HCAT - Earnings call 3 2023 | Health Catalyst, Inc.

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Operator

Welcome to the Health Catalyst Third Quarter 2023 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode and the floor will be open for your questions following the presentation. [Operator Instructions]I would now like to turn the call over to Adam Brown, Senior Vice President of FP&A and Investor Relations.

Adam Brown

Good afternoon and welcome to Health Catalyst's earnings conference call for the third quarter of 2023, which ended on September 30, 2023.My name is Adam Brown. I am the Senior Vice President of Investor Relations and Financial Planning and Analysis for Health Catalyst. be the Bryan Dan Officer.A at section well Hunt, of are results the on Executive our complete on as me press available SEC, our and our our both Form of ir.healthcatalyst.com. Officer our can to in with our call today Relations X-K Burton, is website Chief disclosure release related And issued in furnished as the found Investor Chief which Financial of

high financial statements is of performance management's general call available of based today's to the challenges reminder, impact recorded as interest of the and levels the call.During comparable that, Act be our is rates A reconciliation pipeline a As relied to release.With Harbor as and obligation we the be pursuant will replay being to forward-looking any I Litigation in also tight filed measures with the the or differ. anticipated current the be representing Dan? Please disclaim Reform Form of our XX-Q XXXX non-GAAP and and forward-looking that filed high investors. as QX of risk following the Form inflation over our the additional upon These certain for our provide We provisions press XXXX a of will labor Securities are conversion the Safe views business. rates, the will of market, statements conclusion XXXX for information refer macroeconomic including XX-Q today quarter expectations the should Private strategies, and non-GAAP update will not regarding views to today's these call, results make most on of XXXX our provided and trends, refer factors to turn SEC date. may Dan. subsequent August GAAP their any forward-looking statements to to the Actual to any outlook. measures materially call in will X, SEC.We measures third our with of on financial

Daniel Burton

and you, joined thank has who this Adam everyone Thank afternoon. you to us

are excited today's on We financial highlights begin outlook.We some XXXX share performance summary call will from our along third additional with quarter. the quarter quarter metric. million results $XX.X financial I commentary are with quarter with our and to third with and pleased our XXXX quarterly including the results, our revenue third beating midpoint results of EBITDA on total of each $X these guidance of adjusted million

the raising as and guidance we bookings from slightly year through QX we with of reiterating items inclusive DOS previous we me result, tracking XXXX are of XXXX are client highlight a guidance. we additions ahead our range. let our bookings revenue And our Additionally, year Likewise, performance strong full some net revenue pleased are additional and our dollar-based full new rate.Now, retention XXXX expectations, subscription quarter. are

from in with improvement, recall previous results will each company's our discuss these of we and strategic calls earnings growth that our scale we our quarterly in categories of the will you You and X categories. objective measure performance

improvements, focused engagement. is maintaining massive enable satisfaction team to our on improvement, category, clients evaluating realize and to while member first The measurable ability clients and our industry-leading also

with streamlining and platform provided has suite WakeMed workflows analytics widespread WakeMed high system. inclusive of transformation case applications. a an its equity data options, its of After care strategy, the patient establish consistency and of published integrates value from on begin work example our data now systems execute along DOS and infrastructure both sharing the resultant Health quality. improving populations, analytics improvement employed recently its a teams data and transformation well robust decided clinical as to enable evaluating me improving of implement improvement our data internal and Let its to clinical to WakeMed clinical analytics its client by source a study. our care clinical within numerous data as the health to platform its from lacked across

result WakeMed care As I'd achieved X its of just in the direct and improvement reductions patient XX variable member initiatives, for cost million team engagement. year, processes these highlight to distinct populations.Within $XX in improved like also of category, a our

engagement our category, engagement continue the leadership to terms years, of scores. For this improvements.Also We In been for above the results, strategic consistently to many team the in team most our help utilized improvement foundational a place overall recent massive related our member's clients team team engagement maintain measure the leading the primary our ranking achieved providing engagement, level years to member percentile. recognitions a as contributions on measurable team level engagement have XXth our several software continues This external engagement. we at latest have has services member overall our enable that prioritized that member in of a make been we in member to the we achieve focus percentile Gallup building members team in or and levels. an pattern additional score many that because the to and central organization fortunate of flywheel, center in team engagement we industry team recognize receive member expertise

U.S. in were included be we excited to First,

in News healthcare to Work inaugural list. the Best & For World Companies Report's industry

in included in for Fortune's top for Work Next, XXth as Healthcare we the to well ranking list Best XXXX as among to large in company companies Best in list. are healthcare XXXX, pleased category, Places Fortune's XX the Work for to Women be Place

as with are existing strategic the includes Workplaces Top Utah in operating in environment the summarize, relationships. Workplaces of fourth to translated included we has performance Workplaces line strong our shared our recent list QX bookings QX Best shared Top with well align This we objective XXXX, with excited our some list.Our what previously beginning Salt slight XXXX our continues new To bookings consistent Healthcare as have Entering in in Lastly, of grow and growth, is to and to months. next through quarters Tribune's client in with which expectations. was Lake are relationships quarter client anticipated pipeline also have expectations. that category continues been to prior expanding in our improvement XXXX

experience the full the few current what bookings headwinds are As our of expectations, DOS reiterating tailwinds year dollar-based it that we inclusive subscription between double-digits.As quarters. and such, selling are new continue XXXX XXX% in consistent net we retention last to we described over and and relates client rate additions XXX% have environment, with to similar our low

longer see their operating to we improving are to margins operating system relative term in health encouraged levels, While continue be historical months. margins recent to challenged

offering, as Given mid-term the full the commentary let be anticipate expectations, component with in bookings We higher our to consistent area this to driven strong achievement, of our to a to quarter anticipate XXXX managed bookings bookings our Related to from historically me be typical our experienced is most by than pipeline services sales share have our bookings. tailwind. of managed anticipated largest bookings terms offering first tech-enabled a cycles that robust grow.Next, technology services cadence. continue budgeting the our in health of will QX of by be of we large will we tech-enabled our supported bookings and and translate cycle, services XXXX the consistent this reminder year annual anticipate XXXX year systems a QX bookings beginning the we bookings since that continues XXXX achievement what with length professional

through partnership.Lastly, clients an our acquisition technology their financial Registry use tuck-in and improvement within with Systems, Health software entrusted and Partners, data Health Accountable This measurable, acquisition new area. that excited are Next, to complement are operations domain. Inc. of the also that to ARMUS In we Health oncology they abstraction as closed Health leverage known relates as of services to in have client subset the a that oncology expertise and Accountable professional we has cardiology development registry growth of forward their meaningful services similar our announce a will October. provides as capabilities including realization operational clinically honored ERS, achieve Greater small us opportunities at to Catalyst's supporting goals. to have I our and chart to that mission growth, effort acquisition anticipate the beginning will York as we tuck-in it we solution improve its services in Partners vein, of across meaningful us provides to professional offering. the solution continued provides category, the and/or technology of our within maintain pipeline in provide to partnership DOS DOS Partners a improvements Electronic ERS' software Rochester, the platform, within am along such cases, existing support and Healthcare.AI to provides look with an to Accountable management data integrated network we support applications, with excited a our New clinical,

As differentiation this and strategic $XX.X The of a impact tuck-in of area XXXX ERS of will within tech-enabled be in acquired chart technology purchase technology combination our cardiology for price The reminder, from our April was services oncology financials strengthens on and we registry acquisition ARMUS managed XXXX. the from offering transaction million further ARMUS this registry abstraction. our immaterial.

remarks, you from later welcome shared and to team Bryan of year. full hear revenue we pleased are with our prepared them the in thrilled forward are in members to together working We to guidance look we ERS' our raise as our support talented mission.Lastly, will for

of well track in XXXX a including XXXX. XX% rate mid-term in margin cash positive towards adjusted reacceleration to free our flow targets, EBITDA adjusted our a in XXXX, growth and meaningful continue We revenue

Additionally, margin XX% XX% our we in our plus EBITDA target continue revenue long-term to target and plus. feel of growth confident of long-term adjusted

of anticipate XXXX in our operating we incremental complete to platform.With services turn to that, me in We Likewise, leverage operating beginning more certain managed let investments model expenses. as require streamline our seeing and little operating significant data in Bryan. financial material over call to work see we inclusive continue tech-enabled expansion material the that leverage R&D

Bryan Hunt

Thank you, Dan.

want third category quarterly XXXX, pleased million, comment our to XXXX X% services and generated an midpoint of on Before year-over-year. that I now same represents we to year. relative of increase it $XX million say scale.For quarter financial the third the the quarter representing I revenue our was performance. $XX.X This am for Dan represents strategic quarter growth I into guidance relative our revenue Professional diving will third representing the Technology XXXX what of total XX% shared million, for objective was X% echo last revenue. and our results, in with period outperformance year-over-year. to growth an of QX of $XX.X

as relative line of to was technology of XXXX higher same QX technology contractual access from Services of our points in period as XX%, data increase Snowflake mainly basis This by environment, subset decrease well subset without our XXX XX%, adjusted to decrease with XXXX. was XXX in our expectations. technology points basis decrease costs the segment, relative For of migrating a representing margin associated headwind escalators driven existing gross margin transitioning the an the basis adjusted small base platform hosting client approximately our professional points centers was fees Microsoft client Databricks XX%, due approximately to from third-party adjusted XXXX, last approximately third enabled gross year of and representing from year-over-year segment, was Professional increase in and continued performance quarter roughly a previously gross QX with cost base our quarter XXX paying on-premise year-over-year offset data of cost.In the multi-tenant by a commensurate X to built total of associated year-over-year.In with a XXXX the and shared a clients and margin of Azure to the basis services points second a

anticipated. below on utilization that last primarily quarterly lower driven call, was This shared than slightly by the our performance earnings slightly we expectations rates

I were XXXX, As into reduction million. positively guidance operating $XX.X our adjusted will impacted XXXX, total utilization by describe commentary.In rates in in expenses QX be we XXXX QX force starting will a move that sharing when

EBITDA XX% in last a the the anticipate of we along mentioned period adjusted XXXX adjusted XX% percentage and to this quarter. XXXX. were same Adjusted that was compares result of represents expenses driven improvement in an million our performance with to outperformance operating guidance non-headcount the QX by $X pushed QX million out with revenue, the QX which the be of XXXX was revenue expenses As total to EBITDA midpoint of favorably exceeding This mainly quarterly fourth timing will previously relative some year. $X.X

QX in equivalents adjusted to the We of per per in with basic calculating balance $XXX.X QX XXXX adjusted in was basic QX Our of as approximately number share million investments shares and used weighted of short-term income net shares.Turning cash, $X.XX. share XXXX. cash to was QX XXXX income ended net million $XXX.X sheet. million The average XX.X compared

million. total $XXX face between of and compared quarter million. XXXX, the the and provided total revenue due $XX.X of revenue XXXX.As $X.X liabilities, of million the fourth outstanding $XX.X And respective quarter. our it we year terms between an value for this represents last million between in our full we EBITDA of million of amount million to In year relates and expect and XXXX, $X.X for adjusted revenue is guidance convertible $XXX At $X.X expect we notes full financial million million $XXX their midpoints, increase to principal the the guidance

XXXX few $XX related QX between We a $XX also expect additional full me million million.Now and details continue to let our XXXX provide guidance. to adjusted EBITDA year

our technology gross Professional fourth our quarter. that QX anticipate will in we Services gross be in gross margin terms segment, professional XXXX. high of continue we adjusted be QX will XXs In roughly that adjusted services to In margin, similar anticipate margin the adjusted to the the our

our XXXX, QX areas. XX% a will priority which focus base, company-wide reduction of our key late in strategic investment our affect cost structure we will optimize approximately member team resources in of of Importantly, and

have it a the cost reductions making data research our and we platform. as operating structure size is levels within we of our are spend enabled segments, next development, place utilization and the our appropriate in within services, and generation across been the portion professional to we Snowflake conclude, While as large Databricks taking focused right

operating our also anticipate continuing streamlining as margin see services smaller to XXXX remarks. reduction initiatives finalized We I prepared QX be my points well gross savings but Dan? conclude additional that, XXXX.With These as in professional incremental several in to QX being will XXXX. cost cost material in result initiatives will leverage higher,

Daniel Burton

our their turn the Thanks Bryan. In back and to of with clients questions. members consistent to and like the I team conclusion, would will for operator and levels contributions recognize mission.And shared I engagement thank our high call for that, to

Operator

ISI. question questions. unmuted floor Instructions] for with you're The open you. is our make And Evercore Elizabeth, come Elizabeth your Anderson on Thank will from [Operator now please first end. sure

Okay.

will We to Vishal Sandler. move with Patel Piper next

Vishal Patel

of from thinking and We're new gross the whether gross margin My offset the around understand by managed about you how net question to revolves enabled prior the anticipated in Could margins. of cohort margins the you're of tech help us new launches launches. impact gross XXXX? progression greater XXXX curious be the services maturity impact of launches would

Daniel Burton

Yeah.

to So services the I'll speak margins. gross gross both as professional well as margins the technology

anticipate in colour working On as Snowflake because could as generations, yet QX to our throughout offset some support the platform, margins prepared that gross side Databricks we've technology that some in we're what We're bring to that be items striving range. shared so high-XXs and data remarks, the year there migration platform. costs XXXX also of we in on the technology similar the could I related the that to for side, which exact an are additional new seen costs, remain some next enabled through, we're giving not efficiencies technology terms further the in but of including and compute of by deploying components on

there what I a year. business, lower will point I side.On of rate prepared utilization professional more has your that consulting targeted are little technology remarks this play to to year. side, relates look than the the come like services the mentioned So which to mentioned factors special on that our had as next will into margin services bit couple a One, gross

profile that us.To cost That the will into of the demand from benefit Vishal in-line team to QX in be offset seeing our base will in We we are we impact that that demand strong reduction your contracts and they positively with just a services that the for forward, moving that rebalance a that member contracts to be order progression and year given of terms utilization piece our forward beginning in as benefit margins so anticipate level adding point, mature anticipate gross on moving and XXXX targeted QX professional other those affecting well members will will offering in team XXXX. continued do we're we'll existing new TAMs as TAMs some as see be to margin that is, into do next area. that

that into utilization And year. consulting so professional rate those benefit extent, will from a business some offset but improving you'll next see services to

Bryan Hunt

And I Vishal, than factors seen we anticipate what do several in would add higher be and in what would XXXX just of a from QX margin anticipate given points QX that gross those of perspective services QX. we've we some

Operator

will next Daniel from come Citi. Our question Grosslight with

Daniel Grosslight

yet, more next not mentioned provide staffing level recently, wondering, do how are out still that thoughts two, can sales I quarterly systems you you're there And given help 'XX one, know with improving, solutions just so reports the expect struggling you you're see health to particular questions levels? you thinking year. on adds you could you that in I if this that guess some to still particularly subsidies that they're now, about what developing listen but high know guiding the any really; to but systems have its year? you are some net are I'm an if physician or of DOS quarter, you financials for with Dan, next these in physician acceleration two cycle

Daniel Burton

general generally improvements. still prepared we our systems margins in some operating and end journey referred are in to each is as health are towards own Obviously, the most in and pre-pandemic quite you margin are experiencing. improved seeing our remarks, as our clients, health operating seeing some market. there So their system cases to improvement in that we seeing pressures improvement referenced we speaking of with not but financial meaningful are levels we But are

seeing of the focus for to of one bookings influence perspective interest the of this dynamics example, been do of more our the those a relates example, been, is more years has year our that of of it segment, areas will financial suit. is re-acceleration, year reasons portfolio likely year in our includes most As larger pipeline that where has that pipeline managed than proportion for as we're this will that and outpace and The hard some growth parts prior XXXX, applications that those the one portfolio of savings you is dollar do it near-term by traction, encouraged from terms represented our believe next offer the in pressure. of anticipate we professional a we which in our by well that in rate on our ROI the services like dollar return QX. of for the empowerment professional elements that services That tech-enabled the see do technology services some in financial some we're the result hard segment of and as of as financial segment in and can why

pressures, subsidy will the we're given in do than financial and our on opportunities the and the share growth anticipate some TAMs year of elements same for that higher physician growth over that been of in that address do we that some thing example our last in about growth. it year doing we've grow meaningful we that that services This those issues, depending we those last seen expand.The part have we inclusive several services tech where seen relates has have where operations some the years of that years XXXX, is pace. will to do ambulance our that pipeline help tech work believe So and help of as those our our do and issues portfolio offerings I'll

will we ago, that, components long-term, that prepared that do in our tech acceleration that against growth. important solution likely components measurable plus. expect far our Next both towards services such to remarks of do in targets will differentiated we we each our long-term anticipate year, components of really based our massive as and in of bookings are both minute we tech of enable the outpace and overall that I back improvement of the growth But on our continue believe shared for to solution Long-term, those reasons our performance those solution long-term of believe value the long-term reaccelerate XX% the just services those delivering data thus a levels. in that we mentioned the

Operator

Evercore Our ISI. next question will come from Elizabeth with Anderson

Sameer Patel

this that that XQ Hey, and of wanted on Anderson. Elizabeth just to that. I cost quickly of summit isolated to part next or mainly year? for of expense on some related ask what's to terms of like driving in for is maybe is kind Is the just Sameer XQ OpEx the

Daniel Burton

the bulk portion recognized XXXX that but of There as of incurring It's of this into in will we year that that be first some be will that's most be isolated timed cost the mainly incurred, QX. well. a quarter will are of but where QX, the

Operator

Our next question comes Larsen BTIG. from David with

Jenny Shen

quarter and Hi, Jenny on on Larsen. Shen Dave this taking my question. the for is Congrats thanks for

some enterprise So, the get in the enterprise color sense. modular offering. if price know are makes wanted more your if between you your shift, choosing could X about towards you just I to are DOS landscape, also a DOS and that side the on I which a current I just shift more the versus customers And macro the wondering one a them. modular now. more bit differences more am seeing explain

Daniel Burton

please make a to free feel share thoughts. few will Bryan, and additional comments I

And in some particular seen So, thus ago, we year prior referenced we more in a financial hasn't that have DOS to think just years. pressures surprise to us. been due XXXX, the meaningful few far interest to modular that offering I minutes relative the this a in of

we expect to a our modular new we total that be than of clients XXXX see in subscription net DOS years. more And we so prior for will category proportion do higher seen have that in

interest improving little offering. margins interest seeing referenced the a we more also of are new with the commensurate financial situation seeing operating of However, DOS broad on are side little more in inclusive that more a we as we enterprise a subscription some client are bit, improved

some take in increased Now pipeline already play of XXXX our interest But company. more of into that to that that revenue as seeing some performance expect. our think to some through then bookings overall are time play-out time will we and P&L play and through reacceleration will that out we we a that

We not encouraging. we some guidance call. specific are are providing seeing those of earnings shoots are during today's green that But

Bryan Hunt

Just kind lighter a the to add, asked Jenny of you of of and from differences more some DOS between enterprise about standpoint. the or our modular components DOS pricing

kind point million DOS average client. $X.X an for around of historically a recurring enterprise has services revenue and price annual typical of both new So, technology been of for

those concert through or in which that more Healthcare.AI. it's cases of of DOS purchasing be to DOS spread then even enable offerings, a the and that our light also use lower our those For like applications that of than in the And a organization. Pop we be services some around horizontal case example. are certain masses for Analyzer, an little point technology XX% with in deploy data can components where starting application terms clients DOS include and are modular financial can vertical value our of modules

of mentioned of mix given and us selling the that the So, means the assess pipeline. those year differences price kind on our between more clients we offerings this Dan that those XXXX for provide new of than those color lower and beginning mix the are and as items in average year, we for price what that the X types the have we within points is what is the for historically our will at seen

Operator

next question comes KeyBanc. Our from Schoenhaus Scott with

Scott Schoenhaus

tech-enabled new then you a meaning your Is these margin and structurally about to fact on of or zero contribution you mentioned from also previously margin don't start bolster or and headcount some acquisition about now in EBITDA contracts talked investments that than offering. that profiles X the on professional reduction. services release for there outlined gross is these the technology you more lot sorry, ramps all up at coming solution put quickly service You tech-enabled sort the gross had that year

Daniel Burton

and So, we use we very acquisition continued excited have are we variation of gross through realize terms in from benefits terms margin the we see ago. And starting around contract-to-contract exactly year and seen believe this encouraged that some do a technology various anticipate the we X%. start. be past, ARMUS from tech-enabled margin gains these the acquisition that about are recent where in the contracts. of in could possibilities we to shared we through in ERS, similar as gross will of of efficiency have perspective, the efficiency client-to-client services We to do what From with point the have

timeliness efficiencies and relationships Sometimes and by certainly maintaining it's mature encouraged But those as are are well we to little meaningful quality we as and sometimes continued a encouraged also progress little really those meaningful that. as a bit achieve begin higher, while we a lower. see consistent relationships are we that to able

solution. looking the ways more disrupt constantly be do also or are the the timeliness that quality to for We don't yet in ways and that efficient of

Bryan Hunt

we the the services I is Yeah, to side, relationships the share think on that's right, And economics heard Dan. unit what past. similar the we is pretty have for would TEMS Scott, what in

technology, part efficiency or margin profile additional where term XX% those to that and given start the mentioned, of there longer services provided upfront margin few typically a more that in proof where in longer We we of gross some to bit terms mature points rationale the and related that up at margin small we margin for excites level. be over tuck-in that's to XX% But obviously could We around of more term a As proof neutral essentially of in Dan acquisitions. upside services ramp some then gross to just additional related shared the have gross to and level want the profile. over-time is us careful that a little points less lot profile What some the acquisition early the years that to did, are are gross ERS, seeing more clients have by there. be about margin the that ramped gross that.

I think just well. as to your question related

reduction that our services the rates a consulting services, appropriate related mostly doing of bit and is cost that a professional increase level the are little are Some trying related tech-enabled standpoint where that there utilization we arm to we less offerings. it's from to to to

Daniel Burton

I of any tech-enabled OpEx do to to to as that it one enter expense operating would Scott, encouraged incremental that to managed continue that add contracts is these leverage OpEx. relates efficient meaningful we things, as be the services need we continue an see into to really that very from And they for perspective are

So perspective. also that is from EBITDA encouraging

Operator

Our Stan Wells next question Berenshteyn come with will Fargo. from

Stanislav Berenshteyn

obviously X have to been conversations changed? maybe has with all to you you, conversations you clients Dan, for Is them year road the clients. savings. the having on the any if and anything dollar sales a back clients hard different ago think in funnel with way? have Clearly, want compared had But you meeting now, year the you are

Daniel Burton

the in two are conversations So a little different ways.

relative generally First, from year improved. has XX at of ago, months ago, pressure the level a financial today

how to and of quality cost clients can delivery to bit allows little more have do healthcare. or to think a they of bit about a to more structure, think how And broadly space improve their the through it so the improve time our what little

gradually So improving. one are it but things which way positive. incrementally incremental, that's in It's is

enterprise-wide to related on subscription incremental was Health particularly consider prospective clients is to element from limited. months just very DOS financial that the clients ago, first prospective was basis much and There perspective very, is XX about openness seriously second more for think was that their very hard so of The really enterprise Catalyst, pressure to investments. the

is if opportunity out. a time, an new with client a tied that I meaningful we an seeing starting time that spend think explore. movement a to is moving I And face-to-face clients. of I take space, meeting think will is, operating little second more more directly to forward to more to ago, now bit, prospective is our few of the having bit there time mentioned environment I little in am the and so play pipeline bit to team minutes openness are And discussing that is is it a I a and think spend more there As observation little improving starting

to clients. emerging, see just way but we time are existing think some the of with we opportunities of spend We about proportion to and our that impact more will that that are starting we those that see encouraged the

lots the with we more spend existing time to proportionately are still But a starting little will time in space. bit spend We clients. client of new

Operator

Our Instructions] comes Sarah [Operator next question James Cantor with Fitzgerald. from

Sarah James

a to potential been aspect view maybe change services? professional was of changed consulting I bit that line? what the the service the near-term more revenue there in little your professional services So, or a around color get of revenue the view or has hoping of in on

Daniel Burton

been FTE back and So, year price up it supportive kinds been have down professional half choose last or faced. have meaningful higher of our has made we and we as for under are pressure to clients of dial first that able certainly have that pursuing facing tied those it are system services, press that relates financial the believe a little Contractually, we pressure, directly bit in year, based we that reduce type do clients and the model consulting seen to financial clients pressure consulting to being that of projects. half pause this health projects of is of to or coaching the have that to flexible the

there some We financial where cost given it faster we be are that certain of interest that that in offering some subsides need, on improvement consulting pressures provide our At consulting that lots than cheaper get does bit, our some can perform savings will to FTE for to continue pressure That incremental and long-term, same financial is some demand P&L, dollar prioritized part point that likely the see pressure lower subsiding. projects our better, we starting take price based part business, time, see a little clients. signs we functions do there we out that business. that, As and believe are continue also of model tech-enabled see of believe believe hard managed some those will will the meaningful of of to of will time some the we our but play lots we but services of more and where moving a forward. still that and for

Bryan Hunt

add. I thing one Just will

year standpoint those our of different the benefits that typically which of a is more a from X is services consultative One locked services than manned services tech-enabled term, contractual model. the model are professional over in

in And higher put But of so approvals of to make and very be tech-enabled high so to Board to model. model continues deals and of through the will services a that consulting environment. terms bit of have option with little those adjust but timing forward deal difficult the deals, of sizes under needs technology if kind deals large there. can lot those create of as precise rate macro Dan and feel often confident moving a to of and mentioned, in kind as work in that kind the approach the ready we very both like types we that client the addition those a And for visibility timing It does for conversion to exactly forecast. require those winning of improve

Operator

there questions are the you. And time, at no this Thank further queue. in

So, the turn Dan or back additional like remarks. Burton to closing I floor for to over would

Daniel Burton

for in and to in Thank future. touch Catalyst. updates the provide the opportunity interest you these staying everyone to forward in your We Health look appreciate

Operator

Please today's time third and gentlemen, day. this Catalyst your Ladies line conference Thank this quarter XXXX at a call. have you. concludes and earnings wonderful disconnect Health

Health Catalyst (HCAT) 2 Nov 232023 Q3 Earnings call transcript