MTBC - Earnings call transcript Q3 2019

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Operator

Good day, and welcome to the MTBC Third Quarter 2019 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

Chief good and third and Mahmud Welcome the Officer. President Snyder, to our A. a Thank Chaudhry, Korn, Hadi conference morning, our call. XXXX our our Stephen Chairman; quarter and a are Officer On MTBC and Founder Director; Director; you and Executive everyone. Executive Bill today's Haq, Financial call Chief

the statements meaning like Section made I Exchange Section as we would to forward-looking amended. remind as statements that XXXX are begin, of Act the within this during XXE of certain of conference XXA Securities of Securities call Before you XXXX of Act the and amended

All and potential organic conference expectations growth, regarding statements made and our facts forward-looking operational business statements guidance outlook acquisitions. and limitation, during historical for future statements performance, call and other expected financial this statements, than of growth are including, without

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

are differ in statements which subject of and future risks of which or not those from results many guarantees statements. are of variety a actual to cause beyond uncertainties, our to could are these performance control, forward-looking materially contemplated and promises Forward-looking

materially new our press of forward-looking or our reflect find our obligation of cause opinions and filed could with from more statements future factors date statements our to no These reports and differ of Commission, statements. presentation, events. results refer you release Securities performance only to the these actual a and information Exchange we forward-looking this where comprehensive discussion light the will in that undertake as Please and of to these revise

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

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

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

Stephen Snyder

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

very are XXXX to strong first of another growth. of nine marked period months pleased report the We that

increased increased year-to-date year-to-date and offering revenues fact, revenues by $XX.X of fact integrated strategy. to XX%, unique In XX% validating in year-over-year our the we our we by million our growth strength

investor new not high following since a is an you're we public, growth us. rate who If went phenomenon has a been you know of for MTBC that

XXXX through We've XXXX In achieve been traditional fact, growth customers together this through from them XX%. growth, focuses strategy our to competitors. on of through our was period acquiring approximately CAGR organic able purchasing the growth for our with parallel that

at These years, lacked team revenue few them, companies companies, attractive experience times us their acquire distressed to average approximately an technology, the multiples played of very and important in half grow these before transactions acquisitions, we've helping meet role our needs. customers’ customers groups margins. like needed expand prior acquired of the last the one revenue. of from Over which were each three We and to able

Today, as to have we're buying position and right ever forward we than the move better opportunities. when

bankers now We’ve and opportunities broadened we're as provided who nearly week. our network XX, per transaction and average with have pace, that of this to opportunity at review year-to-date. new report an is During moving identified intermediaries one acquisition accelerated to year, inflow of we our pleased us of leads an

we disciplined heightened to patient and new to relationships. these structures, targets leads leads. our inbound customer approach quarters yet steadfastly likelihood at three and acquiring volume This of committed valuations the fact, our leads remain approximately of our now best In acquiring the as of increases represent very persistent optimal

optionality of opportunities, revenues below larger the new estimated them our beginning element as well, have our to targets to yield acquisition $XX While we on making of Approximately is focused XXXX fruit. remain have two-thirds strategy billion, we already which a sub-optimal added targets.

we been leverage and and traction. team smaller existing have partnerships to this support through with their begun them, the targets our strategy operations gaining technology However, opportunity to to offer has

Our strategy. active first of The company new with revenue regarding we company went of one represents revenue organic other cycle acquisition live aspect cycle last only and cycle customers similar month management management into partnerships. are companies customer MTBC’s targets in growth conversion discussions management revenue

rate steadily during the growth As of organic increasing been on beyond. industry initiatives growth margin leading fuel we've telemedicine, our launch our focus and of expansion XXXX will further scaled, we and and both revenue have which

referrals During team customer of base solutions the the leads. core also customer array focus. selling and our is focused to third and wide the primarily are selling generating cross and quarter, we role our success to existing business who We've a new revamped our generating of bonus cross added on our that members, reoriented marketing and such structure promoting managers team

to of our to things do co-sourcing to and year are to we solutions these beginning the All scope broadened offerings and traction, efforts so in the that we’ve believe Finally, beyond. continue include gain will groups. are other attractive that like ahead larger and they

line pleased very our strategy us to growth. has achieve growth We're such enabled top that strong

to have in actions our $X.X margins. EBITDA by also equally our increased to expanded However, XX% we're excited Year-to-date, we have million. see resulted that adjusted

fact, adjusted the the into months already our for EBITDA reported exceeds the amount of year year, In XXXX. nine full we

we full record of growth our adjusted the stopping billion $XX EBITDA adjusted billion, $X.X our our remain unpack further, you'll MTBC. another on margin to growing we high we're even which to notice of expect which new new EBITDA EBITDA was as year XX% for alone quarter is million, than range. story represents $X our the at to our track guidance for adjusted you QX third more a record in that not reflect midpoint for there, As But

With $XX performance, we're in nearly of with revenue, million. guidance to such positive to million untapped and capital virtually we debt $X million to working reaffirm Together credit. the year-to-date in ended pleased quarter XXXX year $XX remain an third Also, strong adjusted million $XX of very $XX our EBITDA. $XX million full line free and of with million

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

Hadi Chaudhry

Thank significant you, have third for we you Steve. on our our the integration in Since progress made joining us last our on of call, XXXX quarter everyone April. thank And Etransmedia call. of acquisition

goals. XX% ultimately reduced technology than client have overall We outperform are leveraging expenses our helping by XX% over and MTBC more Etransmedia of retention platform, clients us

believe We revenue and the taken our us positioned achieve have year have we EBITDA guidance. to steps that full adjusted

during new on that are pleased fourth We state track phase telemedicine the launch the quarter. to solution are we first to of also our

to providers. from providers interest client received existing to reached out a subset solutions from We XXX in base telehealth XXX of have interest have our and our their gauge

received existing our details the response from This announce the to industry. regarding client next have We and reassures from interest solution, we opted have as telemedicine version beta month. XX who look next base testers overwhelming be used our telemedicine providing the providers direction also the phases launch product. of of We the beta of more to forward full

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

Bill Korn

Hadi. you, Thank

Hadi give you great said As to quarter, details. I'm pleased Stephen some a we and had and

$XX.X compared year. of period XXXX Our or the first was -- million in XX% in the $XX $XX.X increase to last nine the months last revenue million, million, of an for same

in our year full months first the revenue XXXX nine million to almost were equal for XXXX. $XX.X of of Revenues

the a of grew rate outpaces XX% compounded our far revenues XXXX year-over-year is grow Our industry. that of growth XXXX. growth to rate that at rest continuing the And from annual a to XX% demonstrates our business at

declared account loss the Our the shareholders, integration expense net shares transaction the attributable GAAP net loss XXXX. of net months $X.X for $X.XX dividends nine $XXX,XXX using is costs average of XXXX and GAAP per takes calculated quarter nine from first by months of number million. of preferred compensation which depreciation the expense of stock million, $X.X includes net weighted million, common GAAP amortization loss $X.X loss to was of stock-based divided common of outstanding. and million, first non-cash share improvement during $X.X an the the into and

of first with Non-GAAP the income of the per was outstanding. common calculated end $X.XX non-GAAP compared period using period months of of nine $X.X net net XX%, $X.X same income XXXX or billion the year. Our shares million, income million, to share, $X.X adjusted increase an net adjusted adjusted of last for in

Adjusted revenue, Year-to-date, period EBITDA to $X.X year. million, of EBITDA XX% full in million and for to the compared XXXX the in XXXX or million. increased million last of first of adjusted corresponding EBITDA by XX% XXXX or nine was $X.X already adjusted compared $X.X same the period of year months adjusted exceeds the $X.X EBITDA

first nine cash in generated we the months million of from operations. XXXX, $X.X During

EBITDA, because from adjusted income consecutive approximate impact Third quarter part better quarter income the with of measures Management operations. our non-GAAP adjusted eight flow profitability, adjusted uses in and such operations. was of cash as MTBC’s positive net cash they operating

quarter complete $XX.X X% to was we Revenue million, decrease of X% increase purchased XXXX for third XXXX of third an quarter to distressed of was X, second XXXX when which an This expected, a a quarter would compared one-time This the compared normal and of decrease XXXX. of the target with of the of Orion revenue include we is acquisition on XXXX, quarter recurring. July that knowledge full company. some would third be not

time process residual with included of XXXX their quarter in the terminating who are at from acquisition. of clients certain relationships Third revenue Orion the

faster. reduction paid is of Processing our collect. claims at revenue, one-time XXXX from percentage the trends faster, a as are that previously. with that pace had than our and clients hospitals a quarter revenue are clients’ team means faster done completed our revenue fees acquisitions. third small other faster our Additionally, we from most clients’ our A claims some year-over-year Since processing included revenue and comes therefore of what consistent recognize practices Orion of

was Our for third compared operating quarter of GAAP quarter million third operating XXXX GAAP record to $X.X income loss $XXX,XXX, XXXX. a

in and XXXX, improvement of reduced resulted million direct to the quarter our a $X.X improvement to $X.X During compared a by million XXXX. compared administrative income, and $X.X general quarter, costs to compared third we the quarter expenses operating GAAP which in operating XXXX second third million by $XXX,XXX our quarter

of quarter last million, third XX% record or operating income quarter of is consecutive XXXX. $XXX,XXX year, adjusted adjusted third Non-GAAP income. positive quarter for a was growth represents XXth to for This $X.X XXX% in compared MTBC. over It revenue our operating was

net stock-based GAAP foreign $X.XX loss. net net the million improvement $XXX,XXX, well a in the as and costs loss GAAP of of $XXX,XXX $X.XX quarter third GAAP Our $X.X share loss represents and as transaction $X.X depreciation integration to or XXXX. quarter or expense amortization This compared with includes GAAP a XXXX of compensation for million per $XXX,XXX losses per for of third non-cash net $XXX,XXX of $XXX,XXX. share, was exchange loss

period same XXXX to an for the quarter of our net $X.XX to increase compared of income adjusted quarter last Non-GAAP share, million and share third $X.X was during income year, $X.XX income. $XXX,XXX consecutive per $X.X was of compared was per income $X.XX positive third Non-GAAP million, XXXX. adjusted eighth of increase net net quarter an in adjusted

Adjusted period in consecutive the itself of our EBITDA. $XXX,XXX was record quarter to was EBITDA adjusted for first XXXX positive enlarge almost as $X.X of XXXX XXth was EBITDA quarter a third the quarters year. by adjusted adjusted And EBITDA revenue, million, compared or adjusted put quarter of XX% two EBITDA total our of together. third for our of XXXX the same as last This

integrating investments This acceleration guidance for the on million of year million we the and achieve full made to are $X track $XX Driven EBITDA of our XXXX. adjusted while to Etransmedia by acquisitions. demonstrates that Orion we of

quarterly long-term adjusted in by GAAP difference expenses revenue of net and non-cash We of $XXX,XXX loss third our growth. $XXX,XXX amortization $X.X while reduced and on of and exchange depreciation of and transaction the maintaining focus and between The million, expense, costs to EBITDA quarter of acquisitions. stock-based of the reflect $X.X integration million losses costs related foreign XXXX $XXX,XXX $XXX,XXX compensation, operating

XXth, of positive approximately less liabilities As $XX of cash we assets million is and working had approximately in current which current million. capital, September $XX

an help for initiatives, acquisitions of with finance potential bank's Valley Bank untapped credit Silicon to growth $XX including have line billion the revolving We approval. future

Preferred A MTBCP, ticker, trades Series starting pays timing and of of NASDAQ share deem non-convertible Under any have the to which XX% can annum most We on per at be the can choose per is rate we perpetual, cash setting Global we Market. stock, beneficial. the shares, choosing whether November redeemed $XX quantity dividends Stock, common to addition monthly XXXX. and In at our option actions for shares at that redeem in the

to we retire have shares of stock. consider also and to acquisition capital attractive preferred the of the levels We can until preferred of our common a raise needed stock the if option an issuing opportunity reaches wait all for price more portion stock attractive or

accounting X, “right corresponding ASC Our on leases, liabilities. new assets, leased sheet the balance new leased and use as the sheet reflects on those previously including of requires that we were balance payments assets all recorded to included lease categorizes the that operating standard XXXX.This January discounted standards to future be adopted assets,” XXX, be as

Our standard. $X.X assets consolidated approximately sheets million includes balance accounting on of XX, liabilities million and is September XXXX new $X.X under this such such

affects standard does not contractual sheets, materially for and our change of New your or any these statement our impact actual payments on balance flows, but cash other leases does operations relationships. not

are achieve to $X This $XX will representing the growth first XXXX three our when XXXX We to be million growth to record XXXX, follows $XX.X revenue XXXX revenue in million, XXXX’s adjusted we which range for With guidance. a most was I'd very to EBITDA. over million our XX% $XX including XX% XXXX will anticipate like during to EBITDA. of represents revenue. adjusted the close $XX $XX.X million adjusted of XX% revenue EBITDA by positioned quarters, reaffirming double million EBITDA of XXXX guidance. to the quarter, recent adjusted of well over be guidance during XXX% million our

quarter $X.X six first achieved adjusted almost we $X.X was the of was EBITDA of XXXX. EBITDA the third adjusted to million, which Our equal during months million

adjusted Orion to will us The the our EBITDA and operational employees efforts and our we bearing achieve to are Our work fruit. guidance. leveraging third-party integrating gives subcontractors, efficiency our elimination that acquisitions our Etransmedia moving offshore confidence of improve technology

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

Mahmud Haq

year Thank our of and We another breaking you, be for XXXX thank record Bill. profitability. customers, their support. employees will growth investors,

We will now open the call to Operator? questions.

Operator

the Please [Operator from with begin of first ahead. question-and-answer question We Dougherty. The go comes session. line Eugene now Instructions] will the Mannheimer

Eugene Mannheimer

you great new or strategy -- on progress I gentlemen. ask to the I quarter. wanted partner to or customers. with your those question Steve Bill Thank like are Good Hadi, Maybe ask the can circumstances? you, wanted all the look economics morning. Congrats What to this -- this on under you how of of partner that And or paid market? pace that us Thank get of a strategy, is of you. with is to percent charges? line in the is percent deals share suggest the the there, you the a their perhaps collect slowing is pipeline

Stephen Snyder

and Eugene, for you questions. thank Absolutely. your Thank you,

the all from two-thirds prior of in roughly rationale we've there's opportunities significant those But of addressing market, strategy see seen the So in RCM overall terms companies we've in revenues periods. the what and a to not the below we candidly maybe pretty first million. XXXX, the market seen that the have relate it, the that from behind are perspective that of in percentage, of $XX companies -- which from opportunities of acquisition dissimilar

the regard like and companies, is able smaller that that shareholders everything From and acquiring but the rock be dynamics the valuation, we perspective that's believe to of Etransmedia, company, valuation is to really our partnerships. bottom absent through value way with a in MTBC scenario the to most to involved a beneficial add the unless

two These team either to have companies typically their things be will that offshore members technology team onshore assist leveraging or members. we leveraging

two So component. prongs seek model, and motivating like two labor factors there that billing be that are would to One companies these different really the MTBC. are a different drawing partner this

cost companies, billing month what we're of able with and perspective employees FTE time assist be from where offering and minimum per can to companies being XX So a full employees structure the leveraging. FTEs -- them is an of based billing providing

helping And as members we're then and their and acting of like team charge fee charging those monthly to follow individuals. one for things posting for each like. entry up experienced offshore operations, perform the and a who support payment Our are onshore

rationale second, of reason The a like would technology. MTBC is some again, or why partner companies seeking out these be a

billing then the for of perspective the of where right collections charging using pricing platform a of a a providing model from is labeled and percentage their that billing percentage that And our that's technology, particular collections private now, with we're company. company we're

follow-up the like. the may solution focused the is also relationship I billing those. The on frankly, providing claims billing facilitates personnel of the live support submission company some and of first for that and choose we're And services then that. or And of both that that only back companies clearinghouse on mentioned went the the end a aspect

primarily a model. the per the solution revolves around So billing other technology. our those active But also FTEs, FTE it's components. we're discussions in but with discussions the one of revolves to And as companies, one a technology label related around and private

So as really opportunities. adds. be growth a opposed margin passing it organic acquisition it to as really to these into we as of some way able -- us, We smaller by for attractive way to them to convert simply see a high see

Secondly, I candidly, we're us, the that deals working actually, for from this are our fact we've more of the radar we that onto today get also space perspective of really might the is the would network related a and way part in known industry were to that so come sure really with. what's few flow, deals. now coming deals to Part significantly broadened it if as bankers they relates of contrary we're we've quite seeing overall. screen deal than it. us think years of perhaps significantly that to more be not I'm to ago in more our and the historically. intermediaries didn't seen acquirer leading say And in happening a who

MTBC. to that and fits And be deal within appropriate we're it to our squarely regard want sure will model deals, discriminating is those an that size. accretive really very that very But also with to the make

Eugene Mannheimer

good Hey, Steve helpful. explanation. Very very Thank you.

Stephen Snyder

Thank you.

Operator

comes ahead. of question National go Galinko line Please the with Matthew The next from Securities.

Matthew Galinko

sort smaller of question. mechanism. with a taking qualified the you see of for that my follow labor, platform up -- or participants. either Do both I RCM strategy that you’re for new guess the guess competitors thanks you to bring your I Hey, sort technology

sort your see you P&L fast entirely? being sort of those entry forward of into -- if So them to cost of do lower of you a as sort years, couple of roll

Stephen Snyder

very definitely managing to we're it's We easier complete acquisition with a possibility a already see to much -- term. and an acquainted that and actively long already operations. go when ahead as their There's company absolutely well

least candidly, interest, that's sure two of three for that actually have scenario. of we're exactly the speaking option. an And at out companies So with that those in an

So that possibility a for long doubt, a without term. there's

give her as need we're to we his of really to this and that personnel them local sure in of professional company them the is companies candidly, they And or down so companies those be that And grow; referring able terms grow. the leveraging the space tools enables for technology, existing growth One relationships. colleague is billing this possibility. to in driven the road by heavily really to us really the a acquisitions assist equipping to

Matthew Galinko

network customers patterns whether up telemedicine return how finding initial Great respect of help and and you an I'm with with or sorts the that engaging from you're it's XXX selected curious any the platform, And With network that platform, telemedicine to network? group? with of follow interest beyond you're in your follow providers you me. for that up one with sort that if the targeting could that your in your

Hadi Chaudhry

Thank the you question. for

So we one it's X,XXX out that the have. providers the subset of

at MTBC's there. subset a level. were certain technology using percent a up picked we So certain They

workflow, adaptive was probability that perspective to that and start quickly there through to change telemedicine. from and a So going using the more their

terms psychiatry of the -- was focused of provider this have we subset that X,XXX So care XXX base more the primary in practices. and between a the provider over

product in when there interest beta launched. the products aptitude, full So, using phase be be the today the show will their the either will testing or in they

demonstrations, have already already the be So, XX have started the perspective. testing XX webinars in of getting providers plus the the -- have we process and will from conducting been conducted board we on beta who

be and beta testers. to started out who the XX there certain are So of providers they those already us test will in use beta out those helping

MTBC So, in some using today. these existing from product are the who RCM part perspective, our of network clients are

Matthew Galinko

thank you Great,

Operator

Dede with H.C. next from the go Please comes The of Wainwright. question line ahead. Kevin

Kevin Dede

Kevin guys. Dede. morning, Good

this you've you point. at through on at ultimately beta some some targeted could on telemedicine, XX Just rollout the you and level go expect got now XXX

was about a it month. mentioned could out You rolling in something little timeline. I you next bit drill hoping the on just

Hadi Chaudhry

you, and thank and for Absolutely question. Kevin, you thank your

will base. out one out we of entire, X,XXX launch it up to We existing can client the issues to base from help it perspectives; interest and the the beta to who understand product. overall us we the entire this and two so So, initial find right will was push the picked the MTBC how it to client to testers find fix will second and it purpose respond improve the the is

the full not be rest to here the will XXX things. telemedicine at first communicated working a are of we launch phase stopped the client base, with the both of by along year, out the the the to end will sending we products. -- for we do entire two providers, before expect the So launch same of of which we it of time it just those And of have this

And that the in scheduling the will this be and phase process the the model, is be based SaaS management existing the of of It part will part is the primarily product, the part into SaaS platform. which being practice based integrated first EHR. this

app. the EHR to the an app feature through one continue can or additional the and On side, EHR of portal the use existing the and they desktop version, the the it's patient current, existing into

developing the then are next Sri the And psychiatry it providers because situated the will with the in care even in and And first quarter in succeed solutions. X,XXX perspective beyond of next order to we countries. in the of year, launch have countries when are -- this believe end existing world, this the and comes So the to and phase, India the our we of using we like that uniquely details one very this these Lanka. primary at in planning we Pakistan, also, launch in which in year, we presence the in already the it toward to along even communicate U.S. launch the

level this So, this your I is a some questions. of very high hope answered timeline.

Kevin Dede

Okay.

[ph]. Just to my it summarize, through goal Hadi, make fixed sure I have

got XX end the expecting the now client running X,XXX XXX base you been have and that base at introduced out beta of way to of You've X,XXX to year, have it? the entire it have, is it then total to by that your to you're but look client the rolled

Hadi Chaudhry

Yes, the a it in may will as specialty shape X,XXX with due be form the communications of be some announcement nature say or of different X,XXX to the population or But when the to will hospital it. base. X,XXX I And a all communication right the not along the providers. the those settings to all use official providers, be some the provider it a subset of

Kevin Dede

good. Very

Okay. an it was full adjunct Am And I SaaS service just model, not either? quotient was that a understanding you saying based already about my offered. of that RCM you're correctly, thinking

Hadi Chaudhry

sorry, repeat please? I'm you can that, Kevin,

Kevin Dede

Hadi. Yes, sorry,

I Sorry, apologize.

this just my but clients fees thought had and course a am adjunct were I that correctly? wrong. My that was there service your full to was model, RCM and that probably I quotient not you looking involved, at that offering are it based mentioned an was thinking SaaS You an additional the

Hadi Chaudhry

based looking the part it is or correctly. model say Yes, the so of When the be for their paying certain contract Management in at becoming SaaS they let's existing very are so paying services. system, SaaS right. if a I System the will being workflow. EHR the same point, this based Kevin, in you're is Practice it's RCM yes, percent they added the say, And your current, it to existing

continue the they could additional be and credit So -- fees will and to the fees like. be sell some card pay there processing to will they for same us phase

Kevin Dede

one quick get of little assisting two Hadi. Number FTE on scenario, go basis, folks your an one things. where Thanks, I get Perfect. partnership one in before right. sort you're Steve, first that. I -- I the

on probably no pricing, from cut MTBC taking they're that. And cut along out from there's difference. easily tech prevent clients? second really you customers those happy The you a platform, into to your and sucked billing model middleman with I just mean tech can go they'd your once -- to be what's

Stephen Snyder

same human whether Kevin. on key and technology both platform. essential a work to really their engine our risk question, the a capital to we're part probably making in they're of that's day the revenue cycle providing function management simply enable Good in future exists And We're company that or whether scenarios certainly actually the where also the that day billing and will growth. position of are the we operations were really

say, we're not a way the we able ever those making step or transaction. do to a having to commitment to we're human as clients. the But there’d us with those could would contractual scenario, going sure regard where the a – accounts. from non-solicitation be that to companies to a ensure capital next the we're that handling be in technology that standard billing in position the context provisions a puts risk and natural have great we solicit a agreements we're this making be all we're to thing protect in perceived So of transition we're whether absent is that perspective take right not Needless that an in that in position terms acquisition we poaching that

Kevin Dede

last for, quick thing One Bill. right. All

hit So you're thinking Bill being on just your skies okay It need million at seems the your that. hit think I ultraconservative you're end to you you're the behind only guidance. hear $XX I this the top-line. think to high side. EBITDA I -- wanted to on right But just of quarter

Bill Korn

people like We be we're that that to are to we to ultra-conservative. confident going hit like totally We know our our numbers.

Kevin Dede

Yes, my point, well yes, -- that's think though. I

you're going you're going them, hit them. to to going not to beat You're

Bill Korn

Let's hope.

Kevin Dede

much very I it. you Thank guess perception, gentlemen. questions get my I Okay. it's all right? entertaining for all

Stephen Snyder

Thank you, Kevin.

Kevin Dede

Agreed. Agreed. Thank you.

Operator

comes of line question my go Riley. ahead. Please with next from Wiesenberger B. Marc The

Marc Wiesenberger

your Earlier billing in morning. Good of this space? if you you that's on on-boarding facility hospital us update about wondering, first in could to additional I'm the talked maybe and you. that opportunities the Thank hospital client. year, some leading you're if process potentially

Stephen Snyder

facility of part build the another for opportunities, some in a we kind -- the up We've we're terms practice not winding that Again, relationship to the of technology that going that regard perspective. relationship, with be And that their the the you're testing in terms referencing. But of to our from to overall we begun process strategy. billing about regard facility billing, of the long-term our With year relative any existing think it follow into to platform model actually actually out frankly, assistant we’re on that a didn't existing basis. beta of when really down. revenue into probably is with of

And we frankly, perspective, that is doesn't return other is have acquisition look favorable GPO other the that -- is telemedicine, opportunities as on our RCN, that the one opportunities a an at investment. belief all from the

Marc Wiesenberger

And or little seeing cross into you're a maybe results you of best from? enough. update fair more coming some Understood, selling where inside the could provide if

Stephen Snyder

we our that we frankly selling look in perspective, few just from of we the results. to cross But to And phenomenal seeing activity with out a GPO years getting perspective. the foundation the I from many the Certainly. a of really We're doing have when best ability follow, that we insight we're running. overall, say cross today I that everything coming results how board provide extend across results year-end of terms providing deal didn't job of selling just is solutions And great will up of would the selling additional ago. in making and cross our a have right team now for the forward terms which variety laying think

like been collateral, that things members doing all data what filtering is like doing has on and working on team and size really developing appropriate of the internal Things been really selling. facing team our our to and our That profiles. and solutions. create for But customers cross workflow the client specialty our They've like. in to collecting training order base enable turn team on existing target customer the within patterns in working

within clients proprietary things are like laid instance, the internal is in and EHR for So for our have by those places, messaging foundation regarding occurring. lines messaging There's the outbound GPO. our platform that's now along communications the leveraged, already instance, the being platform,

applications of that throughout day dynamic our and day of a its is clients finding to rippling And basis. our is the have ecosystem really with way that same into entire various we sort on communications

Marc Wiesenberger

That's very tell India, I'm telemedicine the One look that kind talked you’ve early Lankan could Pakistan, that with me, you're international regards to in now us next maybe helpful. like get and next final doing will what Thank wondering, of And year Sri opportunities for one for about those markets? you you. what international and to year. in ready launch

Hadi Chaudhry

because it's the And to we go sure. or the modifications technological a the question. that for will you, same be have some to technology lot Two thank things product with platform the going needed. Okay, changes, don't from Marc perspective, through of be

using that world So the ready, the and start U.S. in an first the these different in developing put India, start important in providers in us and part Sri get critical launch to was product it, Lanka. and then countries to to and and for like go most place it the order Pakistan, to

the as up model. of launch creating get considered as entity details a we this an could be the perspective, and We will it revenue to we VIE end the communicate may first bookkeeping or even from phase more

physician leverage can that the patient layer those providers those countries services. and get can U.S. X,XXX side, we on app to using all to U.S. So the connect in those the

because where other look expert of countries. a the the countries for thought are the the that's in those U.S. countries, So opinion an other providers kind patients the or process second initial from or many similar adopters the or idea opinion or there similar of instances

a we have the cultural presence we parts So since there, the already there. understand and believe moving already different we

in us put to that implementation. a very in will unique success this a have situation So

Marc Wiesenberger

Great, thank very you much.

Operator

Please question comes Zacks. line ahead. Marckx the go of with from Next Brian

Brian Marckx

was you quarter. guys tuck-in Etransmedia’s question on expecting, the were and QX? deals revenue, quarter. on And we One acquisitions $XXX,XXX us what the stronger than just about Bill, there revenue morning wondering give new in was was congrats contributed of or any that Good contribution in kind if can

Bill Korn

Well, thanks. Thanks, Brian.

acquisitions, new tuck-ins. no of the question, were new part in So answer first to the no there

is A revenue stronger management this a existing revenue of combination side. on So clients. practice bit the little additional from

just set grow new continues was as largest each client business to revenue our this records So usual, month. and for

will lot of we is lot we've the comes that a -- terms business really the anticipated. pleased Etransmedia, break some There we've we that not that information I'll try been than out XX-Q. had to actually out the in better be of retention the details. And, But what in of initially been say a that

far history couple we've I'd about their a clients them. kept thinking And understood were bought We say turned from than we who before originally we the canceling. business more of thought around we

actually that so shrinking be was So and happy to we're we really had it's much that. about to going of stabilized, sort going pretty that modeled

Brian Marckx

costs cover do One frame of can great and partnership a then of upfront an to to your relates question a point? wonder are kind might those And idea the to add then question costs? payback hear. expectations capacity the period if set kind have help second you offshore of whether what take That's strategy, new for on And us the upfront part capacity on I have of to partnership for Okay. -- we up kind client? to to of you

Stephen Snyder

Brian. Absolutely. Thanks question, for the

the of from capacity a assuming have we're model the we're member on we his a spending have process of pitching And go outreach now, to perspective, focused all the XX%, that opportunities, they that with XX% about, live mentioned. those capacity So today solely we I’ve handle companies roughly in right who's to together this billing talking possibility acquisitions. of team three time

X,XXX solution. prospects at of are X,XXX be out into plus X,XXX and and least fall companies, would would plus this that we this for category of So there estimate those billing sort would

perspective, not providing training but providing that FTEs, they're an the cost context in upfront the upfront the really, to leveraging simply From are individuals working leveraging platforms, covers companies. it XX costs in majority extent see who of scenarios de the to our other the We very overwhelming platform, are will on that other billing close the platform. unique of to have these which already with regard minimis

on already we who members, most the sorts can these team have deploy we of relationships. experienced of So

business are Again, the in it us with upfront our perspective. model, software negligible costs puts from a So a position. very unique

more IT look at of the little the de kind when a us, associated terms And XXX members itself labor in to XX scenario white offshore. of there's are team costs Pakistan than X and We the we minimis. versus with with a have software arbitrage very labeling, the that software for U.S. R&D cost involved

it. the too that be context costs, have be of, that acquisitions. there legal acquisition the a still costs. especially There there the company will as some There'll advantage to -- still even will So of of we're ours. go stress particular is sorts where And more due-diligence be one this be redundancy management smaller Unlike efforts in into accounting still will smaller into revenue with of don't terms cycle their costs go the that scenario. but rolling operations associated all on Those in because acquisitions, their size. things smaller any the acquisition, that those into in place exist relative some

Brian Marckx

these and of get and related look has it access that depth and risk, area to due-diligence get. One is work a with you much due-diligence at of you with that Okay. competitor more enough couldn't opportunities? you might one to of to potential a If to do the period going how as see you if

Stephen Snyder

with We material that really associated don't see any risk scenario.

partner going practices in their relationships that relatively feel make sure that ability into period we'll ability of going into business these ensure the upon And we're comfortable the has we the have a terminate short party with we course, that with any relationship of to notice. typically, relationship overall working We either relationship. and that

difficult terminate it's relationships. data. from their able relatively They'd a straightforward from new operations. they of able a It be bit end becomes a over because being can more to the group little difficult take can individuals from a our have or to the But migrate end, that have end. course, be to ours Of software of for who to customer those more find

payment we're to sure much we perspective. like like that we're from a our feel basis. partners go work forward. right the to is ethics in these comfortable as the going timely relationship. we invoice that scenarios. pay have of And into We're key that on we going a with automatic ensuring more So part who business a acquisition incorporating choosing as making Things partner relationships, a ACH

downside So there's of candidly limited very these terms in relationships.

Brian Marckx

great. it. Okay, a guys. Appreciate Thanks lot,

Stephen Snyder

you. Thank

Operator

I over to now will any conclude Shruti of time, we to Mr. like interest our session. would for question-and-answer the the now conference remarks. Patel In back closing turn

Thank you.

Shruti Patel

Thank thank your forward Thank We We’d again like near and support. today joining to in the continued look you. future. for to speaking everyone you.

Stephen Snyder

you, everyone. Thank

Bill Korn

Bye-bye.

Operator

presentation. The attending conference for has today's now you concluded. Thank

You may disconnect. now

CareCloud (CCLD) 6 Nov 192019 Q3 Earnings call transcript