MTBC - Earnings call transcript Q3 2020

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

Operator

Greetings, and welcome to the MTBC Inc Third Quarter 2020 Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kim Blanche, General Counsel. you. Thank

begin. may You

Kim Blanche

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

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

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

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

our and the download call, measures. refer by earnings these Please a telephone, third finally, site, measures Events today's the over And visit to presentation. to GAAP Officer presentation. press Snyder. I'll with call you performance Relations For our may non-GAAP today's download of want dialed that our Executive call earnings to results of financial into may reconciliation certain on to Please now third Investor financial release quarter turn for anyone we who Steve non-GAAP results. on XXXX click XXXX Chief our quarter to refer And announcing MTBC, Steve? said, the the ir.mtbc.com,

Steve Snyder

joining to XXXX on Thank our earnings opportunity you, year-to-date have our privilege an outlook. quarter discuss business financial It's performance for us Kim, our everyone, and third and to call. year you, today thank review full MTBC's and

quarter. are record-breaking very pleased We another to report

We care with and to tech-enabled have systems as accelerate we've solutions. health health empowering continued providers on remained our focused growth our

are quarter, new and third report over to an increase year. of represents This last pleased the the $XX.X record XX% quarter For of revenue million. third we is a of

than we XX%. adjusted year-over-year a continued last $X.X have for million, the a increase year. was the to third of quarterly have record growth, we higher our MTBC's also our million, $X.X to income revenue As XX% EBITDA of velocity net record a adjusted Likewise, increased quarter accelerate

a first nine performance months the of XXXX, in first to for of MTBC's million was our to the Turning compared million nine revenue $XX.X $XX.X months record XXXX.

$XXX exit ultimately more of than with to the million. We annualized expect revenues year

in of for quarters adjusted first the million was three this Our $X.X EBITDA year total.

new resulting fourth in entire year-to-date expect quarter another adjusted alone EBITDA, exceed We handily high. to record our the

health in the not care to their heroic sincerest than have every the others lost appreciation efforts care, for to frontline administrative virtually back roles made sacrifice, crisis. I exceptionally front U.S. X,XXX or time More of and by heroic lines Before health her our able the support some to express turning our feel his this sacrifices We be has our on care professionals investing nine focus health clients their firsthand months. year-to-date during to have than COVID-XX, more business care his to within didn't beyond who last again support during or base. performance, sacrifice. small to patients. providers while if to lives same ultimate I'd remiss our risked the own We've were pandemic executive be life serving And workers of and more health before serving the mention ever who privileged many her made seen provider very these the provide truly measure serving client serve to this energy our

of seamless, previously or any to one other their that devote enabling we've physicians day-to-day while of delivery to with mentioned, many clinical to tools, and by analytics this patients charts, mission access the ensuring in support is check providing focus and touchless are practices. their appropriately empowering of cloud-based the and us whether reimbursed, revenue As customers, during pressing ways time energized of we needs support it's entirety trusting clinical our it care support enabling scheduling, truly cycle our our telehealth providing to the we

COVID health operational, upon health we to have on appreciation, positioned financial of support work. better privilege serve tech meaningful of each wave providers their been supporting are they are care providers an for and infections, the most from we perspective called front and care our we as these the believe lines. very our nation As through never being Truly, to of deserves grateful this that them sincere support

of strategy, our focuses with exceptional involves synergistic to businesses acquiring Now that customer on which let's customers. teams turn and great our the a acquisition minutes discussion our wholesale growth for segment few

we acquisition at first During we CareCloud, time our described recall may quarter, you acquired which the date. largest the as to

an affiliated yields company, acquired experience successful equals the plus increasingly and Both one add and strong with Medical Meridian thesis. its that We our to we even support us During and automation, model have has in an a acquisition, To pleased space enabled Meridian records, digital timely solutions, than other management or believe electronic hone predictable that any have forward and announce acquisitions move larger to experience case more enabled and believe that principle. outcomes. patient CareCloud we one three we quarter, we our assets, a business acquisition, to this compelling to second exemplify Management were entities. process strong including of have robotic businesses scalable health both need And a that highly to RPA. enterprise-level analytics us

to experienced they And on our team's integration in strategy. play a us compelling. countless achieving Many capable Hadi are customer objectives. even the provide we and say onboarded against profound and can more numbers stronger playbook of operations, success organic some our we pleased growth, as today. talented, about growth important it success quarter, shortly see that believe will really and also additional fourth are patient members make report even these As And of reported our folks. R&D, of even more in as work transactions, proof executing areas. will more become to already you of our They've roles our to a detailed helped who I'm we update begin result new individuals passionate, and contributing and great have other team support, these the

to now Let's organic growth. turn

one and growth. compared discussed we've as and the than organic much our business as marketing may scope already the that XXXX of all organic was recall during call, our of last And we we've team invest As XXXX. new of closed we as have years. twice earnings our Year-to-date, in sales continued to significantly size more you increased to strongest

repeatable our more and and bookings more more scalable. our today, systematic, Additionally, are is more diversified approach

Our us high more tech-enabled of with prospective us than far the to optionality of and pricing a business our do far clients allowed solution solution or existing solutions less, has ever set allows positioning to offer Moreover, practices better and of us before. expanded model our compelling degree flexibility. to a wider meet to needs variety

As to of acquisition revenues. an cost, annual an CAC, our continue in we target of less of average internal managing or or we recurring investment XX% customer are to organic growth, increase anticipated

our organizations year in low environment we and unique we organic team tech-centered context the during by model to and approach our able believe ahead, to of that that As of to to a our scale growth. will we CAC velocity global growth continue enabled marketing is be the continue accelerate the sales

too we've made as Just platform has acquisitive so in growth our in evolved significant strides ways. XXXX, during our organic and

thousands As of across receive of facilitating Hadi health more drive before. in of their describe our providers and is are clinical more that ensuring shortly will detail, solution while broader our care ever capable It's services. appropriate than relationships tens excellence for patient-centric supporting and clients platform helping reimbursement country. the our set today Components

revenues grow to outlook for our year-over-year. As that we positioned XX% turn XXXX, greater to we believe are to continue we than discuss by

or While more by time, our adjusted increasing EBITDA XX% year-over-year. at same the nearly

or We a at expect million million. annualized a historic adjusted XXXX greater, $XXX $XX to exit together more of run than of with run EBITDA revenue rate rate

exciting Hadi. to record XXXX Hadi? I'll We be expect that over of growth turn and floor margin now year the will expansion. another

A. Hadi Chaudhry

be so our Steve, continue We encouraged thank performance for quarter our you, far and sentiments. joining Thank call. to echo wish with XXXX I indeed you, year. everyone, do third this on us earnings to Steve's

with make and in the that our have Following more and set the that strategy our industry's believe of we aggregated to and precision Steve's capabilities what acquisition disciplined ever, believe market. competitive suite up for our up comprehensive through we comment, it's cloud-based robust innovation we that of a apps software than for one and our now, we us on we of drive with practice breadth core depth BI our continued such our the services, These most experience us underlying systems, we these management business services. proposition It product medical robotic expansive management bots the but patient and believe, only success. our isn't have platform deep record services value to additional with offerings. electronic technologies, market automation analytics our management now solutions cloud-based portfolio, highly and coupled process solutions, unique, revenue the cycle Today, as go be business

with and Many folks and our serve. segments our have of are we how product Our asked us solutions today year the providing portfolio contributing different to success map solutions strongly growth. us across record

serve wanted here, At date are detail flavor health while and in space. complementary here, While of we services to give won't both wanted more to specialties system get products a go-to our others you expansive and different into to suited specific and the markets level, segments detail we we a high our give ambulatory to offering.

towards will our such experience solution as management flexibility geared I provides product build in single mostly a And something greater small anesthesia. platform, the suitable each minute. more segment, products segments and future specialties. portfolio messaging can segmentation discuss excited multiple handle services serve product, road needs and specialties map about is to marketing for where a us to are our market allows sales level ultimately, example, of we across For appropriate spans while solution patient and medical And segments. our talkEHR across customers This Vertec synthesize meet for our and practice their software our provider, is the CareCloud are. this view for Breeze and they larger our market the

to expanded core has Management I and in As addition can Medical we technology-enabled last software our discussed and serve. markets the quarter, specialties now services, Meridian

We be BI. our the with platform, about enterprise-grade business now opportunities intelligence continue we have to excited Precision

just to this to more been few have performing tool market a work moments, to We in integrate will the we the our and this solutions. broadly bring discuss

customer opportunity an within base enterprise Additionally, of this continue is base we go-to there to with and market current effectively this installed upsell enable product accounts. tool, larger the believe our our potentially to

our With these capabilities and automation to the our our actively in process systems we working efficiency been have Microbots, productivity overall addition integrating robotic on while drive our reducing leverage gains costs. additional into this bots, of and

the past at quarters, Over have and of initiatives. exciting globally product hard across engineering myriad of been the teams different couple our work

been or sales our technologies and focused additional opportunities have stickiness, We to pipeline. customer extending new integrating cross-sell drive

leveraging same talkEHR We have for and taking that while platform. that an of proven one Precision the well, and of within us BI already RPA drive example, Precision components Precision that thread, scale. working the has visibility currently to provide internal also valuable, deploy been Along with testing also additional and incremental systems our its is and with is we hard at incredibly will operationally even systems our more our related to BI core microbots largest thesis this efficiencies internal our work are as customers as will integrating This BI operational with capabilities.

one our be experience are all solution. early We the This under are of early broader is users of extending in patient future. trends. to more the award-winning on unifying still also but our done groundwork Breeze here, There stages and our work for working management to apps patient strategy lays experience this excited about a talkEHR platform into Breeze the we

about portfolio look We customers. with forward service products innovation horizon continue we overall our you and ahead. to the and We of providing have some continued our updated our and be product specific sharing the innovations you behalf months exciting progress keeping excited to and during on about on our strategy details on our

We gears. update transition shifting acquisitions. to our Now wanted you a provide latest on

incredibly We continue the the services team and are members and to of with products excited across talented be company. expansion the continued by our portfolio delighted

footprint will We services corporate closely to like the functional future. in together and we across working continue client to to how into our We teams forward this gains strengthen are to how R&D. look as overall huge scale see unified professional success, continue our continue areas operations, seeing

recent continue proven is to to As great at Management, to operating our Medical integration regards reduced XX%, our Meridian progress we already have and than accretive. on strategy. costs CareCloud, most With we acquisitions, and now it by make more executing CareCloud

margins business This shift off terms with completed expand of onto third-party offshore continue to large-scale In accordance team. our we plan. Meridian, the process will have MTBC's help of our operations outsourcers virtually transition us in

year operating levels share part As that during excited ago. to as such, by already MTBC. from to one Meridian Meridian's expenses pre-acquisition full reduced first of quarter accretive its we have XX% earnings is I'm

going has work proven issues risk efforts successful. well, While is also in mitigating COVID-XX our company to and related integration continuing our

the peers allowed advantage by operationally this the experienced dedication without industry to that Financial This pandemic. were reliant heard level heavily manage personally like now vendors that we office. allowed was as Chief U.S. back across to Aside our their fact strong worldwide would strengthened. remotely and even our deploy workforce strategically in needed our mostly able advantage many mitigate We headwinds to worked that we us are global volumes global campuses the both overseas pre-COVID to Bill? continue employees strategic turn floor I disruption further have be workforce, of competitive and distributed back ensuring us Bill third-party smart to will from our further to Officer, thank many here that to our and produced the believe work. again have I that is various levels, work even to over on for by to Korn. our our

Bill Korn

in nine Thank This us. you, XXXX. of months increase of first first Hadi. Revenue as million, nine compared was exciting for an XXXX is XX% $XX.X the for new of the to $XX.X an record months million

ever, Our revenues revenues any of MTBC's organic growth were CareCloud increased and our year our full history. months largest velocity during this year the drivers first of The Meridian, acquisitions of exceeded two of the nine three deals and in growth. the of

of of the paying during nine first the quarter is or record months XXXX, marketing, million, sets Our of $XX.X additional first investment revenue during increase X.X% third new off. an of XXXX million to Revenue XXXX. MTBC. and revenue sales from XX% was for from in a of nine XXXX which the X.X% This grew the of $XX.X of third for quarter months

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

net share stock record adjusted Our same attributable of in XX% loss during an quarter net the to share, into the on quarter. was quarter $X.XX common the compared net third which $X.X increase dividends compared Non-GAAP to or XXXX declared per $X.XX period million, million adjusted year. account of a $X.X increase last of income per Non-GAAP for share $X.X XXXX. net third the to $X.XX was earnings million per an share-based was GAAP the adjusted income shareholders, per takes during preferred of $X.XX loss

after two and purchased return MTBC's the June, quarter most offshore was the which after replaced and we as purchased levels. like the a It give methodology, cost We which in savings full reflects team with issuable MTBC under they in XXXX the global first purchase is an these Meridian, which well earnings to as outstanding Our quarter workflows update share, share also quarter warrants. $X.X sellers recent U.S. adjusted proceeding Meridian. in $X.XX compared and visits receive administrative our diluted earnings for January, nicely life shares a outstanding million that subcontractors record warrants, major per excluded exercise followers adjusted reduce from Veteran for acquisitions. represents a of have are pre-COVID-XX combined was MTBC's accomplishment. burden positive revenue warrants at in million patient assist know was equal granted CareCloud, CareCloud and on total reductions in are levels prices If you the streamline use two near employees CareCloud our so EBITDA. to a can as of anti-dilutive. the onshore was of to of an between was evaluating acquisition earnings with stock increase common both I'd the of using for standard have were of all computed $XX upon investing huge some during we from money a and and The cost total the team, subcontractor's the is sign last follow This million, that our XX% the and stock The now which development, per We the share transitioning are product we GAAP $X.X at future. XX measure, a to of go our positive were a per warrants exercised, client a of for essentially and the XXXX second be record per shares the the prospective for of introduced MTBC's income EBITDA the allowed the $XX and the of on life quarter. diluted of EBITDA Adjusted reported paid cash $X.XX In fourth third number Meridian own quarter CareCloud quarter diluted use in to acquisitions. net to share. shares not-too-distant It would of from operating the $XX significant EBITDA us to that by proceeds, loss first non-GAAP GAAP focus these cash of million employees. us year. us X.XX which a EBITDA operating we for new to third down to common and what XXXX, same to $X.XX. our and but and the offshore adjusted exercisable three-year of record during work adjusted breakeven adjusted may share two-year approximately was earnings the the the of shares second third To third quarter, management restricted we new cycle allowed experience. consecutive normal these calculations in-the-money XX% revenue from is adjusted our period returning increase routine earnings considered effect to Adherence approximately adjusted wound to in during adjusted per Adjusted in stock non-GAAP warrants XX% are units. both shares, outstanding also of quarters to includes end-of-period per our reduce share a technology warrants income GAAP the half and we the to

did down for third we contractors. wound quarter, their the as most of During same the we Meridian

the to position CareCloud after be our our started fact was purchase. after reflects one see which quarter so With closer This expenses during a was was the and you accretive The first than fact the acquisition a percent first breakeven may smaller that actions Meridian. major taken, we've recent acquisitions. other to during quarter that in was in decrease Meridian's the they that a earnings quarter accretive time the third already full

before this they slide, began structure of cost from measuring one For we're Meridian's reductions. expense the year purpose ago

looking who MTBC margin achieve fourth add to are During at our goals. we additional global us experienced ways our to quarter, relationships deploy could and help value even employees more

MTBC see continue As which they to we benefit in expect of another often our the full quarter type to August increase reductions a me occurred EBITDA fourth significant September, of gain reduce quarter. in ask of and margins adjusted you expenses, the the during generate. expect July, Investors should to what should

because practice better you and at depress results our way at four The segment business. and million results buy the is segment, helpful our to can up or typically management to our XX-K for look regularly look annual to very XX-Q quarters. profits excludes to on Looking Healthcare these the businesses, additional our businesses focus IT isn't quarterly of $XX in so note which $XX million we

management. over return You'll XX% That's consummate quarters, have a XX% a margins few a see to we reported margins to revenue revenue fee, our margins times, than software major to acquisition, our wring we you out or see to do another hit as more expect duplicative well SaaS next acquisition. cycle as pure But half should bundled a unnecessary gross each until of but several either gross costs. we our as and is that because XX% up service including take large unless of time we the

acquisitions margin our Meridian for CareCloud is our EBITDA estimate Adjusted of profitability. XXXX, overall a and Healthcare QX adjusted of our XX% this business IT before Our year. of good EBITDA in was

margins see QX. as to many our And QX which we've increase XXXX. taken already and steps XX% that mentioned, in You'll it returned previously during will I

from So perspective, XX% or XXXX during very my is to returning more realistic.

cash million $XX.X Bank September on Line we drawn with of our of XXXX, Valley approximately Credit. As of Silicon nothing XX, had

which A trades the also ticker Series to common our stock, on global preferred addition we market NASDAQ the In MTBCP. have under a stock,

is at perpetual, at share. stock the preferred dividends it And at of $XX cash while option could redeemed pays XX% monthly Our per rate it our per be year.

our represents to for fiscal $XXX paid the of July, consecutive XXXX million XX, like guidance $XXX to $XX million which XXXX. year-over-year monthly revenue growth year our by In we reaffirming dividends. million, XX December and year-to-date for we Even our our are of this we $XXX XXXX. $XXX leaves $XX.X year. to going will conservative running comfortable growth most in run-rate and QX, revenue calls of revenue at year $XXX now ending achieve million for I'd XX%, assumption guidance. least close million that approximately million million, with a raised guidance forward-looking of revenue us million full XX% $XXX We into This have to

our million XXXX adjusted EBITDA be year EBITDA million expect of growth for XX% We to to representing $XX CareCloud Meridian XXXX, to as the full $XX integrate XX% adjusted and over acquisitions. we

additional from EBITDA adjusted QX $X and continue integrating margin grew expansion by anticipate Our we Meridian. to QX, we as million

will $XX annual an million the with of EBITDA at rate more. end year adjusted running or We

now should margins acquisition if continue our another expect so next would from increasing to growth. floor investors for with likely be comments. Mahmud, the over our it scale, year, increasing course, Of Chairman, we temporarily, benefiting our would concluding major but complete I'll along reduce his most turn adjusted EBITDA to we revenue

Mahmud Haq

Bill. Thank you,

a we for their another be strong year growth support. position profitability. world, investors, has for fortunate the of XXXX customers employees record-breaking a and and We generate year in as While continued thank our been to very we challenging increasing are

call to the now will open Operator? questions. We

Operator

Thank you.

Ladenburg. will Instructions] Please questions. proceed Our the with first a be Cohen We question-and-answer questions with line conducting come Jeffrey session. your now [Operator of from

Jeffrey Cohen

which bit number. the Steve call for and your QX you've I a talking commentary about you’ve to up a XXXX looking in of top-line. of the a the top X.X% line rate, guess, case XX.X%. for estimate call year drill the were year-over-year, of higher about next you that be into midpoint for run annualized But million, when about made growth the on little assumes guidance a good so be guess wanted that's $XXX $XX.X our line intend look talk to we're have. about relatively going an of of we plus what on got XX% flat, it some call would earlier gets aspirational as fourth portion top the be which assuming to somewhat Did year, So And if an in than the I currently out I we guidance, But XXX. at the to to firstly, quarter million XX%? you it, that top-line, that and would some

any and commentary thoughts So flavor or any for us? there

Steve Snyder

sure. clarification. and good question good For Yes,

year. about as we're about sometime compared the we're full XXXX we As guidance next the to some compared commentary Prior to performance XXXX year-over-year last. want if you earnings to to guidance of anticipating for XXXX. look maybe call and, for Bill, to terms of next our we're of revenue provide additional relative With during providing growth, talking regard what talking just QX to year in forward year-to-date and to year XXXX, this

Bill Korn

lot things control. we of we lot don't ball, crystal a we can Sure, There's things of and Steve. control. And I'd can't that have good question, guess there's say a Jeff. I a

always to But find upfront. for compelling, And those move know, to pretty we when As we no them. way you predict we're looking tend which those acquisition are on opportunities. exciting quickly there's

point time precise hard year for than stronger number been at we've growth look to really in than So it's at have years, this other last the this us several ever before. XXXX I a organic mentioned, give and say, the to how you has our think I it's go business? think for And we just grown been

be past, continuing much So a we that feature that investing candidly, expect in weren't we as in. to the

some us to good give upside. So going that's

the tuned story stay unfold. and watch So

Jeffrey Cohen

on me question I while quick line. you more have one And for the

and On and for Meridian. amortization million line the CareCloud includes $X.X QX. depreciation to I'm assuming both that

baseline D&A, on the the call any that future we barring So should new acquisitions?

Bill Korn

Meridian both and CareCloud. Yes. the definitely It includes

baseline. is have been it the finalized a our think numbers All of I CareCloud So good estimate with for auditors. the

use bit. us think little valuation numbers, estimate going little a so use can you firm quarter numbers I I working change good third the is finalize third-party third numbers the But still as The Meridian's But a forward. can to may with bit. think you the

Operator

B. from Marc questions come Weisenberger proceed line Please of the with next question. your Riley. Our with

Marc Weisenberger

million business demonstrating $XXX looking optimizing that top talk power about revenue versus to of another track kind the of on terms is current business mark, priorities earnings the your in major transaction? and that you can Now for

Steve Snyder

for maybe that. walk you through question. can Thanks Mark. Absolutely, us And the Bill,

Bill Korn

Sure. we we're both I'd do I our level, of acquire And be managing business. track costs. to important consider doing mean, a the even after candidly, at we've every always way a we we record And still out we at, optimize is at year aspects we time got those a pretty business, really to how say a there things. one business, looking But look good a bring that. bought of of

to we're which push flow. to approximate continue So our cash earnings component, going the does

So are to showed, million. I we'll And tell XX%, I XX% after be to right that we to going expect growth you good really much million you I year, number a change see we mean, we're organic -- trajectory I feel all, think we'll on now. that to rate we'll be it's even where but think as we acquisition, you that's can't move revenue all. all EBITDA XXXX. But continue I big the find a margins next $XXX growing that we bigger doing into $XXX at than could top next can line. work think nice at about that that whenever adjusted won't as the assume

Marc Wiesenberger

then And just follow-up. a

changed put compete maybe in to If for needs cohort? new to Meridian talk And this there deal? has and how to a is keep and about anything after the for you could place base larger be you extent, customer CareCloud, the that the following

Steve Snyder

that have a more question, big if roughly can completed from our the of country. the a give picture, think and little year as we're minute working we for bit a providers acquisition result with Hadi us perspective. and growth, Mark, customer organic back Thanks base during step we this for additional the today, detail But and across a XX,XXX

of and the the of solutions, trend like. solutions, leveraging on been years, upmarket year of we've SaaS variety medium the terms client a or roughly In RCM. developing for that going us as base, in variety, from of bit And we've more direction are get last with That seen, focus real technology and to this a which are solutions remaining leveraging the And larger neighborhood one on that base, somewhere XX,XXX into provide and our move solutions, XXXX XX,XXX then to overall the the the enterprise to is perspective that of continues an end-to-end that the both we've in over color overall XXXX. growth out driving sales few relationships, continued in But with with over we and that. organic Hadi little organic acquisitions a groups increasingly GPO through

A. Hadi Chaudhry

thank you you, Thank And Yes. the for Steve. question.

with much some the on more much changes specialties can terms is same a that just so give of other cross-selling, mentioned, Steve have opportunity the as at So bigger space-based dealing of involvement more only which the we many see now but so hospital time. clients, we not in us the

clients increased, into multi-specialty our significantly our relationship the group has have and hospital So improved. enterprise-level significantly

utilize the opportunity is us for have is opportunity BI recent some Precision which became also So groups, the as bots and us most us as tremendous acquisition. part there an such working we tools to those that RPA a giving of while BI the that with of hospital-based

Operator

with of proceed come with Roth next Please Richard Capital. Our Baldry line question. your the questions from

Richard Baldry

feels XX% incremental could it says year relatively backdrop, I two. basic spending, it in like in pretty XX% of on if you if to With that early do with spend and a year When on and much and it's CAC about of you the to organic how do pretty level, sort how highly some your that the around year. breakeven you accretive revenue the think can metrics is how still from think Because high started level, gross organic you margins minus you on be in breakeven about about year given very coming free first plus spend growth, or about in the that talked growth?

So capacity that what term? for about think really that gates how And long do you spend? strategy

Steve Snyder

question, for the Rich. Thanks

acquisitions. forward, majority XXXX acquisition If will we As like the the relationships through of look at move to we'd wholesale about we during the look coming think through our, growth our continue as growth totality anticipated and we see, we what gives of have of going forward, faster beyond, the platform advantages customer technology there to lack and we in us our team, grow global and rate, of that competitive our to a acquire competitors space we opportunities it are in significant who value. ability add as terms at think our the growth much

the If of really acquire neighborhood that we or accretive growth acquisitions. in to growth of, you're quite majority CAC through organic of of even believe these said our continue, foreseeable if XX% customers to ends to as for the traditional the by that, it's about acquisition, that right. will When believe, about that time. tech-enabled think be a can of So continue we X and team we future global if driven doesn't Having cost we continue can at expand, That's we competition a it's closer continue growing. that we their when cost-effective customer up generally really our being some we XX% we to have belief. way the speaking, especially our model grow, for components use think to the

In to all be that, XXXX, our much during invest up as So to achieving, million to about expense, million terms able growth of of to as of closing terms a in how we much numbers twice from We during this organic take in to this to invest year, perspective. $X $X and as think of to achieved of, quarterly hope twice double target order bookings them terms roughly much we in per we basis, have marketing sales have anticipate an time point on quarter accomplish this year, bookings. to in we'll those and early And the roughly larger of the a team perspective, than about the from marketing if and We what item, that. at up? be can you today to extent team. ramp a that will or achieve still equal, of candidly being really to think is I'm investment. ago that. good or And five continue We XX to the this. sales talking We times to things as can continue we're we stages think your today, that to think quarters about think six time our what it same we scale gating point was

days So we're we growth we organic this and accomplish. of can ramp-up excited to think we we're team, about of the believe in continue what the early

ramping that and who but up on on members investment, and groups being customers, now, into larger longer help additional we our As equal. much enterprise can increasingly team get XXXX, is all a focus sales focus candidly cycle bigger on us return things even

of to So that an we growth part continue be overall our believe will important strategy going forward.

Marc Wiesenberger

given it backdrop. because stalled results owners of challenges Turn is the curious external? should be macro sort stressed entity there are feel near-term maybe because you that the severe feel acquisition Just like acquisition slowed more reflective Or it they maybe has back that to thoughts of then, opportunities the by worth? do possibility may Thanks. of or that on any market, that's what the the not really created overall be strategy your

Steve Snyder

able point, team of increase. a -- to through some years a competitors, a value the vantage since that ago, investors technology impetus be From to us and opportunity giving we exacerbate favorable in company And add COVID, greater an that scale. challenges way trend spite regard see opportunities our acquire and since continue IPO our with right to the six the allows and continued of our the for our and you're us in IPO exit our of And look in a our increases models at the to have some valuation to business to COVID. it amongst to

So it as opportunities if trend only six the we those And rather an and this them will But of timing. caused we than to past whether is what of terms for is that, right see we net believe of and tell investors we more our time see Having By the said tell to perspective around. it in you're reflect the direction terms as from some positive can't a but universe indication, same opportunities opportunities. only also way we other obviously, over increases token, the the move acquisitive will continue the one or has the forward. right. not today in expansion any of that gone last years. the increase future, COVID

Operator

you. Thank

come proceed the questions Co. next Please from Mannheimer questions. & line with of your Our Dougherty with Gene

Gene Mannheimer

morning. good the good progress. Thanks, on Congrats

headcount us today? you have costs the sales ago year The on on like ago? Thanks. and look largest follow-up other acquisitions? questions how to sales and Just year Tell a did your marketing do And acquisition versus people before time customer your two marketing. a this what many

Steve Snyder

Good Thanks your morning, for Gene. question.

offshore on back we X-X we of team, roughly helping out us have sales growth. members on more with focused relatively focused evenly between onshore had So that If quarters, team and focused go split than it's today, team our our resources X-X on grow marketing XX FTEs members organic and growth. -- we and

that to would baseline X ago all using as would on much closings almost the say were be I forward or at CAC a point just hard-pressed really inbound. X, reference of the exclusively terms focus that provide acquisitive So to candidly, in moving we able was growth were quarters a the time, be because, X growth their organic really of and with

Today, candidly provides of -- I It's very strategy. candidly having we probably strategy structure. think suspect but our much and leads, in cross-selling our would practice new more cost in don't a inbound time, a opportunities baseline a different At time, market and of specialties. said in different. that, it's aggressive was base, regard selling customer that, point because and approach up to groups a a leads. But it's different inbound back cost hunting it that very that wide of So wasn't that and with our I in sizes, go handling the across was still if very different. together variety combination also with investment

Gene Mannheimer

Steve. sense, Makes Sure.

So roughly today. three sales to XX ago and quarters marketing people six

Okay.

Steve Snyder

Correct.

Gene Mannheimer

from if around implied volumes your year, and there. for Big how even COVID? next patient into are will I assumptions QX recover guidance, could, your jump what And

Steve Snyder

volumes, the Gene, now, peaks. seeing So roughly X% right below we're patient pre-COVID

before. of many our running essentially they were level the providers So at are same exact back

baseline of geography, will a little down. bit roughly by month be that numbers differences. are here, running Some where stay a sort are knowing are of taken that there we've by geography going them a month, to And they

country, not see is. to everything year, this before. exactly XXX% We happen return So for pervasively to we'd it it that but maybe probably that think of that's in love cards the was through seeing where the

it that at current on assumption the that, stays average taken of sort the XXXX. levels for we've but So,

Gene Mannheimer

from question, it is SaaS revenue And the as integrate model? last do a model that Precision then you sold on perspective can the what as more portfolio? type business there? of you with of a that your generally, what's And think or make rest Or BI, contribution

A. Hadi Chaudhry

let to thanks, question. Sure. add me one and anything start And I'll for the if then Gene, has see And here.

does was So one offer sell robust business an to The the tool. who, that not analytical way as practice with the other Precision tool it is our way integrated and this pure current Precision is Precision this the software is. MTBC, analytical have tool trying BI to that But a analytical BI, product go-to-market currently tool the either BI we vendors before not did management. we

on client good tool, out have started we that why of a other well. that's different working the just and are rolled feedback already have a been can as Precision our we of couple and the for client in reviewing and with So a working very analytical feature recently largest sorry, business been, BI, on offer. about they from Which they integration on the receiving our test one basis have side it

practices be the take take and of a and other medium-sized of the can platforms, the the with on can data, then in which solutions And the not on will solution we have can currently thing is feed. the software We vendor, the available. can one the just billing the the periodic example, do business literally intelligence reporting. other a keep for the the And tool It this solution. small standpoint, which go-to-market hospitals, their second layer a from integrate dumping and provide analytical So system, dump or comes provide can levels.

If add you want anything, to

Steve Snyder

vertical think, at right, go an it really, it day, is, does what further. the after, does is can Hadi And of what and high of unlocks expands that level, at the even I was mentioning, right. that's it a end it as we value think I additional that proposition our kind No, Gene,

Hadi product perspective I we're it go-to-market ways perspective. kinds from a think thinking a the different So about of really talked and through that

Operator

Our line next Company. with question. Bill of your Please Sutherland Benchmark from the with question proceed come The is

Bill Sutherland

to significant the here? asked. and of been have place And maybe you get will them at of kind take you could organic that with cross-selling think a look it traction portion think Meridian potential particular? CareCloud Wanted up-selling your when on, forward, in Most you how and be growth going do some of sense

Steve Snyder

a lot question, Thanks the Bill. for

So of if PBI today. as our we're that the We think XX% cross-sell roughly opportunity really performance as traction we larger increase many we think to And groups think continue have come using from exists platform. think platforms, bookings across move all to great that will XX% but overall year-to-date, upsell, campaign. it about about getting that an if platform, we forward, -- are groups the we that enterprise there, who on the exists the share, and

So it's RCN. an we opportunity to of to terms upsell, in be think, able

the opportunities to GPO the bases CareCloud even like. have and the We and Meridian and beyond other continue

to get believe as forward. continue of upselling, campaign move we will overall an growth we component our will strategy that cross-selling continue to important traction, So the be

Bill Sutherland

And maybe a MTBC's update impacting? characterize just to however that's on Steve, you sense force, Okay. want of an it, how

Steve Snyder

the question. Thanks to. I’d be happy for

think and delay overall three growth So we to moment a step just new we who's primary our for if are back a about for strategy, a MTBC, there baseline anyone prongs.

the traditional have We organic growth.

force. We hybrid MTBC is straddling then two have a acquisitive growth, the the and between two, those

an come team. see ways lot variety extension of will as to existing of we so COVID, has actually their an it with year-to-date, partner opportunities time that the to be doors different customers white of of at MTBC with help nevertheless, in force side growth partner But seller of with X We they're them about someone lot augment realize our that can be that we or back We potentially have acquisitions. has XX% MTBC makes -- their able roughly the represents from on force, about to growth were from the resource the partner of move to augment them, that before able was as like to fit if And our either other capacity also right aren't don't solutions share think perspective that XX points gorce. forward. been from prospective could continue perspective the a operate could be in overall a we if a acquisitions, able labeling side large the really can provide And to to through So from buyer. vendors to overall or times that that believe can effort for see restrained and life we cycle, win their work a we team, But their terms them. capabilities workforce they of with larger and through from opportunity companies I we again, to in their who that. I with asked a partnership MTBC think MTBC force. who where sense opened Today, question existing increasingly traction to COVID to have be capabilities and of in

Bill Sutherland

I'd just couple the anything recently, second surge the And last for his recent from circle a customers just related been very to patient that Bill you're weeks. so of commentary hearing thought back here significant most on really levels to that's this COVID in on with

Bill Korn

look of value certainly the submitted haven't of change seen the in are visits. the any at each that claims visits We we for And patient volumes day.

on are paid, the subject? clients from but you've Hadi, know, the looking don't I anything at heard So seeing. any just gets specifically what what not doctors if

A. Hadi Chaudhry

volume. that Bill, change not we looking as well, we to yet your at, in numbers the any are point, have the seen

Bill last the by it's been XX least down said, days. level, we to pre-COVID at from the XX XX over and somewhere stand days, consistent only it's X%, as around So roughly

Operator

come with Securities. questions the of questions. next National line from Please proceed Our Klee with Allen your

Allen Klee

us cross-selling offering RPA you and of an it? update your give on Can opportunities

Steve Snyder

Hadi, please.

A. Hadi Chaudhry

Okay.

And a And here. may and things add And few I'll start. want Sorry. for that, as again, question. Juan thank you the to

perform you of who for different that primarily microbots a done. can to calls, the was tasks setting. the the any For the these so we especially designed mundane microbots RPA, that were in part office just There's for the of teams, again, not Meridian give an that the a earlier office acquisition different, suite background whole the people are have by

pull there and if in medical of the there it is documentation, pull examples to or can to received, a pulled to to medical put the so and a is be, denial. denial someone those either needs look that It microbot can the at where out on some knows documentation next be it fax from from And whenever it that can for out, someone work it already it can needs the day. queue send

in So a over perform manual platforms doing there that is an maintain a up integration the of many and have API-based already way. set whole catalog set an instead for Meridian with through is The take microbots the can either integration these of today. tasks it it

that, can also doesn't always screen addition offer the In on if to we an scraping vendor API-based work technology. solution, a

number a standpoint, MTBC's like existing have integrate selling MTBC's the would market of platform of But was those the here? of successfully technology are the improve we we to revenue selling, in you microbots internal and anything that started into part drive, if to and Steve, have So integrated already as have to if add from the efficiency well. maybe, have workforce started as to it addition already of that the you the rest we else,

Steve Snyder

in Hadi. it, an we covered there see it you opportunity growth of MTBC's traditional also in market, doors think I to Hadi's opens I great. and to organic Force go point, No, terms And perspective. That's continue think from to

way what tasks of expertise otherwise augment would provide achieve. ability their handle. them and workforce, robotic vendors the extend looking that many achieve ability they're a But the for to them help for mundane also now can human of now to we attempting to automates to the processing, level both that So are other which their provide individuals capabilities who with have capital

approach increasingly, MTBC our the two-pronged us enabled on this So is in has Force something also that, we're to conversations side. and including start proposals

Operator

Thank you.

questions next come Please Dede H.C. proceed the from with of Kevin your line Our Wainright. questions. with

Kevin Dede

go it. you call especially been haven't you're to regard tools in offering. really gentlemen. in. feeding to there's branding. specific on me Good you your the regarding Thank Steve, lots offered perspective of Appreciate with But morning, market, on discussion for

you're with? larger to talk which many you're the asking market can with clients about you're address and you how them to brands, tools incentivizing at you're Given that sales that your which so force big brands looking to how go coming and and

Steve Snyder

Kevin. question, for Thanks the

in try an momentum the the of it's to We're in we make best role two it probably about more have QX. end our our with the QX, realistically, new COVID. to forward about to the is on the about play we things supporting guidance organic focused to as of may year ramping be later excited think different and other adjusted and groups of on granular so the talking but will the in we're this these to do we to we we focused details incentives, merger, brand hear plan part our clients that really track level We'll these to overall But focus continue acquisitions, history our And think now, revenue -- detail. and you're upon in of and forward. about we be managing It more that and will look traction, of going EBITDA. look I to we team, overall think integration terms we to two as continuing, the our we're In team record strong largest we're our think and our be But all -- the in overall that. so through again, significant we depending you'll of product and the on on perspective if absolute to sure you year about do be like, team. important think be our excited able talking really alluded forward strategy growth the if to marshaling right continuing early vision. segmented. growth to, From ensure we anticipate, do that up forward getting really really efforts move Right

now. medium- focused really team the at members grow into that customers groups. maybe and resources on are and sign are So incentive our incentive who the to enterprise point. get obviously, additional terms in businesses really one resources opportunities. of is to these able help to too right on designed process to And our -- core with U.S. identify larger-sized our of to up terms side, we're to able The exclusively those grow won't us structure high there in continuing relative team. of at focuses up are increasingly of continue that's the structure focused and the much overall detail ours being their the really of on rates as But who probably And to the we've to align this interest in been ramp

Kevin Dede

one, quick fit please. in bell Steve, rings, last before One here the

working or How what clients long, force operating assume you You now. just suggest a year, those matured? you're in briefly what, relationships this seeing. describe MTBC their Granted to customers the mentioned talk Could of more collectively just profile? on bit could offer experience XX have customers X hasn't that about there with you've and you I'd much life experienced little maybe MTBC the three cycle as those been have what terms But quarters say, four at point.

Steve Snyder

going Thanks Generally small. question the our able first to they wants opportunities, really to start not scenario, all, And in MTBC whether speaking, to for again, partner, say of for we're do be we the what force Kevin. we customer the can ascertain MTBC force or generally do. our speaking,

core opportunity displace and that that, other will that if is with workforce augmentation, being excited. third working with built-in the help parties about of otherwise to over to regard to So business small are And be three members you're be able their now, to time a group we're new four to thinking time responsibilities with that or start on right. take to we're into or generally launch. relatively We're official with able about speaking, over be to quarters handled grow able vendor right or to team. by But this team to that overall

growing in offshore work. team to growth invest force, that to see resources continue and be ramping that able additional to to and handle continue We MTBC our are up we

in we capacity excess to ensure be to the we as they place opportunities So have those able handle come.

Operator

Blance no remarks. time. to hand over Kim back any the to are this for There questions at like closing further I would call

Kim Blanche

We We'd quarter fourth again extend Thank great you our to to like our look have thanks to a XXXX who's on today. joined call. to you, forward everyone us speaking and day.

Operator

today's does conference. This conclude

disconnect You great may for day. your lines and have participation, Thank at you this your a time.

CareCloud (CCLD) 9 Nov 202020 Q3 Earnings call transcript