TRHC - Earnings call transcript Q1 2018 | Tabula Rasa HealthCare, Inc.

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Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the First Quarter 2018 Tabula Rasa HealthCare Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded.

Now I would like to welcome and turn the call to your host, Mr. Dill. Kevin

Kevin Dill

Rasa factors subject Safe by good results for services Dill, HealthCare's market company forward-looking Act regulations Tabula avail the risks, and risks of that and and products Chief Counsel Tabula intends of may of and the I'm the meaning could are the our be those the implied itself nature Officer of forward-looking technology-enabled include developing made statements Compliance Rasa and the call XXXX. These evening. Certain actual you, that Litigation These impact other during differ or Corporate that Kevin and potential from to statements. to Private materially statements and changes to uncertainties Thank healthcare Securities provisions this laws Reform will clients. for Harbor of cause uncertainties law. HealthCare. within The expressed forward-looking to statements

call risks of Tabula HealthCare, of Knowlton, for Tabula our link is will Risk For to additional SEC, available XX-K. with facing it the through a page Rasa accessible to call information recording please turn A our Factors our Cal? including XX HealthCare. section over the Rasa CEO, Calvin filings this the the on on days. of website, Dr. Chairman be and I'll of the Relations Investor and refer Founder

Calvin Knowlton

our provide Also, Adams, who Chief our Financial quarter XXXX. tonight Mr. as on quarter joining first provide Business some Good current and us New and Thank XXXX is will update overview our update who us Marketing Co-Founder thank Dr. call. for outlook for new Officer, delivery will changes for second today with Chief and you, Kevin. year Development financial are With Knowlton, first promising and Orsula the well on full the markets. evening, as you and Officer, earnings an our our quarter Brian an me and

represented which EBITDA, a solutions quarter our health year us, the awareness in revenue first and to be further can strong greater of our and the for the exceeded again for The care marketplace. we raised to beneficial start expectations how

$XX.X of first increased came our increase million, $XX.X for a and of EBITDA adjusted in the million quarter from quarter XXXX, last in the at revenue Our from million $X.X XX% XX.X% year.

all highlights my Inappropriate discuss The recent Are thoughts share Rasa's article I of article that it Connect, is Before Manage addressing Care avoidable and adverse I in to focus solutions address suite with some risk way a based Matrix medication of Medication concerns. similar and provide to Tabula patient the and these simple that score, to an one's Mitigation directly platform, Rasa's We Risk medication on groups. facets medication could Older result which growing self-funded continues the prescriber around For healthcare risk. interpret appropriately. Health on and awareness score, from further want plans, and PACE, from Common on core Adults? growth perspective, impact quarter, Outside a emphasizes Tabula concern avoid evidence delivery, of the of is errors credit a of not from growing course which the from to first issue entitled, misadventuring hazardous including are Prescriptions to determine a potential individual's appropriate potential that this employer our action the be health

groups. a we serve provider at-risk seeing to However, are opportunity developing

to of this first the available personalized engagement phase new Medication MDVIP a and on Mitigation during is to and preventative Under primary medicine of care. company we concierge technology Mitigation For Medication Risk be TRHC's group clinical a services, network of agreement, and the that operates example, to will physicians. quarter, select focused MDVIP, a services provide last Risk physicians, national secured a

this excited to relationship time. this and over grow expect about we new opportunity, are We

national with active and pharmacy and robust discussions EHRs pursuing To progressing including X with regional support opportunities and and management is pipeline plan systems. we're this health health integration expand productive promising work, players, software Our plans. provider-sponsored with and

and visibility integration organizations are up in we includes the collaboration international of the This As ongoing. TRHC increases, pharmacies integration. with have a to by X,XXX approached potential Europe. explore to been Discussions few

also our and including industry medication and have speak expertise in called transitions therapy in We and innovations been management at for recognized PQA. national care to being by conferences, experience upon AMCP

be an call, this quickly the pleased in made ago, Orsula growing the a briefly to our few weeks incredibly dig is exciting Codes recognized in the misuse will a I based On massively Opioid also call country. use our I'm relatively acquisition us pharmacy it that leadership development later to industry Optimized around very discuss you the into which opportunities. But issue this important us, bit some small say becoming the SNOMED area, I CT acquisition is the week. turn discussed year-end potential on however, Our of call. PACE, cross-selling just to to leaders. we've over financial by new I we PACE of more in our substantial of which wanted a opioids a the Solution, will last and announced before with details but for footprint Brian the enables acquisition solidifies accretive This Orsula, has this share implications, Peak meaningful. further of

to our us. open acquisition SinfoníaRx cross-selling continues doors Lastly, of for

XX,XXX its fifth XXXX. expanded plan c, had I'll health quarter, changes per bid coming Walmart; market. Orsula? share to completing its programs medication strongest center comprehensive With the SaaS Orsula, call a an on update and Austin, however, details launched call a, the clinical PACE more than Blue the solution Cross to Texas; over more partnerships around to with In a b, and favorable overview, se, won addition, reviews; some starts d, out large and of in SinfoníaRx its Washington, for turn which plan, that first in

Orsula Knowlton

to Cal. Tabula believe I with effect those highlight favorable of today highly Rasa changes company. incredibly rule are in announced mission to number XXXX of will changes to I'd well-aligned X, April CMS prove our should like HealthCare. as a On that Thanks, be that and a X take

opioid first, to has The with control. alluded which Cal do to, misuse improving

they protective the all letter, opioids of X, or needs the prescription magnitude In deaths least of at call party communication our a safety XXXX strategy address effective required plans, were opioid are final stated medication, epidemic. implement predict taken the prescribed plans about Part that CMS' the may dispensing unintentional. misuse Starting launched alerts sponsors opioid the deaths XXXX. To prevent XX, all and time of Tabula step D the an at at expects dated as April a all concerned June Opioid of medications, agency time half are opioid less as opioid U.S., HealthCare According of to opioid Optimized pharmacist part CMS of unintentional the real-time to partnering deeply has concurrent engage XXXX, duplicative considered abuse. the additional involve in accidental of both other to When to Rasa and patients opioid As Further, and nonprescription Solution submit to Part for by nearly relieving overdose the to XX% pain. providers are the same about expects those be they our that and implement alert and prescribers CMS risk and about benzodiazepine. prevention. therapy use opioids and D call programs to overdose

when as in from cause As hospitalization full began elderly, June our runway this selling which such you has SinfoníaRx. opioid and already The in regimens. annual their a we more frequent held MTM in a and to of Academy meeting exponentially medication this amount presented April, have imagine, have amplified this partners, Care Boston are by existing of a take and Managed result, solution and challenges solution see late and as even patients patients, tremendous with complex partners patients into meaningful We may out higher our place can X, seen evolved can in the solution. death. Pharmacy interest doses, given of for the solution strategy need We've

XX Medicare update programs, and X This The SinfoníaRx Part Tabula invest To in MTM business. equation million, other currently changes partners. January XXX out D evening's the for We program our Medicare to Part terms on D couple of are of the on in believe opportunities Rasa shifting services close expand their MTM PACE part to advantage in this and to through of in D comments our provide 'XX. my There provides piece announced Part news seniors an this change of enrolled expenses will market. providers program. our I'll from is legislative its new the million substantially MTM within of very MLR encouraging call, a in encourage to ALR, beginning promising came CMS'

the becoming addition, July state Tabula contracted is The in PACE first in organization. start a With X PACE Arkansas, all process is in now Arkansas, of of newly X. one HealthCare PACE has the Rasa this which on which of the will

second, newly which contracted begin this The a is as will Carolina, organization North PACE summer well. in

We continue our strong to PACE and have promising pipeline a market. core within

Finally, organization both I on and which the them of the audit have and CMO ability CEO a results. with on CenterLight. change number including our along management, multiple the good to roles, comment in saw have of to news focus a in our work our want locations, unfortunately with precluded

improvement fourth we Our that first particular, quarter. with the the quarter outcome, data them strong in in same showed reductions demonstrated hospitalization

I'll to our have our with in call. next and of review share meeting We that first Brian? hope update, results. over detailed up quarterly during to Brian, turn quarter the to call provide a have With coming the near-term, more you to a

Brian Adams

to evening results. Orsula, XXXX you, review for on everyone us joining a Thank for and thank first the call of our quarter this you

increase or of million million the want discussed in XXXX accounted January In $XX.X medication revenue method. million, from remind been to the that accounting new Rasa my commentary Of standard, XXX, company adjusted XX.X% is first the primarily Before utilizing recognition financial to product Tabula total the I an All I XXXX, full the quarter our for of million growth $XX.X a everyone million $XX.X revenue year-over-year. health year fulfillment XXX% risk effective $X.X transition adopted offering or versus as which with of customer SinfoníaRx, derived XX% reflect change. component was months retrospective increase management the in base. quarter, generated have driven get in revenue $XX.X over the started, revenue, results The ASC in that existing Product Service $XX.X of ago. X, million our year-over-year from significant partners. well of total the our the revenue, existing by our and the a which as increase in increases by last XX represented service PACE plans revenue, XX% revenue The as within the providers, expansion generated market. well fee year-over-year. at-risk a XX% new contributed some contracts with inclusion work driven is new as medication was

was quarter, year compared the Our in to XX.X% XX.X% a depreciation gross margin, excluding and amortization, ago.

we profile call, As on has earnings SinfoníaRx our lower our business last first quarter. a mentioned the margin in

than less which with in prior fact, XX%, years. is In line

of and which quarter they the Therapy to any members qualification take place first Management takes before required inform the process notification to receive the During place. can services, are interventions Medication year, eligible is

gross points and to maintain target, X to XX margin with ago. to excluding ago. years. the an long-term expectations XX.X% over margin continue year of the We a to gross This Service depreciation a a basis compared next was of XX% margin our expense increase XX% Product to quarter. amortization in was quarter, first X consistent XX.X% for year compared gross XX.X% XX.X% the of

due the ago, SinfoníaRx mentioned remainder to margins As the moment our quarter seasonality to will first of a year, the business. compared depressed, be of the I as

annual year-over-year represented operating cause compared a million in for overall quarter the of XX.X% primary noncash margin in as is future of first margin service will the expect, expenses high SinfoníaRx. expect business for total to charge we service XXXX fair we the XXXX. represent the and Total significant in in in the increase acquisition-related quarter would an the XX% it as year an will change revenue, last of not The of range, of value XX.X% gross $XX.X portion gross to achieve revenue realize consideration As Sinfonía quarters. a of contingent

$X.X the expenses both in growth market for Adjusted XX% health operating primarily of last last year's than quarter client revenue amortization, year, the was markets. line EBITDA contribution to been and slightly management's limited first EBITDA margin first in was existing PACE year a compared first higher and The would depreciation with by million $X.X million percentage of compensation, adjusted XXXX in We the to XX% only adjusted quarter XX.X%, generated driven the quarter. from ago. new expectations the in was EBITDA a stock SinfoníaRx in increase given the plan as charge, compared this in XX.X%. and margin Excluding and in first have quarter

to a compared the quarter loss the to of adjustment of million in of This million consideration. $XX.X this million income in the included XXXX. the quarter not change fair quarter's as behind of value consideration net noncash for the $X.X GAAP a contingent Again, our GAAP loss related net was XX.X%, tax $XX.X is purposes. acquisition-related of tax deductible effective net Our first negative loss primary to in driver rate charge contingent

per result, quarter the compared quarter for a adjusted quarter $XX.X net net million diluted As Adjusted per a to share of XXXX $X.XX first loss to diluted the on $X.XX diluted were common in diluted per calculations and income shares outstanding, XXXX. per year our share loss of was stockholders respectively. based income first million share $X.XX of net compared first a ago. share was GAAP The attributable $X.XX $XX.X to of

per in intangibles, expense, fair Our of consideration, excludes adjusted and acquired quarter transaction-related compensation exercises, of net the contingent changes stock-option on for impact of expenses, the payroll income stock tax diluted those items. related value tax amortization share

balance sheet. the to Turning

As $X.X leases. approximately of to the access of and March, XXXX, million related company of At million $XX.X we $X.X had our had a end the under XX, of to of cash million March line credit. balance equipment debt

remainder our acquisition to get and that of the quarter the on to week. completed I last I like guidance would Before briefly we second for touch the XXXX,

PACE management a mentioned, provides is Cal that services Peak As to health Solutions PACE company plan organizations.

that to to Peak we the excited in today, gives us by about organizations bring to about XX offerings our of overlap capability service cross this are opportunity Solutions with PACE adding only the can portfolio And market. sell. XX% We PACE an this excellent PACE

approximately there acquisition on million accretive of the $X.X both and in and an earnout will up will at expect We closing, cash paid be bottom remarks $X.X for for of based business to with outlook quarter the today top approximately We be sellers initial to the update performance my million our XXXX. year on in full outlook XXXX. second our the and for I'll conclude the line.

adjustments or contingent the $XXX,XXX million net quarter be The related million. of be XXXX the to in $XX not second to million of the in benefits Adjusted EBITDA income range do net SinfoníaRx with to the $XXX,XXX. further to consideration, $X For projections to to the anticipate XXXX, range to range of for $XX $X.X to be and any revenue the income in of we charges include in respect acquisition. million,

be For now we full our year updating revenue XXXX, of have at range. are range we million. $XXX and the revenue not remind midpoint total our CenterLight be be million $XX XXXX anticipate previously our We million guidance. included million service we Of to I'll revenue revenue, in stated to expect of to $XXX $XXX total product in the outlook. you that to that

increase a of adjusted guidance for equate We XXXX to XX% the of continue would the range we year. during and expect be $XX I'm midpoint now million. $XX.X our $XX in of first The full And over quarter performance million. Overall, EBITDA loss million the year $X.X a XXXX. to basis expect million in our last adjusted net of the range range to to pleased margin very XXX to EBITDA point with

continuing I'll short- favor for are in That the regulatory prepared comments. a coming update you We forward quarters. impact to there the turn of earlier, And remarks. in I over progress concludes back my to with the as Cal? look the financial over beginning number our the company closing long-term. should our And Cal of and investments made to call to Orsula the mentioned that in see SinfoníaRx. tailwinds including we XXXX, benefit working are some of

Calvin Knowlton

we and Matrix medication that the the strong is it's growing are the beyond open while you risk to important closing, I -- incredibly with to far see opportunities partners, what ability bring Thank is medication thank means would our address it is society let's look the as throughout to adverse Risk Brian. the With addresses market of we're Mitigation XXXX Further, team that, the our and of for you, the problems remainder name, has ahead aware U.S. excited to Orsula to the not the Tabula events empowered saying members. to today, to the like the a domestic start, on call in off all runs well-positioned to and for I'm market. very for Tabula solutions. which our brand of year. this of Rasa capitalize off only update extremely our Tabula provider And challenges questions. the customers, keenly Rasa. in In continuing ingredient, the assessment to us that Operator? multidrug Rasa of I note forward year need the

Operator

is our question from [Operator Daniels with the Blair. Ryan first William Instructions]. line And of

Ryan Daniels

Brian, be let Can on give contribution? the you magnitude me both to ask a bottom actually bit us given more accretive the you've to and revenue would they EBITDA the you know reiterated. I the was said actual trying just little a and top sales on there quick EBITDA get but color was one, but Peak raised, line, acquisition.

Brian Adams

Yes.

end Ryan, in So from revenue there, the about Peak that you additional that probably, of contribution Peak number, $X May a an million Currently it's the probably beat margin. from $X.X million. first And then, $X rationale EBITDA about And million if XX% we generating projecting, we're by quarter. the annualize to around was is year. the

million. in that, of around around a the so That's kind to initial basis, multiple. XX contribution of purchase year probably using $XXX,XXX price how and $X we got you're using around full And on a

that if the modest sellers this contribution. at of of point, a the was adjust hit kind bit And to EBITDA down. fact we the little given the given bit didn't does additional to earn that of that's feel the the for it more opportunity up in But range, we fact business relatively an number the there's So better. or midpoint appropriate terms little a

so to a our decently EBITDA that's this have of rational a guidance this And pretty is kind -- point. point we related our -- wide range at at

So we share didn't that. think it made to sense

Ryan Daniels

you fair. call will pretty question have for Helpful it's to in do that's a immaterial change meaning for which or the though. guess, plans EBITDA And do think teeth, of solution? but anticipate regulations, that flexibility Orsula the similar plans a plan management. have will to CMS No, lot have place I'm to D curious robust to could Or bigger I if a it MTM truly whether then. you Cal, how you opioid of have Part all the anticipate it afford be about address issue? the a maybe

Orsula Knowlton

Well, in then, letter information. are format to call the specific happy for share the regular the response. Plans, provide Medicare to required I'm they and Advantage and detailed the

could they However, they as around support. And to improve innovation also asked additional what doing unintentional opioid be for misuse. almost plans

So support have. solution we the what can that a that believe we have beyond would PBM

Ryan Daniels

Okay. a about size new. you to the Or you feel pricing give just I product? And can us that know market addressable for it's maybe talk opportunity of how total view there? the the

Brian Adams

This month to in similar of, Brian. that a $X.XX we're probably, would this $X. I'll member that model, per take which we'd Absolutely. per a between one. have estimating Right now, is be range

a think more less certainly addressable Management market, a you Medicare Medicaid our targeted as market. it's And with this just much Medication slimmed-down So larger about a the than much fees. and program it's But Enhanced than Therapy approach. is

includes commercial. this So

billion we're of initiative. really opportunity sizing just in $X it could So the opioid be this as upwards overall

Ryan Daniels

but the of plans for update And shifts any conversations could MLR be are one guess. some two, Then, enrollment. hop your Feels early or about number towards effective from a operations feedback lot had move would in spending; health Have know MTM? drive Okay. number and positive it The my I the it yet change the one, payers? you into view MTM. market more gotten you if assume, one, the engagement could I'll great. drive this importantly, their I there off providing and on with how more you've I'm queue. curious could more new existing and commentary final to

Orsula Knowlton

Our their -- been Academy development. in of this They team has. with SinfoníaRx in involved have Care actually through relationships Managed Pharmacy

helps to that to in improve outcomes. have this expand it, is people desired to ability So more need the something who and them MTM

Brian Adams

to is focused And certainly it's the more to on where PDPs. Medicare side traditional be this That's your so to going be going not going Advantage relevant. than

Operator

is Naidu question next from Our with Mohan Co. & Oppenheimer

Mohan Naidu

Are Brian, I conversations on not? the are offer the So have that MTM question that on guys, MLR hesitant they big a that with cost guess to far, an factor so now add MLR. also, last obviously there engagement you can whether cost cost now plans deciding Or right MTM was the starting engaging now or to into the calculations? into in

Orsula Knowlton

Brian. ahead, Go

Brian Adams

Brian. is This

certainly there I think along in more address and more conservatism of spending a programs past seen to it And creating interest larger what we've much the that related as MTM. are been lines seeing the robust number has some of membership. we're is in

based on So think, see expansion. And we're I conversation that's what to seeing. we're certainly, initial an our going

Mohan Naidu

it. On PACE. Got Okay. Peak

the My that that MTM? have. and it software on they just is offering nothing solutions Just now are on workflow their correct? PACE with has to right Is broader do for assumption management that

Brian Adams

today. offering really risk nicely that that in ties It's management anything doesn't space. It the add-on That's risk already we're to with and into capability accurate. PACE an MTM adjustment do have services medication our

cross-selling attractive. extremely So is

outcomes other other the allows is track get One with access our us of do data precision of for business pieces more us and that to a there. we the elements give some to

be utilize to that as well. able to excited we're So

Mohan Naidu

question Okay. Last numbers for me.

to that take back usual does Or than quarter? the the margin into it's margins we side, gross go to of come SinfoníaRx Like, back on one How ramp understand fast I QX, should qualification as because should we longer the QX you on period. it do -- profile? up? So expect their

Brian Adams

ramp-up to No. in We're that see QX. going

second. So quarter it's a pretty first significant from to step up

Operator

with from is Matthew Gillmor question next Baird. Our Robert

Matthew Gillmor

provide was opportunity organization. for hoping organization? just on could could Tabula way I And some would to think what sense you details in us interested the that we there Cal's the that a comments provide for size was the of model, international a serve pricing to opportunity? about pharmacy is so I about get

Calvin Knowlton

Matt, would Cal. a be an into would be integration be yet in model. can't this an But and specific EHR software a it SaaS of into pharmacy system, both. still matrix also because We deliberation. is so over ingredients, I we're go It them our are to the a the not this, pretty under about it's to much across came same because pond. us. and didn't they heavy transfer lift Matt. heard the We This out ingredients seek us, just work because

want we such so it's on since didn't -- ignore a one the large And we opportunity, to it hand.

study, of We XX%. have we our in or On for hand, X that report, actually from we same we're IT -- of London, the our And we're probably were all out the mostly Medical they We're XX% also November upbeat. really multidrug. they're all tour example, they're there. about again, on system people would And exciting. year thing Director's on the there with and a taking was here. bolster the the on But of staff of some busy that's model. other using negotiations, in pretty They're a the from a now in to it over diligence bit. Medicare, And domestic stuff. months X drug through have what things. doing. over also, due take But their X with integration, in while I people, nothing more at business and -- we older it's went happening doing on they extremely -- And meds, last one-to-one they're this mean interaction just actually, just England, so

is multidrug ubiquitous, and issue we're somewhat this problems So learning. polypharmacy of

what an overview. you you So that's exactly to just but not give wanted,

Brian Adams

I the got influential there is this group would in extremely two just be, market. European

so to is for with. the to experiment us really start And this partner ideal

So pretty exciting.

Matthew Gillmor

the putting a then, Sounds leverageable that be the quick communicate. to want investment would make had you're The up to Could -- you just that to pharmacy adapt sure And as like similar U.S., here to some in systems in that question. a capabilities? follow you extent that the it.

Calvin Knowlton

we're thing it same across think, stuff, And functionalities done using thing that in be hospital that -- would same integrating I for be they're and first. using real the here, would pharmacies very integrate the pond. here is we're in pharmacies we The yes. interested the Actually, It's we're doing. that exciting yet. HTML to that And it that also -- that into the pushing haven't

that's little little that's for us. this us into kind that intravenous And So what's in of different integration And needed lift type pushing will lift a pharmacies a hospitals. goes of a the that type a of stuff different taking the the bit of That's just of take. is doing that we're we same be in to that. -- bit because the

Matthew Gillmor

terms trying just of on Tabula broader a there changed? Or thinking up could Just to risk be Okay. revenue that Orsula's the following in some in just then, team mind, you're sure that And that management Rasa? part? CenterLight, I of realized Does is your understand represent when that a make for delay comments. about wanted to has now we how understood.

Orsula Knowlton

is think we a Yes, risk. broader don't there

really mentioned, were our I the we able which to fact from excellent quarter as to the fourth on and results quarter, present. first be to were, repeatable In counting

we are So as mentioned. meeting, I had

just we it's believe So delay. a

Operator

Our next question is from Demko with Stephanie Citi.

Stephanie Davis

Could the kind sales stream And Opioid the Optimized given about us MTM help should X revenue over the the Solution years? initial how partners? initial to following of ramp you just your cadence rollout of talk in

Brian Adams

the And dig on revenue I the then, process first sales Orsula ramp might can maybe, and the talk in talk you. about for launch.

Orsula Knowlton

Sure.

there interest many definite of there we differentiated. looking customers mentioned, one for the the saw A solutions, the of -- or the finding people large from we people American lot were launched As not really Managed -- at looking the Sinfonía. customers, Pharmacy. Academy and that's Care of We of

a as well which opioid filling still So strategy, for of could some we need nonhealth the CMS larger as is be their of requirement believe that part by partners. we plan their

So that out. roll to into would really think months take to -- we X would this XXXX

Brian Adams

at is, of lot the way certainly revenue the side, point, interest. XXXX kind it of in going from revenues And we be we're at a generated of say, this are seeing less this of type just but X% than to are that on Stephanie, I would our looking program,

expect our But would so this program next in something upside of by the considerable in X% at is that And forecast kind of probably right I think that heads at opioid there's now. year to represented the X% point. where are revenues

Orsula Knowlton

us And really provide we're to Yes. being take or data they would already remeasure the -- have results. anticipating at then and provide what risk, that to plan data intervention would is able those risk-stratify, we identify

not Brian So or program. left mentioned, mitigation risk -- something as as MTM-plus our that's medication as

plans. can for Something rather we that accomplish readily

Stephanie Davis

Okay. Understood.

so days pipeline mentioned ramp. on offering then, And And differentiates of yearly Orsula, do what have other you you you differentiation the some add-on What versus in peers. solution? think your kind to the solutions mode? early in do really your maintain And this

Orsula Knowlton

is, increasing our unintentional could render dosing, at dose use through challenges it's opposed overdose. result multidrug looking or and look morphine-equivalent regimens they're changes their the Well, Sure. that interactions tools that that we're individuals technology proprietary the in let's medications look a today have can ineffective, at maximum let's to considers with in doing as of what quantity, at requiring

be a we're well. from scientific able attacking, can our we fine-tune come it as additional to add-on and the with what roll So using and up Structurally, eventually, we'll processes us, matrix. what that doing differentiates approach interventions out to we're that

Operator

Sparacino First with next question Analysis. from Instructions]. [Operator is And Frank our

Frank Sparacino

two Maybe, questions.

on process little plan and terms BCBS in can sort more to give and they utilize how technology, one, of color a the sales deal cycle of the the competition? First just you bit

Brian Adams

that XXXX. at to that go effect referring right? end Frank, into Is closure -- So in you're the I contract of think the will Sinfonía

Frank Sparacino

Yes. Yes.

Brian Adams

Sure.

So be utilizing them we that's and SaaS-based be will name perform can't going Sinfonía where model plan to right their to the a now, PBM, MTM the platform services.

to bit $XXX,XXX, our similar kind about just what to it's going they're in give So to maybe for our teams contract XXXX. probably the do, a of sizing SaaS-based, going be to just new us, would little platform. opportunity, north you a using on be And that, of a

Frank Sparacino

Or the annual that is Brian, XXXk an TCV? figure? the was

Brian Adams

figure. That is an annual

Frank Sparacino

that comment period your I sort robust. on this on conversation pipeline health has on In time, your any coming the resistance plan And -- of of, delay then, sort concerns conversations, some going also, just those then, in as was up like? would they as as there conversations? obviously And kind view in or of is what Okay. quickly for if progressing been perhaps of sort Cal, the are of being you think, those

Calvin Knowlton

progress, don't large this not -- there's of And very very, example. week has entities. the quick, there's very good cycle for past just to -- -- layers. I the plans. And been think actually health we're lot But selling we've even on sales it's having a

working some in I that identify we we're right contracts, much too can't pipeline got on I until but to opportunities a that half So get we've our over large now. dozen will say

So it's Frank. That's just the issue. a longer sales cycle,

Operator

Steven from question And with our next Chardan Wardell is Capital.

Steven Wardell

And of what this if about? was us the buyers your apologize what hearing are areas plan I So you're there? their talking interested color channel? is they're from in can already you what health give on in the is world but most to just going you the What -- asked, about some

Orsula Knowlton

we opioids, multidrug have morphine AMCP, the to about interactions. the [indiscernible] at large of that chemical explain conference Well, codeine it come a challenges had Steve, people with to structure isn't that to

are the the opioids of So at list. top

to opioids. If read [indiscernible], the just paper, a conference you there's go about

need solution So there's that definitely offering. a the for we're

issue more people from that's are to trying with get think what the to of regard biggest us. I

Calvin Knowlton

This is Cal.

rehospitalizations. concern think, hospitalizations, reducing gestalt a reducing I about is certainly, there's that also, cost there there and total reducing still where a and

our attraction of also on hospital on that the working they're not And it's -- which pond but do. the across a people this, to lot Transitions, Stars, just the me. transitions thing And now too, Care We care because surprised -- found even right have of actually, are model.

another So in the expenditure thing I total that's reducing by -- reduced think is both can discharge. -- the misadventuring, and what's be post hospital medication that

Orsula Knowlton

in Overall improvement quality. Yes.

Calvin Knowlton

Yes. issues. The quality Right.

Operator

ladies and and We this Thank you. gentlemen, you our concludes thank for Q&A today. And for conference participating.

wonderful disconnect. everyone. a all Have may You day,

Tabula Rasa HealthCare (TRHC) 8 May 182018 Q1 Earnings call transcript