NRC - Earnings call transcript Q3 2019 | National Research Corporation

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Operator

Greetings and welcome to the National Research Corporation Third Quarter 2019 Conference Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we'll conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded today Wednesday November 6, 2019.

I would now like to turn the conference over to Michael Hays, Chief Executive Officer. ahead. go Please

Michael Hays

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

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

Kevin Karas

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

the the see company's company's future For and about Securities further information results filings the affect the with Commission. could facts Exchange please that

With you that back turn I'll to Mike. it

Michael Hays

if if highlight referenceable record welcome prestigious clearly new set of again sales and the our Kevin a comprised million. number of the sales of everyone. a momentum momentum were press accelerated with was this fourth one new Thanks over the actually days And not the most including wins PRC. quarter largest client of winning us clients continues of record not This now which The third in the was that quarter one of net early gaining. $XX new, of clients

the details will performance after add us shares the of financial I quarter. some comments additional in with Kevin? Kevin

Kevin Karas

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

was X% quarter of increase revenue the XXXX quarter Third XXXX. $XX.X third an of million over

for of compared digital in solutions of revenue platform Customer quarter the XX% XX% revenue to our XXXX. third Third Voice of our total total increased quarter revenue the to of

Our third consolidated for the income of XX% of million $X.X the also revenue was XX% operating compared XXXX of same $XX.X quarter year. period million for revenue last or to

operating XXXX the expenses the X% our of of expenses by in in Direct due Total year. to compared $XX.X expenses. comparison XXXX. of in decrease XX% Direct X% by compared of to third partially $XX.X the increased increased quarter to million quarter for million $XX.X XXXX. expenses for prior offset growth million a costs period XX% by for the as third in in a to Direct quarter expenses XXXX were fixed percent increased revenue in to variable same

compared general the Variable third quarter to XXXX. same for our revenue expenses third to third to, of the increased result of legacy by continued revenue the part to of the shift salary costs Voice customer mix in offset compared period Fixed XX% information XX% to customer direct from areas large to as increased million XXXX, the XXXX. revenue. in quarter in million variable lower in to partially in and expenses in higher $X.X $X.X of decrease service benefit costs primarily of for due technology the Selling the a platform solutions administrative percent quarter and XXXX as expenses

and software XXXX expenses third and license quarter increased and general services. of accounting expense costs of XX% administrative which benefit salary contracted marketing SG&A for for were expenses were lower XXXX to XX% legal Selling partially and hosting offset increased the third by expenses of due revenue in expenses quarter to revenue of compared and XXXX. platform the

XXXX. expense third XXXX. of quarter quarter amortization million and and of of the both quarter XXXX $XXXXXX and the was the expense depreciation in third XXXX expense for income net to changed of Other third other Our in $X.X from $XXXXXX

The quarter of decrease to foreign to XXXX expense tax intercompany in compared of due $X.X rate. XXXX the to other company's million revaluation was in tax exchange in effective on both and quarter for in the and for third the in expense the third quarter was changes Net XXXX. XXXX million million XXXX compared rate $X third XX% was primarily due was transactions The income for income XXXX. $X.X to $X.X million

turn to the that I'll call Mike. back With

Michael Hays

Kevin. you, Thank

XX% product XXXX. offerings. of total of Our well-established revenue or core, quarter to the indicator a in by diluted quarters company deemphasizing the over which double-digit is after overshadowed a engine of noncore many of revenue having for provided the NRC's visibility Customer has revenue this focus divesting platform been all of now contract future number value a registering our and year-to-date key about year is XXXX Voice the for growth growth growth

value levers: average Continuing PRC clients against Ganey; and on Customer additional Press the of logos on first is in and installed X combination use to platform this winning the cases Voice partner. contract from current per a of new increased VoC converting the base resulting by executing in growth platform; value third second adding capitalizing

are levers prepared our X working well. these remarks. This completes of All

please? to now like I'd turn the Nelson question to, call So the questions

Operator

first with Please [Operator Frank Sparacino Instructions] the First of proceed. question Our line from Analysis. comes

Frank Sparacino

understand things I think X talked end. the I just Hi, guys. Mike about at there you

are maybe making in the base? specific you're little The X on point little existing you're services more terms into in selling first last the a products bit or Could you additional of more a and of converting terms logos. bit clear pretty customer expand winning

Michael Hays

Sure.

now stand-alone case and risk have So example discharge both platform. let's Frank clear with factors offering a calls as into service first our start you a standpoint to manage you'd from we'd point as so whereas work or reach to to wish an transitions organizations that product integrated solutions be the Probably identify familiar patients clinical readmissions. as with use the historically one with incorporating out offerings existing is are been if that we and most sold

Rather that a that about story case platform? stand-alone it experience of asking at that's a as say, set it look the be a an at can look solutions point across different users as than enterprise-wide? would one use at tell point we and of a rather we're be solutions if a separate So or broader than added benefit the and of Voice simply Customer way different a not would all separate stand-alone there can time that the questions just happens to hey point what not along in think

now another Let's and be outside is offering skip example that perhaps would to that current of recovery. service a

and cannot customers immediate help millions reaction proportion at So interview healthcare have that attempt of a satisfy have first-line service some it complaint? certain we outreached and to or solve systems some or if is millions we violation those solve particular to of have or why that

or additional integrated through package? the when different feedback about it. at the no as and really our continuum a there's some why simply comes an blinking the organization helping there's along from at can maybe light to through have proposition saying solve is how help continuum the oil understand reason solutions we value provide stop feedback part can the what way to So of experience that the we all them do not So understand points we

Frank Sparacino

success secondly given responding you're that That's I'm in in. helpful. in the how Maybe the curious cycles having competitors today. the marketplace sales are you're

Michael Hays

Well fierce ourselves a every often battle. as we tell deal firstly is

we're are but which and easy consulting orientation safety which a no primary that in no for Ganey. I street some is Ganey's simply value areas we Press are shows telling between not The the healthcare with competitors comfortable more button story in differences and organizations train there's there reactions that our very Press becoming being the and easy the PRC tangible and of more So compete. we more are very, X think different. but important in particular in to and

In to of their offer what showing pencil I think feedback system that's Press paper point-of-sale robust. that's we digital more is legacy of overlap and antiquated being with the Ganey we the far areas comparison in just and that and form a do

going. terms club. working are with network terms that's and direction who around in a have effect our clearly advantage Press that we're advantage have an becoming clearly we clients the PRC almost moat there's a offering So Ganey organizations in creating product We that of more of join and and the to and more want

Frank Sparacino

you're Great. metrics. And be macro big you of maybe on in terms changes of Kevin. IT impact volumes numbers weak some curious other Obviously quarter I'd any could lastly seeing on some just if or and putting budgets. comment whether operating environment the this Mike the or

thoughts any So there?

Kevin Karas

where market efficiency their is Yes absolutely. focused Kevin. Hi. very in Frank very I this systems prominent a and that the theme mean on are prioritizing spend. is healthcare

comes we've been issue frequently very to think relationship up prospects with and have that challenge. or very demonstrating proposition the is that and in whether it's at we with spend every our value I continues costs ROI process. something it to I a demonstrate demonstrate able successful with organization how to mean being So able in to those just cut customers. be an the prioritize supporting definitely to customers it's But our them And through prospects. to with to work it's, that existing looking is hard very

that. pretty And so far I been think in we've successful

Frank Sparacino

results. on the Congratulations you. Thank great

Operator

at this [Operator time. I showing Instructions] questions no further am

Michael Hays

Neil you. today. next Great. Thank Thank for time to you quarter. and thank reporting We look you our your everyone progress forward

Operator

for that disconnect call. That the does We conference conclude line. ask participation your you and thank please your you

National Research (NRC) 9 Nov 192019 Q3 Earnings call transcript