MTBC - Earnings call transcript Q2 2020

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Operator

Thank you for standing by. This is the conference operator. Welcome to the MTBC, Inc.

Second Quarter 2020 Results Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. will opportunity there ask presentation, the be to an questions. After to I Counsel. conference would Instructions] turn now General [Operator Blanche, like the Kim over to go Please ahead.

Kim Blanche

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

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

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

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

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

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

Stephen Snyder

quarter our everyone full you, thank and privilege second earnings call. us and MTBC’s half discuss our first Thank Tim, today It's outlook. you to on XXXX performance year review our for joining XXXX

We to first a are half year and with historic growth. of record report truly acquisitive pleased the organic

based with times upon expect annualized to as acquisitions two the XX, compared December business closed, revenue In roughly exit already we and fact, XXXX to the XXXX. the

As the of our described of to we date. growth, acquisitive in as acquisition closing largest CareCloud, January, to our we acquisition announced which

acquisition Medical quarter, second of its affiliated Management even to the entities. and pleased that larger an we During then Meridian announce were

enabled both us robotic the add our or across RPA, automation, health These allowed acquisitions assets experience process highly electronic entire more. enterprise to expand addition including to to also solutions, rated two strength analytics, organization. they patient bench and business cloud-based being acquisitions, management our level attractive In many largest digital us records,

marketing, positioned many to have roles become and a even better customer critical Our new patient development, success other acquisitions research us team and members in are sales, stronger company areas. us opportunities. to They helped support, with growth operations, future and succeed as and already organic playing

acquisitions. last which we've our executing over honed has been of decade team standard Our work playbook, the hard at integration

of our the Our submit working the are enhancing blocks companies. technology building added to service already are foundation and newly that capabilities combined now have teams levels laying the and

While at margins time working the opportunities. the expand and pursue same growth to

organic organic continued was gain XXXX acquisitive that to XXXX standpoint, driven a new Moreover high has growth growth have watermarks to be have new organic then and been our scalable. all systematic, see XXXX also our broadly grateful as qualitative one to wins based approximately as renewed alone during strategy business increased we initiatives during believe of more our our and diversified already and traction. a of from company. the much closed business growth repeatable are more by succeed, approach twice As today Today, we we

QX came Our during growth more size is today five XXXX. than it was organic times the

our annual recurring revenues, which that approximately an industry costs. prevailing we return to end, reinvested average level investment. customer on of of we to increasing anticipated are continued our grown, And we strong in we has a of investment organic As To an cost have laser grow, customer it target focus growth internal have a acquisition on XX% managing strategy. with our acquisition portion capital the of achieving the to while are favorably of compares

extraordinary we've see While healthcare continues we COVID-XX. favorably the our all respond to blessed to in world offering, challenge face that providers know to been

to during I our existing we and And stronger we our for speak an to as and have call, new technological never that women true I during are of positioned nor company As support last the and feel this of work providers support that crisis. clients. have serving earnings privilege sense reminded again again we a time know been operational, purpose have better in we we men, from I who entire been discussed heroic say healthcare team our we've we as and the when that time a or finance our been believe perspective

revenues we increasing XX%. during to XXXX, provider to of while $XXX,XXX In grow to during adjusted two quarter average XXth XX% positioned by we revenues we consecutive our EBITDA, to a million outlook by EBITDA. simultaneously significantly our XX% midst EBITDA we still record to are for grow turn reduced as strategy to quarter the of outpaced year-over-year continue volumes adjusted marked by that grateful quarter believe XX% us which our while As two, discuss that our year-over-year were enabling of pressure positive adjusted producing XX% downward to growth our temporary $XX.X

their average across volumes by stay our pre-pandemic recovered February and January and COVID-XX country the driven patient in home to since now the one levels darkest development average This of are the charges While at of have volumes. nights year. two positive dropped outlook almost volumes of this by in directly provider our period, for a thirds is nearly half healthcare approximately revenues

as industry technologies for the support their providing challenge pressure As leveraged their pandemic, rise we've been to our by to they've the team our the mission. proud of clients and has patients see tested to been our

now still XX% XXXX rate floor and we for the guidance come. now to turn our compound that Hadi? Our days are XXXX XXXX of and implies best Hadi. I'll to believe a over annual growth between truly

A. Hadi Chaudhry

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

this mentioned encouraged about half year excited Steve are earlier, the we date. As and acquisitions closed the first about of have to we

Meridian we organizations, With In recent great reduced been to talent operating on to of whose already was large the be products continue taking with these than the more will on our addition to offshore transitioning are accretive closing additional will more strategy. our regards making track necessary We believe at expand teams margins portfolio assets. we plan. recent, that XX% incredible and required expand we accordance have and and able executing BPOs After integration operations in particular, and improve team. it quarter solid with have technology with Likewise three. costs acquisitions, our we are CareCloud our and in in onto is progress to by actions That quality services scale Meridian, third-party now accretive. during proven with expand MTBC’s will

are line benchmarks. retention, that with or preliminary we to trends In of in historic exceeding pleased terms customer see are our

patient individuals, acquisitions our broader enabled us who From these are on experience find are contributing team management world Additionally, with bring and have individuals the enabling already expertise. expectations, This our us enabled is hundreds team. to of and exceed the our but organization. us able to to to professional world strategy, business. with experience members a expensive strategy to and who payer class to professionals, team sorts acquisition and to in clients' onboard and R&D across success decades new begin team through support are continue experienced talented services, the build of them customer innovate market, product difficult and These win to we have open the individuals acquisition rapidly industry our of and

they and day tools, needs. cycle to and other as we to our Whether telehealth patients with privilege analytics day their clinical providers delivering clinical while care cloud-based our it we to of touchless customers. is any it their appropriately scheduling, to or by our enabling their of providing focus support is healthcare access be countless check-in reimbursed, We providing on revenue charting continue humbled the empowering and supporting ensuring that support, ways support the patient patients information,

We enabling delivery energized practices. their mission of by to to devote trusting are the our care entirety needs while of to focus the physicians support their day-to-day of us

been of technology customers XXXX. the For us, half than expensive Along base. never has first our over this more evident with offerings, this enabled we

the tremendous manage to position overseas able differentiator, the to the operations tough be disruption retain global continuity campuses. thank workforce vendors reliant worldwide headwinds by work work the to advantage fact, to market This global peers pandemic. of and peak and employees we experienced hard deploy that strategic in produced Again, workforce, other in their we in us accelerate dedication mitigate distributed both remotely our on level here COVID-XX, allowed their across Because the planning, of growth. industry to by of forward and during for the office us continue and as and back strong operations. are strategically time. to our this rebellious needed During This were the customers continued U.S. allowed without to the business third-party in our

now services, we addition of core software – markets the acquisition these to specialties just in technology largest Meridian our mentioned, enabled Management service. and I latest expanded has can Medical our Finally,

enterprise upsell added for within current enterprise our platform, install across this two base comprehensive effectively We there to opportunity large believe market our is is currently include thousands our providers. PrecisionBI, Two of product We deployed this accounts. examples to of that base customer portfolio. potentially product enable go business have after additional analytics and enterprises, intelligence with to also products powering larger new technologies these data an grade

Additionally, to mundane of automation or financial mostly are associated Meridian development conduct These tasks practices medical that on today in daily with Microbots. basis. robotic workflows repetitive bots, process, also significant investment automate deploy a

the into are These integrate this with bots proposition to part of behalf as value offering. offerings automate MTBC our These ways own enable are allow of even drive We excited further. efficiencies businesses their RPA in we Microbots example of our and look to journey and our and these in our force and Force MTBC the One expand better margin margins customers customers. FTEs customers. virtual scale to our product our exploring and business. about our expansion bots service also to we on additional all, portfolio, All recent our can their is will inclusion such of forward continuing expand

As Chief to our to and Bill market. we turn bring over Bill? I to solutions will continue Korn. innovate Financial now Officer, the floor

Bill Korn

also Revenue you, Thank levels, of are an Since widespread XXXX second reduce revenues. XXXX. tied the our clients’ or impacted our of encounters million, of second million number COVID-XX was Hadi. the lockdowns $X.X the revenues quarterly increase quarter patient approximately that activity quarter our XX% two-thirds to directly for negatively of from $XX.X

visits X% we averages of to during by the the January However, patient volume returned saw weekly February. of weekly and July, within

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

net know to GAAP acquire was our the shore We takes loss we in expected based on net economical technology, shareholders, loss where $X.XX common dividends Our and during increase attributable share quarter. net into we that stock was acquire we per using both. our to by businesses our decided The which declared loss account to can the preferred find or improve profitability CareCloud. Meridian when employees most off the

a expected contribution profit one or we quarters. for So negative two

In have the not assets. MTBC acquires tangible addition, do substantial businesses

net four the to of assigned and over years, of not charge, important amortized these intangible loss. like of assets average GAAP a value cash an relationships but non-cash client value reduces an GAAP So or our We amortization it intangible This item our profit. is technology. income the line life is assets in most which is

XXXX quarter quarter EBITDA, reduced $XXX,XXX COVID-XX. XXth patient as of second XXXX consecutive positive compared of was that of the the despite $XX.X was EBITDA Revenue This our revenue adjusted in period due last million, increase half half in an first of to XX% same fact first adjusted Our for $X.X our and million was were for visits to the the XXXX. to $XX.X million year. compared

MTBC We whole including more annual than of also signed yield Force the full clients, recurring year which revenues greater is will signed XXXX. during million, we $X partnerships, new which of than

half first $X.X the year, net or a million first XXXX. For half $X.XX million of of GAAP share, GAAP the compared was in $X.X our per of loss the net to loss

of transaction and during million, integration acquisitions. expense half expense million and and Our space costs GAAP depreciation net and related accounts net It $X.X loss. unoccupied includes GAAP impairment stock-based million. lease our by $XXX,XXX and non-cash of office expense assumed $X.X amortization amortization $X.X leased loss approximately increased million, includes of recent two compensation $X.X depreciation and of for to charges Non-cash excess year-over-year, also

to You acquisition increased our price assets part expect second Meridian But acquired the growth. it's of June. half small it's customer for other in can as remember, see we the and not the cash; as amortized amortization technology XX% intangible during relationships, year, the of year-over-year pay to a expense

exiting technology to reduction as to results cost subcontractors incurred we we half achieve costs integration facilities offshore. Meridian the as This severance, $XXX,XXX need, transaction well winding related acquisitions. includes efficiencies costs included from CareCloud, we no our and as of from first force and Our future $XXX,XXX and utilize longer of down in approximately cost-effective employees and of

million by EBITDA outlook. to of full-year $XXX,XXX, EBITDA was these see We $X.X expect compared of cost as and our the the savings half first benefit the indicated quarters, third the first of Adjusted to during adjusted as XXXX for fourth in XXXX. half

revenue marketing, that and pursued the place to or take normal not position there R&D was do, was offshore choosing half visits ourselves cost-cutting in COVID-XX. to or less team, growth our patient reduced, first reduce Our post-acquisition opportunities. advantage downsize and to in due routine investments always we not did while we And of sales did our a we furlough

of the and after subcontractors well works So using times and and a methodology technology proven experience. on offshore this in loss burden have reducing employees our the the increase our the acquisition client with who go the EBITDA team and global our focus U.S. replacing typical MTBC of COVID-XX. process of through We reduction followed cost MTBC's know some of of so GAAP they Those anticipated. MTBC's team net in U.S. reductions an can was in workflows adjusted to methodology past, even streamline the administrative

CareCloud to services. we work. for relied XXXX, improve subcontractors most offshore of of a significantly down expensive used Meridian to expenses of and subcontractors back the or and revenue some employing the we've replace profitability management businesses GAAP starting hired offshore both our as the that with Meridian, half their during by while CareCloud Meridian’s reduce also employees, process employees, striving development own MTBC offshore approach we CareCloud, flows. quarters, profitability we offshore are do selected XXXX, to on looking We as also at cycle service and most similar our as expenses for In well transitioning at product to first to their wound third work during ways onshore improving Like and maintain quarter this. employees is we're non-GAAP levels acquired, CareCloud's third cash which will fourth subcontractors return anticipate

XXXX, approximately million XX, As cash. of we $XX.X of June had

guidance X.X by Stock. Series raised approximately issuing replenished that proceeds its the the $XXX we annum raised we our in rate fiscal for December redeemable ticker acquisition. used like of In guidance Preferred shares of Series MTBCP, we XX% XX, XXXX. close be perpetual, Global million November. A and of which non-convertible at share as pays year we option this under growth Nasdaq Market $XX.X represents the XX%. year XXXX to full of monthly per our at Stock million This our is raised reaffirming The year-over-year forward-looking redeemed Preferred twice annual at cash approximately portion dividends through six-year the the million April, compound net A cash as trades revenue XX%, rate growth to which $XXX per high starting our of I'd for million, of July, by July, Meridian in can almost During on ending $XX to

to the to for half that continues number annualized first and COVID-XX an this track we during of have volume a the pre-COVID of cases more as We to on to and of generate business we're impact million half large are the not higher in at their $XXX of majority account April a the seeing Meridian visits on CareCloud than believe six May. revenue anticipated. XXXX. of there originally all major and office XX% in is signed returned which $XXX XXXX, point, growth while the significantly last than seen did million we also we XXXX signed basis in of nationwide, we during during of We the new we be visits And weeks. levels new patient on second

to revenue the assumption this that is conservative impact calls for U.S. of estimate on There XX% new year. business of this least the half our the no second record during most year, second of As goes economy revenue will our the the to but contribute at it growth way live, COVID-XX will half XXXX. during even have

for million should with reduced we over integrate and have adjusted the full $XX already started EBITDA its We XXXX significantly this XX% we and adjusted increase process in to CareCloud’s Meridian second the of growth expenses, expect Meridian XX% XXXX, The parallel. acquisitions. the million of our year as year. CareCloud to $XX We EBITDA operating contribution representing EBITDA, half to taken for on adjusted actions be

expect of May, and to were economic we're higher activity excluding to will the in third a significant Nationwide, than closer than Meridian did We fourth EBITDA see with levels, quarters. in revenues normal visits in adjusted the levels steady, during be and patient they seeing quarter. higher and second we increase April

our a adding quarter, During overall will Meridian third the business while expenses reduction so will you see to profitability, in the that CareCloud’s be neutral. is

fourth to savings, so will to EBITDA profits, big concluding During you’ll adjusted comments. as to cost expect be increase to continue turn achieve accretive see third Chairman, the Meridian and second Mahmud for his quarter our floor over from I'll now additional from will CareCloud as quarter, an in to fourth third.

Mahmud Haq

Thank you, Bill.

investors, is due generate XXXX year is year strong profitability. thank of a increased us a our MTBC and of challenging another COVID-XX, as breaking to employees We position be While very their support. continued with to customers, for we in for all fortunate growth record

questions. now the will for floor open We Operator?

Operator

you. Thank

We Instructions] ahead. with Thalmann. will the begin Ladenburg Jeffrey first now question go question-and-answer Please Cohen comes The [Operator session. from

Jeffrey Cohen

Hi, how Steve, you? how you? are Mahmud, Bill, are

Stephen Snyder

Good. Thanks.

Mahmud Haq

Thank you.

Bill Korn

Good morning, Jeff.

Jeffrey Cohen

I out So that look. to myself just much. I'll limit appreciate fantastic very and read couple. a

of could and your a faster in digesting more little So getting internally, on little types practices for about flavor particular? maybe you for getting acquisitions these a efficiencies you bit talk and specialties the these years

Stephen Snyder

in a It’s be I'll Jeff. Hadi. do and great We get then happy looped started Sure. to question, would that.

and So our since CareCloud XXth XXth acquisition the represented and IPO. Meridian

we keenly the continue do suggest that really well and it's follow and processes improve. with terms team both questions we And our on approach. each of believe to the that overall acquisition, continued in the it's your enhance as been overall to playbook, technology honed the So successive we

integration ago mix? or the one Hadi, to matter. is to larger that even two to we to today – our a bit of that able detail without and for than provide seeing could you're better And specialty ago two years or year were ago them maybe doubt largest with our additional handle with So be acquisitions, little with years what we're regard three you equipped belief a regard

A. Hadi Chaudhry

Stephen. you, thank the you question. Thank Sure. for Jeff And

already we the from has first of progress to recent the mentioned, most integration acquisition, started working Meridian revenue which Since the on And current but Meridian’s – the our Steve offshore engineering making As standpoint. from integration at have offshore been date cycle, also on is then we currently subsidiary significant shift one the wholly progress. is the to owned in BPOs been have CareCloud, similar to contractors. reducing reliance in employees the our focus

any same working consolidating As previous sales with are on their the as our with ours way, we are acquired of facilities aligning of organization did with part as the acquisition, we that in CareCloud. transaction,

such significant services, case engineering Meridian and added. improvement, to an RCM, also contractors the aside the are as number plan about we such our us standpoint, BPO I And are have a example own and otherwise. things if provide completed, departments CareCloud certain are which faster which give that there shore professional Aside the team, that and to talented are the new There in from increase our this our with such engineering at been has Microbots been number we for employees engineering ability than there talk can as scale with onboarding, case, success. be still in for pace that been the near completed. competed, has to has our offshore already and the and cost other transition is from RPAs, of could greater product going can the is, One CareCloud, with client as teams transition a also things and offshore on from resources minute bots of a integration

of sales of best working So improved. significantly that the been has leadership marketing and has together in we about organization across practices the Steve process later and entire been more organization. And proven our on CareCloud’s are currently utilizing their in can also these alignment talk areas the

still we work CareCloud So Meridian, more making be done, that and to between and progress. great this needs is a there's are game

Jeffrey Cohen

from as that with further as that as base, on about then about And it. and Meridian the current practices your seeing got Okay, as if far integration, RPAs is bit increasing Microbots came same? affecting or that's and the trends for me, what you – size the secondly how far and Thanks. little the talk on practices, about our assists you're customer a

A. Hadi Chaudhry

Sure. can for and Juan And more jump Thank you. some then can I start in details.

we pace the the things, talk our the already are we to developed. from which increase with about when proprietary the integration previous resources we technology, with two second that's So existing – thing the Microbots whether started more of Microbots, CareCloud. acquisition have being platform, adding And one, MTBC’s MTBC’s or MTBC engineering was

is piece I are in part the that are ways phase. there if the back speak. offering. APIs offers as if just that we platform currently that So vendor, analysis functionality can give the the and integration Force the with Microbots that one are we ways overviews the the net the step be help to of design on two already integrated And is with and MTBC some included of API. the platform working of the using We it have There in two as currently our

part using second just the The is technology. scraping screen

cases, in API available. scraping We that, and up base, So some to API where and if cases not with is of preferred integration course the go level possible. technology the offers the many an in vendor the screen the

platforms to are addition many there RPA which the exists. already integration in that, other So

either So opportunity for platform, Juan, to that new the get with scraping a so when like moving the it's example, integration MTBC screen done in, already comes using technology. can can if API would exists, as forward, you we the we be the matter case, new start anything quickly, so live between other the add in literally the if in here? either or it And weeks. of Force,

Juan Molina

Thanks Yes. Hadi.

on So about be vector, would at think I think the So, think covered it question software two well. last really really vectors, kind you across of right? I one what features. vector be as can Steve, you looked mile of around And RPA would when I think

Microbots or or is, up is And PMS I So is effectively, of these like perhaps functionality. third-party think full et eligibility to authorization up customers, the doesn't either systems mile to service these able work kind functionality to we're like checks automated things or built make this have built cetera. had EHR outside specific particular on also to customer referral of we're And or connect side is that [ph] a used for this right? management, the and payment the but additional systems. and need this last where deploy don't cases these CareCloud able have functionality, our open applications to that. both required And very That's CareCloud capabilities APIs, Conti to talk third-party of on platforms really enough EHR enable that directly things MTBC not the support to or that on customers workforce of appliers, think do

really comes that's enablement. So all where vector is two this workforce around of really kind in, which

and meaningful bots So that or profitability these them highly this help execute FTEs is train where these work reduce program activities deploy drive to on we're tasks and practices. and customers able leverage these to and staff these take to medical more repetitive and routines allowing our within or to partners

Jeffrey Cohen

it. questions. got for Okay, my That's Thanks taking helpful. super

Operator

go The with Capital. Roth ahead. next from question comes Please Baldry Richard

Richard Baldry

strength headlight. assumed would look have of maybe a have of would very I sort you quarter? Could a prospects much deer in in the Thanks. and into little the that lot deeper been signings

happening Now what's change backdrop we to want to don't world, in figure very try the now. anything the out, have to chaotic right

really of like So get bandwidth average macro the productivity maybe below in So or did could how because you was was of head talk count the about, strength headcount that that how bookings driven? still per people's when sort versus June will to would and improve half the in you second address trending changes that that this quarter. I Thanks. actually do the believe see you

Stephen Snyder

And end our in, joined of with us, us we call have question. Wes also the Rich. quarter. I he's for loop the the Thanks first Stolp of Well, phone thanks, the Sales, on EVP during

we broadly as you provide ACV publicly year-to-date details, full we you from of spoke earlier, a much QX. to business And us by perspective to as we of a twice that And more an booking $X able QX year year-to-date, and achieved an I where may perspective about call, And can to but we you, we've really all even strong growth. additional earnings from of XXXX. point goal $X bookings stand in aspirational million to XXXX from disclose to being ACB some during today, he close of million pleased we a that during QX. during QX for closed color, compared while about was don't maybe talk as So alluded be kind we've as we can our think been even tell have able at achieved last were recall where to

maybe those and are things clearly alluded to one part increased I you of think our investment. it couple a is there of

that, XX a one So of regard terms team, as XX% and exactly we've times, And years, today cost. we we what from those a because look kind growth. had, CAC that have when difference or we've to at our peers, done. greater of that's about said size made increasing roughly looked continued focused for And the operations, of significant that's in that invest marketing. from prior night and cash we ways as relationships, on metrics sales you'll investments individuals amount the of to that of in acceptable the to we're Having of when in parameters oftentimes with overall spoken customer look the our we've of some we the which of cost acquiring and at see managing day

today candidly, think and the overall team? we now solutions? products to, closing things is be growth the well, So rate all been to time scalable our allowing we it question that it find relates ourselves so rely is combination much approach, in to focused cost we of a the kind succeed? right much it's growth of very of raw new of that is, of the way. And in as opposed outliers. then the the How in probably COVID, and we of think this I on to together. the diversified, in on how overall have based, relates the approach, a a But to we're larger relates us more of have the to organic that midst How focus more still it size strategy really overall why much going efficient doing

we're us and based, strategy. you getting outliers, continue Wes, system in cross the some been closing larger Fox will repeatable, can really likely work look of the strategy. we've really we the But be in or be little traction And those selling be scalable. additive walk the to and to of areas for think broad where a your have developing closed that's and you through we overall on overall key on what parts whether success, it’d to other bit years, having – an maybe have rehabs team overall the actively as approach, past We a those

Wes Stolp

products is was days the Stephen. our let guarantee. Those were problems to to competitors our sales out prospects, understanding back We'll you communicate allowed knew first be likely team in fast uncertain see pivoted of on wasn't. where to – and QX, some clients few other problems get was marketing in to QX this validation surveys, success time. of doing give market of Rich, new And which the marketing do of maybe we I a and together, think working to together. ahead quarter, color COVID think great and Hey, marketing sales approach for amongst our they it waiting able those it come working me execution not their would a I and fix And our key and we that of this services of fast And needs. really that when us

core RCM a other the fixed variable cost. of of us. typically fact then place think cost work think tailwinds, is the care, service, that the from that I the away a the not When an RCM value and done services are about the that some there's economics of helping think I props you where

this helpful help We I base products to value into to opportunity with And them, has. think see up them how mentioned into go going future. to the environment. that's now, only now and MTBC the current bring the back And that in prop campaigns educate but that that the on a acquisitions services the additional now. right not client we're of that's and these embarking on Steve companies upsell then tremendous family

one clients very on been portfolio. now with to campaign it's every relationship under we've So upsell laser create focused our of and trying that the

Mahmud Haq

this Rich sorry, is Rich, Mahmud.

most Indian and this. point Lanka very fortunate than last the our Pakistan offshore location us last that came Sri because of the We've because contributed helped been been offices, and locked answer second that face the locations has to who significantly of the being down factor to people quarter Just on the That's of has less challenges the this impacted India our over. in increase sales.

Richard Baldry

too selling or people's challenges we out, scenario, have any change acquisitions. the COVID know willing know put given maybe more of down, are I pipeline whatever want early affordable, maybe when to way and to maybe have more call an any expectations to it's it externally? in to potential the Okay. how you acquisition – Thanks. people in And you if the seen, pressures, look consider, about valuations

Stephen Snyder

And but right, – with the Question at next the develop seen be you I – of Rich, things it'll I end how that's think and of what to guess far. so you're see couple anyone I interesting quarters. share day, over the we've can

about, we another diligence an and due about comfortable shareholders acquisition, growth our be our excess a think first and for from able to Sri done United be that with able ability to when like the feeling using capacity we very discussion a that in overall clients coast-to-coast existing And employees COVID transaction. the technology, and we acquisition our plus or our one the and to that Lanka able add the that able helpful type also believe if using Mahmud and Meridian be four the think position five ability even we'd be running. evaluation. I as the using ground three, team us we'd and serve said that described States, to of able to of one hit closing workforce go were confidently be at ready in quickly to all in distributed our very step terms a from in I to and to was perspective value don't be if Meridian as to think believe with Pakistan equals throughout overall that achieve continue to through of and to dynamics employees I organization was the enabled needs to

had holds and for we to we've look XX but what that's the healthcare, true, were which think right I XX, landscape talking space about, that we fragmented. that, today, candidly the highly consolidation. is They're years, RCM IT back same at than last remain coming thesis the So, maybe for our thesis as a even longer

term, five Whether when able to was increasingly remained is think anyone's integrate years or now, or guess. them. a and to about pace, tell to us the continues them years we're I at right we're is – acquire transactions you long than point broadly the that to team transactions able able or acquire be What year ago. valuations that's can levels faster more I at it to companies, just lower more larger that to to we able buying I have with is but the even this largest forward, a associated think true that expect from we XX remain COVID, That element two today. continues financial We gotten experiencing to be companies last really attractive three good we are more we And believe we And the case. CAC the move – the as today very as at in it distressed. the as continues of think some would closed customers history, look have even we today. the reality companies we to year, two or than get be that been obvious – to to think where we our

Richard Baldry

Great. Thank you.

Stephen Snyder

Thank you.

Operator

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

Marc Wiesenberger

banner a Good the businesses. run expectations of rate morning. integrating contrasting operations CareCloud these of Meridian, granularity I'm go-to-market little and you maybe more normalized terms provide ultimate in strategy MTBC hoping and can the for the under unified

Stephen Snyder

Absolutely. – that different of Hadi also see maybe little operational differences at break sure. Meridian? maybe from we couple a into be the about some at happy similarities you to We'd and bit perspective, operations, a we an of the and would perspective of that the can and CareCloud speaking For sections mind from

A. Hadi Chaudhry

Sure. you, Steve. Sure. Thank

second be it. technology So will operation one the is piece and of then the the side part

– things from when – standard the the has claim to So BPOs is BPOs processing that which are be comes third-party there to standpoint, the it are transitioned. there RCM, some involved,

the or that's we contractors what they involved. third-party that same seen was CareCloud were Meridian, So whether have

transitioned So work that being MTBCs to employees. on is

process over or question, use or skill departments the already or either already client the – as And we side in such that work. over I and available, have of has the that taking success as earlier onboarding follow. mentioned CareCloud relevant set my taken team our it specialties, are the of that last to specialties areas there so the So has it, in and team process

some in the practices. So good the talented – that They with there onboarded. were are with solving leadership we leadership

on the improve the the the utilize those the to those some new success to those those efficiency surveys, We From way onboarding example. and have standpoint, the to started us be closing implement of then across loop client procedures help to even conducted, the needs things. all enterprise clients, effectively for of

So there started has one about the to standpoint. take can But roadmap are many the comes our technology already taking from things, some over. it operationally to side, we When team talk of. care are

As R&D members. you IT, know, we team have about XXX

the include integrations versa, on of over members elements already take we the – team adding MTBC’s current between MTBC the to into between modules software interoperability those those to have the to and Meridian CareCloud more current example, So the systems. system, started working different vice to platforms, and system for platform, to started

can So is that started feature help of integration – available one the of platform, that look work that on one not has one already with to team standard a also and if at kind utilized. our additional to on provide be feature integrations platform and those the

platforms. example, we hope CareCloud here, of I it using of with can Juan, in answered, in application start end answering any example other as there Breeze, fill patient the patient the was or take front For application, Breeze, direction the I'm the gaps I check-in right I please. question, if just can you across it��s a

Juan Molina

question of kind No, a sure. When unified if around I'm covered unified banner, a more think not about I it. platform. kind think we sure that your you was specific of I'm

to want you do – to want that? you clarify if So

Bill Korn

Unified is goal, and maybe the then how platform MTBC evolve. of strategy of, going kind that at to kind X go-to-market a Sure. ultimate is the is or

Juan Molina

go maybe – so Steve. ahead, Sure,

Stephen Snyder

no, will I No, then go in. forward Juan, you and please, jump

Juan Molina

kind really when known platform. as right. look practices very we're medical services it's clinical think exactly as solve think what where maybe kind that strategy the software-as-the-first. to overall and strategy. mean, kind And our comprehensive at you you needs you you customers we and we go-to-market And important trying financial curated these about solution core we where And sets. And patient experience what mentioned we or first a are of step the where really categorized And we are, to you really day Breeze, general focused core are think workflows, to and Yes, through across of categorize so, at a systems we at practice of company’s pillars understand address across is product that Hadi framework power think our know, a look meet we product the help on our take the high what built kind their about as practice of end Okay, four product level, problems which traditionally overall when of our as trying management four great. think about as these think these patient pillars. EHRs, back services the about I our strategy management, and of how they're portfolio,

customers, pillar on-demand Secondarily, we cycle is our then enabled which you scale to Mahmud think have so because core to about kind this to we our as management, forth. second as own directly this would workforce, credentialing the global distributed know, and business. at able you that technology and and core partners revenue capacity of of these sell coding thirdly, offerings, think we We're workforce, enables right. a And service mentioned, have, all

productize combination a and or perspective, MTBC platform capacity force. around that that's then And perspective we product operational offshore go-to-market lastly, a extension. engineering from And where that's our FTEs So of both offshore. a

problems. the or you that either are These by built are specialized by platforms. and about built so our analytics connect or niche these technologies think that microbiology very are applications that forth are us, apps industry whether apps So mobile that serve into

of that different market but products build or capabilities, continue either us and this this go-to-market products and of launch and one, these are pillars product incredibly as to customers what mean products our our allows appropriate development aspects this serve under or services specialties. continue customers to when for markets, win line. our that of for we're specific and pillars segments, combine own breakthrough next to enables the of these which behalf the provides to and us this specialties all and solutions way us acquire strategy and what companies new on the we'll we various unified many different applications across they and expand kind is continue we'll released continue end currently in does service multiple that But to excited of into So to we collapsing key very by segments may framework the see up approach naturally with that these unique and these these over generation solution solutions innovate time. sets to we But and

Stephen Snyder

I has team support Marc, we the six been the particular, and we're has in of the our our about months. quarter put through on has out integration And been really to we've point expect sorry, really brand, be – reality a we of and our believe was times, during efforts the one just that and just on during knocked really when going you recognized the COVID-XX the whether professional experience lives. step for all We them back think the stuffs point passionate to to way of unification, mention work we the potentially able in has above Juan’s by beyond, will would think would to or difficult to And to most especially Korn’s our many we that the that gone regard bit support pulling moment. a clients. has and clients believe – really of during products kind about second with it little about as last And has – really focus five,

We right overall And of the that's relationships the prioritized naturally that extension by and just we've enhanced It's our and customers equity. extensions additional our so as think clients. holistically our we've naturally our done generated just with by market brand thing needs the goodwill. enhanced

take rate we've that the also revenue and we doubled been annualized a added number factor assets has we've we run beginning that a perspective since of on year the reality significant. if the then digital basis, of So that from in the

year, grown. these think we of of been significantly say, The year And team all base exciting and client together wow, about think doubled And the an it's has this second the half we the excited things as will beginning beginning roughly that has year. well. unification, during talk that also comes Our of be our we're exciting. to more about about And the is unification the overall to brand overall strategy one and half very our of things it like. of when product second the

point are of market, those sense So the on base, our focused our in very how team. least clients, one to And at as the client a is of reality much limit at time. a kind potential that there's it's we've been things that be think perspective the digested can a I from

we and those strategy fleshing So, we that point on thoughts where at think the begin second year half we're out during can of the our fronts.

during conversations tuned, those balance we're you the continuing stay to if the forward looking So year. really of

Marc Wiesenberger

you Thank final might development you. and June telehealth about and stickiness has look for May, late and tuned of hearing that. the offering? talk international opened indicate progress to just stay will the interesting behavioral on some early changes the then me. offering as in trends I telehealth one economy forward Great. the And Can of that a then

Stephen Snyder

to yes, we'd sure, For very do be happy that.

going and and of it's companies the we belief single deliver vendors, parcel truly pure who be from comprehensive the ultimately can comprehensive really provide of across a continues or part healthcare usable dozen probably the years, leaders off more to clinical continues a playing and integrated move throughout like. generally the plays system particular that integration to least will payment can workflows that is you healthcare broadly prevail to market or perspective, as integrated IT broad at and space that more in our they As folks in see game integrated the kind like it enough the or or healthcare on market, long-term that from complex understand, product that business the by of have will more and kind and of list, of about a is the it's house, believe be estimation down believe But the intuitive your that's entire like. we those becomes the perspective, solution reality our followed kind we applications from perspective focus done and of who practice that to healthcare able the are the the long standalone solution particular parts go the all and workflow think be the a solution of a said back aspects we at who daily That greater time. XX exciting one easy it, that point rattle the a reducing office use and towards of the be were last a to the and provider ecosystem or clearing PMs portals solution enough, to when whether models towards industry in costs IT as patient that the the offerings overall

now like. on for telehealth, our now why comprehensive the telehealth we've and our an at solution, platform that of to of within that costs CareCloud include believe any and the talkEHR included offering MTBC come been component an no important necessary part back we if and So is included as increasingly standard we to which time some it has additional is

So is telehealth platform, that in whether another providers think estimation. leveraging platform our it's is our that ideally to integrated stay our providers leveraging here platform with or we

locations. just scheduled look Now, to if use less of actual than the providers look thousands close goes more as and encounters as XX%, reference we frame to the and granularly if for quarter, and are reference and the of of continue frame back beginning to X% from XX% telehealth. I'll of able CareCloud we at we a talk at care a platform, advance orders as use at are specifically ways CareCloud look for promulgated we beginning home scheduled with were our end utilization, We the and of of of of to and the all the encounters bit one to looking year, go individuals April all we then number encounters, our little March, a of to state remote scheduled that as regard be

as percentage And snapshot again, level of a Now to solution see would that we that as of are tomorrow relative more say CareCloud that But stay-at-home eight, telehealth the the all terms I or be overall use as telehealth, home, in like the to in I what as a when using seen individuals just seven, or was in of somewhere similar now. or no percentage height base would believe snapshot point from maybe telehealth, nine longer of the encounters is are those year roughly will our fraction time between the time it it of through what month high numbers it remains or whether was encounters still percentage. orders, what overall population that time percentage that at but is those our today occurring encounters we as look and a of know continue – a today, simply week to the through what required are the X% a a we've just that XX% as solution don't overall fast today times you reference. it's to forward, at and or it our is pre-COVID, it is look scheduled encounters another of larger at numbers of our that the at least since is in stay point of a a as expect decline. we are

Marc Wiesenberger

That's great.

piece final the much. thank Just on the development you very and international

Stephen Snyder

I'm sorry. that. missed I

terms the development… In international of

Marc Wiesenberger

you some have expansion Yes, or for had of think, there. to the international telehealth rollout, I offerings kind plans

Stephen Snyder

Okay, okay, understood. got –

also other there continue Sorry on about that. albeit the one parts are the to something couple we not be solution, for actual so, model be two what that the the and that providing but would probably like and make quarters it of from rollout to on about SaaS Difficulty] would that One a spoken will would telehealth and SaaS is like. relate Yes, to focused not care, only the a be that what see more there and we've for sometimes moment, a we'll it. in akin final providing companies be another the [Technical to decision marketplace component is

the we needs And sure were our and telehealth component of make sure meeting we And we since than that at. of all tied that the saw encounters worked and that CareCloud to there would So which on was doing of overall that practices things our X% shifted time out in to SaaS making was energy then to they rates time, on own utilization resources into them platform, us had making or second and fast acquired forward devoting – needs that and we what completely ready and rollout we none the could meeting where want as we the began foresee sure quarter integrated. of focus with be we almost. go focused resources a to COVID-XX was third quarter its XXXX. quickly rolling solution on was was our had that less year, the [Indiscernible] from is in during integrated January our in deploying like support that reality were and our the the just clients' a platform

right and in it So And other we our R&D make pushback energies, clients, way which focus, size through that as resources of effective part we and RPA, and was the thing to supporting the year quickly beginning twice do, to that we were solutions healthcare the about they than think reprioritize, that the the every shape one can so business managing during the would seeing COVID-XX. business our intelligence of have or existing the it that of think about patients where form is is look we that in be our of reprioritize one our about their we healthcare or we that providers, we our And RCM our to think think [Technical the midst international whether COVID-XX some frankly, or PM. more And our to again, the go. the of game final XX, make out as of We'll today think the Difficulty] of platform we had would component other be has that we to intelligence. terms U.S. of fact strategy. the the telehealth even EHR the enterprise of XX in leveraging in really the about that we level where terms estimate component change at providers changer. in today, telehealth decisions one rollouts where directionally rollout, providers seen. platform, are a We or we think And overall the be physicians at the – remains overall in been today, and

other continue to So this to really build we and to on have opportunity significant cross-sell platforms. the today

experience was been of progresses. more in as the we've about of keep the the terms What year We of strategy that that are able will So Difficulty] [Technical clients' meet we to talk talk one overall do how best now. future that the to needs. the things avenues growth we about that our that for into continue our rate doing

Marc Wiesenberger

you much. thank very Excellent,

Stephen Snyder

you. Thank

Operator

The from next Please National Klee with go Allen Corporation. question Securities comes ahead.

Allen Klee

that software can us visits were – new Yes, XQ? who going basis then much us business you. hi. that cross-sell, that doctor And Thank on Can why the value-add organic you for to be a for you're about you tell your think in was of down intelligence an little enterprise tell And how can the the bit you that? attractive?

Stephen Snyder

Sure.

the the other of Bill enterprise we've can the some be last to continue we opportunity out and being the terms or with solutions strategy intelligence and over partner with being increasingly the Bill, we'll and level, see the years, other with in an being to business more end then been partnering business doing their game So solution, way RCM in of vendors, enterprise from and of the vendors loop up-sell. to intelligence number or able to and our cross-sell able color that able volumes. round provide to win the From being able part really with business to objective level physician

volumes that relationship, practices sales but we a to as additional objective to particular solutions. be we the with some larger the intelligence ability revenue being to relationship an solution Wes and and able cross-sell it's from us And think during Bill, relationship physician team to then generating QX, the having saw where able increasingly you gives be and of groups our to color that regard larger the are ultimate generate with focusing. to which phenomenal So It to to little gives increasingly business higher are that a if targets, a able decrease up-sell solution is practices, the larger provide start that's and in can with leverage that please. revenue

Bill Korn

Sure. Thanks, Steve.

we of whole. the what a were what saw seeing mirrored country as we in obviously So sort

the to geography, By XX% pandemic differs February. time. forward of is in joined York, mid-June, about in that January, what in by I value volumes for conducted the Meridian more Washington, COVID during differs at May, in that again, first spread, during New doctors California, overall time exclude But example, June, was compared were differs we the decrease the in think over by a the XX% you the volumes there down the and as So New January, let's now to visits and the the saw obviously point volume April fast by Southwest. us in February, specialty, and Jersey, – decrease of was about overall our

I doctors out come have work country seen So dealing a gotten feel as patients with confident up. do figured things we’ve as schedule, more lot – have COVID, has a at certainly better how

seeing an the no includes that's getting as real and our doctor's they providing the well reimbursed, and Because the of visits. fee. if service, as it number getting us Now and what the is visits there's patient's to terms the difference the in patient in-person need, from doctor telehealth overall perspective,

of can in say, on level to and continue we're to as paid. So I patients telehealth long continue the little guess ways, get forward indifferent bit see I'd a some going as doctors

Allen Klee

very much. you Thank

Bill Korn

Thanks, Allen.

Operator

next from Research. Our with Mannheimer Please go Colliers Instructions] question Gene ahead. [Operator comes

Gene Mannheimer

morning. good from with do there many wanted traditional into and first you I on largest do for mean, half, the purchases all still what an earlier to you RCM of Good would I your RCM Thanks. opportunities Or progress Thanks. on encore? the your question In consider Congrats your are spot two an markets? in sweet the on here. acquisition ever like strategy. get other veering words, market? in new follow-up large

Stephen Snyder

a that to enables just really acquire, makes continue Thanks, at to rates it It's a on are for organic a to retain we've acquisition. able we to sense growth continues of at. means do at unheard we able cost enabled acquisitions, as the great very win, customer strategy us then point, in that with efficient to of broadly acquiring focus be be grow the of us the experience on us if believe is two-pronged positioned that grow your next a sole step think talent to through been for why to be overall focus we a expertise Gene. able a for enables rates best way growth. we And the with to for for heavy our us space to back or it, next and basis really It also talent, think The customer be hire organic acquisition. approach; we about more that strategy and what's moment, lot our acquisition is grow believe to strategy, a has about strategy consistently the

So estimation it's before our to way a team. really a Hadi phenomenal to as world-class alluded build in

through this it's trying on the folks really you for of strategy. I on In other through and fact, us, and board call we think talent we've to our even think that winner. And if been a build bring able that that, means us, hiring ask for about a the having team been down to think having leadership – to attest hands

point. approach we're target forward more every exciting as on creative capital same million, this million is a year. continue consolidation our think pipeline to But first forward, We we it to believe line the the And for And busy but and perspective year-to-date. we of as that our bit about continuing think of obviously and was. been to cash, today, other $XX and a of that everyone ripe kind that move But $XX companies to being move add ever means on if ever use companies, credit disciplined of – the sit as that think the and we I the patient have able if that, it's two publicly acquisitions capital. deploy So are on acquisition in I today, close acquisitions half identifying it, largest occurring acquisitions of deploy really we the to we we'll reinforce don't here you're perspective, untapped ways we capital is only actively year industry to to I today, acquisitions. again, have from virtually the work and don't than and before, best appropriate obviously disclose from think about assure right,

interested see the of industries, so having market, as in a not. healthcare, believe if excited we've whether company our where whether with IT, – that ever opportunities particular excited than we're more expertise. we're we value our to companies our the relative conversation exploring we're terms we with in been team, So or our not to not related holds be the thesis that with can find they we Then in or extent or technology, and RCM, we whether can add

excited. or and whether remain be opportunity where quarters So six but it'll in overall or quarters will two terms bullish very only quarters, set, of from the four tell that we time now

Gene Mannheimer

quarter? is Force quick good, getting how And the second Very much I follow-ups, Thanks. know late from came it's just MTBC Steve. in revenue

Stephen Snyder

we ACV But break a don't out roughly bookings year-to-date, those that, in those between of Force. XX% relative a about again, QX overall out is what the traction up if lot of nine but you tell Force. was bookings somewhere break of don't that, And that something of think from can about that mix, revenue overall a third months of minimal. we And of in Force-driven we about roughly as share overall, during ACV increasing I that. on offering it's the separately It's I tell ramped they're think MTBC separately, were you actual about getting recognized weren't the terms bookings but we to as revenue of We terms can ago. we're revenue MTBC an perspective that up, MTBC

And revenue. of relatively it's the percentage zero of increasing. small represented that but it percentage So still, much overall revenue, than it's a clearly more today, but

Gene Mannheimer

you. Very good. Thank

Stephen Snyder

Gene. you, Thank

Operator

This concludes the Blanche conference over the turn question-and-answer Kim session. would remarks. I for back like to any closing to

Kim Blanche

your to care great you all the to today forward have you speaking and in again like support. We who's future. everyone near look to hope continued joined day. We’d a thank for We take

Stephen Snyder

Thanks everyone.

Operator

This concludes call. conference today's

disconnect participating lines. Thank may and day. you your have pleasant for a You

CareCloud (CCLD) 13 Aug 202020 Q2 Earnings call transcript