CCLD - Earnings call 3 2023

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Operator

Welcome to the CareCloud Inc.

Third Quarter 2023 Results Conference Call. [Operator Instructions]. I will now turn the call over to your host, Nathalie Garcia, CareCloud's General Counsel. Ms. begin. may you Garcia,

Nathalie Garcia

President Welcome today's CareCloud's our call Hadi Officer. Executive Executive everyone. Steenvoorden, and Conference Chief our Founder Quarter Call. Chairman; Financial Officer, Chief our On are Chaudhry, a to morning, Director; Third Larry the XXXX and and Good Mahmud Haq,

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

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

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

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

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

A. Chaudhry

our gives start but adjusted several the million, to you, million. I later Thank Larry and numbers track our confidence at fronts quarter, of with fundamentals third came came will recent EBITDA thanks in In growth of call. updates and progress Nathalie, the you the our us at on these joining $XX.X first, dive to quick XXXX we meaningful several review Overall, the and deeper a return to call. that are business revenue quarter, third in on the from intact have $X.X remains next will earnings results. all year. of in into for CareCloud quarter provide quarterly to

and with projects that of We on solution, credentialing be will technology. which start FORCE generative the is that a project-based report meaningful launched in took expect align launch the underway, close recognize we the generative action and this progress continue including to end.This to of after our already a service As make cost quarter, of quarter, medSR, of so an pleased to example, with on Digging we to Implementation highest significant. an before businesses can portion we deeper AI. the generative revenue we AI decisive to incorporates quite opportunities. third CirrusAI business an progress we recently I ongoing solution, the year are value that infrastructure to professional signed contract our stabilization potential goals, update the has AI we into of our believe customer existing our several our quarter, our

ahead Just the conference that across for industry. it they will the X allow and total, their the just have solutions, the of can our In together the specific for purchase tip X We healthcare leaders EHR have the this X And the starting better launched AI XXXX. offering us. solution in trial in them is of RCM. time weeks iceberg be we X opportunity to ago, leverage for to solutions for this charge. them of and competitively brings period we practice. priced base sponsored will the that additional off a client of solution and the Google give opportunity to the To believe of They year, how technology kick thought This we to then our had that understand on a end in competitive on free will improving go-to-market the stay the demonstrate ability by us strategy features. the will through at commercialization benefits solution market are working latest curve to our actively our edge

towards Over professional effective have stabilizing few steps we services the business. medSR months, our taken past

We diversified on model. Meditech, to from for one a the revenue consultancy mainly that and has provider. have a staffing over medSR continued sustainable firm vendor X past strengthen dominant short-term a EHR And more evolved single relied to of our the years, with relationship projects

has transformation XXX% a grown see and XXXX, by since also practice practice. Our we our RCM with strength almost technology

transformation pipeline shift are We towards a professional significant and for demand medSR, our see tech XXXX for mix RCM these services, solutions. a optimistic strong in we and as

XXXX. versus $XX addition, $XX entering pipeline we have In today, active million in opportunities million

pipeline and clients opportunities are shareholders. and leverage to because reputation expertise value deliver that and can We mix the capture of our size we to our confident and

early October, are we positive by return we and highest announced opportunities. on working cash an with X-K as profitability costs in aligning Lastly, improving actively flow free

impact We expect realized in will a positive Larry XXXX. discuss this in most more in be minutes. will of the detail few

we can to return growth confidence factors next year. increased that of these just us All discuss profitable give

update an to turning business Now on our opportunities.

user our the all our enhance revamped highlight of year, this experience to website solutions. earlier and discussed As we

highlight next-generation end-to-end offering. this upgraded therapy is website, on campaign Our recently marketing our solution we to launched and live a

along with We that physical a the in this raising the therapy [ confident way this awareness are will of market. website long go ] solution new in campaign,

Next, Middle in our East. I provide opportunity on will the an update

announce are that making we pleased are We region. progress global meaningful to on our that in efforts expansion

We of development have Dubai, innovation and in and City. business near our Dubai technology the been strengthening the permanent presence establishing hub UAE Internet

system our product which is a requires diligently working time, stored similarly database, Our to the the operates national at our adhere health we UAE country. health with the are the information which data exchange. ensuring same data been that And health have to law, teams that system to integrate within

XXXX. our Arab to are and the Arab We is also an in QX you look Health earnings conferences at countries. year. excited update solutions healthcare to We call largest with in of XXX XXX,XXX forward one on next Dubai Health services our expected providing over from present Conference attendees of

CareCloud terms In preparing modern electronic of upcoming milestones, physician's to state-of-the-art record Prime is demands. designed a platform meet launch CareCloud health to cloud-based

in believe entered reprioritize care our represents search It the care In year, like steps product give for reiterating well XXXX. as we and point we AI-powered the cloud-based Formerly commitment have offers a Chat significant Take quarter known efficiency. clinical and fourth with a Cloud Go, we tools took value-based after providers design, our It unified our actions, innovate also this confidence another to we some upswing. although full me headwinds in customizable have the faced our as strategic provides a our is stabilize tools serve improve Prime to structure. data engagement and support and template evolving interactions, at year than and health quarter such needs. these It integration. feeling and records progress patient more ability as seamless we remote for emphasizing return cost navigation for we low made global made to years as in patient such business CareCloud steps patient features to acquisition staff user-friendly provide to this growth project Prime few our continually seamless past Cirrus improve it support. the portfolio. and monitoring decision telehealth management, The interoperability, efficient includes own taken model and better this accessibility, exchange as CareCloud's clients' goal for Because guidance advanced just was ago. of confident following summary, proactive CareCloud

I Larry? Now will the over you Larry to give turn to the at a call look closer numbers.

Lawrence Steenvoorden

Thank morning, everyone. and you, Hadi, good

detail want share to Before third more initiative. little realignment our a quarter I recent on cost results, review I the

certain some areas quarter and tough back The fresh decisions the along I cost the full business. Board, pare in to quarter CareCloud's but at we Hadi and with was necessary as first took made infrastructure our a third look CFO. of my

company improvements in difficult, continued place for over know, to anticipate free you carry the some while goal XXXX. are are the foundation take in scheduled was the investing As will growth but in establishing actions also fourth but profitability. transformation the decisions and to I a ensure flow quarter, Most sustainable of cash positive into

the benefit expense to operational million platform R&D savings in improvement specifically annualized Hadi next-generation related other $X -- twofold Prime result million that completion We expect has to approximately profile discussed. and these changes us. just of includes investments, in $XX of a expense free This our our flow approximately half the CareCloud cash for

we now reduction in going anticipate software the these ROI our will second, we investments. First, notable realizing a and capitalized forward; see for

of to to mergers. reason a the year-over-year loss year-over-year. to sequentially turning $XX.X compared health results. million decline The of was third systems $XX.X for Now customers the level million and quarter due primary was X the Revenue

of to offering $X.X general revenue for was marketing, of EBITDA related administrative the of selling, combination wellness sequential an compared Adjusted continues million million lower a and costs This partially quarterly offset Our reflects a $X.X current monthly XX%. period. growth by showing decline The adjusted a of EBITDA number of quarter in in EBITDA patients. margin traction, to and the gain lower year the margins, in ago.

Turning of there and used net quarter, operations of was was sheet flow. to by in in investing the cash third $X.X net had million in $X.X Cash capital million. and $X.X end million, million cash the At provided a cash we and $X.X the balance activities. working

not medSR's going necessary now better into turn steady In strength, end XXXX. actions the be but but will have a remarks. for tough conclusion, and My growth we closing our believe and his financial are meaningful of expectations. our solid $XX only call Finally, the to I'll Prudential provides achieving and million. Mahmud in we between for EBITDA positioned year over and position $XXX million that, in the the taken execution $XXX I performance. realign business from and With our year including contracts, factors, improvement continued between to mood? guidance cycle core revenue million in A ramping full pathway of revenue contract combination adjusted reiterating million XXXX $XX to our for

Mahmud Haq

Thank you, Larry.

we As ready positioned mission. expressed employees, support value. team shareholder very earlier, for feel and solutions do customers success thank future engaged in the CareCloud's they drive are fully is that and well our all shareholders would to to like to and I The our marketplace.

to Let's open the call questions. Operator?

Operator

Thank Instructions]. you. [Operator

Jeffrey first Allman. The with Ladenburg from question comes Cohen

Jeffrey Cohen

here. cash to free the a you cash I for equate guess, net could the or from guidance Just couple And EBITDA production maybe flow and or firstly, income? Larry, adjusted

Lawrence Steenvoorden

We that as absolutely separately, that a can to would have Jeff, put do out follow-up.

Jeffrey Cohen

introduce? that And Perfect. going offerings that and you over the about which also could little ties to to CirrusAI a bit Google then platform if to? pertain to with plan And talk arrangement Okay. the that's specifically prime you

A. Chaudhry

Thank you nowadays of highest in for the discussed question. industry. any the AI topic one most And -- the biggest the generate think --

too, So the healthcare platform us, can market as how our we towards the for the earlier to started healthcare segment, we the in year, industry. leverage we generative help mentioned technology into focusing

from features started incorporated, we on on our incorporated. we working announcing the as also are with both the for on later generative will be we SaaS fronts, leverage where those revenue by various will employees, different of So features to the in cycle keep can now, can -- work other and we available we looked a at will number on be But model. be back-end we the how the improvement, which management AI improve

into of one the space is especially know, comp and complex the out-of-network you of worker need the insurance to appeal space. As certain the appeals process where procedure or decisions you the companies

promising, that. internal the [ and the have generate of and -- as the appeals seems to with AI ] our very can based of well as result those collection PO with help the should systematically on system -- So generative our processing of improve and payment we through the believe the a cycle the testing, help we be

on focused -- more On which thought front important, a we clinical the the physician thing decision. is important any end, for we most is

so to look for come the record example, like. the diagnosis after and has and -- has in look their to different up to next diagnosis, with their order lab the patient pieces in doctor complete the medication, So provider where the information at history, many walks session test when at, the the and of then the

So think these provider be will as just that suggest about these on opinion second be based the -- gives it's potential all could probably will either recommendation. it diagnosis provider, -- system that a suggestive the orders, it could this the test And a procedures, them to the the the lab should order. or

even and compete also accept the or certain the medications. to there aspects is it as suggests changed, needs and can look be added Now is to that to And the it's there. up if provider it it just medicine, at removed

thing this not and many be where the to is, the in been may instances rare think have visits. diseases. think diagnose able could to after I provider may multiple cases, is There able the some So quickly about be diagnose

Now results keep will with will on this improving. as keep model the and AI this more, learning and generative more the health

than treat So we should much to diagnose they able would have. those earlier be diseases or

We So importance understand such users need so from business realize adaptability. the one and the standpoint, the doctors the make that of the sure is and to features.

entering the thing market we trial, a are we the second will on positioning, plan it. the accustomed it of a clients any announce into turning least on of license for gets the pricing it marketability out basis. is then won't It And cost, chart. that free start next get the year, of can have start And finalized. at once there until the year, we using the So our end to will course, to risk-free be be it price the product. now the of

everyone competitor, think our all solution. at look the I trying some you come If with competitors, to is up

and any I at can happy further. So be to is level off-line to a explain with this even connect high further questions, you

Jeffrey Cohen

give of what That's helpful. business anticipate on us a you going your And give then lastly a aggregate sense growth could and revenue us now of ] you or forward for for us, [ may OUS sense OUS?

A. Chaudhry

Okay.

to our we East So -- East that probably the referring you're Middle focusing are Middle on. opportunity

our contracts least the able to making and some So and continuous call, to I we goal least few are a and is on progress last for to or at year, contract this being the revenue mentioned, recognize at next a even sign into year.

the We terms earnings the will on next incorporate that include that when for we guidance But in of progress. issued next call. the our year

you So incorporating One are if a entity. side, think on ] [ the there of is number about steps. the UAE it

have that. We completed

conduct license the different categories. getting is thing to Second business a in

completed have we So that.

step able so the Third management onboarding, employees at them, business the is and be UAE. least certifying in should to they the transact

in are we So this third process.

our stays And there. with local are other answers secondly, actively such least as have sure UAE. to One, to other And X off the product we authorities have the that opportunities EHR the platform and fronts. get and requirements, within have on IT start smaller I once the data side, they a we our client, making different to the items question. the working the certified. that hope other X to certify working sure large we side, X technical the make X, at On side, on the

Operator

question Neil comes next Riley. from Chatterji B. with The

Neil Chatterji

kind the just talk gives see I have if confidence? there from projects shifted year ramp you have any of impact the Was guidance. XQ? XQ XQ? quarters, in the of the Maybe any reaffirming quarter what just just kind might sequential seen the at strength maybe might And fourth that to And that on about wanted full medSR seasonality more you guess to or you with

Lawrence Steenvoorden

Yes. Neil, it's Larry.

of As we really health last big QX, was X the QX QX impact to Again, now QX year-over-year look just season mergers. the system at comparison year. similar to to large

certainly the medSR, that of we're revenue going is of services factors. and out Also, there key some credentialing the to portion As about really a press QX. wins. of professional on that release we the recognize great contract to couple the we at a QX, One development look the start put

year our we So reiterated full guidance...

A. Chaudhry

hear Okay. us? you Can

Neil Chatterji

Yes.

[indiscernible]. Sorry,

A. Chaudhry

Okay. It looks like the phone off. went

Lawrence Steenvoorden

so just complete â€“ that. we're No,

the will driver core just RCM solid support business our Metis the confirmation the will the QX. So is yes, also year also -- with then in And full the key execution for guidance.

are, We've So going all and the together also we with commented next -- us where that the has come just really our with the then backlog. into give also XXXX the professional year. into services going confidence on

look growth XXXX, system into we go come and together. setting strength. then of at health to for the us as for the mergers year So just XXXX, want the position really and same a from finish year it's but there from transformation get we And the into next strong up

Neil Chatterji

just Great. And that. follow-up just on one maybe

that terms looking that thrown at of mix. looked it that of the the with just in kind What's RCM of like on mix, traction Just of in driving medSR on mean had Meditech the kind of and kind side? getting chart, business, I you're some

A. Chaudhry

and we -- have can start the question. have and -- who think I finish can Garvin, just medSR is Dwight heading then we business. I the he

overall industry, to over if is, the somewhere So between health between let's -- think player about say, system the it, in space largest XX% you the market XX% share.

lost. we relation the that's So

space. in and business that started in one, we primary acquired among that of opportunity, the say, top Once top I medSR, the we lost so market. until So the the was terms the line X, the organization player of is was the focus in in next Meditech bringing we towards the from in -- that most working would

X oriented Meditech. finding last addition in the to enable the reestablish relationship that, with we not year, strategy was opportunities for our able over our to towards But marketing time, more the over been Meditech. So have

one. that's So

should one acquired second RCM. able by can the able a $X fold if is the the RCM multiple these million should reason now revenue they related the upsell to those of you system of doing. were services. has and That a CEO, be we our acquisition, When be of for talk there hardly CFO cross-sell and those was out roughly was the narrative our $XX improved RCM The relationships, medSR, also, we that million that one to we now health to remember, leverage because relationships, that one because

seems to of are those X like prime add are contributors. updated you -- So ahead. becoming our would business. Dwight, to Those the medSR major medSR X or be our drivers go the anything, But please if

Dwight Garvin

Sure. Hadi. those we're is to moving really Thank a advisories of seeing in you, Hadi engagements and kind just have from advisory model, upon moving said, space of more our And that expand managed services. short-term you RCM into where what what

we managed hires So sell relationships those expanding established now Meditech. throughout kind within those really our take really really on same model. strengthen side all development to business services, this very revenue turn of targeting. I hope partnership services And our Meditech making long-term the the answered can year, other into practices I in that allowed recurring us at mean what key have your we're that's question. and then [indiscernible] time business, some that the

Operator

Maxim question Group. Klee comes The from Instructions]. [Operator with next Allen

Allen Klee

existing be us And understand Just or talk that that. would compares help you For an the little about that's price a there CareCloud have new today offering, differential? customers? and to this about clientele more would a how to what -- think you prime about be upsell how coming,

A. Chaudhry

go bring solutions we years. XXXX, or of reason our if So every back, becomes and the And very need or of one world. the a set after next regulatory offer One market technology order are is at. rapidly the couple the technology solution. look to the kept viable, product, bringing new is, or products And is we what reliable that requirement a first system the features to the to X, And expectation, need the next-generation to is of the couple technology the is triggers platforms. almost requirements effective Every more in or side you a changing first we that's XXXX every was in time needed. other the then years, obsolete. new the entire couple and This platform. X the generation of ways And compliance the have

this technology. will this on the the perspective, be So one, back-end on new technological

is will thing second features. The it more have

it previous of features like more value-based the We medication, effective, number other are the charge towards model. healthcare preventive and the and models, focusing to model care sharing preventive have better things, a more versus

would -- not planning another platform them. transition last Both we they -- transition, for I number those next we extra we of month, client. talk so cost whoever this would they the the platform to no to into We new starting the all love X another platforms for of aspect years. us, the which this this a on service be They the client, working and expect And Health, and to this platform we next doing on together -- of are additional in EHR. their generation those bring have think the today's for are world as were seamless both active. years. like So our is them with acquired sign it number when We're certified of today, of foresee platform is, going platform. CareCloud the it would over transitioned ultimately own, clients, sets on things of futuristic next up we be to -- we call have those both platform, key the can can

will capabilities healthcare going the this next technology and of our forward So the and flagship platform. platform generation become with features

Allen Klee

the opportunity bit just other if little you you about think a talk what All there? you're could the contract credentialing right. My and question and doing about how is

A. Chaudhry

credentialing he then can -- question, the it too, was and is us, and with the have started Karl. this to relationship. turn over get one who we we'll Neil. Karl hand I on Great and And working

revenue into our about the from revenue we it the cycle, we credentialing. to So start service with the -- when piece or services, the end-to-end tech-enabled is talk begin first cycle believe revenue management the product

won't even the So do should come. see happen be provider we you credential a it not the the not able won't client not effectively, will a the revenue come or either at level -- optimal you will generate if reimbursement to provide or if the -- level patient,

internally end, track been submission at the have us on capability systematically us that back possible, the effectively building up filed, which do help on electronic more the a working system that. We to help the is our platform side we have wherever athlete can has applications

the follow-up. Now that the And also now improves with without the it flags of also needs many help the the any human the and application That's ] applications intervention, of completed staff accuracy the AI, [ systematically different be can one. time. level which

the release, one the of and CBOs on of credentialing like a mentioned that their to CBO. we company. we -- as of that this about the -- as certification when role has also We are Think company part of one establishing part the insurance last credentialing delegated earnings announced working we in delegated the

a we commercial insurance X credential hypothetically a talking days the the able provider, of say, average at if internally, to days take instead we an provider at, let's same credential be believe So XX to XX days. should

our is that strengthened very we more credentialing and capability the has think go marketing out we start credentialing can this effectively. become and much So overall

some sign. able Karal, this [indiscernible] contract our So we share first is with been please? to that, have details, large

Karl Johnson

Yes.

getting when for the the they services. cycle were customer their doing to work, a [ so So ] make those that clients they met sure were credential paid need revenue relationship of were that

trained and was at a time point take cost is them, to incredibly piece and delegate price resources. in able leveraged were really speed, are our huge along come Hadi we We've mentioned, takes the structure long attractive and with that offshore So up care. existing resources to to to a and a our credentialing as that

credentialing this our need really to additional large discussions the on some end. up have they're back So gone for happened companies years. some us for doing that's fit own many further opened many, for doors some a clients actually need other that and with and And

are an companies for really untapped the cost-effective companies we that that market shopping. in this also there's is come So one-stop of advantage to credentialing has than that much way think distinct having those a more dedicated

very with helping credentialing add-on if So a functionality. we're is RCM software natural services, or services

A. Chaudhry

Okay. give terms And Allen, idea you revenue just the in this opportunity. some from of to

is that I providers that X% the client the of over that million presenting in will base, revenue. say, positioning we would mentioned, something into their only at thousands $X help and expecting, solution to we we ] or As are tens [ penetration annualized with be

So that's X% a penetration.

So there's a big Karl and a become larger opportunities. the And case opportunity us for sell this first similar will go as good to or model other with mentioned, a study there.

Operator

would This turn back for concludes the any closing I to question-and-answer session. like conference to the over Nathalie remarks. Garcia

Nathalie Garcia

your has everyone, with have you great to behalf a a in company, the today's I'd again. day. forward and on your Thank like who and you, to speaking of On thank appreciate us We look everyone call. participation joined interest we us as company, and

Operator

today's concludes This call. conference

Thank have for disconnect you your day. a may and You pleasant participating, lines.

CareCloud (CCLD) 2 Nov 232023 Q3 Earnings call transcript