Earnings call transcript Q4 2022

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Operator

Welcome to the CareCloud, Inc. Fourth Quarter and Full-Year 2022 Post Results Conference Call. At this time, all participants will be in a listen-only mode. Later we will conduct a question-and-answer session.

I will now turn the call over to your host, Kim Blanche, CareCloud's General Counsel. Ms. begin. may you Blanche,

Kimberly Blanche

Chief and conference the are call. and Chief Chaudhry, our everyone, and and and Korn, Bill Mahmud fourth full-year Founder our our Hadi Chairman; XXXX On Officer. Executive Officer, welcome morning, President CareCloud's Director; to Financial quarter Haq, Executive Good today's call

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

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

differ could contemplated Forward-looking actual or are future subject are beyond and of of guarantees control, uncertainties, a promises in variety our these which statements forward-looking performance to risks to which those of results and are materially not from many cause statements.

our refer could results differ the Please these forward-looking statements find a more our events. release in these factors performance of forward-looking Securities press the reflect statements. Exchange will date cause to new reports you comprehensive and undertake and actual revise to or of our from filed that Commission, our materially opinions future to with discussion where and statements only as we light These obligation this presentation, no and to information of

and by and Conference anyone Please News earnings For our download ir.carecloud.com, dialed then earnings presentation. quarter click on XXXX our fourth into to Results click Call XXXX Quarter download Fourth click calendar, visit Investor presentation. on call Events, site, IR telephone, you Relations want the may the who

on press financial to to may call, reconciliation XXXX certain to refer results. our today's announcing today's measures release fourth non-GAAP a financial we GAAP quarter non-GAAP Finally, performance these for refer our of measures. Please results

our And turn Hadi? with Chaudhry. over to that I'll Hadi the CEO, call now said,

Hadi Chaudhry

all our and quarter to and for revenue joining was us our you, several XXXX Thank of fronts, big tech-enabled earnings including call. redefining Kim, bookings, you year thanks fourth record company for cycle full-year a on the solutions. for

Our management user traction Wellness rapidly brand, patient gaining and our which monitoring care in chronic includes is our remote base.

bookings. the quarter in with Our Wellness approximately year record ending $X quarter, the million another offering booking fourth and of

As a reminder, or patient factors. revenue recognized ramps to go-lives, timing may differ due other from our adoption bookings of

the the performance first strong of CareCloud's margin from operating and contribution it and perspective. was full-year XXXX both umbrella, delivered medSR revenue a also under

of XXX-plus key one of As was relationships cross-sell RCM-related services. leveraging hospital considerations the their a reminder, into acquisition the

that acquired them story. generated year, they million. X% revenue increase, a that's full We in XXXX annualized they and recorded an year, million, $XX during the but $XX not Last of

confirmed our XXX%. Over by our and increasing thesis software leading revenue and cross-selling several system strengthened last with the approximately health reestablished vendors by we RCM-related medSR relationships year,

We X% the ending will increasing realizing for as a synergies. run appreciate for improvement will XX% in XX% deals, of contribution the a rate continue to growth. overall recurring with bought cross-selling cost to and Shareholders leverage margin which will ERP revenue directly them all anticipated from tech-enabled of XXXX, help our XXXX its result RCM the and relationships in XXXX

for agnostic. our robust drive our state-of-the-art Investor our growth it experience practice EHR to cycle Not we and and also our mature solution on highlight details hear to better the management market. and Day, but help the software vendor products the of in solution, differentiated is revenue the global benefits which we provide I tech-enabled physicians, around is value where in during it us clients. senior we also only truly top sits also were leadership, our shared market industry-leading management as revenue want it Analyst and the quarter, an of our is solutions, of depth technology first workforce of end-to-end from fourth our able to participants hosted our Also to our clients, two this

our investor comprehensive I but thought only educating user base in beneficial, join potential very you not informative very so for us the many could pleased community, of capabilities. the it was I'm the event. also of

our with opportunity our to as changing common also we We announce corporate stock to an from that this XXth We to of CCLD symbol started January this brand. on event ticker were MTBC CCLD year. used as align better trading

turn will we now update on that an organic the growth to XXXX. in I initiated strategy

to highest We XX%. bookings that are in pleased report we recorded XXXX, of our growth organic

two a XXXX significant years, past which closer XXXX. to a from from Taking this we expanded bookings from to more opportunities doubled revenue believe we is than the look, driving Over factor the team of XX XX, over we recurring our level growth. sales people

and leadership the us. that these anticipate of to into We We trends XXXX. will new XXXX sales ahead also in opportunities marketing appointed continue on better capitalize

on XXXX revenue are converting booking We laser-focused success in our into XXXX.

migrated get customers Bill in systems, a detail this large growth organic will and acquired two are health into we Excluding XX% more their in we revenue system to that forecasting minute. XXXX. in from acquired

goal revenue achieve a to to and believe Our have path is growth, that. organic produce double-digit we we

be by our growth is XXXX outlook exclusively to incremental organic forecast. Our would acquisitions and any driven

last fact, Meeting, that Annual to tracking to and the includes turn of easy-to-use EHR patient specifically American Association's market. a quarter, EHR tools the in end physical tailored information Therapy demanding of rehabilitation needs the Physical launched meet version It Let's comprehensive to managing is we our their CareCloud the stock now solution. therapy at for progress. just end-to-end and Subsequent the of week,

not our a at of forefront the couple time. of That terms fairly by the in vendors. the dominated is where opportunity for is biggest has rehab it and market for us. is the In some But for dynamics solutions we see innovation that it been software space, mature understanding

rehab a X,XXX the consists example to we quo already leading that This believe Our used be status challenging remote over solution an practice product is superior. technologically with CareCloud of a is by of being clinicians.

this and are interest to you progress look seeing forward strong posted offering in forward. keeping We on our moving

we on has as feel to growth, in including current an industry our Finally, look XXXX, new of we incredibly the of well future, us we emerging in era to a non-U.S. established opportunities and up abundance customers. position our see set first our capitalize

parallels XXXX attractive the as opportunity ago. of a adoption initiatives of This the will over the which be particularly for that we that UAE, to mandating area benefited decade represents next first entering the exploring government in actively focus use CareCloud has are from we new is market for years. meaningful U.S. The the EHR a few many the

largely operational the the ambulatory space setting. opportunities services, with our keep division, upcoming proprietary medSR these year, XXXX market progress. be to RCM see combination generation and the enter system redefining and attributed in our be in prevention of our company's the space the Health digital which technology will ambulatory for and Ministry you on updated other with through we'll the which results the powerful in of in private solutions our We hope are We practice to initiatives. space, of certified this for tech-enabled next to health The EHR need health various can solid and new RCM

are summarize, To are we take that our about growth organic hold. first, optimistic initiatives starting to

markets to workforce Our non-U.S. offering, force our Wellness where we distinctive our a have -- medSR offering, our augmentation competitive digital health expansion hospital feel we offering, advantage.

has us XXXX moving the in and is our to clients one XXXX industry positioned turning in into top finally, revenue. onboarding in Second, deliver feel our that And our continued record priorities well growth bookings our of new forward. we work left

I Bill? fourth for over turn call Now our at full-year look to quarter closer will results. and the a Bill

Bill Korn

today's the reported Hadi, million. thank GAAP adjusted $XXX,XXX fourth you call. we joining Thanks, all of $XX.X EBITDA of quarter, net $X.X million, and In for of income revenue and

were $X.X $XXX income in revenue of For the GAAP $XX we reported expectations. results with line and million, adjusted net full-year, million. EBITDA of of These million

our revenue, as clients of that of EHR or also practice who our over as from revenue technology-enabled Clients XXXX management our approximately our services. services came represented solutions. from well business with revenue cycle software management revenue coming utilized XX% XX% annual our XX% Approximately technology-enabled using of

highlighted Let's look at our earnings same-store is deck. the presentation in full-year which basis, on a

dig You'll software performance revenue started into stripped down had XXXX, and of they acquired And migration XXXX onto our XXXX acquirer's servicing Medical These large finally their the of to completed out them two details our on systems in the a contribution were winding each before in Management. annual acquisition see been These services. platforms we highlight here. XXXX Meridian we after the health and two customers important it's our basis. unique instances consistent to

when purchase outcome adjusted knew bought We price likely this we Meridian a and accordingly. was our

than expect, look years. the originally that favorable. large that we profit for what were results customers margin earned end revenue two While and extra led less the these the we means two timing of was revenue But to this later for extra reported some overall meant

clouded. Normalizing eliminating two two medSR by to of or XXXX, X% a XXXX our of a will we that these without to increased driven anticipate combination customers, growth. revenue XX%, from basis XXXX, be remove customers, our these impact acquisition the on is growth organic mid-XXXX our but impact and around like-for-like in of growth revenue million $X.X the

income new and GAAP in a net our million $X.X income set net XXXX of million double record. Our $X.X almost was XXXX in of

EBITDA $XX.X a of Our also adjusted record. million was

billion essentially of flat two but fourth business revenue core $XX.X Our revenue the of those fourth excluding was our from from year-over-year, would last quarter year. the down customers, quarter

X%, medSR EBITDA than decline of down less as margins was top-line of improving $X.X in result a adjusted our million is Our our business. which

for XXXX, the million fourth year $XX million sheet flow cash quarter. with came which from full-year the to We $XX.X of ended We cash. balance Turning from cash the the of million operations generated flow. of and $X

guidance terms for Investor XXXX, the we at Day. our December outlook are reiterating we In of provided our

XX% XXXX strip when out $XXX large We million, expect $XXX we and both XXXX. million customers revenue those two of organic growth which represents to from

growth have We only our guidance. in organic included

we a if it complete acquisition, incremental tuck-in, So revenue. small will even bring an

We the implies $XX $XX million, million XX% expect adjusted EBITDA which at to midpoint. of growth

Our primary distribution year little for a quarterly reasons. this look two revenue different will

from our two of back the second, the half First, contributed of revenue this wellness half is ramp offering, new expected timing first the revenue loss XXXX in which year. up of which and of the to the in customers,

revenue and year. the with back remaining XX% with the half. in XX% in in first to half XX% approximately the generated results will the XX% the the In first weighted in XXXX second of compares half XXXX, be half and This

seasonality be will impacted profitability business. of also by the our Our

the process First be to X% insurance claims, depresses we X% no year without making insurance plans, which are pay same quarter than medical as our but primary of deductibles individuals revenue in value deductibles most is payments. due lower payments different. slowly by much always to This costs, will impacting typically hurt their revenue since more

on lowering despite we higher-than-average to who our margins gross our As costs, are the two forecasting the continue we XXXX, they focus the loss by generating of throughout improvement margins customers are in exited. time

my while roots sticking to we built To I'll changing conclude RCM meet to Hadi our world-class sentiment the that our our have true a reiterate partners, needs remarks, of as provider. out solution physician

I pivot point where accelerate. really our believe XXXX business, begins be a will organic for to growth

to have future with believe achieve new of is in the growth, combination we the and the overarching and foundation deliver it customers goal we double-digit cross-selling. Our to organic built

and your for all year. today throughout forward of you course to the thank updating in participation the our call you I look

the to over Mahmud, our concluding his for remarks. floor Chairman, now I'll turn

Mahmud Haq

XXXX Bill. you, new gave customers and new for Thank of strongest activity, sales year organic services us existing our customers. both

and of our mission. for forward accomplishment during business new loyalty, this seeing to support We trust, are customers, I this shareholders all look proud their our revenue XXXX. thank turn and to like into of would associates CareCloud's

to call Operator? questions. the open Let's

Operator

Thank you.

be will our question-and-answer Jeffrey ahead. with We session. Ladenburg We conducting of [Operator the take first our Thalmann. Instructions]. Cohen from line go question now Please

Jeffrey Cohen

are you? Hadi, and Hello Mahmud. Bill, How

Hadi Chaudhry

Jeff. morning, Good

Jeffrey Cohen

contribution to XXXX million to customers that clarify, the just was you $X.X call heard out? Bill, I revenue two So

Bill Korn

$X.X that Their exclude was that said was those little Jeff, to we would revenue have million. customers. growth I we $XX closer you had total, in if the million think a actually contribution

Jeffrey Cohen

the to that bookings about any Got that new up customers, talk territories? practice Do you'll anticipate accounts, or in front on that offerings funnel? EHR management amped related growth your will you trends going to perhaps by is from 'XX Okay. it. see could on Perfect. new Or new come And you backlog increased and Wellness? and be

Hadi Chaudhry

EHR be at be about the coming $X future We XXXX, terms the as in foreseeable Jeff. one-third places, XXXX. the that tech-enabled We XX%. for roughly Wellness. grew should from close the of we the over under numbers seeing probably about Wellness relationships it's similar our services into approximately question, the for going offering RCM of through look of But mentioned are deals. And different same these medSR bookings Great during somewhere if closed offering, top RCM offering -- you our booking force I think space, just by the whether overall absolutely we our our growth overall, on leveraging quarters should revenue -- and recurring by million suite, trend least technology the we those that at One-third -- we sitting the and mentioned, forward. booking, all the to selling closing of

cannot But you booking month. -- the at are has foresee, this were It our It other to quarter can it, than had the And previous quarters consecutively numbers. It's year, certain better stabilize. next the the at if to average. last consecutive a better for than in goals quarters overall, than just every that be it just XXXX we was be overall even yes, look three higher the stay one.

Jeffrey Cohen

Could you. you That's lastly, you And your guess, and also are anywhere any inflationary cadence And could hear there? about seasonality. we on on out Thank or seeing -- price talk you costs? I particularly helpful then effect, talk it. pressures Got taking you're about any that labor on Hadi. you

Hadi Chaudhry

the to in. answer, feel free Bill, jump Great. please And I start can and

be would the or dollar costs of conversion and probably foreign conversion the the some I there. inflation conversion, to currency think factors to referring rupee you the

it's for because I think us on so all being the U.S. far revenue generated side. the

back a inflation the the because the is our that goes kicking devaluation normalized at goes So same to it as currency still in, start a in of to level. favor, there foreign even short-term long-term,

in could of in the Bill, should like anything long you back it change. run. to see of goes thesis again not the our Short-term, the do because model some that of we benefit anything But the add? So us additional to there overall be team. leveraging to overall would offshore our long-term,

Bill Korn

markets people I labor think that to we're operating mean are in we where fortunate we of still want I are Yes. work. who there's -- lots

pace overall applicants. So hear of from pressure. doing I'd are lot not we're inflation. treating overseas, data, Again, And new well. a when anecdotally, fortunately, look for costs don't and But get We're employees, have fine. scientific seeing as not We're positions really we India under unfilled. I employees they're I'd look for say but going our helping with we dollar-denominated who we going we're using of up, that say them I plenty we're qualified keep offshore people seeing

contracts, fortunate to to we're and we able business. that the So open we're easily if we're for get staff new And up work. do

Jeffrey Cohen

Thanks helpful. That's it. Got the Okay. for taking questions.

Hadi Chaudhry

you, Jeff. Thank

Bill Korn

Jeff. Thanks,

Operator

question next go Allen Please the Maxim We Thank of take the you. Group. from Klee ahead. with line

Allen Klee

morning. good Sounds

this the for into patient that? Can do planning some -- revenues. Thank of remote is I on you care give and your think, of translating one programs about you're chronic to execute what goals to specifically on talked year you. bookings monitoring You your

Hadi Chaudhry

good morning Allen. you question. your Yes, thank for And

it's could talking eight first so months, be smaller months non-Wellness about before, large be, go to as months. continued or six bookings, for average, between the three be to that's about could we to months non-wellness an offering six clients at XX lifetime have At average And because mentioned bookings. within six

million in first the anticipate in revenue. when in care layer are half close at which that back. adds bookings, we me not moved the this patients. adoption another bookings production, actually, of what by about already under -- the in of just for I'm XX% We right roughly or -- it's let year to $X think generate the of I Wellness. monitoring production. started step complication, Wellness For say the that moved I is The been remote it's XXXX will patient now have But looking management we have whether we chronic And the that

establishing may and could board been interested are patient they be connections reviewing have in them -- that the to bring be with that chronic We remote monitoring. patient patients. the of Some of in can care the eligibility on that we participating the

anticipate patient awareness realized more the the most more In rest XX% have we roughly recognition, there as models in. be care terms more of that production or the some and the the probably the will or absolutely be we moved of This pushed year. of will of percent to first improve we it pushed towards be be will second this could that half more of revenue towards will XXXX. the on able and half XX% will be side value-based will in will even year The realize adoption be and into as in

how will how is think the right it adoption improve rates. I that now. awareness is This looking we patient forecasting. But we this at are are

Allen Klee

And you. internationally. bit last to a in environment what little what countries you're are educate Could what Thank you my incentives us or talked the expanding question on adopt other about just offering? you is Thank those regulatory you. the

Hadi Chaudhry

Allen. Thanks,

Just talking a high bit level. about the

this of work a First in for all, us is progress.

even officials in talking We possible, the discussion government as well that still area. to are and in where

terms -- EMR to meaningful a to So started take opening be carrier months the opportunity, X,XXX Obama during of -- those was understand the remarks, after of the I of couple implementations and different the beginning all place. mentioned the an at take how around the exactly it similar to conducted But to the first able will more adoption in time and as that us use the in incentives.

specifically, more of adoption the is initially UAE pushing electronic the and government market systems. health talking Dubai similarly the of record In about market, this implementation UAE the

leveraging and for initially, the -- the division other areas. medSR in to opportunities be the see and space, GCC an our we that is UAE anticipate So -- of these Qatar, providing could One area. three health in could Saudi systems our implementation, Arabia activation in be we that opportunity expanding then region

first, platform it our And of have revenue cycle. third portal the ambulatory which the is claims, opportunity the And the area. The the have to need the to get can offering processing. different create and EHR, on the and our U.S.-based same platform, out workforce, certified log insurances, us is in but second than area the understand to start to because that there, claim same for pull positioning thing we based our own these the very that government U.S. is of the authorities that log in area. in is everything one up believe, different we and we two for practices But workforce, unique global that we combinations success to on set it RCM revenue position to together, us staff of there's the Pakistan, standard primarily a -- and definition the trained set than we'll that of cycle then the medSR to

from that different There's initially are with And get probably the again, the it the because end finalized, a once office market we reviewing. a the -- gets city initiatives may us There up of industry in in connected city are health We all we players we there. an health lot communicate, government. opening in will there. there's

Allen Klee

helpful. That's so much. Thank you very

Hadi Chaudhry

Allen. Thanks

Operator

with Michael question next ahead. H.C. go We you. Donovan of Please the from line the take Wainwright. Thank

Michael Donovan

Dede services he's Hadi, you customers road. drive once the as you revenue. recurring onboarded? more Thank behalf expand and on Can revenue calling with they're Bill, mentioned talk to on Hadi, relationships CareCloud of to Kevin leveraging how recurring and Mahmud. you I'm

Hadi Chaudhry

perspective. morning. the can made Michael. couple ways specifically division's One, we that from a it. There different look at you, medSR comment Thank Good are of I

or XXX-plus reasons into was Head acquisition their space, the medSR the hospitals, One the for right relationships there. of decision-makers, whether CFO the the of of because the business the health it's CIOs system connections, the with it's or the whether Revenue into the Cycle of their

offer are started their we to to revenue relationships recurring help, RCM those that space. able in now with So leverage deals and

project-based one-time in tech-enabled start has we But proof RCM-related are explained revenue relationships Because because we As this the of most and those it revenue XXXX, selling a over medSR XXX%. now, the medSR. year grown too, leverage that of build of our disconnection able is revenue, the earlier come solution. the in. started division and RCM And of has by this already to to

area. already that up So us in have that's success for set

So growing to have even XXXX. I that's in our some further what actually, we color? like who more Dwight Heads anticipate Dwight, division. with medSR you And me would give

Dwight Garvin

lot happy into with Hadi's several more process. something be -- out this where interim year that I'd as management get kind clients and then several this into staffing saw we our over selection a highlight we've than taking And a And really start simple things to our technology recurring RCM CIO ramps of right that as of year. point, to of our seen an components around true senior in the clients of doing Sure. we now revenue. to. right recurring system And

Michael Donovan

Okay, great. to on Appreciate better it. And international understanding get expansion.

be a to take into new trying position itself you looking to also UAE's medical for when markets? consideration hub. Is this something tourism So

Hadi Chaudhry

You is the grow Absolutely. nail in health different because XX% head, looked one based And we we health started reasons initiative. places by over space -- the that digital the number space, one small project That's a digital to expected on the the or on different on once market in our studies, the hit CAGR few of is years. Michael. at we consistent next

telehealth I two on a creating under a can side platform providing one years the other probably we and the the patients. on for doctors or connect platform back the side, think which

So with the there. introduction about that of of one planning to point, reasons the or get your back stepping it into So medical coming the to is are with East this, Middle thinking yes, on side, trying that we this tourism

Michael Donovan

colors. the I you. appreciate Thank Okay. all

Hadi Chaudhry

Thank you.

Operator

back And the [Operator Instructions] the gentlemen, Over question-and-answer Blanche we over turn ladies Thank closing like now remarks. you. and the reached of call session. for you. to Thank have you to end I'd to Kim

Kimberly Blanche

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

Operator

gentlemen, today's you. this teleconference. concludes Ladies and Thank

You your Thank this your participation. lines may disconnect at for you time.

Kimberly Blanche	General Counsel and Vice President of Compliance
Mahmud Haq	Founder and Executive Chairman
Hadi Chaudhry	Chief Executive Officer, President and Director
Bill Korn	Chief Financial Officer
Jeffery Cohen	Ladenburg Thalmann & Co
Allen Klee	Maxim Group
Michael Donovan	HC Wainwright & Co.

CareCloud (CCLD) 2 Mar 232022 Q4 Earnings call transcript