MTBC - Earnings call transcript Q1 2021

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Operator

Good day, and welcome to the CareCloud, Inc.

First Quarter 2021 Results Conference Call. This conference is being recorded. At this time, I’d like to turn the conference over to Ms. Kim Blanche, General Counsel. ma'am. ahead, go Please

Kim Blanche

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

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

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

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

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

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

Stephen Snyder

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

our providers strong to we're health systems As opportunities. another with solutions, report and and we to organic remain continue and a as technology team, empowering growth we on quarter acquisitive enabled healthcare pleased focused pursue

our to by growth. million. And $X.X by notwithstanding For largely time, generated revenue that also we to income acquisitive quarter, top-line, driven to million $XX.X XXX% year-over-year EBITDA net increased quarter pressure we the we increase as continue across a At same our of the on seasonality we XX%, adjusted entire industry. downward of our first by increased million. adjusted represents This grow $X.X XXX% first places revenues our year-over-year the

continuing and to moves of customer in market. growing our committed expansive to we're ahead, make base look we As bold addressable pursuit

Chaudhry had us. the the great delivering XXXX we're were about During unique of Hadi also to are the CEO. embodies the who market position for We and key of off us the fully our turn and for A. CEO, to our as our more promotion have I'll for track grow, team Hadi to announce we're to to some the the CareCloud roles and role name helping leadership a our who A. a in start market. We a in our members healthcare with Chaudhry. excited floor worked of exist over Hadi? side-by-side and first colleague now to quarter, more including than critical promotion to rebranding XX pleased and in record proposed friend cloud-based played years enthusiastically that believe opportunities role pleased that in we powerful announce solutions

Hadi Chaudhry

and our quarter new under We're we you, joining one, where you excited journey. find in our everyone Thank XXXX thank for call ourselves company's Steve, our about incredibly CareCloud. earnings brand

thank payment leadership, providers are all I position of. of about The worked say are leader team innovate, also healthcare we patient and landscape. are powerful and you our than to has new over including all like be Snyder to their increase excited members taking as healthcare $XX.X by revenue and health you targets, quarter, use models, on We who capabilities work will a our we've management million. our more automation robotic new a supported us deep business the to of last records, strategy. M&A work the a in base the platform, practice the discuss more Under thank And Before poised first Officer name patient of our I of management process by Chief day hard with represents the disciplined, past to us CareCloud significant drive service for electronic cycle proud comprehensive healthcare take embrace XX all across delivery into worldwide. cloud-based quarter by feat dedication know that well focusing grew Strategy This our and we're with solutions. and to industry-leading business help. we're team to and I role together provides times, first hard as healthcare being I to and CareCloud a Steve on to states. our to when systems, three transform would be revenues CEO us in compete his journeys by Today, and to progress more our easy X,XXX every achieve efficient XX I future enabled experience today better members we're XXX% help and our this services, guide at technology today year-over-year for very medicine XX,XXX that our solutions, clients than of to company asked paired leaders years. revenue modern, covering analytics, commitment and reimagine moment to a XX% we speak providing We're care today. his healthcare customer

XXXX. which growth Our of $XXX disciplined guidance approach increase has to of XXth revenue. adjusted our reiterating consecutive us of from allowed the Adjusted positive to XX% million, $XXX quarter XX% was for of million $X.X quarter quarter represents million this year, XXXX our EBITDA post XXXX an EBITDA. over for one, to We're XXX% first

of which will between generate for million XXX% XXXX, growth to of $XX million adjusted We EBITDA to $XX to represent expect XXX%.

on have company rapid as the scaling our As move continued our have to ever-growing our base, and customer a we organization continued growth. needs very momentum, prepare meet for to we of been forward ourselves focused and

to increased customer value promoted our areas bring our facilitate And to optimize our service our delivery. our unifying as our functional most enhance to our over functional integration of and leadership experiences, These divisions, confident further recently and such alignment more sales success, engineering abilities unify I'm recently, serves changes on our distributed enhanced efforts we teams, recent have that across globally alignment We professional help critical functions. and customers. aspects corporate further teams better fully services, our client and ability aligned focused marketing operations across and will operational and enhance including organizations. and product integration

through customer terms to new expansion we're initiatives, continued client growth, in thrilled marketing and in momentum In sales resulted of findings which organic upsells. progressively see and our has

Our believe by has total new pipeline stages one far. nearly quarter year. so to achieve of team of still We we're in early encouraged marketing doubled efforts quarter results focus seeing the sales able versus our XXXX the are last been but in on of retail, one to and

enterprise on We sales talent practice continue top segments. sales group focused executive to within and place our leadership and our

for we in As revenue. bookings we million recurring to and expect to to strive increase in team at We're yielding and this approximately XXXX year another see in annual XX%. average our are look our that investment to we to investment increased $X our we ramp-up of to investment million continue year. XX% pleased quarterly every members, to last year this from $X.X quarter of from If XXXX marketing, these by fourth bookings doubling sales exit we in by $X $X.X invested, continue

our Now, provide on an shifting latest Medical gears Meridian Management. update acquisition wanted I to

We contractors scale have material large and onto transitioned third-party all offshore process CareCloud's, business offshore outsources operations.

reduce We overall continue significant margin to expansion drive expenses. operating and our

operating of we XXXX, fact, Meridian Meridian's reduced by have acquisition In XX%. expenses in the June since

quality conversion must In we from perspective innovative our effort our out One is exceed simultaneously effort this terms example in ensuring is recent execute improve always rules create year. resolution customers to and fully to began to year, This system rule able one annualized operating we while approach models expectations. an and to from rules, were endeavor of find cost us the improve our us ultimately third-party system proprietary net us growth given our practice has our allowing collections management on which that complex move a more an flexibility rates to other claim costing basis, KPIs. approximately of on that costs drive and our quickly, was $XXX,XXX savings, amongst and new ways rated was highly build engine CareCloud we to from based last RBS. powered this quarter more our This unique and clients

doing markets we we expect XXXX, to to gave how while another technology together lines as operating for in you we this and our target expand been portion market, bringing on an focus serve we customers our our better record we across us assets, Last of update footprint we our quarter, large our ahead on product solutions work be address. As in our had teams, and we're a continue offerings, charge the all year to costs. our including and maintaining

we're to progress. against and making roadmap initiatives, We great continue execute these

been and tremendous partners integrate incubate new work to systems of looking some innovate our platforms, used and and platforms always and and disparate and not In where these on we're integration. we thought across that see partners our potentially across systems, healthcare innovative we a Lastly, our can cases, focus unify opportunity is internal One the the area have for only to internally initially solutions. own data internally developing cases. vast solve we across continue we with doing ecosystem ways ideas to but

plan library. to opportunity continue our acquire in complex several with this leverage We year. call been we and We integration companies working system on the used CareCloud set. space. of commercializing challenge Conductor our the we focus we We experience applicable quarters one This on solving during is additional specific new just had a you the Conductor providing piece some industry interoperability culmination as overall We with innovations, this our keeping of horizon towards solution teams we ahead. CareCloud the potentially R&D and our which solution and interface end look our our on as Conductor. able see being have forward progress through how and for see updated over to of details of space, and decades and additional solution cases months us the integration Our engine, sharing to R&D widely of you in CareCloud unlock exciting huge

over yet the Officer, to I best now Korn. of to bright, it to work, Chief employees our turn is our personally and thank turn Bill? our Bill I Before dedication over incredible all I'll future Financial for like would is to hard come. their floor Bill, the

Bill Korn

Thank Hadi. you,

CareCloud. for First growth quarter strong XXXX another of was quarter

the million, $XX.X million As both first of and quarter $XX.X million of quarter from $X.X of XXXX. the Steven for revenue increase in mentioned XXXX Hadi an first was

of of their annual doctors quarter patients the revenue tied are deductibles to the impact, doctors deductible. year the results a our an our has seasonality. on When First clients. to by year, visit money few that's the months insurance first of collected XX% the always patient the have element in Due early include who each

to So payment decline normal and This volumes longer, primary doctor of saw notably delayed. small to revenue in a our due care most COVID-XX, practices. in also the is patient a takes in our is portion QX industry.

things cold And that of school to pediatric other all flu, visits were normal by we visits season. or As down. half many of the didn't caused winter are increased often flus. or see or ear population, a cold and these exacerbation result went the the infections, Up to remotely, the winter are healthier work-from-home with of and asthma people many in children flu

during did However, overall deferral didn't of see XXXX elective we points. we few a a of much percentage as decline the and procedures was

the contribution will that coming first The So revenue quarter, growth increasing most the as existing volumes total, believe from from in both on well. we us. behind clients, boost reducing provide from had that a cross-selling of is of new now COVID which revenue impact as included organic in quarters as clients, industry has additional well revenue to

XXXX in quarter shares end and $XXX,XXX of outstanding. common in expenses period calculated adjusted net end $X.X non-cash first $X.XX diluted quarter during and or issuable Non-GAAP share the to compared stock-based on $X.X the period an same $X.XX, to of using per year. common first last $X.X million using was of EBITDA XXXX of XX% million share net of loss restricted into XXXX per $X.XX Non-GAAP per preferred net GAAP loss $X.X loss or was stock year. quarter. first of $X.X outstanding million of the Our loss improvement million, income the million net and based was period dividends is takes shares in vesting the period stock the attributable depreciation net units. a revenue for $X GAAP common GAAP includes income compared amortization net account and of warrants, million net compensation. quarter the plus last was the Adjusted outstanding to exercise shares declared shareholders, of is upon which same adjusted money loss the for share $XXX,XXX

approximately Our after due million in last QX large company to increased businesses part the by savings $X.X cost adjusted the year. integrating EBITDA XXXX acquired the from

our were ever expenses As over EBITDA last generate and we to to and spread larger means, our scale adjusted we such acquisitions, strategic CareCloud organic both than business revenue adjusted and fixed able through base a as Meridian continue income net larger year's and before.

As current $XX March current our approximately $XX of credit we drawn XXXX, million with less Silicon Bank on line is XX, assets positive which of approximately had of of cash working Valley and nothing million. liabilities capital,

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

time, monthly at of annum, it XX, pays reiterating perpetual, I'd We stock cash XX any dividends paid dividends by share. at it can option choose rate guidance consecutive we and like at for our the December our preferred months. is XXXX. to per Our close while be fiscal for forward-looking redeemed XX% at per $XX year-ended

additional quarter million from revenue We the based to of to over fifth clients This of Chairman, includes the excludes full-year I'll acquisitions and for savings XX% cross-selling EBITDA full-year million scale EBITDA company in first to acquisition the EBITDA guidance. of mid-June effects and from fact the $XX Meridian XXXX be the XXXX. Our which represents on comfortable now revenue anticipate in a XXXX this our revenue million concluding new will growth services regarding $XX from of anticipate our acquisitions. growth clients a floor did clients. approximately $XX are also growth with projections full-year and to new the growth that XXXX, additional public XX% achieve as with million as XXXX. our million not to revenues guidance revenue existing companies but reductions million is seasonality the more, $XX is been during from or achieve. which few growth Mahmud benefits $XXX our through to XXX% XX% year of line organic clients revenue. Year-over-year comments. cost record over CareCloud full-year be until well guidance $XXX to his of place, organic have able management's to revenue material XXX% reaffirming consecutive will and expectations of existing adjusted still start annual reflects Revenue to Meridian adjusted acquired and over we're Between adjusted the new our as turn tuck-in, for XXXX across realizes We

Mahmud Haq

support. open Bill. ever Operator? record be you, strongest for and their breaking profitability. and We're thank for fortunate position questions. We'll to Thank customers our continued We increasing to now in our call another employees poised the growth investors,

Operator

Thank Instructions]. you. [Operator

our from take question Please Thalmann. now Jeffrey from will first go ahead. Cohen We Ladenburg

Jeffrey Cohen

little year cadence other Trying what for from as and the deductibles the model Sure, QX correlates on couple for closer how we've Please. metrics that far or know the revenue a I you or out as kind extra more kind thought QX of the our of to the COVID to a found any on push questions. that? with ascertain better as thoughts side QX cadence commentary that of a back of on then Any bit. half ramp. that being showing previously any being and there more of

Bill Korn

Thanks, Jeff.

So the us. to good seems appropriate suggested pattern that I question. And very you think that

do. in We growth expect QX. normally we'll of little a We bit that see

COVID that of cold is season, sort And least tail think some this flu see not the at this is at which QX have still I impact. would typically, we end there again, timeframe decreasing, point, of and really as impacts there April the year.

see the increase of be anything would But continue up should we've of that sort we seen. we an signing of QX be by seen to barring much everything business increase So unforeseen, customers. back existing you And that QX, won't as that suggested customers have usual. new cross-selling as you and maybe course, as to

you that's that continues our to the pattern that signup I don't year, really completely think revenue of so today, back base. the half appropriate. And course, any see that until of anyone grow you So mentioned revenue the we

Jeffrey Cohen

specific showing like had Okay, the got QX investing. you more and quarter up? assuming as for outlook. And about as least I'm that's perhaps far me the for is XX% little bit spoken second it. It looks Can a XX% to where for at Hadi, the you be

G&A your we than expected. lighter was So

to XX%. that that elsewhere? XX% see So shelf, operating costs Where what is the I'm investing direct curious in is the should about that of or business we is

Hadi Chaudhry

add the this marketing. be Bill, some increase Bill, This sales to would and marketing you sales that add like specifically in should like to would and and color? you

Bill Korn

Sure.

Hadi marketing So our think and see Jeff increases, add continue I you'll teams. we actually to said, as sales to

quarter-over-quarter. that see growing that you'll So

more We finally, will that very, do be do even of in continue rollout service a growth in you as technology because direct clients although uses continue on both that people see you'll investing and percentage as continue And work possible, we have terms to there. see some costs, while always to to we a operating expect revenue, in to try to expenses, decrease. R&D. it lid we of while our is we keep our as cost as new And, effectively operating continue direct to costs, growth to

Jeffrey Cohen

for Okay, Nice it readout, that's perfect. me. Thanks.

Bill Korn

Jeff. Thanks,

Hadi Chaudhry

Thank you.

Operator

We'll now Baldry from from go Please Richard take our Capital. next question ROTH ahead.

Richard Baldry

Thanks.

First, EHR on a And sort it structure how if sales push you about you approach it's like after much really RCM, other to side. of a sale how you the very organic in you solutions. other? than where versus force how or seems or growth Is much the sort how sales different Can maybe, your of results? talk go better seeing one unified the are do or split, which

Hadi Chaudhry

thank It's with it. Officer more question. to Johnson also Thanks is for Chief give some more then details good and Growth and And our you, a us the question. Richard. we Karl have color, can Great he just

you, structured. you is you turn some at the color As can floor I this to here team being and time to we're the And And ramping is last over different quarters. addressing Karl, different whole addressing mentioned, over give the maybe the market more segments the team up lines. will maybe team same two how started for product we divided in being the

Karl Johnson

you, thank Yes, Hadi.

RCM about our half looking services cycle of So were sales. overall, revenue

third a fourth SaaS Software alone about the about in eighth. an and model

sales team software, folks. really a the sales. expanding both our type and And into XX really enterprise has marketing and of the been RCM. on have selling They We focus are

people Thank growth had sales negotiating enterprise fact, so advanced that proposals, you. team. we've in is reviewing that by pipeline, due now contracts, our a a are mean advanced And of I So et significant good cetera. share in to prospects, pipeline, that

Richard Baldry

sort to the secondly Maybe they're how the analyze of, maybe it maybe how sell mean of things there. of activity M&A to curious, there's impetus company's maybe was you're and things for to for get XXXX. or in tougher XXXX? until to I'm as dampened you you're less be there's some see in rebound likely by it what more valuations I pipeline, is an But that could idea should COVID well. the M&A we more on because talk results because And XXXX impacted challenges is seeing seeing, about sell reluctance so or of terms

Stephen Snyder

breaking down a Rich, parts maybe company, all, Thanks, to analyzing of for into that a asked definitely it first tougher, in couple that then COVID of se, us increased with question. try to at maybe look back is regard existed an Great per that asking the you it. not question particular, at tougher, And to and important for multiple it's that COVID. requires to view a period of period prior us time, trends those years, -- go in of to to look understand and the but

from continue as a has bit a make it those that that requires on continuation to behalf in be I able by incentives company. we have where certainly best impact company historically the some address target targeted to see relative to hit an we forbearance think same observation and to to terms companies to lenders in some add the like. their address that distressed, head. to opposed gymnastics to additional enforce So of really and creditors of have been been companies our a reluctance see been regard COVID of to an to value. virtue operations opportunity as from you those the been trends. remain really of the that PPP the business, of There a that perspective, Companies of able of rights, business some seller's loans, opportunity some that With reluctance governmental the nail were those as We combined the it's can believe or companies little more something model sure existing we we just we're in that the analytical understanding more on reluctance have that

we of sorts that provided, that's extension to the COVID-related exit. of perhaps believe regard rounding the an corner bit But a to those time. probably of of timeline with we're artificial So extensions

of continue we thesis, representing and fact, that overall think in more discipline XXXX pipeline, if to we've And and approach overall. to today. probably we of the about, year first years really over continue look, same we case for the right XXth we've particular your believe the -- these and and for been that markets really step back about holistically, increased these driving that's at we optimistic look as deploy had that or to taking cycle XX think management XXth with we fragmented really IT we're pursue opportunities anything, also it the acquisitive last or same strategy, those opportunities heavily have campaign be our growth the M&A ahead, really, our If part growth, so, acquisitions the organic whether the platform. being really continued and In or days be thesis the the overall best we and acquisitive the when our are our that or mentioned, healthcare as are two of revenue represented believe been we'll years year in growth opportunities growth actually largest question, history. really our we consolidation Hadi And continues think the to

Operator

B. Please We'll from now Marc take our go Securities. next Riley ahead. from Wiesenberger question

Marc Wiesenberger

morning. Good you. Thank

are expectations XX,XXX than you that under for in the growth net more the With update you're of that current management us what XXXX? serving, your on patient can providers and revenue

Hadi Chaudhry

do is standpoint, then the coming is followed tools. whether that's other others which patient of often package most sold having as And that's packaged of the a Breeze This combination customers of are and engagement provider technology, our all Plus Marc patient is most SaaS-only of of they from the currently out of revenue RCM SaaS-based or solution. solutions management; from any the you, the many services model, coming when robotic solution our still we still from using offering. Plus technologies the and using than by One RCM our being these then of the a the the there and the of that, monetizing XX,XXX management we Side we But And to that on together. whole Breeze. question the CareCloud they keep that XX%, RCM from chunk use then say coming for less maybe are still then the those we decades, the said about Plus experience will it's question. RPA appliance have set the solution. towards on the on talk BI certain from solution so answer the summarize the Thank the the the for have. like. close And that standpoint, the year RCM, are XX,XXX revenue using are to cycle that we're especially your yes, most proprietary patient others our also process GPO that using an we Health company probably have the the XX% believe who we directly And the or of the providers required, are around are our let's continue revenue of have. the a automation and revenue good From provider technology BI, solutions the But

Marc Wiesenberger

it. Got

Okay, thanks.

wondering, So you that help to kind the if that in I'm talk about that offerings you care. the around can topic has been lately shift develop space have growth you if home of toward expect further big there? to and

Hadi Chaudhry

question, Great Marc.

As pre-COVID Telehealth that course performance Telehealth of before a patient first you in at the of solution. conduct home to the least launched Telehealth of quickly launched our solution we into MTBC's platform. not then delta proprietary we advanced in our on we The CareCloud, version solution the only next care. post-COVID, that the acquired, That's remember we already one year probably world integrated the before CareCloud enables a the and the providers our platform. that tools The the that company

the offering of on solution. last TOC decades. the CareCloud, our whether our been EHR the the under parcel using platform version new And the So software or proprietary Telehealth then that next couple for we this initial today have same management two and platform that's practice includes the part of our the is

some use there, of version deal So other only -- sold to would similar to offering being exceptions like of it. that overall of the the of as most the to use, package an some only Telehealth continue clients would part is with

-- only home enterprise system, one Hope who And EHR customized, is from with from one integrated with apps, MTBC's system. of On services was the solution them multiple to help fully standpoint, we answered not the up the home therapy multiple RCM developed, part provided large web-based phases clients the that practice with help then other integrated support physical question? have existing across therapy we of management and perspective, health we interesting the with. other states. a your came healthcare They done provide the work that

Marc Wiesenberger

it, one Got just And final one. yes.

is theme from top-line? major value the are the number the kind potential Another does towards as of increase Thank percentage we guess based the under what care your And based forward, that care. value move I potentially What RCM regime? of you. impacts providers operate fee-for-service as shift to

Hadi Chaudhry

another good question. Again,

I is than would model, X% not from deliver exact will I or view, point But it be X% in think margin contribution say have fractional point. infancy do with the we’re at we our this this so us. it, way looking of number towards at we the stage, adaption less this

systems the few big at years, of the care of fee at of way a from shift this model see certifications, for wants service of the have a the calculated, including of already search, time, terms our who industry. -- this our in based for some we of the the least search the to for go of the for is and support, that do the same a model. instead But quality number fee-for-service model we client, foreseeable we the So we -- can even future, revenue, next don't for revenue because general

Operator

take now Group. will Allen our Please go ahead. question We with Maxim Klee next from

Allen Klee

outlook some capitalized Good for the on morning. XXXX? or for color us give you Could guidance and CapEx software

Bill Korn

Allen. Sure,

So as on we're capitalize we're GAAP products always you us know, when requires that are doing yet generating that revenue not to required work expense. new that

see that. so continue And we'll to

that I was saw quarter we development was first if at you look there you'll of was that in very of of quarter what think roughly to XXXX, similar first XXXX. million which see capitalized, $X.X

through go to that similar numbers are year. So that I the we that anticipate you'll somewhat as see

we and that CareCloud with we Now we capabilities year. as Meridian January the developed of platform from of year, integrate platform our which through we bought in enhance year's got to last again, last in we that got we the last acquisitions, June that bought core internally continue and both that

Allen Klee

Thank you. has question last been much ATM far? how exercised is the of so My

Bill Korn

that have which the under operating anything we we registration Then a the filed filed a, off our file without we was we We rules restrictions when to that large not enough the we in were we that started to name statement sell by referring to declared call The CareCloud, we were changed when that new shop were baby a S-X ATM. the past. you're to, shelf now the eligible ATM what effective SEC.

if As to shares chose facility stock market. we the we allow included that, to sell at the we us did of common

not this companies, today. However, look stock and I'm our sure public shares I CFOs, sound price, least we're most say no most at way like at at selling we and there's

exercise without a start organically our we're too us we've So help again, for that to is at you it's they're to us and know. point about that shares And grow fully Well, that a We capabilities, as that potentially common is preferred the of used to right, selling choose never stock lower at preferred, available raising and got sell to receiving. business to at capability the we source acquisitions. when having shares a this price price. both might redeeming the redeemable mentioned, price and capital the great the point we capital might could start been are may be through excited that's us

Operator

We ahead. from go Securities. Mannheimer Please will next Gene question take Colliers now from our

Gene Mannheimer

with and I from Good want moment. congrats a quarter. net to on for good you're organic growth theme Can the just percentage continue a about that of morning customers? talk generating bookings new Thanks. you the

Hadi Chaudhry

as Thank you, good It's can just And more Karl some good and give question. morning. color. Gene again

customers. -- about In upsells the new percent difference if from between terms of are the you versus thinking the

is are the other adding the and look if the would further numbers about keep smaller and are groups, to so comes by of the some from bookings we're and able go you still XX% new to of be two quarters, Karl, any that look to more about, today, quarters. there more new customers existing in like and about XX% to of continue XX% the the growing last if upsells practices coming at customers so bringing So more sell at were them add continue coming those and we last they add About us. over it? those two another to from to you you collectively, color

Karl Johnson

But is providing roughly sales opportunity note a quarter it practice Hadi. of do base that focus has we think tremendous a of on efforts services very selling are our covered software I a think worthwhile that see well and is cycle to existing revenue to a platforms No, on strong that you've our clients. software client management for I to platforms,

we fact, do to team you, Hadi. have dedicated Thank In so.

Gene Mannheimer

Thank I in you. now could most them transaction good of the expected attrition year some are Meridian itself that seeing Yes, the plays know out. has coming or with you of comment old attrition color. business, about if you to And on trends already lower? a from on both of up the higher

Hadi Chaudhry

A again, Gene. good question

X.X% was disclosed in close know we due various are, our far for exactly year happy number. our this as tracking not not to same an so last we're about report towards the range about as we if acceptable XX% if year we're we considered is X.X%, better space this well, factors. to be the to and As retention The the industry, still attrition to in

there difference difference any we is towards it positive seen have of is So much terms in not the retention, side.

Gene Mannheimer

Are greater to how Karl to on That's here sales. it Thanks. an any overall is I about then company heard Thanks me. last speak do we me good new that. And that update about client I than arrangements for example. revenue, Force is program, it's maybe and of eighth think it for that's your an contribution thought one there the of trends. X% revenue mention for And from of

Hadi Chaudhry

terms typically the And these the talk for overall numbers again, in disclose of you publicly we can the Force opportunities. Gene, revenue do about not Great. specifics. Karl, But maybe

Karl Johnson

as Actually, Force we launched eighth did do you, replicated we Thank that really numbers. We an the a the revenue, workforce very we their are of augmentation, strategy. the and being outgrowth What opportunities just it's most sources acquisition sales our in been of think second applications. Force XXXX label, white Hadi. primary there's of recent seeing natural software see of half is,

our come So of have the a number from in pipeline that. deals

who we been resources can can to an think Hadi. homerun I with certain provide them fit. us. somebody a and been at So acquisition that's we and for looked that might But great a say, you go not we'd for you, Thank have

Operator

from now Wainwright. We'll take our Please H.C. Dede Kevin question next with go ahead.

Kevin Dede

he Steve, into a words maybe, go And of comment Hadi, sort my marketing Thanks on question. sales I'm on back your how into can and you've that driving just glad Karl's and Yes, Maybe morning, crosses integrated Good over in gentlemen. effort. throw sales of it. M&A as a if the enterprise like to you of Force couple for as I'd on two sort that software understand given call. could effort. it to well taking the

Hadi Chaudhry

workforce over. understand, and IT, only thank team operations one have you for XXX a take you and side, X,XXX Kevin plus about And can Karl morning, Good employees. we as with then can the Either we on not of it R&D I is global of piece start members. maybe question, have

behind of on R&D technological on side onshore perspective. workforce, and side, So resource only the the too offshore IT, same, resource same course starting this was but providing the at possible the whole the logic an from operations the time, combination billing the the offshore, wherever not

we and platforms. working years being of that's since of over this ability of position expertise the of client we and believe a we're So how last because started, proven record different over XX track in best our retention XX

any like over give. further to addition, for to he other Karl So I'll turn would

Karl Johnson

Hadi. actually, you sales process existing the also spent large up the by into level, good teams, people the you, some a different group training a Force in can set. selling process about just call myself, that And have our large to of recent opportunity, large provide we've them Yes of anytime practices very we it that sales for color enterprise would deal, some we're where that somebody deal sales our I with effort doing a software on six group is Thank successes had development which is to in offer talking we labor plus so. which sales in are

white but also service. the an of you seen a, it's think become applications backend labeled say, in to provide companies. now that's isolated companies EHR a than we're not some Thank like at interest an deals, with to in clients really very is rather process, Hadi. existing providing us and significant us one, We've looking an I only So for kind where software to integrated opportunity you, also sales there new billing

Stephen Snyder

There's thanks to last are RCM common the the under driven in for fact year that Force and interesting kind lived for that Kevin, which very Okay unique thing. instance so, growth throw we of to PPP perhaps that forgiveness smaller loan PPP. I'll just a the candidates And trend continue think opportunities loans the that, questions. certain with over last more we've see are time regard companies in by And one one acquisitive I the between opportunities. MTBC's really for the And you're synergy right. to again that the absolutely and or relates still good

forgiveness large favor thesis leveraging the that conditioned So the costs upon part around members part expensive the global is and of Force loan labor really or some employees. in technology. to opportunity really retaining onshore is in less And team of of reduce

as labor costs So go I Force direction and the actually kind think the that of trends increasingly I think, moving opportunity, of in onshore to while business stayed up. continue industry holistic are and

equation your I take a there's some of to the good other and back I done a think main relationship that loans PPP in we And to have said, event, two a similar incentives of the be the bit encouraging employees, job that trend terms on both any of grows. That think retain temporarily win. and progresses year a in employers absolutely exist. future continues sides think synergistic to in But I or regard. momentum as is question, the we'll countervailing driver powerful think that the between

Kevin Dede

me I little else? a guess you you you competitive to to it's that and the just understand, I can don't how how someone bit, offer remarks. consolidated you me, Hadi, talked Could one It might intend your seems that commercialize you that your advantages package from that of prepared differentiators. in of one one explain something to sort to other translate

Hadi Chaudhry

achieve it products. great part as Kevin, Sure, in We're for of and little a to not let our we to that some necessarily give believe We're this excited interoperability trying and reasons. one while would me of different new our concept Conductor The new question, and a tool is broader question. but of very new your answer to background how come your to this solution capability approach be. about an we're excited engine this market, CareCloud point interoperability is to specific the integration a suite just and this about I'll it plans for variety

These ours as integrates As using customers. such that be anything labs which order and Traditionally, state is HLX, best other of practice systems we this registry. in FHIR you being done and many may know, many are there and different proprietary standards standards. systems many types serve to to or industry from integrate the must management can their EHR to other

the had over customer have years, so to build So these interfaces in support needs. many of we our of

flowing also vendor internally time interfaces of these monitoring to data able this third-party simplify now. to So centralize with we organizations, Free reusable for unify it cut of that and significantly. experience of also services our single CareCloud library interface have it's it's and streamline other integration whether all following exchange CareCloud them entire Meridian the on process. takes all to and give into that proprietary you're and number integrate us provide the with others data visibility This acquired, the via systems within across and to conductors, this now teams inbound view outbound ability provides a management we're the the streams,

the all So on or reducing while integration reliance with technologies and this good. associated companies simultaneously our costs was them third-party

make hours internal absolutely it takes the less the of cutting implementation. by man time will will the that us in interface cost we of to have and spend So future the to on help less side, terms live, this terms in complicated

There offer offerings, the standpoint, we that other number So servicing. a similar yes, be of should in this of completely we look to at a is But our vendor or exist are new out market. of, other divisions the to believe product entirely of there. even pricing when you I any at terms of of from think in company, other not cost any able that fraction the vendors similar the

libraries, integration company have required. an is we're one we side, of only interfaces but or MTBC decades and the a on CareCloud with So two integrated written the library with not over these last other companies,

one, that go, we we advantage, so consolidated that impact. one in advantage of we believe be try the when when all commercialize with along product, have So cost a will competitive we to this

Kevin Dede

it. I it. I got got

it. much, Okay. appreciate gentlemen. Well, thank very Thank really you you

Hadi Chaudhry

you, Thank Kevin.

Operator

ahead. Please our We take will from question go from BTIG. Larsen David next now

David Larsen

rate the that a or Hi. perhaps article solutions been self-insured your fill now? going Can There's there patient market earlier remote into PMPM and that with Journal employer was published week. a the where or along of the that that of Street charge recently, like plan you get obviously, like monitoring? facing can portfolio need facing lot chatter Wall lines And facing would about about your this I'm Are you a feel you M&A any have thinking like talk in you in products payer of like plans solutions forward?

you. Just helpful. any will thoughts Thank be very there

Stephen Snyder

type acquisition analytics, add have in companies really and electronic verticals, patient where to a like whole we are the we see And think health we for We're Thanks But that really those out your GPO, actively other or also verticals, can value. scheduling, other still our add things value. you really where to target Pop an where record, BI the exploring integrity, also opportunity to, there's caring targets for answer looking health here worked question, David. verticals. variety allude revenue from markets, of we engagement, your significant navigation come question, historically, revenue PM, either and as opportunity cycle,

there's and and probably many primary some competitive driver of good technology including the addition develop continue in space talented is us perspective, CareCloud the the real from team in members to to that instances, main se the edge, those, employed and per on with really leading strategic the are comes not to examples here the driver who are it an Meridian acquire to the R&D we us, U.S., opportunities. members XXX technology, not offshore globally, have believe that added we that's make more that. to this is when we us acquisition some really stay team Now, But IT, of that that will help have in value than also by in capability the focus

David Larsen

much Okay, performance. on and great. very your Thanks congrats

Hadi Chaudhry

Thank you.

Stephen Snyder

you. Thank

Operator

question We'll from Galantino go from take our now Davis. Michael next Please Chapin ahead.

Michael Galantino

allowing me for the for This Steve integrating Hadi update been technology how specifically, acquisition. you on to morning, the Good last quarter. specifically everybody. can Great an successful mean obviously CareCloud or and CareCloud CareCloud, from ask Thanks year is and give acquisitions, the are collaborate on the I has can question. MTBC the how together? more new was it has us the there existing have the little you of And along, capabilities you. a second that all I the clients? bit? your assume it puzzle pieces been to importantly, is, And game opportunities Thank plan cross-sell I to putting question Meridian

Hadi Chaudhry

going plan. technology thank well question. is very and we believe Mike, for then is And Thank you, the our to our you yes, good morning, integration according

offer management the -- our platform. We Meridian patient business BI to experience management between intelligence management leading practice acquired overall healthcare, and winning extensively our and industry value or tools Medical category the grow the Management. precision Care From the continue main cycle to to revenue products proposition Company we expand CareCloud award and we software

exciting use also the Automation with technology that example to Breeze segment. practice company, time given continue there the mundane groups with We are with our other we clients. the version. we was bots the We're workflows we and we for because internally Breeze certain segments. currently CareCloud, the from where our our process proof the different significantly new CareCloud believe bots in trying of to also some trials the cost small and the that practice serves same how that the opportunities well initially integration we EHR the enterprise being tasks Process integrating we're management us able that Robotic TOC, have improve let's are, same for eliminate two to market with different plans, helps from the time in RPA platforms. large EHR standpoint. practice entirely working concept that EHR at that this between operational examples addition say In the which the integrating one And proprietary in have as same and the And leveraging we're RPA of those products with to on that, been of perspective, TOC for valuation acquired. At implemented of Breeze EHR the the find and comes those They been a we're now with to of had then TOC the some management, have basically almost microbots bots way,

offer for the small to medium continue So TOC -- at to to medium-sized to and the to and market platform we the continue the in to groups. groups. we time, go cases, EHR for offer practices large we same the And CareCloud to continue enterprise some

that is. So those as it stay

and on sell we on continue and happening, what different markets. the is and segment a side, the and other is the side, strategy, technologies sell market an interoperability one to there different which is So integration between in that taking between there to

Michael Galantino

out that is through from new these out? Or acquired of not sales technology those Do you numbers broken actually, break terms in you that from you've existing clients acquisitions?

Hadi Chaudhry

disclose No. not release those numbers, do We numbers. publicly those

Operator

questions or call additional Blanche, back to at remarks. time. any there It closing you further for I'll appears no are over pass this the Ms.

Kim Blanche

joined us and speaking to us forward like thank you again next Thank participation look quarter. have who's call. your company We'd to interest to a you today's in great as and on day. and everyone We a appreciate we

Stephen Snyder

everyone. Thanks,

Hadi Chaudhry

you. Thank

Karl Johnson

Thanks.

Operator

today's call. for This you Thank participation. your concludes

disconnect. now can You

CareCloud (CCLD) 8 May 212021 Q1 Earnings call transcript