CCLD - Earnings call transcript Q4 2023

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Operator

Good morning. My name is Joelle, and I will be your conference operator today. At this time, I would like to welcome everyone to the CareCloud Fourth Quarter 2023 Results Conference Call [Operator Instructions].

I would now like to turn the conference over to Chantelle Meléndez, Corporate Counsel. ahead. go Please

Chantelle Meléndez

Executive Welcome XXXX everyone. Haq, Fourth and Interim our Quarter Founder and the Good Roth, Norman Call. to On Year our Chief Chaudhry, Hadi Conference Executive Financial Mahmud President today's Full and and Director; Officer. morning, Chief Chairman; CareCloud's Officer, call our are

of the made conference call Act are Before we to as like the this would XXXX Section remind you of statements amended. Section during the within meaning and begin, I that of XXA certain of XXE statements Exchange Securities amended, forward-looking XXXX Securities of as Act

and than All performance, outlook business potential limitation, other conference regarding expected are organic fact statements, and acquisitions. growth statements statements financial made statements during guidance this operational of historical and our growth, without including, expectations and forward-looking future for

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

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

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

on and year call may Please and telephone, Events, presentation. click Quick full the the call site, and calendar, fourth download For Investor IR XXXX then earnings presentation. visit anyone who results XXXX year on download our by ir.carecloud.com, want earnings Relations pick you News full to our into dialed quarter conference

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

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

A. Chaudhry

of full you, earnings our to joining call. from all I and year thanks quarter important updates share and for have fourth you forward. the path for end Thank several Sinter, to CareCloud's quarter

on During operational free goal focus efficiencies improving the XXXX, of intensified we profitability flow. with our cash and

While continue period been the and challenges revenue to through persisted costs to goals on aligning with we is have expected XXXX. focusing transitional opportunities. This revenue return in our XXXX, our highest

objective position. free to by Our on centered and improving primary remains profitability cash our and commitment leverage competitive underpinned an flow operating organization-wide

modest We lay pave the and XXXX. line normalized top expect growth pathway more as rate expansion for in a sustainable to a we foundation growth long-term

patient in empowering our confident our for We exceptional remain deliver physicians to mission shareholders. our to while care cloud-based technology of returns delivering

digital platform Our complexity health RCM, to experience. generative outcomes remain administrative global to scalable over partners, seeing evolves, flexibility end-to-end prepared designed and and is adapted the fully deliver tech-enabled of physician we meet with a years in proprietary solutions. demand rising needs our and integrated workforce are XX AI our for We markets and to the the care of across health be and to

were Turning adjusted in and year, our of with $XXX full EBITDA to for million expectations. results of revenue our our the line million $XX

cost global the be to of measures. implementing the objective positive a achieved strength structure goal leveraging combination through effort will our and of year to flow, our is ahead, line while substantially optimization our on vendor our free of top primary pursuing concerted the XXXX and resumption balance a the during dividends. This line preferred workforce growth our credit cost cash to reducing optimize As increase by

cash realized approximately XXXX, fully developed streamlining of this Once optimize and be in year, $XX flow, at payroll ongoing to will quarter will increasing efforts reductions a fourth our operating and throughout year, to approximately our enhancing are which operations Moreover, of our free dividend. began exceeds expenses. monthly During XXXX. structure continue flow by cash the underscoring commitment plan million implemented and improvement executing our liquidity annualized positive the in million generating strategic the we profitability within cost aimed we an $XX of that anticipate

the cirrusAI of CareCloud latest the ambiently as a Notes evolve formating the in learn recently to continues note and doctor's clinical visits cirrusAI during solutions. identifying suite for them products to the can of patients of visits, summarizing and which review. called cutting-edge innovating curve stays in suite announced Our ahead addition We parts our key

the in within Once securely chart EHR. the saved accepted, the is note patient's

We these comes from the to innovative at these driving we of that are products forward, incremental solutions and expect forefront AI to our profile. revenue margin be

we elected by revenue, data our further proprietary large support of models XX can spectrum products the medium-sized these years over As systems. small, improve leveraging generation of across and the health

the us competitive These to position improve our profit will AI solutions market, helping ultimately improve in our margins.

be business, our As and in an concluded segment health we the momentum, shift strong line as our XXXX short paradigm in guidance, top we to anticipate be carry year medicine There growth of of the care undergoes strong further of a a expectations ahead. Despite and driver from XXXX. providers amount into increasing continues wellness year to with XXXX patients reflected towards preventive we among a for failing over the XXXX, which care. this key expect uptake value-based interest will and accelerate in

patient more first than fourth XXXX. the from doubled quarter engagements the During quarter,

the minimal a action by our our swift breach has benefit of partners fiber clearinghouse caused resulted and impact industry-wide diversified in our clients. the members exposure Change security and team CareCloud Regarding of to Healthcare, in

to our most proprietary clearing has diversification customers that Our actions partners, claims house. payments differentiation payer liquidity virtually our claims clearinghouse our critical payers government our are ensured further were resulting cleared, were related also further been over that to flow-through demonstrates directly Expanding the taken was of submitted all our The to as but not only across and remitted customers. benefit volumes unaffected submitted and marketplace. they CareCloud's the in on competitive

of diversified were players. claims impacted clearing houses. care, the are volume proprietary other between to rest and Those health being change by our industry breach our linkage The expeditiously other rerouted

likely actions to as be minimal from selections overall we business the The also overall teams a recognized do but revenue related that on neutral process CareCloud some secondary disruption could would than patients' coinsurance, basis. de is be minimis. to exposure anticipated. on such timing related, will anticipate impact There later to Payments the net be customers however, some

Norman be been now over I as CareCloud's with will to the years while Roth Roth. leadership been for Controller period. XX as through will a his to this CareCloud has Interim invaluable turn His CFO for it navigating and technical has company. company Norman the serving will instrumental search Corporate full-time CFO. know-how Norm? in we be transitional

Norman Roth

I'm excited the Hadi. this CareCloud, role January of you, CFO my in of which as Interim year. started in Thank

its business that within As to with we the focus it navigate profitability. appropriate my X, financial aligning XXXX, company and to announced through through and operating this the our our priorities October year of levers improving discipline business. resources committed was On effectively the leverage enhancing is increase transition, pulling on

enhance we initiatives fourth approximately streamline XXXX. cost operations, be to of Cost XXXX to million which $XX performance. quarter in optimize of realized annualized achieve complete, implemented are financial efficiency, the savings million reduction will and these measures were Once cost approximately expect $XX in during

that cash generate resulting suspended of XXXX, to year but in one cash preferred the savings we December our a dividend, is per and million Again, the return flow. stock free In goal consider reduce was we costs, positive profitability necessary. to month. This difficult decision company this $X.X

the few flow to free Once charge. the which recommend of management dividend. dividend Once company's to is goodwill charge, of sufficient goal the a preferred is generated, cash $XX stock Directors will noncash The million the loss XXXX flow a impairment to on borrowings is reinstate net the includes cash requirement for for GAAP a Board reduce monthly initial months, credit. our our line exceeds

which As carrying balance. the the company of goodwill a $XX value the our the million triggering The sheet dividend, event decrease a suspending on company's of as the from result was what prior goodwill known market balance stock review now reduced has to requiring balance caused it a by its capitalization, year. preferred in is been

million, In that I we referred impairment EBITDA that representing loss margin the an $X of net adjusted an reported I fourth net to The a above. just fourth XXXX, quarter revenue includes $XX GAAP GAAP charge the goodwill EBITDA and mentioned XX%. of loss of of of for quarter the million million, adjusted $XX

share. per income $XXX,XXX net was $X.XX adjusted our Additionally, or

our with revenue For of million XX% the EBITDA which net representing and million million, guidance, of GAAP $XX was line full $XX loss we adjusted EBITDA adjusted $XXX a recorded margin. of a in year,

adjusted $X.X of net million We share. $X.XX also income reported or an per

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

on cash goal the We free reinstating of are growing payment. focused with the flow stock preferred

be $XXX expect EBITDA million, we million $XXX million to and XXXX, revenue be adjusted between For million. between and $XX and to $XX

customers wellness guidance acquisition. lost organic partially from with the growth, revenue line including offset will top contemplates associated which prior the X the of Our of expansion segment, loss a

by our process X technology-enabled and of the business accounts. acquisition XXXX, million As previously revenue XXXX in winding affected significant revenue in our These accounts at mentioned, XXXX. of $X.X of in in adversely solutions down was the time were from represented

XXXX. strategic initiatives, in As on expect this we our to loss offset deliver we

operational impact not due investments the typically and as since are QX a patient deductibles, will the EBITDA. always, We normal claims, standpoint, level to efficiencies of sees expect our drive decline returns our industry From we processing the revenue and the seasonal does same this reduce adjusted combination the include of of cost. from to

do impact would the but do be small what anticipate events recognized QX. from expect healthcare, a otherwise that We affecting QX in change not be will revenue of portion any

challenges reflects to us a collectively stronger mix in position sustainably. guidance of that and ultimately opportunities puts Our a grow

remarks. turn to now his the I'll over for closing that, With call Mahmud? Mahmud

Mahmud Haq

Thank you, Norm.

shareholders our on floor Operator, increasing sustainable team entire please supporting free customers open support. our while continued would the and discussed, I profitability cash growth. focused their for questions. and to is our As for like employees, thank flow

Operator

question Maxim Instructions] Allen with comes Your first Group. [Operator Klee from

Allen Klee

Hello.

guidance your revenue a your which the over SR, that general, assumption go -- and and Could where has your -- have for to challenged. you little increasing. into more 'XX for just you somewhat in wanted go Med been Just what's

is just end that? So the up than you what and cause lower kind us guidance conservative could of think about how how it give to

A. Chaudhry

for question. you Thank your

are we getting reiterate do I will if specifically profitability directing that that that maintain -- focus just to shareholders. the a profitability for first while that think too time. think, about believe top for balanced to all, long-term So line remains the XXXX, towards value -- is but I try going fact we focus line us, of strategically before key I'm bottom approach significance answer, our your the and for of our the enhancing But growth we towards recognizes on sustainability for sharpening priority our of creation essential the same at the you

end to last So the our players standpoint, on can focus year, system a we our such at the relationship since why the increase think process stabilizing over Med you SR is that's Epic, the From and see with Meditech are profitability. the you of guidance our if restrengthening in the trying are are the significant as guidance, -- the EBITDA liquidity you look industry key if and like. of and health that we

had -- the looks have some will year. into probably we success have it like look we We more successes, as and we get that

if able we XXXX, see if small think, the some is for accounting So but for the in for of we pull growth. top off not least XXXX, the Meditech we stabilize -- these Epic, players, that, be may growth, revenue would part SR level we same on whether said some that some Having like, as top line this as guidance. Med they year the at at believe it -- that relationships, are more and we to which it's of the are

top sales, is chronic our care this the From monitoring. our line a combination management perspective, and of the regular patient remote

recounted will but the focus throughout top have true on and growth you why be too up to are line, and the not continue trying that to the profitability, we value. that's towards we targets so optimistic shareholders And that's where the the year the for, will put find

Allen Klee

where about And don't -- what more to product how name on, that my that, what the AI remember the follow-up little -- and create a but notes, benefits you your doctors? I talk question it that of could and is a you're where uses is to are the was, targeting

A. Chaudhry

products. other to workflow be current it's our serve medical similar at the their introduce looking to improving competition, think practices, started of how space, going we patients everyone the has it, in value And these I can are -- other way many Sure. better. to towards more the And they

So, launched HIMSS. then we so we a reason last product far, there year was there one and is demonstrated even at when

was guide terms trying we can of to patients. test one we provider the medicines provider potential next -- are first where the The be in guiding are these to that the could the or be prescribed the

it save And chart. and And convert recently AI the demonstrated and the we reviews the which to click into into patient one note. once can doctor and a conversation where the other the it listen is doctor can ambiently it then that

providers improve it's time, to patients want serve the the the we if going better. help to So

for through matter prompts you optimizing If results AI still you continuously no are which that it's responses think we improved. as going time the one, the being -- AI being use, about model over the with are the trained the and even first

we that optimization. going So are through

fee into it's we started progress you subscription, right haven't We this say, workflow should -- the have we the we and our started value see will per yet license as keep But on product. introduce to product fee, without the would the made medical how the we practices. to charging have of adding over and this day-to-day evaluating XXX when the time and for

Operator

at proceed. Please questions this [Operator time. are further no Instructions] There

A. Chaudhry

if well the Thank no for questions, enjoy call. are then you thank Please rest you. of joining everyone your there Okay, day. our

Operator

you ask that .Thanks, participating please and you Thank gentlemen, everyone. call for your this thank your conference today. lines. Ladies you concludes and We disconnect for

CareCloud (CCLD) 21 Mar 242023 Q4 Earnings call transcript