TRHC - Earnings call transcript Q2 2019 | Tabula Rasa HealthCare, Inc.

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Operator

Good day, ladies and gentlemen and welcome to the Q2 2019 Tabula Rasa HealthCare Earnings Call. [Operator instructions] As a reminder, this conference is being recorded. I would now like to introduce your host for today's call, Mr. Kevin Dill, corporate counsel for Tabula Rasa HealthCare.

Mr. begin. may you Dill,

Kevin Dill

Securities good forward-looking Rasa am to HealthCare. Safe that the the of and Certain of counsel made law. within statements avail Dill, the for the during Private of provisions Tabula The will Harbor Reform evening. you Act Kevin XXXX. be I call corporate itself Litigation statements Thank company of intends meaning

that differ factors materially statements uncertainties impact subject clients. of those These actual to that other could potential healthcare technology-enabled may are and HealthCare's statements. cause market and forward-looking the implied These results include our or services changes uncertainties to from expressed forward-looking regulations nature by and Rasa Tabula laws risks, to for products the the developing and risks and

Xst, on be Annual A Tabula of our Factors XX XX-K the on relations with the on including please For Rasa the and a filings recent XXXX. risks Risk investor recording filed our days. additional facing is for SEC most HealthCare will Report with our this it information accessible to refer SEC, page Form website the of link section through available of the March on call

Calvin Knowlton

at development XX% earnings growth. new for million, was markets growth. evening revenue our who XX% you fiscal XXXX. our and EBITDA well Adams, business XX.X you, XX% and on the with Thank Good second was representing will financial glance Kevin. as for our per financial XXXX on Adjusted million, as latest update for our our joining provide provide activities; $X.XX, quick update first-quarter and earnings today Dr. officer, thank representing outlook Adjusted chief representing was numbers Mr. for Orsula will growth. and share and the chief who marketing, officer, XX.X A quarter, us are second-quarter an me Also call. business Brian Knowlton, co-founder

our across aspects performance We had all of business. strong

will Orsula summarize which pipeline, strong a had shortly. for also We you

value mitigating is unique using identifying interactions. by proposition main our software and Our simultaneous multi-drug

deeply chronopharmacology, into the zero of risk grounded Our each and score MedWise science we pharmacogenomics, compile is for XX pharmacodynamics pharmacokinetics, software patient. to in a singular from medication which

In personalization, depicts run thousands a on medication overnight the risk and from histogram millions to of this a cohort patients addition produce we on the number patients the X-axis can Y-axis. the to that scores of and

XXX million exceeds lake data Our patients.

Over our Therapy extensively have data grown past degree They our to Management analytics Medication than personnel. mining Pace have year, we sets. CMS-sponsored internal with Enhanced department data worked more dozen a analytics and sets our the data advanced

to analytics access spending Medication our meds with Management With on We sets information, share Enhanced as the results both reported would XXXX have well data we including prescription, you such information to pilot. these as as drugs, CMS from like visits, physician medical regarding gleaned visits. recreational we I some ER complete time hospitalizations, pharmacotherapy have and of this Therapy last year. over-the-counter,

XXXX We results are received the have now embargoed. which

to scale. medication of stratified had risk with the above XX,XXX is quite In who consult be the XX gleaned from which was with embargoed sorry, XX,XXX CMS -- each signed our our monthly aligned However, also actuaries. tracks X and year risk The identified I progress the approximately department reporting analytics patients group to we which conduct our We on from patients the we XXXX, patients. cohort that the D approximately XXX,XXX a XX able I'm results purview by to Part score will were departments, XX,XXX. were analytics

The to XX and prepare patient a again, days. is telephonic the review and minutes we quarterback prescriber. telephone second is minutes, subsequently retrospective. able to reports telephonic within a limited we XXXX and their it consult preliminary contact risk we In consult telephonic safety along to were XX-minute contact contact, time, with XX,XXX XX-minute send the with medication Prior to patient. one selected to A means medication XX follow-up to review, XX

In contrasts it where Pace other prior contact being is already prospective medication filled is a and the every words, with to taking our medications. ongoing are touch This they with month.

that the MedWise after CMS' So, first X%, our year MedWise even certified of platform with years. spend than which finances by was light reduced medical touch, target and more five

once medical Our also than spend that our analytics determined in interventions reduced X%. by XXXX, department more one-touch again

duplicated risk for only then intervene. consulted whom in we from not a This from almost These switch were medication XXX,XXX risk the was had risk intervention for or at did event XX attracted is an not we patients compared of drug adverse To at XXXX. patients XX. they our XXXX That below patients cohort, bit, we who and scores looked score medication with those gears higher. were the less to

shocking, pharmacies, patients certified MedWise been So the and questions of ask these We was have even found what we by not data. yet interesting, lower our medication touched concerning. most the three risk, at

First, drug MedWise drug between is a rate and hospitalization The with adverse events in correlate medical risk surprising lower adverse And hospitalizations score expenditures? is risk relationship this medication a and how? there Second, and there between events relationship cohort? if results. third, so, does

answer events The in risk First, medication and yes. there a between cohort? reported is the relationship hospitalizatiions the is, drug adverse lower

annual adverse overall events greater reported times X.X times One and per spend correlates greater the medical rate X.X month. of admission them drug with where

events adverse yes. score lower the risk Second, is is, Again, the relationship answer this medication and cohort? between expenditures medical in drug

To third For adverse this would Members XXX,XXX XX-month the we analyst, with MedWise if additional an rate hospitalization entire if answer with risk drug almost that with drug cohort how? the so cost compared so adverse started medical total had correlate event average without and of $XX,XXX question, the is increase reported the event. in patients. members reported

yes. a data. the score. hospital average here's between score And D answer, Part risk XX-month includes XX. and MedWise A, The rate resounding, the correlation is admission strong a There risk harvested MedWise

of XX%. risk score hospital the XX%. and the the admit XX the XX%. unit B, MedWise XX, for XX annual single the $XXX admit is reduction to what of from with medical annual the MedWise each to is score, hospital data C, corresponds to the risk tell rate rate MedWise XX, XX reduction. spend equals point admit The to XX rate or to Furthermore, the drop score us, each equals annual is risk that annual example

and of The number take-home life. data one, is from and legion drug of of this, are all bit this caused quality of degradation a events quite adverse mortality

the data not also We this to indicate, drug that preventative events expect were sufficient but mortality. also, cause of cohort in adverse was a

serious adverse MedWise and from risk be our and life new which predicts regarding interact, deep number how unique score patient. events, drug And medical medications using three, adverse two, simultaneous for caused science hazard those technology, of derived are especially interactions by can most events, quality the Number prevented. work drug a multi-drug

Preventable healthcare adverse also unnecessary drug events result system. expense for in the material

update. news, now for to over her uplifting I'll that it Orsula turn with So

Orsula Knowlton

you. Thank Cal.

We our such and I'm to along have Sinfonia's take going to quarter, are of to market Pace in platform. solid the touch look delighted performance HealthCare have regarding a quarter with a this at business. CareVention on brand -- strong closer provide had prescribed wellness our update all areas an

medication module of record-breaking them XX%. success CMRs This the well this turn quarter, regard dedicated number they increased expect very team the new VRxAssist annual providers, half to PrescribeWellness, Through on continue the great two number team is Sinfonia's over nearly reviews comprehensive customers which of first and XXX to upon is to during of contacts Sinfonia top-line we product $X completed or a incremental new that revenue second the do of million for are growth selling implementation. have months, First, past so. of of With pleased reached about their CMRs. clinical seen year, of to performing the direct patient we the inter-professional the

operations to pharmacy revenue I VRxAssist services, of of success these think PrescribeWellness team for the is one which optimizes efficiency, expansion with indirect services first support using capitalizes quality all and remuneration opportunities, lease. they outside TIR Currently recent value-based the direct on minimizing Sinfonia's and virtual had outcomes contract fees staff integrating the in workflow payor in their goals. cost Also as Highmark, center while achieved expand to of an average vendors. or new process the client. extension PrescribeWellness fees improved and TIR is measures, the

the summer, developed which they've this even season, PrescribeWellness' of business. far an course selling is future So stronger over pipeline of

PrescribeWellness center is Engagement MedWise for Patient quarter on of platform integration Our first on the the track of XXXX.

a our pharmacists We and dozen are engagements of platform a pilot concierge half PrescribeWellness entering into develop with offering. MedWise to clients Advisor, launch

we meeting platform. panel MedWise advisory TRHC in PrescribeWellness the on recent held that found meaningful hosting headquarters, the interest PrescribeWellness During

and an pharmacies. SinfoniaRx to decision patients pharmacy and are medication engage to how overall integrated MedWise. outcomes humbling support drug believe decision our network center PrescribeWellness with This it, put even pharmacist health extends this much event. PrescribeWellness telephonic our medication one of As call community model SinfoniaRx now is I like help support we support collaborating providing solution local type realize haven't an care of to to providing broader support providers independent with patients pharmacist avoid market. could adverse had It tools and to can't provide improve

the to consumer. The pharmacies result community centralized effective in call the efficient chains, healthcare across in center services, more available country, only which were to previously delivering large and

in is clinical their several company Cohere, their success, our dashboard being the also Just new clients. on hospital to great mention recent pipeline. into as They new existing had written bringing DoseMe, which contracts acquisition has launched known

Next, to an our provide new CareVention brand want I and Pace about update HealthCare.

that compared participation encourage that is across including to federal news perspective, support continued to X,XXX Capstone, month is effect From Pace of willingness home. Recall Mediture CareKinesis, a per Pace Peak took the the program shows and we on less This service Pace, Pace, if collective a government, CareVention Pace federal nursing August to for they the participants new government conditions market from Xnd. the in our the were Cognify. provide offerings good and growth.

delivery. more new believed same grow programs is efficiently the faster, will and It time, help that care at operate Pace enhance these regulations

will organizations changes the of expansion We platform in Some are the fall. organic more growth, Pace operational help with these our growth Pace Along flexibility. states. believe achieve we seeing Pace easily CareVention organizations multiple allow new more

and the addition we strength Truly client ongoing to From we a our XXXX. are in through strong have of seeing business XXXX to adding in we new start of the growth Pace, perspective, that market. the in expansions run are pipeline

selling forward starting HealthCare growth success. HealthCare continued great fourth new about quarter starting a quarter with and We second Pace had CareVention our excited companies organization well. platform's have existing Pace in third the are and the quarter, in contract CareVention to also look as

have fact, our annualized an on launching approximately basis. existing since success selling customers, experienced fall, $XX have we as incremental we of a and the revenue concept In added result, last services in CareVention to million

different Medicare agreements our We Plan. in CareVention for of is fairly provide outside North in in both Pace also SOLIS signed currently do located some Advantage Health to Troy using also Carolina, SOLIS new the to and SinfoniaRx services plans. of Florida are MTM. new quarter

unique of CareVention that the This notable of this including to to is model. Pace, that, Health pharmacy partner Brian potential right I'd care opportunity. delivery particular We to over medication risk in call is outside spot, market the proof look community at mitigation. expansion in Troy our as view the and for With the platform's other unmet second-quarter services, sweet the for results. turn for like closer a is

Brian Adams

Thank Rasa, and how together. working by quarter businesses strong pleased Tabula all you. well a Orsula. am the was for This are second I

detail, Before greater a in I highlight I to performance. standout areas review few wanted financials of the

quarter, performed SinfoniaRx to of and to particularly quarter. our second year-over-year XX% last businesses growth continue quarter, of the growing Pace from mentioned, X% Orsula growth XX% second thrive year well Similarly, a revenue topline excluding in the acquisitions roughly ago. reporting As compared in

portion still traction a today, our small building solid while of a new interest. nice handful quarter, and of the overall DoseMe, in Finally of a showed contracts pipeline signing revenue

financial turning Now to results.

of XXXX, increase of For revenue compared million, ago. an quarter the of XX% year total $XX.X to second we a generated

or XX%. with which Excluding full-year the of line increased our XXX% $XX.X year, organically. growth contributions revenue reported is Product increased revenue year we from acquisitions, Service million of expectations. recent XX% XX% organic over our in million of $XX.X

depreciation in the reported XX.X% increase excluding quarter the in Gross the of in of service team SinfoniaRx quarter from and in driven year. to and represents The expense, utilization reviews an a fees clinical meaningful our contributions compared the drug second increased acquisitions, strong XX.X%, revenue amortization second of for year-over-year growth by was we performed increase, number our margin, last data. by

shift last revenue continued of a mix a from resulted up our increase greater comprises point basis XXX of XX% revenue The as revenue base. software our year. revenue particular, revenue percentage total compared in In makes now service to

year. streams margin, revenue in was order of quarter, compared We as depreciation was We XX and the diversifying a on second our gross XX%, we vendor XX% uplift of Service and amortization, the in margins gross to margin to prime in expect to excluding continue meet to margin, ago. focusing excluding last modest our of in over quarter plan the see amortization, the compared to year some XX%. gross long-term do target depreciation to XX% to remainder our second year. transition Product new XX%

of quarter quarter, from second operating last change service value gross expenses expenses from stock PrescribeWellness impact have in of utilization data. amortization, compared was by in in higher of total were to revenue contingent When in up as margin increase consideration, of the compensation would boosted total quarter. and the XX% XX% in XXXX fees the XX% a contribution acquisition-related a depreciation, drug in exclude and the represented The percentage XXXX Operating the fair year. on you of revenue

in initiatives, to increase TRHC our and Pharmacotherapy launch expectation a reflects of recent is Development integrate we our with and Research acquisition. investments Precision The with associated line expenses are Institute making the and X.X

expect materialize the to platforms on to to over the acquisition, sales begin We the build-out operating of our we three capitalize and leverage on continue our infrastructure. and years as to two execute from years our in force, resulting synergies integrate improvement next

of compared the Typically, In adjusted seasonality $X.X the was the quarter the last highest the in quarter, terms EBITDA, million million margins would margin second XX% have quarter Adjusted year second year. $XX.X a ago. in EBITDA quarter second expect generated compared of SinfoniaRx to business. of the because we of XX%, for XXXX to we to the of

$X.XX, are of diluted net based in year. quarter net the for Our million on $X.XX, net of the million last GAAP to period The diluted was count for versus Adjusted XXXX. per GAAP the share per diluted share net GAAP XXXX loss loss of of to in quarter for quarter $X.XX per second for second million, loss to diluted of the calculation share of XX second the diluted XXXX. $X.X the compared loss net $XX compared same of share was XXXX. second compared quarter per million for of XX.X $X.XX income the quarter quarter income second adjusted second net share

XXXX of XX.X are for quarter the per based on of share diluted The versus for diluted quarter the net calculation income second share second million count of XX.X million XXXX.

sheet, the of cash, on had for of up to an my outlook wrap expectations. quarter drawn. full-year as credit to XX, June we comments to nothing I balance million an To update million of will $XX $XX.X have our and Turning initial the end We XXXX, our of compared unrestricted $XX.X today, provide third available line at currently the million with XXXX.

be loss we the be in million million, anticipate For to in the million. to XXXX, of of third revenue $XX EBITDA quarter range X.X to to $XX range adjusted net $X.X be XX of of $XX in to the million, the to range

year, of business, a which and for performance our more clinical from it the reviews quarter. is qualified numbers get on to the the last decrease I our remind difficult course to you impact MTM sequential that the increasingly perform the direct will profitability, on during has contributing that

from up the $XXX of anticipate be we our we that to expect range approximately are million. Of of XXX product XXX to of as total million. range revenue, the our million, outlook For revenue $XXX updating in $XXX the to we full-year revenue follows; total XXXX, initial

to range million. will $XX $XX EBITDA be XX XX of our million in to stated of previously the compared Adjusted range to

we to the loss full-year expected business, attributable DoseMe of adjusted XXXX behind slightly the As Precision in XXXX and to past, to as to discussed due Research related margins expecting EBITDA Institute. as Pharmacotherapy in margins costs be we are well have the the launch Development

with I'm to loss net range to previous in $XX.X of to expect this million, to XX.X we very of addition, $XX.X million. compared XX million pleased In performance quarter. be our the Rasa's range Tabula million

that that integrated back belief like closing currently remarks. uniquely his platform our appreciate are to Cal over We and quarter the offer, markets indications customers turn call I are this are now confirms we serve. positive and prospective customers for in the that, able With our positioned early the we further would seeing to we to

Calvin Knowlton

Thank you, Brian.

I all and think Orsula, thus pleased incredibly and I are on we As where going. everything call, Brian Rasa have stressed are and we has accomplished in XXXX this Tabula far

As mentioned are without California. and River our clients. of results work, the every has a hard and ongoing we been case Group we Also vision that collaboration strategic not these by have into have organizational redesign delivered could the three the led six-month structured well team our members, I dedication should from quarter, as trust as months the from

teams in orderly manner. TRHC and This enabling a our acquisitions recent is to the leadership systematic congeal assimilate

that preventable growth ubiquitous on than that thousands XXX,XXX injure our remain restructuring It's world embarked the used -- deep the in the multi-drug to events of and have who only X maintain this annually US trajectory. platform is more. prospectively. hundreds science We MedWise adverse in and to platform kill especially the market, merely pharmacists million still pandemic poised in medication one platform TRCH in now this more ongoing based and residents ensure the our market addressing only We leader the

unintended simultaneous interactions. avoided, events adverse Preventable unrecognized drug including a which to fatal could opioid are amount due be substantial overdoses, of multi-drug

new now opioid that end, we're launching. we Towards a initiative have

quarter economic, us our humanistic attain So thank sophisticated enabled for to this and and listening members thanks outcomes. you team in of bellwether clinical who most have to sincere terms

call the please open questions. Operator, to

Operator

Thank you. with comes Blair. Ryan William first instructions] question Daniels from Our [Operator

Unidentified Analyst

question. Maybe color there wondering you in talked the Sinfonia can just bit looking business, drivers provide you Hi, the I'm the quarter, the more Brian, that strength the just if little on some of this any revenue in Thanks is strength quarter? for the a the Jerry Ryan. know of in about to the Haas there's to at taking kind I but us of for of start dialing

Brian Adams

that Yes, did will from perform from We we those extremely I The heard a each of and well interventions the the number mean, basis. clinical know when both business there's you Orsula quarter Sinfonia you on certainly to on couple as remind myself, of the At need transactional it based I during things. and year, perform. performed. that's a that beginning recognize are revenue we of mostly

So a we clinical see quarter. to performance expect and and of a more focused end second STARs on during those gets happen different the there were type that good continue, the We completed that typically number of then intervention is programs. toward of year the that's that

to some that seasonality business. there's So

In drug that addition, see utilization we received. fees did the we

little That is a bit lumpy.

So I to we're can that typically vary receive is what it exactly -- can a you for estimate bit. business basis pretty not that that much full tell a know will year, going the smooth. but quarter-to-quarter from We

saw So a an we bit quarter. the in increase second there of

Unidentified Analyst

margin when the for maybe just on but anything was look be one-time kind quarter? timing at there that of the there about or else strength some then would XX%, side, coming that's maybe considered And margin imagine due we Sinfonia from a I anything of the the in some adjusted at nature to of in strength EBITDA perspective, to add more

Brian Adams

will was thing that utilization data is than two a the a in mention only our also quarters. following I little I contribution, came for be the Sinfonia but bit would the have mentioning, piece second of that. that the Yes, expectations did So higher

quarter that the have So second well. impact on margins did an in as

Operator

you. Thank

next with Oppenheimer. comes Naidu Mohan from Our question

Mohan Naidu

we how are internal my will EMTM compared program -- taking to this public the made Thanks results and when your it Cal, do in for pilot, be results? know others questions. doing on

Calvin Knowlton

received X% the percentage August The embargo yet only strong we but the receive exceeded didn't X, the the savings. finalized. that We dollar amount that's was we lifted

they did group, greater CMS group we -- than of So analytics save report -- we did really X%. analytics had I the our to could I to use kind other on report on can't than the

Mohan Naidu

the And shared data patients. a score opportunities lower Okay. potential about with of you risk lot

stations these structuring how into you do be are go to you looking intervene year of structure at or into you or As thinking year to three, how are going you three?

Calvin Knowlton

patients a happens get what month every over data refresh is time. -- But we and data and D refreshing A, feed change on the B

the people last programs lot So, not same risk are folks XXXX stratify. we XXXX. XXX,XXX XXX,XXX we the a different. we ones of risk that the year in stratified same them were And The and had into come that the in the with

and from There we was I cohort much this, some could year to them different this going is that's group than get duplicates two year, than happening the monthly. what mostly this that's we last too, new pretty were overlap, we but know analytics XXXX feedback again because of years. have and running happen most did in And it a suspect, the

Mohan Naidu

the a quick pipeline. maybe And couple of on ones

pipeline talked strong about give pipeline visibility year? or you color on for well. You deals type in conversion on as today any us this of what are year before any and guys next the Can the and any

Calvin Knowlton

have please? line that on Kevin Mohan Boesen for would one the we two, Well, to you like Kevin, and take

Kevin Boesen

Sure, absolutely. the Thanks for question.

Managed -- markets in have active the of in been among talking management clients if they the talking message where and that sales cost events, Medicaid team and looked care, type can markets where is services pipeline, primarily about I the overall the medication the MedWise and very building we're reducing specifically, we're that implement. have drug the We in to of preventing pushing they total the flexibility terms commercial in has of adverse more

should some XXXX. year those this we that resonating and about force with with the leverages markets close Tabula very deals in ground we force the confident that's have of talking specifically Rasa the Symphony, combined the in the can revenue takes with been a has the PrescribeWellness been well air center network model associated call model and of that a been approach we're So we've and of that those really that that of science

Mohan Naidu

be that sizes you or quick the one Maybe lot Thanks great. taking number for great. That's color any provide quantify of would or for Kevin. deal my can one a questions. that to Any deals way

Kevin Boesen

at them talking think to, plans point smaller there plans talking Yes, in significant there, of a the well. of that this is are as some size and to we're then number I that we're

So I optimistic very we're the little we're a because it's getting great some you that, a give exact message it's maybe that think little to message is the market the response from on but soon projections we're that. a saying that -- to right

So hopefully, very more to come soon.

Mohan Naidu

Cal. Congratulations score. Thanks, on a great

Calvin Knowlton

Thanks.

Operator

Thank you.

next Our Baird. with Matthew from comes question Gillmor

Matthew Gillmor

market? Thanks for on that the model Maybe, following similar pipeline question. should the detail. up about a from for the think just enhanced Kevin. pricing in interventions back of on the example? currently think we about scaled to Should product will some commercial doing Should probably the Thanks that commentary or as won't being population sort similar we of you for MTM as around that many that's being be because be

Calvin Knowlton

then population, X first, seeing a Kevin than we're significantly typically number what of we're in, a lower or seeing, in is take people plan to happy that is think fill commercial maybe on in Matt, and I to Medicare are can somewhere the high I'm X% but that between risk so.

And would fill that we more? a still you targeting little the that to so somewhere in fees be Kevin, population. bit would closer $X, maybe but want look probably a entire expect across on commercial to commercial the apply arrangement to that

Kevin Boesen

do the do process great population. sales and explanation a stratification what is of That's entire sure. can risk in client's on a Yes, we a it,

are that a risk. have of high sense we percentage numbers So of good the patients of patients,

price And the that model on based so we percent.

it's looking what we're seeing if percentages the that many Managed on utilizes, to you're a the in Medicare similar groups Medicare. that have patients patients the medications. medication that younger we're side to Managed medications. But of not patients market, Medicaid, may utilize So at in as seeing There of is of number similar Medicaid

commercial it's said, like X% side, the Brian mark. probably that around On it's

Matthew Gillmor

you appreciate was are where analysis population, drug intervention And make there be of still what that all did use. Cal? could we if sure on lot weren't there were the I saying a demo provided making, to then, analysis. just there would did on associated that down the hospitalizations do you're sounds you you folks the that the on It of like understanding a are I intervening. Was point because the Cal you be details was EMTM with sort point generated, the value obviously on

Calvin Knowlton

at we Yes, people never didn't -- the We looked it XX XX months. was. above this XX, XX, looked we that at cohort. Frankly, or XX, only

with risk intervene should we why XX what look hospitalization and see with on we that, we lower -- and people. could if with or cohort, still surprised still admitted for it we were surprising XXX%, with said risk able we though lower risk were hospitalizations, -- was yes, still score the at weren't we their that the lower they the the means intervene I once XX score the us of So to had be the be association a but which the they're XX% these even the XX% on XXth, the that don't surprised of that XX% could really heck, -- even and significant impact our even was XX correlation year to during

limiting Dialing we go we're on talking not along back and while intervening as from So back magic to XX, a just above. and wasn't and it more, it number. dialing it about it XX

Matthew Gillmor

last I then one, one on think Okay. for probably And Brian guidance.

overall the raised revenue within you So that range we that. saw

You dialed the dialed a bit, and back revenue. up you little the product service

of revenue higher? went why lower I explanation you the in services product hoping some could mix and provide was terms and went just

Brian Adams

Yes I take will that.

and stage little more, piece product But this which in having crisp say, should being the expectation. service just what could yield growth this very our of the visibility, So on expecting expecting. the rate pretty about side we've with that I a at very for be bit we that into we're think which would remainder with line revenue, good at we're the XX% got original I was really the of a point more year full year,

just ability really a thing a timing at to little the it's think precise. at I more this point So be bit

Operator

you. Thank

comes Our with Wieland next question Piper Sean Jaffray. from

Sean Wieland

thanks. Hi,

some was in it have line, of us Can SinfoniaRx. do improvement it like grow services might really strongly for business sequentially, on the with sold? without sounds that gross adding something to goods much was way able so impressive some of cost that and describe how So margin you to the

Brian Adams

for happy to that that one and related STAR mitigation dealing order a certain you need one too. is be increase ratings. to things to the STAR want Kevin, in cut the take even be to of year completed that with might we're I'll reviews this little in an Sean, points Sure. measures jump bit the to in comprehensive meet

to back more us needed So achieve our CMRs year. the prior came significantly ratings, clients but generally to current than looking to STAR in maintain their

So we become, much at the of say, and I efficient anticipated staffed this year the those model in of reviews. beginning up delivery more the would have

team have the has we and ratio. a done that Kevin. maximizing that great the we've uptick in seen really today, a So significant gap job

Sean Wieland

Okay, so – would add you

Kevin Boesen

Brian is is just is there the it add expectations a rates Yes, to for I we that serve that, what would of patients. performance from higher health to a echo plans said, that engagement lot from

in We also large a XXXX. on-boarded client

that medications. patients opportunity add second similar groups to client we So models, through have gain of with to develop our year center multiple chronic relationships it's conditions work We that efficiency. multiple that an with our as the and call

that X.X little piece a a the has Rasa as well. mentioned lot company bit third on call, from so integrate standpoint been Sinfonia And Tabula things efficiency would that, of able we've the the investment then I is benefited side standpoint an and the that the in during technology to of from a say we integration, there

Sean Wieland

level will year? with profile what us of you be the Is half can the the sustainable? in Brian, help margin the kind of business services of margin this of back out

Brian Adams

you down with -- difficult a progressively think we reviews I that number we address. year as to be things one Sean. the it commentary the drop in that It's at bit. get my I you're have was mentioning of was these To going honest people of of So perform beginning the to see more can a set

those to easier of the it's the at contact engage year. So members and beginning

the level effort. difficult progressively of in proportional. gets It more not It's

as to we're relates second that. in expect do I the So, that year of margins half the decline going it see to

for highest gross level would So I be second quarter to year. margin the expect the

Sean Wieland

evidence see or anecdotal cost change or recommend ADE able in where the data of the any have you and the you times do pilot, treatment, medical were EMTM the a risk lower corresponding what to did? on intervene, And

Calvin Knowlton

do. we Yes,

because -- it very information you shows, from points. it's department. analytics have interesting even how And post-intervention too We on down on the went sophisticated five we that only really actually it's But information average have that risk know. with amazing our one-touch one-touch, pre, have we was

each point savings then And medical. $XXX about on averaged in

which harvested it's have data. now group into that well gets that helpful? Is with do So we pretty, -- this this

Operator

you. Thank

Sparacino next from Analysis. with Our question comes First Frank

Frank Sparacino

Orsula, comment, back, be it to a the come of revenue get Hey, I wanted incremental to would sense trying number. get as think base XX that a of magnitude the relates on the you made side. of million there a what of I annual to to I'm sense CareVention

Brian Adams

current of revenues. I'm that So, happy -- half Frank, the this is Brian. of is our roughly for seeing side representing right jump in But to we're of half now, pay there. about kind what it's business

so So if for at you're million about or looking the year. XXX

back were you at XXX year, to million up to If probably closer last that it's to point. that

Orsula Knowlton

cross-selling. At with one, or they more, two, more. service one existing three we're based least at another those And were adding had our or companies one least on Right. and

Frank Sparacino

I just by to that new if being and is more minus. years, within prime you XX% then the maybe driven And growth, plus of Great. you XXXX Relative base think prior clients? the at sort talked existing look versus or about Pace,

Orsula Knowlton

a we quarter of set of the expansion there first that XX of I XXXX. client driven is base, have locations, -- are number a -- Well, existing have locations are and XXXX, number over we the both we pipeline, think lot a between now -- start-ups, being in new for

on portfolio Pace growing, Pace focus added So We've we're it's X.X, as support we driver. process. with National them that clients one said, the new the and to part clients definitely them our in is and Association are when the I growing best

Frank Sparacino

one And last just Great. maybe Brian. one,

from perspective, an expectation of back maybe sequentially, to what's but of initiatives would increase, I R&D I in you guess On the your number just to R&D the side all continue R&D guys start on that going half things, the spend? on the know, year expect I have given

Brian Adams

is back little that of to do spend the up in So too. going tick being I R&D tell also of a will that's Frank, bit the I bit half anticipate year. good you a the capitalized

see as So you'll that in well. our results

a that's bit. So quite up

Operator

you. Thank

Demko Our with Citi. next from Stephanie comes question

Stephanie Demko

you the Thank taking Hey and questions guys. my congrats quarter. on for

So I announcements be saw time an off-of-your might the in to over month. past the it a thought few dosing I update for an ask hospital-based business.

Orsula Knowlton

in Well, that They US January previous a only Australia. storm. by company DoseMe certainly has Xst, the taken located are were

quarter had that's quite you agreement an in sell working. have for, to Zients of to They third launched opportunity. know, hospitals, the they So

the conference we've a XXX communications Really and and at about digital questions a Robert their mostly recently their Wood the experience people over had their instance, to registered for tried speak are with with into then offer They about had XX of expand communications, we that. client from end Johnson but real-time -- there. call over

So they quite really are well. doing

Calvin Knowlton

se experience that market And we're it's we've our drugs market we've with actually didn't a per definitely working the project that that done, frankly, this months made in with six we still DoseMe, system. the looked Once we -- that will should. from need have last over I it's we've at really a our we to this needs We've decision beginning, do think matrix. the to and think the in be we that recently but upgrading year. DoseMe a just matrix that's get learned that we on parental had

Trojan but the horse located, matrix -- and they into first. need where our abroad, be they're our upgrade And here to so continue we that will systems continue hospital will to

have just injectables. parental the we the also stuff, not only the So solids -- not and parental, only oral but

kind where that's are. we of So

that think finished. this do the we're wouldn't until matrix much to year going we I So get

the opportunity hospital And with then got market. we've tremendous a

Stephanie Demko

then potential not of expansion, And And next for is way something to you said my the few months. but of look Brian. kind the next for one

the imply is an to the trying there exclude pharmacy data it's the then out else sales indication expansion. that Just guidance quarter to at Is management there? that of your to looking in call last cost if return a margin XQ does third or anything guidance, year, you taper off

Brian Adams

that there's this just in you a bit recur anticipate There No, anything little you on that's of there. going kind going We QX. referenced. that year to see last bump although year, of don't one-time an was really increase not as

next few a quarters, more significant we're think I bit nothing that smoothed but to little So happening be out, to, going find other over hopefully the than --.

Stephanie Demko

Okay, so expansion? nothing a more wrong bit modeling little start

Brian Adams

right. That's

Stephanie Demko

your a more your with wrong – in thought expansion Nothing modeling of bit

Brian Adams

that's Yes, correct.

Stephanie Demko

thank Great you.

Operator

our Thank come from question will with Grossman Stifel. you. David And final today

David Grossman

maybe outperformance the the just for sense hoping get a quarter. in better was to I

in cautious, little high by guidance. and the million end the be into went guidance more you'd you recall, I that As annual a at about $X your of build

I it So make versus of the sure sorry unit year if the perhaps or volumes was how came made you've want much covered this, you timing of and when but on higher just to the growth with Sinfonia understand revenue utilization I during pricing data? drug that comment

Brian Adams

mean, Brian. a you, most it's private have be do in is of more honest David, it, I to benefit quarter. with second We thing. of some the

EBITDA expected just both and I and think bit. of year job we did what we've setting revenue full earlier a a nice year, that the up for ticked little for in we expectations

quarter that's of acquisition, the where we we relates to seasonality, or some and guided what's driving be earlier. it uptick recent has There to some of the ahead expect second as been really where it more

David Grossman

I increase the get, annual an is utilization is that see. you fee, something data typically Is it or that drug that –

Brian Adams

a on basis. but it's it more a less basis, but predict not, is We can so it less. No, so quarterly full-year on

down can, a So something bit quarter. be would and little each it up that

David Grossman

that a size number? is really And know how Just, don't that? meaningful I to Okay.

Brian Adams

the for full year, $XX only So it's about million.

David Grossman

thanks on X% the it. that you've results. is and Got just you're got is what to see. what you've sure that so for means, benchmark X% the that is beyond the overall? got understand But data, above that 'XX still or And update on the XXXX then make we EMTM Cal, your the exactly beating that X% in I -- savings

Calvin Knowlton

No, got 'XX. it's in above and beyond what we

David Grossman

do it. are have if how your just Got you And will, you on performing? perspective, peers any anecdotal

Calvin Knowlton

shortly. go being a that from released have just should percent we couple least embargoed at a Well, from was. Everything of was days,

working a them because couple We are things just with meeting forthcoming on of having them. a with are other we

some So insight. get I'm sure we'll

We have -- you point, I haven't any anything, this guys anything? haven't gotten at yet. gotten But feedback

let have, anything. but seen we'll So as haven't soon you know, as we I David.

David Grossman

see. XX so? on operating consultant. assume one, to talked once I about the Is or would or you restructuring yield that leverage in with meaningful months just something we that's finished, just the generate organizational expect next And that the sometime that I the last some

Calvin Knowlton

of It's focus if I about that's more operating leverage. around generate wouldn't specific Kind segments. go-to-market to market consolidated strategy. of say going meaningful

Brian Adams

span efficiencies we operating little of not people stuff sorts generate as over tenuous group process that very, has standpoint, for goes job next had a -- control of very had pleased done and anyone, just this economic XX bit executive It's couple assimilation. the -- to months a frankly. for maybe some had from really slowly of to an it, from when seven control The through. CEOs, going span really, reposition we is six the us to think of it I clumsy much we're and when assimilations helpful a the or gets and our to and gets just do streamline of but system these all process five XX due you a with this I'm implementing above been from it It's standpoint, things. spectacular team people

-- it's really So to just going us help it's immensely.

David Grossman

All for questions. Well much right thanks great. very the

Brian Adams

Thank you.

Operator

with you. a And have Thank from you. question Thank do Gillmor we Baird. Matthew follow-up

Matthew Gillmor

you deployed Hey would standpoint, to you could that's thanks. question as with selling thought left. a the from one capabilities confirm if do sort still that those describe small? PrescribeWellness. had the meaningful and I mentioned wanted if I or just pharmacy how was sales right just and into of getting describe Orsula revenue I channel pretty MedWise

Orsula Knowlton

Sure.

are the process. integration We through working

identifying half opportunities, and process we dozen pharmacist a market MedWise PrescribeWellness opportunities. continuous using the platform While working target piloting are that through clients

So goal of January go-to-market date a really of PrescribeWellness Xst to refining the other the clients. with product

now through So nothing that point, process. we're the expectations we meaningful this have but at setting

Matthew Gillmor

Thank it. Got you.

Orsula Knowlton

Thank you, Matt.

Operator

And from we do with Benchmark have Bill Sutherland Company. The question a

Bill Sutherland

one. just I come to wanted Yes, with in last one

you Can opioid you're market. or a now provide framework offering to the together for some to I mentioned think, putting that? be Cal going producing you

Calvin Knowlton

And to its gets everyone the rendering you gene with couple it all look to XXX or you we've problem, when opioid can ineffective people affinity is interfered weeks, has that this opioid have to at way And the the with the particular has gene said under science, we are to another the at that pro-drugs taking, as sun and we activates other opioid defendants, them look and into there's that looked that that, litigation to a thereby at stronger ourselves, to are gene, of Well consolidated defendants, in particularly been And opioids -- Ohio. last there and XXX the imagine. about that they active analgesic. a moiety. particular most the that have they people do drugs learned

you goes the And crazy things and gene then discontinues keep unbeknownst what person eventually, or activating gets if drugs, drug opioid now overdose have many, unintentional, it terrible get to dose they death. times activating increasing many and the that a so that they then fromoxycodone, including the tremendous happens oxymorphone is interfering the now and released the all leads high

paying do as guess, a that. as will lot besides the they that money, they're I I of far in to people know only can type system have some the these defendants doing. path need of believe And to will place a of future to that we're probably need help And so probably we what have,

see of we we So companies those CEOs are with how things and will all the go. contacting

to to a tragedy happened, just able it's a most report multi-drug in analysis We it's will preventable and but was be it's later you. place, what's not. But -- of simultaneous it's if

explore. to trying we're what that's So

on we'll know have you doing. let but next we'll to So by what probably that's we're have more more call, that,

Bill Sutherland

color. the for Thanks

Calvin Knowlton

Thanks.

Operator

participating management to gentlemen, to you I question-and-answer over session. back remarks. any closing turn the today's now like and for in call would thank Ladies for

Calvin Knowlton

we're you think very everyone joining Thank good. for I us. No, much

Operator

may concludes have and conference. program, This gentlemen, and in the all disconnect for Ladies you wonderful you day. thank a participating today’s

Tabula Rasa HealthCare (TRHC) 11 Aug 192019 Q2 Earnings call transcript