MTBC - Earnings call transcript Q2 2021

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Operator

Welcome to the CareCloud, Inc.

Second Quarter 2021 Results Conference Call. [Operator Instructions] Please note this event is being recorded. At this time, I’d like to turn the conference over to Ms. Kim Blanche, CareCloud's General Counsel. Ms. yours.. is floor the Blanche,

Kim Blanche

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

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

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

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

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

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

Hadi Chaudhry

on second Thank but call. quarter, you, breaking CareCloud. Kim, us our and not just earnings be breakout quarter. revenue quarter record a a XXXX to joining is XXXX shaping I'm thank strong for to a for you everyone pleased report year

thrilled this year. so have As continued this a what team, about we far I momentum about accomplished we great feel are and

solutions As are to effectively, a we run we delivering partnering XXXX, and outlook, prospects necessary neighborhood deploy important health The of applications we and the solutions our country. records working to of charged and care patient in report businesses growth. in to health be on medical system, focused experience host and The to products, such environment innovate doctor as their more what suite of integrate patients communities happy with reserve repetitive systems healthcare to remained deliver today's mission other solutions your a across our continues on groups all assets services. auto-mate we is enterprise deploying continue healthcare This system, we raising to increasing in electronic terms our incredibly strand. to behalf is continuous full the healthcare products are over including management while organic in ahead for enabling acquired continue rewarding us business remarkably delivering health ability group organizations, in a customers that entrusted they I'm with of tasks It practices nationwide. mundane to responsibility of incredible thrive back we XX,XXX fully is technology, team platform the with certified to us to three more section are differentiated whether and to at software focus other as on half a sell work medical excellent onto with leaning their of over enabled cross than levels our to drive growth. complex end-to-end or these comprehensive a to software to over fuels highly to virtually cross providers empower This and and

this to industry drivers open award-winning to leading existing continues software the from to solutions across value pleased aligning to with services of and opportunities markets strategies. other practice a CareCloud. of over very variety customers, organic platforms see are expensive new to critical We coming functions selling reward to a sales more proposition cross off customers of and Other of completely

a and We leverage up These interesting consistent partnership proven driving also of unique and growth growth methodology. into right. the synergies to continue are acquisition and pursue fuelling nicely

and is for Our automation areas reason investments simultaneously continuously A show in focus technologies and to paying sales ability strong that revenue performance the out been in investment of this new growth, dividends. both for significant customers while and a distinctive finding able use. costs to organically our marketing through stripping has top-line driving with acquisitions, and

industry software sophisticated large coupled an and of cost portion basis automation internal Our our team. a with for process best

continue and how on other we I today's prospects. evolving why focus bullish call, For felt to it incredibly important we to remain on are

brand the earnings market we this have we who be How an tech-company better last leading today and in a how as encapsulates to new grown we we company. enabled industry call, the healthcare reflects are and to more how discussed our name name richly the the solutions During take CareCloud technology market.

how and our empowering the solutions clients we challenges visit daily. travel the some delight is of CEO, tremendous the across to recently are country opportunity with had many our It of to customers. As facing I we see tackle are to a

another business business. on a the visit even workflows of trends reimbursement payment perform out and carriers dollars to and how leveraging cloud-based gaps of to decreasing process the for On platform, annually patients, analysis AR. are their BI insurance in new and inefficiencies increasing days can thousands throughput of their deep driving in discover predict client, speeding we tens reimbursements how their them our we up flow, other precision they clients and robotic from of trip while and discussed On So microbots learnt patients. intelligence improve teams, respective to existing automation we a trip, and bots saving focus focus recent on cash a

not in receivable this growth new to to services, us premier directly to on is June we combination vast of through of after, few. to with the our meet In that market is coding tailored a to have needs offerings. of This for serving of Rather to technology a cycle inextricably the of this hospital directly technology accelerate us with as course, significant linked we and and acquisition that strategic activation that. of further hospital partner long in to two And the platforms companies revenue combination We more care years acquisition the service most needed bot a as other massive health acquisition and It of on in market clients was EHR intelligence part Through credentialing partnered achieve over to work market driving primary segment, recent want between as is market, to opportunities these alone. through micro ways because vendors, plan to of a Uniquely, medSR and a two of this our and but offering. their the market growth established within additive a software precision needed competence for folio, around is organizations solutions have vendors all with recently business that addressable on competing has about enabling with on As their are and EHR name do meaningful well past year, specific compete The of there a and accomplish we the and services a cooperative process we of think going wind ability been need of enjoy helping to don't us a to the CareCloud is health BI this of I and has management, not behalf and stance care our healthcare, is This solutions medSR. with acquisition. specific intelligent propelling means, would associates. over believe two about bridge pre clients. with large we do, now neighbored best platform synergies do These historically we unique new together hundred staffing systems hospital as remarkable the these agnostic, the business We drive consulting customers. what an solutions intent results and Centre medSR's our upside as provides consulting We which we market. clients. discuss two solutions decades MedAmerica to product focus against over come is for as and over had for products a the array the capability success a where robotic deliver are down and craft the us software giving closed our to operations for good patients. transformation Heights. customized solutions we than our they IT are customers accounts opportunity vendor the together, companies have provider automation a and been through mutual business go why this to this and change serve the there deployment medical over require the we we now to in MedStar variety way additional recommended focused and

expand market One biggest experience by challenges the pieces be this years medSR's combining to future in the are stellar in for our in proven the and and very knowledge half early system is believe acquisition. of operational the and when is hospital there we wallet. challenging organization resources recent believe capabilities in domain us positions about their continued a a relationship decision-makers. system, deal with working of excited hospital validation medSR This of other to is are together active drive growth health Pennsylvania. health systems. more is great our proof a couldn't segment and example of access providing required of This the with reputation, growth share of health about deep and MedSR's scale latest One optimistic conversations sales to come we -- by point to health growth more we dozen great to We and space. clients. processes, our meet prospects accelerate system is as We needs latest

growth this deals Switching mid-market enterprise we new practice expansion pipeline, combined contribute slightly resulted continued I As second in longer upsells. expect cycles through investment marketing to our likely in and work more and sales, we to exciting signings focus continue take these have customer bit expanded sales and like solution. deals. our Set with to increase has sales and a shape quarter than any and to and smaller has to to time mature sales

said for the steady before, the we relatively sales pleased is have team with are we burning. engine is As and growth endeavor organic new us a

and our XXXX continue increase by from million are over in XXXX increased another have as to marketing fuel on engine. investment to We pace shows million that to $X.X to XX%. this $X.X sales in place year in year on XX% It we more and

can so we investments We healthy momentum and our sales, maintain continue acquisition these make client will to costs. long as

as suite for progress in that CAC $X.XX are and has industry historically quarter go-to-market the your it every to to adjust must believe that with evaluate and our continue Allow unrealistic flexible and $X topic. is bookings, to that we on at and marketing, of Many the invested we CareCloud by these of yield and team While hovering metrics designed around sales for the piece dollar low a XXXX. focus necessary and important products, an we continue not would regarded us of been year the platforms. we or constantly for rate of bookings believe in QX powerful technology making fourth to is comprehensive be average this another attention widely me beautifully of its approach incredibly agree twice its closing a

However, some and might not distinction the our position That that our articulate position. brand more us and between and why is market we on our market fully explicitly appreciate crystallize focused I'm competitors. ensuring

business Our enabled position in company truly in healthcare distinct today, technology have the a solutions ecosystem.

to We and to of have in the health unique system markets both execute in many ambulatory ability the our contrast well peers.

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suite Our play cloud-based businesses. analytics clinical look software ERP delineation This patient companies, to line between main pop medical SaaS healthcare mom us companies and traditional the different is on of pure our a software My proprietary billing for is BPOs, platforms competitors surface. the clear our compasses us of there In large financial that may child's minds, technology vastly similar full and and core other like or solutions same very in the industries. system workflows. to other do comprehensive

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and and While we far software their to customer services on innovation rely company of similarities opportunities then and In opinion, there products we two cloud-based share SaaS billing third-party similarities products. those do growth about our more typically are enterprise billing who medical scale, for large own traditional and whose BPOs. exceed used BPOs, companies value

of than of derived their customers more technology least directly is fact, one from using In XX% our at solutions. revenue

healthcare market services, software well all to them of systems us our custom the the unique us portion This our R&D are strategy slight proven and you a nationwide. gives primarily of play see other prospects and this to come subscription we to tech provider. is software and challenges and and and landscape, this drive enabling we offering In professionals. monthly by over able When software average customers deeper for our are to When platforms, to solutions award-winning large ability customize differentiated a competitive than or both also, BPO, competitors total leveraging other pure company, We Yeah. typically much advantage advantage. words, SAS customers, across areas deal we providing nor services provide add service would business. a as have valuable a create of a I products over a other We're believe to alone. you customers. box complete our to of ability more some providers with approach neither leveraging with to enabled a play analyze engagement, a size proprietary do we in fees are larger technology meet SAS by services in larger global pure a tech the provides because company services highly client out as their team little We from as integrated through develop

care sales to DNA and enterprise team building others needed quarter management from organization. point have closing operating simply hill in technology spring where One win enabling against is was requirements. Hills of work services state is and or deals a Our execute not this here a example communities. extended and are recent to solutions the do Spring last ill-equipped over rehabilitation

They at actively without care entire the a RPM by spring of and We work finding meet important a effectively to solutions vetting with are company. the is ability certified also Hills our system. cost do they to living, end integrate and R&D manage for MSO service are The solution members providers. remote system over across end spent While need of provide as They deploy we and patient to could spend implement, we would than a to because to support their needed locations. partner assisted business more technology the The close disintegration burdened to year to utilizing their we monitoring They an and executives them CareCloud felt them with options post care memory including to care, several continuum trained that to services. patients XXX analyzing to acute home care great and tailor strides with making care needs. of the a the Hills software. work client, effective of their need their call team now their leverage

over or our thank to We turn members to day businesses. walk have seen over our us all workers now bill. so. important over healthcare I how this day and will customers to the bill past help the operate life, financials year of you their and work patients especially on floor to deliver care team to through for I want in are daily out do

Bill Korn

Thank you, Holly.

Second exceptional of a second care. or X% the Cloud XXXX quarter growth record $XX.X above all was quarter of revenue for million the previous million increase time of quarter was XXXX high. our and another and from $XX.X XX%

XX% annual above average, which to of combination through revenue proof our level rate strategy a to is faster our above the our and continues Our that than XXX% our propel This run a $XXX revenue industry. is is acquisitions revenue. now growing organic XXXX of our and growth significantly million, growth XXXX

XXXX. As net of during account year, net to compared in was a shareholders, stock mentioned $XXX,XXX I loss net per was loss XX%, that a, as revenue million attributable non-cash declared loss into quarter, Last preferred share which depreciation of $X.X $X.XX compensation our dividends $X.X grew the gap and million to XXXX And quarter. of on second based the the net common gap based the stock quarter second takes by loss the XXXX loss net expenses. million same reflects amortization our period. $X.X of

per plus share $X.XX common XX% loss net units. lower restricted or million shares net calculated was our outstanding $X.X enabling by is ends second Common nine outstanding the net outstanding money XXXX quarter year grew issuable income per non-gap shares $X.XX us shares of year, using second reduce adjusted using of total stock of the quarter second gap adjusted operating end to by income XXXX, XXXX, upon expenses at the warrants, investing of share a over Our XX% from diluted period. rate, exercise our in quarter much of period for

adjusted period. months for of eye-popping $XXX,XXX quarter adjusted technology large cost of Our million. of million six the was XXXX million integrating EBITDA grown first second In EBITDA EBITDA compared it due XXXX of $X.X revenue has we million. fourth or six EBITDA clients our work months just or our approximately have from $XX,XXX XXXX% increased with as offerings service positive and record our $XX.X acquired compared revenue directly an the adjusted of from same quarter was QX the by the XX% for quarter XXth And year, This $X.X grown. the the our was shy in at of to XXXX, adjusted complete. consecutive last year. part XXXX Last businesses $XX.X savings in XXXX increased And was our in that first to XX% utilizing fraction resulting

of the updated XXK have our XXQ the we approximately majority, XX% to revenues, in describe provide our our vast details revenue. We and

technology. where approximately we was our technology our clients who where our professional entire of but And XXXX came where suite X% first processes. using our of includes comes technology our of comes of X% know-how from from use are of where are revenue the the The our use XX% revenue of our of cycle comes revenue services, XX% providing ourselves, other our driven of X% medical using providing our it And not clients And from revenue, one clients management another our This clients technology component their revenue our practice. we're X% half we're services revenue managing from from using comes services. we're is clients which clients from revenue of technology by assets. directly

who filed when serves the actually an we will the new and breakdown be a are. You'll technology better afternoon. space. of healthcare understanding in read this diverse see clients later revenue addressable this large market will the we, It Q, in our The XX incredibly company you And market. which group assist

The first six months of XXXX.

now share months per million a $X.X or net XXXX by of XXXX first income gap loss six to net gap $X.X $X.XX in of $X.XX per non-gap last with million compared first million or was share. months adjusted $X.X for the six Our of the

in of adjusted During as half Last or our the increase XX, the period. $X.X first $XXX,XXX was XXXX, EBITDA XXXX, $X.X of of an we million $X.X million, XXX% million. approximately had June same from year

Okay.

$X.X XXXX second operations was During cashflow approximately from million. quarter

by the of shares of the our included operations resolve one-time just approximately our it, which to purchase this to million in did a million the was of $X escrow. entirely held preferred the was without from spending or income. our payment price if approximately net cost our corporation, our year the a would it EBITDA preexisting However, was flow series, similar borne and form settlement have the This CareCloud $X quarter of during seller, time of at of been purchase our matter million the stock, cash adjusted contemplated acquisition. from And $X.X in

forward-looking capital new I'd continued by guidance year XXth, quarter working our on anticipate close $X and second net for breaking updating momentum. expectations. strong approximately ending quarter was a fiscal second revenue XXXX, surpassed our like December revenue. a we the set million based on And to XXXX record record Our June XXst,

existing few clients of revenue. as midpoint to of from new over services range. XXX% includes XX% increased June a the prior XXXX. guidance represents growth will public year of million adjusted range which XX% and SR to revenue During This our to for this XXXX of acquisition, revenue growth second year XXX XXX guidance companies a with as We $XX adjusted full new XX to have $XXX EBITDA to of full seventh at XX growth growth, to med achieve. over year annual revenue above We our XXXX still we the our to or on the includes be half XX, able million well be anticipate have Xst, XXX cross-selling organic from A XX% more. to record occurred XX range XXXX, EBITDA. $XXX to of billion been our clients, consecutive of This or expect

realized acquisitions when cross Adam Rudy full look careful a XXXX, our of and scale quarter As benefits in of and year XXXX we we of the the at savings additional second and adjusted first EBITDA take into seasonality, to we seasonally caused EBITDA account low we've which reductions, place. our revenue always. the year consider which cost put in adjusted normal the as be And

We are very his $XX full over comfortable adjusted remarks. floor now the our to Mahmud reaffirming our year turn to XX chairman I'll concluding million guidance. EBITDA for

Mahmud Haq

healthcare continued Bill. year this Thank across that technology their see I a profitability. for you, provide will for be another country. It enabled in to customers, employees growth and breaking pleasure truly and continue to we mind question is and support. There no is evolve the my yet business to investors, solutions our to like leading how record thank organizations would

to questions. now call open will the Operator? We

Operator

Ladenburg [Operator Thalmann. Our Jeffrey question first instructions] with comes from Cohen

Jeffrey Cohen

Hardy, Kim. How Good Bill morning. are Mahmud, and you?

Mahmud Haq

Good morning, you. Jeff. Good. Thank

Jeffrey Cohen

couple So the me a just moment. at from

for So bit as how maybe the channels multiple should could you're Thank talk out where sales the organization the coming at expect your it pipeline some force little about forward. the commercial and talk you quarter that and and far looking you. as we bit a about of from there, a and little

Mahmud Haq

then and you, in you more some I Thank for Jeff. give I'll Thank Karl question. jump for have Sure. details. the some color And can

activities. see steady deals. this first we with services in have sales a to up-sell to continue incorporating from the and these SaaS RCM key half areas and RCM of and The year to lines believe RCM BI to like always coming cross-sell included We

as still us. the We strategic whole acquisition, have year started systems. earlier and and the team door was this endeavor as in for star health primarily a more different the behind they leverage the is still have idea you connections more this established acquisition or are We that opportunity this building in new mentioned, the investing foot this last was more as further, the with and explained we this a and [ph]

optimistic opportunities So in space. with upcoming very about and that are we excited that the

be the basis, and others new based new CareCloud's that don't logos where been to force able and they I services. over to also the well team large the for booking granular and include using that standpoint we That's be many we quarter some building would home it's to logos Springhill while today, providing in think talk tracking able we on are quarter skilled notable nursing pipeline and assisted partner of in we on have of partner is you like team are we Karl living very numbers ones, to about the think earlier but FTEs, from the year, the company AR and we be And terms the facilities sales to will software the believe overall with mentioned the as booking mentioned. unrealistic have for there as with. able to don't XXXX, a of year. over will be average QX be it's we fourth a us by for twice have Force a Johnson, and of to at full perform XXX able we notable one, We quarter the we to force last closing have about our increase add? XX rate specifically the

Karl Johnson

I cross as in being growth growth should or we QX to We've by pipeline. in people that We hard significant hard on big very services. last been size and year working sales early made investment they've in increasing team. in pipeline of very be that firmly a selling the where with we're supported working opportunities, the our would the that are those by discussions We've the expectations respond been very of this seen year with. the team, sales

by mean I cycle selling in services. that what just revenue services or So software addition to is

in so we services, like, services, the why we to sales Thank credentialing robotic automation that really that ability for the Now think staff have there's is goal augmentation, coating reasons and strong add achievable. process you.

Jeffrey Cohen

on Got a coming it. services and you what seeing purely and you the additional a in you, M&A from coming pretty are might are which that accounts add for a Would short environment from bolt the say the is new Or or seeing revenue you there? utilization? be increase non on combination

Mahmud Haq

a two. actually of combination It's the

seeing also logos adding they're coming that a may board, And we're are have we're services the than what past. So in existing seeing services. in on to broader clients they seeing is using of new our up-sells we're range

Jeffrey Cohen

Okay. you're significant it. some specific uptake some or then specialties lastly, call me, that for there. in to Got more in, out any out traction And seeing

Mahmud Haq

groups, looking versus it, in good the looking specialties we're like I number with per hospital at but average think pediatrics. of to a that also very med with at typically traction larger multi-specialty acquisition Sr claim, revenue specialties of we've orthopedics larger had simplify

we're pushing that for company, ARC's and have as on Tangentially, make a fit. more good specialties Is we hard today? that any their, So needs in included in really that complexity a where us their that, yes. generate those revenue come and

Jeffrey Cohen

Perfect. the That taking for you. Thanks questions. does it for Thank us.

Operator

next comes Richard with Our from question Capital. ROTH Baldry

Richard Baldry

you of from makes they're Thanks. to the getting angles broadly volumes people consider? regard willing is you how Could are to different discuss to you're COVID back operating that seeing, of sort sort like them start normal back their much and to you either, normalized very coming know, may with few patient maybe you a feel looks feel own businesses seeing in, how which through environment, the more environment M&A

Mahmud Haq

under other Looking felt. aspects, of M&A like normal feel much their just how any with this can sort at an so so we not say operations, quarter let's distress,

Hadi Chaudhry

good Very you, thank Richard. question. Good. And Great.

the, few, volumes. me in of ways just a try patient the couple of different terms in let So a in answer to

the of back during when almost we, it's organization. telehealth court, across back to close different some of to or later And an what we at the us out the levels. slightly conducted trend should of more when pre it about earlier are more year we we normal, the mix might The, -- survey a for So at a our the I the and the towards questioned the little last we to now mix other the talking dozens and from be mix different customers looking in but be and from a standpoint. the just telehealth telehealth with terms close in almost look pre another we services, where utilization of say see post COVID, COVID to it's COVID COVID

one number participants and who It to during practice same to about practices up at reported occasional telehealth post XXth even speaks COVID, telehealth the and reported And it after numbers appointments. then that when the COVID, somewhere before the for organization's see, number thing total around at we pandemic. XX use. overall occasionally that can XX% And overall appointments to mentioned look was have this was numbers during their of about XX% frequent is actually X% So telehealth to before pandemic we so is went population. That that up the from use the the XX%, these of responded same XX% shared telehealth range COVID. went the we of then the to number the frequent of to

We are X% tracking around range. at seven, somewhere

results to to to or color. from the some polls organization, will survive a would normal, they said their chance some, back access perspective you who another there sorry, of that's and be them the the one are add thinking are down, survey this shutting When is Richard, except a survey open as all it well. do able of, will, practice CareCloud practice from wants you So website conducted thing terms And as either also that they about completely better. Steve for is to that even other like medical in then add you can get from

Stephen Snyder

addressing maybe valuations. question, for Richard, to as is factors be some part COVID-related to with prophylaxis I'd added of and to the the reality M&A regard it, sure. alluded I think have certainly COVID, Thanks question, Sure, happy the you your to. just

have the increased seen characterized valuations acquisitions trends some inevitable landlords including that course, the of by you corner forward. ability, proof investor of credit quarters, the a grace have industries about Likewise, or to, move revenues the think rather I really space. And enabled is of probably you're to steady statements as corner there your a this, see really strategy, the the been that in some and like you the the been could most exits. statements be direction you as think governmental impacted from and relief across investors of And you wait if the of related distress feel to a element profitability companies question also the companies. our companies of normalizing within couple extended has, together these the lenders turning distress if we we COVID negatively never things until But really turned if as and at if those types would financial and terms segments have financial in And in you've market, in and a have that's least some that has as back targets those we your an of within of are right state. been progressing funny with course decline of of company some the in in alluded that from companies, turned has you're our you for companies factors. seller, many like Of of classified historically

of have is belief who on distress to the many still said pudding, the types may were opportunities. the have it having companies them the there of they really for focus as on in a ability longer that that hold proof financial little our many we of for that until the the So will in many bit of again, statements, be companies

Richard Baldry

might grown continuing second year, How the OpEx follow quarter to much of it's stepped R&D If significantly the, which the you tied expected. trending half? No. see I more over the see allocation scale sort sort do and of that went strongly. then up, do How Okay, sales into actually that that I and a to looked down, pretty in trend of you to year and up. thanks. long-term there marketing the not side, change or Where up the near-term in percent then have into pretty

Mahmud Haq

So thanks, Richard.

sales to our can there's you frankly, we and emphasis So marketing, you, for revenue we've continuing terms in thinking grow and business. business, every we more know, about do you you results long are recurring people, as sales to marketing. sign to We put and no keep for budget And, on innovative we've continue you annual continue new finite a the team, spend, increasing as of investment mentioned, adding more intend in this. of told the sales dollars invested, as to that's dollar where where ways up deliver keep to new what

continue And do so we'll to that.

So, forward we I would mentioned anticipate that you'll the increase in see year. frankly, rest idea move sales the to the the in Well, and of way going marketing Heidi that they And as where in to from only increased you dramatically we're growing do more is our you investments. XXXX. were bookings we're be that be the to that need continue making

continue a to we'll of there's shore I a, are you So know, US-based are who going couple because our some cross here the on are do terms guess there's of off R&D R&D in onshore people are who of that phenomenon in, employees employees. of some

If bought after you fair think we overseas. about actually number right subcontractors had of R&D we XXXX CareCloud, a

cost in brain you that to leveraging visionaries, the know, various own integrating can cost-effectively to You keep are continue You what look why then, know, product that that? here back are and that we we that the but all controlling we've have, get technologies same the the dollars to work washer that a done do the and largely continue S resources, folks less, moved look not effectively and now, managers, we architects, U we that more the tasks to do say, spend the the can few at always results will team. to possible. our design as if But the trust we as we'll get

Richard Baldry

Congrats Thanks. a good Thanks. on Thank quarter. you.

Operator

Our B. from with Marc Securities. Wiesenberger comes next question Riley

Marc Wiesenberger

the, of with a percentage wondering repeatable pretty prior or relationship, highlight some business also the different I'm and operates customers Thank you. you the business type Good is lot of that recurring marquee of your med could their morning. model of than if works what under acquisitions. any

if we could and with deals. to how contrast wondering rationalizations forward going integration you other I'm that the about cost relative So thought

Kim Blanche

over Good Jay, morning, the CEO for of via the Marc. And Jay, you question Medicine, you. thank to

UnidentifiedCompany Representative

the to I appreciate and I'm you. merge CareCloud. Thank involved very be our Sure. with call. in business CareCloud with pleased

implementation can best have, I ERP the we vendors systems they're and four We and So business. of we just around have just system you all give healthcare clinical probably background that and primary service cycle revenue areas support equally. includes the,

operational Second it, services analytics. is strategic planning, consulting intelligence and business some around

capabilities, And been we've had a the but as Third revenue to operations whereby turning is always now their, revenue cycle over the some revenue space us. cycle a managed we are then of in lastly it it involved more practice well. services consulting support organizations cycle, that has with significantly

large City. the as larger in health some of Our community medicine hospital on organizations as systems, clients a include Penn system in center include NYU physician wide on medical like academic side the hospitals, variety health They New systems Philadelphia, on groups. side, well York the

New strong Some Boston in of of and Alabama our of DCH We've we're and clients. Western that around Kaleida group of big a two bigger those area. health is client got Meditech to ours. providing services are primarily system a health in Meditech in the York. community hospitals

organizations of coast variety wide coast pretty a it's So to services. using that are our

months the two moved rapidly have last to integrate. within We

services. with aggressively asked office you integration back integrate moved We've think systems cost of corporate. to CareCloud delivering about I and our

well all very taken that's and verse human gone it, that sell resources, and customer. significant for steps have continuously payroll, also revenue the guests, about and operations we've revenue So we the so gone The finance, recurring to and all we need our our streamline that relationships with us. to

probably we're So most time we're an signing contracts months that of but initial services for most customers that to six involved typical this our those of nine is basis, relations. on represent the

are year. have we that year over continuous So

and most but So on multi-year. different our of relationships projects are different client working initiatives, we are

and do acute and This And a care hospital applications for their somewhere while work to within organizations between support operation we within to managed us. management new the probably on managed services XX the the a of now number in space. example, we transitioned our system business to where the application. another legacy be doing the they XX% a of that put existing of in space. information have revenue bullish that lastly one are hospital cycle very we system they're contracts parts services also all we're over may of it represents We moving from turning And category, their we can

revenue where contract utilizing new two to is have that those for AR the And going we're about, management very we rundown, working into health within We be services are working did our RCM ongoing management as CareCloud with be client well services working a AR an traditional we're, aggressively months towards selling base. last provider into one behavioral cycle we'll relationship. our, with cross excited we're as actually

So it's it's a, we concept. proof great of a believe

community smaller for couple a to services. same hospitals the talking also are We scope of

answered within very you. the within, about that that hopefully So Thank position answered Hopefully CareCloud. optimistic question, it. our new

Marc Wiesenberger

helpful. Yes very Thank it you. did

the the, and that surprises early and XX, quantify final passed, the done recently was to effect how business, potential XX. no if act it rule impacts. goes into the, in impact wondering anything think with you've associated I CareCloud, RCM potentially could I'm

Mahmud Haq

question the for Marc. Thanks Thanks. Okay.

think we will currently capability are look right to now we And We we reviewing the the I we information and to think address into share and don't have any details. can -- I have all just good a material but those. of it

Marc Wiesenberger

it. Got

in lately. then if if one CareCloud, talk you. the obviously across And has ensure there's customers a maybe and you about new the needed to potential capabilities health big crime verticals cyber system are additional protected, for might current Wondering investments been final Okay. be topic future. me, opportunities for Thank ransomware and one any

Mahmud Haq

system we rise, in question. internal and monitor across last monitoring keep basically security practices who team have the continuously another traffic. especially healthcare the sector the addition compliance who across implemented, Recently and the standards on with industry been on makes the sure locally that and the to firm the And all been six the on the world. side in the and you're internationally, network external best data best contracted right. over It's over Great security or the health months,

knowledge addition addition, are in of protected. to servers and In other the that sure and conventional just way the the the making computers

there and network any alerts So they at level, in. even is raised, are if the jump the then abnormality, traffic quickly

it, raised very approaches, that anything too Thank be much very working team a needs Thank our concern them. internally. network monitored answers the, actively and hope and organization's they I So there's is if closely if blocked Thank but there they automatically, with entire do the is basically question. suspicious much. their is much. anything to to you us, you. is the And eliminate, now you that

Operator

Klee next from Maxim question Allen comes from Group. And our

Allen Klee

Hello.

member, nurses problems. market, that you decision hospital challenge a A they family Mistakes if a have information often different and the also involved lot mentioned integrate and that a advocate, all the getting don't who's challenged. big It's in maker. can to You've challenge of is And doctors there's is who's of getting the correctly. the all there. an happen

that? anything is So said on that work to try there can that you're that that looking or doing

Mahmud Haq

Thanks the and for question. good question mean I great morning.

hospitals, from for for in years. XX terms think health I the the number we have IPO the operations the with them. of the or of companies, existing by day-to-day part acquiring to RCM different so been last standpoint who technology of working some be these And smaller with our, a the, partner systems of we since standpoint, became have solution of bigger health number system, especially

single perspective disintegrated a, operational every a rates come the of of look hospital figured for okay, decision the AR case. So one hospital, the bigger the help consolidated where from are any systems to we issues health at of provide how where yes, full to virtually to can implementing we to within come is improve we a pieces for these that their, system, examples an we it's on. have task systems the and technology it's come and revenue and but their in try and at Both cardio eliminate used. redundancies. so we have just very many that's a Single We helps. example, literally things. which example disintegrated NFC customized sort being to almost with many performance used. And a them from different stream. denial we of with generating deal system being a system need up sit our are improved of their overall many of There an back basic We is best between the of, can And out from solution, we here in to significantly the RCM, we the where go on standpoint, of look them to to so and and the improving

we stream, area. specific consolidate take from be if So that piece software the to one example, a have very cardiology. is other a from a custom from developed they of there coming anesthesia two coming for conducted a and it, procedure, using Create surgery small claims,

very that's is it, a and those our how add missing basic is value. if So start flags one example. we very, either to two of system This simple

problem even be we is of was, point though we these front lot in them, the have earlier opportunity have that of standing these capabilities. that Our finding to capabilities,

us that decision can the team, can so are we And sales maker the that these things hear our from from do.

really, So made that's this believe where Sr will we be relationships

Allen Klee

if there's little Keri med look would bit just side? I might you or color ISR of on the the that do answered How on a

Mahmud Haq

automated just XX large a focused not within they patient better, processes leading to good our the system, using last on we've now better our provided are information not and clients use experts health but leading they've technology. for working One business With for Maryland use system in entry we've a clinical area. our effectively outcomes also different the technology years, sure, adoption health are more with We, the work representation that on that clinical traditionally of the and care last for more their better experience. technology have segments system, the physician project done really order think coordinating a kicking solutions. clinical system the effective effectively over user of and feel years, and Virginia, worked providing health with with been market and all the the technology, but with clients services have and They've, long-term in in aligned our off with our that that and technology I the the we're is documentation, clinical consultants XX of wide segment, certainly enabled of

patients back having center, you're to So for, contact long responses waiting a get for cetera. too from et

to again, experience. improve more effectively, them will with be we to help modify working patient use processes technology but the them their also So that

think critical need. of working we're forefront right the I of that So at that

Operator

Thank much. Thank you. very you

comes question Kevin, from next Our

Kevin Dede

brand to that position better a in Maybe you how hospital give partner firms on a of examples and addressing growing, few us CareCloud see I you systems. that Could endeavor. elaborate Put within other that with you guess, that?

Karl Johnson

Kevin. sales I'll decision force in, Okay. And the is in we same who let Thank you. I that deal to called challenge one on. with with is over, makers, always, I but getting the of we, relationships front so you, hospital recreate in we have space, can I the mentioned but health the just it traditionally believe I across Jay are Thank these it this that to just take have historically we've in systems J&J, but jump please. working want what Sure. our point.

CareCloud vice traditionally AR we hands-on around executives supplementation staff for revenue on of have and called med the working discuss with cycle, the outsourcing. teams the cycle, our management now ongoing the challenges and the officer the capabilities officers, chief financial ongoing we information to revenue association, of with sales has it about consulting with on new them operational that and management, then are cycle So optimizing actively president call revenue now chief the

has a the financial the one area of it fine move introduction we with services one some good CareCloud cycle it from So and of the clients to that of space, them. has revenue the from our discussions CFO introduced the been of the got the client VP into our ours, and our to got

of And or in discussion wind still their discussion cycle had RCM them in move the we have agreement entirety to basis. some put or to the or AR performance CareCloud to its So we're help ongoing is down process old they an operations improve continues that processes some move in there, an on their parts where AR crafting on revenue as them do in relationship. in, in phase well this part accounts as that ensure to

or on So of all singles community of we sites are clients. lot model know, aspect. our hospitals a lot or, it's you for the within performance a, cycle community believe revenue our settings a it's in success rural A struggling a with

of at our this, advantage a or a take this a So capabilities combination definitely this and at them solution enables technology of cost. reasonable, reasonable services at to

fuel something the for that believe that significant And a do you we we So question? how it's ask to is Yes. going growth us. can,

Kevin Dede

that at sales you're this That added entire you've count certainly but and you've Hi, helps I'm and CareCloud it and given across how advertising. brand the the That's promoting it Kerry. in growth, head Thank point. count, budget? marketing clear, speak obviously embraced sales you. more right? that, Hi. to That's across that it and specific that fact head the see curious to country specific marketing advertising you perhaps or you're to to not Can operation,

Karl Johnson

for specific Thanks hand bill numbers. for, the over and the I'll Kevin, to the a Great. Sure. to in minute question, in now terms of this floor

I right. absolutely think is Tony, your point

we the the the segments the cloud-based was earlier today customers serve. represents to was in was this we that all providing who name thing first name for and And The to us commitment change to and CareCloud is the year. reason better are rationale solutions the our

today, changed. very and to revenue think it that have, to we feeling across important mentioned are perspective industry. point, our have even about clearly this it's we now description the from as if message And, even you bill we we think I your very get line

have confusion further. the about revenue the talk SaaS, little We can any avoid details merged cycle of those we and bill from and

an of engaging We are firm. process PR with also the in

help on not areas have merely making the time. not change. to And utilizes changed if making PR matter practice different the changes revenue these I who the helping the are. comes, the name as to to professional if through now clients we their, services. for changes the either hitting it's technology, about RPA who over of apps BI precision across, from today certified time filings the numbers but it's I about QS the EHR And patient fact, of it's, XX% calls, using either different of it us revenue in is and more there from the address to or one the comes a, it if of the others of as to this talk just which core, system to the who and IRP and all and of different all half from, for components a light. message such when components. solutions the the appropriate now at coming website, from the say first engagement a X% terms and crystallize from we look earnings It's to management core ESP comes of So from as of our changing And over And get right XX then the so year, from the our are system people then XX% or and we from the the technology is overall revenue, client

about is all revenue related. it's over technology So XX%

of think them and the where we're having inn, going what going possible to use and But every know, we're Bill, terms customers don't you how letting that's and in it. that, know, So business like clients spend would we we're improve than you and the that customers, airplane any of share, XXXX, and said please, an doing be exactly customers. less in that cross-selling services. probably on people know, apportion the an with by, say to message of we'll think on the visiting want by you the, to specific way. maximizing additional world potential their giving getting you working we're, focusing marketing, engagement to we there's on opportunity we're to of sales numbers in to in share specific I numbers, Other

new variety to company So, been that I'd time say get something on. culture guess any a for trying you've, that know proponent you brand. the whole a And long is the Kevin you've things. single a idea you're focused a and to know, It's And, I it's of that a we're, always doing of And brand that long a we process. while. for, we're

clients. So totally that concept it's benefits well. bringing think we And, we've our to embraced that as that we and

Kevin Dede

you, questions. thank Well, entertaining gentlemen. the Thanks Great. for

Operator

session. that turn additional marks. or Blanche conference the this like At would today's to time, any Kim and back question for And to closing concludes answer I

Kim Blanche

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

Operator

you conference. today's That does for conclude We thank participation. your

CareCloud (CCLD) 8 Aug 212021 Q2 Earnings call transcript