MTBC - Earnings call transcript Q4 2019

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Operator

Good day, and welcome to the MTBC Fourth Quarter 2019 Earnings Conference Call and Webcast. All participants will be in a 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 Kim Grant, General Counsel. ahead. go Please

Kim Grant

Chief morning, and fourth Good Mahmud welcome the Officer. President Snyder, to our A. the Thank Chaudhry, Korn, Hadi conference everyone. our call. XXXX our our Stephen Chairman; quarter and the are Officer On MTBC and Founder Director; Director; you. and Executive And 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

our beliefs is based the is in which accuracy completeness. offerings way by but no or management currently and to we warranted of available management’s objective, as by assessment competitors an to believe reliable and on information be assumptions Any opinion our on us

obligation urge any before rely their investors assessment to and assessment research, it new We no unduly to otherwise. later to perform update decisions. to future on advisors duty as of result events not own revise and the out making consult event with in be or investment this their assume any such inaccurate a own and own information, investors caution assessment We their whether disclaim turns make or

by For anyone the Please earnings who presentation. presentation. quarter site may and to earnings the our Relations dialed events, fourth Investor into download you call our want telephone, Click visit on download ir.mtbc.com. XXXX

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

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

Stephen Snyder

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

Bill on joined Hadi Kim I'm mentioned, Chaudhry Mahmud by Kim As and Grant. Haq, Korn, call today's

I'm to Patel, President Juan including our members additional Senior of Vice our of and also pleased introduce CareCloud new of Shruti team Division. Molina, Division, new the you Nardi, Telehealth some Initiatives our the President Al Strategic to President

for the be the of our stars few many will Shruti, leadership a and Al rising team, questions of are half and available call. Juan in today's second during

EBITDA and X% full revenue to XX% $XX.X XX% of million. XXXX Together the record increases Today, of year-over-year year record with I'm represents report thrilled million. of This adjusted and for respectively. $X.X

record $X.X report growth of of for adjusted to revenue fourth pleased together million, EBITDA adjusted $XX.X we're quarter, fourth with the XX%. quarter represents EBITDA year-over-year which of million quarter the For

as our be record to another EBITDA revenue and year XXXX We we expect guidance. adjusted reaffirm

million. $XXX During XXXX, million to to XX% we to with XX% of expect by revenue grow $XXX our guidance

$XX EBITDA, XX% XX% to and will between growth to million which generate of $XX expect of adjusted We year-over-year. represent million

CareCloud recent This growth growth across partnerships by come acquisition, our growth and to new organic this vectors. line growth several business be scaled opportunities. expect newly We our will engine, driven

believe market, us of exceptional this one While diamonds combination growth in differentiator the of among that the strong growth, consistent size. makes of rate rough a in is revenue our of our the companies accelerating EBITDA with this and we adjusted coupled

our the available ambulatory We integrated most believe solution that end-to-end providers healthcare is today. U.S. comprehensive to offering

platform Our robust sizes, scalable, serve offerings a to specialties. SaaS of and allow service spectrum and practice us broad

a practicing doctor sub group, based the hospital XXX XXXX in our medical across sizes. independent From unique provider and give a advantage one unique specialties approach a clinician than XX practice solutions types wide across more Today, or and work specialties variety with practice, us an providers a strong group, competitive and of to we country.

small, on providers solutions based medium acquisition XX one intuitive, providers and of the offer CareCloud, to groups. or across easy-to-use of our cloud Small than country year. solution have supports of our care rely which embraced Likewise, large with million space, a patients to rated enable EHR. More than now delivery more practices the we more SaaS to our XX,XXX platforms independent our one of in top the the

and cycle In of addition to a management, integrated offer our clinical critical solutions, back range management, wide office practice we revenue services.

our Our consistent competitive growth. advantage has strong enabled

strategy three partnerships, prongs; main Our organic has and growth, growth acquisitions. XXXX

While enabled in we strong and investment as expansion, increase our margin business us growth. driven against the has organic model to continue which our cost to highest the means most execution velocity of has acquisitions view efficient unique growth,

of we fact, times sales ago. grown months marketing by five team than the size have to compared our In six and as more

SaaS fronts. example traction variety about, getting base. initiatives are expand a on cross-selling to excited wide the opportunity we're One the up-selling is of incredibly and our that We across CareCloud

will year key RCM Likewise, our a additional found MTBC reality growth be teams this new further and and us between related We synergies our help and expect growth. CareCloud during of beyond. driver services to up-sell accelerate to this

together EHR that be from additional growth in generating with We billing driven partnerships customers well, digital by referrals other expect our during programs. lead marketing as relationships and XXXX, include clients, to existing referral

the consolidation. our ripe we technology IPO, to that a for to healthcare the customers. we acquired businesses of be a dozen acquired believe have continue repeatable than we've integrating developed more IT believe what revenue customer and highly and are well-honed, we and As markets to model and Since acquisitive for portfolios competitors, cycle driven growth fragmented, opportunities,

year the quarters likely organic target $XXX While to an CareCloud be initiatives, expanding target so. like of devoted over additional in to close team, company next revenues as integrating will our would able we an identify executive next growth a million or the primarily and group and few companies, or representing be to

continue valuations achieve our time tell and at goal. disciplined able will ensure to patient we As right we employ are aspirational the to always, we will fits optimal only and to a strategic approach find if

acquisitive to off CareCloud start, great the mentioned, previously growth in I last with is XXXX As month. a of acquisition

the in XX Over invested the top ranked care cloud-based most $XXX investors years, ambulatory Valley, an and from they some respected million estimated the of for last of in one much platforms this capital the Silicon CareCloud in of raised developing U.S.

that we've including combined add companies other financial, and further more information the team, we value strengthening help disciplined compliance a with implementing As approach we platform on a around their we've believe as can acquired. success and and done build operational, structures technology

talented making CareCloud recurring strides great of customers integration. generating revenues, technology acquisition we the of highly team. date, our solutions, $XX annual with and broad represents acquisition and base a Through in largest approximately an million leading believe the incredible we're to brand a acquired CareCloud, we

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

Hadi Chaudhry

us for fourth And thank Thank everyone you, quarter Steve. our joining call. on XXXX

team Steve talented mentioned, repeatable integration. on at coupled integration are the and we capabilities, with CareCloud. been making facilitated The strides our are the this As great integration efforts in has track, by

costs We product shore have already of and seeing by parties, engineering offshore reliance include reducing of cycle third CareCloud's both near the and contractors. the current BPO, integration this other begun some and things, benefits offshore which and revenues on among

integration combined enhance to cycle development of teams us capabilities customers, accelerate the outcomes and our As progresses, management quality and the our enable revenue will timelines.

telehealth moments few a discuss take to initiative. new to like would our existing We

of the believe part you perfect be industry [ph] We is telehealth according is to know taking predicted the many expand statistics this market of XX analytics. to to our this movement. off addressable be portfolio time and and billion exciting of total the As

As Poppy product software our four patient virtual recall, anywhere. the XXXX, the integrated we This of EHR telehealth of patients from solution. of allowing may our conduct providers and you telehealth encounters announced solution their or own our integrating comfort on to in virtually to [ph] quarter release focused home

by our success we week, an we solely telehealth, focused of initial focused telehealth next the level. of pilot, on of division taking the this, led had accomplish team to growth. experienced Following a creation separate to announced on last To drive the

initiatives. and on We of a the Patel has are on more valuable have than dynamic our latest most of been strategic five team for MTBC for this to some leader, years, member a Shruti thrilled focused has worked us. opportunity

of recently partner General entity. In from and promoted to Division, virtual includes only She a to the telehealth a served division. one offering to offering, MTBC’s now telehealth intend the the physician ahead, as of agreement we owned to management services that quarters has business SaaS expand with Counsel care provision been our President

these than newest go-to-market other to software capabilities begin more opportunities on with work partners, our XX,XXX We are the our the that enable to and onboard. across plan bringing our about and we telehealth base within bullish phase in our providers exist offering, solution, as we especially

journey to We XX new the within forward look telehealth expect in offering XXXX. updates availability as next progress our this to of we We general days. providing continue

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

Bill Korn

Hadi. Thank you,

As Steven said, great year. a and Hadi XXXX was

million; a the $XX and $XX.X full million. of Our XX% year was range million for of $XX.X end $XX increase XXXX, to upper million of revenue was guidance an the in our in to compared

customers. XXXX organic from growth revenue ever was years a growth new customers one existing organic combination of with revenue from in our and sales, best X% for of

annual rate compound IPO a Our revenue July rate at revenue $XX in per grown XX% MTBC’s million at run has since of XXXX. a year

compared Our operating $XX,XXX, year MTBC is first since going million This GAAP reported GAAP to positive full of $X.X that operating XXXX. an income income public. was the improvement

was and income represents $X.X adjusted improvement of an a XXXX, XX% from million million $X.X operating record. Non-GAAP new revenue of or which

included full loss stock-based in and share, $X compensation $XXX,XXX GAAP million XXXX, our year expense, net million expense. For in depreciation, $X.XX was non-cash and per the to which amortization $X.X

or This share, net a improvement was $X.X of million of million to to and $X.X last adjusted compared reflects an record. improvement an $X.XX new XXXX. for income million per Non-GAAP compared year, $X.X XXXX

increased $XX XXXX compared as a the XX% million for $X.X EBITDA Adjusted of EBITDA $X year million record guidance full XXXX. within to our million $X.X million was to in range. Adjusted to

from MTBC record a cash in XXXX, $X.X generated During million operations.

we larger and and ever income, income we larger adjusted both larger strategic EBITDA, to base through revenue a acquisition, have As such net means to spread over our the CareCloud able expenses were operating generate our adjusted continue fixed we adjusted scale as business larger organic than before. and

tangible net intangible are significant the acquired that have each acquisition. Since assets, a of years of most companies we've large first price is few portion the purchase over to assets, attributed not do the after which amortized

income impact While GAAP financial this it and income, measures. flow, cash reduces non-GAAP our and from net does GAAP our not is operating excluded our

net quarters, as We few expect and loss for we to CareCloud. assets amortize report GAAP next from a loss a operating intangible the GAAP the

expenses, quarters. However, net profits as cash our GAAP reduced GAAP the will based profits to operating and few these over we turn next

quarter, quarter for $XX.X fourth our of XXXX the million. to Turning was fourth the revenue

for and fourth GAAP million costs. operating of $XXX,XXX, another record reflects Orion income integration reducing improvement quarter our MTBC. income successful systematically in Our operating was This XXXX $X.X operating Etransmedia, new

after CareCloud been stage after three After has first in the expenses operating MTBC our This during the operating improvement the quarters one three able XXXX, and second two reduce XX% and of XX% an after XXXX. explains quarters. last half dramatic our our of for by the of during sets of to income acquisitions, quarters XX% integration average quarter, three

for of adjusted Non-GAAP new record XXXX income for or was operating million fourth MTBC. was also $X.X revenue, which of quarter a XX%

another net MTBC. income yet new record for Our fourth XXXX GAAP quarter $XXX,XXX, was

quarter. XX% XXXX Non-GAAP fourth record income $X.X was fourth and more or $X.X of million quarter one quarter of per for adjusted and our records final of million the net was or for new of share, record revenue, adjusted $X.XX XXXX for EBITDA

of by operations million. fourth In flow provided XXXX, was cash quarter $X.X

company of As positive million had $XX.X $XX December of capital the and million. approximately working XXXX, approximately XX, of cash

option Trades of its During net XXX,XXX A offering. preferred is The A perpetual. company stock on at Global NASDAQ through XXXX, dividends XX% under redeemed stock cash the Series per annum the XXXX. share $X.X monthly be issuing the proceeds raised pays company's the per of Series could the of rate an non-convertible Market in November preferred and MTBCP $XX by million ticker at-the-market at at starting

our to I'd like XXXX by close guidance. elaborating on

growth represents in growth range we past. the of will anticipate that million XX% XXXX of revenue. additional $XXX in the increase sales to marketing stronger combination Our and $XXX and the be cross-selling opportunities XXXX million resources The to revenue which than in means over XX% of organic

new be company adjusted of During adjusted growth. of $XX the digit signed million for recurring CareCloud anticipate our XXXX, full our single XX% to as integrates we of than acquisition. will growth value contract trend of EBITDA the significantly We the EBITDA previous $XX organic higher over anticipate year to XX% XXXX XXXX, million

his exit We with position our contribute in our I'll plan CareCloud XXXX to comments. to and now over concluding chairman significantly turn years. profitability floor to future Mahmud for the growth to

Mahmud Haq

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

Operator? questions. will open call We the now to

Operator

Mannheimer session. & of begin We question-and-answer the first from go will ahead. [Operator today question The Gene Please Company. Dougherty Instructions] now comes

Gene Mannheimer

for to there's taking disruption the most your MTB of based from there? any has as retention often Guys, thanks customer year. there far their with so congrats and early as strong question with on on some read CareCloud post expectations you. the deal. a Thank family Is done, finish and Good acquisitions the morning, customers

Juan Molina

don't is This you you? Molina. for of President that of are CareCloud. And me, Juan know how Gene, Hey those

Gene, acquisition with associated question. the not We're whatsoever any turn recent that. great seeing see we're to impacts expecting not So from any and

base, quickly into the able to is those different, the them. excited because new that and fact, what customer offerings, been opportunities customer and do product see our is injecting that proposition, with able base we've we MTBC expanded actually been to lines have value to In available service very opportunities our including very to we’ve start of

Gene Mannheimer

and Thanks terrific. That's welcome Juan.

Juan Molina

Thanks.

Gene Mannheimer

And look EBITDA business could with band? can you XXXX in? the XXXX Thank upper for for the in about to Bill. what cadence What also you. you of if with for the primary that are led the your maybe range the of you, CareCloud one -- may just you share low factors hit how us And versus talk end expenses folded

Bill Korn

Sure. Thanks, Gene.

we on fourth screen. as the we CareCloud starting were radar So of quarter had XXXX, on the

we thought we the quickly. integrate so able do year CareCloud to to what And strong be really about end wanted to

resources once wanted up that our we the So we we, knowing team the started we up were ramping to on overseas the pick once closed ground that people ready in that acquisition work.

XXXX, bet to knowing And think somewhat So that it other a was did what is I with as we proactively think I this consistent make. good about you'll see acquisitions.

first past. of more which its quarter you've XXXX, CareCloud, I during spending was So think got a than lot revenue the in

little Even neutral that expenses, you'll on it being on drag bit that's a our into By reducing QX as be a QX, that our essentially expect We CareCloud plan. factored of our we're on we that okay. And see that EBITDA. EBITDA. will

technology many that CareClouds resources with down theirs where we able to for years. many know the we're our resources, So specific with tried brought with will do. expenses integrated with our of you have level is And the revenue, frankly something CareCloud to team, think which our they I compare

see and EBITDA. CareCloud overall QX, actually contributing to you'll In our QX

So to us cash think $XX EBITDA, And $XX the as again, a higher running by and the year run million end be you'll you of of of million back will end at that the about significantly flow. see annual rate EBITDA loaded.

Gene Mannheimer

Very Congrats helpful. again. you, Bill. Thank

Bill Korn

Thanks Gene.

Operator

FBR. from Marc question comes next of Riley go ahead. Please Wiesenberger B. The

Marc Wiesenberger

you deals, the if kind potentially of know you new timing I signing deal but up on Do CareCloud and you. does impact of anticipate, talked going deals? do And so, thank the individual magnitude anticipate overall sizes, deal? the of that you after these those new Yes, about like the specifically cadence

Stephen Snyder

great the Thanks question, Marc. a for That's question.

relative variety really the few over of clinical at today perspective a signings to would overall trend us move CareCloud. large of offering set solution work offering practices platform perspective, The a size last across groups the overall our the those the as particular. though envision consistently we strengthen sizes, to the continuing of helps trend the look and in terms clinical in size larger even we our practices of to the from has with needs many years, a really and extend practice from time, with overall of the allows overall same grown reach broader the we As we practice meet CareCloud CareCloud to over forward that

Marc Wiesenberger

you That's navigate great. between the the similar maybe can about of and and Thanks. and of of And point, legacy the and build kind platform, practice talk just will kind interoperability CareCloud experience, them? CBC how

Stephen Snyder

And perspective recently very I'd from the coding when applications focused full management, which able into the differentiators to do the comes overall and them integration respects just value the be our to say transaction the perspective other at one happy that. outset thing incorporate what closed, it of having solutions these the a things to with of we'd added deploy is, to like been credentialing, sure, the information working to CareCloud's base. it's the we those in and patient we'll services, at relative whole solutions, able roadmap broader we the to ecosystem finalizing least working main But think technology, the to applications about service same set. from of we at on overtime can similar being technology the relate CareCloud a solution our existing that. say sure that for as team is EHR, the be The like, and is still many cycle solutions and in being what to that of onset, variety the provide For terms PM, the revenue set,

X a will X smaller an in maintain Hadi and to from larger particular from equipped lighter that'll from the the groups, we MTBC initially time, the a things application meet being there at point and I to doctor two anything add? phenomenal or needs perspective, a key are a being clinical we application that solution that for this think The least is at practices, different particularly well to I applications. that the of interoperability think I those clinical groups. one And atleast do. perspective of continue Overtime, there's CareCloud medium So in believe like solution if Juan, you'd to perspective be

Juan Molina

question a this a it's point, Steve. and as And so that's Juan, great well. is Yes, great

begun. So already we've

products serve is the having As Steve Steve and right still strategy the specifically, on respective continuing what looking we're to two think is products. product at we're that with overall I separate mentioned, rationalizing and our customers these

how working. CareCloud across interoperability the good However, market, the has this to years open is of able of and developers country. API externalize to some been several services of our internal actually some the and up over broader sort of last example Web our

one to is plugging been open leverage we've very their infrastructure. them MTBC And API things that the to been and in we've appointment do And tools. allow automated of able with quickly our calling confirmation

working just of as that's example. one examples through these are rationalize we're So points. different that many we integration There all

also today, you've the existing, telemedicine You exciting know as heard there's some side. on some opportunities

So telemedicine as is synergy product that natural solution, our brief could a exist. we think about

a next the or integrations to excited to several into quarters new we're market. products see and what So into we come there's on new market this more lot hold launch the the as

Marc Wiesenberger

Thank very much. you Great.

Operator

Galinko go today Securities. The from ahead. National comes next question Please of Matthew

Matthew Galinko

guess right I tied in over think pipeline on heard or that it you Hey, what my get the briefly, I preferred just B A, Can two. in to this thanks for to the an later -- an optional funding to looks think question. Steve, revenue next year? to that's you you about with like additional how M&A growth respect touched And if drive Thanks. aspirational I Series million touch redemptions B, I goal XXX particularly think taking there. firstly the on year

Stephen Snyder

it. happy question. very be I'll to Sure. Great

aspects question do best So there two job our your to that are to address. will

that First acquire is, $XXX companies year in regard vision your company target that next the some are to roughly large -- overall one or so we our of a the aspiration or with point. we of terms range revenue over to in group either very large require of this target

-- he the there we funding would bridge that but I options -- The regard I we point And moving would continue gives cost can I category Is way would think based companies is most a can equity that also with to perspective, get upon ensure like. to of purchased time that second we but a capital. that. a a acquire a death just that think at at to cross that able need to operationally to attractive cost be else but work, to think little in Bill in valuations. the a We part of us upon I cost-efficient at We speak of put -- add. and a way for in forward that we the on overall we're the of flexibility in as based the perspective more capital if moment jump from the I'll that valuations, both that be so very bit anything in And reasonable funding. is can that

acquisitions I terms are these the there universe of rise number limited that companies alone think the relatively companies larger that companies. of RCM we of more small in the space, There's that strictly of -- speaking, a solely that aspiration those in terms focus RCM of are level. are have that overall in

that that acquisitions move And we our time be ready to of a call. by for the able RCM accomplish it would acquire. We new will in perspectives? RCM get of the we these do. to more companies But talk is during on to be likely So, the Do like only the target there'll pipeline or where three that two were point we last of companies from would a there. suspicion we extent together be those objective about that with this, this they some that companies candidly candidly companies not, combination crop to if the have we're

months an hard-pressed the comes when or will existing also be and today really Because it ramping So the continuing to focus focusing necessarily on those doing integrating really next six acquisitive come up up, ramp say CareCloud to our just growth. companies from excellent I'll to so be that and really really job pipeline. the for

become has other companies, So instance; in the are companies on helping our value-based increasingly on practice for they more focused that valuations when the of addition more management, telehealth HER, whole time the companies with at that variety attractive, some IT companies, distressed market. a of perhaps are segment focus in more of to overall IT perhaps fall players, RCM smaller companies, within care been analytics, telehealth point to healthcare and healthcare the

aspiration. the we that's think on back these over the one think I calls. of if five terms So last overall expressed of And or that six we've in years aspirations the

I to acquisitive we -- perspective. also growth was work. of little we same things And add the terms we can think growth. initial often of folks really terms I will been thing. be there's put kind is I Bill, six think to five organic over like our a accomplish. financial bit times to if most really We've that candidly something that the some don't, team we're really of reception or significant to time from able last anything But a skepticism if that this else and the in over you'd hopeful say years, able a pretty to look we've accomplish of do able been think I we'll in And

Bill Korn

Sure.

till want and to right where starting the have have redeem again, the from definitely, if we if make our Series A preferred we From we so is wait time the do perspective, priorities. other monthly you operations a to decision. in than one typically greater it's You cash we'll to without dividend. November to stock mentioned shares. only wanted to cash that the impacting But flow our And

cash year X.XX last example, dividend. times our the was For flow

we've penalties, no raise covenants, ability to with no found lot it And be that similar We this easily. the what expect a to year. flexibility, of is money

great dilute us us has way in stock a for doesn't shareholders. our For instrument that financing been a

And for of acquisitions, we could example, generate as the in are as feel we dividend excess accretive for wisely proceeds far incremental that returns use as like confident like we CareCloud, We could long rate. Orion. have

So options to the It's we on we'll be million raise down whichever it. good flexibility many to the opportunities. a capital we see way and what's so that do the right the different know see the we road way terms. the What's with $XXX next as finance can company great markets go and

Matthew Galinko

Thanks. I'll in Great. jump back queue. the

Operator

question comes Kevin from of ahead. today H.C. go Dede next Please The Wainwright.

Kevin Dede

Good on on you in this you the that my morning, Thanks questions. mentioned for $XXX a touched bit regard for dive pipeline with already to little bit. address. like my head you'd gentlemen. you if trigger I valuations that CareCloud. wondering regard should that And And to paid in going taking a could million Historically look sales. as scratch the fraction a Steve, you've of I'm per just that little with going you a say. to pull we change forward? how on I'm other at wondering expect you're going deals what forward? to

Stephen Snyder

Great question. Kevin. Thanks

X.X been historically distressed we're companies buying when we of the somewhere of X.X in struggling X.X or at at or RCM times them RCM able the revenues. those range historical companies high we Kevin, and annualized where relationships there's where opportunistically look customer rate So, your companies only buy point, look oftentimes to churn. When to a we've

oftentimes $XX they're transactions a experience we our revenues. look companies -- one RCM retention, of trading or in I at plus nevertheless at think are for when other balance the healthier they're times selling those that and companies million when in at are that in when occur from in so or sheet revenue space oftentimes perspective terms

from a able to that to at for are companies, distressed and is CareCloud, exciting very CareCloud a fortunate we've companies at But in standing alone purchased opportunity to really we've name phenomenal in to scripts other grow CareCloud leading in of around many couple able Athenahealth brand equity also the the annualized the from been a build, us for space in that elements company additional look have agreed, revenues. we have When leaders addition and identify they've But mall acquire some valuations. that million really been there and our $XX plus creative of CareCloud base companies significant has team attractive CareCloud I the customer be that's and unlike made very drawn been and helped to space. that the companies and our other from a us generating us. have the has from

They've generation onboard, new an up into pick an And be also opportunity to pick excellent up that we when the who million and us in to We technology a significant client against plus building significant critical we a and job in able amount a be really add that raised believe mix. looked a their perspective, that, to at overall element the as -- another that's invested thought addition important really terms building decade. utilized step domain they've research individuals then growth. class knowledge to pick progress only be and They've exceptional an with leveraged focus of lot up to able another that from execute we have the and brand, that's CareCloud to to bring $XXX the see existing business yet plan together platform have we clients not technology development, And we first platform really the next product. our information but they've done on to towards able continue phenomenal a to of platform a industry to who and by valuation in a making level. and and be was used help, base SaaS of to last the in they've team, over will to

it's would the the assets than a fall valuation to would technology -- customer that We'll separately to moment companies base to extent equity that that the likely extent that all for acquisition that able acquire equity, continue will the being the that based that technology, we we view So company the are there's believe that platform. the things leading to brand of that platform as now brand that to be To transitioning other There other equal more course without technology the at. look the there category. alone upon a without assets extent and through each valuations. to are non-cash into a not there's closer cloud historical are

the a closer and the valuations tend approach, continue disciplined would of the when be in to overall be done a valuation. making focused to to solid for very same with we from the at we're valuation sure and employ is highly think comfortable to perspective said we'll that transaction. is we this think feel a approach. I all But valuation continue terms that on probably CareCloud valuation very We'll

of And the terms back and overall in much of CareCloud. without into getting too forth

valuation And from the good we for We've more I this of the thought of only that from felt structure the consistent time structure valuation think of I valuation example. and away didn't a the in comfortable we discussions, to in that that overall gap for be that can what or was acquire table the in CareCloud because when company about only the of we've that was and all to with road a the valuation we in exact while valuation. estimation reasonable and companies not lower our valuation when CareCloud. is back of said we acquire time talked can to much many the tell future with. the from or here final negotiating arrived down multiple that, same more at, we that overall stepped the thing years that right pleased with the we same the believed in valuation come points done away two is couldn't past a company. terms CareCloud one and And at be you the four that we in stepped negotiation that With is happen

Kevin Dede

Okay. dive, it. appreciate the Thanks I Steve. for really deep

is a end sales and for you that's elements and and touched a grow high force a And are both I'm and that a us clearly on I to rationalize little you larger this bit. looming wondering or build of know help right? for you think there And the brand can smaller. somehow desire Juan question I intend of two two market, organic manage a that the to one -- your now least how marketing sort sales, platforms. One at MTBC Another sort practice Prime strategy. of that rationalize

really If think brand I it you a be forward, equity on you'd of would think and us little charter bit helpful? could just about to like going sort in dive your how

Stephen Snyder

Al to of key the Senior Be is Absolutely. being And what the so in a perspective. happy sales number and played Vice over very we have Al President Strategic provide we'll best our able I terms Nardi, of Initiatives to. last think answer of a is, has do role business from years overall development

first that combined IT you if then the and from terms the part overall platform. other the opportunities all right kind maybe can of sales regard So a that you Al, address question to that the that the with marketing in question after Kevin, see you we'll us had company perspective. that And then some of have of of help you about talk

Al Nardi

Yes. you Steve. Thank

now. outline of an you strategy upselling we're and base far last larger to we what organic The bit the to addition see over grown can to cross-sell doing in into a the as That's opportunity As XX% the much I days a GPO. the see months. expanding and the opportunity what XX combined GPO client We and little in XX% XX approximately growth has last for to be.

We of a to a for of organic more team campaigns -- multiple are There's pipeline. this lost combined expanded larger opportunity also on large growth. marketing team and coordinating from services opportunities also combined a through with re-engage with sales XX

respond market in had is you provide may ability So operate. can't services. in how the Whereas on XX build something our their software four on services. platform, MTBC opportunity and we've that's Though most who to great. that to and helps addition reached the in services. I lost competitors for that And closed have on for cycle What found revenue order clients I looking on already of the opportunities so to does to with were own. CareCloud are the them also us has all require for is example, us be platforms quantify multiple not define discussion We've think why in but that out

base opportunities So new lost platform. were opportunities from seize the and that able been specific CareCloud that we've to because choosing they weren't

model. We other FTE companies also led helps these of EHRs being is Partnerships costs. support with avenue software we're our and an expand that by an and currently for SVP while This back reducing for additional partners working to and billing effort have other on office sales partnerships

contract We of another and have a two of are that negotiations partners. of these two large already out in pipeline potential in partnerships

Stephen Snyder

Perfect. in help Thanks maybe And just Hadi, kind talk you two little us Al. a can and the through jump about in platforms. of and

Hadi Chaudhry

Thank Steve. thanks the question. Right. Kevin for you, And

also and has Juan mentioned Steve as So mentioned. as

independent So platforms. key separate there are two

to available as lot focus larger in of And we started continues will to we addition APIs much still groups previously. use of mentioned try platform. that to that There work to Juan one five to to when are it provided have comes a to are on. the primarily We practices. base is already on client them different continue But and CareCloud

identifying there's the two First the an on. to right There's we where for integration from as the of mix have such integrations Greece can all call perspective service looking happen, example. started

are have scrubbing let's in working the that cloud we And based system our say rule on, rule into the we same proprietary say, the platform. -- that a way, integrating system, and based our

the in will different focusing reach of integration, operating will continue I the to MTBC perspective the and two will the for to on to to base sell So work as CareCloud client roadmap. together, systems how we think the and/or sites continue But addition be we the out from platform.

Stephen Snyder

XXX% the XXXX is the to management. We number think smallest roughly A practice are EHR. is leveraging then base is leveraging revenue leveraging base client of represents which leveraging the revenue And smaller CareCloud use example. subset And the Kevin, XX% one providers virtually of CareCloud of cycle about base just their cycle management. that providers subset their as just roughly a in terms of management, base of

up-sell a opportunity can we we to that So that we have leverage base. remainder of the think significant

the The about they're the other And salesman's some possibility in cycle management. revenue a of platform. of salesperson because this marketer's of terms -- it's respects, if think in kind XX% a the on leveraging or you leveraging dream dream

not of add from existing complete have working We performance indicators the working Where key What's value. What's well. a cycle regarding manager revenue we perspective. visibility well. can operations terms in their

provide to KPI. way have really with informed regard the able we workflows to be So, in visibility their existing a additional ability their and existing to very

can add their that addresses they have we we client a can practices. in RCM the needs in also to tailor don't day that way if value So on context even day offering in RCM. level leverage specifically our specifically a that they But

to be those to customers. the compelling to in offering that most sure and So that data we're able allows us make a targeted very way providing best CareCloud

Kevin Dede

Okay.

Just a follow up.

two? head, that market made Steve. you've have or two or I perhaps to under on of continue I that of decided it my in out wondering brand guess one I little mean continue So sort sorted at consolidate marketing entire all if the brands? kind to you'll Does to effort was push progress

Stephen Snyder

Absolutely. Good question.

office and For We'll the continue overall offering two technology being our continue back brands. the time integrating to like. the by with strengthen our promote we'll solutions and to really CareCloud

discussion to integration regard manage -- the of items one and we're So roadmap. with that's analyzing But that's to do two for overall we'll under the one being. the continue discussion time that's branch of the

to analyzing. what able idea possibilities being on idea that's in leverage terms is good for of the sure across more brand But our equity a your that. the of still certainly in perhaps whole that we're come could organization. So be And broadly terms something more internally to

Kevin Dede

so me, Very Thank you back hop much indulging for Steve. I the queue. good. in

Stephen Snyder

Thank you, Kevin.

Operator

Galantino today question go Please next from of The comes Davis. Michael Chapin ahead.

Michael Galantino

Great guys. Congratulations you. Thank quarter.

it You guys usual. delivered over under have as promised

of So question have terrific acquisition I two-part if CareCloud. may. a I

of plan world? telehealth How the telemedicine service have Telehealth since acquisition of of out differentiating the for on for the a terms little about MTBC quick the -- savings in in question talk have Could of First you you months also few implemented service the Hadi. Shruti the of Teledocs likes and your the bit service do you division. from the CareCloud. And -- expense a I synergies

Hadi Chaudhry

Thank you, Michael and thanks for the question.

how terms that those to is much and happening way think the from transition the are vendors reduction to quarter we as second way of to transition initial mid I reduce EBITDA expect contractors is through to terms understand whole MTBC's of about the for the XX% numbers, in we're far? contractors the -- quarter. probably when the onshore track as third-party from of integration around be half terms in the mentioned that Bill expenses expenses. And comes has development it now, the we to XX% you that's by the employees. the neutral CareCloud. second have in in of right this There accomplished sometime roughly at the the the already and in perspective so BPO we that's -- on And what own So

So that process is taking place.

Michael Galantino

Thank you.

Shruti Patel

Perfect. the And thanks question. for so here. I'm

Michael Galantino

ahead. Go Okay.

Shruti Patel

your address to question. So

So we different competitors. ourselves how see from do

major of the in So we competitors categories of competitors market. see two terms of

see a we just of MDLive then of we software is Demand, as application on Doctors only telehealth few. category full of more and also Teledoc, a and to standalone not name a such But services. that a that first companies standalone telehealth The are offering offer suite competitors see

So example a for like Kyron.

market So focusing approach combining what on by now are to we're trying to is we do to efforts go our both.

vast business group that our we existing a but over of members is of and not -- standalone also XX,XXX as differentiation at software go-to-market a we the services looking are leverage another We approach. will do from we have And providers to that have could even GPO will providers provide competitors and only that unit advantage as well. use provide a our

Michael Galantino

story the you. now. of part [Indiscernible] the is story. It Great Okay. Thank

Shruti Patel

Mike. Thanks,

Operator

turn That question for closing to session. the conference remarks. any and back I our Grant would to Kim over like answer concludes

Kim Grant

for And we near great future. We you to support. the a like and your everyone of joining speaking again forward Thank all to today would to have thank you. look Thank in day. and all you for continued

Operator

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

disconnect. now may You

CareCloud (CCLD) 28 Feb 202019 Q4 Earnings call transcript