MTBC - Earnings call transcript Q3 2021

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Operator

Welcome to the CareCloud Third Quarter 2021 Results Conference Call. Please note this event is being recorded. I would now like to turn the conference call over to Kim Blanche, CareCloud's General Counsel. Ms. Blanche, the floor is yours.

Kimberly Blanche

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

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

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

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

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

Hadi Chaudhry

and to I'm and marketplace. this another Good XXXX in XXXX you, Thank CareCloud breakout you welcome be be care holds earnings future our out share how year with optimistic to morning, turning to delighted quarter continues and is what for excited Kim. and dynamic and us. call. large excited certainly third to for here this I'm to health morning, for us remain the incredibly thrive

another that had In record-breaking the to I XXXX, third terms of report am we pleased quarter. quarter

the customers of health for a the Number our reinforce to could addressable products; us we four, we this new to end some additional This expanding as that out excited achieve have work to these number we out we what of crystallizing we're helping of we gold. into set would accomplished to brand them thus revenue execute of an set would lofty year, take some fiscal As few initiatives against stepped exceptional some by X variety to out a worldwide two, historically you. against Number launch for company us serve. important innovative employees while was and these disciplined to our many types track Number in set our are and and we on market record maintaining incredible continue tech approach. to accomplish market and of to execute it to accomplishment, for our like minutes position. profitability position committed customers a and while year. into insights all and far. of in provide also our thank say to have moment we already our achieve three, like a your I important is I'm to ultimately and and this and and to I one, take color care

terms with we have revenue achieved In of million another growth, revenue. in quarter record $XX

combination drive approach levers continue system of position expanded disciplined that. technical, by quarter great an -- partnership, new continues in cycle revenue important staffing growth addressable better hospital that additional is constantly revenue far a adjusted to done and given third products, we It have variety we approach that acquisition I'm happy us and seeking our been position to once through place has to is through and quarter-over-quarter. organization. innovative us accelerate revenue to that space. allowing report add our Of care market maintain us evaluating for us that we We competence on-demand, means. to $X.X our a market again markets of our complete the has source for a ability a whether consulting to through the to growth as fiscally we It addressable in addition able and million the to has and an just that provide services to health health allowed and to This our but key ways year, execute of to software our XXXX. on and achieved us pursue again the had different EBITDA, our strategy, This to record-breaking to adjusted EBITDA acquisitions. succeed opportunity expand proven

in making, the our to exhibit. are they progressing continue medSR to and great is the continue efforts We be leadership encouraged the integration by manner which our progress team

business. aspect this they leadership MedSR leaders the the across addition needs of as medSR of announced in the helps system as we dedicated additional new execute of in themselves in. rounds of clients and growing In health appointments terms out executive leadership, resources appointed normal our all that support of well seasoned has find and team the at executive us recently changing every

CareCloud and in industry to organizations appointments care as ideas, integrate, further and a for amount important of Deloitte Consulting. transformational as Operating promote grit to to who Consulting, veteran like for Chief our seasoned depth Chief Athenahealth, brings capabilities, prove executives as Officer a health and appointed as we the businesses continue bringing of vast Santa cross-pollination worked bring Cerner, help are and medSR, the we at having Officer These new look a Revenue additional Rosa additional seasoned have We a scale. combined new while knowledge

are industry-wide to to shortage extend small and large and These to hospital they integrated to beginning performance Our both company's the gain and alike multi combined turning in CareCloud care traction clients workforce setting health offerings and systems. pressure EHR platforms organizations prospects on experience are optimize facing RCM workforce and to with improve their their access to while patient as integrate strive an revenue. increased to the regen

but the have against past, execute leadership takes time, we robust position deals and us position, these believe I combined our to mentioned our As in strength, strategy. well that value proposition

our believe upside expanded solutions strategic effort made of acquisition, universe we have nonrecurring provide through downstream. on deals can we medSR the to as significant a revenue these they we As focus conscious and

have to as types due us our into and upsells great but long-term incredibly we have new we bring history then could is deals is to customers and through of expanding speak, in currently convert us believe This a never portion seat time. they are market that difficult, revenue gives in We and in on foundation a later into expansion focus ACV cost-effective relationship of are these this deals opportunities. Selling These onboard the in set prominent recurring contracts. at such we and to pipeline about excited clients transformative need confidence table. incredibly significant cross-selling our so and the time our allow the door, present nature of types contracts it these foot takes to in had the these on

work sales this a are making hard at reality. Our team in

In team push in segments across of our and continue win the hard fact, business our field. and to sales units all

and million we X XXXX XXXX. in in about compared overall to of spend, first $X.X in $X.X months spent of terms XXXX, in million $X.X In and million sales marketing

As we client to can cost. a sales will long acquisition as spend marketing we continue have in so said, we maintain and healthy

continue capabilities space. we fair new technology network to call will innovative year, news. only of technology and been integrations. market how have and can to digital our our data of remain portfolio. significant be would suite, also large capabilities a care today relates our innovative this to market Earlier on technology problem needs. mentioned expansion partners, that but we also and important integrators, our new will continuing unifying we discussed this and quarter, it working and launch and it We With potentially vast in of conductor. a product later some internal to our not the focus our exciting we other does been this about ecosystem It ours. of new products To assisting provide health we our service release, health we addressable R&D only care new across had our on technology This even scale us customers to talked and systems current IT cross as more market give I've solutions just be while us and focus will to health will care announce adds and as end, system teams as am that not type out now including health Let's before help companies segments, even but vendors, technology an that us -- the serve. acquired new systems, This excited we enterprise we that. in those expands when platform multiple we how partners, additional soon platform, I platforms, rolling our on able the working assets across solution to integration expands business reach significant that partners

Connector the health of strategy CareCloud organizations a solution improving increasing As be to that providing market solutions develop product to real-world continue Conductor interfaces, thinking, think for on in libraries words, single of their designed of integration visibility CareCloud care We other our new suite and is to this and systems, a will new than transformation, or to usage, its award. as platform is work family to manage tools as data Conductor about partners and this solutions. now well this connects suite. call stand-alone product, and and a Connector. vendor that a the first We of a IT for see CareCloud product. technologies, clients we these interoperability, robust data suite together Later solutions exchange, management, CareCloud as are these control bringing of connectivity library quarter, It for and more ready-to-use rather a we for within own.

manage to business. -- to of IT With to care management know third-party connectivity may easier need was be for choose health cumbersome we For tools interface required this and systems, and example, significantly with proprietary several host order vendor for from, labs, true effectively to complex or today, management like an customers of needs using CareCloud console scale. incredibly dozens multiple many of the these and centralized as in solution We expensive. our and making libraries with there to interfaces one internally enterprise built is the our centralized Connector, hundreds the new multitude making client on own software software, systems and be to integrate partners, own manage this

look problems offerings of some an to and knowledge and we competitors we that ourselves. these decades ways and lived investment, have to to of it market. is for other these solve the work opportunity package advantage We to culmination in versus have it and bring have needed that This now have

and we and algorithm stand-alone proprietary collection costs, reduce the rules organizations be new suite, the suite, for a products billing part of semantic that health the changing sets and CareCloud administrative rules powerful stage and is year, automated transmission will including rules engine incorporating regulations. care and engine one-of-a-kind brings CareCloud our Conductor CollectiveIQ of new CareCloud other introduce an care and help of As our improve market. improved collections array that Conductor stand-alone will CareCloud Conductor product EDI schema flow, stay a within solution. CollectiveIQ transactions health the engine. translation a we cash ahead advanced into builder our Later next

us opportunities as data new boundless to we believe these very and and excited for the and it represent to during giving new exchange they about opportunities relates as could the integration acquire. capabilities while it are transformation, system interoperability, we companies phase may pursue see unlock us with advantage an markets we our We revenue

metrics recently, making country. I'm nationwide with as are impact the customers delivering real patient meet basis. technology-enabled see across providers employees, our our to like our mentioned just firsthand drive a from this quality specialist medical the to and when opportunity humbled for clients. to interactions on is clients come to on thanking me nationwide. more experience post towards our mission to with by on Its case, been continued their technology the XXX,XXX line. in bought and that I receive workflow a our life. have company perform always deliver systems team customers truly recent work and our than incredible we leading great had see opportunity I daily they continue care us us investors, proprietary improve communications team It have team one of better we In practices focused I and customer significantly energizes Lastly, for our analysts, able large a enterprise RPA CEO, transition to I to Most the and how the health has a hard this the solution and sizable bottom solutions the

remains complex and additional meet customers mastery product our environment. health today's we accomplished through customers. of to our platforms And prospects end-to-end in the required build and portfolio course, to changing purpose of highly design as to unique as have in we deliver care capability as of of mission solutions our our this well Our software part to customized and order services our for needs solutions needed comprehensive thrive

with us deeper work market continue to and like to that presence, may will market care companies together our position, on the surface the our health emphasize vastly truly that of a in I a and as taking look. hard are look discourage distinct ensure upon lump different to In that leading notions crystallizing but other position strive company terms us we of technology press leading

that companies market, sizes. to patient fortunate are of and experience product, the certified is deploying for this organization excited take is host for granted to and host in us. we'll a now pleasure platforms, do a of care ahead, bold to my solutions, the care software Officer. and small just continue We health making We of its all position amongst be our IT continue ever, other health the again, leading in and the management with including bounds new Steve? forge Chief I turn few to records, legacy break Once health what report proprietary floor it Snyder, services technology of moves. holds I'm management electronic entrusted will for a CareCloud strongest future software and over and to Steve Strategy practice not

Stephen Snyder

thank again, and everyone, call. Great. Thanks, on today's Hadi, joining you, us for

provide often more of to regarding our to XX us. for in During individuals entry innovation, about mind, minutes With turn some do our like the markets. third universe that people few deeper performance generate who decades to background company's that, purpose, heritage we'd learning amongst our it's third new dive story into our we'll After public to growing we new and anniversary. story, a take X that in and the interested into and were step short in excited and the financial quarter, investors quarter. behind celebrate very technological areas are founding our us, a of X namely questions our a our truly interested back to privilege have year to a still With

First, story a our origin let's for discuss moment.

partner for unmet market his became care search as This are revenue to founded customer. our who company, a September outgrowth first medical founder, new IT For our the exhaustive XXXX and for a in health Mahmud practice. our psycho wife's direct revealed are search need in wife of an new management we and Haq's those Mahmud's

business with to been them integrated, financial, to together Our by mission from software equipping powerful solutions. achieve their care day innovative, full has providers and health experience potential one patient with empower clinical,

the more internal practicing unique serving Jersey health from XX in approach us one across than Over has X years, medicine this in than New provider to XX and more subspecialties. providers states care specialties grow serving enabled to last XX,XXX

and a about the our exciting team, journey, entire more lies it's even ahead. we're For been really that enthusiastic path

moment our From start, technological innovation the for let's of a focus. our Next, been a company. innovation talk history regarding as core has

service and cloud-based of business, portfolio systems first actionable had growth. last In industry-leading this records years product that together over insights XX of support health and cycle solutions fact, drive integrated to within management, health versions platforms. and electronic evolved entire software with already tools in that the our And we patient tools care X the include enable and launched providers the earliest our years, the that application, integrated practice revenue to optimize experience delivery, gain across spectrum management

innings innovation we to the our early to Hadi squarely continuing we sights in on As come. set years believe are still in explained, that with with lead the

decades We their users to for drive have and innovator continue tech-enabled designed growth. empower will potential, are we been launch to that achieve turn, a full believe, solutions continued in new this, to leading-edge our will and X

the issuances readily as the completed symbol for time new NASDAQ footing. handily company our public stock price, nano-cap X-year alternative XXXX, Stock, gave Perpetual Cumulative which XXXX, view symbol at of saw to lingered the IPO under per of consider so capital in supporting our to our issued our major in find in at it XX% growth. MTBCP this birth stock enabled in elements we through role our time, young $XX we below us to This be market, indexes, to in November cost capital outperformed at took Stock to relative presently capital the was the current markets Series The attractive share. other a under of and our and are less the initial that Redeemable but some raising and growth has stock. IPO saw to common a the as returns, stock. Series those let's a A Preferred apparent new of redeemable historic which to And we the may continue to follow-on preferred is Preferred history public Stock story, our value critical benefit a listed in growth MTBC. our first terms. as Preferred entry our played par Series briefly of were what and invest our the discuss also we're key It on Finally, The common and A XXXX, A very trades rapid you into who We our be not explain dilutive

However, our toward time exercising current the our appropriate. to as A subject intention, reduces through to that of which, Preferred a redemption is over when change, Stock rights capital is pivot of role and structure course, Series our

of amazing positioned days XX we to of timing is that the as continue an years focus privileged manner believe our as and to continue remain achieving to decades a that move and innovator While to market our areas best we're will lie come, key where we we growth started has ahead. well obviously still company. one a and and we been and determined, are we be journey, redemption are leader very a convinced this absolutely for conversation. of quite the have many Moreover, forward. Returning disruptive innovation to to of to This be

Korn. our turn of floor I to XXXX. third CFO, our performance quarter for Bill? attention our to And the the Bill turn now Let's financial over

Bill Korn

Thank you, Steve.

CareCloud's previous income, last or $X.X quarter third and from Revenue quarter above the record was ever increase all-time XXXX with high flow record XXXX set Revenue XXXX. record income even the of $XX.X XX% from debt was revenue, operations. record third-quarter quarter. an adjusted cash million, of third for our GAAP EBITDA, quarter was million XX% net mentioned, best adjusted record Hadi As

and Our to than us and combination revenue run of $XXX is the a our which allow our industry. growth revenue. above XXX% to is through annualized that million, above XX% growing strategic faster XXXX is continues revenue of rate proof now revenue our XXXX significantly organic This grow strategy

million net Third-quarter in a million quarter loss XXXX. XXXX as last of compared net $XXX,XXX loss year was second the income same of and period in a $X.X GAAP net $X.X to

at in $X from While sustainable is of of operations is great look a and our we, way, growing EBITDA over amortization even profitability milestone whether management depreciation as business $X.X cash expenses after non-cash team, million this adjusted flow a of progress. our well GAAP a million primary including as quarter, indications achieving and positive over showing the

which Our stock loss the the $X.XX GAAP third record share income net loss common attributable is quarter account $X.X shares for was net per XXXX outstanding. quarter. Non-GAAP was a using or per dividends based on the $X.XX takes million end-of-period during shareholders, net the into common to declared adjusted share and calculated preferred

quarterly non-GAAP good that many payments. non-GAAP shareholders, attention which flow amortization, net investors exceeds expenses income non-cash the pay a to is income dividend we adjusted Our depreciation indicator dividend adjusted like pay metric to. net and our that cash our a it is preferred excludes exceeds operating Since steady-state

quarter to for XX% adjusted -- compared year. our revenue period XXXX of EBITDA third the in last the same Our million was million $X.X quarter $X.X third or

was months $X X XXXX and months X for increased an adjusted than by of million $XX.X months million, part in record, XX% revenue during XXXX. record. quarter and businesses million last $X.X previous savings from large to EBITDA XXXX, our EBITDA the XXXX was first XX% by full from Revenue for year, from the quarter, just for less integrating last Revenue all increase cost greater of compared XX% due new Adjusted of million revenue XXXX. acquired set the XX% of QX XXXX third first XXXX. full growing to X year our than we of $XXX.X from a from resulting Our year was the approximately for

X $X.XX attributable X net income of was Non-GAAP For the $XX.X per million $X compared $X.XX of of was XXXX first first share GAAP to was net net for months XXXX. GAAP on of $XXX,XXX common net months our net adjusted share. per a to GAAP based million months the X XXXX, or in loss first loss loss the shareholders. loss the

an During X for XXXX, the $X.X year. XXXX last clients increase cost was of million, is continues technology as from previous from adjusted of clients revenue are came full one and such clients and our million of management $X.X IT XXXX, our of or in our $XX.X $XX services, months EBITDA greater months of year-to-date year-to-date medSR, utilizing period this million robotic was fraction to revenue which year assets greater using core of comes of grow. or X clients health and year driven majority and than suite. period, processes by XXX% is process technology XX% including the With our intelligence $X.X the our from from electronic technology, use XX% XX% professional million of the where directly from same our record which utilizing for is from Adjusted our software, of million The reflecting XXXX savings revenue, component of first revenue XX% software our than business full our practice technology automation, technology of first using our approximately full we the our our providing quarter acquisitions. vast our revenue know-how. EBITDA

year-to-date of of from their year-to-date providing other where we services, of medical just approximately and from revenue revenue comes our X% our from we technology where but not. our revenue is ourselves, revenue are our we're year-to-date X% X% entire services. Another using managing cycle management are clients clients where came are our clients practice,

will you assist XXQ, this are, large serves the this the market see in believe group we an space actually our addressable of diverse better understanding revenue technology market. and in we when a clients a You'll that incredibly read company care in who health breakdown

including had approximately restricted XXXX, XX, the million September $X.X of of As cash. cash company

flow quarter cash During approximately of million. from XXXX, operations was third the $X.X

networking XXXX, XX, on $X.X was approximately September Our capital million.

We compound revenue grown over of achieving are after last year, our we've growth XX% annual year a the the X rate way proud consistently years.

we approximately pay $X.XX great was companies a this a vehicle XX, stock On had monthly we growth. Series stage non-convertible now ways to cash covenants, per record for preferred us public stockholders September finance X.X approximately preferred achieve. can a million These growth and the XXXX, dividend evaluating start but Stock are shares shares stock few a to A it track achieving restrictive options redeemable, common Preferred without Our outstanding. that in next several the are to of is our prepare of accretive that redeeming share, of

record our over is impressive consistently matter metric years. track of pay real at compound Finally, our our growth attention last profitability appears, track investors record EBITDA to. of a growing no rate growing revenue XX% X grown the the how should adjusted We've annual

Chairman, turn your the have comments. Mahmud, to to wait As confident stock, appreciate common are profitability, we reflect concluding to stockholders. and begins now for the increase our our of this growing the level redeeming over to market reduce will opportunities his dividends will we available start while floor We preferred our patience which I'll the our earnings we for right time.

Mahmud Haq

to a Thank business across and provide country. we Bill. is technology-enabled evolve see continue you, solutions truly the It to to pleasure care health how organizations leading

continued growth like employees support. continue and fortunate to to be profitability. and to customers, are We their for for record-breaking thank investors, our I poised would

now will to We questions. Operator? the call open

Operator

our [Operator in Jeffrey question Instructions]. Cohen Thalmann Ladenburg comes first And from & Co.

Jeffrey Cohen

limit X. I'll So, to

TAM? discussing Hadi, firstly, from talk in It's us could separate TAM new you call, talk the and little conductor of market were suite So this exactly for earlier a that to new current you new about or in and I market markets unclear incremental the specifically and bit guess, that's in its what TAM about some elements please.

Hadi Chaudhry

Thank the Sure. Thank question. for you you, Jeff.

of to the one -- buy like elements, Google the Excel, and such for there Word, Microsoft and can other Workspace exchange, can and this Conductor, products like all, entire interoperability, of of or this, even first you piece small suite CareCloud it. or transformation, connectivity. data consider to Think as you Just, can is can of about technologies summarize be family a a Office, there you whole buy Microsoft suite Microsoft are it

the So in and the the From we connector. it the we be you, can the one strategy then on of is Conductor this of what website and on some communication, But the our and understand perspective, will help and quarter. the technology this -- to simple does the the with is the same in this product, we'll of the maybe terms what example keep a suite -- doing still pricing for later -- go-to-market finalize I launch are launching share whole the that working is first you if can work. in and and

with Quest, Let's ABC to vendor another LabCorp, for with a example, interface need system connect another vendor. different an interface in they billing at say another with company, to an the lab have there or same time, is create on create EHR side with, and one

in be for specification LabCorp, world, so so Quest, need on. different Quest and LabCorp, today's with developing and individually for different So and requirement requirement they specification with to and

go get it's needed will that's we it's a development knows needed all the monitor So have vendors, created my is the then fire or edit created do turning we the of interfaces which needed. whole we that can created XX and set an on years if Conductor, it's time last if which based of and already what interfaces with need is interface different they a will with HLX, the only a an interface library. user then Connector It where create us, that need. those, up, interface to not the packaged application give other just And of lot in proprietary a when have in And you are then have have get with we lot they created of eliminated. a specification experience, on interfaces software with all with many labs, keep you

and be system time just it on one -- can be interfaces the of that establish we the that significantly other It So our concept. it a would will come context example. that to those pieces interfaces other with and end keep and adding -- cuts is CollectiveIQ rule-based similar

other us to the that's optimized whole -which have and companies. Of over -- So pieces health experience, vendors and now acquiring care succeeded integrating this that and been and have behind it for All in use into time things the internally processes we're those our and library, make we a it. and helped ratio going converted in the industry. our available the

Jeffrey Cohen

helpful. Okay. That's very

the a of So ancillary with lot TAMs there's it sounds associated software offering. like whole

focused on would of set So far as platforms? you more with there an do out Or see that, as audience facilities pronounced different that your larger current customers? be a or

Hadi Chaudhry

even that companies, health companies, digital RCM in some digital this the if And to cases, EHR others and be useful large you what IT the of system towards or they or space, care many, many, to want include in by ecosystem as internally. customers' own, the their More clients And of software it the -- on software existing we for and companies can you give even view, absolutely, can focus new be enterprise-level will the their care some -- think the Infosys, own that have connectivity and and partners, focused point piece from the or themselves. other don't health many, which practice many about such Cognizant, creating build who start-up, company. health management health some integrators, vendors, just all for solutions

different So for staying this completely in we addressable but a care that shooting still will is market a health prospects the the different be audience, space, for. us changing in

Operator

Our next Klee in question Group. Maxim from comes Allen

Allen Klee

Can to you how organic talk a your how think revenue was much about little bookings are quarter, going? and how growth this about, with

Hadi Chaudhry

Allen. Good question,

specifically from terms you some booking our of companies do CareCloud of regular the or quarter-to-quarter the it you give that -- combination like as a growth and group the perspective, the the organic, Bill, sales, color? more and from to know, In acquiring kept is the organic basis our from would revenue of but number we not disclose clients, we integrating. on

Bill Korn

Hadi. Sure,

to that than out of that -- So billings. year, usual. XXQ Allen, a got record seeing revenue we of all a great and comes of less full you the this But X back patients you'll a saw contributor saw afternoon, as throughout think full were read we quarter the I quarter first increases patient which that volumes revenue think in see perspective we've practices lot achieving even a had certainly our general growth. start medSR, yes, practices strength, or We as in quarter to I of we a to was few the is saw from

of revenue important the an been quarter. aspect in the growth that's So

Hadi Chaudhry

small thing. one add to just And quick

practices of the small well. as fraction also some catch-up a So be potentially those, for could a

been Let's say conducted now now. have performed surgeries were some surgeries have that the those of -- on hold,

this fraction have in number this practices part quarter, or a of of due So quarter it we seen in see catch is even revenue a the to additional of it there. up

Allen Klee

And M&A? your about my of second potential question you is, feel how do pipeline

Stephen Snyder

they us the for care M&A been in also fragmented. both focusing markets leading and of the we years to and of years are ago, right to question. on like think course, initially true, that consolidation that highly continue today, the about edge We that thesis really Allen, Thanks, the most we've cycle market, think this back just we ago. the one IT on begin acquirers holds health XX, for revenue as were drove XX which if be the management step is XX thesis And -- active space. They

always, in continues overall of an proactive perspective of approach, same before able also which think that so, really forward our But continue very one in disciplined we be accretive for kind best we've and I approach, reason been the patient select at them a overpaying to dozens from a we acquisitions with. as our able do we of terms valuation. really token, to to we key So acquisitions, it avoid is positioning been we by our attractive to move and to identify really be acquire companies review very approach,

feel proactively integrating really and today, time those at the focused overall perspective, opportunities, publicly we will diligent it. the companies to market we'll looking again, as So improve it while while continue where pipeline details one acquisition really continuing we on of to but about have disclose continue not wait we're really tech today, in seeing continue focused innovation, disclose point we We good efficiencies don't remain course, as we're we've acquired, overall identifying the the and for we'll opportunity. the but right a in that's we From about the we, market acquisitions. of in what we terms for to continue to be patient and think on profitability, be to and

Operator

from Next question Marc Wiesenberger Riley Securities. B. comes in

Marc Wiesenberger

the about with burnout? personnel labor US the of and that? market your overseas dynamics other address opportunity to talk of position clinical some the you and And workforce Can then

Hadi Chaudhry

more perspective some do steels here, and of we the lack era us the for offshore that do you more our plug please? see, question, opportunities And burnout and to onshore works resources a and the space, Karl, over after with have space FTE comes basis. in X era, the even add of the But the more to COVID Great has the started post of to the there. booking we deals, of in this system some the the as during right the opened where see not provide your especially health I'll more force, would like with on services him when Ron. shortage point, details we or more opportunities can who door minute. that only it acquisition to to then Force called COVID mostly have in and work the from floor CareCloud up combination and the turn us the with in resources the yes, we of medSR the to to We

Karl Johnson

to color little more Thank Happy add you, Hadi. here. a

requiring in So not and physically, systems are Many returning hospitals to to across back large we've not the return work. people people certainly, employees the vaccinated are choosing office, what to board delivery vaccinations. integrated to as thus are seen looking be for

for The Force. be is an and to that's has created increased it where hospitals, people played on-site, people looking are a large opportunity interest big to into for just work thing second remotely organizations in

in end to, work everything and We're where and can systems, that from host can So lower ten own up that on one, we start started less able number last days. that, opportunities we end we've days, already the we're on our number the of the people's to a works systems. high backfill. can top on been be workforce in Epic to that picking able to in On come did deal of eclinical than provide XX

trained, that. able in And provide to FTEs that already we're to provide already their so system, able and are working

plus that helps. our that line has people, interest take unable created RCM find step think and services, to cycle, in smaller but who we in other systems. medium-sized it a practices a you. a billers, CareCloud big an for medical both people's back-office and it's increased Thank that product problem in the that's and been Hope revenue in are further would similar So that I and Force, say also

Marc Wiesenberger

the an helpful, performance you. the updated the Bill, thank quarter, what Thank then, hear you the and any for previously or kind on for didn't about in of range? guide about to relative the strong third the with Very And for commentary I the fourth revenue think you. how should real provided think back quarter quarter, we line top as fourth

Bill Korn

I the to this like we we Good we're We of of question. strong. have need numbers. We've didn't to updated great year, talk quarter. about We're And close had decided at adjust this a point felt feel revenue the to we guidance. specifically the a specific really going results confident end year, set not say for to but the blowout really

Operator

Next Capital. Richard question from Baldry in ROTH

Richard Baldry

not I'm curious, It of or was like not model if been. had dramatically R&D spending because my sure in sort than I lower it I'm mistyped looked

Or sort I'm or there's the curious, new that? behind of is sort of that completed if So like level driver projects reversal with a this if something accrual? some sustainable or certain

Bill Korn

things number of continue work think of Sure, that's to R&D products. CareCloud a the as and lot continue integrate putting new be of Rich. team picked developers The great Meridian, to I know, into who there, a as up we one we you talented

some which more accounting in R&D that the from that definition. be what expense that and gets production, hit sort the of the is forecasting moved third-quarter and line. so for to And hosting first accounting systems had capitalized you're look that some with into that of line probably versus actually second. as also I at than know could boundary, things think operating R&D rules so some Now GAAP the would the R&D of P&L, we sort quarters, into cost the third it say that quarter was with accounted you now was direct cross expense have future going and assume changed probably numbers going cost you forward, I that of There as gone that line

the of that to additional opposite that cost, some observation side you'll with opposed that Good there. expense as is, the some into of see the moved of cost of cost direct sort line operating line. in R&D And hosting

Richard Baldry

are to products Or versus how broader your Maybe sides Okay. and a motion Is of you Do to with broader you services services of faster sort sort or alter? how you've which you Thanks. and which meaningful of go sort pro revamp basis? products Given tech target growth How customers? question. set your now, much that fine-tuning any a RCM an abilities. got changes outsourced of there will to it? a on sales that organic market, spark we really have services as go forward could

Hadi Chaudhry

Great. Thank you for the question, Richard.

those neither in opportunity it. for position go position I and of for it started, initiatives we that's RCM before And to we revenue nonrecurring able If last after importantly, that we MedSR, initiative first whole to yes, giving table you at organic behind to seat were focusing MedSR to more was those in will the very the year. deals, good more time, system a the question And was and changes where fight that that's out think recurring health the to alluded and be reaching last point, we rationale to you in when towards year, acquired about for it, a and acquisition the in in market and add, one was, sales strategy. the the aggressively us was also the and thesis readjusting these recently that if but revenue the as that overall we and go think be of on opportunities keep making earlier, about sometime evolving neither

distributed areas space And with we new And very it's Operating Chief we have with XX addition in the in a of the of have team to we and your have product been with opportunities new already the and in excited, making positions, been together, coming., health the opportunities this services especially This point, we for addressable of view team number they MedSR. we between Officer, those our and we the on senior are care with there RFPs, they now. have are side, that new it. keeping offer opportunities, team or acquisition, to IT focusing more have exactly has -- the the we MedSR the multimillion-dollar new of XX, with about changes now optimistic the very into I whether this the the and on have year, this participating the team promotions and want internal new now our possible keep as fighting think of different been we that health or number years, made we deals, sales system the are for moves capture. -- members more that to on in the earlier moved addition working the each then recent promotions and to that that, been that are head market area

Operator

Our next Fitzgerald. Cantor Joseph question Downing comes from in

Joseph Downing

I M&A effect broadly just be how more regard everyday normal comes environment, color Anything just environment? and patient yes, how to for would in normalized, for helpful. how Any Steve this update people these today. wondering business is if on speaking, volumes in give on sell? practices? can ultimately, I'm was to there COVID? you And to sitting then, And willing just around Are operating with an Halper is the

Hadi Chaudhry

Great. Joseph, good question, for morning. and Thank you, the

COVID, Even the too, to catch-up, that, from the were I earlier sort of sort well, catch-up was quarter, the uptake in back which as that that pre-COVID the the of the earlier mentioned pretty see some still we of of volumes terms on levels. that much hold. third as mentioned visits and this Bill are In sum previous

you to see here, the at basis, on want up almost that situation. color. we level, the -- over keeps turn pre-COVID be and the add month-to-month the And M&A it to some please. to -- it back can to if comes when to it's from I a back Steve, floor normal will Steve slightly but down the moving So perspective, to

Stephen Snyder

to. be question. the I'd And Sure, Joseph, for happy thanks

M&A that to a our perspective COVID-driven vantage dynamics the there's really our So perspective, point. is an again, from from a relative market of dichotomy in bit

healthy, and valuations. On the the at you one growing, they're market in seeing if think scale, profitable companies companies public high about obviously also side, private historically

market So seems. sure, there's froth in that for it

historically have our on about think Now distress. been the continue companies if are be some core side, element really companies to that today, of that the have other you focus,

vantage filings second model distressed temporarily as the fall XX little And a valuations companies slower. teams end enhance of they leadership relatively quarter that just So one be appear companies point, reference months nevertheless, there's deal to acquisition. those From they're good valuations something bankruptcy with in that on to of if we their through about historic existing you of may that and the companies year, the of believe an for be but to we a think could our commercial that spectrum, this point, flow had relative into the use category, new good through albeit flat, end lows. the would

been counterintuitive, being that since seen thinking midst the somewhat they haven't of But lows is be about President. in COVID. might was they hit Reagan the reality Ronald So

would pragmatic is have that otherwise to remain is flexible debt sooner exit taking factors business. So those an forgivable dept cheap, predators available. clearly, enabled initiatives, All and companies the more governmental the PPP have a view, loans, in solved

market humbled believe all that in lead but terms predictions view the that Having of we So we that, of that over about probably a being us to opportunities, pull what continue be the review a future, COVID continue does many we really nevertheless terms perspective, approach Obviously, our the to bit good as market mean? to all to will disciplined for transitory be time. real bold making right wait feel in but trigger has the and buyer's in target said from very reviewing forward. we'll really again, company's move our before about be where and is, continue proactive we'll and opportunities, those of patient, acquisition

Operator

Kevin from Dede in HCW. question Next

Kevin Dede

prioritize cents, you here? introducing, new of cannibalization pretty Force. products that got core rationalize You've a on Hadi's looking just you to and lot would please, you difficult X I at your when to can I and a do rationalize market, of it for CareCloud, broad got you've seems angles ask how It in, got you're them each got me your customer growth. how seems for consider, just CareCloud what Steve, like

Stephen Snyder

us well. Sure. the that pretty Yes, to in if then of to unique solutions happy terms we be as breadth space. would get started, is love depth and the on I'd of reality And I hear is your our in kind Hadi's a the thoughts overall back step this to of minute, point, and Kevin, for

companies So you can individual those at aspect aisle of person, you when can down, are XX if down one overall solution. can and you in to find go walk HIMSS, and walk companies, HIMSS, it's providing you individually our just the

providers your a in question, we just working the a now do that though something think prioritize? that Obviously, with maybe of from for kind we're rich, like think one deep, to is excess all So care about years we're the and significant this is ago XX,XXX today. opportunities of grown some market really are we serving couldn't priority there broad so means only of how we market moment, on. have enough team, which leads of out really But this there's -- this health such in excited XX talking which I solution. and addressable respects every providers be to -- still question to about a provider even kind XX of we It focused fine-tuning opportunities, have if US, as before, more still we very one though

about a and bit think other, really unique think you at I we the Conductor, our one these as back it opportunity add if about and to there's Instead, regard additional little think is thought if solutions. maybe cannibalized about upselling of we cross-selling now, look a solutions concept with differently. that's we is other some of you coming So think this to or

so that as example. So MedSR -- use an

if consultation an for individuals floor have to with court working we're into folks those opportunities MedSR some of see there really market focus see on big products opportunities solutions? the to -- So of scaling meet throw intelligence? on related Conductor? the the traditional able in and types Force there revenue and focus that areas important opportunity and opportunity business an that a to who understand relationship? in gaps. value MedSR, there that individuals Hadi's we the to the maybe that the for we How having other to upsell market. think management Force, about only that we fill Chief side, other cross-sell, say, as opportunity focused discrete now ball it clients on How the about providing Revenue IT the as over something Officer team, of is really to and different really be well, solutions toss to of can individuals need recognizing else services, Karl, And the expansion sales it's be an the who there's MedSR I'll over on on know about add head-on, part to of like that Is hence, and selling able focus to and an that the So cycle and opportunity really for is overall reason

Hadi Chaudhry

Steve. you, Thank

of just more Steve. couple point, -- to to adding add your to some Just things

way interfaces, of if towards first help product started a the larger clients. to which client then an the you client you I and need to enterprise the business Then business you servicing think you an enterprise-level about for, the standpoint, need company are it, one so, at if continued, and need all, real and let's -- another to company you enterprise small then decisions. EMR, terms the we the solution, and and practice intelligence looking support clients, from a the And help you space, of started think the say, from bigger large Kevin, with take absolutely probably to we resources. this have you can management need in some provide right of move

end and you're looking different to for, solution the you between all data. So that try products the companies interoperate and many going up that all to then these --

versus is a by integrated separate thing as think starting solutions. And large let's the I a solution efficiency the the because larger So of one our consolidated, adds the be for industry. one-stop-shop a our it we are also to integrated level segment we or to most an in these hit pieces creating groups this are try solution way, in providing of system disintegrated another part and

XX mentioned that one, So looking another will at I question to at as a and it's but have be started with the government the think get just our are it probably try to is and we differentiator can but standpoint, years, it, work. we XX are more make just submission internally, there believe, of, right such earlier, confident and one have used creating that we that we being working I to last when that's the ago, things very And in are another good your look -- the the connects the from -- and many that out it many there. on direct comes teams way developed we unique we the which think connects have, probably we I creative problem years aspect to a XX puts vendors over other as those And it ago. of became position peers very one us years with direct -- that

the good out us. for amount already ventures just hope question. your that the package of that helping and revenue had in also there a it giving which and health library, why it other generate start will since answers we now care So not other the ultimately I had to

Kevin Dede

in if appreciated in I was I graphic the wondering light hospital Slide dive but please. insight, Santa XX, your offered the maybe service just MedMatica, of Bill, perspective Yes. Rosa, on you that from could and you MedSR.

Bill Korn

and I wonder Jerry, Jerry? stuff can with medSR little who's that's , what on seeing he's exciting there. bit whether going because talk a to of help there's actually from about us you lots

Jerry Howell

Sure.

done and to forward expectations for -- continued as all far met growth. medSR, So of looking our as year are we've this

are the been growth, and the bringing to awareness to new also off will enhanced revenue we be idea brand clients, to we've the We and see salespeople., we've that added of result as kicked campaign, going that all primarily market, a in increased our them service have The investing services some with developed traditional using we've hope have listening of offerings, CareCloud need. signed cycle of a a they well evolving them. cross-selling organization capabilities between health got services. that or hospitals we're as behavioral of groups new new management variety medSR and We've -- as a X management where CareCloud services services. revenue a that cycle We've revenue outsource to physician X already least handful total at CareCloud X a done providing

growth our our recurring offering revenue as but to increase through clients. offerings, we increasing put the on amount that revenue of to our clients, continue books expect of revenue to also organic we're now combination with service we're our that the hospital able So evolve services cycle

of this, and of CareCloud I large between X for as earlier, now, some been working table would wasn't opportunities because, that we Hadi responding is medSR very hear the the traction, deals which significant need our we to the Hadi a said, the mentioned good very with couple the should these neither it have and that to cross-pollination at we proposal year, do proof areas nor combined synergies. service have gotten as of are end that emphasize we've by hopefully, really So is if

Kevin Dede

at look the XX, service allocation Slide on and then really was revenue has that's technology I broken going. client. When sort down not I where guess I of and

Bill Korn

want in those saying you come solo definition, sort practice, I the the of resources. doctor mean, you're a XX% the And and right. of seeing lot That's from "Hey, I of by -- that year-to-date see these technology services, -- not a professional revenue

You're bigger seeing in practices hospital".

So and larger and of the most it most of to that MedSR, XX% relates to hospital relates enterprise business. clients

Operator

Michael Okay. in And question next Chapin from take we'll our Galantino Davis.

Michael Galantino

growth segment talked and color, or I'm company? And out CollectiveIQ, from guys the either looking of shareholders on your what Hadi you that do you Clarion, Conductor business expect for a see the of slide Steve of headed? little for we Where the kind that more do that about.

Hadi Chaudhry

I couple the So, over able these XX develop I our been and again have of explain rationale, last if years. that as a aspects, go of the specialty are to we just mentioned, some to back areas

areas internally all, of First can we've work it that these successfully. proved

internally many integration have those We and that the merging of for problems integrations us then help acquired. in and of the companies we resolved us have many,

So which of result differentiator. the the XX is libraries are the those work, of years biggest

vendors who think for this available package that Connector years a for of now made company available, Connector company, packaged together they So understand, about be say, X all, and introduced have or have you we a I other years software this EHR. first may back, back, will out an X let's I can, and product, there, the have talk started if new

of As create interfaces out labs with for amount there, be an they But are XX over of X another couple tremendous time to develop EHR, creating and by take labs, the started may years will for interfaces them, there able have example. to it next a probably.

sign the do be still will So pricing, the we But earning advantage there all the those about details, who of it the next and will the communicating later up shortened again, a can interfaces, to in and LK where strategy, I it we to data our see other as as from big import, And gets further we do further shareholders' -- interoperability. is on we December, and an sometime product. as finalizing perspective, some they export, the area then are well. the and when comes go-to-market it this calls comes talk this during and that in mentioned, an for specialized such if and time launch quarter when proper our right, are

those XX developed the established, have that first be our system and to as that and time So submit well available rule-based, for for and we generate -- that now be will of and CollectiveIQ will vendors probably the XX to because companies sure packaged rule-based utilize. years the helped rule-based team industry-leading we other of primarily years we together pass first the compete will has we back, engine, same claims. us keeping a tools rate with competing start our to time, experience is making

leveraged the who it for same we be will to can not whole will could same there Again, looking and scrubbing database, client library be could of software vendors are by a basis, available. different. price systems product ways be have be at which rule-based are for the different communicated. it number the Now be can basis, together, It price other the be the be such do -- used that's point will instance --

Operator

to speaker you. Thank to the Blanche. like Kim I'd the And hand call back today,

Kimberly Blanche

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

Operator

this participation, Thank for conclude gentlemen. today's does call. ladies you. conference And you Thank and your

You may now disconnect.

CareCloud (CCLD) 6 Nov 212021 Q3 Earnings call transcript