MPLN - Earnings call transcript Q3 2024

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

Operator

Hello, and welcome to the MultiPlan Corporation Third Quarter 2024 Earnings Call. My name is Harry, and I will 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 Third XXXX Quarter Good to Call. Earnings morning, MultiPlan's

will Chief is Jerry and Officer, the today me Executive session. Hogge, available Q&A Travis Operating Officer. Joining Financial Dalton, Officer; for Chief Doug Chief be Garis,

be call Investor through at Relations The website the our accessed and of being webcast multiplan.com. is could section

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

Before a of reminders. we couple begin,

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

their non-GAAP can believe and and be earnings in results. also we deck. measures, An which slide underlying more investors of release of with several be a explanation found these non-GAAP in will referring complete to operating measures to reconciliation understanding We comparable press provide GAAP MultiPlan's measures the the supplemental

turn over our to Officer, call Dalton. like the that, I would Travis? to now With Chief Executive Travis

Travis Dalton

so gets we on on the of all to one the Americans, polls votes you this cherished Voting in cast they morning the day your most Thank election close. U.S. their good and the today as to of I Shawna, luck. out you, before rights important you call. everyone Thank for to Good time hope enjoy is

health networks, transformation The value of to the using like the data position industry built care to reduce to of drive company. third report by and on insights and seeing MultiPlan provide has transparency a changes decades the brief incorporates update through quarter year in I'd over and through that technology a unique out our increase journey and state products. clients this latter becoming are we our costs multiyear the Today, MultiPlan our help world-class on

see within from quarter guidance both morning, revenues range As this adjusted our you third earnings results our release our can and EBITDA. were for

logos During quarterly executed while record the $X.X key quarter, identified we closed some in with and MultiPlan. opportunities client new wins for X billion XXX savings, on potential reaching a achievement

with provider our to make client deepened product set, engagement & Revenue core Integrity products. and markets data We our progress such continue with Payment as products, new

we capital to Finally, of continue management proper of ensure our to operating manage discipline expenses outlook. with against allocation and

examples relationships, Of importance using to paramount since relationship first, a of new us market stronger our automate. and include: to A driving to couple XXXX. continuing add Plan, forged value we Sanford with to client Health is valued long-time technology penetration a

improvement project For our Sanford are sign systematically increase XXXX, automation accelerate results a Review Sanford, and to that IVR prescreen, also analyze. cases to will volume end-to-end initiative is clients. service claims which the up partner we implementing the Bill first for we for Itemized our identify will

Second, Association. partnership Health National we a the solidified alliance with Rural strategic

extend access see sites focus initiate is with to a costs, this price our identified reduced progressing into This on and to relationship pilot we MultiPlan NRHA, quickly, products great important greater market. greater we horizontally opportunity For X a care transparency. to and

viability and to We in are committed access rural America. care

tools a and internal automation as technology. using we to advanced company, technology continue drive Third,

and also benefits other capital for operating areas. in our our clients, creates in and investing invest reducing low. leverage been cost to time lag friction have and NSA keeping backlog products and drive us performance growth but benefits We faster to This

ensure Science maximum group refocused have Data we structure Decision to & value. a manager Additionally, the under general

We to for approach these from our products. the see plan go-to-market momentum are initial for excited as high-value develop wins very targeted a some positive we

and which by market consultants, positive and has and affordability care market and employers, we BenInsights, response providers covering transparency plans, are in broad using optimize health drives a analytics addressable employer value insights employees. benefit seeing to and we this product. results, applied company To costs own for reducing benefit both tool demonstrate design improving set the analytic with of for fundamental BenInsights, our material the positive and our to

of one always aren't clients. to our This capabilities of in bring is ROI-based that Hard discern we example care. to kind health immediate can where easy benefit

We sharing suite this on more our call. from be expect product notable to next sales

in Finally, last need our call core But detail MultiPlan savings and Doug and of line still out ongoing our focus elements do that will cost bottom laid our will today's through The path. we ring transformational that generating to enable update. is on his I efficiency on more.

great flow client clients, have core that bring strong cash enterprise We and good talent. products real and value,

and our capital growth product business seeking which to base capabilities also financial holistically to MultiPlan forward. extend new position further which and drive Our structure solid stable will we are foundation, provide profitable going a upon

We make all towards progress of company. long-term for we as vision our business build aspects continue the to across the

most tremendous that will a leader care more an the continuum. our over advantage of rigorous expertise, integrity and to on processes, disciplined We health importantly, value MultiPlan's market organization care firmly and health bring sustain embrace and data our built across strong decades strategic believe our our as as technology assets, time foundation agility and

Also, innovate For assured, our set. say we continue product clients, long-time I our to existing and will enhance thank rest you.

ones but product rigorous meant is to more This, total plans, current also addressable value-focused and a expansion natural strategic come. product Our expansion, discipline only clients' process a not organic increase and bundles around the with and pricing address market our provide our development of product lateral apply to to transformation will potential. along challenges opportunities

decade of will be on can accountability. future The affordability just and resources lever the more not the around insights that but key of of actionable on health to at reduce transformation costs focus of on purpose, is alignment only quality. and an focused that inflection transparency, with point, was more principles that last believe improve After data continue of a clarity on data as progress itself, interoperability. organize the address. and increase digitization I operating and The we technology focused care

providers. The challenges labor consumers of regulation, fingertips, Health than opaque the plan around but and increased are medical facing and are at tools demanding and care between higher less ever M&A care their few better The examples. quality, in consolidation pricing, cost These rural payment inflation, are transparency cost are skilled more increases, and employer provider data shortages, urban a health many. divergence automation. risk, rates operators

one insights will emerge challenges landscape, winners. of where to and technology uniquely Against these clarity that We or partners the more over bring that can we of ourselves have lies. the That's believe our purpose time. real answers positioned

to unique combine with our and transparency, data pulled insights positively have actionable impact technology that cost and We position quality.

a set order is In we of The resources. fully team talent. created clarity our have and to have aligned biggest realize we devoted of purpose, our resource

We focused with are emphasis mindset discipline sustainable of rigor reinforced on management growth, a urgency and focused on our to cultural in the on change processes. instill our

company, it problem center we our continue be able value-driven are listen, we to have Each we growth. of we when but by problem talent knows do. serve, those deliver I the all impressed solving. associates been and at comes we serving sell, will also to selling solve. the clients. attract. that's inside and to everything is We of we of And we They Thus, level how that our mantra the have

all potential they think see I the here.

& our our as our senior the our forward. our Growth Chief this and lead business. am CFO; skills our joining long-time of Sean team, diverse responsibilities solidified confident very recent Data point, and ability as experiences been Doug I Garis At has Decision Tiffani management set MultiPlan GM the and Crandall, Science leader, represents Misencik new the as of to team with it addition with of in Officer;

protect, teams want communications a on will stand contribute. teams also and to and Counsel, to our policy these added lobbying protect and robust promotion and work have Along ready affairs an and the leader voice company General these with to be corporate of touch matters. of We our have vigorously marketing, defend on. educate. alongside leaders later defend regulatory We effective thought government teams to endeavors and on to to we legal, all with aligned I

Doug market will these upgrading scalable to make the importantly, not the transformation the share are and expandable in of we to insights. and of embrace needs to human decade but This meet resources, the data on well product AI, in the our the some only technology our and his position actionable capabilities infrastructure more of also as our us Along more embarking recent comments. in upgrades with will solution analytics leaps of future. such

improve. I'm are. what are I steps record we have to times right you you said are taking your many confident that the that says

KPIs that our growth. progress is and driving These stack how the against years technology. signal and up in markets, This have we on model to will win new aggressively built. is talent existing on transformation competing towards the sustainable our focus Our over up of our acquisition products in that excellence, value couple model innovation the operational focus next of will results KPIs across and core, made

company the our allow align we I strategic potential the of comprehensive capital operational strategic, clarity, journey will execution which is call, framework our a goals to financial forward. fundamental a the forward. of and As and that we to resources, transformational meant going It mentioned Out company. called evaluation on financial MultiPlan XXXX, in is and effort, Vision focus drive business of and for road foundation alignment map created last have for KPIs. launched the our us a This

our market & the process like of full and and value accelerating products business and innovation includes: being potential, and by portfolio, existing Officer, diversifying Integrity; Networks, Science's Hogge, from revenue & product preserving revenue the Decision white achieving core Jerry through businesses expanding and led and X models. HST growth across space the Payment and Data acquisition; This Analytics, Chief new and the risk is Operating potential by enabled Revenue BenInsights our the

us incentives teams talent each and our Clearly and forward. products to financial go-to-market to our proper spur sales defining allow add needed associated plan growth organize the with our will with

me to government over corporate turn to Doug, affairs. let prepare on a provide quick I and our the As update call

and We decision around in these believe delivery. August drive our legal Verity environment, focus operate against product transparency. claims development out reduce us merit, The balance of and in encouraging continue the regulatory will on without are vigorous competitive similar an We care, defense in claims and support us. our costs to legal highly of bills was against we certainly a health service goals ongoing

on Capitol In costs no services election. impact addition, lawmakers we care increasing matter positive and to the on them Hill reducing the health transparency, engage to continue make and educate with openly of the and system we collaboratively the on will our by outcome

You'll more progress. hear this to as we continue about make

relationships client mistake, This great decades integrity, be and character we But for foundation. of of our values rapidly make and core this service. and new emergence. we team, to brand of to no modernized a go as on our The vision. sustainable in come on the built leader future. leadership more will our change was technology health MultiPlan and market forms data be evolution impacting and soon transforms insights care how will expands news There brand platform

to our I lower was the on reiterate third that end. albeit wanted quarter what expected, we

We run expect this and updated reflect similarly, guidance quarter ranges have hence, expectation. to provided to fourth

refine Vision year. processes in XXXX We new discipline the and our to we with fiscal our are working rigor enact as plan

impact to on While visibility half first we the expected more business now through into and have stabilization of the XXXX, eventual its financial results. occur outcome is

our presenting late year-end outlook call updated February. scheduled be will on We for XXXX earnings our

With to Doug. me it turn over that, let

Doug Garis

that morning, Travis, and and part to working a the closely and you, look forward had investor everyone. chance with Thank now to I'm I've be meeting community the fully to onboard. family delighted good MultiPlan of

to Before quarter I which, sharing observations start results, few X-month reviewing anniversary. is ironically, my by a third want today, off

had globally the exemplary. I've not team to recognized firms, MultiPlan the and only some privilege of and work First, comparable but the here preeminent is with largest,

inclusion and passion, here work have balance enrich do recent a elite good an expertise, to to our willing Net our and Everyone the the up by year shows talent, demonstrated and a clients. We growth. engaged our knowledge, deep operational industry Work required to we've of importantly, earned Great from is Place Score third culture consecutive This that as technology clients. and our serve Promoter and for

one nonrepeating impact business core and has and business decline client COVID-related Second, went our of from our since the we public. durable. grown core consistently is a strong positive volumes, Outside specific

continue potential Our to services, products for within network Integrity the analytics, evidenced our as Revenue value by & Payment continued savings of deliver. strength significant the yield we clients, identified

to the lowers we We and health for an patients. XXX-plus to are care partner deliver uncover indispensable clients, overall the our cost value

Third, our against I'm progress we share going to some of are the making strategy.

structure, can next follows: platforms; areas build technology will a plan suggest as We we to modernize which to magnitude of initial our efficiencies half The modernize and cost findings approach assessment Vision our roughly XXXX. XX% of to in the XXXX cost multi-pronged our we live go on are cloud-native a of to we have to data an address our several embarking cost first be plan. deploy order products; to of as deliver XX% expected base in modern is years foundry; the system, position completed of of and focus and our and over of improve part data cloud-based our our ERP the to

added Chief our segments we We general across channels. structure. Next, P&L recently our instituted and we have organized have model manager our direct sales with to And Officer fuel growth Growth go-to-market a accountability. streamlined a business

to XX% focused data to We centers excellence by locations also on footprint technology, facility of plan success. roughly client physical flagship operations, science products, and reduce create in our

have efficiency We robust our already implemented benefit programs to example share also briefly yield mentioned great can results. spend. a tangible I on begun that Travis have that

benefit our XX% while we current of our captured annually, of from hard our we savings, benefits our our $X by the our to cost process, for & Data reducing per Decision of own are benefit designed spend quality employee able both the lower of improving ran our benefits associates. plan part and million business As we insights and And Science products nearly plan planning design. annual against

quality and frequent solutions, buyer real CFO frankly without technology enterprise a reducing delivering cash As a is savings incredible. of

that is a laser-focused areas more have in have But We scoring I appropriate. share this assured, team of on many opportunity additional to when arena. plan we points formally that rest

This strong has launch assembled, why to ample upon opportunistically the we MultiPlan now our foundation our XXXX is building extend to realizing leadership capital now our plan. our and lenders strategy. new us and actively give to ingredients team Finally, required our the with are structure we've for multiyear runway talking Vision

results. on Now to moving third quarter

As shown and quarter. supplemental of million on QX QX X.X% X.X% Page prior were deck, of from down of approximately revenues down from X the XXXX $XXX.X

for at low the strong came with X of by offset the Our in revenues decline range quarter, a claims end of the guidance client. volumes

X.X% from the prior was Excluding revenue impact of year. this client, up

declined services quarter by deck. were supplemental to were X and shown prior X.X% X.X% third Analytics-based Turning XX.X% year as the the the X.X% from by revenue revenue sequentially. and up quarter Page quarter line, sequentially. of from Network-based revenues declined year prior down

revenues and Integrity Revenue X.X% from & year X.X% Payment prior Our down decreased were quarter sequentially.

During the potential identified continued growth savings. or we solid to third experience quarter,

$X.X billion decreased potential the and to on identified for MultiPlan. and billed and total new core our $X were XX% increased Page X% prior identified quarter versus shown billed As the increased savings records sequentially quarter, increased prior segment, Commercial sequentially charges Plans sequentially X% of supplemental quarter versus X% billion, and XX% year year Health the X% deck, $XX.X third charges savings to In potential X sequentially billion. to quarterly

As side percentage side. charges both on particular facility inpatient sequentially physicians and from to outpatient Page our model, sequentially of in shown and physician the and hospital utilization $X.X on were billed to the in core With savings surgery X.X% facilities on the respect revenue savings increased with in and up and year-over-year, potential strength approximately hospital environment, identified billion. X year-over-year X.X%

sequential a identified which a offset data lag. our the yield. volumes decline for savings our revenues increase balance, traded was revenue in or as slightly claims On hospitals from more publicly our remains revenue than suggests typical volumes percent in by of environment forward given in utilization few a is positive healthy, The

about the Page basis points PSAV deck, on models. our sequentially of and for both declined revenue includes X shown supplemental As overall yield which XX the business, revenue PEPM

impact had of offset of percentage price core is which million about up our yields our million changes approximately revenue quarter, contract in was Notably, basis made decline million of of our was attributed revenue, $X the by the revenue. about none with points revenue a the $X.X In model, our This yield which approximately our approximately to for resulting any shifts in quarter. clients. increase, savings fell of mix of volume-driven PSAV $X.X on X XX% of and

Turning over expenses. to

offset million, professional were increasing adjusted and versus prior quarter related primarily personnel quarter fees expenses year decreasing Third due was $X $X.X EBITDA sequentially. in and software expenses by in compensation. from $XX.X to The in and decrease year to increases was million year-over-year increases partially million development capitalized increases prior

fees costs, EBITDA of million was and to and development in million a million access in primarily prior X% software from sequential the in increase and bill legal $X in the primarily 'XX. down capitalized and million which due QX $XXX.X from was expenses review $XXX.X the in adjusted fees in decrease timing-related. was increases For Adjusted $XXX.X X.X% quarter down EBITDA year quarter, comparison, the

quarter. EBITDA Our quarter points down was came the our prior managing But slightly our XX.X% range, from the our our year. at cost to guidance great with a job same of operating and in margin low of in will QX great we've prior year-over-year basis comps We the time business, enjoy XX.X% margin the because was due cost actually most adjusted and team experienced and XXX is lower XX.X%, compression from down end say, base revenues. doing above down I the in leverage is from the

to on Moving our outlook.

between year our our of with revenue we're supplemental million adjusted the narrowing million, full $XXX of core is million EBITDA We're declines. million of range rate guide between reasonable more reflective revenue million run a the our As versus lockstep $XXX to range prior guide and also $XXX business. $XXX This in of to guide tightening million. deck, Page $XXX to shown X our $XXX on and

that recent management confident remainder our the cost of are us and of efficiencies year. earnings help margin program for and power our associated plan XXXX with We will the prudent launch Vision the keep

As total took value, revisions the you including This of to and was we our adjustment other are roughly a carrying impairment million goodwill approximately $XXX.X And conducted accordingly, we conditions, to earnings our test price, noncash for and which million forecast than a current the various aware rates, market GAAP indefinite-lived year-to-date an estimated share value on results. from GAAP the charges our third the press of recorded less incorporates factors. $X.X test, impairment million fair $X.X charge earnings. release, market quarter, we Based this of impairment to assets. brings discount

on Turning allocation. and capital to balance the sheet

net the provided while the cash Our our quarter provided net -- was for free generated operating was third by $XX.X cash flow activities million. XXXX $XX.X of million

a generation of the third higher debt, any to As the of interest year our flow due tax be in to tends reminder, quarter our timing cash first and and payments.

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

the priorities capital long-term Our same. remain

on Our remains in focus growth organic business and service. we highest drive to investing have immediate the priority and in assets the

should You to our our & Data and support Science core products to Decision investments critical expect making continue including and our us HST platform, businesses.

will cash remaining primarily reduction. the and debt leverage paydown we focus flows, on With

Finally, to capital as announced, extend we're lenders and our working we structure. previously our our with XXXX advisers

discussed the for transformation we ample our extend strategy to the morning. team and to against execute this realize opportunistically time provide leadership to simple: is focus Our new maturities our

reminder, our until not funded October. XXXX first a maturity debt in As is

the topic us refrain productive the end extension. having details with debt comments, inquiring are And you our cannot over in my that ask We prepared to kindly session. I'll while brings this active to Q&A of we during that, Travis it discuss that me back I finish any about talks, And about from turn and but are we out. discussions, to

Travis Dalton

Thanks, it. Doug. Appreciate

strategy focus As new a costs, I clear. transform I with throughout, structure to to actions capital clear on internal progress growth with look the said a company's the to to a identity win forward XXXX to corporate becoming a and and in the months external our quarters. with with go is path to and aspirations, out and in MultiPlan the taking brand our fit thoughtful sharing you clear emergence market. add our coming an progression with We're

open and Operator, the would for you Jerry myself? for questions Doug, Thanks. call kindly

Operator

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

Joshua Raskin

end, guess, seem X doesn't last to sort you what first of on guess, The guidance incremental It like the X seeing what end. I the relative to were of or environment. months months ago? the couple I start just sort towards Maybe moving a my so lower one, volume changes, certainly were with. the

Doug Garis

are speaking Josh, our you specifically revenue? to

Joshua Raskin

with in kind Revenue EBITDA revenue. of just Yes. that flows know I --

about So yes, of the a talk lower revenue. the bit could little if towards you Why guidance? end

Doug Garis

Yes.

mentioned, for our think, volume quarter having sign, I certainly our chance and So range, but the an We positive coming encouraging our potential tightened think, we guide to business. identified It's are in guide the is we as I within certainly the savings. actually range. fell narrowed and and assess

order with I the of some I we business. And rate programs. recently well in will enacted efficiency think, robust pretty we're the current say, primarily, run

about changed So say, has pretty would we maintain of to over nothing dynamics EBITDA margin feel the traction. X ability the business. about keep months, I last and fundamentally and the our good

run with for business. range in our tightening we're we're think the the year our coalesce to rate I seeing

Joshua Raskin

about helpful. headwind talked And then revenues to specific a specifically last That's Okay. X% from a customer. you quarter,

then that contracted what client point? other this guess, of this your actually And revenues case? is any at I than we percentage that the off And still So should are year Or year? for know faster next expected? maybe running is headwinds about XXXX that customer

Doug Garis

we quarter until February customer up the in out But strategic the were in guidance X% if I onetime last not give in year-over-year. Well, the impacted or of headwind, talked substance X And as expect revenues to that impact. And was our said it -- quarter think to X% prepared quarter. first, our update. roughly business the our decision most that last answer actually to certainly we strip Yes. $XX maybe we roughly the our question we're you a a more roughly going this forward-looking remarks, about million

certainly first of that the half is So 'XX. case for the

last the We it's itself strategic discussion Our certainly a of downtick decision, don't in QX. an our still uptick client financials remains see quarter a around or phase true. the but in

Joshua Raskin

Okay.

So at obviously, no details this and the in look time, at out new full February? client call to nothing headwinds,

Doug Garis

Correct, correct. We've rate no last contract had material customer the months. or X changes over

Travis Dalton

add And a context. mean, doing been the I'll I list. client I've this have Travis, This just Josh. our we advisory little meeting out And is client suite.

We have well over XXX clients that we'll be with individually.

in the value talking be we programs to containment think, involved actively and drive I them, and we're expect over than that affordability, more them other cost to with to ever real time. important

time. And be with well and confident we're at them forward. we're wind to to we at price-to-value ratio business the I those that positioned also the over clients, So think, going right our continue back, with we're think do will

we're our so bring as client in the And confident progress. environment value we and that we

Operator

with Grosslight be Our Daniel of the line today from will next Citigroup. question

Daniel Grosslight

row rate start bit see do XXXX the is the the continued heavy take up at on take now which your the lead quarter MultiPlan. normal, degradation. first kind we'll new Is of had this full and to this rate of a rates, will rate see in we little and quarters We've a beyond, 'XX to mix to really should degradation, of Doug, lifting? Or shift, take expansion? rate Congrats, of XX savings in where take this to nadir it's and

Doug Garis

from grown our look half or impact certainly, bit at client our highlighted different and I'll onetime X business, tailwind XX that we we look fact, a over COVID-associated first business, pretty you you exclude little remarks, the Daniel, that and, volumes, the if prepared the at quarters think, in In core had would has so the if it. so, take last the consistently. I

very you're impact in And client like activity X this full QX year for changed or you or And go-to-market the but guidance think, planning run think I where business nothing seeing of that has is excluding we're nadir, is range, XXXX. tell base. any of of what at time, us washing the that the certainly with feels a at you've client we're sales new feels our yield for certain certainly, rate our the it through. degradation tighten can't our implied for I seen and I contract reasonable the

Daniel Grosslight

Got it.

Okay.

on companies mostly IV leading And it procedures, to was commented some quarter have in the shortages delays due Hurricane elective to fourth because in Helene.

business. starting you're curious your some So in delays to see I'm of those if

You mentioned strong, are curious IV into shortages those the first what guys for some that but if guys quarter is of portends always that utilization maybe business, that bleeding you of for you have. your that lag given and 'XX

Doug Garis

Yes.

that. So maybe start let me

our watching some seen play goes things disruptions closing that to And month October. respect that is of definitely quarter think like the would weather without know we IV the the for at us. to seen of in disrupted business this if disruptions substantive major this haven't to We're the with for that no right? But certainly, our our don't that business So in enough seasonality are I be other flow specifics, don't But seasonality natural of us events, business I that we've QX, our come anything off think to there's towards narrow time. of saying we range. guide But and at the year, of expected inject the we flow claims additional point of that's through. QX to the process presently. a end the reason or stronger typically shortage our due

Daniel Grosslight

that guys of qualitatively just me. and of some details changes understand not your making. structure. the 'XX Vision you Got I it. comment if you're one And last to terms on operational appreciate you in and the how are 'XX guiding wondering can on you're specifically And really I about XXXX for thinking But cost in growth now.

than Day, it longer there single And about where you the the And can to in high get that these expansion terms ago, opportunities, of the kind guess, how I you're of longer-term been change business was core digits? from X.X can more of think -- grow thinking years more growth? perspective, digits any versus mid-single you back with Investor business now other then some the then in a has

Travis Dalton

Yes, this Travis. is

So our Thanks question. I asking XXXX. the for about Plan appreciate

a Since the discussed. we've evaluation on got of couple working of here, So things. businesses I that been I actively

strengths Looking are and spend on. core what time at, should less and what our values things that frankly, are maybe the we

at Vision path products. and So our for the creating a of about really looking we is new well what do some XXXX

So actively going And Data make mid analytics, investments mapping HST in more capability. continue down integrity. We're Science focus the & the look market resources that. clear talent to then business against relates at with expanding it go-to-market on and product to payment we'll to we're and sales as in that investments Decision the networks, going the really to

So the about growth align which think to sustainable at operating basically that allocate mechanism, put point and over for time forward. of sales a the that, to it. We inside whole company length, against plan vision resources great capital and division, the talked us will we as go the was this clear I've yield

was greater guys. -- premise we're XXXX. much detail to been that's you that the looking that with of So the forward And kind discussing behind the in

of growth and We continue process. planning that over off our to prospects maintain potential time

Doug Garis

cost then on add this side. and Yes, might is the Doug. I

spend care at think just care at Day. of natural If I that seems that Investor and have it, a our inflation at sail right, a is health macro would health the you take it back, level, 'XX look said we the and

our of focused we bringing And magnitude partnered I I we would in a base. of tech and XX% remarks, where I address that to certainly prepared to data will program. And and inspection think capital our bringing in -- and of order if mentioned to allocation between leadership matter team our and Officer, thoughtful and our priorities, is that's gives greater in focused we that an us on that our cost is team put parlay against you business. our that a Operating new in the And think Jerry, Chief XX% talked our with where executive invest very relate the much things leadership kind my really say, line, that clarity, modernization. about drive can paradigm much needle. And alignment the and to flexibility I

details put with more our And capital to just robust back faster new and year. then to efficiencies, will and management last business. And I drive and better strategy, next be to think that as smarter. accountability we've XX that which progress a we way really core the business have our is still help the accountability we'll significant we've in some days assembled, and we're finally, then segmentation objective. managers excited making We and really about something Having a actively going in invest And think fidelity are operational the share better, business. us business place in of do general to it's it's is just business, P&L run ultimately muscle team the value to not capture the efficiency good allocation that leadership there, we primary a and programs with

Operator

from Our the next question today will Tassan be with Sandler. line Jessica Piper of

Jessica Tassan

issue on that's just hoping directional that was of and that opposed seeing revenue I hoping risk? customer. attrition consider to? led us in could could just you you're And I major know you just should anomaly circumstances you that kind remind to the ongoing secondarily, mix the let large year-to-date, any to by just as type, that the an of customer of why was or then us if referring the differences we were us kind yields payer remind

Doug Garis

take You want the to last first? one

Travis Dalton

Yes.

is time. pretty it covered Travis. think the Yes, last questions. that This for we thoroughly thanks I So

that. a by embarking As in that a -- strategic taking capabilities we decision that's lot a reminder, view a single frankly, as on client of

that clear clients. time all not we X were of thought was last And we our so very client, that

in believe believe also we're over time clients clearly strategy But and on with continue discussions our very continue is the to value beneficial We with we them. we that that that to bring to them.

our are So terms do shape way, sales new we more of that with. in new other than new We'll existing innovation we 'XX, into or in able selling seeing be a -- go we accounts of no form, pleased which we're and products both quantify when into clients. in anything clearly but progression, single our issue, and client also kind as to our client

I that. we've than that but And -- quickly. quarter about what more our would clear that's kind happens our that. to have a extent we thought, little so that say may on It bit forecast does been And the some of about impact more that, of

from other last one just the also thing say I'd question.

drive growth. things most are to organic topic One of that the we important product on is this able entire

priced really continuously value got buy the value we bring of product to it, capabilities have from or that And can innovations, for so and clients when been making we've see and working strategy, and we since I landscape cycle like you drive they it's gave I new here, hard, that sure life to and they quickly IVR Sanford. Regardless the you. example

over And make is, strategy stuff point view clients us, from what winning the buy aggressively. value we at do. is have for to is continue to that's my sell it a to so demonstrate and think intend one price and our it that to make right time. who But to to And strategy and great I our we

Doug Garis

is Great. this And then Jessica, maybe, Doug.

would I bring leadership the volume job accordingly, a haven't and and price, pricing done And maybe on say mix. So refreshed great accounting SG&A to particularly the a team leadership new in mix of question, we finance finance actually leader. leadership, and explaining commercial I've

now far mix mix. But I rate calculations in kind accentuated expect around out, explanations actually the price can the And appears our that like the primarily customer for impact and in is decline you more line you disclosures yield seen strip have to again, quarters. and that than volume we've degradation of several the last seen impact. by future mix and we've think consistently us rate negative yield that our muted the on color large versus better impact much the it being is mix X things variance for impact the for around due So and is if and that our to and,

Jessica Tassan

And just, of Got resolved can recently Okay. then on my is do then I status question will litigation? final update give pending and it. that. an us all the you

Travis Dalton

this Travis. Happy Yes, to. is

opportunity take out so I'm the that. appreciate get to to good there, our I question. It's for message So me going a

just provider the service. been of Hill and history not what saying across benefits employees. otherwise we we've and What and We do have that employers is -- payer the and litigation but long the media

cost a -- we of of cost, balance and high think reduced we the certain lot of bills, particularly the areas I data on And increased that out-of-network. transparency. there's

administrative supportive transparency very not highly in NSA there. a of a of churn. in the and regulatory competitive the We're we're So We're environment environment. and out lot

So there's mentioned, us. all and that that said, we're vigorously we that defending positive cases and vertical ourselves. think similar but with for right There's been case patterns also fact been the industries are other I Verity

doing that out best We've think this. to long phenomenal. not a process. District could possibly environment, And surprised Illinois. they're play business into the class going have, been We're centralized care. The action, cases, Northern by defense highly have a regulated the we and legal part of direct we're got health have so we us It's the with the that been and time, in of in we're

And to so likely time we we're we're working that's where in our frame. actively motion and on to intend And dismiss that, the mid-January file at.

Next.

Operator

question of will from Madison JPMorgan. Our be next with the Aron line

Madison Aron

that it's issues? until contract to or jumping clarified onetime -- comfort net round think you the classified onetime level apologize you or yields, Do as take think impact where negotiations? terms as what's next your you But around today? that onetime do there's your least some in calls. of visibility for rate of you to rate, the still the think I take at Do around the stabilizing? Or these adjust as of for revenue you is headwinds

Doug Garis

Yes.

fair say when yield. do negative would the onetime positive cetera. very the I to relative from say, has it's half think the we both quarter-to-quarter, especially that run through a of hard I and the the to nadir look of I et now Daniel's there I reiterate, to But business is happen of play that, our right point, quarters rate would that at now plus reasonable mind metric. But a in good first it, think, played stabilization, X against think to a the our year. we you of basis the impacts, given yield, is keep directional But base to that will existing say yield is a issue, I our couple set the and so customer and points customer through perhaps. minus couple client business, or current think need contract things first of on But it's

that to has I say think our yield it's fair stabilized.

Madison Aron

from would what the on XXXX, 'XX? standpoint breakup of and expense And you the XXXX? love Is to we better an think 'XX, CapEx should investments it going to just earlier understand manager behind be heavy the And Vision see the ERP made the in comments Okay. then should between new system, how about mix. model, about general given Vision we the standpoint, some

Doug Garis

Yes.

walk, business remarks going I and front, most data we focusing been reiterating prepared including prepared for forward. And robust million going on on ran very mentioned the certainly things for savings do. product we business to that yield ERP, our revenue, that eventually we our our that technology which will efficiencies pretty very will detailed substantive of think So both $X of segmentation in that and fund own and But in on investment we we then cost XX% modernization, capital a and the And the a and detail can base, ourselves, that savings. that's we're and focus has and in XX% why provide business remarks drive to my and XXXX. we on our we including address expenses can need delivered confident

with further our with specific capital our to and cost focus inspection and business focus on very we're just optimize So leadership growing our primarily the team, partnership structure organically. driving to structure

very And our maintain, addressing to Vision XXXX and not position change going means to forward. our in cost mission as being cost going think we circumspect on very what there's money a be material invest so margins base I I our and strong think, we embark our on that

Jerry Hogge

is Hogge. This Jerry, Jerry Yes.

our So But enable that marketing money, drive Vision into and continue a the plan. 'XX where we and get as -- on to to operating 'XX investments what you put in the growth sufficient we as our XXXX to look we greater sharpen economize business. on and the efficiencies from dovetail team, the return we're should just team, Data stepped sales we those -- at to up looking investment forth, of Doug said, kind right, Science we team the our so

Operator

[Operator the Joshua be Kramer Instructions] next of our will line CreditSights. And from question with

Joshua Kramer

Doug, what spending lawsuit approximately is run the each have or you very question rate month, someone My Do on any then estimate either updates year? you, about quarter or in I'll each each brief let the antitrust on you're ask, antitrust or and lawsuit. fees, for professional else

Doug Garis

Yes. Josh, the thanks is This for question. Doug.

against repeat. we to we're onetime some going don't So exact give that, I certainly, would as value. because, come hopefully, environment, up, I on -- don't specifically. the But current structure. resolve, would us you give certainly, as that, within wouldn't manage we costs I core But dollar costs team, the we say onetime to these have will with details to an any and issues leadership would specifics would invest. it money manage not our think a the onetime costs that not been I presented as appropriate But I has say value share we've that be cost think able to dollar

Travis Dalton

to point so we've Doug's corporate not function, So legal the to across To we've our team, yes. and message, think because add -- affairs I government been March do -- our had inside would I'll affairs. And across otherwise forward. right? a it's current and just wrapper Yes. our point I been actively current of team, that. margin around We projections company of events, X just important. I affairs to interesting profile how Yes, series add sure communications to X. just but robustly that other all started corporate making we that areas the of we're and manage doing how that the also our able we adding

certain time. a continue And call, to those appropriately. stepped we changes, over already that you And to areas that we've we very to we manage do that it but know, certainly the would let confident continue For we up degree. can think can if we're

company, we need to forward we as public do you. As Thank go a that.

Operator

the us will Thank Call. Earnings XXXX Quarter conclude no you. Third Corporation who further MultiPlan line, Thank on able to And is everyone with join today. questions you to the this

You now may disconnect lines. your

MultiPlan (MPLN) 5 Nov 242024 Q3 Earnings call transcript