LFST - Earnings call 3 2023 | LifeStance Health Group, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the LifeStance Health Third Quarter 2023 Earnings Call. [Operator Instructions]I would now like to turn the conference over to Monica Prokocki, Vice President of Investor Relations. Please go ahead.

Monica Prokocki

welcome Health's and Earnings Quarter everyone, Call. Conference morning, to Third LifeStance XXXX Good Vice Investor President Prokocki, Monica I'm of Relations.

Officer.We Danish Joining investor.lifestance.com. me Bourdon, Chief and and Dave available the Both website, market the Executive Chief earnings opened Operating presentation Qureshi, this before today are our Chief Investor Ken Financial Relations Burdick, of issued release the are morning. Officer; on Officer; section

call management and addition, will appendix. the please provide earnings additional Burdick, In CEO differ their are directly measures forward-looking believe be of results otherwise press following filings in comparison help this the investors press the in results call addition, to performance to Ken reconciliation a direct filings. model and turning this the over statements to performance. financial presentation release to time, for tables of to that replay the LifeStance. and all the year.At in to is remarks contain we note facilitate results non-GAAP GAAP A the report the about the forward-looking uncertainties noted prior statements Those please materially.In SEC most and which information past measures, call remarks, noted, conference actual that over to outlook, comparable Unless compared we the current factors, disclaimers period our comparable I'll turn included in using statements, Ken? for of prepared call.Before earnings attention other statements and available SEC with could as periodic your release business financial about our cause strategy. Today's risks, including involve included

Kenneth Burdick

operations that doing beginning for to thank fruit our The today. operationally invest the our both bear standardize foundation we've and you in joining financially. us Monica, fortify business, and Thanks, is been and to all work

a public I year exceeded for at these And time our raising our company, metrics. my as guidance met for for rises on our first all we across list. each themes we XXXX.As of the my in full quarter, young reflect the first to year or are top history This X expectations of key financial LifeStance, metrics

spent and after to mental the by payer issues outpatient in and and mental self-pay health to the that the their treatment. the as which unprecedented health of funding struck underinvested outpatient degree the I capacity ever years have side, am Despite anxiety having suicide, a payers for depression, building First, research are demand health too treatment individuals clinical Far mental have clinical for underinvest increasing on required still to continue XX headlines, for we mental and in health levels access country many resulted. care.

that founders and delivered health I a I by clinicians of my in-person first the the stronger mission to commitment LifeStance. with In-network credentials and experience.Third, organization. I've in had to Second, is employed continue feel both than the day be and the inspired model. care and throughout LifeStance mental and physical business broad at footprint of evident right ever professional every employees developed virtually since our impressed purpose our and incredibly connection to passion by Their conversation our dedication diverse

deal forefront to a the metrics. speaking and spend resolutely at financial patients of we about do. are of everything you We putting We clinicians with great committed time

business health this more physical with never affordable and health outpatient that be important operational clinicians' that you on we to performance, are accessible, exceptional. and assure lose initiatives to our to our recognize it's has so of individuals treated mental was make delivery we been our care founded, holistically.While I care to improve to sight However, the reason of are care patients focused continues unified

currently all Net our result, LifeStance patient X.X at average of for and out our XX, quality reflecting of searches reviews experience. is are the over patient our stars, X Google Score Promoter a centers As across

working we the to patient EHR, positive satisfaction, our our that patients' a mental taking impact also deliberate to on on and a to the and to model. payer addition health.I'd are we single we engagement now In clinical note steps aggregate like our outcomes more them that results and quantify selective towards are clinical share are

We in the this strategy. are still early of stages

on XX% of organization. with phase, in minimal hundreds You'll recall payer to Earlier the of our terminated on payer visit the impact administrative this that bottom to contracts volume year, first burden volume. or focused we so eliminating the reduce we contracts no on low the

number who also payer in in in strategy internal our reimbursement update payer and value which allow with begun who expanding to more more health and becoming commensurate only results streamline early focused midst aligning the are terms to an in LifeStance invest continue would are on provide.Before see evaluate access positive and of and We our of operate contracts rates our vision payer that appropriate to vision teams demanding for with we to closing, the shareholder actively assertive a mental lawsuit. phase We've in like to services. partners the are will on with efficiently.We care clinicians share to in-network the provide that our of I second

into in continued avoid alleged and management we've litigation. While to lawsuit, additional deny the decided expense settlement incurring enter we a expressly the legal from distraction claims to

to will our on commentary not Dave? the settlement focused that, investments business. necessary today, company on great raising able that us mental care.With of best in without to needs remain existing build to is our affordable ability behind outlook. matter and in accessible building fund turn putting make with our capacity one will provide Dave over be we performance health greatest addresses of and it that our our additional core a patients impair business country will for and I the to We believe ensure caring mission financial financial the of this a We and the and to this capital, this interest will that

David Bourdon

year-over-year. a financial quarter, we the of third performance. driven operational performance This pleased million, achieved was Thanks, primarily XX% increased Ken, with in $XXX Ken. team's with outperformance revenue robust results top I'm line Like representing visit of the In our the solid by and payer by visit productivity. growth driven of productivity better-than-expected clinician per X% increases. primarily season.Visit to increased $XXX, rate and X,XXX,XXX Total volumes higher year-over-year, revenue year-over-year XX% during driven modest increased higher of result count vacation volumes by primarily as

liquidity. of a For quarter in increased to through the Center with continue of million the approximately flow consistent was third comes driven $XX related to full to holding days. by XX negative with expectations days it flowed year, EBITDA XX Margin. paid This million cash XX% legal year-over-year. the digit costs free to shareholder million increased expected, claims In year-over-year.When to aligned increase and sequentially be from by million. on $XX quarter, the $XX rates expectations.Turning to intentionally outperformance the revenue in profitability, million payer $X our approximately DSO Center from our was primarily was of Margin low-single $XX Adjusted lawsuit.As

underpayment our rates from the to rework last anticipated on to payers excess hold quarter we DSO have the claims. call, updates announced new payers into We an hold several to negotiations. this in increase claims positive avoid claims decided and as due over large rate until As systems on to for loaded XXX,XXX their we chose

fourth and as October We significant claims. a quarter have improvement we already continue in the seen to expect in improve held DSO release the to meaningfully

cash shareholder put the of matter and I'll us this of Ken term DSO revolving a to with track on end debt year.We by settlement.First, to on million. that with by and cost the now exited facility.As $XX $XXX $XX At of are as had debt to entered the touched as million into was and from closer end distraction lawsuit the we the loan the debt delayed long-term million the now of quarter continued draw share impacts We is of $XX that insurance. and additional of of million recently avoid litigation QX, well capacity P&L million settlement earlier, the a the $XX million, levels see a of covered $XX QX third the behind cash litigation. settlement of and net we the

$XX we legal fourth the $XX we and is expect of million will million $XX terms pay to $X of $X the $X third the In approximately addition more of million a this expenses settlement, million million, for From million quarter, second quarter.In paid cash, $XX expenses LifeStance. in the in fourth settlement the $XX million to comprised million fees. third in expect million, for fees. which in million around expect In to outlay the to quarters, $XX million. in perspective, the legal total litigation. have P&L in in settlement, expense to plus this, approximately we and legal fees Prior quarter, related we $X resulted in QX and approximately legal the In approximately a incurred legal to $X be

million Finally, of in $XX will XXXX, we quarter settlement final the first payment. the responsible be for

growth We to narrowing revenue we at $XXX Margin run have our was $X.XX to are above billion. our is full guidance engine, of midpoint million the flow, not free for midpoint these at to to productivity.We to and cash do reach raise and range and positive power capacity raising revenue driven sufficient original billion The year capital.In and narrowing at the midpoint million. Center clinician our additional by terms company we approximately with to the of $X or until range by intend mid-teens us by XX% $XX the organic outlook payments fund guidance it equity million our debt puts this XXXX, $XXX are This million $X.XX we and year full our growth. combined it of raising

our adjusted it $XX we of EBITDA the million. $X $XXX Center $XX to million fourth million. We at million to million revenue the by $XXX to of $XX range adjusted quarter, million, $XX In are of and $XX million, Margin full to guidance narrowing raising $XX and to million expect million midpoint EBITDA year

capacity the seasonality our guidance reflected as a in result minute quarter like quarter.Now I'd fourth reminder, of to there the spend in a holidays, clinician lower As is discussing has which total historically resulted in XXXX. a

to our and guidance. We is are still next process, it premature business on conducting specifics year's planning provide therefore,

to I you some perspective However, wanted thinking. our give on

visit. continue in higher rates mid-teens revenue driven organic growth growth, to expect We primarily count clinician per by and

operating guidance, margin and rate As contribution initial include with expect from assumptions leverage improvement. year not modest mid-teens growth from the full for see expansion clinician to improved productivity.We XXXX any the does

As will be the XXXX linear, expansion margin foundational on I anticipate quarter in our have call, we returns will full investments. we as the XXXX earnings of of greater margin a improvement in and and in year mentioned the second not XXXX benefit

on XXXX.Before that to I million the operations. our it color to in payment in approach to forward and like to expect first EBITDA flow, guidance quarter health for tailwind with even a would continue the settlement We We for year, to double-digit adjusted with $XX to next I'll to turn call. with provide mental margins. cash exit free to continue next unprecedented free In we XXXX over regards to demand expect that, I it with sharing you cash say XXXX respect our for positive Danish, access turn the affordability look Danish will earnings With to over additional LifeStance. flow

Danish Qureshi

foundation Thank the our solidifying you, This Dave. year, we business. focused on have of

identified consolidation. in patients earnings XX our to centers have made additional and we We that far the last an also or making little have clinicians. operations centers in consolidated for setting announced simplified across business, no to brought organization the our senior Since we our with we we significant continue prioritization to call, country XXXX. to then, the and disruption On XX in-person XXXX optimized. have for focused and bringing estate we data-driven more leverage operating centers complete, over now centers upgrades streamlined XX for better example, leadership project decision and we our levels to beyond.As We've is the is in identify This where XXXX. usage an that opportunities evaluate total in us to footprint our consolidation, the across largely XX feel consolidation to and real up

to to no novos and growth. year. continue next pace XXX continue deliver Optimizing us more to over year to continues locations differentiator.In across on margin open a moderate than track than allow to to fewer of XX ability expect to improvement be our de time this real key as in-person novos, of open we scale.Turning estate de more terms intentionally to remain also will drive our footprint We openings. Our care we

our bringing net clinicians, terms by adds, of In total quarter, in XX% grew of we XXX clinician year-over-year. third an X,XXX to the increase

and amazing organic to this of to our remains as operations the organic. quarter is Importantly, teams a clinicians. work the XXX% in number testament a value adds a growth This and as record is strength net by of recruiting performed single our proposition clinician well

number clinician clinician expect optimize new starts variability patients operational clinician to and the As of schedules our middle a continue the At above attracting there do QX.In growth we year, adds top, discipline productivity, and the patient terms demonstrated we drive net are is for of reminder, of in of clinician growing we base, the by bottom our lower throughout top the of a in at to services. utilization of funnel. funnel, waitlist the

leading bottom over scheduled Our boots time care patient improving visits continues a on X.X% we continue to awareness.Next, and with and patient both no productively. X positive to the continued inbound online with phone funnel, the on relationships brand ability This of the capabilities, and the in clinicians to converting cancellation has the referral our grounds in year appointments.Finally, higher ago, the of from use inquiries impact QX. number expand to at local of to online are improve increased XX.X% in to of which a through completed middle conjunction had our show rates their primary improvement of the matching to funnel, scheduled significant traffic team a number digital scheduling, at a organic higher represents converting growth patient and our of QX appointments from in points

will year, slots bottom patients in to reminder, that the lower are a to and an to reducing have at funnel on reduced to have utilization needed patient a completed been late LifeStance, health for negative driver to much of that of middle we a and efforts and care primary time. As to services during clinicians They lower last net could our to and the cancellations received no and focus scheduled unfilled revenue are improvements. continue patient all no to compensation Visits who appointment access shows cancellations the and parties, top, clinicians optimize but not the late to shows.Over and loss result productivity are metal patients. LifeStance,

net will continue on area, now given so going made we'll that productivity on therefore we initiatives more in focus equation delivering far. we to forward but clinician focus incremental overall calls.As capacity. grow capacity, growth our to focus share this of we our more top We the the remains earnings patient of our clinician While we early, productivity, benefits be can on exploring clinician expect to It to and the on adds still this are future other and priority and progress to feel operational we continue side shift priorities an amazing enhancements is experience.

answers patients faster.Additionally, will or to differentiating insurance and easily. due understanding as and piloting their For us call versus and patient in-network patients, If to verify to as and can To well patients improve manual for check-in This stress information collect patient more patients upfront fees. are solutions know overall billing their between we operations. for tool example, improved copays, experience to digital an and have balances that the we complexity complex successful, get our health for responsibilities, end, pay tool. this delivering patient our center allow in streamlined will teams, appointment help insurance patient our be experience including benefits and operations copays show a past cancellation out-of-network how we to reduce no continued late deductibles, invest questions allow

easier locally this with also office year. our ensure staff.In that support our and levels teams I'm our our create staffing have what patients and to closing, new our are for impressed to nationwide our system accomplished We refining increasing have access to phone better clinicians front

made solidify our have whether operating efficient booking online strengthen estate progress a X-year the real scenes behind moving of to and to a in that the of plan of driving we be system that and foundation phone footprint other through and more myriad EHR, improvements are business, standardized our optimization schedules, We clinician the the tools, ways model. our of in single utilization or

that, All it and turn over for is our the remarks. clinicians hard his I'll closing country.With to teammates this back work testament around the of a to of Ken

Kenneth Burdick

closing, Thank the is on positioned with this execution, well team's has you, our Danish. met And progress LifeStance year. quarter full we year continued disciplined commitments. to proud that the of In I'm straight or exceeded This fourth are deliver expectations.

is In and over and streamline addition next progress continue I to processes systems recognize tangible work guidance.We when by done. your clinical X we and XXX achieving of solid from share this our demonstrate our work also financial high years. year take and continuing we now our encouraged that I standardize results, The doing benefits look to and this questions. far to operational the XXXX will quality after talent. attract momentum, are nearly am lifting acquisitions was Operator? we that yet sorely forward to needed our to heavy

Operator

question Hettenbach first Your line of Instructions] [Operator with Stanley. from Morgan comes Craig the

Craig Hettenbach

I a on two-part have margins. question

part First Center on Margin improvement. just is

seeing of just things the how you've in investment improvements. part, can you increased driven technology second that the there trend perhaps year, around and just to expand operating and the some do productivity you into on some particularly then you're business that XXXX? the If the initiatives, of expect this And

David Bourdon

Craig, it's Dave.

year-over-year. check-in prepared was be did is, virtual increase remarks, And areas represented the contribution costs. to the like XXXX, increase from Danish we in in that higher would in like on implement a by so not investments and expect that as revenue to his meaningful And seeing really the things modest thing fourth see but a the I driven technology expect Scale, the be the for to the Margins, Center fixed year-over-year the that to stable in like is And things. patients that So efficiencies increase, X and then some real then we estate relative the in that regards second quarter. things consolidation. we

Craig Hettenbach

Got on that's it. driving Any companies the then just of And partnerships some Ken. you're and with follow-up Gennev the overall influencing for as how a set? opportunity update like

Kenneth Burdick

for to it's frustrated that by close these sort of and deals. would thanks of I finalize taking some to continue expected discussions, little be the Craig, the than encouraged Yes, a but question. we longer have

forward. not momentum. to there's specifics. share continue to And I the opportunity little important to still impatient. we going future our in are good of more So to forward But a going strategy it's part an the be daunted; just look

Operator

comes Gill Morgan. of question Lisa with from line Next J.P. the

Lisa Gill

improvement want two payer you talked opening on understand your Are increase drive secondly, you too talked an mental then about to payers design plan seeing I cetera. that's just et the And I in any for investing Ken, comments when XXXX things much you to in when in changes talked side. rates. going under appreciated that? halls, about about in you self-pay, XXXX,

rate You rates about an expecting you it forward is are XXXX. for when talked increase Or in also the increase just incremental as XXXX? rates into XXXX move increase an we simply carrying to Is XXXX? in

Kenneth Burdick

We're we're seeing but stages, To in half my and design. are XXXX, we that I continue. question the changes progress, in the in plan expect early of as remarks, prepared really latter seeing your we about not Yes. to rates, the mentioned in

with we've that receive members, the that for reimbursement frankly, We should contract to just to annualization that's for more commensurate, And a So deliver effort seen of services we great a demand outpatient now than our the that experience that. and we're XXXX mental we -- as years. negotiations. our concerted health sure several have step-up in going make insured commensurate represent the patients with to just XXXX

Lisa Gill

the for past in then I given versus us quick Okay. percentage of know each you Can us in-person. quarter? as update just the follow-up. Great. And virtual just on a the you've

Danish Qureshi

provide I update. Danish. can is this Lisa, that

QX mentioned, XX% we've seen total That the So virtual in shift slow quarter. was prior prior to Obviously, previous visits. to approximately relatively of that, with visits have represented towards back in line we in-person. our QX, a as

that before, an continue in-person at that look mix believe we'll which indication We where inbound looking you this see And in-person, number grow, patients plateau. plateaus. towards time. more don't inquiries will from When so, for to like that of eventually continues to we're mentioned the a we our us prospective gives see shift at we've over

Operator

with Our comes next the Blair. William line from Ryan of Daniels question

Jack Senft

on Senft Jack is Daniels. Ryan for This

cash down at calls, looks flow And positive that sequentially. flow in cash free Looking be significant cash flows, half should prior I a pretty step took second you it in think XXXX. like suggested free

impact still of came is your flow this of expectation, earlier then contracts it payer functions has and and findings RCM as two, this terminated early year in first, how talk impacted So the just this quarter? where you cash the that the can free given And late? you the of about

David Bourdon

is there. This things a Sure. couple Dave. There's

cash flow. first, talk free So let's about

be year, when no gave the in flow of at So it's That's to we say going second the And year. two half beginning free we the longer the the positive guidance of expected happen. things. result we that did will of cash

is the us we for getting claims they through. those in And hold until pointed a flow, The then settlement the the you were cash result and free work is, rate little as was uploaded the first that choosing to And the second quarter, associated taking system. while legal shareholder rates just we negative with had new costs third that's where to their and out the increases litigation. payers in of

seeing credentialing benefits improvement for be improvement. volume that. an payer the our billing, the payer rates. of for second efficiency year become able those quarter, combination expect a the of half third areas, to the in of than looking contracts lowest teams, an as free than the rather impacted cash to And flow of we play efficient our do to that the So culled was not us more We initiative positive and from around payer, in result, year.In rate that more are did regards XX% rather I a this perspective the we for

out similar payer that it's tranche our would and of expect we as reducing I another played So expected, contracts in to XXXX.

Jack Senft

Okay. Great.

you you now, we And think target quarter organic have per you're going too. kind Just and on about are given ramp just that should and net onboarding a them, organic these that talk follow-up then hires? can adding all do a time? how ramp adds for quick these over and XXX% you forward? then, the of improved about Given clinicians How baseline clinicians has clinician trended

Danish Qureshi

is that. on Danish. This I Sure. can comment

mentioned remarks, strongest and which was we quarter organic adds, very we the our net XXX had we of as a in to prepared XXX% clinician date terms So organic quarter clinician strong that had of have adds. net in

You will in the quarter-to-quarter a a should XXXX. indicated remarks QX.As lower that well, and see providing there, variability in I mentioned prepared as expect on Dave number point guidance at you in we specific are not

that revenue base. not typically will clinician on do We a Dave Obviously, our mid-teens of And growth mention, growth adds. organic to clinician significant next our next see our expect that be year. will on we cal. in do as component guide we did But

Kenneth Burdick

terms of ramping? in Jack,

David Bourdon

terms the ramp we particularly out as our and of optimization in to terms of in ramping, to funnel about play of it or Sorry, productivity, to of utilization, plays improvements optimization just able new in patient talked speed overall in out clinicians. continues be that

continue see that supply continue clinicians our be caseloads existing as filled to by keeping both it growing they well as demand comes indicated And list. the exceed to to as will schedules to ramping We new wait as of our clinician desire. clinicians a overall positive that new patient

Operator

UBS. of Caliendo from comes the Kevin with question line next Our

Kevin Caliendo

the was bunch a what calendar the of I'm wondering the season. think a any the per of you called just stepdown new of year-over-year? on And there suggest out impact I would ads, little net holiday and impact XQ QX doc. a know calendar quarter also in days? also, bit in terms in there's in fourth is the of math I productivity

David Bourdon

around the I Kevin, regards for result stepdown of of business for vacation question. the fourth of clinicians. revenue. as you days we think in is effective for reason to quarter, effective -- holiday nailed sequentially our think it the them the Thanks season the call them In It it's because Dave. the less,

the offset as So clinician result, EBITDA expect That's the per about by last this fourth or rates, do which driving adjusted down productivity you quarter. what's step in doubling see to almost year partially a pickup in is in a year. when visits versus quarter we think

the what's primary of happening. dynamic So that's

Kevin Caliendo

kicking kind Is And helpful. now. the That's really claims This I holding you're quantify a the difficult the net just are rate back. increase? any that's That gets for. Okay. of in That's again, rate question. the way is to know increase rates delta. back what there added these or

David Bourdon

Yes. those but -- We're what dimension of is it's get for we're in in the updated going the to rates is we helps. which as full kicked you which came of contracts the additional have improved fourth the fourth quarter. the that quarter, in being that, said some also accurate, so the or are middle effect to not rates And quarter in, in well, going also

Kevin Caliendo

does internally, your that else? rate sensitive, more but how that Great. impact you of has churn This bit little does was wondering how a manage a had And headlines increase impact? wondering churn us gave number operationally, you anything or in saw how can any the if something that you I'm impacted fantastic. just that, if there challenging. is obviously, internally, it you when perhaps, be to have any compensation Has do with? what -- you sort have like because these Now, deal model, which just was suit, of because it -- it class net action

Danish Qureshi

to Danish. is this I that. Yes, can speak

stable. So our retention remain to clinician continues

to clinicians be in the continues as net Our quarter. indicated attract ability by clinician strong, new adds XXX to our

competitive we competitive retain So, a that highly our proposition believe or has attract though that and clinicians. to value noise there anything, resonate a background market, been be still in continues ability and this to strongly will in always always our both

Kevin Caliendo

the for litigation on all thanks And Super Great. color helpful. the stuff.

Operator

Perse Jamie from of with line the comes Sachs. question Next Goldman

Jamie Perse

just progress the -- as have center those comments near can consolidate I on consolidating on Margin around Danish's benefit? centers consolidated margins. you the think wanted about contribution over term. guys we you to to incremental Should centers, and think similar type from any and gross of Center just those a made Or about for on how another color to level be go the XX back that margins

David Bourdon

Jamie, it's Dave. Thanks for question. the

his going The close we're this as only remarks, financial going approximately partial Danish getting we're in to to year. mentioned XX benefit, centers this year. we're -- So prepared a

that $X to to range $X expenses run favorability the the million rate of to more XXXX, think in So is million. for this that $X in our In million regards over year.

So improved the for center in contribution that's of XXXX. what we to think costs

Jamie Perse

still Okay. strategy shifted about that, guys and to from existing back away the going ask in as few years if states, continue grow? going you M&A? enough an I just that's I you initial to, of wanted opportunity Perfect. into guess, you feel the to ago And states you a kind company if new then opportunity for like have Or to for

Kenneth Burdick

Jamie, Yes, reside. our very existing move relates until states have really greater And performing on platform have out practices for XX tremendous hold been expand presence Ken. that the high clear is our can M&A, we as acquisitions stable going that and future states. onto already that going solidified But within our tuck-in will building not and it We've glad We doesn't I'm off into be emphasis you think acquired asked. to solid, we're to platform. to mean foreseeable is this opportunity in we It we we more footprint. the

can We of we fund also out it when cash. look free that to do

the that near-term is not on the on horizon, but So horizon.

Operator

Jefferies. Next from line Tanquilut of the with question comes Brian

Brian Tanquilut

having to that those just improve touched that they concerns doing cancellation Congrats elaborate the that some of on experience. out in and to on the things address try the what patient care. clinics can if NPS question, your you are on some that and prepared you're Maybe remarks, first and get face fees I to there of quarter. of know your are doing market in you're I and the guess the my things you to as things on approach like some patients

Kenneth Burdick

is I'm for it you then to love going that's going Yes, But certainly cancellations a Brian, noise no weigh thoughts, we dignify nonsense. my somehow to and tell I in. give the with is We're inducing and there. I'd out that absolutely are can rebuttal. what to the We're shows direct of you some that of thought not aware Danish

reduce We're it to a we've over in hyper-growth and shows. that I million year. this cancellations a since past patient every meaningful we been reported our visits And describe way priority has As it's mode year.So been founding. done approximately no Danish us way would conducting now the have is in a a for X quarter,

operations shared buttoned we are will going in forward. be not calls, these as we up as our As

say to So offended there suggests is our is systematic anything other experience I'm patient meets to we're that going than somebody try strategy not to And experience But make no the approach exceptional. will frankly, what otherwise. or every say I patient absolutely when standard.

Danish Qureshi

said, patient will Ken. to well But would not is mitigate that experience on I experience that's remain when continuing that the proud XX. only any thing where Yes, focused we're improve to the we're The we look looking of positive add overall very I our of NPS today at and that as to delivering improve we or very think feeling patients, and is that clinician we overall for can.

service any more a their trying quick and someone rather in market who or investments solutions support very can that and direct to in staffing access our levels on as navigate have concerns frontline they increases our easy they them level, in have when ensure local centers as call questions, our think level to the able related their understand our patients than to to staffing help be some bill center as well our clinicians to and feel so patients, fees direct may do increasing the center. I of at that billing have of a

Brian Tanquilut

if comments. up? further satisfaction? color other share you're employee to Appreciate And that drive can there the any on question you efforts could side. the or putting in Understand. Maybe Any I clinician the to flip

Danish Qureshi

is and of both mind regular employee a top for satisfaction on always the that we track basis something us. throughout It is engagement of the clinician multiple year. course So through surveys

that, in retention clinician about, indication of the direct our of talked direct which a least believe most As base. clinician standpoint, engagement a base remaining stable, similarly from our and have we that the we positive at is on we our non-clinician level again, indication

We engagement priority However, top put well and And believe clinician experience as list. at rest we'll is of employee for our our as experience room on do all Ken we that said, the as patient, always there continue hands. our not improvement. the to

Kenneth Burdick

Yes.

simplification the automation. focus Just make these a benefit on. investments. it directly for awful in no these quick on investments business, We we purposes and And can achieve. the standardization, our an about make But tends earnings operating add as better leverage experience call, we to the lot a talk obviously, that of will mistake, running from clinician's

Brian Tanquilut

it. appreciate I

Operator

the And TD Cowen. line do Gary our with comes of have we from Taylor question last

Gary Taylor

I to cash question. Two XXXX ops? cash you approaching wanted correct? Not breakeven, just flow, mean when talked clarifications free you clarify, from cash one and flow about just

David Bourdon

correct. That's Dave. It's cash Free flow.

Gary Taylor

of And on want you're I settled, think But X $XX full have actions correct? is securities the then the just was all I I class been those X today, this only for the action those, it. right? of class all settlement, the think to legal Got Yes. saying in XQ. confirm, million That's clear. now since just

Kenneth Burdick

No, Gary, relative settlement to the referencing we're that today litigation. shareholder

Gary Taylor

Okay.

a class yes, release, privacy press there the and was action. in compensation So then a

those or for point? there's reserve this So no at estimated amount

Kenneth Burdick

are Those early That's are and correct. in ongoing. stage

Gary Taylor

it. Got I want one understand my make but I this, think would just sure. I be And last then -- to

mix was So Is that when and kind in line? that's think of deceleration? low-single you're place when quarter, divestitures, the of sort just XXXX, we $X where cosmetic $X, the about the the underlying. digit second revenue that's so, better of look the just revenue that? and quarter the this treatment per we're and that acquisitions, year-to-year And of given year-over-year, growth modeling about any in clinicians, visit quarter was we to we about a the up in these impacting mix on up rates if that that's low-single up quarter Is of back all first get -- $X, it about do per achieving was at digit

Kenneth Burdick

and revenue differences. didn't Well, that XXXX, is of A mention couple of per to give but track. not on that obviously to on the you Gary, influences you're There's a lot guidance moving right a visit. going we're parts geographic lot specific relative we have

payer different influence geographies, have mix. growth And also we So some that. so across into differentials, play can which different have rates rate will the we our

I in our next you provide So there's with prefer we call. guidance to when But earnings the moving XXXX share of parts. a lot specifics

David Bourdon

I to drive did visit Yes, from the say growth, that that's revenue rate for is come we'll and would growth. right, what next that earnings as my mid-teens call. didn't remarks, And per We dimension both Ken. on that well that's yet. do XXXX, pile just just clinician we And on in prepared growth as

Operator

at call to further I CEO, time. back no questions like over are remarks. the closing There to Ken turn Burdick, would this for

Kenneth Burdick

Thank thank continued just for you, operator. take LifeStance. you I to want your to a moment interest in

it our this following went that this on we been no first stabilizing public, on those since quarters, have question are For and X a we now you're seeing challenge. what focused Hopefully we that the story of business. there's heels growth you simplifying were is standardizing, high and was that

really contribution want for made hard that, all on had our we We of And very quarters have commitments. of our work in the to day to moment employees where have where very LifeStance for on their they've X progress. take where, of we're in now much to the and the thank near to forward heels.And our on I instead fact, toes with delivered the we look future, a the

And it's As but of Dave collaboration the about have of of sharing Thanksgiving all these holiday their geographies. before, and that, With hard I've Danish, said results, season. not I a are are and a thousands the employees these confused our thankful Happy healthy many we're you safe and results how we and work. privilege dedication through across for I generated, many, wish and very

Operator

conference today's call. This concludes

You disconnect. may now

LifeStance Health (LFST) 8 Nov 232023 Q3 Earnings call transcript