NRC - Earnings call transcript Q3 2018 | National Research Corporation

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Third Quarter 2018 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded Wednesday, November 7, 2018. I would now like to turn the conference over to Michael Hays, Chief Executive Officer. Please go ahead, sir.

Michael Hays

Thank you, Malika, and welcome, everyone, to National Research Corporation's 2018 Third Quarter Conference Call. Hays, today CEO, Chief is Mike on joining Financial is call the Kevin name the and company's me Officer. My Karas, our

related that continue, any Kevin? part we I'd Kevin call. review Before ask of today's forward-looking be may conditions statements made as to to

Kevin Karas

made company cause from Mike. you, are actual the harbor forward-looking outcomes differ materially the results currently safe call risks anticipated. and statements statements related includes Reform or to Thank involve forward-looking uncertainties those provisions These Securities conference Private to Act This the that pursuant that could to XXXX. of of Litigation

Commission. For affect that, back it you, facts the the the I'll that Mike. could results, to future company Exchange please see -- the further With information company's with company's turn could about filings the and Securities

Michael Hays

well our Kevin. now and call turn and from shares online are will ordinary step I research care for recommendations discuss XXXX a searching of health you, business. swelling After how prepared of reviews Thank is health Kevin With brands, reviews to in by company's performance, notably the that doctor, purchasing quarter much The use and care and everyone. creating first actual as financial his its consumers with their known the organizations other Well research health voice providers. welcome, customer of these is Kevin, of of most patient that, as all This themselves. that as the us clear of ratings the XX% changing care highlight integrated feature ratings again, are the reviews adoption the offerings, platform I'll of online leading and by consumers the most our to remarks doctors regarding and choice guide us consumers decisions. reviews use as back trusted XX% rating star to also physicians online third as documents and for day-to-day showing our quarter now consumerism

Kevin Karas

value X% same XXXX care quarter the of prior solutions of XXXX, contract Thank agreements representing year. you, the third our over base $XXX.X the Total of with clients at XX% client million, from multiple totaled end Mike. for year. system up end for represented XX% period third quarter in Health digital time increased quarter the growth XX% our of third agreements of XXXX. same to of Total the recurring value. million end compared the last $XX.X customer the third contract Subscription-based of of XXXX the quarter platform the to the represented $XX at revenue value total of contract at for voice million at

customers. X% Third existing $XX million, the revenue for of increase and comprised of was organic increasing of customers contract quarter XXXX from value growth from quarter an and new adding XXXX third entirely

expenses X% million $XXX,XXX same service of compared costs, the customer increased to Third compared third in total through decreased expenses third to XX% of quarter quarter the revenue that Direct of quarter for of the of compared of for third million in compared $X.X legal Direct year $XX.X period the as year. for of collection same technology to fees period lower SG&A XXXX increased partially last or million for quarter million expenses the same in period period to revenue to in of of the compared the $XX.X the million third expenses. X% of the of by decreased for a the Direct last revenue operating voice Total of of a administrative the XXXX. primarily the XXXX. for same general in the were expenses XXXX. with decreased period $X.X recapitalization as customer of were third associated accounting for compared $X.X last and XXXX XX% to the XX% to were quarter our and incurred in is for the XXXX revenue The to third XXXX of of percent XXXX. and compared XXXX XX% result third to million third of of XX% revenue Selling, platform revenue XXXX. total revenue information digital operating to expenses XX% quarter quarter decreased $X.X SG&A for for revenue decrease income by was and expenses XX% offset million or quarter data Consolidated XXXX of quarter the for $XX.X expenses the XXXX. quarter third due $XX.X XX% to year. by million same same in to period

our tax million Our income period in $X.X million additional amortization The $X.X of million $X million of technology company and The the $X.X XXXX. to of to for increased quarter to depreciation XXXX. third in same the quarter expense in XXXX the expense compared for for expense incurred was platform. by compared driven third of investments XXXX increase

Our Tax tax quarter due to on XXXX The was December in XX% effective XX% in is rate in effective tax the of XX% the Act period of for effective corporate the the enacted rate rate to to was to XX, decrease XXXX. that an from rate primarily XXXX. XX% for compared same due the third reduction

and quarter million was in tax the call XXXX. from I'll for for that, had turn depreciation of options election million In addition, With in quarter to the exercise back and dividends to Mike. shareholders. benefit income income $X.X paid to a the company $XXX,XXX $X method costs, compared third tax development benefits XXXX the change third from also non-vested of Net the realized tax software in we a

Michael Hays

of our health analytics care increased set is as in uniqueness to role with in health and care and health now NRC Kevin. acquisition now go you, leader the continue business, platform's you patient to decisions. out-of-pocket in a data, expenses Thank sharing XXXX, in a as the share loyalty. to your use one we'll spend solution Digital December resulting care transparency. and used apart trust itself increasing to in tools our I of rise the The as consumers established experience our of enable more their continue them consumers The including reviews and by provider is Core themselves its Health online ratings and NRC and to our platform transparency Assent few market the of improved their for active Health which partners into market take clear trends Q&A. by would minutes then market shaping to has has evolved brand like

of In organizations Health verified now and which vast more care partner than health leading putting selected XXX represents organizations the fact, and comments NRC them ratings the transparency their adoption have as of own on patient publishing majority website. their

went The the care and for along organizations furthering overall and follow-on NRC's approximately continue Just XXXX. opportunity upsell enabled X,XXX current wins transparency two, ratings States reviews at distinction as also organizations the showcased and base us Clinic within consumers this and the have finally, I Medical leadership in all is like is of transparency towards our short our Johns current health create fronts: transparency us dialogue Adoption is economics compelling Health and products completes unique of has the desire. of that for Methodist; of future be client driver exists is customers Houston provide NRC the XXXX and Center the in a in solution care third to to for transparency installed this Meridian of remarks. the bundled month, organizations solutions, health recognized Bellin like Children's and our Medicine globally offering patients quarter contracts large Hopkins Anderson. with bolstering hope point sales MD to our exceeded transparency will Hackensack a transparency million quite balance X point-of-sale, work cross-selling our third of our new wins $XX previous enabling their we portfolio; those organizations, prepared of This number more Cleveland Health, providing Cedars-Sinai year growth, of number driving the approximately patient-experience at United live our two the one, position in space. company's has

like questions, please. So open operator, to to the call I'd

Operator

the Instructions] [Operator question Frank our you. And Please first from of Sparacino line with is Thank ahead. First go Analysis.

now open, line is Your

Frank Sparacino

guys. Hi,

me. just health the to for that sell questions mean, there's X,XXX mentioned clarification. in two first, the cross-sell point Is organizations Maybe lot Mike, a had to Just I more you care care U.S. organizations. of obviously, opportunity? health

Just wanted clarify first? that to at

Michael Hays

defining relative X,XXX, is market addressable organizations XXX to become partners most which we're way portfolio. already The of approachable of or those with NRC Health the have transparency roughly

currently have. more organizations you're United just X,XXX of target most States audience the there for products we the balance is the health likely suggests So next that the correct, the care X,XXX. in than far But

Frank Sparacino

just what of in the And in criteria can terms you target definition? that share, are

Michael Hays

Any spend or the markets medicine are organization creates of their revenue clearly is patients a material. and advantage heavily the those area looking be that has organizations physicians for of to competitive marketing list. of the would fairly Transparency revenue in of in incremental steer acquisition an follow-through top the brand and significant at to for that generated

of would and the one that brand the to can minds be market, to X,XXX as hearts they're with and most you head So imagine, in list at create trying terms another, the the likely. going right head competitive loyalty top any is capture of and

Frank Sparacino

if Great. maybe, part be around don't steadily the know point been the you color. business, sort some any type inflection building? but we've of and just terms of, would And that in what that lastly, seen of would just it's driving momentum of I say

Michael Hays

last the built a acquisition X number that and bit solution. And quite were the in the momentum analytics Digital large of of of was referenceable over out terms steadily time, in we've interested Assent, accounts. the over of I'd since that people there gate of years,

at think major health seeing we're tipping I care point. brands the Now

point accelerating So accelerating that rate as are we probably say, I has be at inflection a we to seems at last building X an speak. the over that and been years would

Frank Sparacino

Great. Thank you.

Operator

question [Operator time. showing Instructions] no And I'm Mr. further this Hays, at

Michael Hays

and you, time Thank everybody for operator, your today. Great. thanks,

Kevin you. I quarter. our to and next look As always, Thank forward reporting progress

Operator

does for please disconnect and and your thank you for participation ask that gentlemen, call conclude Ladies that the your today. you conference lines. We

Kevin Karas	Senior VP of Finance, CFO, Treasurer & Secretary
Michael Hays	Founder, CEO & Director
Frank Sparacino	First Analysis

National Research (NRC) 9 Nov 182018 Q3 Earnings call transcript