performance these for refer our of measures. Please results

to With to Officer that Stephen Executive call MTBC, of over said, now Steve? Chief Snyder. turn the the like I'd

Stephen Snyder

for Shruti, and earnings our us thank on you, Thank you, call. everyone, quarter joining XXXX second

We are very million strong quarter $X.X in and in pleased second adjusted to EBITDA. $XX.X report with a revenue million

XX%. revenue half XXXX total was million, for Our the of $XX.X first a year-over-year of increase

of year-over-year year Our adjusted representing first half million, $X.X EBITDA for was the the X% growth.

half year second associated reducing the the overall G&A increased the we XXXX. impact believe Our team Orion with strides unnecessary eliminated costs acquisition of during you'll that when acquisition. We efficiency. operating and streamlined from recent great has report Etransmedia and in direct expenses reductions made We've last and workflows, these see our of

million. of first EBITDA guidance So adjusted million recent with our pleased to XXXX, tailwinds in revenue combined $XX taken $XX integration year $X with to strong $XX from acquisitions, million and are of our the full the already reaffirm to guidance our the half million of steps we

With believe search revenue solutions our existing that for and to on while And a value request as information to and most storage, our our solutions. allow our document such purchasing service, expanding hospital offering us are for continuing new to further margins. group acquisitions, is we will add increasingly new relationships, cross-selling growing focused addition now our In cross-selling. accretive team we acquisitions, recent X

health telemedicine us advantage with industry, to us which offering, will that XXXX. care are IT Telemedicine round the We critical full believe a We developing of companies. our existing platform health provide for XX team customers, launch health over R&D of cost-efficient telemedicine many upcoming positioning reimbursement out addressable in insurance, emerging the experience also market. care mass late our telemedicine of experienced solutions, preparing and has existing a years while expertise competitive compete our leading significant pure-play in

IPO, During in XXXX XX% over the $XX our X year since XXXX. a million compound grown growth per million annual to we years from $XX have our in at rate of revenue

In growth, EBITDA addition adjusted year $X.X to double than XXXX, line before. we our during grew our top EBITDA to more adjusted million the

again addition XXXX. an XX% year than half our strong growth run and And adjusted EBITDA revenue revenue reaffirm In we guidance. at we're second EBITDA of expect operate pleased to the of more during to XXXX, during to adjusted rate once full

turn to President. our the over now floor I'll Hadi?

Hadi Chaudhry

call. efforts. our mile you, on our of for second Steve, have integration integrations journey Since the everyone, Etransmedia's we made call, on Thank and significant and thank for Orion's joining last quarter progress last us you, XXXX full the

the have improved during us example, At by positioned Etransmedia's as while have the we onshore approximately and our eliminating revenue facility also costs year vendors. our we quality we have last and XX% labor reduced guidance. offshore X steps the time, service For the reduced expenses, We adjusted months, achieve significantly same to compared believe to predecessor. EBITDA taken full have that costly

great full pleased We launch be our telemedicine the to making progress are towards of also platform.

founder testing We most we our launch XXXX, we one look heading the care fourth telemedicine refining the as successful since solution our are to draw early EHRs excited to telemedicine Bertman, of Dr. our more providers, for details health telemedicine to forward up solution the IT Pioneer We have and full care of and have quarter. nearing a team. during of Jonathan and now been providing primary

to turn now Officer, Chief Korn. floor will I the our Bill? Financial over Bill

Bill Korn

Thank you, Hadi.

XXXX. which million was $XX the As represents revenue to first our half in we an of mentioned, increase half XXXX of for million, first the of compared XX% $XX.X

of approximately XXXX loss first million GAAP vesting to used of half depreciation $X.X the increase Roughly pay in compared XXXX. GAAP And half part income in of of loss being our GAAP bonuses our net $XXX,XXX half was to nature that The towards is to first expense higher by than includes are throughout and $X.X expense in of XXXX, $XXX,XXX two weighted stock $X.X million, in result in July It as increase expenses, the includes For was and price. due of half compensation April share in approximately of primarily year amortization these noncash which $X year. acquisition the our Orion year-over-year. stock-based last net second in increased year which the is and noncash spread of for which the XXXX. of a this accounts of equally increased GAAP the other more by million. because income million, Etransmedia was of also the net difference net

costs included acquisition of XXXX of half of related first Etransmedia. the Our results approximately to transaction $XXX,XXX

of as incurred includes to Etransmedia no severance cost-effective future costs employees we the as achieve from facilities from efficiencies winding as the technology utilize redundant offshore. employees and Orion our also integration of $XXX,XXX and longer need, for exiting well subcontractors, We cost our down both acquisitions. This we

investments to of these the fourth as expect benefits reap and the outlook. We quarters, our adjusted by during indicated third year EBITDA full

change share amortization net positive half compensation, This The reflects per net loss shareholders. quarter the by million depreciation a account and on and to loss million in the expense of foreign million XXXX $XX,XXX first $X.X Adjusted compared was $XXX,XXX million by the GAAP difference $X.X based The to first exchange noncash declared XXXX. attributable increased expense, $X.X stock of $X.X GAAP for the the adjusted of integration of recent common net $X.XX half of interest provision EBITDA X% share to between and related and quarter. of of to $XX,XXX This acquisitions, per transaction of income gains ninth EBITDA. costs EBITDA $XXX,XXX million consideration. during for adjusted dividends loss in was $XX,XXX a into $X.X of and our the preferred takes as taxes, offset stock-based contingent consecutive

shares for the Non-GAAP was X% $X.XX share of $XXX,XXX million, first -- income and was Non-GAAP XXXX outstanding. net the net adjusted stock-based intangible income transaction per non-GAAP and XXXX. using excludes growth end-of-period $X.X noncash first assets, common Non-GAAP amortization income adjusted to the and purchased half or costs. integration compared calculated adjusted of half compensation is of of

generated measures of income profitability, operations, as part in cash approximate was because from income, adjusted of better first adjusted they cash operations. and XXXX, operating cash adjusted million EBITDA, the half seventh MTBC's $X.X the of with During positive net company's such operations. non-GAAP MTBC utilizes consecutive quarter impact which the from Management of

the of was million, quarter second of and income of quarter and amortization noncash expense $X.XX share second GAAP XXXX or of of of to $XXX,XXX. net QX of an stock-based $X.X compensation net integration $XX.X per net quarter loss $XXX,XXX for compared transaction XXXX. compared the $XXX,XXX, for the of to and of $XXX,XXX GAAP XXXX, includes depreciation costs $XXX,XXX in in increase loss GAAP was XX% XXXX. Revenue second million The

RCM Etransmedia, to In X comparable expense of did with their of the from Orion's months operating able the the total reduce acquisition. the what year able the since to we quarter before since which X the we XX% is quarter business during reduce were by months acquisition were Orion, expenses from expenses expenses total by the their the before their acquisition we acquisition, operating in first In the Orion. XX% to during the of

cost this material the impact significant a any reductions in future after year, that and of increase any Our approach to fourth excluding means during disciplined show quarters expect acquisitions to profitability third from we acquisitions.

revenue to net QX we've we per is second will Based million $X.X compared the QX continue the $X.XX already adjusted XXXX. revenue $X.X second level reductions we implemented, XXXX for Adjusted in guidance. that on during year income EBITDA believe Non-GAAP $XXX,XXX quarter cost for EBITDA as quarter and of share. XXXX million or was of adjusted achieve our the and this to

of have positive We quarters consecutive income. reported net adjusted X

the untapped During Bank. $X.X from Valley $XX.X and credit We billion million quarter in QX operations. from XXXX $XX ended cash in flow Silicon approximately cash MTBC an with million of XXXX, line generated of second

available finance the approval. potential Our line future acquisitions including to is credit bank's growth with of initiatives, help

approximately Our working assets was less on current XX. computed current liabilities, $XX.X as capital, million June

leases. categorized as all lease that accounting recorded leased "right-of-use on standard XXXX, X, be payments adopted to This future ASC assets" corresponding requires and the as included leases previously operating those liabilities. January for balance assets, including the XXX, to new On new as sheet the MTBC standard be were

our balance change includes such and assets new liabilities standard or operations obligations. the sheet MTBC's million sheet, and of actual not but these cash XXXX This not June or statements our on of materially standard. affects $X.X payments accounting flows amount same impact contractual XX, new under does leases this consolidated our does approximately any on of balance

to I'd like guidance. close our XXXX by reaffirming

For those presentation, our who've much picture slides, please earnings look I the those than at better downloaded at tell webcast can. the looking which the or

download download the listening Relations you I presentation. second are by our quarter the to site, presentation suggest phone our and Investor the earnings XXXX on you ir.mtbc.com, click If by earnings instead page. webinar, at Events of of top Go

second million will continue steadily our half, to quarter in customers We guidance for XXXX effect million million full are more before million revenues approximately to to $XX XXXX the XXXX, very year million, and $XX growth the $XX.X of revenue from of IPO, continue the we of excludes revenue. well anticipate which than revenue XX% includes $XX trend first to our our but million of from of $XX XX% that additional Revenue revenues Etransmedia's we This revenue With for believe represents $XX.X million the increasing achieve million the acquisitions. $XX to over any XXXX. material in to remainder of year during XXXX, positioned $XX guidance.

to EBITDA $XX full we was comparable XXX% adjusted EBITDA growth anticipate adjusted XXXX's for adjusted XX% as to business. last scale be of MTBC's will when to double with continue our over of million representing year EBITDA $X This adjusted continue million is year XXXX, EBITDA. XXXX We the to

and and to We efforts according integrating acquired of have proceeding of plenty experience plan. Etransmedia Orion are businesses the integration

work by opportunities excess dependence we XXXX. smaller, our This service, trim and efficiency. move on our then from business quality that to possible. acquired to since a third-party Orion effort and employees end is second cost implementation, always, while offshore underway improve leverage As therefore, redundancies, X, largely look quarter by whenever completed expensive which Etransmedia, variable and -- we Customers for on appreciate of work well for lower for eliminate that to the operational April benefit whose technology reducing subcontractors, faster better occurred start getting transaction year ago. was even cost and much operational costs We is the was though It X was costs.

Our end lower June of expense it at of beginning the the than run rate was April. at significantly was

for track we to With from XXXX. the the XXXX, actions EBITDA full during first will cost are savings achieve on adjusted expect half year we guidance our of the taken result of

over for now the concluding our Mahmud, comments. I'll to turn floor Chairman, his

Mahmud Haq

for be growth increased half We profitability. year of a very you, our support. record-breaking employees We promises investors, to first strong of another thank XXXX, which customers their had Thank Bill. and and

questions. now We Operator? will open the call to

Operator

[Operator Instructions].

The first question Investment Zacks Research. Brian from of is Marckx

Brian Marckx

the Congrats quarter. on

bit wanted guidance I that expenses talk you Just the and QX mentioned in release, repeat QX the In think none to terms -- to about the Etransmedia integration in that remarks expectation EBITDA QX. If don't start that that, in related expect a little you to will that QX? earnings were adjusted of in your the in prepared the think, we repeat or of that, on was, transaction I is can costs that $XXX,XXX, $XXX,XXX. with QX the or

Bill Korn

have like transaction things costs an and We'll the out job move often, and thanks incentive of third-party not the those to we a needed question, contract them for off only lease, only structure a getting severance a them no that an Brian. costs couple there do put of where want typically transition customer that out go cost nonrepeating things that have The payments, loss. to and subcontractors we for correct. we'll for of into of. an a smooth of are incentive who's with for good employee with That's months -- The things arrangement

expected transaction repeat. to are all not So expenses those

Brian Marckx

Okay.

relative come to of it If are repeat costs EBITDA that So per back look EBITDA in to I quarter integration XX%, won't close, where cut the you're a if additional additional is need do addition the to at I in -- and looks to in the transaction math at to guidance, look -- the an I revenue to XX% kind $X.X XX% like EBITDA the just envelope, of of? I adjusted in that costs going about million the guess, to relatively guidance going costs then that QX. adjusted out QX if integration X% of

Bill Korn

Yes.

So good question.

for costs quarter, recognized at are second there during looking you're took a actions the when So of lot the second we quarter.

there April person quarter, was on July longer For X, let there expense example, was quarter, employee but the X the second beginning that got the during who at is on of an quarter. we've no during go third

forward. that confident taken that the pretty we've of impact already feel the we So the earnings achieve us allow actions to we've guidance that put

Brian Marckx

Okay.

costs, in integration not guess, now, enough I integration, I'll come guess, are QX? the repeat, going though specifically, QX, going QX even those that fat, it, those aren't to there's from in or So to they're call and acquisition-related I QX --

Bill Korn

Right.

Stephen Snyder

laying the terms that about perspective, Brian, if to And we're for in think from first going post-closing on a we making pressure the team, the plans is work testing costs, working of had the one days other nature the on really focused timing appropriate sure typically, the acquisition assembling you are timing that thing XX of the into this the and over. foundation transitioning XX

handful you'll really in days acquisitions, and Etransmedia, beginning take XXX place charted of speaking XX day, And already generally spot really course really for XX acquisition post to of this also speaking, to those terms And actions -- majority see actual steps. relative have about Etransmedia, let's is other The those out. been wise the of those whether the actions overwhelming remaining those between it's timing XX, happen then really say, day occur. in out we've have that the generally it's action whether majority case, So majority of steps to of the taken. sweet steps

Operator

of next Dougherty Gene & Mannheimer question The from Company. is

Eugene Mannheimer

during which the to the Etransmedia With quarter, And to that the questions. quarter? this couple expect progress good acquisition, you a I X, the disclose you closed half? April want to respect contribution can deliver might back what ask in guys. on the Congrats of

Bill Korn

question, it's Gene. Yes, a good

team So transaction, We've we normally software part contributions platform. in the particular same don't because break out same we've a from the got work. got the providing

lot a combined. So costs those of are really

could to least you approximates could from the QX. contribution, QX near sort top And probably think in you growth that I that large of say measure the to at revenue the line. that, at look

Eugene Mannheimer

Okay. Bill. good sense, Makes

in little bit annualize guidance million I is QX midpoint. second -- to just at me revenue on half number, just guidance note, take if implied your a the about if get because we we $XX million, while $XX let So that ask your the the revenue

second implication that decline the the So sequential is in half. there's some

that -- Just attrition than Or us? is just being is conservative? your normal reconcile if running a pace? for higher Maybe at could that you

Bill Korn

Sure.

higher had terminate so we after is or the going revenue higher, the a are clients with indication of on period given we working a that month news the is revenue typically, signed get they for still and a couple reasons. for -- already good do X, of impact first to who X So through, were they've their just it's One that quarter previously is transaction, or somebody and is else. there but

a predecessor of couple spend things also lot We those first may have addressed. of time not months during addressing that

So we'll there claims up those. needed to to work that were have on, that and hard followed be outstanding might been address

good we So should from do somebody news a or is, quarter the get doing once. that else to done a bad you is, only work onetime news get that X before. have benefit The

The who've you is, The buy again, price. into a their some about months the we that a and news for options bad clients been before do news, we've put thinking got companies, low you when good too we had just of don't to as expect. together think want out we about also our knowing sort And I far Again, we a get our of that's ahead what really thought number have of season trouble. transactions degree that and too So is are there guidance, put aggressive. picture.

Eugene Mannheimer

Sure.

a year, that's later could to new to to that then debut this And me, telemedicine sounds very that that if going sounds little just bit prudent gears exciting. I Bill. switch Now platform

there obviously, choose commercialized you kind Now the those why telemedicine wondering could of of out and your distinction I'm And building own? there one us are, of many already. if platforms versus through walk not those there? just just

Stephen Snyder

addressable over Sure. of the of and care health. behavioral some mental primary telemedicine the the some is specialties care, especially about and we and But a minute estimates a market addressable market very analysts look we about XX% natural who -- can -- about between and numbers Thanks, you see very in by greater about, the to floor when billion primary think And behavioral encounter say, Gene. over that talk for time be telemedicine. more some a We we that. really of and estimates turn and we where psychiatric $XX think do XX% and to at health, where care think, think moment time back the about potentially care about through specialties, We'll over I'll it's Hadi than mental $XX-billion-plus primary or are fit, virtual think a be could for greater over handled potentially telemedicine. think step if talking happy platform. then our some key we if time health, XX% encounters can be the a handled industry And

private really your And this We are think potentially many makes have telemedicine putting together that situated uniquely as of competitive that a fact money it about raised point, products. to space. in equity pure-play the is think about what very be that MTBC amount we investors from significant believe there companies are that, we to

really the an base. into telemedicine? them So would few of say we they be, the would grow go what about they and challenges what believe finalizing of we I one some have different, product, don't product us things. the that makes a installed is, enhancing that if can have existing market, One terms think in us of makes

that that relationships can we care the our care, X,XXX beta the we we're product fact fact we that alpha leverage those to we as primary actually than market. leveraging more go that think who we about and solutions, when think both and have we So those of relationships, the as mental health, about have also in providers we in are and existing behavioral leveraging health one

it. So part that's of one

care developers in IT focus team R&D is nothing of members again, U.S. it platform, developing but have years, cost platform. of of enhancing IT our it's the XX for here we've the been And XXX-plus part own Second our at health on X/XX

and -- And is we of really what So excellent is thing Maybe this maybe big would about terms team done space, knowledge have third our an in seasoned of we one a extension a building out of platform. hurdles which job reimbursable. is be, that a natural very think in predictability that's the platform. one this the

if is So the telemedicine, while we've there's a care of the a practice, about -- well, that current one of obstacle primary or of one the think in is, natural great heard enthusiasm deal -- question one of concept terms to plays providers appropriate in it What payers, reimbursable? ensuring reimbursable, document at our That procedures insurer reimbursement. ensure reimbursement? health to what levels, competency we achieve which by core into which the of directly care you that order are do have

think in we be a of reasons, competitive for positioned we're really to So this well variety space.

and in in again, the unique some unique global talk develops footprint the think XXXX full with we both see we'll in some potentially some launch we opportunities really space potential As where focused. about insights, we developing a players product launch other we XXXX, of of course, growth. But for where we this our part world, have really think, are as more latter and opportunities don't -- domestic and

into will a an XXXX about is and would perspective talk beginning. move again, while impact that So think, proof to revenue as some year the really, some we really beginning I more we'll to XXXX exciting a as perspective we more launch get where progresses. from year concept, see from be And expect of

Operator

of is The Wainright. from Dede next question Kevin H.C.

Kevin Dede

actual actual you One, on points. base, customer see stated. your is -- as to guess, on please? client? across kind lost little clearly patients opportunity -- what's I market I'm telemedicine just can you on you a the set really just guess somehow, that a Dede. it physical the your to going little to, that rollout, you physical I implementation. operation. is curious actual specifically the just the the of are Can particular I Kevin through lost X you me I'm Steve, call client's a run bit, up physical Are -- physical -- existing the so

Stephen Snyder

Yes, jump our that. place to XXX% Hadi Thanks, existing let right, the Kevin. relationships. see And get and base. initially question. Good And in We existing already you're traction natural have certainly. address we I'll most the

So that absolutely to is begin solution. out the to place roll right the

medicine Of that, and an scheduling Kevin new the rollout, model patients this rollout broadens broadens interest who have that continues, to -- to of course, ultimately, we'd beyond of the the to and able likes in course, really had in to of But, customers, broadens like to of the address and who the like? patient have where, would as like pure wholesale pure all this marketing question can payers wholesale, Hadi, you maybe some done. that terms to ultimately, more purchase the to plays some other be the like, of companies go a

Hadi Chaudhry

and Kevin, Stephen, you, Thank for Sure. you, thank question. the

on currently different are So rollout. as we Steve so mentioned, working a

telemedicine of for from have same, integrated there the So the same we can with customers not -- any existing practice from patient schedule be the perform using the application connect procedures. patient workflow that. And will the use to integrated can who stand-alone EHR the and be management to desktop of of product, that MTBC's the from part app will they do for perspective, addition can scheduling practice continue doctors apps of And telemedicine MTBC's RCM and the to a stand-alone existing the platform for using the have and being that also a patients the and will into MTBC's and an option version client, platform. it PHR as -- available scheduling using the it or with the will the or the management or be this existing management. which can a EHR or module that a clients, in The for the of practices provided use can provider the the module, is available practice are be EHR those connect schedule can patient in

Kevin Dede

Great, Hadi.

this typical solutions which revenue on gentlemen, expect just from cycle MTBC you pricing to might where mentioned So, and you contribute schemes, whole a solutions compendium to revenue, management. that you've a departure reimbursement offered see of seems

I'm curious pricing options, across your especially thinking So how you're installed your about base?

Stephen Snyder

and discuss Great for as time, some effort by the question, working job really in care by being we'll primary headed this the is one Kevin. EHRs started way, up quarter of And on that's certainly call. Berman additional addition a his and just earnings our by the the did Bertman. and details earliest next quite progresses practices Dr. And the team developing been to some the EHR of for growing phenomenal EHR. Jon Dr. that overall

development time of perspective the be will that successful. user unique a a real brings with product with making a overall this, really who really this the of So to sure end to physician, together eye for because managing some this quite and part towards is another has been is key our team

and as offering regard more having our say, you our with correctly been to makes platform overall pricing, very broad a continues So it to has be because attractive. vision

additional solution is the percentage-based where whether or from to a solutions, or we're the frankly, historically, coding industry generating providers. it our request or we're charging But included the that to has revenue credentialing of fee of revenue be these of an other fee. our information it provider, but pharmaceutical the whether incremental been free majority of solution the we're the from in provider, And is GPO some solution free for requesters be where the information generating but it

fee that percentage-based paid is included a where -- together So charged and with fee, model incur both have is everything by into that third-party we our or our by additional paid clients. either are already as a built an services incremental

provide believe, EHR and it able when But able offering. So The be our that progresses. anticipate generated an reach, from us increasingly and from as also be also certainly we'd talk be we'll offering RCM comes telemedicine. we the of to the additional broaden actual to telemedicine revenue telemedicine revenue will the and year But generate incremental vision a having to our like, help about to the part. to includes our use platform pricing model comprehensive being would overall also

Kevin Dede

my pipeline? Final of favorite your as the one you that I you, was question on, about much for all as can backed offer M&A view

Stephen Snyder

we to the think guidance back believe our adjusted be We our think year, to growth year doubling, concept only the even with the growth. our about first half margins and second further, the that of the of to Certainly, think and the of -- as about almost second we achieve under of accomplish part additional from large history. expectations really compared been year we ability the organic second step to we EBITDA in about proof growth, what at a year when to a the kind least the terms EBITDA really not but being has perspective acquisitions the highest in able tripling in of

or right review So served have think we've the certainly with each great acquisition right to the approach better And us ability, company opportunities that's we've forward. continuing well valuation, disciplined We're X to which at over never we'll about we Once move the a our structure, we as positioned right the question. we the commit taken, believe that average of continuing least an X to week. has years. new really been

we've seen this pursued you'll haven't calls. in good valuation, and that's recall, optimal. fits, but We've structure and arrived And about the prior as at spoken some potential yet

growth, terms, than and fits the terms but companies more them structures yet aspects from commercial road. in the the dozen companies down in short for half walked purchased of the on the valuation very away picking. We years, them the we face further were the and the time, of of that on favorable purchased right Over a good sometimes period opportunities weren't for sometimes more then

served which has approach approach between. with structure take. Orion. right That's to certainly yet well, We'd that tuck-ins with continue been about quarters to the the quarters we and X X don't methodical we'll acquisition smaller do once to average but patient, large another right it one, we've even every valuation, love business to to larger us would really we'll until X So the it's on a more close frequently, that wait continue in approach. have. have we closed closed we since We and Historically, the like

we bigger continue these scooping we'll Etransmedia-type as to up look the along. smaller for So fish while move fish,

Operator

[Operator Riley The D'Silva next B. question Instructions]. Andrew of FBR. is from

Andrew D'Silva

answered you jumping between was this, if sorry, And calls. I

did, that know, platform, related read you cybersecurity, obviously, So But there's to transcript just an in if EHR lot of speaking, afterwards. just market billing, going you of opportunities that in creates have due I'll all management. if the the and right any it cybersecurity of bundled risks wondering issues generally -- in me in the let was right obviously, now, a market on practice some having some now? to are I package a

Stephen Snyder

platform. on -- you're and a right, And be having the the the about same thinking question. information of this and unified where charting insurance you're are occur great by one reimbursement revenue is overall whether enhancing in stored it details platform, and I whether the patient That's historical demographic think from perspective information claim the

perspective, practice perspective. secret hospitals of of a ensuring unified visibility and a revenues kind we're and actually key terms cycle that from practices reporting revenue this what's the sauces is to us of allowing also platform. clinical That adequate practice in and management that optimizing visibility from management into helps have we a at One happening have

as So a that to again, a safeguard this different to disparate we is platform the we enhances greatest extent And are platforms of group data. helpful opposed believe, possible the unified that ability used, agree, having there. unified platform

integrated that the using to team provide and been on a that's agree, reason that's like So HIPAA a a platform appropriate way to secure protocols vision ours. a whole reasons. security having that's one great it for have is really focused data experienced And we managed in unified our of -- been platform certainly, variety it's fully

Andrew D'Silva

but college. of to curious their don't the capital was to an debt, color. I there last been Orion as Great loan I focus many more And for practice to the hasn't necessarily acquisition, out know student of core to entrepreneurs, through question to increasing arm. have particularly if just then conventional management they're just when my be necessarily practice are was opportunity that, the but due means? is of going an be of amount them seems physicians establish the related own that coming

Stephen Snyder

reduce cycle reduce Where And the for one is on From the and value interesting those increasing of we objectives. lays moving that of our the the point. kind practice charting costs see if X perspective, components all structure are core agreement best objectives, have, managed to operating And come though, allow revenue have today, what's the you're a clinical towards overall the -- happened think physician proposition, is business I accomplishing with the empowering and that really, physician really providers with actually knowledge having with really platform of them that's groups a together foundation the in offices, we services is and while management, model traditional practice costs, as way the management employed the opportunities. technology, overall to to like Yes, we their of think their practice expertise about primarily empowering such accomplish a them right. really a the over hospital very while those revenue. management helping variety is own you're our of talking domain about. time, it opposed independent opportunity the that greater There the certainly,

Operator

of Dede question Mr. follow-up from a H.C. There's Wainwright. Kevin

Kevin Dede

the color September wondering on I I see Bill, hoping seasonality? that? offer on was be you was you your stronger if than might you you could Gene's December. to see? if to implications Orion's what I a remember might a quarter help understand take wondering I the to about you thought correctly, but seasonality might a that little moment Typically, you top line, response question me is Yes, half the Got second was

Bill Korn

business, as in amounts the Thanks, amount, our of to their which percentage is little you often to means collects, lots QX, go people aren't Kevin. deductibles Typically, you necessarily that doctor health doctor And have the mentioned. there we in paid. a what but designated of insurance insurance, a charging seasonality are when

from I a little So as vaccines a QX, fourth group that third small repay with getting are in signing that those say. is or they then bit revenue in the during would getting that the to are dollar check. to vaccines when tends organization, up happened vaccines others, Sanofi vaccines the them about age Merck, more we're -- vaccines. Flu through doctors QX, reach revenue then certain third And purchasing About Orion and we're and half that some quarter reduce receive are of as one things purchasing children and the using of people and throughout a is given happen vaccine, to who are year, of half physicians quarter. during the value typically, such those are But flu the traveling.

a bump gives bit that a it's of a a not to little It's typically, bump. a bump, So of major but bit QX. little

Kevin Dede

Right.

just one on Steve, question in Okay. general. environment the

you you to thin just mean from operator any political plucking that you seen a could I am environment, in would general, And practices to at -- be sophisticated I volatile as practices? mean related -- for they Given infer you have are, sort instability normal? would machinations you these I I that the guess, could perhaps than that? might for being I dynamics those opportune some of inherent more as air? it smaller characterize Or of mean help

Stephen Snyder

that reimbursement increasing and physician make a And aggregate, just employed practice to think the they're changes that make think need focused in MTBC continue are has easier positioned onto on really so in their experience independent order makers has wall to support especially we has, and even really over something, or office, compelling or you're that changes environment in heads are on is these -- increasing compelling, knowledge, to complex, No, for are and platform way physician like those hospital life more that XX/X the that to have company that argument by of the trend, increase the issues, -- so the who a much group domain Even been which someone decades a to I the I and that's is has to are the the Kevin. the in designed forth. reduce a they're the administrator, them. to really the expenses well-intended to such

a undoubtedly like terms uncertainty solution. there's in value added So making the and a all real the of our is thing case that's changes, helpful our these of by that

Operator

I apologize. conference But any like lack time, to would Patel remarks. back concludes I session. turn due to Shruti to this closing our for Ms. question-and-answer the over of

Shruti Patel

great call for you you. the speaking Thank We day. And conference joining look to thank you, today. everyone, a with Have forward soon.

Stephen Snyder

everyone. Thanks,

Hadi Chaudhry

you. Thank

Mahmud Haq

Thank you.

CareCloud (CCLD) 7 Aug 192019 Q2 Earnings call transcript