MTBC - Earnings call transcript Q1 2020

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Operator

Good morning. Welcome to MTBC First Quarter 2020 Conference Call -- Earnings Conference Call. 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]

is event this note, being recorded. Please now Kim Grant, would like to to over conference the General turn I Counsel. Please go ahead.

Kim Grant

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

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

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

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

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

or undertake information reflect our new to obligation no revise we events. of date light these and of statements These statements presentation opinions only the as this forward-looking in of future

cause differ these performance and Commission, reports discussion our more you that a with statements. Please could will comprehensive our refer the Securities and to where forward-looking actual and materially Exchange release filed press to our of from results factors find

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

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

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

Stephen Snyder

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

the of Molina, to Division; Johnson, promoted am CareCloud be I and panel, Juan President Force who of the joined MTBC to addition to regular of by our was President pleased Karl In role members Division. the of our our recently today

strong part Today our a large start a was acquisition CareCloud. to which first of including in year-over-year revenue we increase XX% are to to by $XX.X earlier year pleased XXXX, quarter in million, report driven this

and the offering since acquisition our serving have was back distress acquisitions company critical throughout nevertheless public that closed country. in the XXth other providers CareCloud represented initial needs technology good, of the healthcare and we XXXX, like a office our but

of the quarter XXXX during of very EBITDA that $XXX,XXX, pleased decline, planned adjusted our reflected this our report for nevertheless, first a but We're was our of internal year-over-year CareCloud January outperform model. year, by this driven to acquisition

acquired expenses quarter. CareCloud more beginning regular acquisition the now million of we net expense than have playbook, substantially annualized $XX Consistent at having operating first with CareCloud rationalized our reduced since already we the of

that It our challenge country goes the world saying COVID-XX. in without face an extraordinary and

support better been we operational, and from and or never As our positioned perspective financial a customers. have company, technological an existing to stronger new

work on healthcare a front-lines the were time support to as providers privilege we never again purpose serving as and profound been a sense felt such women and the And team, time this we a important the battle. our as of reminded of men we've have heroic in who have

and ways their charting it our care providing tools, top seem us enabling of the to it cloud-based may scheduling access patients who are or focus appropriate ranked medical is as our advances entirety check-in, care We Telehealth, the our cash our that any deeds delivering countless while them truly reimbursement, other on focus the patient CMS, facilitating whether their one support need ensuring COVID reality support to enabling to delivery, to humbled those clinical as to by care, to of customers, online enabling support enables touchless their to mission the we're trusting devote practices. of we day records physicians of from energized by small day

turning have tracking been are critical companies that that have our the identifying, and we who acquiring Those to over approach technology healthcare honed support know providing growth back-office and years around to turnkey solutions physicians. our distressed

segment the our of we’ve companies acquirer the leading become of so, As we market. in done have

enabled XX% velocity of conditions further to compound This strategy growth a us has growth quarters acquisitive achieve six-year and that we the believe will add the our rate to vector economic in annual ahead. growth current

customers MTBC enables us our service for our to has another force in in Likewise, way that us with partnering and offering growth. our their a accelerating their vendors avenue given space objectives, all great other to providing support

getting have our alone, XX three with leaders, go-to-market an reseller During value-added Force Company, and company, the we are selected days MTBC we been last only started RCM EHR by EHR a industry and strategy.

recent the for recent most Orthopedic highly developing practice to announce customized be which management and Exscribe I'm space. proud we which signing Solutions, Exscribe today, with of demonstrates their system our will scope In orthopedic the happens in modules be with reporting this and EHR, to conjunction for Our Healthcare offering. relationship, ranked EHRs one of a quality most power most the

in additional will work Exscribe’s cycle their integrated increasing revenue market likewise. while us to position enable We to will base. also provider our will we'll management do sell share and to This relationship to solutions it and orthopedics partner be revenues Exscribe gain

and pressure recurring growth across to the and these that COVID of hopeful organic physician acquisitions Board encounters reduced increased driven across revenue to from country. We're Force MTBC a temporary the on add related offset revenue will the opportunities our patient, number downward

than members a year time Additionally, only more we have sales a increased and today. last in couple substantially this our to from team members team investment growing of marketing, XX

all year-to-date XXXX business one in more organic our and was and growth closed of years history. already XXXX strongest in of XXXX for in have We

half even fruit million we recurring during annual in efforts $X more the expect per of third We year, to million $X to bookings our begin quarter see second of target revenues to the starting quarter. organic the yield as in growth

growth than acquisition in when had costs. at an up are cost no than more to targeting set we average prevailing to acquisitions we growth our annual anticipated initiatives believe MTBC would exit Further, and favorably customer this of compare acquisition we that us run rate XXXX. a which XX% revenues, industry of customer higher Force, year organic will returning We started

Hadi? over floor Hadi. the turn now will I to

A. Hadi Chaudhry

you us first on calls. XXXX joining Steve. And thank everyone quarter you, for Thank

Steve end trending then stabilize our like appointment half did seen volumes. beginning customers As began More a This patient visits others, mentioned March. have of earlier, decrease we the XX% first appointment in to see downward we in and by of volume decrease roughly specifically, in March. was overall

we to Based data take reviewing, on that place. the believe we has that already are started the rebound

our that already volumes made overall close of fact, show since then. have the half up to declines In we numbers in appointment

virtual customers increase happening, immediate our While and these substantial in were we saw an appointment. toward also move almost declines

out We consults In visit X% of March then level all to less all being represents tremendously approximately Telehealth fact, and consults. X, than saw XX% visits types. Telehealth on this spike XXXX, of

Telehealth seen income metrics We consults. a stream nice from have our have customers been following these for reimbursement and

Specifically, by CARES Coronavirus Economic Security Relief as Act. provided reimbursement Medicaid the created Telehealth Aid, in and flexibilities the

announcements we As how would could and guidance a or them navigate as and medical webinars customer’s assistance allow federal that weekly to for biweekly to different them our programs -- request federal via the payroll on request available medical topics. or Medicare on begin for result, payments, programs provided specific immediately advanced [ph] in-app basis to base example. to a an apply outreach on practices sometimes We

questionnaires. begin your systems, new services. how effectively COVID also with and and our related intake Solutions practice our best We reacted We our released rule-based technology, contactless codes clinical pivoted added consultations and deployed Telehealth providers roadmap training and own likable practice and quickly financial our up to immediate to COVID set enhanced to engines, Telehealth on provide

efforts leveraging those and paid the our coding our of expertise effectively services. focus our get to collection bulk We bill billing, help Telehealth on customers and manage and for

regulations of reimbursement an Telehealth more seen we With visits. have the for the amount in overall increase relaxed,

haven't pandemics feel effects do to we we medical nicely. immune quite completely that we practices, on storm been are While weathering the

ways on to global a tremendous and track in both distributed that the competitors U.S. with us customers cannot. other our We work simply and stay in able has overseas have workforce to allowing adapt here role been our played and in

biases Our U.S. team team operational several have business remote to remain same work were we they to and as transitioned output able of to continuity continued host overseas their instituted. our a members even members

to employees remote working the our several as management into ability safety members, next our strict as at hundred our the good certain diligent technology given our continue couple buyers footing onsite adhering [ph] dormitories. to and well team quarters. cost other a strategies of for to office, health living solutions employees the This enabled us commute for guidelines the of having and include These

focus to attention on the acquisition. efforts like work doing are now we latest towards integration our would I our of important the

said, have CareCloud was have the made past. any other we acquisition unlike As we in

to platform clinical, With providing which and the and revenue acquired practice medium our integrated SaaS CareCloud, in management a small, space, solutions fully management groups large we leading supports market. cycle

on I'm at happy track. that concert talented the of to our CareCloud. course facilitated make our and has dedicated efforts to and We with by This capabilities MTBC continue and repeatable integration are great been report working in integration strides teams

integration We of have already benefits this the terms cost seeing begun of in reductions.

move. about vendor BPO, as transitioned third-party we April over over this of significant now realizing and this move associated early off off savings of management, we with revenue cost QX, spoke In fully cycle and of

has In than fact, reduction of on million far this more annualized XX% with basis. move along a thus or others $XX cost an yielded

We by positive end on the QX. of for margin contribution are track

even as While more these this service is required, operationalize more we for of continue course, functions work we drive to into have offering CareCloud. fulsome RCM and our completed efficiencies migration,

combine quality overall to management accelerate development closely customers enable and our our cycle progresses, to outcomes and our high for timelines. ability our continue teams capabilities will revenue to work As integration drive

have more out ramping resources and on also third-party up the model our on even of focusing We offshore efforts costs on eliminating on other executed our contractors accelerate driving plans virtually capabilities. to our the reliance by

that contracts to redundant allow reconciliation are between nature. focused eliminate scale technology or and Additionally, the broader us on highly this projects organizations duplicative leverage the for we in need two and vendor that are other

cost several synergies expect We significant continue we our efforts. course see of next additional over to the as integration quarters

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

Bill Korn

was quarter first of XX% the you, increase XXXX. of $X.X quarter for from Revenue $XX.X or million, an XXXX first the Thank of Hadi. million

of to Our our XXXX first on quarter X, of those subsequent CareCloud results XXXX. acquisition January included

over XX% X,XXX based with practices management providers to XXX in XX% CareClouds winning base, award We pay use monthly our which revenue to staff cycle also and of added which fees, addition SaaS. client of cloud services use platform,

net was recent in compared reflects stock-based acquisitions. Our GAAP net million $X.X first $X.X compensation loss net the year. integration quarter of of non-cash million, GAAP $XXX,XXX expenses, and XXXX last and same of $X.X loss $XXX,XXX period of transaction to million costs loss The to as a amortization and depreciation related

GAAP Short-term was CareCloud. Our per the net increase loss declared based to the to decided loss preferred quarter. was into net share attributable loss net takes when which our stock common buy on $X.XX dividends account we in shareholders, expected the during

over will of acquires we a or companies for and we reduce When typically lets we were next quarters that profitability businesses we XX or of significantly to two three ownership. the losing which level months. less similar better pay money, dramatically than buy businesses, MTBC their This profitable after attain expenses are us can knowing

CareCloud of into acquisition pattern. fit Our this

developing reduce CareCloud would done CareCloud’s that technology quarter we've times over XXXX. trend $XXX as CareCloud MTBC’s we during venture but lost we acquisition quickly backers over invested had well we a reverse knew platform, first million profitability profitable could $XX this We into million XXXX, when but in before. turn an bought that many industry-acclaimed knew also this and

we've million already CareCloud $XX cut As of mentioned, we've expenses.

accretive our way on to this well towards So making we are its acquisition earnings.

costs. income quarter adjusted reflects finds our income the transaction amortization XXXX non-GAAP excluded compensation assets, operational was performance. or $XXX,XXX integration impairment non-cash of and end for intangible share Our common first is stock-based and net better calculated shares purchase overall period per and adjusted that it to outstanding. net using Management $X.XX Non-GAAP

to Adjusted was $X.X EBITDA year. quarter revenue, in same period X% for compared the or XXXX $XXX,XXX first of last million

adjusted CareCloud by taken declined approximately reduce XXXX. EBITDA place, the due cost EBITDA adjusted during in should CareCloud QX large already have from $XXX,XXX Our but integration, reductions, second which with significantly to XXXX MTBC’s not the part quarter

process MTBC’s reductions go like U.S. talk a reducing technology an can U.S. workflows the through team, some on proven to methodology We and using with team, employees subcontractors they cost MTBC’s the so acquisition. global I'd and the replacing of typical burden MTBC’s offshore to streamline client about of of focus after experience. administrative

to of our quarter a CareCloud’s reduce expenses to cash during and MTBC improving return anticipate which non-GAAP will XXXX, and We we are similar flows. profitability approach while employing third profitability, second GAAP back

work. acquired businesses of for most most subcontractors for revenue like on They cycle that First, we've relied management also offshore subcontractors product offshore of services. CareCloud development their some use

months, the CareCloud offshore subcontractors own would $XXX,XXX costs employees, which the to our expensive CareCloud, savings hired in subcontractor The wound quarter. transitioning down four the approximately last we've during of generate second by work

to to and relationship, who the perform we base U.S. the most employees. the of U.S. long-term offshore, Second, consolidating contribute would one-tenth selected growth, of for where cost we client activities will careful assessment make and using retention same tasks offshore the employees our client a determine, moving

reduce achieved payroll have XXXX. $XXX,XXX the quarterly we've anticipate taken The we $X.X actions to quarter. will costs we quarterly already million Well, another XXXX reduction by from over second QX QX during in payroll CareCloud’s

payroll G&A keep handle existing was employees can reduction new running. to the business needed largest MTBC where The tasks this

reduced and to offshore to technology employees maintain has U.S. much a that amount R&D also been have excellence CareCloud’s XX at their in the lower cost. platform added our team the plan more for this and double known than to We payroll

QX Even XX MTBC was you'll financial after There in year-over-year. MTBC’s expense reflected statements, expense will reductions reductions few the are the over which XXXX. times quarters. that our R&D increased in steady R&D total be XXX% see CareCloud’s next

to X In their a in marketing by of MTBC to rehiring sales even marketing case, and their we have during X XXXX. and star outspent sales CareCloud leverage sales former Third, team. capabilities, decided this

that continue XXXX to in QX million growth increase quarters anticipate the marketing will organic you that in drive and $X.X So will we XXXX future. expense selling higher future and it that from QX see the in

had assets. CareCloud acquisitions, our all few like Finally, tangible

lives the from So and fairly of is intangible the purchase assets tend goodwill. an use assets the short accounting to to we are allocated price and get Intangible off perspective, books. majority amortized to them

does and impact cash adjusted a in amortization will and the you'll to EBITDA, see XXXX. does expense our due QX income expense but net income adjusted and not net for So year. persist GAAP XX% increase XXXX depreciation is not a throughout This our or reduce it

approximately As balance $X.X of million which held cash approximately CareCloud’s of March the negative of $XX XX, XXXX, XXXX approximately we CareCloud, capital. had back to purchase from million was year-end $X.X working fund the purchase of cash. for including MTBC used our price million,

during $X.X accounts This as XXXX. though QX used overall CareCloud’s to of money from operations. our part even That's some use but shown so, operations doing considered payable million would why cash in price is cash during the of pay was it negative is flow purchase QX, down in

of During XXX,XXX shares. Stock reopening by non-convertible additional April our Preferred XXXX, and million we issuing $XX.X raised Series A net proceeds

is Our ticker at perpetual, global redeemed and starting Series November at cash market MTBCP per rate XX% the NASDAQ at of share $XX option in on cash Stock A the pays can our trades year – the per Preferred dividends pays be XXXX. monthly under

growth of revenue guidance $XXX to full-year XX% over our XXXX forward-looking December of which We close by XXXX. million, still XX% approximately like XXXX anticipate I'd to million for revenue. fiscal reaffirming year to $XXX represents

sales as to than organic growth but marketing team, much of anticipate more as that in have we revenue now opportunities, Most stronger cross from CareCloud this is past. customers, the growth well stronger we a selling due and

added quarter economy the as we in for We patient its of with relates and our but U.S. clients, at QX QX we revenues new whole into reported COVID-XX planned lower revenue had during and grow QX, XX% running speed for to to half we were each always revenue visits. planning approximately than

COVID-XX of QX return of We see patient visits and to and impact levels expect the the QX bulk normal receive from we will will QX. that closer that during a

force including the additional revenue [Technical achieve However, environment avenues annual Difficulty] our MTBC to current we target, relationship. believe multiple presents

Operator

One moment we them connection we Please main have on our hold speaker. bring back in. with lost until

Kim Grant

on Bill. Hey, us putting the They're bridge. conference

Operator

Yeah.

Korn Mr. Mr. go Our Mr. ahead. Bill Korn, speakers ahead. Korn – back. go

Bill Korn

Hope everybody on.

Operator

open. are lines The

Kim Grant

ahead. Bill, go

Bill Korn

Hi.

by originally so as than for you guess a which run lines, our us at $XXX but to Sorry where all via we Force, apologize up organic I as with just our about guidance This to that. We well $XXX everybody. or for growth million Murphy's redundant additional saying MTBC revenue revenue prospects gives these not better. never exceed expect plans off, I XXXX rate quite revenue million sure law dropped happened, confidence anticipated. have higher I'm that me meet portion let the acquisitions, I prospects the exit guidance. to now can been wrap

is -- $XX million EBITDA full-year integrate [Technical Difficulty] for be we've operating XXXX. Growth will XX% to the as acquisition. actions we’ve million acquisitions we adjusted CareCloud Our the The adjusted CareCloud’s XXXX of still taken EBITDA, already over acquisitions. expected expense reduce XX% to to significantly $XX

anticipate full-year CareCloud to sufficient will be QX add the that operating a to of to adjusted level at during our We accretive. overall results QX XXXX for impact EBITDA

quarter, exit EBITDA future our on to contributing quarter, second counting lower as generating adjusted half XXXX with in as during anticipated well plan not during the significantly and we're initiatives positive years. However, to revenue with but growth this strategic additional second CareCloud, profitability we

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

Mahmud Haq

Bill. you, Thank

While XXXX world. for is the a challenging year

and customers, our their to we very with position year investors, thank and growth breaking record strong a We employees profitability. be increasing in anticipate our support. of are another our fortunate We for

Operator? the now will open to call question. the We

Operator

Company. from Dougherty Mannheimer from Gene & ahead. [Operator Our question Go Instructions] is first

Gene Mannheimer

to confidence? return respect that half, of that What your to mean, with a the outlook. lows, guys. you I a feel normal in to I but start to morning March utilization? normal is the you gives your going that do and you think doctor wanted back little why saw bit know that's Thanks. great going to pickup cadence to and here I a you year since return to of visits ask visits are we're the Good in sense contemplated I

Bill Korn

hear Hi. Can me? you

Kim Grant

Yes.

You're back on.

Bill Actually back him on. we and lost we Gene. just Sorry, got

Gene Mannheimer

my question? Did you hear

Stephen Snyder

Yes.

volume I screening about a are the we we I to think as month yeah. basis it – in question, and we're seeing projectory think, of Hadi the Gene and in are your – tracking we April, be your question of Bill came as Gene, half back Hadi have mentioned, and mentioned. third quarter, daily already back seeing on the

our tracking based that be And second at So patient and change, on normal. this encounters third the other today. it's issues, could of there but actual quarter back wave be we there's could to again, point will believe the things

Gene Mannheimer

would Okay. XXXX be you I acquired All you than helpful. to And what contemplated outlook, thought in you exit you're your -- if tracking Thanks. you're what growth, right. is in follow-up previously, going outlook? level my -- what your Very an any, think, then higher of said said rate

Stephen Snyder

Great. Thanks, Gene, for the question.

Mahmud Haq

Bill?

Bill Korn

You from lost line. the

Stephen Snyder

Okay.

think, look be the COVID in that Let But no will me, the answer to of there don’t as know, at we I year, there trouble Gene, questions, impact is is having full-year. I terms connecting. the he your doubt

binary January million those beyond of see we ways being above the combination So million we probably, MTBC a year avenues to anticipated [Technical to doing order avenues, $X had one are if Difficulty] being Force and through one and X, the avenues. $X multiple on or paths as you for or two of in other And think an those for additional what deals at And for there the guidance. of we through add us, achieve us about look revenue potential there that acquisitions. opportunity through

Gene Mannheimer

That's great.

or So contemplated $X outlook million the above $X million is to outlook? in current your that

Stephen Snyder

That's contemplated in the outlook. That's right.

Gene Mannheimer

you. Got

Stephen Snyder

Right. Yes.

Gene Mannheimer

Thank you, Steve.

Stephen Snyder

Gene. you, Thank sure. For

Operator

question National Corporation. ahead. next Our Alan Klee from is Go Securities from

Alan Klee

Yes. Hi.

your have about they well they that can as you're talk centers, confidence COVID? doing and offshore you run, continue your what to given For can as

A. Hadi Chaudhry

Okay. this Good you and is Hadi. Sure. Thank question.

in of have all, many are mentioned As the that so a our global there one I we advantage – so competitors, first workforce. of we of earlier, have

plus and We about offshore. on are XXX different between U.S. over about offices side members team the the X,XXX

are we basis to a about on are that that there set directly working them taken, the XX% the that and We strict different that working so have about commuting up So roughly office are home. are they is health home. layers from XX% there. daily They working and the already under the working have at working that workforce in employees, and even literally the closely to there. living of the then office onsite of of have the locations. work are one and our they guidelines agencies the are safety in one from with then And -- the we commuting rest dormitories health They back

to So the facilities better nothing capacity opportunities and excess between provide mentioned, the pending can have and virtually turnaround out office providing that's And we which those vendors. completely be the time, three, also than of here right other up, support there. and was we able as have provided far the we competitors it's the back lot any -- been now partnership Steve a the of that provided caught to other these started, why at are have

Mahmud Haq

difference whether is hotter the the Alan, with is with Right. million. Pakistan, over malaria at is harder, of type if XXX a there temperature rate or much office where is, look back you a country harder, Mahmud. infection the it whether major it's this discussions, And

reported cases less XX,XXX the think I than are today.

much as it has other So could we epidemic affect believe that not as Pakistan countries. – this the

Alan Klee

following were legacy, -- the how think would did is you CareCloud the excluding by quarters? legacy help of it declines what Thank volume what standalone, rate -- the patient in was understand first with business Thank and you said and Okay. how I a mean, legacy from it when said the better a XX% Then on missed trying very your growth maybe anticipated business could legacy quarter, maybe about the And and you business. I little much. in I declines the kind you to you. how you volume organic maybe

Stephen Snyder

Thanks Alan.

big small in were in decline in going QX, And but in wasn't March, volumes, doctors. deal to people February. country, a basically big there deal So a inpatient COVID even the going wasn't of was still about remember activities, in January, normal a during the most

in volumes last weeks So inpatient we of the a certain during two areas. saw decline in March

not So during very reduced but by amount revenue large bit, QX. a that our a little

impact think numbers XX% XX% most specialties going of to we the that we the from and they're candidly decline again, ranging talk seen to to -- COVID depending QX. other Again, we've even is about from you're XX% the during less serving. visits see people When doctor, see XX% to maybe on

the Only XX% our encounters. about to of revenue of doctor tied is value the

many of our So starting of a starting the we for doctors were using some see QX, of know don't that country reopen. seen We many and and patients house, ball. in to is course, already again, to We've have crystal Telehealth. doctors

there less the were person that visits hurt in revenues. So didn't fact

think can't in June certain going on is than a was tell start that look be bringing you little a think would I'm I or second specific everyone at So, if more areas. And their can't to for we'll children less rebound QX. revenue sorry, well-baby going declare a victory you're a about it Xst, QX because to lot to start in revenue, trying see back and whether being I to whether I I visits QX in

can't we think, I that, given on be as specific the really short-term. So,

of that lot see do significantly we can much feel quarter, hit overall What we totally from $XXX to numbers, piece, year, with during $XXX to it's a without And guidance. ball, lot look confident it's way can candidly, the -- the million hit various to at a paths we you which we each second hard we do our are we by will but is the million could of especially there and we've telling guidance, exceed and things that our got to opportunities can crystal how a predict. a whole a say, come

Alan Klee

Force. last That's highlighted two I'll question – you. and and queue of Thank you your then telemedicine was growth get and that my areas is, in back Okay.

that, something comment to how increase wondering what thoughts longer interesting for made on an be term a You likely back normal? post you getting to you seeing Thank is into is of Telehealth. you're expand get economy were just go maybe reimbursement you about that could could you. And this I just that? you again. seeing then on if on be in if And little educated I Force on could that. and to Thank maybe was your that

Stephen Snyder

question. Okay. start you MTBC some Force to in Force, about longstanding you more and Telehealth. recall, I'll the for of acquisition I'll Absolutely. Thank an then our Hadi talk may strategy. with outgrowth loop is as

market. a then significant So -- there there a is we think remains addressable

for valuations Force. candidates Some of the they acquisition but opportunities regarding today reasons, that for its we're for good our of were or structure and a that phenomenal our to growth, insufficient pursuing us pipeline MTBC or alignment potentially candidates timing through acquisition are opportunities initially whether came variety or size, weren't necessarily

working through So an half XXXX alternate in and MTBC second we benefit from provide vendors benefits effort -- in other this to to of the them. with XXXX to launched of able Force be arrangement

office that's it excluding the revenue that to referral white in offering. is situated management cycle providers, IT augmentation, and based sometimes if What U.S. parcel MTBC kind we similarly a It of of resources of vendors administrative also includes set back R&D other workforce greater it includes of in our space services, XX% reduction for generally support or just level Force overall speaking an healthcare terms support, at solutions also part with some opportunity. similar aspect and its of compared discount a as overall to and variations customer or output. labeled, educated a offerings,

of in and added cycle are one revenue management either to close MTBC of those we've or Force, value half companies are relationships. case half that HER reseller. Since other launching dozen About those half signed the EHRs

MTBC through has level, opportunities to and I President promoted next them. great job was helping and role and already of to terms and to a Force, in take doing the to had phone, many drive us also deal have the the launch been of Karl to Karl business of helping

additional for look growth. we Force talking we system, So that practice think, our promising Hadi as particular, to I'll talk at the about come believe And MTBC to the in Telehealth see fact were in and I in loop we is we really encounters. avenue about as management a scheduled

And those type. look indication occur Telehealth, Telehealth a not where encounters but the some some platform of through of anticipated there were overall necessarily our scheduled to Telehealth, if encounters we percentage is that at pre-COVID

weeks weeks suggestion XX% [ph] Pre-COVID, in Telehealth Telehealth if to of ours, schedule that those encounters. March, encounters for leveraging you X% to anticipation than week or Telehealth first technologies if complete those those an any encounter with of the some instances end eight instance, February, scheduled you order later, look other had forward. than one-tenth Four technologies occur instances fast less in of the through of at, of would of more encounters appear many in be five the

that, ensuring as company, comes And offering of is of our you'll a percentage as And encounters. recall providers. revenues received that receive healthcare the of health the a our Bill really their for by of care overall revenue providers much majority as collections and appropriate key reimbursement part our our mentioned,

be related Telehealth generated additional from made very healthcare reimbursement technologies. became that mid-March, by the changes then providers will of also the both helpful through use traditional providers reality a could some HIPAA to as that talk and an that changes that extension expanded in to and of beyond unfortunately of were capabilities Hadi compliant through changes but And by above executive about healthcare and a the that order were technologies technologies subsequent COVID actually leveraged levels little bit and made CMS universe

over to on Hadi this point. So

A. Hadi Chaudhry

they new that of understand going more be even to the will layers Thank more the to norm, be the all towards Steve a Telehealth you, and number post-COVID. transition Steve. different we encounters add To it's points,

emergency, public this as regular the have the course during in have that announced, would level so an will otherwise the at order, levels same of business. as or under health it So been be be executive example the they can reimbursement

for will So long this how continue.

home the would encounters otherwise But for in visit. yet. now being amount the at or same sure at are that been not are paid We have in paid reimbursements, of terms Telehealth office also

one. that's So

point another when that of compliant are codes a the for and other for calls. health during some at been FaceTime is the audio-only of example, thing second methods non-HIPPA using here treatments, EMEA audio the only there added using initially even And the emergency, have connectivity, even public or in new

started the two those revenue to reimbursement for client. the have to the So the add all for add of started

and the more first standpoint, And last we the that the SaaS. making to through From providers on make is been nowadays system, sure we and coding our that sure achieve launched created for focusing of being level the The are right on have right encounters. going in as rules in right to practices the done reimbursement. continue MTBC the they Telehealth the guiding we those focus product year

we will Telehealth the of and which TalkMD, the to progress quarters in talked lines next as the provide And those called continue solution our coming then we are have making update quarters, the in earlier phase second launch on and well. about we

Alan Klee

you Thank so much.

A. Hadi Chaudhry

Thank you.

Operator

ahead. FBR. Go Marc next from is Wiesenberger question B. Our Riley from

Marc Wiesenberger

about you Concierge talk the how the to practices, what up and your offer? you use from Pro of did Concierge economics Thank value for types the morning. of kind think on CareCloud you. us you of through help ability tiers differ services service you would maybe that about Can to move Good example, going added there? respective offer And customers

Stephen Snyder

Juan, Thanks about CareCloud our a SaaS to client I'll picture President question. Marc loop for plus first average the as the question. alluded versus then revenue only of Concierge it you who associated in or as Division. as you the with SaaS is clients. get exactly Big we Great think a billing said, and

kind a is three a difference. one difference of to The

take you take take $XXX month provider you're generally These let's as $XXX, going talking SaaS take per to from only billing, use per numbers argument's month am just and to but price $X,XXX varies, $XXX $XXX for the month. sake, $X,XXX speaking, I are per monthly that we to per a about. a to revenue as So overall provider

real the to RCM come and on a campaign. working significant who individual, that and upsell launching technology key of we've that the another team. brought a been we lead experience he sales upsell overall campaign upsell has revamped of organic in CareCloud, our us, growth within and structure has on At for So been in effort part completely focus the of companies to that terms has

We have special promotions.

about team. where MTBC would as so upselling leveraging natural talk But that's over favorable through more our you really efficient about [ph], a very to the targeting a why Please. CAC talking you competition. to Juan do global the the vis-à-vis and much more we upsell more that's So way amount we're and bit subsequent little that quarters. able be that and a also That's opportunities. through promise on significant news be opportunity, grow come because question are a see largely Hand cost even why we of to believe, a the see CAC

Juan Molina

you, the and Thank question. Steve. appreciate Appreciate

for -- right, to now including and and coding to capabilities, comp expanded sales offerings us into a about absolutely ability particular, things the you're huge huge these to practices work, to we're PIP upsell been able for significant We Steve. do be ability with be worker's think the wouldn't see into services a the dive and our our customer I of new for We because MTBC think claims. upsell the bases. we have in preauthorization to to capabilities scale the normally In like specialties able opportunity teams where specific able that offer and opportunity to and management, referral see able past. do orthopedics we this other authorization deep like

revenue our author of offer and do us are folks about bill surgical for services. that to other transcriptions for reading poses others don't us the and of management these types versus the ortho really competitors that some off think of actual opportunity to notes, of like unique ability cycle depth breadth I or subspecialties or When this a required

of streamlined solutions the whether like new management as that They're myriad approach, see thinking adopting really operations happening what kind technologies And organizations through cycle systems, we are practice a can new non-clinical really management or and ensure this revenue healthcare moving normal the and a also or we offer. like. a they're these outsource really and looks more now of see So we records through that of organizational ways, streamlined a see themselves. lot footprint more you how that – like electronic our to looking

Marc Wiesenberger

lot of loss buzz. clients Can of you to presumably Thank things a the conferences the with get doing busy really maybe of to conference helpful. of you. of wins? with there to offering new very some company, in the up, talking the you're Prior out going the pandemic, Yes. front and the get kind you That's schedule out had new and combined your reps mitigate guys new lined about a

Stephen Snyder

a of key Good conferences question. holders one by even canceled to don't And be and opportunities. versions of see themselves anticipated most as never were in either the electronic those electronic the promise you correctly conference been alluded conferences or of We to of actually to drivers whole lot have converted the of those conferences. conferences the

So we we've thought and avenues be really doubled think will [Technical are continue key been -- growth. the down that that to we drivers on Difficulty] COVID think the of

upsell growth referrals The to also vendors, industry and building relationships existing been other with driving critical through our certain referral from through clients. campaign really we which our have

who's or are us benefit oriented perspective leads been executing more those. those of and may client service. believes and to our no Those towards lead a powerful that golden colleague those really all or our then who knows his closing referrals than particular really conversion have that's coming from lead from driving efforts and physician from hers, There's satisfied a customer a recommending successful a and

energies key that not those anything, business. towards to really frankly, submit this so in the different we're new laser more I way allowed that would like than that are has oriented driving And approach activities of the actually doing. a if pre-COVID. in fact, that our the types And us So focus much even are on is things most

Marc Wiesenberger

and in in We're maybe hearing from medical and cash the back well. the jump lot shutdown the a one smaller survive. and unable as helpful I'll as they're some disruption flows And and of have queue. me, country, That's potentially around practices about they're then dislocation more to

if half about of your business into how practices there and think consolidation? through smaller these of As of year you and/or the then ’XX, back on evolving the think do maybe about you and that business, maybe the is potential impact going consolidation out

Stephen Snyder

you Great question Marc. would please. you can maybe Juan, on that And maybe jump if

Juan Molina

likely Yeah. or medical at least One Sure. Thanks, the storm. as the probably impacted Marc. this weather are by to most would likely can Steve. least say the argue, organizations Great practices that were they probably financial that question, pandemic smaller I were

start back this as back regain bounce their continue again. of starting even footing and to indicated we're are However, that their before, to and smaller bounce seeing seeing medical as we've and we seeing are kind volumes patients appointment they expand practices on

think, next the likely struggling acquiring though, is of some medical independent continue regardless however, and groups do to these of the to medical We probably will the that couple more that that I quarters. see thrive. practices space larger group start we'll think, of strong we fact, well-funded over believe But very

groups technologies. that groups our though we're and new the are our to they with closely able of larger of very as because depth work regardless smaller that or need both technology acquiring feel do breadth these a smaller size really tools, of practices We these

our And do prospects I how normal that their really drive looking new take are at leverage to better say more in some sophistication as a would as So business. begins I with and shifting. mentioned, margins conversations they're shape, some really and they

So will that we we're these ones I larger they But do consolidated groups, get do to both see positioned thrive. practices space. likely by if that market perfectly think medical even of smaller these segments help

Marc Wiesenberger

you. Very good. Thank it Appreciate

Operator

Instructions] At [Operator no there questions. time, this is more

question-and-answer like remarks. now So conference closing Kim over we'll for Grant conclude I back to our turn session. the would to

Kim Grant

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

Operator

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

You disconnect. may now

Kim Grant	General Counsel
Mahmud Haq	Founder and Executive Chairman
Stephen Snyder	Chief Executive Officer and Director
A. Hadi Chaudhry	President and Director
Bill Korn	Chief Financial Officer
Juan Molina	President, CareCloud Division
Karl Johnson	President, MTBC Force Division
Gene Mannheimer	Dougherty & Company
Alan Klee	National Securities Corporation
Marc Wiesenberger	B. Riley FBR

CareCloud (CCLD) 14 May 202020 Q1 Earnings call transcript