MPLN - Earnings call transcript Q2 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and thank you for attending today’s MultiPlan Corporation Second Quarter 2022 Earnings Conference Call. My name is Austin and I will be your moderator for today. [Operator Instructions] I would now like to hand the conference over to your speaker today, Shawna Gasik, AVP of Investor Relations. Thank you and please go ahead.

Shawna Gasik

Thank you, Austin. to quarter welcome earnings and morning MultiPlan’s XXXX second call. Good

and Chief today The and webcast at through www.multiplan.com. is our me section Executive Investor call be Relations the Dale being Officer. Joining website Financial White, Officer of accessed Chief Jim is can Head,

morning. deck quarter issued portion During website, of we slide along to XXXX on release available with the refer call, is this the second earnings our earlier press our supplemental the will that Investor Relations

we on December to may Any quarter due remarks forward-looking are included associated risk and available uncertainties year the and of Before documents like results on and in materially those statements our date responses for Reform based the business, and statements discussed our meaning may in with the our I’d you that Actual from SEC. XXXX Litigation filed our stated begin, remind fiscal the filed of risks management’s Securities of expectations, report represent to call. information this XX-Q forward-looking forecasts on include assumptions XX-K other factors or annual as the with XX, which XXXX, Form statements and or to and XXXX. differ forward-looking March Act XX, Form implied questions Private within the ended such of for report quarterly beliefs ended the by

the help views understanding call more a do our statements I A now Certain call are press Chief to such this is gain Dale? slides We some GAAP Dale our in without we future, to update the turn and we release consistent reconciliation available in in and will earnings most like extent our forward-looking financial with measures no note the of at portion company’s Officer, is Investor better complete these over that assume the non-GAAP management providing would White. measures. effort of we financial discuss how Relations financial to financial may measures With so. the to elect results measures our believe and to While results. that of investors these Executive please that, included non-GAAP point to measures available on in financial comparable unreasonable obligation website. the the

Dale White

and call. Thank earnings you, morning, the Shawna. XXXX Good to second everyone, MultiPlan’s quarter welcome

call our CFO, the Jim today On me is Head. with

No our second payer an expanded help Among in services, important completed The quarter was pipeline customers to of related Act their Surprises use increasing NSA of process milestones. or The in the these MultiPlan one we customers implementations. achieved our new and continue which with navigate of our we several complexity compliance these, NSA

adjusted guidance quarter. confidence our remain we goals. with in again, renewal platform our and our in an Once continue to have a MultiPlan milestones, strong business. partnership the Abacus achieve of we contract and completed revenues larger are new We underpinning of we our to further light reach. Insights, to growth, in strategic that a importantly, delivered we to with our long-term these the of with investments multiyear a markets in number ability offers long-term and investment a our announce one including of technology the squarely customer in pleased drive results and And data leading enhance that set our base management to customers, make platform new In in range opportunities and promising interoperability confident EBITDA for

billion. from year care X% the growing by stakeholders million, X% in $XXX.X prior were quarter, revenues increase an systems driven health $X.X savings identified quarter Second for to

the the in impact quarter of prior grew quarter. from the X.X% year Excluding revenues COVID,

revenues declined sequentially. quarter X.X% Second

strong what provide second the been our testing tell management our preferences of labor the how million, preferences health QX we might these and the of economy plan U.S. continue market more will could this driven as the XXXX year Since aforementioned and design employers savings, was the But Adjusted strongly it use expressed on potential the In consistent for remains February. discussed will slip NSA the operations our conditions. X.X% plan and other shift benefited demand least million an to the in dynamics structural generated quarter distinct The including employers treatment-related $XXX.X that remains quarter, ebb X members, medical customers, health cost from sponsors and that the be of of market of care our claim identified payers breadth plan accuracy benefit heightened mid-April, despite As prior extremely payer directly investments verdict Difficulty] at charges in recessionary million use revenue year that of very our generated flow recession guidance labor there flow our this bridge XX a by range [Technical either which whether supplemental COVID sponsors or Customer quarter, and million with payment quarter. outlined than second EBITDA in time the volumes as in year to The revenues, into case solutions more quarter trends. our and navigate accessed how that billion provides and are and of anticipated U.S. of variety to across next. remain and health the and is the free configurations, employers of warnings. remains a wide in in recession from and and $XX.X or EBITDA and down cost the the the we our the how was and sequential tight first than serve. rising plan how the to service platform up prior will from first headed be from broad the by through in payers our other billion provide that the Only margin quarter. $XX.X up we flow utilization health of in signals efficiency adjusted MultiPlan’s their cost shown plan the normalized health attractiveness. are X% from communicated the previously, in of Page services of related employers flexibility base solutions have services during notably Last cash as be quarter. an X.X% and little increases all In $X.X services the cash adjust XXX,XXX we and from types quarter, bill economic expectations from on deck. $XX put, benefit factors, service, those plan and QX in the services And decline all-weather plans. context impact we market, breadth towards flexibility Simply tight labor and or mixed position second labor provider between meets as they demonstrated service cyclicality. design strategy to breadth helping continued dates

estimated in annual to comprise opportunities million these For annual of our example, we estimated averaged the and $XX active have bringing XXX annual quarter the revenues. $X to about under in for total total revenues. during million X in value, added in $XXX and contract million XXX XX% deals each. over pipeline $XX revenues an estimated annual for a of million XX annual $X We estimated pipeline the XXX these million. The opportunities just largest current of revenues closed

in new of key include continued quarter of target expanding market relationships. include: New our and the business base. use momentum two-thirds wins Notably, health a our extend the data for a about ASO which regional and reflecting diversifying our customer highlights span new customer important customers. all revenues during large blue strategy goal plan very this growth XX of our eyesight market Other attributed furthers its segment, component to is of segments are segment, plan

Just X the one-third plan more than lives program. this its months of accessing in ASO has

revenue annual we that The already contract of active building At to end, service promoting pipeline. had campaign with review launch value. estimated bill deliver quarter’s requesting are X momentum contracts. successful $XXX prepayment integrity the Continued post-payment in itemized and in million our XXX services opportunities together a our customers

used road in volume lag, team solutions product property We analytics growth exciting had this the of in new for strong service by has to COVID-driven the customers impact. our X advanced expand of an months significantly X that Our aided also after and map deployment this segment casualty of segment.

XXX, double we is a track the our NSA-related run of completed one Notably, NSA quarter. end first by XXX continue of Act that with roll a revenues the NSA a and in total our of year-end. our approaching us No XXX the And as by be quarter. the service through a to to with more key of had rate end XX we We quarter, saw the volumes to end-to-end second to continues ramp meaningful the compliance full adopted claims payers. of total the of from second our At out quarter, claims implementations what of for appears our NSA-related services. up customers Surprises processed in end expected implementations to expectations activity to

as QPA when backdrop plot rule based new lawsuits the a pertaining in requirements the On reductions rule vacated Meanwhile, the for presumed XX, again objective IDR the of late the QPA from role anxiously meaningful to to CMS, thicken. air caused to and independent of payment primacy being retrench remains the and the our the IDR signifying is the surprise dispute flux. of in in the qualifying final Management bill portions priced QPA, At directing process. this until of appropriate federal claims the is resolution Ensuing of clarify publishes entities the interim medical in NSA treat ruling the it rule Texas seeing regulatory using which pricing given had NSA it are In is We issue federal or QPA of service, interpretation a the that judge are Office cost specifically amount, ambulance Budget to achieved. the the CMS to began to continues language reimbursement. earlier June services, final process. status expected once July final reviewing challenging anticipated this

initiate needed parts vaguely IDR to Compounding to fulfill. CMS the IDR process challenging the functionality providers process. of prescribed in and releasing remain other all the problem, or late was addition, payers In of administration for the

unexpected, we a consequence payers process IDR providers the stages process, operationalize in of are rollout. the and as early missteps early seeing – not and the As

our MultiPlan is providers fact, still and of outcome. behalf and have early, payers significantly contributed since early quarter the the that IDR It have to process. provider began submitted the in offers to of missteps expect been with familiarity In gain missteps, we accepted process XX% on payers time and process the more

for I of but encouraged June significant million across data interesting data commercial health we’ve far, the we are this in a invested care customers. opportunities consideration. a that with in $XX well acquired is thus providers am to reluctant and see company extrapolate of their a and So leading science data to a interoperability standardize management Abacus us is unique we cash plans jointly. resources we terrific minority and the our interest This experience that part enables to health supporting and ecosystem. platform Abacus In Insights data the capabilities positions service XXXX, pursue our

are strengths they data strong market very us help for distribution complementary. capabilities channel attractive. accelerate data will to very and analytic our find time expertise enterprise our Our and offerings, Their

renewal we the contract have As customers. one I concluded of with a our the mentioned call, multiyear at larger of beginning

customer not we this As XXXX of we disclose guidance with our at accordance time. specific customer a policy our not terms agreements, the Further, terms of are providing and contracts. in do

growth other relationships. provides, and demonstrates revenue customers provide strength However, the of impact, we muted, XXXX with we MultiPlan’s proposition, of long-standing to the the anticipate growth this this extension initiatives. the subject value implementation near-term renewal market the increased our believe will our to and importance of Despite visibility our depth customer we conditions be services financial the the of

I our the environment customer would and like to for remainder that and execute our operating commitment a base is to enhances long-term our take growth confidence ability speak outlook to in further strategy. the moment underpins how on shaping Additionally, our this our of business to XXXX.

patient hospital non-COVID-related of insurers, major volume and quarter care and sluggish of was As in expectations evidenced by COVID-related utilization as volumes. and second some lower number a below significant higher medical decline loss at a offset groups as the services health not in health ratios patient health the reported was in by

Our recent all still our claim reflects sequential these of it while volume, strong, typical lag. some designs, with buy

more sit we for to year uncertainty, remain whether back in or trends billion lower volume our for persist are revenue full track XXXX QX guidance some once we QX from fall $XXX of strong. and non-COVID continue claim XXXX non-COVID of Despite quarter in to difficult second XXXX where this Additionally, our care year and if levels. And full EBITDA we maintaining customer That summary, said, $X.XX our ranges $XXX million. foresee will the And it were time, to current could adjusted is In plan. accounting come and and to against ranges. today, health $X.XX utilization bit half at for again below slowly. into utilization those results this guidance XXXX recover a our billion adjustments, QX of million results the

pace our our XXXX our indicating business of the meaningful are recent on We services. rebound progress in fronts subdued on with for demand track the making to strength of – achieve remain our despite of plan multiple the robust volumes. our and wins non-COVID pipeline new on We business

continue our with help We regulations. activity the services our new Act expand footprint Surprises to and navigate No achieving of compliance significant and complexities the customers

our our of into our work objective maintain realities are one perception continue drive that of risks, since customers, company. made our to We high of assuming levels business, business and with a have the and line priority I to even the We with external with the visibility of of Jim growth bring leadership our our we the in an now in customer base business have the investing of more service. to larger and renewal contract

As I deepen industry-leading unique the with and health we position remain the care growth look system, payer value to our U.S. together platform will in making investments confident forward, our our that proposition long-term our customers. with I are the drive

presented you than have past Before my I more The to few to soldiered manner I potential MultiPlan on distractions our tireless colleagues. with and over gratitude have of extend want our turn the yet all mission affordability, excellence operational disruptions to to and Jim, call to dedication our X,XXX over and years you. that, on care to and discuss customer I an outstanding the in turn fairness efficiency to financial more will system call focus Jim deliver U.S. to the detail. Thank results unyielding service. With health and

Jim Head

the results for Thank you, year. good update Dale opportunity discuss you I and have to remainder and am quarter the pleased the everyone. to the morning second on financial our outlook of

delivered another quarter set revenues noted Dale in and line ‘XX, As of with earlier, adjusted we earnings once in again guidance squarely strong EBITDA QX with we quarter. for the

quarters. albeit Page the remained very dates related The factors, revenue million, QX on supplemental shown Act. quarter, a bit QX little of few over been X% normally to COVID X experienced second as to XXXX, than benefited revenue X.X% revenues last $XXX.X of over and claims QX related from tightened which, activity and impact testing slower variety down No service, treatment-related Surprises mentioned, the including growth in Organic we’ve quarter, the first solid up Dale was a a of strong and As deck, from strong

supplemental $X on the deck, of QX X.X% [Technical results, COVID-XX shown impact XXXX the X or sequentially. QX X.X% Page ‘XX net As million our Difficulty] down over were and excluding in revenues on or up of

Turning performance by to line. our service

Integrity Services As and services, XX.X% and growth was shown over quarter declined supplemental analytics-based was while the prior in network-based on Revenue ‘XX Page QX to services growth X attributable Payment of year flat XX%. deck,

of data affected modest in legacy This was driven mining prepayment were by pricing offset a in contracts NSA slower our by service programmatic results some volumes lower DHP. and Network-based growth implement changes line our were attrition. shift volumes Integrity customer largely Payment some client COVID-related QPA-based business, by lower to services. with in and Our to as analytics clients in our at result of weakness revenues acquired services our

to in estimate million on in $XX from in the Page million X revenue was $X QX $X to from of to estimated detailed As down $X and prior the up the $X million million $X approximately we quarter. million deck, supplemental XXXX impact an year COVID-related QX ‘XX million,

QX As variant treatment-related and abated XXXX. suppressed to health decrease significant Omicron has COVID care to slow been noted, utilization a in remain recover while from we cases experienced claims bit as and testing a non-COVID relative

‘XX EBITDA by $XX.X costs increases. in to the higher prior due million were million second in merit was ‘XX. million. COVID-related year in in quarter our for to were EBITDA up million annual quarter and QX $XXX.X to our from QX approximately driven from and the The headcount Turning on quarter adjusted quarter from $XX.X expenses, employee second QX million ‘XX million $X line increases was impact and with expenses and predominantly up and adjusted $XXX.X million, $XX.X These EBITDA up $XXX.X in year prior in consistent ‘XX, with in personnel from down expenses million X.X% guidance. plan Adjusted the increases estimated X.X% in $X

expectations, impact the essentially With Page of margin quarter in ‘XX on adjusted adjusted in XX.X% prior EBITDA sequentially. deck, year from EBITDA both shown our QX provided for was quarter, the net and X line flat ‘XX XX.X% the expense revenue cash second second sequentially, with ‘XX, for $XX.X As down normalizing from of and versus COVID-XX million. reflecting and adjusted trends in pandemic, EBITDA came down at supplemental activities and QX In adjusted by revenues previously. QX discussed operating the the down XX.X% the EBITDA in quarter was X.X%

our tax quarters to the given be fourth lower As timing a second the in reminder, of and debt tends payments. our cash and flow interest

the and of should few first increase to sheet, our a customer of $XX.X receivable of the the within compared timing receivables quarter. the quarter attributable second correct end a million was quarter, had we the the accounts end On at balance with in as which

maintaining for EBITDA. XX ranges guidance deck, we of and on supplemental are outlook our revenue Page the our to Turning adjusted

As some health the the half Dale persist trends care lower for of QX mentioned, results ‘XX fall could QX, customer accounting adjustments, into utilization in current ranges. year full guidance and our

multiple in the peak environment, and points Regarding post listless rebound are Omicron. data currently utilization volumes volume a indicating

effect ebb a quarter. marginal any and the in volumes our However, our of revenues the flow in percent on the given represent of revenues, few essence, last

the on impacts want in business prevailing half, we much clear the And environment bigger be to our core that are So the growth very the remains the intact. if second underlying performing the I remains our the even picture, for – volume in margin plan our long-term will our by service encouraged we that our our and investments against strong, demand demand are that very underlying drive services help business for in growth.

We COVID-related to ‘XX, of estimates. we to to year be continue $XX $XX with maintaining consistent on our expect modest which and revenue our approximately first half are for COVID a drag the to impact is estimate full our results, million million

an of EBITDA Our adjusted ‘XX. guidance XX% to implies full for margin XX% year

our expect to investments Investments year. in As initiatives. be compression and outlined platform targeted and our customize guidance are and in margin our our driven bridges investments and support support we and XXXX the by combination growth on growth our NSA-related by in February, platform of structural cost products half to enhance solutions the second solutions this in provided capabilities a expense pressures, largely our to of and in focused

as third our outlined deck. to the XX supplemental of guidance on quarter Page Moving

in there These Our $XXX some adjusted incremental forecast that QX to million assumption QX. ranges million an to softness margin and $XXX revenues on million will be the is EBITDA. relative $XXX in volume million in $XXX reflect to

balance sheet capital. and to Turning

$XXX balance respectively, ended Our cash quarter. quarter and of X.Xx, from with We unchanged total were leverage cash the second prior the operating million sheet. on ratio the of X.X% net effectively

strike beyond, and enable grow we and strong over business between continue to second ratios to our As we generation to the balance to our encouraged the of a ‘XX leverage us reducing investing be look cash will time. that half

turn will back to our up we to wraps Dale. I’d have opportunistic over over and take balanced but As continue like discussed That approach it previously, – to my deploying an to we comments. disciplined cash.

Dale White

for Jim. Thanks, Q&A? it up you kindly Operator, please open would

Operator

[Operator you. your line first from with Our Thank Joshua, Joshua Raskin is is Instructions] open. Research. question Nephron

Joshua Raskin

when with start growth I’ll question morning. first the good the excluding of the about impact. X% and COVID Thanks at

we about? in the from trend that the second, there all or macro First, relative acquisitions impact are organically the I something the showing then been in annualize to year just And some NSA. history? about the have But should slower think should environment? growth something where is sort Obviously, was there? the noticeably of now rates impact claims. I there And we there how this more DST should of thinking they lower in than understand understand we past. the is be

Jim Head

into little take X% year-over-year think, mix. point at which of note out that. headwinds, a in beginning Josh, also And to but a COVID volume you’re be that to would year, were of not necessarily mean annualized we when overall that was seeing the this we think bit things But doesn’t Well, it I quarter was there some seem our have avoiding going point, we’re organic the of couple of kind of the right be growth we well, acquisitions softness. you about are to impact, that And the I I at the NSA our the quite adjustment. do out navigating

the extra terms which X% of or on it hospitals the clearly in margin us that the side You’re providers quarter. of in and things, last X% is some of impacting and NCOs the in seeing

slower to of in long-term a client right little It’s material volumes out bit call contracts, kind year trend, but seen it, point within demonstrated. that than bit I’ll shifts of about are that a more the kind membership you’re our we haven’t in any this So etcetera, it’s – NSA. little the

Joshua Raskin

this is largest year? could just that the us not the contractual bit of you a maybe would just sort cause XXXX, specifics, renewed again, think give directionally, if understand changes, is color. relief? to the what revenues that on impact as overall And Okay. headwind but next can’t then your impact little disclose a company big about And sort help of of understand that you’ve more customers. But I us around then you specifics individual customer you assuming enough

Dale White

for the you thank question. Josh, Yes,

have respect we’ve What As you with mutual tell our we provisions, confidentiality contract our and provisions. we contracts honor multiyear can key you larger know, a customers. confidentiality and of customer we signed those have one to is that

we noted, visibility. will impact comes it ‘XX our with XXXX revenues. have that on As But – an increased have

business I usual, and on us, multiyear the typical for can tell we inside other that focused For with we’re that as executing customers. delivering contract it’s also a negotiate. our company, our you contract, is the And contracts – we itself

Joshua Raskin

Yes. carve business Dale, I the question headwind. pricing of – Is you – they percentage and with it out a savings? just did guess, around my or is really are less just they doing it your is

Dale White

and It ‘XX, XXXX time, environment the of end that It’s we it’s impact muted be really details would as all at the on be And is could of go resume expect COVID, depends end, number muted. anything. the we And of – at to on contracts, at we expect client we that Josh, by factors. nominal. said, to continue But puts and depends business usual. growth normal we as we specific thereafter. into the expect to that in of can’t that – said growth – – what but – the a it whether way, we expect off limited takes, it the we mean of the we pretty But if

Joshua Raskin

Thanks. got Okay, it.

Operator

from Grosslight Daniel with is line open, question next is proceed. Daniel, line your is you open. your Citi. Daniel, may Our

Daniel Grosslight

payment questions. at in it sequential both taking in implies would just the a it for expansion If then guidance, XX ‘XX for odd. we what you XQ. And then volume a seasonally on XXXX. look some you that just year, in similarly, I about XQ and and segment was contraction which of the still dynamic. an for remainder implies year of networks points gets midpoint But that variability between kind guidance should fiscal provide XQ, decline was of for basis we the each midpoint at have remainder XQ should kind in guys. qualitative and the analytics the how in XQ XQ attrition revenue few of I integrity can your expect some guidance revenue sequential wondering Thanks year, terms assumptions? growth a to be get ‘XX of of integrity, and Sorry, XX we of networks, on guidance and guidance X% into questions driving for I to think dig seeing and X% around XQ be you almost this in increase Payment mute. could around point analytics, if And of basis sequential in Hi, Integrity? any I on the margin the

Dale White

Yes.

Okay. Thanks, Daniel.

it break pieces. two into Let’s

we the range. for First guidance it’s call fair and guidance expect. a a the little QX, it’s on ‘XX is, In year, the it of overall bit I I’ll beginning think at And then we band what worth came a on observation and context. the of our with out narrow relatively

can on either COVID on little as each it be And about of than side – quarter hard is we midpoint. explained it’s it for think margin We outperformed. track. it and it’s ended be revenues, last client can adjust can the up, saying first of quarter, as didn’t the the less our we the because bit X% be guidance our But It you in quarter, environment. activity, it, we’re predict went second on revenue way utilization If to etcetera.

you or have keeping way our in I other. the not could make point pressure around quarter about QX. midpoint swing we’re that this point, a one intact. achieve a massive But softness. talking But the Third at mean range little guidance we’re to

think, QX. to what we’re a prudent results call range, broader leading bit and little it’s whether would obviously, revisit on just – it indicators, that of makes a half a in the I it’s of I’ll from the their and we in we more guidance cautious the sharper that activity, and think I more just we’re seeing and, seeing be But outside think think I bit say, hospitals, etcetera, second little a policy some it sense world the QX. get listen, perspective, So to in our based inside on maintain in

then the to a the was in is shifted would of I And say ramp was do here. some going fair in I So as effect are that services our and on analytics of some that’s is NSA-QPA side. up guidance. just over think and a integrity payment there the softness growth typically not network little to into drive bit we network substitution network that done volume that it note that

to to driver. going I Integrity network little and not driver extra So be be of an big But bit you’re here. is the going Payment right, think that a the are

incremental I side of think the volume in big analytics driver the in is QX, going that be to QX. kind

Daniel Grosslight

this the impact if rules products That’s just very then final helpful. be overall? according the are favorable the less negative little the business on how can a in little speak process bit wondering And and NSA to to then some net I’m may given your on least seems rates prepared about little still QPA year. revenue the limiting at more X% of potential acceptance challenged a the it. bit than and NSA, your impact it you And your the expect steps, to you if primacy for have mix that Got a arbitration like remarks.

Dale White

been been prior and then, net-net, in have that then sort up color down wins. less are programs takes puts rolled we go market has new on and Since to with obviously a But client very some in had QPA-based new very some with up, margin. Daniel. savings of that you programs, the like overall of are the pointed wins on the on much mentioned, other were evolving, a as The than perhaps hand, a all identified, been as the few volume and shaped we picture, up line they visibility In loss you there lots have as X% what has slightly and of anticipated. we’ve out the shared we we meaningful, I Obviously, projections. few we headwind fluid of of quarters, pricing projecting. Yes, more volumes still But slightly the as It’s as tracking it NSA-related communicated. weaker. said, and

made much of that much to the the the question color and final Relative in it’s still it’s tracking variable provided it’s which X% the ambulance So it’s factor all the expectations to primary no the made evolved it QPA Texas original with when for on ruling, variables. put longer other still was it latest in the but was equal right? of then, The headwind. equal we very about you the footing much factor and addition up air – since very – air, claims your the the how ruling,

then with And anticipating that science, entire likely comes our our not, way. the there. or them a and we’re negotiation what’s the rule end-to-end throughout QPA of support prepared final other the so of to will in mirror process with clients when all some either process. we’re the we But data, surprise position methodology, it out, data mean, I identifying our postpaid great the would in that at either surprise performing expect if performing bill, them IDR with repricing ultimately, From start working the billing. terms analytics, on we’re

out come they’ll and rules go, the no think which matter we we’re So ready. balanced, more way

Daniel Grosslight

one last headwinds lead is bit Got A a contract guess going question. to to in the for of some XXXX. I longer-term renewal that it. little And me.

large in growth renewals any mid-single-digit that ‘XX growth and little XXXX? to beyond? on And other top you line, a the coming there contract might up next within but So gets on what are weigh year XXXX rate after a

Jim Head

Yes.

sure. So

is here ‘XX, base. tell course of there point very scope in And feel we’ve like extend little in of got of it understand gives us confidence. what’s smart lot growth, I on a Enhancing Yes. to about expand. like – But to important really resuming environment. off a growth? we think kind could kind feel out expanding But be I nominal that realistically, that to the think of the resume – we XXXX is given and bedded good always offerings, should that a course volume XXXX say, is the everything going which And start about ability and and because the of – starting Could months be early question. year. Dale the to guess changes our the got just I a be Yes. growth of we’ve services, flattish? that – talked growth in growth and etcetera, our strong tailwind some but enhance, and then I it’s bit think that’s thinking nominal ‘XX, thereafter let’s about I talk about a X

down to of which these navigated turn We we of we other think know business in But I’ll in as things the course we don’t feel a good that build normal I over much you that going out are But the like And past, say we’ve the to the the in that of road. is it to to customer of any do if it to markets negotiations. contractual tailwinds. part got line serve, couple continue that will – to going And we’re future. hard working next we our be about that shape and good have sight we’re Dale, we’ve for to years. be

Dale White

of Absolutely. contracts speak can’t And renew. the they specific as and you know, and as Daniel, Jim then said to customer when we details

typically that case, was our extension a that length in out come term. of We this contracts typically consistent have with And have larger said in contracts past the on this multiyear what the term. we

visibility automatically they strategy. resource come it is sight. us, And they extension to important, And for on it’s up fairly is every that contracts, line and So us few to provides our long of helpful it typically about – multiyear this execute we for with as growth as what’s planning specifically a all very allocation years.

Daniel Grosslight

it. appreciate for Really, guys. taking my questions, Thanks

Dale White

Thanks.

Operator

with Barclays. is Our is line from your next question open. Steven Steven, Valiquette

Unidentified Analyst

on Tiffany for Hi, is Steve. this

if How volume maybe cited. you was the Just observations one can much on color offer software would quantitatively you qualitatively wondering from one quick or you a claims bit me. I either more a cranes, softer of there in there you lag NSA Thanks. any to utilization the trends a I helpful. attribute be versus can bit would impact? more just but the is add color understand

Jim Head

we’re Yes. you total. dollars, tens in in With a coming But just X% about the of And picture our we’re view. bit of I’ll a kind line. a bottom important talking talking in X% dropping to to revenues the of of not millions kind big down quarter, terms little give of darn that’s pretty

was probably COVID. revenues an – some of would so QX of say a COVID testing Omicron volumes And revenues little softness. little in bit excess COVID measure It bit equal in We of volume of a had is I QX. it’s because

a So of compare. tough two that generally speaking, was were a of And big kind those of little the drivers. bit

challenge seeing into I going is margin here softness think exiting on July. and a we’re June the – June into the going little bit of incremental

And explain, guidance. marginal shift so the bit little in that a I does think,

deliver always kind highly bit last our visible, what large to very to But I of the that I’ll dependent importantly, our that that back are couple quarter the very spoken we on margins. go majority of that’s little of just percent It’s well last the for. are in So very predict. core to – call, said the in tough revenues

Unidentified Analyst

thanks Okay. much. Got so it,

Operator

Cindy, question Cindy next open. Our with is from line is your Motz Goldman Sachs.

Cindy Motz

thanks that to I to But caution, money, in I my the the that think next you what were Thanks, mean, obviously, year, and – there. just save the lot I what do higher much mean, even and see taking were Jim, overall, of resistant to pretty appreciate the going especially we Payment guys when – for margin to would quarter, what were question. other you – mean I answered, of a want a and are more business. but my the counting see you like seeing of in comments. shift this everything, recession and I correct? more you And general, quarter, companies, people, we do you ABS, you that’s Yes, slightly macro what I mean, in you ahead general, Integrity, in part questions did say COVID the expectations said impacts with were I relative

But see going Or do I declines? mean, ‘XX. would growth, be – they Do So Thanks. in stay is you margins you of, there revenue to any obviously, you’re EBITDA there ‘XX? do color give terms that in end, could they talking how Or up? about great. us in

Jim Head

Yes.

a I kind of visibility back there an along guess Dale feels questions. Number chugging that in and come I’ll So we it’s commented, all-weather of keep like and two is as It one, to our degree we’re business, visibility. high solution.

reality economic is of kind our we last of what is the incremental over in for $XX previously, stated pretty kind revenue, of shifts. But like state million $XX really any that the year, as that terms So I etcetera, that million, important. being chances ready is

we’re year. – in say making dramatic It’s of largely have are not but we what fair a it that it’s the the And terms terms technology, shift is fixed. a next we platform of turning technology, demand people, So see the external to that XXXX, clients from to in costs the etcetera.

we clients It assume this don’t as isn’t. But ready cost you some revenue some we And marginal a drops should – – so to to is that just of softness make our see any we I And growth fact, variable that going think that predictions commitments as in of deliver. that down. base. do to are not highly to we’re yet. our – just clients lack want

that we the the And are on But volume. ever company most so is, we’re cost-conscious bit that I’ve is reality the incremental holding encountered. margin, a to little

Cindy Motz

okay, – understand. so so And I

any new areas still the but with very don’t the feels good And like even are to shift I see dramatic customers So in is overall, because we momentum pretty expect necessarily conscious. you cost should – – well. there think as it

Jim Head

Yes.

one got I’ve is and We we of before, We is services. We’ve a our – in it there gives I kind need market, opportunity getting a competitive win. position in now – privileged think expand of coming this etcetera. got that and right been the to competition, these invest in business. and products outside, kind mean really have and we’ve and after the and bit doesn’t us renewals that’s to of we’ve And said a to But in a prospects. grow. to management a some we’ve some have think opportunity the really runway the place why do little new position marketplace, team I We us an pleased. it kind post-NSA we’ve intriguing of behind contract got no got reasons got need been go here we’ve from of of in this and really good

Cindy Motz

my taking questions. for Thanks Great.

Operator

are There further Instructions] [Operator questions. further no no are there questions. time, this At

the like for team to I’d any So management back the remarks. pass to closing conference

Dale White

your continued rest the you, your we Thank appreciate enjoy of everyone’s time support Thank today. and for Thank confidence you. operator. and summer. Listen, you

Operator

today’s participation. Thank That call. concludes for your you

your disconnect lines. You may now

MultiPlan (MPLN) 7 Aug 222022 Q2 Earnings call transcript