MPLN - Earnings call transcript Q2 2024

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Operator

Good morning, and welcome to the MultiPlan Corporation Second Quarter 2024 Earnings Call. My name is Harry and I'll be your operator today. [Operator Instructions] I would now like to hand the conference over to Shawna Gasik, AVP of Investor Relations. Thank you. Please go ahead.

Shawna Gasik

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

will Chief are Jerry and Officer, and the can today Investor being speakers through section call Executive session. Hogge, available The Q&A Travis Operating be Officer. Our multiplan.com. webcast Financial of Dalton, Officer; our is at for Chief Jim Chief the accessed be Relations Head, website

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

Before of begin, we a couple reminders.

number of results of documents remarks and statements our differ forward-looking the these today and Form due be second represent slide questions found may more materially XX-K of as to can Annual responses complete and on risks deck statements the the SEC. description forward-looking a beliefs file Actual These on only expectations statements. of with supplemental may on Our a management's date and risks. A page of from these include Report to the we forward-looking call. summary other this

of An investors and to We that, referring GAAP Executive measure we Chief underlying provide deck. With non-GAAP complete their like to in comparable would with I can Travis? call our to slide be reconciliations Dalton. found supplemental explanation now results. over in turn MultiPlan's understanding a measures, the and will earnings press Officer, the release believe to operating Travis of the these more measures which several be also non-GAAP

Travis Dalton

evolution time coming the would like ever company, an goes to our know than assessment of several will the transformation and join of the to I exceedingly and aspects view did I'm saying over the I on on you execute to in I first journey. That at That I you call. of service all first full our quarter learn, I'm you XXX to an for good commitment and more than days it's Shawna, on continue we the today. my confrontation and you, business journey share time. Thank with company, my to to my reflections morning your relentless It interesting transformational today. in, facts. have without is time completed good been and honest Thank convinced here more MultiPlan. my a recently validated and of on pursuit thing. clients begin our of a excellence. must with proud very I'm committed brutal now

expectations haven't the matter financial of our updated review to consistent, year. quarter entering By that predictable the been have had enough, must full results short financial Those or second our we simply results of our is However, now, fell fact opportunity good and guidance. the the better. results many you year and perform set

outlook with progress growth revised significant But fully am the realities aligned I of even in by is indications Our and encouraged in short term. the long-term. opportunities underlying mid- some more key current by so the business for of more our and that,

as excited joining been as I that this am of All have great I company. said since

strategy clear, future. compelling forming and have a We vision for the

team clearly and great data a product professionals. and have forward, that and dedicated current move of product an and as better new talented operating value, we delivers untapped technology We plan opportunities, incredibly to long-standing execute clients a portfolio set relationships, assets defined a of

time cash strong generate progress. have foundation, business make ample we we flow, We have a and to

showing can drives and requires hoped, It moment, opportunity sustainable product some a decisive take this a what rigorous know organic growth. will time, this markets. Over operates of capability In and share process, across lead to increased and more Simply vision integrated strategic, to with share to sense very execute. the a but a a and longer for do more data make with meaningful discipline an actions, value much will plan of and more that quarters. we detail I we're I'm transformation that look urgency deep enhanced an transformation to comprehensive change, bit commitment world-class my will more making, the you our had technology that Our than financial in coming I to and progress. may operational for we clients to put, forward we encouraging in progress company confident and

our framework As ensure established call, we a time. core results earnings that to over last on more achieve have our I operating we mentioned consistently

against up front. we've to to key I like address Before made progress a speak few that would I framework, right the issues

First, of has scrutiny been media the ongoing an overhang challenge.

our We engaged proactively. value updated do and directly proposition, so head-on, it to continue have stakeholders, with we'll addressed

about We and a affairs we representation educate protect that business have to corporate team, established inclusive of defend public lobbying world-class and continue provide. the misinformation government reputation value stakeholders we'll our and our relations false and of narratives healthcare to against

voice to the of quality, price control. and our use actively support will We aims transparency cost healthcare

Next, misuse offer with a merit and in balance we consumers, believe against The data to or that will affordable seeks way continuum for more which makes across competitive a and price is for the which the without reduce Surprises increase transparency confront entire that law continue we environment, supports highly very in employers. and us, clear services Act. an prices and MultiPlan, are ultimately in claims eliminate transparency legal the No the bills to operates healthcare patients are openness attempt to

are support the of merits role We important that and plays products ecosystem. in the clearly facts company the confident our the healthcare our

first These clients, onetime clearinghouse flow our destruction, faced to have and impacted the results. of the challenges of continue included environmental we affect us half which through quarter. our claims the our a have that second Next, series

and continue to We support as do. our will navigate we these challenges clients

initiatives generate traction product commercial anticipated. to longer taken our with it's Next, new than

on track. that am back the us pipeline plan the earlier growing I is will the there, operating However, confident demand get is mentioned I and

competitively large and products clients, our spectrum the believe across of small. prices positioned are the we the Finally, of and marketplace services our in

base. the exception the an of remainder overhang one growing we of attrition rate a our related our clients, to larger of across mid-single-digit have customer been at With

While we until to way us growth now point, should growth at for core mid-XXXX, this finally attrition the in that business. to show be our constrain clear expect

imperative relentlessly remarkable is clients. value deliver develop and have for It to our new We them.

We before will continue market doing to as light is I In doing proud serve because years. yes, joined XX unequivocally. good that the that myself question for success. ask will healthcare? confident providers because is for we in that, had to as MultiPlan, the of I we ever answer our am and provide the them sustain are value the so I I After MultiPlan served

of have clear validated facts. point view We by a

explicitly corporate to including our communication are investor stakeholders that We articulating across website. our channels,

and us on our organization a our articulating allow plan mission and in technology to of Officer, business X-year we clearly of support forward and and We will market our development, into and proactively communicate for engaged now, company laser-focused assessing move an transparent, being our actively affordable to in both but are exercise. will back remain of to executing product to all. Getting to fair and transform and growth our development. sharpening led to aggressively more healthcare and intend This make with continue resource set a go-to-market forward; data aggressive products, process, support which how by for in with our mindset, planning strategic vision our internally externally. This sales across through fortifying the includes prepare new current potential, the evaluating Chief strategies also precision, is products Operating next we

decision million be a hearings services, foundation on and a plan the well supplemental our and resource will includes conceived strong vision developing Health X.X a those annual capabilities us science transparency, Value-Driven results. Delivering HST insurance and products, analytics-based vision of data price on building that and vision Our and risk capital provider precision, other and our with areas, and robust that Payment ] about Integrity builds network, all analytics, allocation with help along execution. maximize realize and [ will operating Plans

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made our proposition. and take me key turn. and educated many significant of updating in message Let refreshed website Clarity, value we've messaging, set progress each external We stakeholders. these our

to clear the Affairs, a authority sales with execute rounded of the us ecosystem. Alignment; an monitor to role out Combined strategies. healthcare on is have Affairs, we the new and play clear Senior We our Data a to additional leader, added XX of a operate. This ensure with aligned have Vice have existing Government our tracking national we vocal goals. we of progress we prudent incoming owners transformation. decisions capable Scientist, mechanism that and will Focus; across indicators team We've set our have accountability we and to market allow talent, and a committed our a be CFO. added a forward real-time KPIs with will we Chief accountable of have of accelerating our continue take against President significant sales Corporate President talent on to and talent, Vice

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and where better They money. We and highest predictable laser-focused expense and and this are quarterly enable yield products the performance that initiatives potential we value. and have long-term that allocation in business will prioritize time. those deliver to have and us much support more to more do, The processes our the make time, noted will most and but time, all in of for put important decisions resources. They products timely results sound of enable work investments over create on help us energy clear to to grow will better around make outlays are us market capital that over

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give through our acquisition BST us acquired Assets strategic advantage. a

we and in the customer addressable capabilities total serve diversify aggressively deliver and we sponsors, TPAs, value provider our expands as opportunities projects, integrated consultants in more data and payer plans to analytics our progress. market markets. Internal markets other of us as with backlog automation opportunity. and this we'll aggressive this with This pursuit all more have continuing of and we AI, be time, the with to is our value increase will processes beginning. Over leveraged NSA of We division BST get brokers, offer market base regional starting allow of these and only and focused in deliver a national our platform more meaningfully for clients, that address all

will We logos in the headwinds growth, several associated results. I pipeline be the examples. We in resulted had in events to added four key by energy and digits new are better persistent win. QX has has mentioned already even in X% with am half, the determination I the with pleased earlier. which better and support of driving organization, progress a our year-over-year, first double grown by and TPA up Sales that with exogenous demonstrated

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over track and with for cycle [ identified core with our XX development products key with and new interlock new ideas We life discipline enhancements product teams are serve our held management first that client the additional on ] our base. We our XX and ] consideration. [ leadership product roadmap focused with

opportunities against market and prioritize market needs We to evaluate quickly efforts extend and are those to Likewise, results. concepts we partnership our continue maximize will client our reach. to moving to potential advance

the of value able senior As meaningful we that professionals added opportunity I a as these to are quarter want over to of in in world-class part the attract mentioned, be and strong have environment time. we and that new the endorsement competitive know in ever-changing journey they to our we an operate we We company environment. a talent unlock

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met we do outset, We I it at In realize have straight not noted the as financial to summary, take have results on, our we the will and determination so. expectations.

to management honesty. I am As sustainable can but and we some, we achieve time team, will know that will we brutal with work a We over do, what have results. confront and confident and

for We are clear a working predictable tirelessly and sustainable strategy to deliver growth.

As more needed strategic discipline, and capital is improving we that communicate to detail and us say-do move this to our will focus will disclosure that achieve the to plan, look ratio. allocation of that investment underpinned in forward demonstrating all you execution plan by and by alignment around I forward, hold our one to is investor accountable. I allow you supported organizational

your what are are. you You record says

the to and better, of we be to to relentless. I results. will cover needs Jim it Ours would our like turn to over details get

staying can't Jim through thank leave Jim to the our has enough. values in embodies Directors for in morning, Board him with end decided uncompromising be excellence straight The us a advisory of our shooter. this disclosed has is the year. clients, frankly pursuit of I MultiPlan, of a and core service will strategic just but As been role and

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Let it Jim. me to turn over

James Head

good Travis morning, to Travis, and reiterate said. like Thanks, everyone. would I what

we for we financial through will remain While prospects. are I medium- growth second is for taking finally, progress the I'll balance longer updated making then our capital to results in and company's and the walk I expected, review allocation. confident and close and sheet XXXX. materialize half full with we to Today, than the long-term a of second will outlook turn for quarter our guidance provide 'XX. And year of the

page quarter from of a on decrease X was flat QX 'XX shown and As sequentially. supplemental of second $XXX.X X.X% effectively deck, revenue million, the

of a our below revenues by of as revenue services. in for our new just Our was guidance and sales and line fell in the range slower-than-anticipated volatility products offset the recovery our solid volumes yield quarter by

to the network-based shown our or revenues driven 'XX, sequentially of Turning $X.X revenues line declined on in by and X service to and as million, about businesses. X.X% page by supplemental relative softness Property deck, QX continued complementary network Casualty

essentially offset flat served Our with employer ASO strength major larger were of our volumes, Data by in one analytics-based clients. in including attrition a related to revenues softness sequentially, by iSight NSA plan our

X.X%. XX%, prior revenues declined growth offset X.X% Our postpaid declined Payment by Revenue Clinical driven Payment and Integrity revenues strong our grew Versus analytics-based revenues Revenue sequentially, softness Integrity and business, Negotiation declined in and Prepayment by continued in revenues our X.X% quarter, the network-based portfolio. year

million sequentially revenues is million, in a consolidated were which year X.X% $XXX.X prior and to contribution the Excluding from reported effectively revenues, analytics-based second quarter. our BST, flat quarter $X.X revenues down from

identified quarter, charges of second cyber the with volumes that the April claims showing through growth outage savings experienced During build potential we continued recovery May. solid and to in flows from our impact June clearinghouse and

billion. and billion, deck, X% page to the supplemental build to increased on X charges sequentially X% identified shown $XX.X sequentially As increased savings total second of quarter potential $X.X

charges page sequentially. model, environment, shown facilities and savings from to X% X, physicians utilization With of billion. were on savings to As up the percentage $X.X revenue respect both sequentially core potential increased identified in our build

mostly positive lag. decline signal for of a of inpatient a outpatient sequential traded given and yield. emergency more in revenue hospital but strength percentage sequential The trends what by claims We data in call as our increase suggested forward some is which sluggish or volumes the quarter identified balance was in typical our volumes in a we which publicly systems, room surgeries, second on reasonable our revenues offset also the visits, savings note from

revenues. which supplemental fell impact X about our and decline quarter, our yield which shown our mixed with yield that model, credits This PSAV overall from $X.X included revenue both page As none approximately our was yield percentage to QX. of from it $X.X related contracts. includes existing deck, business, had or Notably, is PSAV about for within XX on about basis revenue incremental an the yield in yield points XX to in of basis ended points million about about million of core our million shifts savings sequentially revenue points the XX% of and decline in any and of $X.X our contract the our which basis points declined about revenue changes basis behavior of PEPM. In customers, of was or revenue the decline XX customer revenues, X

to to Turning the from and million increases prior in second personnel and EBITDA of million, to from $X.X million and adjusted increases related 'XX in BST. of benefits, due primarily $X.X $XX.X quarter QX the over million costs was The headcount expenses; year were related expenses increase down compensation acquisition sequentially. personnel year-over-year employee expenses including quarter in increasing increases increased $X.X

prior in down comparison, adjusted million QX sequential Adjusted million $X.X in expense down $XXX.X in reflected million X.X% QX. from EBITDA the X.X% million EBITDA 'XX, was year $XXX.X tight from controls. $XXX.X quarter expenses in For the and the decrease

the EBITDA XX.X% XX.X% basis in from margin was XX end and guidance adjusted in our from down Our prior of EBITDA the up slightly 'XX, Adjusted QX was XX.X% lower points above quarter. QX year range. QX in

lower-than-anticipated adjusted like EBITDA Our our was and to reflected commentary range XX% the XX% below modestly quarter the costs. margin of combination lower and prior revenues second in mentioned

product full our earnings summary, XXXX versus the first growth revised a on revenue the guidance $XXX uplift difficult billion after X half million $XXX of year our page from XXXX of to full a revised revenue guidance we and guidance our our prior supplemental second core have muted $X.XX to in year on only business billion, sluggish our and product to Moving deck, in modest reflecting to core in growth our $X.X as shown business half outlook, slower-than-anticipated sales. In new sales. assumes new million

EBITDA million, prior to Moving be we as are We $XXX reflecting our slightly down of projects our revised manage million. growth. The $XXX investments combination EBITDA generate reductions adjusted estimate from assumptions while expected margin adjusted to million, EBITDA in expenses adjusted to our seek adjusted now to are revenue million XX% XXXX, reducing to we an below our about prior adjusted expectations. to maintaining for EBITDA year to $XXX full guidance; implies that $XXX expense revenue of and about margin expect projection EBITDA of our closer

our adjusted future on page mentioned, will Travis starting as at quarter to million $XXX of larger supplemental the a anticipate program as We guidance and $XXX EBITDA $XXX revenues impact in outlined now And Turning we specific results attrition client, XXXX. XX a million. to $XXX to million related to million of which third the of deck. expect

guidance -- headwind not to rate in growing expect our XXXX the transparency, have attrition as with we've the attrition to at revenues While Travis it's base. next this each overhang remainder related But of approximate to exception been we larger providing across excuse today, customer one of mid-single-digit X% of me, clients, the for our X% to of we're year, pose we year. a an mentioned, also, interest typically. In do that February program

way While growth clear additional the constrain attrition we us should to ongoing in this core. mid-'XX, to now the this growth until show for expect

release, from on quarter conducted other market As second less Based forecast rates, our the estimated incorporates test, discount we fair which than share of and value. was factors. goodwill you're impairment market financial again of our our price, conditions, the XXXX, this revisions including value press in our an aware current test carrying

GAAP the recorded a results. of in $XXX.X charge million result, and a we earnings our As noncash impairment charge recognized

second sheet operating to million. our was a flow allocation; capital and cash the $X.X in quarter balance $XX.X the was levered cash Turning flow free negative and million

the quarters tax fourth for typically payments. a lower the second and reminder, quarters timing and of flow our interest given are our As cash

page this were the million Net any on shown As we did of securities the and respectively. ratios of deck, supplemental XX and $XX we and X.Xx not quarter. with operating leverage buy total of unrestricted X.Xx, ended cash, our quarter cash,

capital Our the long-term remain priorities same.

business growth Our remains long-term to and drive highest priority the investing in value.

remaining making should to new cash investments our on continue critical will we platform, support focus debt reduction. and us service expect to science organic our core decision our data our including products You primarily and flow, line. With

acquisition our we retirement. focus reduction and emphasize organic have long-term near BST, the deemphasize will and repurchases priorities the we share not investments debt in following While of term, and on as changed debt M&A

In terms we've of consistent. capital been structure, our

approach. flexibility, and have we time, to continue have will in thoughtful We and we be circumspect our

the to news and why MultiPlan as clear been I'm in I company. that to -- why, believe that this I'm I've Finally, as leaving leaving

many as I company. people You've and in heard more transformation emerge its times. believe this sustainable to I'm confident me diversified from our from and and going a we're strategy, its stronger,

important an However, this moment is mentioned, for us in a multiyear as journey. Travis

a happens. on end the require forward Doug, comments. few a on of and timing and my sure over our turn a years personal transformation you the will to to company seamless through. year on catching This with who quarterly to to a I all go brings many of personal plan can the fit are I as that and complete that in creating back end I CFO the my days it way transition see horizon. Travis. make through coming the look up with to earnings of me basis. That a until to you, I'll committed we needs doesn't remain for and it to Travis note, Our more

Travis Dalton

Thank you, Jim.

open but forming a you. strategy we belief the journey, Before my a reiterate that's very forward. just me to with up for coming would kindly you vision data quarters. Operator, a in value as achieve the a sharing future compelling path in for let the you our our and is to growth. I for our have clients any questions. technology-led This questions, continue organization open call call clearly look bring I that Thank transformational and forward will and the to progress sustainable

Operator

is our line from Instructions] of the question Research. today [Operator of Raskin Joshua And Nephron first

Joshua Raskin

got couple here. a I

would just was to and X% thanks or help half $X second if endeavor also next all that's first, the of X% I should on EBITDA first and and expected It I potential just million half. second of wishes My still about to the a Jim the is. question have decline then So down a first -- disruption -- is and first EBITDA in just curious start the your question from the his implies I'd guidance year-over-year for of well, in to be best with million improve in whatever light Healthcare. cost for about initiatives. $X Change savings just half.

second in there? what's curious the just half, offset I'm the So

James Head

Josh Yes. And thanks the for this Travis, I'll kind one. take words.

couple a things. Just of

maybe on we've side little of talk side, a cautious volumes in of revenue and just I you've Let's about But QX bit. rebounded as through some QX. the the revenue kind volatility seen think little There's a yield components bit. things. the gone half. two been of being strength The It's we're second

And so better is we're second core. the a that in modestly calling half

up BST. our of growthier that things of is the just softer HST is like in sales and new one think coming some I areas

topline the that. little a result a bit for of as half second on we the cautious So remain

cost and the level investments much the a the full cost pretty bit which to BST. a you're costs but to uptick maybe I the going little -- of fixed, same, bit committed the a absorbing we're we is in to think to judiciously second ways really little there's half, whenever second some is side, of little half products, base the we run margins, see there's tightening have, of But rate think that just again, On relatively which in we're maintaining about relatively costs, flat investment future. about I making still the want bit. in go. And our We're these because of the kind

year. BST didn't in of too much half first have last it The

can of progression. you So this year, track our quarterly kind

some And things. we're of of both we're so on external some -- well volatility, we're in I the that's the side cautious just as But think our just yields, in where expense revenue as the second given being at, environment the half. volatility being

Joshua Raskin

Okay.

Okay. cycle traction I'm then or is does helpful. sales products. saying you just mean taking mean customers more on are new that And mentioned that slower curious that the commercial just longer? -- That's does the no

Jerry Hogge

Hogge. health Yeah. is plan Jerry is and about than a the value-driven and transactions. sales talking But our pipeline robust there, into The into sales conversion continuing. our little are we're budgeted. Mainly This the revenue. longer HST, just It's pipeline is of revenue conversion was

Joshua Raskin

Okay.

decision, last give some And one, million. what What were a headwind And then what to I the not I'm $XX was health Okay. products whatever, or sure understood to then the if of the customer buying? the they that a in that? large plan X% million on health led revenues more Could departure? was just $XX call if it, XXXX it -- to a was you color us plan?

James Head

take I'll this. Travis,

do relationship, move of think larger they're kind clients; discussion, strategically. in of just kind to of inside it's -- think program don't I one historically. our a I and to overall the you know, as a Josh, it's lot a we of A, B, different direction going --

we So put we news year that. picture but -- want we in in are didn't about don't the as interest we the more kind that out, to entire transparent, being any that getting we come as really together. coming of But talk to the call of specifically wanted

Travis Dalton

our ] We're that. [ color put in more Travis. confident I'll is on core. This

As national core and accounts. we're actually script, I good our said and about we the seeing seeing some during our good growth feel price, delivery inside the we're value -- of

the to to strategic are these seeking I always we think said things, we that in clients space. are to that not ensure bring to value value more to we relation bring. That grow continue

value change thought basis. the say we're core what we bring strategy also was it we clients very our in create go-forward to the that programmatic that confident set important but was related calm and we just of capabilities to that a us, that So them on and some impactful and to for it is,

Operator

Our today Daniel of line is the Citigroup. of next Grosslight from question

Daniel Grosslight

with I'm really on in on sequential I'll really in continue net on seen our first quarter the first kind And it's curious shifts has the you've yield question that my if detail basically working is of yield XXXX, declines actually Josh's been provide comments conversations -- while the the and not very yield. And quarter volatility. guess echo a revenue means. you've and the volatility been future. renewals to there, I little a every of decline you the great upfront about been I'm in since Jim. Hope what to contract led current could revenue quite XXXX credit more yield sure

if you a shifts can to those just little you anticipate maybe that yields and and more abate? volatility on So provide when detail

James Head

Yeah. Yeah.

maybe of there's it, yield. changed etcetera, little so And the nothing's into little system. and client over -- credits. kind kind on to There's abate The bit. the that of I'll service Those this in And of accruals, we QX yield a and go peel -- the QX. on of clients. through back that. Those master a kind programs, We end client bit true-ups we But at agreements was it, get time QX. so the it's there's address behavior, underneath in the the rates -- had we there's saw washing what just contract of have $X.X is were our million will credit --

and shift. some remainder be if about yield. just savings, of normalization is Daniel The shifts million of some same business going that, book against that's of So positive you will, hopefully, the $X.X a overall the to in

bit going And temporal, some to those of little be -- so are some those continue. will a

high of I in not or think Xs. some kind starting is -- steady. And to of probably things underlying nicely together seeing of pretty year don't I we think the the were the I pretty masking some probably -- yield netting come volatility think last keeping so and because out the were

we'll the more nicely. that through right But is, a volume I little is seems yield think wash volume is to the picking there's news -- good now. pretty up volatility and bit in be

volume. the I to we're great think if think yield feel the better feeling we're I little So about going less about part, a

in are included washing -- come and still starting that change sequential. quarter. of positive some through, Things bit. And X% the a was that back it's that saw the to You little

about have that growing faster off rich of terms are that are and dropped lower the a some have clients The it yield. slightly part that others pretty other is in -- there's are that yield

if see inside even you that products. some So

that's So to we're stuff we're -- just as half. the reasons we and one why before first of of the this particularly let we wash credits in little some the get the through, bit a half second cautious

being just on conservative that. we're So

Daniel Grosslight

Okay.

obviously, then capital And some you Okay. there. on time your have structure,

most the term in I'm are of nearest plan you converts the the takes maturity though, your XXXX. outside -- think maturity. X-year curious, now I that

discount I And a the so it steep pretty at that make might -- start bonds rather trading all earlier than addressing in sense waiting think now. bonds than anticipated to the are

these repurchasing having So opportunistically pieces of I'm of curious, other than some credit debt? and to open with restructuring conversations market, are having in you open of or conversations you some the are investors your

James Head

Daniel. question, asked off pretty a it's Yeah,

any on thinking We with we doesn't a time our be actively kind some swirl the all since are which time, that think always be capital not front. That of we've its of -- just a terms in But dealing fundamental pressure doesn't not forced some act that. we're -- there's points act But we is to that and I along just I have joined -- swirl some flexibility. legal or of be of abating this, the a of not our lot securities kind But Washington on say, see hastily. to going been here, is about in structure. to our around have But You have those. we're thinking and we do forced been we'll couple just assume those thoughtful around and and around we're securities. be little which hastily consistent to we anything liquidity mean of can't to prices we've of the And QX, in on that to we mean external about in been you we should it. we've news but the the to of opportunistic, seems and That bit thinking going the got have things market moment given the that had the And not in swirl. this. big

time. other investors the is I our thing So us all would say talk to the

dealing getting it's our a of advice not this with we're in security like time. vacuum. the from We're not and -- input all So all holders

So active dialogue. it's an always

Daniel Grosslight

network the last And it. and Got one in of core expected, It going targets? to change sounded longer of newer expectation growth a for on take to than the to me, kind X% that X% XX% is outlook. your It like wasn't long-term long-term potentially with little getting products. it's terms just X% out like in there to of of that any still sounds but some

James Head

as fundamental strong of -- it, I'll of Yeah. of mentioned, And had [ client, of remains intact. just rest last We've the for kind we've over quarters -- handful it's kind the of the think mid-single-digit here seen of the we the consistently one Maybe but business, call core. ] kind I out thesis a our growth interesting. that

thesis thesis look underneath out the doing products, that you you should comment fundamental that that like but of cake Travis, is it. absolutely is rate. bring as new how don't we So this, to if it's on layer that growth underneath intact. And the a we're to higher continue additional gets results

position And So to I'm point long-term let expand. kind I'll view, of of the Travis, intact. not best that's probably in -- do the but algorithm is the you

Travis Dalton

add just I'll a few comments. Yeah,

as I position, I we product that make more and client into we organic and we from that in stuff longtime And can XX ideas better I is we and think product not, simply put accurate. the said, like core grow products new mean, set capability, we or Jim first make had of move good is had time, can base. more to we we're team. think I And enhancements our improve stuff what our product over tell interlock, clients over a think it that core believe So it we to as a are clients.

looking space extremely over we're it's viable and still time. So I think for that some reasonable growth in

look that, capabilities, product confident to a say, some plan options say, interested maybe that and aggressive, market, relates in our of dare I do and consultants business. We I we've quarter and would our be direct. to interesting going at our was to with then this I it better addressable more win times at really because some particularly expand expand of disruptive that have to provider with client capabilities brokers, you signed We're set our analytics kind finally, TPAs, all got sponsors risk right Beyond outwards, can, of was opportunity super I think great I'm we we if and very a super a our think which prediction concentric circle total as repeatable.

it's So little that said to and believe we're down a as what earlier, to going of we're for clear opportunities we But I which than work the going put am time with and is I I that in doing, more more take thought, view a in you, of top expanding have. Jerry into all markets better those and selling doing. those is sales to

Jerry Hogge

Yeah. And Jerry. is this

what to add of kind said. Travis just me Let

And the downside. have described near-term to question We But [indiscernible] the have programmatic yield the beginning core potentially volume we stable variance that's of one a we was trends, business, yield client that, the after favorable. that that we unfavorable. trend with becomes right? I this think conclusion think at comes of one So change and your a the favorable yield sources trend on

is And or over the business stable core So favorable long whether trend it's thus, follows. favorable growth trajectory term. the the

Operator

of the Our Aron line Morgan. next from question is of Madison J.P. today

Madison Aron

you have you the just what And declines that confidence? the visibility closer I one, think the PSAV going have you in below X%. And see challenges I rates. here. yields assume we with few the or to further I'm won't are HST, the not still questions given that trending to be guess, should we a gives sure why do

As keep you just that. bottom the don't well I what through that hoping I sequentially is they was us noted here. walk know as earlier, declining. could

James Head

Yeah.

So let's answer the first question quickly.

it's member on HST, a per month. So per

or a we it, -- change put perform through about talk our we just a which It benefit can deck, the at can system. revenue. And we X i.e., bigger to that say it not, underneath [ little KPI, And bit into factors clients. And of you're some just it we washed savings, the would then our we will of proposition. of they're don't Rishi our happens We a -- well of through stable ], value margin. page we the get around continued primary sticky yield. of changes the lot that pretty believe volatility lot rate if just of last the on it. I the the validates that super like a bit just to one after always right, washed been larger the year there's there's or there's So But on the It of on at be this was system. abate little fingers think downdraft. a have PSAV But I is has decline. point. feel And of also come volume

feel a okay? yield range like a the quarter. What's of just declines. is start within sudden, every the going be the And savings a couple to we -- basis the volume all this going benefit going I of so And that's of point quarters, in but any not growth single to to stabilize, growing, it's where offsets within

can And a through flaw of it's fingers what model. very, there's couple of we're changing just very It's now. our so But going are that's -- we last quarters. pretty that things. these not some things put over the our not right on in painful. of course the And fundamental It's specific

Madison Aron

terms with large in that other that type Was product? programs on provide other this us a -- to specifically you NSA this some what And payer that more changes then relationships this what customers? within I program, was And competitive and gives a of maybe could extend then an pressure customers, level in there's of And hoping product was large programs comparable here? assuming the of not other terms to that may confidence Okay. with you what other little any detail. seeing you your related meaningful the or are similar bit large TPA payer of

James Head

it over time, a be wanted would little not is describe clearer trend. think, program, I we'll there. on big Yeah. to as to But a I I We bit earmark not this. the out this the -- Rishi, a put think specifically

a that more We've NSA, As of little core And assets network of Travis hard said, stuff. of it that are and includes this in got remind would decision. a to Data just business our scale. iSight, strategic I this bit all everybody replicate array includes that an is the

it's -- shift not something an not consistently. internalize someone easy business for it's or so task And to

I where out, more you're people aware don't had the more this called things, it's is and moments We've so complex think and as of. internalized getting time And we but have world over a trend.

an the and the ever-changing And so to make complex deal with provider independent world, changing, make investments to change. those loss to can leap a NSA types world, may It's they deal haven't still settled big be a mean with, that I having in of continuing particularly the decisions.

seen pretty some feel -- we but for So been this, But one as ongoing trend. a client the is consistent out, this don't it across an good in see it's position. we're that board as pointed we've like Travis we that of

Madison Aron

this will cash X-year skills we hoping that means. does 'XX, drive customer around the that flow is given this view relationship this execution is the you I competitive least at Is That think was acquisitions where quantify these help free case? elaborate case. and a the seem to least lastly, the would -- Are this what we'll be driven. Historically, at us to and actually around help and see not on start 'XX, -- about there you growth. to we year, to see meeting in or just should expected turn not you demands? turnaround because better longer uncertainties, offerings? Any has drive 'XX. then growth insight going? been to this was noted like execution 'XX, And all product no more How just could the Meaning Okay. turn that Are deficient our product can these plan? meaningful

Jerry Hogge

on Jerry. is in one This that I'll first. jump Yeah.

all in the core we've on our the products and premised growth our is trends around calls. our prior taking think right, today earnings of market trends, So fundamentally products two long-term ideas, outlook, fundamental execution and to stability outlook and the new that I favorable strategic spoken in about better -- then

potential transaction specific as we've pressure that part revenue the out the HST that started and But every the paid. on we for talked we to just to product them about. We we're got, test converting going create remains it's very We be of of in when and need that's that plan, the simply that And in one and to we upon and area kind can the as healthy the of focused part products think going getting So the where fundamentally, to example, go. given there. enrollment ultimately, of we've differentiation. got their pipeline. And support blocks in market we for as revenue, as pipeline a the the sales a the pipeline set particular, in differentiated trajectory creating with executed haven't been the things triangulate we've marketing well think lag of then front capture products that and each and revenue growth market each deserve we're to getting and on our based slow support

product pipeline forecast see time, for build that. to in we allow the means and we'll that will others. We'll it So same the transaction evidence of business understand us better. terms of size what and up At the that

Operator

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

Jessica Tassan

however, nice And you, been James, with working briefly. it's

I'm interested just if the to Douglas first, worked know revised forecast. with on So you

Travis Dalton

coming So in. be Yeah. Doug will

it. take I'll Jim. Sorry,

we've working and Jim. with with Jerry yeah, closely, So primarily been

So business is meeting triangulating the teams. would Doug I FP&A meeting a expertise what knew holistically. our on think technical up product we than experience been at in with teams. so with We've with know setting and based we really more and reasonable finance on with views the doing, been something We've say, been we've We've with looking that organization. we been coming is and year. I've accounting, have those entering his market Doug up the which I and is fair worked previously, today,

on more hitting yields with time. our predictability over big I forecast and precision getting we've are think the and our and it all of one you is had, So challenges, today revenue

one is be and come more the that and how help and look for made, to so turn a primary what at timeframe. we've how validate focus but And Doug bookings that job is continue revenue predictable in in assumptions us revenue help we over us also to to

So kind we this under again of tenure call anyway. can avoid my having

with everything that with but we're I we're think to scrub Jim construct head done in on, and and this expect call confident I'm we the got are. what we taking that working today and this the numbers current possibly we the that's having is so it ]. And in we've closely can place Doug, [ Jerry's our which And are process issues frankly, from where transparent why being just where as

Jerry Hogge

Go sorry. I'm ahead.

Jessica Tassan

no, No, finish. please

Jerry Hogge

So the just diminished on that right? the that at Jim the that a yield subject said the looking yield question There of release, on potentially that is onetime core the some is to stabilizes a were there kind see. of So driven But reported of earlier, the a number volume are going is at in byline bit. is view a the to factors we business, we the it favorable There nature a the think trend. But mark X%, as quarter back volume sequential things yield, X% that trend the right? holistically, press and our question the consumption reverts is, basis. It is claims healthcare trend undeniable. We kind of our of upwards and of by growth. win long-term

as going the it acquisitions. acquired an what need and new rest the value you of can imagine on business that well just that recent or execution execution to we We we So as XXX%. is believe and it thesis the the is question, through stabilize, to and really we our those the the core if conviction that And that's monetize in-flight, then as does yield mentioned are products is there. we Travis that there products to have our because on that

Jessica Tassan

much notice time? And to has that, significant guess, of ask that number provide attrition, there are to Got it. kind on attrit engagement product? wanted the to customer of any how I at modular program-based that program a exit that could And just effectively particular I just

James Head

agreements, under commitment. There's volume there's Jessica, these minimums Yeah, like that. no anything or no

pretty to that's capability this, telling you But specific, in on a issue. not is the So scale client going this We it's just there's the with to why customer. good contractual basically do. which do reasons a is has -- to, strategically relationship of and tend to the happen is very future. and again, is to I good visibility it as we're something or that's something to one not get pointed And that choose every the going and try about

Jessica Tassan

the And or customer that it. be that on within that's the occurring one understand through drivers new the just just Can last volume then my offsetting helpful. growth would Is yield volume is help acquisition? the me customers you Got of is declines. occurring growth the

James Head

of same-store meaning volume book sales, much utilizing Yeah, -- that using more. yeah. employers same-store describe It's -- I as would make pretty sense, healthcare Does Jessica? it

Jessica Tassan

some a that of increased seeing both guess future? within cost growth Got it. population, driving that invoked of has [indiscernible]? particular number Yeah, you times year that anticipating has it's kind in guys or changed? is of number given the the of I MultiPlan in is engaged a if volume are the the and has And interventions And so, of

James Head

Yeah.

I little services. of think of bit new broad a a a it's are change think using I there's sudden, -- a consumers a in don't and it's out-of-network base. all that bunch massive

uplift you're there side, capacity. I as the seeing -- of largely in been a think demand fundamental is with hospitals, because there's

starting etcetera, basis list but over expectations then to which trend on of their just equation time, inflation, pushing I wash trying through. I bit seeing bill the seeing of think a overall And it's as masters So a always their also a are is renegotiate increase charge to throughput. price. contracts in part to and terms tangentially then healthcare forward inflation we're the which are don't little we're of hospitals, major think that charges up starting is

up. and it's is to always slower, similar see just the this physicians price board at side, on We but quarter. we're ], up. what tenant So little see etcetera, facility it's a the seeing very picked -- HCA And [ going across you volume bit

Operator

question next of Beard [ the from ] is of our And Jefferies. line David

Unknown Analyst

but I put revenue been the Thanks, on have Jim, finer the question. a and A thanks lot for time. to answered, team want just of mine point

you do it in or But full-blown a this You away little X% headwind, bit. the yield point, you kind enough level foresee I an attrition that attrition guidance. headwind? of in XXXX back on hit at in know X% of this stability get from giving stay to XXXX want to on light up thinking to we a or of and volume the about growth overcome how with positive kind to revenue headwind that outlook setting be see should

James Head

answer to it in maybe an -- isolated It's more piece.

going to I -- the story the don't think So feels yield to in settle. do XXXX. be yield volume is environment good. that's I The the going think

it's suggest that calling seen the any cautious a been signals haven't going get to little We We've that worse. upswing. always

quarter. nice base things our rearview seen in but trailing point equal, would and And in this of of I from last bulk say, also mirror kind so all even we've the the solid customer -- being growth

the just good trend solid so business. in exists there's And there that a

We also it's to than liked. help continue It's contributor on that whether are are a being BST, we'd HST us. these getting planting will slower or new big -- products. And the planted been seeds BST

which going I into is together. those to to that. overcome, XXXX, the get And then but things for we've algorithm trying ingredients like we're some what ingredient, ingredients And kind put we're here's headwind. of that's not do this say way the you the but of a had more is So that always we've think along for just one

the little And back it's that think kind for to more a shape half as bit have year early. too going we're next to and frankly, get year think I I of a lot better visibility this you. of early we into quite just

Operator

queue today. in everyone the us And will to Corporation call. no second quarter conclude time joined MultiPlan who earnings XXXX at you this with has questions this the further Thank

your disconnect lines. You may now

MultiPlan (MPLN) 1 Aug 242024 Q2 Earnings call transcript