Tabula Rasa HealthCare (TRHC) 6 May 222022 Q1 Earnings call transcript

Company Profile

Participants

Kevin Dill	Corporate Counsel
Calvin Knowlton	Founder, Chairman and Chief Executive Officer
Orsula Knowlton	Founder, President and Chief Marketing Officer
Brian Adams	President
Tom Cancro	Chief Financial Officer
Sean Dodge	RBC Capital Markets
Glen Santangelo	Jefferies
Stephanie Davis	SVB Securities
Jessica Tassan	Piper Sandler
David Grossman	Stifel

Call transcript

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Operator

Thank you for standing by. And welcome to the Tabula Rasa HealthCare First Quarter 2022 Earnings Conference Call. [Operator Instructions] I would now like to introduce your host for today’s program Mr. Kevin Dill, Corporate Counsel. Please proceed.

Kevin Dill

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

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

Calvin Knowlton

Good you, our for the Since ongoing us. diligently year, thank been of and the transformation. Thank joining start we on you have morning, Kevin. working

delivered in continuing of major executing We We’re business XXXX. growth HealthCare XX% unit. from later including operations XXXX, revenue highlighted initiatives. of part We during three the quarter XX% from the first our CareVention

unlocking is to as assets, non-core major noted earnings from the SinfoníaRx PrescribeWellness, divest intend value and release, our of we initiatives DoseMe. One in

back forming advance using Taking on making that and which A second has goal. Given to vision stated regimens X. press publicly initiative the will is TRHC, drug comment advanced focused on is And stated progress we release of the support not MedWise, any are decision tool. a further active MedWise remain market we reflect our nature medication been penetration. optimizing strategic than our the toward step what these of we to discussions, May growth partnerships major in

the this be Patient extend to as and organizations population cost of lives seniors led Safety to market primary improve of at-risk we by the April. provider last PACE and lower vulnerable Journal a care, deliver continues Our in healthcare published longevity of

per During first Journal which $X,XXX medications per PACE demonstrated use to and medication the level experienced paper risk reached doses capitalize participant and versus of Healthcare, XX favorable this peer-reviewed not were in million expenditures we solutions was XX the people, and XXXX. XXXX. is than our year, research of ages involve the rises. organizations condition quarter figure Americans. were year is we the address and In of time, these expected using comprehensive the the billion Patient on to X% XXX trends unintended services. chronic of pharmacy published of portfolio more organizations are using with five versus that treatment growing strategy over to acute milestone problem growth number a medical is going unique that million in Brian and population plans one prescription of is a less offer. XX% of addressing daily XXXX, medication-related and reach The a as these patients we more a our this record by result, That’s every in XX XXXX, mitigation drug in as harm PACE large services of

Orsula call talk today to that, market our want turn largest Orsula? to over Before to about I the PACE.

Orsula Knowlton

Good morning.

as risk and administration I consulting; that am and to value-based maturity includes: Rasa to offering startup new those one, organizations are sales best to our led our designed and to a mitigation such from marked quarters Tabula personalized PACE and flagship medication of CareKinesis, our quarter with services, PACE care For is our comprehensive Capstone inside adjustment sizeable several HealthCare, risk risk a this electronic pharmacy Medicare third We four, Adjustment and Services, first outside services; two, management; Risk that later of major and starting network coding share by pleased of for the our adopt California pharmacy including along adjustment records. both number year. contracts and personalized three, five, and will our of had of party important win PBM health of solutions; PACE. coding help services, Organization XXXX a one

and highlighted mitigation net a month during ago XXXX. on months our sequential four enrollment a XX% CareKinesis versus the medication risk in XXXX release our for April, year and services improvement showing press first As X.X% our pharmacy of each increased basis, steady identification

due grow and published percent participants, strong existing growing most to than factors, presence service fastest of combination continue and We to recently as expand areas. growth including positively states the and largest and of the of California. in of future current Medicaid-only CMS and faster a higher figures centers open PACE The from new states continues a clients

Welby Health, to their to and all [ph] Brandman eligible those for and expanding working of state as in Senior new expand codes such are Centers clients, in zip locations. new state. code of to service Clients areas North needs service existing the example, are Carolina InfoRLife the an zip the PACE the As of meet

in both Our Florida. and number PACE backlog centers implementation includes California strong of a opening

for Illinois with to XXXX, adopt and are DC Looking begin coming selecting to further Washington organizations recently legislation states serving passing ahead, PACE XXXX. residents new in two online

a has to XXXX. about by As PACE XXX,XXX the reminder, from today known of action Association participants for a as goal XX,XXX X.X National PACE call growth is

over Brian Now, Adams. I’ll turn it to

Brian Adams

Orsula. Thanks,

It’s to Expand MedWise. a provider our revenue organization, with grows suite have grow clients PACE our clients, addition noting revenue our value-based and $XX CareVention strategy within In models senior our include at our worth adjacent services. to forward as at-risk to Tabula few focused grow in grow aggregate health due sell plans. of a deeper clients Rasa’s excess types of XXXX, markets care of clients penetration to these base as HealthCare, generated that our the different two-fold. and of list we of cross Inside footprint PACE, growing within to In these short-term and rates. of involves million continuing focus going outside continue in that often is existing we full aggressive revenue

regimen. In sign sales at-risk a logos an and new groups approach. and Rasa, chronic specifically targeted given same market are prevalence with for the aim polypharmacy PACE, The a of Tabula to a population, share side. a capitated Shifting complicated for conditions of attractive payment addition, provider characteristics managing to marketing risk high high model the we high they or medication many plan of cost and

SNP for Special with one XX% number SNP ago every Needs a Advantage working April, and Medicare are care, lives. account six eligible plans for managed grew versus of Plans, X.X startup to a D-SNP of We covering and beneficiaries Advantage in dual XXXX, year million enrollees long Medicare term plans. as

As a of nationwide reminder, XX% PACE dual eligible. participants are

these Risk total We that portfolio our are relevant address to Services have cost MedWise plans, Capstone including of our of solutions revenue to reduce Adjustment and to care. the optimization broad a platform

quarter, partnerships technology part we embarked includes or taking our on about to platform. technology-enabled As pursuing last starting MedWise of commercialize focused embed diabetes strategy a MedWise and a a as approach, with new to broader we talked disease service science. That

turn I MedWise updating our And with our making over look throughout the growth. forward the for We’re it will you to with to strategy progress. company to Tom. future now progress year position I

Tom Cancro

excited be comments very of I focus to three joined end TRHC first to the and towards I quarter, the here. morning. areas. want on Good I’m my

income to of product million First which discontinued this XX% guidance versus a strong as from shown revenue are $XX.X position $XX.X expenses continuing all year growth those quarter revenue Revenue represents and of of operations. and our for Note ago. by DoseMe, netted operations. cash continuing operations Sinfonía, driven PrescribeWellness, results in excludes million which growth that are against now $XX XX% from for operations from increased of million,

XX%. dollars EMTM in we program, press margin of decreased gross revenue X.X%, ago, of headwinds XXXX, revenue $X.X $X.X outlined X.X% to experienced margin, starting excluding down a is a resulted in concluded EBITDA a from but in decline gross million that service increased in service of $XX.X Our as million. release year million revenue, $XX.X with million Adjusted the which

Our basis by that gross the XXXX. guidance assumes the of remainder shipping of elevated product year, quarter XXX for impacted margin experience the persists during first the points a costs negatively

reflects in versus the our CareKinesis increase shift and Our R&D expense, to within greater R&D, were combined million segment period which $XX.X MedWise percent X% a ago CareVention and a G&A a automation increased quarter in driving versus largest focus marketing, the in from and services. with sales HealthCare year investment and our efficiency pharmacy segment The HealthCare on ago. our was year a

$XX attributable to during the We $XX.X and cash. PrescribeWellness, is of to managing and first is cash charge a is The is item, company’s balance Moving asset impairment million. intangible working $X.X decision ended of cash. improvement on with non-cash and recorded to quarter Currently focus the quarter discipline million million due greater sell cost to DoseMe. This capital. an Sinfonía our increased over the

expect provide divestitures positive $X.X After the on to call, remaining flow noted second focus second and last above. the improvement. We referred flow to and divestitures to the significant number after free enhanced reflects development These As to plan profitability. plan with year capitalized trend during as free significant we quarter half will over particularly during we strategy company XXXX, to show our And the as our allow three divestiture of the timing XXXX first on million the capital this verse previously, enhancing certain quarter, beyond. of cash working XXXX and cash the significantly software $X.X burden noted the seasonality, assets we us quarter on in ago executing and of our well and expect million of generate costs expect cash in items. flexibility downward of quarters, non-core financial

are Now continuing providing for guidance, to which turning operations. we only

The the $XX compared We’re HealthCare revenue of to million, headwind represents of X% XX%. represents of $XX introducing year X%, quarter. revenue CareVention EMTM million ago including growth follows. Revenue X% a second to guidance absence quarter growth of to X% to XXXX which as

above XXXX. ended that program noted in we As

to for year CareVention which of that, the will HealthCare growth represents XX%, I of Q&A. For turn the operator it to including of $XXX full XX%. growth XXXX, expect With revenue million XX% million, we X% back to $XXX to now

Operator

the Our from Dodge comes of first Markets. RBC line Instructions] Sean Capital question [Operator from

question, Your please.

Sean Dodge

you, said I you with you Yep. Tom, morning. changed the guidance, Thanks. CareVention Starting there. things think, Good

what of X% You’re now that percent were more versus monthly on little us trajectory? the growth you detail slower a you bit just sequential behind a give growth targeting for. all Can seven-tenths think at census you incentives assuming

Tom Cancro

the mean, the way best I right to that what That’s over we’re with what was, forward. I seeing the that it And we’ve project last now. just was seen thought business quarter. in thought that’s consistent we going

Sean Dodge

effective an think maybe little a that of from of kind different? that Is something bit think or structurally a do COVID? Omicron you hangover Is you there’s

Calvin Knowlton

this months the PACE reported PACE death rate Calvin, month of the the last highest center had in is participants. XX Yes, national in that in February any

down immensely May. So of for spike that’s It have in to March, January the was now But February. of end as alluded told April, in real come part so in that’s Omicron through today you the what and a it. already and we

Sean Dodge

you the bit go CareVention. Are up to of there So, in rationalizing being, working you’re know of And mentioned any course said, to CareVention? to we providing guidance forward? expect I to time there? directionally can expenses going MedWise there but go forward little you continuing there reallocation of is should being you expenses over know you CareVention the are costs with help Are Okay. EBITDA R&D within to you or think not us a just you business, year. on how about from this I rationalize a the for invest give the

Calvin Knowlton

Yes.

said So where nearly questions margins to down. there’s consistent going factors this there. points there are there quarter. were several quarter, two impacted be four which margins that I expect were with forward this in Not necessarily was,

that, the a of And have shipping adjuster you One was And in some that was it largest there’s recapture renew, lot as and industries ones, but about of experienced start the in run, CPI much short you can build a about a fuel a do you contracts that. of X.X not can can that. lot surcharges. probably companies, to of and

the the but the remainder So for the don’t de-risk short the out year. with the that earnings. the year, persists year. rest think is, rest to us it We’ve modeled to for in something I beyond that’ll for, run think I don’t of of persist it of that persists be

ago what Some business, mix was below a did that more the surviving, business. of I of lot more, happens every in remaining it shift was speaking R&D getting the moment to was of the and EBITDA, you the But a lot EBITDA, and to A margin decline on down a of gross this was if is R&D we to shift will. margin.

Sean Dodge

had. Okay, great. I all That’s Thanks.

Operator

Thank you.

of next Jefferies. question Santangelo line from Glen Our from comes the

please. question Your

Glen Santangelo

just CareVention product, about selling Thanks of look unpack these business traction wanted up you’re services, high XX% sort services piece in the that could business? at are of which XX% of assuming, is Yes. only and growth level, at maybe sort the from you. talk business seeing Good PACE, morning. and follow of about coming assets. in continuing the your a I maybe, looks on services that and most from the for XX% Cal, what I a revenues and outlook about of the you’re it If you products revenue to on your ops successful

Calvin Knowlton

looking that now including number for got good offering of we’ve some year next we’ve participant. for putting out example, the have other into Well, the next every is member, months. the because pharmacogenomics for for the we’re PACE that piece couple in we’re things groups business services And signed up that them services every additional of a had

because continue program whole They’ve PBM CareVention just long right in our that’s to is, to up model. And a traction that we’ve much with we starting can So, of will as services continue as picked on PACE. lot new so too. now, the done traction in about every add grow it

Brian Adams

between quarters, in one earnings the at that. the too. backlog And look had I there if Brian. over this few we’ve does past of cross-selling to evident and services Glen, the portion you is the our businesses. would And around that last been, a We add CareVention just significant success This quoted has that call, at represent

grow we side. So, the that business parallel with the do element see services the in of should product

Tom Cancro

really see Tom, decline chunk which in apart. to big there’s program it’s on whatever, this there project, several here see of that, of in income a or a [ph], in services, you’ve concluded PBM statement, got Glen, the You so break is in that to XXXX. XXX,XXX And that that hard that right? but dollars million A from was

quarter, all all service that of absent offerings, by burdened in you comparisons, or EMTM our out, the strip TPA, that if So is aren’t you’ll in to substantially see when that of risk end program. the revenue. up nearly quarter-over-quarter start first And PBM, the

Glen Santangelo

we’re in a it’s obviously potentially enhance you sales. at doing What of with Thanks. that question all, I Maybe reduce if That’ll growth a about a high you, I versus what in any overall commentary could can rate do of level it’ll this market enterprise? for sort just the you debt. you talk feel valuations a type assets know Tom, follow don’t that maybe environment up do of macro that but the environment? come comment to that want today the asset liquidity, see in it, don’t around different there’s liquidity can for starting company Cal, to these I assuming general. down. I if then, mean, confident that there’s market of successful I overall in the And guess the sale assets, with these right? operationally you could question know more give

Calvin Knowlton

started went different we’ve through fairly number general public strong. down first culture five we in the of yes. process, had starting the financially and strong the easy four the headwinds with we or got stringent even absolutely a We’ve different, really had the that one whatever question Well, and I answer a companies process is the are criteria. that mean, an in, is it’s

in they’re came a or half to see so down to expect so and and dozen And we still less finalized. companies, something the funnel play. than And

few is Our weeks. hope the in next

Glen Santangelo

that Wow. right. most sooner That’s quarter see thinking, Is some the announcements. think than All I hope? will are hopefully this people so Right.

Calvin Knowlton

That’s the hope.

Glen Santangelo

maybe with then other liquidity? going and that forward operations question the And about more

Brian Adams

because instead net have and clarity your of balance treasuries and do care, on about the on your effectively question a about Yes. Well, You even get I are the paper a might for liquidity for that sheet touch to right? learn until cash that XXXX, portion it’s cost portion have not mature on very negative interest event. We I’ll interest debt liquidity intend touch positive itself, today the on least that reduces The big deliver of on doesn’t expense. And your where gosh, sets kind you at having the, savings. it of cheap of on I’ll convert costs that as and but then liquidity that. speaks that you, cost much sits you second.

cash is cushion. just that a So

us this a business And dispose mid have addressable core start That’s maybe a market. On model. the digits, management demographics clear. growing an significantly. team and to not starting right? as of board stream is tighter first that side, with focused, you the to think for let’s I that teens proposing see cost business as And a and refocus. businesses got now I a the we’re You’ve that opportunity pretty principles, in There’s growing enormous to healthcare revenue around more volatility at are much double in aging an align

effective There would So value a companies the that of Cal a and to model. cost getting I from the but that shareholder all a like ready indirect that be There’s costs, mean, underpaid. we businesses anything that business enables savings until And and insurance, we’re fees, get legal with things areas year, start hopefully meaningful real you proceed on, seeking ago at are with if to of close real you’re a just of that’s cost probably are like Probably at an ticket the we a was to these for won’t a fees, moment when, lot arm right? should of lot to scale can market them ought agreement employees leverage big a that. the have lot of on X,XXX the way. right. we’re businesses to get other to dispositions the accounting is the costs of completion, not a that that. close. the organization. smaller I’m that in a right management. push alluded unleashed give And direct of these of, But in the should sight XXX flowing estate, disposing transactions project cash line point associated services, from Because

Glen Santangelo

right. Appreciate it. the Thanks details. all All for

Operator

Thank you.

from Blair. Daniels next Our Ryan from comes line William the question

please. question Your

Unidentified Analyst

Yes, morning. in for my been Jackson have couple follow ups. The asked, is good have already a This Ryan. just of majority but questions quick I

First, I and guess, do you divestitures. about deliver that mentioned I how are the not to think proceeds just you plan thinking potential you post

guess, on, Any seeing and, I color similar we’re any structure appreciated? it on to additional thoughts what would So, capital do targeted a is you now? have longer term this be

Calvin Knowlton

Yes.

expect cash, start all ways convert, at be open my very think flow to If to opportunistically right, Once deliver So, refund this floating traditional specific. thinking in does I negative off, I to, something until, well, of a to that’s frictionless or start become sense structure? of don’t a that’s what think in doesn’t think steward debt cash liquidity. rate I of liquidity balance. doing business point wouldn’t you about, convert. balance is buys XXXX. to mature it to more should the for where goals mission positive, cash that think and think investors market flowing, about, the okay. to all to make put you to I here, do capital and be And think floating tweak a I you right repurchases? cash our going you and comfort At are could our a point I about is will about that because take on this safety do start generator. think that and that think take I us sort which capital I you down sheet which way, see your good doesn’t guys have then you to structure I its the tend easy rates I revolver that the It’s carry And

Unidentified Analyst

And with guess follow on any inorganic you build as around Thanks. do end an CareVention thoughts you the market, organic understood. interest, portfolio I on overall any out Great, and or refocus either, Thanks. quick a specifically, I guess interest the have areas basis? to are just up the there might of and look PACE

Calvin Knowlton

I’ll we’ve comfortable and feel to are this Knowlton, of seniors, free think portfolio models. market. point the we I very and relevant all within that Yes, Like that solutions are they’re And have. my the They are talked extremely risk markets. with we we’re PACE take at-risk providers in relevant nice But the uptake that are Orsula some I of jump script, the part believe this of solutions focused that these to about getting at really then at in. under feel adjacent on got we capitated

special got these plans a have already needs We’ve got You’ve of in services. and would today. number our others been and clients that that interested are

to So, go think we point need I we’ve don’t new services develop at acquire this got any. and demonstration. out or a

Orsula Knowlton

would I agree. Yes,

think their clients to on always around our providing evolve I and changing as continue innovating our the services to. focus we’re, needs is them what we’ve provided current

Tom Cancro

the the Association to we three TAM TAM at, thing, services that numbers you about you XXX,XXX I National Yes. billion. PACE to do next it just where you $X have is in the could one if exceeds think is I do that us, just people to take just years, look The to if is XXXX. the go if say trying for

now. it’s It’s right So a nicely. growing large pool

Unidentified Analyst

guys. Thanks

Operator

Thank you.

SVB question line Stephanie Davis Securities. next from comes Our the from of

question please. Your

Stephanie Davis

for thank taking question. guys, you my Hi

far story penetration. more where around us terms your a refresh The so for are of centric talk bit since Following of strategy in you kind about PACE pitch. broader like moves go-to-market and to up IPO Could any on question little last on learning the PACE I’d to the more we a strategy. and the opportunity

Calvin Knowlton

how since little the Orsula, PACE? terms to of go-to-market do want you evolution in we about bit the IPO a in the talk

Orsula Knowlton

focus talked the being mean, a I we our other that call, able needs from we be on actually have to and on clients’ management account them providing to our them. build we could and that understand about this our earnings to relationships of services be have supporting last trust able really pretty, notion absolutely. Yes, perspective,

also value the the to of fastest small, is organization TPA for profit de one non-for-profit, part partnering existing organizations, segments partner which And multiple So the be very mean, out new, we on the with provide a the growing novo then lines. PACE they’re I for can to and of go that able that and both with, market are service or very services when difficult. as and startup’s get PBM startups

we bring of really well. value the segment So, as tremendous market to that

Brian Adams

there to I saying would healthcare managing just that a areas a risk emerging PACE. is, are got we’re think some ton And organizations. of look right? the there like that, In I in these landscape we’ve experience, right with now add what feel and lot

very these solutions are think some number of And bring used risk opportunity a we there’s companies different of a are already that great healthcare know a in way. manage we to so relevant by these to that being

suited do already these got going And that of look And foothold adjacencies in. at is part very so that’s think well that. some we a of the we’re forward to we’ve strategy to

Orsula Knowlton

to to Yes. covered be XXXX lab testing really get that we and what the wasn’t and had going in to instance, for And people’s for as bids I strategy we think test. found that a covered pharmacogenomic that try it be was

that to is support of care by a purchase that’s great all demonstration to focused win personalizing to that. which that our improve that and decided doing to However, just continue outcomes. they’ll And they’re how clients

Calvin Knowlton

Stephanie, I would So – is this Cal.

the for outside we’ve PACE, our second, of just two you talking bullets calls. if earning about been for think I go one of a last

third now. we’re we’re Now partnerships of is doing today aligning on working number one strategic there is, And we’re a what to them the be alignment. going and

having We’re vanguard that us actually without about we groups adjacencies these talking to the aligning help into that was be us going, can on their can to from perspective. get be other a coattails going with some Brian to of sales use

right that the think going we helpful. model we So, be on non-PACE be that’s attack at we’re a to diligently that’s to areas different working And exploring. Hope actually. going are to now,

Stephanie Davis

need mean these strategy getting of that partnership that we’ll for in adjacencies? investment Does some lower a order lift

Tom Cancro

Yes.

Stephanie Davis

asked one And what I we in but the out confidence are hitting this every end high end as the level range? of new Helpful. bigger? wins look gives I What’s just one what’s at, me, then And low updated the last guidance of factor. quarter, the the ranges, what you factored factor? in know

Calvin Knowlton

I what? I’m What sorry, question. Stephanie. didn’t level hear of your

Stephanie Davis

New wins.

Calvin Knowlton

of when New seeing. the that’s And being with the that if know the what it’s second the we’ve to is contracts we’ve wins are significant help think currently maybe we I year, we’re new we far de-risk the don’t assumed here. of it’s earnings wins. the wins half not a are second maybe you year. closer don’t I the and that And signed start I in have, bit, large. know think may which out disclosed the said past, of have, there new half into me and little still some, but guy that thing course, they we’ve put are there, implemented? new The I in the

Stephanie Davis

right. All Thank you guys.

Calvin Knowlton

you. Thank

Operator

Thank you.

line Jessica Tassan question of next Sandler. from comes from Our Piper the

Your question please.

Jessica Tassan

the thank Hi, you taking for questions.

products what’s market maybe interested so be model? you Like but the for know And product you well? end the mentioned And was risk are be. focus I guys as might just diseased provider sales then on what and groups, could you MedWise bundling that bearing Thanks. elaborate the revenue approach to think what’s what to little I bit hoping might a

Calvin Knowlton

Sure.

So I’ll clinical start on the, solutions. what we’re pointing kind MedWise is of

cost this X there’s Medicare chronic disease. diabetes to it be And or and, around being lot focused of being one a The paid population too. for, first a commercial area Type whether attention population is high

opioids. focus that what disease of looking launch position typically include just or communicated arthritis QX. different we of this should so was of either we couple in lives. number states on model a These during number And And that areas are basis – covering a, expanding we’re But a examples. a to that be a PMPM around at or other to quarter a we’re either at is rheumatoid last of this point

on still we’re So, target with that.

And excited We’ve Street go had services believe a the groups about into we’ve just so that a Oak got of kind number real groups opportunity of at-risk different our market. opportunity deeper had question. that your to few others we’ve overlapping and Jessica’s, partnered And the We’ve to provider there. selling with in early with in we’re your so success part be there’s we’ll of recently provider fact, from bringing we a that pretty number relationships. a second of namely those dually. interest

those around Adjustment focused to solution Risk and manage been is Services help have of we nice of our that MedWise balance think a care. our cost total Some Capstone more to

So to And profitability, what think these really offerings there help to are of we interest improve got got them compelling a is date. organizations that manage lot to we’ve seen helping risk. but we’ve ultimately contracts and we’ve already evidence

we’re put to that more relevant about a excited today. adjacency So, the it opportunity very to focus is as PACE around

Brian Adams

other and and and responsible of metabolizing are a inflammatory that couple we XAX/X you drugs. RA between point the they lot as but others XCXX, that And up he did, and diseases follow on put Type a and me genes our when and real chronic common appropriately some the denominator low know, in about is [ph] inflammatory the regulate spear, medication, for diseases activating talk diseases mentioned low the as drugs Brian safety. on are is X diabetes a Let which down interest, chronic medication of

because that not So it’s help the opioids we with that’s the And in use thing where our lot doing most all that drugs the before which medication taking a – It’s these require CYPXDX indicated are they’re can as people pro-drugs the opioids gene get diseases, of them of you now. same and activated PXDX. other focus is. we the are optimize and as

that we’re in So now that’s have opioids, involved inflammatory to in why them an that market the chronic we’re low the as plus chronic doing bring and no bunch these, because is those that’s in involved else to starting. others. of one But diseases attribute where a are we’re we in

Jessica Tassan

Thank helpful. That’s really you.

if just, product and factored of EMTM, you this of DoseMe the just us kind XXXX model. seasonality can EBITDA So guidance into Thanks. PrescribeWellness, then what product, maybe is the is and the help revenue MedWise if and revised then understand I this Sinfonía, for clinical in new guess, solutions

Tom Cancro

MedWise that address – there either contracts no revenue contracts sign I’ll or no to but – implementation, go is in from there’s guidance, the ties the to and the a side No, first any me and speculative let it in I from there So referred ago. not get question are call this side. model PACE estimated moment question. the what Stephanie’s

to it upside that, there’s for second us question if And please. should your happen. repeat So

Jessica Tassan

Yes.

in seasonality the the revenue and of on of model how and just the So we quarterly cadence should at EBITDA? about think Sinfonía DoseMe PrescribeWellness, EMTM,

Calvin Knowlton

a probably a thinking in public quarterly back just to ago, primarily increase and recall, we Yes, few years mean, were terms a PACE revenues. we went predictable, business, we had of when you I steady very

that addition are As the benefit to PACE new new single that coming contracts lives online. operators are month. and signed from adding in We every

expect step top do it’s So, quarterly forward, that a see pretty much from the line growth throughout a perspective. we where sequential a going year stair we

Jessica Tassan

so you much. Thank I appreciate it. it. Got

Orsula Knowlton

Thank you.

Operator

Thank line you. comes next from Stifel. question the [Operator from David Instructions] Grossman Our of

Your question please.

David Grossman

we I go you. could situation Thank the morning. just Good if a liquidity back bit. wonder little Great. to

free borrowed it revolver. million looks flow under and another burned like you quarter, the million $XX about So, you during $XX in cash the

had first last filing. available it I And so my available, under is question the million the on because is, $XX at, how guess about like revolver looks much you

I what’s you available filing? if the any could clarify, or So today misunderstood that just maybe revolver, the of million maybe just $XX under

Tom Cancro

Yes.

address So let that. me

capital moment. lot a in bit of noted, been little revolver, additional on not should any and not the say weeks a quarter. borrowing the we $XX I whole means of cash today, on first working through management, five borrowings. spending. to started which have There focus I it the cash is or my over availability, burned when As we’ve the expect That’s done got But need combination capacity million don’t I a remarks, a I any reigning at in through of

burn to cash in through $XX that going not quickly. million You’re

this you from And distort picture. sometimes, goes, can quarter-to-quarter, numbers real know how the be the can

make $XX quarter or payment first, April the of on the $XX XX the swing or you last million So, you million March a collection X, and get versus week a versus easily. can you

control customer of It’s indicative end. much on pays quarter really that and you greater happens prior run working a a of if your most the rate I quarter the of large can’t cash payment, Monday, so a of like burn Friday last And timing or burn. delta you the cross at was cash to just in quarters versus not over said, capital, that a

there proposed buckets liquidity So, these that could revolver I I get were they okay. think is, any choose believe additional to that before need to of believe, the usually companies of the bridge they proposed avail capital sales of the best close, that three liquidity can large to to ourselves are If financing we line under an event. situation have our event, like a also sight

compliance a with our our we’re covenants. very with all have relationship We lenders, senior strong in

looking guy So, I’m continue to quarter, performance overly forward of about here, had more that. concerned our at done end arrived we’ve as as not spend I first the quarter-to-date. to cash the seek since new And I’m into I’ve and the the digging

David Grossman

So Tom, detail more about, maybe that components go could into here. a little the you just

the assets – way for about Way So think the of break of that in ops? available much continuing there a burn versus it way? quarter, of the first to out you how that sale it? the think Can to were is

Tom Cancro

goes with earlier businesses, back that et should don’t office tell spend away. the breakout associated the I have for can to software of way of a not and say the a say but costs the software direct stuff. lot it, mentioned rematch, has I R&D, large on I I related A the and been development software the misspoke. fingertips be a ones but the I people it, always of shouldn’t R&D about other you just all I will part cetera. of there’s yes, Sinfonía, my think opportunities at who PW the XXX develop. Well,

have opportunities At enhanced to closed. be large cash you that lot event. for there’s divestiture, watch got that to post flow judiciously cash a close, that liquidity of So and a until our focus has

liquidity don’t You have issues.

divestiture, to there saving But of bridge pull that. just the I not number flowing things importantly, which but sort just in it us what to. mentioned, of I we that business and are the start mentioned, all, preserves more the allows to can a of any levers opportunities we and all sort of cash to manner you As the need cost that proceeds are want to it

David Grossman

Right.

any capital the slightly divestiture working of mean, can positive, just differently. kind maybe big relatively soon contributions? cash So ops, ask go post without continuing I

Tom Cancro

Yes.

David Grossman

the or that And answered think just, you and I from dynamic. I to thought was businesses, it being your comment just sale, about residual So, but the maybe that have you that I’m maybe the Okay. can the clarify you shifted the just with MedWise may attributable PACE that businesses assets said about this, capitalized maybe R&D, large, service comment? reconcile for but software to fairly just comment not understanding that R&D the

Tom Cancro

of a to businesses a some chunk Yes, cash I meant There to say, businesses shortly. else not to misspoke. the is with large that is shift be going someone be been has as in much shift, continuing the to associated software. would I running obviously a When of I said large the to, the of, large, that or chunk R&D going you’re disposed too R&D cap

David Grossman

it. Got

much. for very Thanks luck. it That’s Okay. me. Good

Tom Cancro

David. you, Thank

Operator

conclude Thank gentlemen, participation. and for Thank your ladies session you. as This well as the question-and-answer you, does program. the today’s

You may now day. disconnect. Good

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