MRAI - Earnings call transcript Q1 2022

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Operator

Good morning and welcome to the Marpai's First Quarter 2022 Financial Results Conference Call. All participants will be in a listen only mode. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Marpai's CFO, Yoram Bibring. ahead go Please

Yoram Bibring

Bibring. everyone With Welcome Chief First of Officer, Quarter Officer, Thanks, on to the Call. Yoram Financial Chief me Gonzalez; Marpai's call XXXX Edmundo operator. and our today Executive are

there we'll and Before turning the evaluating be believe that certain for over can these to Marpai's we most the performance. financial that GAAP important the the be relationship our non-GAAP the note measures between on Edmundo. non-GAAP are press discussing posted Please is Also, are on as please call reconciliation to certain website. that defined call. subject expressed measures when and Details comparable found on measures other to during release Such could Reform made statements Private will those or the implied XXXX. this Litigation risks, the Marpai Securities uncertainties call note of that that actual results by Act differ factors looking statements be cause from looking forward materially this Of statements forward on

additional which Marpai’s For filings all call will to to SEC, the in Gonzalez. statements Edmundo marpaihealth.com. the with and cautionary of press turn our release, available with our that, our at over And I please Edmundo? CEO, are information, refer

Edmundo Gonzalez

Good everyone. our Simon. be here thank QX joining you to XXXX for It's you, Thank morning, review a And us. pleasure to results.

technology is Let me a spend call first the this some as summarizing for you. our know a is company. minute I of Marpai strategy

the employers using power to change by to are We offered technology health employees. fundamentally the of their plan

to employees, their the have chosen We health buy companies care the health These manage plans the that care local self-insured self-insure on insurance but and expenses. government traditional are across agencies their to Our rather country. employers for their health all clients behalf. not are

out that Lutz member health leading Google. to glad early next to that as they but them On clients, employees group ever-rising as over also in of product by you on our mission Lutz pushing possible Finger, out to tech costly the we is years. dollars. value force on hired to that I'm We care had two up in and of large technology. making critical the charge events course, employers do And mission for getting I Lutz control the costs. recently and product was our our last the products a This strategy to of people, help our only the of this care who on with very our the care. members these proving get is shared And predicting their them possible. best reach is is forward We happen. and at focus centers be get not of get Our president five self-insured few a members, sure then the call, before we setting strategy ways. in report best

First, we want sure benefit. identify members empirically our for can what make works to we

health match care, members healthcare I are, only understand will which you want positioned care are the members we less majority why than not what who plans members. willing can to XX% understand early. them lives. strive best work we to we a believe care uniquely are quality to is And health our know to remind by we be the change and chose drive costs controlling providing Second, in access future of would these that in but to payer. to to those This improves driven to that they a engage. We programs for often costs high we while best become quality who of further

pharmacy benefit mar-pay his products we launching will a AI glad I'm is shall future, which space. powered report to designing team to are soon manager Lutz our addition be the the be In that leader that and app. by for in This

opportunity What to members to wallet of them and fully is value of the be also with to here some groups. that our our and employer drugs Often, strive transparency mean to We our bring approximately Roughly share cases, expand goal the real all for to this that we Pharma. Marpai? does due of in can Big terms our them. healthcare we month of Our speaking, cost means our not groups, additional drug fees, It benefit no to groups. employer means showing opens for of fees, transparent employee spending. the per from it core sharing which employer rebates share of in on is our bring. are the savings only the in like there This them, but rebates also some providing accounted by drugs XX% per admin additional to

of tremendous and drugs costs, these quality patient We a for for our share programs, by to to who also clients bring employers. see opportunities cost assistance the access members of to lower to importation more members, high our programs, which dramatically treatments self-insured course, could and

drug of mined perhaps intend most members. and data, can our insights many are Lastly, to importantly, use we in which for that there be the benefit

to in journey transforming does the last a XXXX, paying the of like past, industry's than claim our own continues what we to administering how cut We average more healthcare beating path We're and aim this of the adjudicating by my tech able the looks medical claims. half. of shared deployed payer reviewing, correctly. is I is with be on when quarters significantly This cost. and our basics continue that that were you a cost during continuing

marketing. to on Moving and sales

requests this building care in be in strive America. of to We two in health X. biggest other begins commercial time and I in X, brokers proposals. terms the with The in January we that is did invested XXXX. flow receiving self-insured for X, fall. all January extends now With sales switch thirds into being will September RFPs for I July in you largest share cycle level and and that the to earnest year, groups last our have relationships what the of We approximately on RFP money will plans. remind of with in and and tend the X plans October dates you

second broker season. month largest and producers and the next together care in to made very, the very have health We set XXXX hopefully senior top investments Our brokers we've make bring annual up believe productive continue will from executives selling America. retreat for us fruitful and

QX, -- you QX X.X% Moving let on developments, to of grew But provide versus latest XXXX. we will the quarter the I and the with in details. your

of $X.X QX Our revenue XXXX. reached million in

During customer under the XX,XXX in employee administered decreased of large due to -- XXXX. health name net the number company's plans covered reduction of to will in to is our employees B. part customers we due This first one XX,XXX the at which large lives Customer quarter, the loss large end of the the versus

an do their departing alternative in loss network, fact As increase Customer despite the we the the price as B In despite clients. The a work revenue customer, for by case to client this clients. QX, they than B very client, as Customer with. claims as run is a in not of partner our happy benefits payments driven were continental out higher related well legacy that several network largely

as well that very We sure they are as satisfied. serving working are hard we clients that highly make to are and

At management of to continue low ensure executing we're day, revamped end mission. is less. and leadership. that ramped cost way healthier new account to under best the striving have churn our that the We groups That's entire the for. is We what the function believe

it turn through me will the let who results. Yoram? Now Yoram, over to go QX financial

Yoram Bibring

everyone. good Thank you, and morning, Edmundo,

any to zero. comparative the April all First, reason prior to benefits. which with revenues, acquired first contends our XXXX is X, of not remind number quarter I have us did revenue want the when we for that the is XXXX, Marpai

first XXXX were million fourth million third approximately of $X.X Our revenues of million the compared to the and quarter $X.X approximately revenues quarter for for XXXX. of in of the XXXX, $X.X quarter

second agreements on guiding And we're our annual of XXXX. sign XXX in are number with based is our business declining their business, said, of Edmundo revenues customers the our typically that explained a lumpy Marpai As employees. quarter

the the always during revenues the case, as customer usually we remain long of As not which number remain derive year, this stable. the stable also employees from monthly is

deal, typically new to ones inflationary seek self-insured TPA paying we selection cost costs keep make care, for fully increase ongoing will fees funded them of claims the their inherent market make environment an usually means customers decision he current of rely to promote interest as they're tends stay to vendor vendor their or insurance that in our a have have TPA current plans you see companies reasonable the that like on in health to to to the your they check. increase case brokers health try or insurance pre their plans, their increased they show the ensure best This the insurance or they're cost simply costs with manage. also the to assuming in bids the or alternatives employees to and For check to getting wants insurance health for TPA most customers possible TPAs their the which brokers company, companies which contract, of from of Because or vendors, multiple of to assist in company. The self-insure. multiple means seeking seeking the the

lose lowball that claims only prepared the to low TPAs high excellent quality because can and here Sometimes has customer a sees. TPAs customer their

discount B situation fees and in provider happened win their be is a a what like to to as sometimes customer. Customer network And customer prepared the that

and TPA, even a a the can term the For may insurance be broker the straightforward. provider the the short which employer, choose not can for health less make the right savings, this who All may the vendors to it customer, or decision And complex other these changing perspective. influence decision longer-term elements customer decision from or promote of one. meaning is

This the a much Another spread and as renewal X, element plans of is with one only and strategy lot tend This bear company's provide the on More not the B. the July prices part contracts key We the market the to to the excellent the in like insulated evenly year. added throughout year. that grow technology we're from marketing just future. new long September of believe services annual and just other lumpiness dynamics is profitable and But of that X, not in successful term, than be business January XX% course value will towards us at TPO lesser competitive bumpy that with X. churn. efforts service reducing our means fruit necks, experienced into we advanced driven by change dates X, help extent so the including end of a the grow this Customer winning Martinez, revenue our we will October

include not expenses. of first benefit the their do our by our to while the quarter to expenses are our comparable party revenues will our the claims, of QX XXXX not expenses costs expenses to customer and quarter amount as sell on resell adjudicating of processing quarter ‘XX third expenses. the we continue ignoring fourth therefore vendors charged for to first and expenses, I as Moving services Cost ‘XX include be comparing ‘XX to cost and of we that customers. they service

revenue the quarter reflects of XXXX. approximately Our fourth to impact million for XX% from Profit our cost Gross Depreciation new assurance customers compared Depreciation QX of for profit. was XX% Amortization not Amortization of This quarter. revenues $X.X gross unchanged decline including $X.X impact are fourth excluding the of the million revenues customers of of and on or approximately the

and approximately various a first $X.X amortization quarter. the the the the were our to loss $XXX,XXX million for first was was quarter. approximately for quarter the fourth and operating and of by loss share quarter approximately per net quarter fourth quarter to And per $X we as not first one-time public fourth due compared quarter. to or net for accruals $X.X $X.X incurred cost was decreased in that in the $X.XX the decreased compensation a $X.X quarter, to million compared Our million of to Operating $X.XX A decrease or which company. million loss due fourth was compared expenses, share, for million first expenses. marketing Approximately stock-based depreciation XXX,XXX decrease costs of sales including to XXX,XXX revenues,

$X Excluding stock-based XXXX. $X.X million depreciation and quarter EBIDA compensation of negative fourth amortization was a first expenses XXX,XXX quarter of to in approximately of compared the of a million Adjusted of for the and XXX,XXX. negative

open we XXXX our Moving the million. the to $X.X million on to we'll $X.X with Operator? revenues in be expect for And guidance, questions. of to range quarter that, second ‘XX call revenue

Edmundo Gonzalez

for much a joining. Thank you support Thank very We so and And much. appreciate your good your everyone have day. you interest.

Operator

Thank today's presentation. The conference you is for now attending concluded.

disconnect. now may You

Marpai (MRAI) 15 May 222022 Q1 Earnings call transcript