Earnings call transcript Q1 2023

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Operator

Good day, and thank you for standing by. Welcome to the First Quarter 2023 Tabula Rasa HealthCare Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. advised conference be being Please Instructions] that is today's recorded. [Operator

the now to like would conference to Sparacino. I Frank hand over today, your speaker

Frank Sparacino

and is of Rasa This Sparacino, Corporate Relations HealthCare. morning. Tabula Development Good for Frank Investor SVP

XXXX. of we Reform for certain we that Safe purposes the future of make make expectations Act and provisions about statements plans, call the start, prospects I the this constitute As Litigation to company's clear of Private want Securities during forward-looking Harbor statements

may from considered available forward-looking conjunction of Reports Financial contained materially results annual statements, Form filed which and Investors with our the statements report website in tabularasahealthcare.com. these Actual indicated by recent XX-K release on differ those cautionary our the earnings should in in section is March under heading most on which in XX, be our the XXXX,

forward-looking estimates elect the if to of may our update views future, to forward-looking on as you to statements as specifically any these we do disclaim we in representing today. While at obligation our change. not should any such subsequent some rely date point even Therefore, so statements

results we indicated otherwise, to call discuss this operations. from unless continuing our referring are When we results on

the contained indicated in from our results operations For on to statements financial XX, notes additional the on information our XXXX XX-K in release May XXXX. please financial refer issued discontinued earnings to statements the and the for

website. heading the measures to of on Newsroom of earnings is GAAP through reconciliation financial this comparable XXXX our Relations to our referring Also available most of and website. measures be of financial not link in the Press is during non-GAAP in Releases the the accordance recording measure quarter release section Investor this we of a call, GAAP. first in call accessible those page certain A prepared with the also A will press available directly our under

HealthCare. Rasa President Brian now Tabula CEO I and over of call turn to the Adams, will

Brian Adams

Thanks, Good joining morning, us. Frank. all you for and thank

have from we of numbers great we've and compared a of EBITDA you generated we adjusted the represent had growth have revenue company. These our Top-line quarter public XXX% of XXXX. growth one As XX% levels a highest XXXX. first of organic saw as release to start to growth

completed With of us, quarter executing improved the DoseMe first coming divestitures objectives the years. our and and we and SinfoniaRx continuing profitable XXXX drive longer-term during focused behind to of cash strategic on on growth over flow the are

areas: an minutes continue talk I three on want specific organization; going PACE update. sales to market; and two commercial we're our update a how take One about that do to three few the with to to a then sales

compared market in PACE costs is utilization I'll those PACE, rates, the and of today. in healthcare most care and long-term start successful has our with primary care settings. example ER demonstrated arguably hospitalization material reductions individuals value-based to

Forum Senator the Recently, PACE Wyden, care Spring quoted our Association the best Policy Ron PACE attended Committee I National of of possible. dollar-for-dollar saying, is late Chairman March, Senate In with was team. Finance some the

been around has out roughly organizations that approximately PACE was for timeframe model XXX One that opened. the statistic years. stood that XX me PACE to Over have

over foundation Now the for representing accelerated estimate months, will organizations that open next another XX the PACE XX growth. we

to currently there this X%, eligible state and are seniors. is these than than million expansion that X more PACE support penetration less individuals Given needed is participate offering vulnerable in desperately

areas. in key Services of Health Becerra year, to this older adults and of Secretary, a residing the committee rural expansion March advisory PACE for Xavier in endorses Also Human

an pilot Medicare-only few than supporting focused comprised by part Advisory simultaneously for hospitals the X% policy expedited applications a of facilities. participants critical areas include to to beneficiaries have were expansion leverage with support to new flexibility to and As Rural PACE access administrative approval recommendations paid nationwide and eight less PACE Health on process multiple existing PACE today and of the on Human Committee size of service A National report Services, allow delivered. these which partnerships

areas multiple million a dual had chronic health higher is of areas comparison or In strategic areas. live CMS X.X with equity focus XX% adults on prevalence conditions. urban eligible rural key in to a underserved to population rural Advancing individuals objective.

with centers America of working pay are rural We number a serving today.

profoundly the Tabula country. continued for this positive of In is there the but lives in areas organic not of individual make especially drive summary, impact this we to believe service, only Rasa to revenue opportunity on a growth, significant eligible at a rural

organization. commercial sales Now, onto two, number priority our

last to ultimately scalable profitable implemented our our outside best-in-class commercial we've support relationships our map, of efforts, a those in voice talked client efforts sales product, call, retention. customer road about the capture our feedback To growth inside and for a program and of to build client XXXX enhance support to During I organization and PACE.

allowed which media. gather the members strategy planning number sessions alignment of meeting quarter, our during to areas initiatives our renewed with held These Tabula core all The account Also have care a along XXXX markets in participate training on our sales value-based focus establishing of to a covering notable such approach. to our between as first social and parties go-to-market and product key kickoff was wins. contributed of our number and touch Rasa that team meeting, sales we

a cross-selling our X-figure part in our client example adopted a highlight pharmacy displace and had sales This Virginia. their the with to us legacy couple services existing of contract We to a expansion like PACE PBM and continued update. efforts. great with client I'd of provider win an allowing recent as is a

PACE drive ago per continue a has solutions the in significant our our resulted adoption of greater and PACE focus average on to see in XX% increasing revenue opportunities efforts to versus these the $XXX. We participant to year

areas quarter focused group adjustment at-risk growth to inside with strongest of Another PACE, for rural provider one outside Medicare-focused target a outside represents This of was our senior and secured services, supports contract providers. America from our recent strategy the our PACE. win a serving of risk which further

end a see previously continue we basis sequential longtime addition, Health, backlog $X increased highlighted Welby during influence In a and future on a million has of the awareness TRHC partner the to the in versus which as our quarter, presence of for-profit growing XXXX. to We've of on positive such $XX operators more the than million growth PACE. growth

our clients pharmacy I'm They've the understand built in our solutions. proud This ensuring operators are teams and trend management our majority backlog of of our account represented to doing. work backlog. relationships with as sales the is at existing backlog prospects of and are great accounts value the for-profit services evident the our the for quarter services of of pharmacy end overall XX% and

now will call Tom? to Tom performance. I over the turn to financial review our

Tom Cancro

areas. Thank morning, Brian, and my good you, I comments on will focus everyone. three

and operational our key XXXX updated results, quarter guidance. First metrics,

revenue growth technology-enabled XX% versus million of quarter XX%. ago solutions of growth First the quarter XX% year and medication revenue $XX.X comprised increased of of revenue

primarily attributable continued metrics growth press PACE participant was as growth for revenue release. in revenue our Medication the to disclosed year-over-year earnings operational and higher participants in strong seen PACE

Technology-enabled was led by our and growth solutions PBM services. risk adjustment

driven important price staffing the outperformance in than pharmacy inherent Our an revenue was and the increase due in during expected primarily we're growth two will automation, drug factors: to by and be in inflation experiencing. which customer capacity higher meeting first demand quarter

XX a adjusted XX.X% XX% year quarter, XX.X% gross and ago. points XX.X% basis gross gross margin solutions versus increased XX.X% margin was of XX.X% a increased Medication as Adjusted ago from ago. year revenue for of margin of percentage a the technology-enabled up versus year first a

year million a Our a loss compared loss million, ago. the to for GAAP of net net quarter $XX.X $X.X of

ago. EBITDA Adjusted operations from the of from $X.X a increased million quarter million continuing year for $X.X

growth with helped has revenue disciplined management strong improve profitability. combined cost Our

Our points a ago the on the first basis a fourth adjusted XX EBITDA basis of was for a X.X%, XXX which sequential basis margin nearly improvement point quarter and XXXX. quarter versus year represented versus

medication would respect our highlight. and are solutions. With per technology-enabled per census, month three participant to average I participant, medication numbers per metrics, PACE month operational revenue per for there to like revenue for PACE average PACE key

during driven ago two-thirds versus census participant quarter of a same which, the center growth. XX% medication increased first PACE was by XXXX, year about of Our

month participant, the increased quarter for XX% revenue $X,XXX per average to XXXX. PACE of Our medication first per during

ago solutions month participant, Our PACE first X%, $XX the during and technology-enabled PACE census revenue a technology-enabled XXXX. to per year XX% per our of solutions for increased quarter increased average

aggregate average PACE per to XX% per quarter revenue participant in $XXX month increased during Our XXXX. the of first

driver that was the of services, technology-enabled cross-selling solutions growth biggest Brian our indicated, clients. pharmacy to As to

for we to PACE that As participants last we revenue month, if a expect noted our services, PACE a would of per reminder, average the all $X,XXX. approximately quarter use client

than As XXXX, above of of we XX% figure. of participants first the have or quarter at this more our

increasing of year adjusted our the XXXX, focus objectives, quarter we Turning guidance EBITDA and and our XXXX We second due feel strategic guidance. consistent the comfortable are four provided execution to our and previously to guidance, financial and last the revenue full renewed we are guidance increasing demonstrated over quarters. introducing

from versus revenue at operations the to $X.X year quarter to a of represents million, $XX midpoint $XX the represents Second continuing XX% $X.X a range. million million of of at EBITDA ago, the versus million year growth of Adjusted growth of XX% midpoint. ago

they solution. Second second temporarily XXXX, quarter in-house in revenue of a us pharmacy while half guidance reflects the client, transition a the off-boarding who of to joined long-planned

of second by is highlighted last XXXX. increases versus the annual I impacted our EBITDA during salary as adjusted quarter negatively first call, And earnings quarter the

X.X% XX% $XXX at million continuing X.X%, EBITDA to XXX% For midpoint. the Adjusted compares the $XX the margin to EBITDA of full of which $XXX year million, at million with represents an from $XX XXXX, growth of and of represents midpoint growth XXXX. of revenue million adjusted for operations

revenue the first number participants the of a of earnings of call, XXXX. I half to last the on-boarding due to we the year growth noted expect than the higher be our new As of comparisons in during significant in half second second half

now remarks. will for turn call some the Brian concluding to back I

Brian Adams

for to Thanks Rasa by team that commitment our be successful. you those the Tom are Tabula XXXX enabling XXX-plus excited I'm members strong and start your for to dedication. Thank our from updates.

strong growth we drive and profitability to of remainder building As foundation long-term we future to look on focused XXXX, to a are value. create ahead the

year Operator? will first. was at pharmacy one It's for PACE to the of XX% represent With last PACE for the turn queue caller, that's first it time. our over operator Q&A. double this did and backlog. to operators that, we XX% than actually I comment I clarify profit, as up more call said, And what want the I

we So with up call? Operator? the open don't why that,

Operator

Thank first with Company. from you. William Blair comes Instructions] question Jared Haase & Our [Operator

You may proceed.

Jared Haase

Jared of to Brian, enhance bit better retention the This I you the incorporate and questions. morning. is mentioned on Good sales commercial customer Thanks voice of for taking as for a way Daniels. little overall program to And Hi. sort customer feedback Ryan you organization. think a the talked our client Yes. about relationships.

could you successes Just curious of organization? about learnings you've commercial kind particular maybe continued the any improvement? through points some that there's some sales program Maybe opportunities data share had for if or with

Brian Adams

Jared, far great We one a next for for had We've positive customers. so you has number one Coast, another that question far. recently feedback have so we very and launched planned that. with our The on thank month West of the program. been only event

real a and feedback there's listen think map and our customer of that part road take our I include ability appreciation going in forward. as for to

our common most the we're opportunity where our those so and with to giving throughout to share also What themes It's most the an going resources are us impactful trying we be making around our we that provide investments. our that things them focused to value. really are identify for clients customers,

dialogue good it's so, a And really so far. a been

Jared Haase

just client? that temporary that's to there's sort a sort time pharmacy client you And how then, And that a client. temporary Great. sequential sort relationship relative then, size And there's in on full-service guidance. any that will think QX of of bring hear. back off-boarding a Q-over-Q nature? think a the have you do of them of That's as mentioned, customer? growth a could little great opportunities you to I just basis, unique coming sort the bit from temporary I'm a impact to over way I Tom, eventually of follow-up of curious is ask you that or kind of impact

Brian Adams

They great I'll the year in system in don't and which I to health our It's the The over take within pretty us turn a else last part, I'll of that's here, need, pretty onboard that fantastic Yes, is Brian. has effort it days, and XX lines then we scalability question. We anywhere unique again the This able really team a think pharmacy. part today. platform. pretty immediate unique multiple to this first by in-house of a an see out our customer the a is client market it's do have this shows in a of is that, with PACE reached client business. larger were Tom. scenario to

pharmacy had pharmacy years successfully or clients clients have system our cases, to has over a been that to part an have services. the of those In onboard pharmacy where many we in-house an in-house able

I we look hope we this at And So, us. a the think term at business for some point. opportunity longer to as real retain

But is is book this broader is the their the at than of right of business larger much approach look program which which as now pace. whole desire a really again taking today just they

So, market. I anything see this of at don't as the indicative all in

that remains in-house backlog pharmacy. could arguably Our an programs healthy extremely even have with

Tom Cancro

Yes. to off probably quarter it, in $X.X roll second sizing at headwind. quickly your And they to depending million about question million how $X.X on you're looking

to flattish So, first at of explains midpoint quarter. is revenue that kind why the

Jared Haase

in the Thanks. color all back Appreciate queue. Understood. guys hop I'll and the

Brian Adams

person we're of one while the to the round out did I the queue to want waiting to next comment And -- voice customer. up the one for just of related just

of one a there's pharmacy right? for we're EMR think to agnostic that hearing desire things I for API, our an real the and have is

provide perspective. EMR we work out through there and a So, management with be to that our able from want medication solutions to any

an there's happen. that customers that's we the where area see will to real from and make desire investment continue so And an to a

Operator

Thank you.

Jones Our Craig next comes Stifel. with question from

proceed. may You

Craig Jones

you. Thank

So, guess the a to question. I as quick follow-up last just

completely in So, the further point? $X.X will million that a a if $X.X is rolled to in off quarter it's it as million it at headwind have third headwind XQ,

Brian Adams

in quarter. the headwind It third slightly less a is

which at the will depend it headwind much in the on bit impact but it quarter of be quarter. it little comes a into it a not second could it in that off July the all it how case of If second wouldn't Some all. would magnitude is lead

Craig Jones

it. Got

to these margin, then in be it all it's just and that that the you clean opportunity And of of that line go now potentially that now services used gross range sort revenue be up? well? XX% there line at of an that prior Okay. divested high looks it acquisitions used like to looking you made Is so that now get higher mid-XXs. as to it sort how sort to And the could you

Brian Adams

Craig, lot I'll at focus the our drive Tom about trying we making driving contain there of on investments to our more but cost closely. talk in refocusing number let specifics, structure is to on I We're an resources think time a that really how efficiencies the opportunity higher. same

So, desire more I absolutely would there's business say broadly increase. the see from an a that opportunity to and

Tom Cancro

in what's down consultants external to Yes, of specifics of bit terms multiple to some platforms. margin others and integrate weighing a costs we've that incurred the is

role. six CEO So, we last over the since about how months talk assumed his Brian

and We there. focused we've on success our are operating on some in expenses had operations efficiencies reducing

spend But of to multiple product acquired integrated bit of platforms of in hadn't the of the that the our that little create to also necessary focusing it background needs optimizing was perhaps satisfaction our they clients. meet been we're on our some our And platform we can offerings customers. a so integrate

can if higher to everybody efficient. it's get lot a margins. you get That more lets platform, one So, back us those on

And retain some these margins. of higher those businesses do

of get them are them Some to working there.

Craig Jones

should solid Got sequentially Thank from pretty a you. normal expect it. it the looks seasonality like the was then pricing? we Is to Okay. quarter like digits. fourth mid-single one that And growth January PMPM at looks so just

Tom Cancro

reason last That to happen bump January, of Pricing didn't driver. get year. it is first why quarter later a increase it such did the But part first not the a tends always which biggest Yes. big is quarter, in this in of year. in quarter, you little first year came last in the the

low bump see mid-single digits but won't you each sequential quarter see will that you quarter-over-quarter So contracts probably to as evolve.

Craig Jones

Got it.

like Okay. the year? should we of about we XX% that looks calculate looks you how out declined there sequentially. like non-PACE balance then think it if then for anything the the And it that? drove about that And revenue, that that Is call there

Tom Cancro

– going there's anything think there. don't going don't there's PACE think the the But significant just I anything maybe to on non-PACE. I of ratio It's there. significant on the from

Craig Jones

Got it. for Thanks. me. all Okay. That’s

Operator

you. Thank

question with Securities. from Stephanie SVB next Davis Our comes

proceed. You may

Stephanie Davis

my the here. continued Hi, folks. taking momentum Thanks question for congrats on and

house have bunch of behind so CEO you've divested you? assets. been of seat, you What are a hired you've you Brian, had Now the changes about of cleanup yourself and have now strategy hires, officially go-forward biggest think bunch a should the kind your from a you that is perspective,

Brian Adams

around relevant PACE not around right? quarters, about There's the be to huge that past over we've be a of talked our couple our for shift thanks making strengthening offerings demographics, commercial to investments to communicating orientation focusing and refocusing question. to We've going high and have markets we deliver Stephanie, the in that going are the value are the what similar been serving solutions some clients. that adjacent scalable to and ensure

and to committed in profitability also closely. We're investing improving ultimately and our more cost structure managing efficiencies

priorities So some of the those for us. bigger are

being to coming launching the from perspective. more able for for longer-term I'm over looking a quarters provide go-to-market some to well. and forward the as year the right strategic planning now We're specificity

So focused of areas priorities. more on to I team very quarter's into able is of we'll share the was think that bit just But be coming the in earnings, mentioning. those I terms management some next a

Stephanie Davis

little the majority bit let maybe you of of Well, in are me ask way time? a your how that a different spending

Brian Adams

of time. split kind the there's at So a

a company. So employee at also of understand of new mission to continue listening a good customers and build they're the there's the is to customers, listening right? and time a out where bit refocus with listening, we it's new been base as One those to today and vision for around to

we why as business And we're simplified to in care individualized recapped, ultimately that to but improve to want provide of They're our new, here a focus not terms those the health right we is on. necessarily serve. of the what they're and focus

that our that. fit so squarely within all And we can solutions sure to want make of

sure the done so as we're corporate lot I was sure priorities we the customers, that of there's value provide the focus associated of their And goals describing, well. making as a mission. with that's goals so we significant listening that to our And that business, that the can team lot work there, so individual being also of the can so and with are aligned a strategic aligning understands listening that make

Stephanie David

right. All me, stuff talked control. about in One your quick this last one for we've

out your it's this PACE it control stuff that acceleration there? growth, about think been looks else you Let's talk of market? should anything sustainable And is? on, like How and sequentially the quarter-to-date. pretty touch census completely, Can on has just with what's going it accelerating of well you doing

Brian Adams

We're rate within our today. excited census, customer within base the especially Yeah. growth about pretty PACE the

ones prepared their mentioning was operators PACE XX was my a remarks, I As that that months. the ago. was And just out the at to are little set doors XX in next there again, the that Policy over Spring Conference I while NPA stood open

the to a understanding make which roughly model think that's the is need meaningful represent, really across awareness U.S. that of can in serve investment the those better. that a XX indicative we this I and specifically that vulnerable lives seniors, So eligibles space, the million difference dual for

seeing our they grow and that, customers think to support that really scale to even itself support And that going so positive can things so for is that we Tabula those better. some continue patients I and as Rasa, investment yield we're

Stephanie David

it. Got

Thanks queue. a in back hop I'll well. guys. Sound

Brian Adams

Stephanie. Thanks, right. All

Operator

you. Thank

question Tassan with Our comes from Piper Sandler. next Jessica

You may proceed.

Jessica Tassan

Hi. the congrats, mix and half back so on Thanks solutions? some color product results. question the on between launches, was the the maybe you offer for could hoping just I tech-enabled so medication and much

Brian Adams

ahead, dive Tom. Tom let, is to in that. going on Go This I'm Brian.

Tom Cancro

half On mean growth the year, the rates? the the you of mix product second for relative

Jessica Tassan

helpful. would that you. Thank yeah Yeah, be

Tom Cancro

Yeah.

pretty of last held I kind grew quarter, significantly number that quarter was weak bit. down this think last over in-part a year going that things quarter medication of a because There year a on were the we same there of first quarter.

recent I with you'll Going our something averages. think traditional forward, much in more see line

medication low-XXs. if revenue XX%, we for the bit of year growth above think, grow So you'll a the that little maybe see midpoint I forecast at

XX% see you'll to mid-teens, of total mid-teens. around revenue on the some medication the growth. mid-teens, total, of average kind them grow of than the technology-enabled And the little higher is solutions average low but XX% But out a will because

Jessica Tassan

I'm I versus or cost launches? doesn't of just there the Got think just it. about it, bunch of kind terminating It counterbalance kind a wondering, how but these associated look of should of then, Thanks. mature And contracts margin is any dilution a new guess we ramping? like with contract

Tom Cancro

I the first your of part didn't Stephanie. question, hear

Brian Adams

It's Jessica.

Tom Cancro

Jessica. Yeah,

Jessica Tassan

Yeah.

associated how from appear is the in or mature the year? margin or new of the PACE back older ones? just new -- your that the kind ramp any of cost an doesn't we just of there of think but with customer the dilution guidance, way launches contract So versus It half several about termination should

Tom Cancro

integration tech-enabled There's in But little very significant for not Yeah. typically any will installation. solutions to need a costs. Occasionally, be terribly someone terms if even of coming tend those costs. on migration or

Jessica Tassan

Okay. you. Great. Thank

Tom Cancro

you. Thank

Operator

Sutherland Thank with comes from Bill next you. question Company. [Operator Benchmark Our The Instructions]

You proceed. may

Bill Sutherland

quarter, Oh, good Brian, if and on initiatives adjacent updates curious, congrats there's, your on I'm the in a Thanks markets? any guys.

Brian Adams

rural did not that rural focused space on Sure. provider to the remarks for the question. as market. we and the It's on focus. might prepared primary my a Thanks the care delivering Medicare you primary primarily care mention It's given focused beneficiaries. in It's win have Bill expect win. early did in clinic-based a non-PACE I and an

we within I more to going think market. built you're that it's future think company. in continue And continues of PACE focus be success. to the are I some area for of that would sign an like a the as send leveraging message the existing solutions wins to we that the that I hear

to So these some adjacent investment of significant requiring not this markets. target is

Bill Sutherland

potential? the big a Got Oak there it. is And expansion Health relationship

Brian Adams

Street into PACE Yes. expand are strong. market. starting remain things They to With Oak very the

be well. we'll So that them hopeful as we're to able support that with

Bill Sutherland

are And redetermination they it? issue discussions PACE your Brian, did in up? the Great. how thinking the Last come Medicaid with one about organizations

Brian Adams

area really honest to be not focus been of Bill with you. an It has Yes.

Bill Sutherland

Okay.

Okay. me. Thanks for guys. it That's

Brian Adams

you. Thank All right.

Operator

you. Thank

Our from next with Stifel. Grossman question comes David

You may proceed.

David Grossman

you Thanks. bit apologize this could I hopped asked. a Good rates as a about morning. for minute if I But may on those the either a horizon result that talk regulatory And that of penetration maybe of little matter penetration that late, rates you been in see or so for on kind PACE program. going may the any things you're has or things that structural up? doing

Brian Adams

David, good is Brian. Hey, question. This

things the And PACE from expected relative did months. of PACE One programs I that that's the XXX was going the over that get growth XX operators close took of about the years XXX talk years. to to next couple next operational we're XX of over to about the probably

space, of think service exist the I today. eligible I So but think that highlight acutely, and within do indicative areas PACE that in which and the on is primarily one is focused program, market X% the fact supports than which of areas very interest that less the the penetrated we're you the that that's awareness dual

is in the the it right that pharmacy which about more so ago. by than providers, backlog our represented XX% double And fact now investment is for-profit there a space what PACE was is more year for-profit of

levels that and there's now support of of proposed of are and program. the at I both government going program continue the a are awareness to space, supportive enhanced right even positive to expansion state of that lot think a we're that in a investment federal the the of model. also level that There's sign pretty and it's the see lot regulations the

the in been Florida, expansion quite there's particular, out recently. bit of call Florida state I'd in a of

can do prepared to ability support resources they're that's I operators organization, to so more and wasting as scale we the macro we And view. of of our their so PACE precious What the an continue areas best can ultimately, think business. that other to our not we that ensure are can in

is we're And But make what seeing expansion that incumbent us sure high-value upon that solutions. the set can it's forward. delivering going think really support foundation I of a to we're that significant so,

David Grossman

like opening XX over XX centers in just next And Got new sounds your the it. said you months. it

market that XX involved all or So are that just of of statement? centers those is you a expansion, in

Brian Adams

That's those. more the market we tell are of you I that, majority involved but with today, would

David Grossman

quite if think that in Okay. And number, give how that all but the of sense and you evolved business think a wondering, bit of months. just at I curious, now I'm had should rollout do I'm the disclose past, could you we you about number last the that backlog us backlog, a whether a given XX now changed over the has that's a

So, just was -- $XX several million curious we I over that quarters? rollout it how an number, expect to of next that the should think

Brian Adams

Yes.

immediate most because that quoting is our would say, of pretty programs I the So, we're minimal impact are these in backlog start-ups.

in of to more anticipate in quickly our much would to see So, these happen going on-boarding as is at to for-profit of a we're anywhere given that I you forward. going today rapid backlog believe it's are so much at would customers taken is between months providers, tell XX quicker a some census for-profit penetration XX do the get that, past, to they ramp to more and is and ramp that I which capacity. actually I what onboard of that happening rate with these rate. today, happen the this anecdotal going the really that, In full is

David Grossman

Okay. model? prior And to prior little in getting how years, -- lift more have or a with it has we what a just pricing question dynamics drug will then expect it in Is your it's on just consistent it or may one are higher with contrast impact with are year bit of or that whatever pretty much prices years? other inflationary what last and growth and understanding, or have your revenue better this on you really is

Brian Adams

I'll let Tom take that one.

Tom Cancro

of cetera Drug contracts. et to right? break price impact Yes. into I the to price our probably it mid-single external There's inflation inflators mean, of are and that then re-contracting and built drug CTI PMPM. you digits inflation. it, But down there's is the revenue elements two have impact into our

thought. But was beat has of $X little two-thirds higher if contract was another due a to $X you guidance. it drug was happening we just take up stepped prior census million for where first it new million example, And over quarter About impact of of slightly of under pricing pricing, that pricing the than For bit contracts. over the growth. quicker

You don't spinning that you census was so customer see the had because also who off. obviously growth,

are higher expect there a bit. likely totals and a typically rest year. are in little quite the the to so the lot quarter actually persist marginally you beat the But more of drove than than December. in And the that first that's for And

through. see pass-through, inflation some you question X%, Most but David? it. on your margin impact a think of that's I that X%, there X% carrying drug of is Does price answer

David Grossman

yes. impact the Yes, you that what do on just think year? contract for the turnover, has And

Tom Cancro

I you, first that quarter, roughly as year. disclosed it was we've I tell the this over little I $X -- don't million. the mentioned in for or know a can

David Grossman

Okay. Great. you. Thank

Operator

you participating. Thank Thank concludes you. today's This conference call. for

You may now disconnect.

Tabula Rasa HealthCare (TRHC) 9 May 232023 Q1 Earnings call transcript