CERN - Earnings call transcript Q2 2020

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Operator

Welcome to Cerner Corporation’s Second Quarter 2020 Conference Call. Today’s date is July 29, 2020, and this call is being recorded. The Company has asked me to remind you that various remarks made here today constitute forward-looking statements, including without limitation, those regarding projections of future revenues or earnings, operating margins, operating and capital expenses, bookings, new solution, services and offering development, and capital allocation plans; cost optimization and operational improvement initiatives; future business outlook, including new markets or prospects for the Company’s solutions and services; the expected benefits of our acquisitions, divestitures or other collaborations; and the expected impact of the COVID-19 pandemic. Actual results may differ materially from those indicated by the forward-looking statements. Please see Cerner’s earnings release, which was furnished to the SEC today and posted to the investor section of cerner.com, and other filings with the SEC for additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements. financial also in Company’s be non-GAAP – earnings earnings of can call found reconciliation measures this discussed release release. A in the or by no except assumes obligation update forward-looking Cerner to as law. statements required any information At to CEO Shafer, over the Brent I'd this Corporation. Chairman like time, Cerner turn call to of and

Brent Shafer

good locations Thank of much, you doing we're Thanks today. you, the call joining and this very remote for afternoon, everyone. from most call. Like

any. I'll challenges. and So and have Client on please Peterzalek; the our John Hopefully, numbers through my CFO, providing Chief technical marketplace with current to Services Naughton; Marc more handing business the in a bear we spend President, thoughts us any before call the Don minutes over Officer, for commentary. and our few won't on environment, Trigg,

our relationships actually hurt on intense Cerner’s financially enabled us and clients margin recovery. reducing to the has by for focus other and elective pandemic and has strengthen COVID help client While plan procedures their contributors, post-COVID supporting through them significantly extend

country’s we’re recently example, our states, Revenue Cerner’s health with Banner our relationship Health With an expansion of of and grow them. announced include As Management one the is hospitals systems, in to solution. Banner proud XX six to Cycle the largest relationship we

and In a real addition Cerner also COVID critical, alignment to projects. quick-turn burst teams clarity, produced focus, of delivered innovation as

syndromic XX analytics reporting we Network more that hours; just shown for many re-imagine the clients data and and and and inspiring, to of of importance plan models to a from than a recovery matter Control Center reflect released commitment clients is national post-COVID comprehensive has On solution solution a surveillance new to are In stood solutions for cloud-based strategies. helping cases, in developed we up new, scale Disease support our days; Lights new hours. and to in the been Our deployed of its support XX CareAware crisis actually helping the XX caregivers COVID and respond and our reports increasing network dashboards in on our flexibility clients The business Cerner impacts. and we’ve version

from the flexibility our execute more our of about transformation of ability care. largely and is hear Don change the Cerner’s result deliver health to impacting You’ll on forces efforts.

Cerner’s workforce of decision-making. the the The global COVID Task other and is our Command guide considerable recently help tool made our one-year have like their Light Center Health easier Amazon/AWS. health to bed and deployed initiatives it Cerner to this with taskforce and other critical base. on the meaningful Cerner health realtime AWS will health agencies The innovative, business Center, systems and and efficiencies tool. important resources progress Cerner. utilization, an and is and paramount provides with clinical, anniversary critical of operational We underscored and January, with value agreement Cerner our global support Force interest Services, recommendations. levels. Tomorrow cost-optimization regularly business CDC, that client of of County with the make the and – our and continues and Care from occupancy, clients Cook interacts monitor World Cerner’s pandemic as pleased business I’m Health ICU concern such to already relevancy Launched analytics Organization System helping the And as Command marks Hospital systems Health do Northern the manage in milestone this staffing drive Christiana well-being more ultimately in a simplification enable data cloud-based and relationship. predictive to associates Health, efficiently inform that to that provides health has

on to Jerome I implement and all just new leadership of will innovations including well track team. and leadership. Cerner’s resources And Consulting we define for more job provide we also done thrilled Technology collaboratively to health Jerome of Labat. teams. He want also last work in our so Jerome have XX transformation Sales, the record all has and you robust environment. than and cloud-based care vision They Officer, technology experience, Marketing our brings about platforms. associates environments. for welcomed a more and I across mentioned technology leadership deliver Jerome strategies next-generation virtual will to Chief than adapting last an to over thank and have years spoke, can clients development thanks. XX tell is years proven quarter, Since passionate outstanding Cerner I again deserve him work As I’m a he Cerner with

we doing Finally, culture are and work build to inclusive I’d recognize diverse more a at to Cerner. the like

is in While progress I our even to diversity Cerner making and for inclusion in efforts inclusion years, been their organizations and And programs events as mentioned have underway more committed recent challenged our strategies. to team and recent many policies. re-examine all-associate the Town have leadership diversity Hall, a

by the to and technology plans two advance For safely series this in and safety by will years, will by Cerner for been communities where Cerner partner the work. for improve Universities test of routing from and our reopen Testing in and a led live to Diversity labs developing culture key is leading initiative we week, Forbes that and COVID a and and driving health actions we Employer have we named consecutive other Historically TFA testing partner Also, effort continue role an faculty safely results Black comprehensive was named play will students, an HBCUs America. a administrators. agencies. further a Colleges non-profit,

quarter, that a unique have As especially given circumstances. our unexpected we delivered pleased and very I’m results, solid financial for second

our reflect earnings bookings cost-control in on strength strong favorable focus a Our relationships and quarterly client result. our drove

many resilient a to than to other health impact that model relevant that transformation and pandemic engaged technology, Marc. business With the I’ll with We’re call companies. fortunate manage the have plan worldwide, positions associates over to less context, a care solid highly us through turn

Marc Naughton

afternoon and cover to I and Thanks, of on results our everyone. our good share views going updated am the Brent, the remainder QX year.

primarily came margin the high-end delivered revenue items by was more strong earnings at slightly This driven offset we delivered our the guidance we expense pandemic by expectations, low expected. our in below but and control than impacted being of we some quarter bookings, by range. This

We remaining impact have our more of the the adjusted anticipated services COVID a our forward, guidance sale business. to lower reflect the and QX, revenue current of view RevWorks going

was earnings stages the outlook We of also an results in the we pleased tightened Overall, outlook guidance full-year with and maintaining same midpoint. prior are while given provided early our environment. unprecedented our our

a our managed bookings, down year lower billion, X% above but primarily ended quarter second with from with to year, level were to which this through go quarter. I’ll of in the a $XX.XX revenue primarily starting the high our half results, bookings first $X.XX the down strong of from is year. backlog in Now, termination services a ago the of outsourcing We that of due as last range the QX we X% quarter levels billion, of discussed agreement bookings due guidance of XXXX, RevWorks which the well as end

the provides of with from visibility below XXXX the over X% XX Our other billion, down and excluded of pandemic. months. contracted still $XX was guidance XXX COVID by travel. exit the RevWorks is impact in that the contributing definition, contract QX the the primarily reimbursed outsourcing revenue of backlog the driven range, ASC of Revenue impact our to resale quarter backlog lower XXXX, from expected XX% QX revenue was Revenue with next of of the to combined more levels than of and $X.XX million revenue, technology

also third-party We services, licensed had the revenue software, and during transaction quarter. less processing

XXXX. As was it and of was were through I $XXX QX down $XXX with go in so business expense to control. year-over-year offset growth streams, from revenue able these compared now in QX XXXX. detail impact margin on to mentioned, Licensed Software the a model million, lower are earnings and revenue we XX% primarily million I’ll record QX high limited of the

large the grow decline services, we agreement. activity, pandemic our in second QX out down largely by was expectations, deals expect had in down did and QX X% the by with with of SaaS in-line lower would down lower $XX expected Technology the revenue million, of activity project was processing revenue, transaction was driven business $XXX the to our third-party X% that is primarily This level in we and Note expected lower quarter, to slightly decline impacted the which termination the which half as significantly licensed implementation million. impact close driven quarter at amidst services the of pushing few the grew our software offset QX resale expected in the was the decline million in on below offerings the while to by the which XX% and termination the services bit due year-over-year, this rest visits. based to license assets agreement, the year, Spain, of Professional total lower due a are to pandemic. software. services traditional Subscriptions $XX in is it of sale revenue of Germany volume to of of large beginning of new and While during anticipated closed sale in noncore expectations the the QX, strong ambulatory by than of a RevWorks RevWorks be in business, come growth expected was a QX. our to RevWorks

$X into quarter, into COVID-XX factored XX% been guidance. the and million the and related but reimbursed services hardware QX essentially X% travel had Maintenance our restrictions to toward continues our Support in-line $XXX the finally, year-over-year to travel ongoing X% of was has in QX. anticipated. to expectation to be and even And down and revenue. last in more with activity reduced Managed this QX, in We in restrictions that of anticipated of to million down down was travel of to QX travel range expectations. $XXX reflect our our ability All would up than went impact due just end million, flat of attrition place remains which impacted was maintenance

year-ago million X% domestic $X.XX year-ago Looking down was billion, geographic X% quarter. of at by quarter and revenue from segment, from was at $XXX revenue revenue the non-U.S. down the

to margin. gross Moving

the the revenue margin for from points QX travel. and reimbursed third gross nearly year-over-year. in than is from of quarter, party low-margin mix Our last more reflection coming a of from the quarter up revenue basis XX.X% declines XXX resale, up services XXX basis technology largest XX.X% with primarily was This overall and XX.X%, points

I Now earnings. and operating net discuss margin spending, will

both The reconciled release. exclude to adjustments, detailed restructuring other GAAP adjustments other GAAP acquisition-related and For these are or and expenses, that and provide we expense, results. non-GAAP, expense, earnings share-based and our COVID-XX related compensation organizational items, adjusted, in adjusted results

period. year-ago our operating quarter the spending, down X% GAAP to expenses were operating our million billion at $X.XX $XXX Looking second of compared in

expenses QX adjusted to down from optimization efforts. continued our Our were X% primarily operating cost compared resulting XXXX,

We travel, areas also drove had COVID unreimbursed some expenses. entertainment, and where medical as expenses, such lower associate

line the client lower sales nonpersonnel by at X% items decreased driven and expense service year-over-year, expense. Looking for personnel QX, and

Software offset by and was development increase in with X% X%, XXXX, personnel essentially decreased down increased QX capitalized by expense from QX both of a and in in a non-personnel was flat X% gross G&A driven that decline R&D amortization expense software. expenses.

Moving to operating margins.

QX XX% in in margin the to operating was GAAP year-ago period. X.X% compared Our

the operating for XXXX optimization the remain of XX% and mix the implemented track efforts. efforts impact planned our of of optimization revenue up reflecting additional mitigate in quarter was measures adjusted to Our We from our impact we cost and margin cost with QX on crisis. the XX.X%, improved

a This we result, would given full-year around our the to be points circumstances. to adjusted be As full-year of as XXX margin XX%. margin which basis approximately view impressive continue operating we expansion, expect

XX our our below still by XXX of end to would of offset we the XXX be reality reflecting This the approximately of basis target, points even original QX, of operating optimization We the year. original points COVID-XX won’t expect strong QX going impact beyond that basis still targets. reflect For margin our compared XXXX. expansion with XX.X% margin fully the to to

this ongoing to a our year continue as aim longer-term to remains framework Investor realize additional and margin benefit we shared to the implement margins we we efforts modernization. and at expect beyond optimization Day opportunity improving for from valid, platform believe also expansion We

earnings million, rates diluted Both or adjusted tax net to $XXX $X.XX, compared earnings diluted quarter. the XXXX. Adjusted $X.XX were per and net and million XX% and our in QX were XXXX. Moving GAAP up QX share, which QX was GAAP of earnings of $XXX is EPS, net $X.XX in EPS to were for $X.XX in from in our QX non-GAAP

XX%. to XXXX, XX% and non-GAAP of remainder expect the we For GAAP to continue our tax and be between rates

ended We while investments with cash our a solid remain debt QX remained to $X.XX short-term sheet, balance in at Moving and billion. position. $XXX we million of our

support we as remain we and Given needed low capital strategy. to capital access additional growth leverage, relatively allocation to well positioned our believe our

that receivables, Moving receivables intermediate-term. $X.XX anticipated ended $XX to that COVID did of as total we last to impact last impact up in near- from we previewed million the some experience from the recall billion, quarter that on QX at quarter We some quarter. in collections

was DSO days XX in XXXX in from XX days, of period. is the QX and up Our days XX which year-ago QX

the seasonally capital Looking continued collectability was operations. million some capitalized to but $XX issue expect $XXX forward, of cash flow higher was currently Free million quarter. $XXX flow for Operating it software it timing expenditures million. issue and cash were than expect not at materially on while we our in million, QX as we was $XX impact impact collections, more and a view do a

half CapEx drive stronger flow. we cash second cash the the expect and of to year, higher operating For free lower flow

capital to Moving allocation.

we mentioned have and acquisitions nature will to such last QX, level repurchases billion the be due current to impacted by remaining investments. which or the activity we $X.XX our repurchase used funding current and quarter, our may as other amount of continue also on As uncertain for We significant still QX. purposes, in evaluate the in program, of authorization of paused environment

program, paid our financial to dividend approval. and our share, program, a us should we in position enable Board to our $X.XX sustained to QX of continue or Moving million, $XX dividend per strong subject dividend

an material transaction, is divestiture revenue. extend announcement transaction approximately I’d earnings. stream, as RX’s full-year comment Cerner’s is into like clients RevWorks to The approximately acquire this This QX, less expected from we annual management on portfolio This The consistent reflect RCM, our Before prospects activities discussed June transaction of in $XX business do million in early RX as have and, revenue timing. that RevWorks the impact factored to the business. will profitable represents capabilities of guidance, cycle a with Cerner have services and we Inc. new offering. have is to to million we the part revenue services but to of guidance a will moving part the integrated revenue expect not close to our on and $XX our

to Moving guidance.

rest it year. results financial precisely affect While quantify the our the pandemic continues operations of difficult remains extent the to to which business progress, to it and will for the

of from QX, As quarter will business second in our generally recurring the able pandemic is this early we subside half pandemic believe with essentially reflects occurred what learned our prior that were guidance the The project demonstrate significant in the and We impact resilient of to activity and we elements. during the begins the the have largest that the assuming the the to during based sales in impact improve expectations tweaks following year period. stages pandemic. to of second on minor

of remains view we amount provide higher While a surges operating territory, unfamiliar would current our that our future, COVID guidance caution results believe subject to it with normal than to to the helpful given is we expected of in still the risk cases. to I investors in continue are recent especially for

through I’ll quarter for and year. the Now guidance third walk full the

QX, revenue $X.X For be we billion. $X.XX expect billion between to and

for remainder approximately close factors QX, pandemic in of The QX revenue QX reflects adjusting is in XXXX of the reflects about pending [indiscernible] and and QX than impact from range divested $X.XXX to of the reminder, which which XXXX $XX expect businesses, not in RevWorks fourth of the in million after The QX of business more by we our and roughly $XX a third in million RevWorks revenue midpoint reduce included global divestitures. flat to from little that As this originally XXXX our is the of range a expected growth million services we sale larger than slightly revenue. a $XX anticipated million quarter billion quarter.

reflects factored and Once The guidance and we expect for RevWorks to our is of in I approximately the Recall and that as in million have would note view year, from For our not RevWorks outsourcing of guidance remainder billion of new billion from we our is current the from impact of the that business, already our range after the divestiture. reflect reflected This updated between businesses, revenue. sale pandemic. million revenue the XXXX XXXX XXXX flat lower in down RevWorks $X.XX $XXX $XXX range approximately the second contract impact of exit of growth the our our of QX included full $X.XX global of prior quarter, adjusting $X.X the second of the global and full-year XXXX large which in divestitures. XXXX half midpoint revenue for divested again, the roughly our an billion. revenue outlook

captured indicated, We in the growth adjusting the and the a solid all impact would we management pandemic for revenue position are is portfolio do parts out As believe for lot result I organic recognize in actions are but of of now the there activities moving taking divested periods. subsides roughly guidance of flat growth. comparable when our us our

midpoint $X.XX XXXX. diluted be QX QX Moving share. we this growth of expect The EPS, to represents to range $X.XX of adjusted to X% over EPS per

from full $X.XX EPS we diluted growth and X% expected expect $X.XX $X.XX, of a to a $X.XX range year, midpoint while to maintaining growth from the of the from of adjusted our impact the our through EPS year ability cost initiatives to earnings XXXX. revenues and for of in and optimization lost to-date. reflects offset businesses The narrowing QX COVID to divested For be over prior reflecting the $X.XX full expected the lower

expense increase billion that activity will we a The our lower are I will growth midpoint this of year. expectation bookings ramp QX, over QX focused to this reflecting solid guidance, conclusion, that, John. are by represents very our as bookings With sequential results we control, pleased and we we second expect on revenue solid leading circumstances, of the given our half offset the being to solid we the to billion. execute as additional $X.XX the with a nice turn to in move year. earnings challenging expected continuing the of through range in over environment. revenue expectations guidance for Overall, with In to view throughout $X.XX Moving the call

John Peterzalek

everyone. Today, an afternoon, Good We the Marc. of our solid business. circumstances, highlights Thanks will Federal exceeding start given high-end with bookings. I’ll delivered on and our results update I range. provide our bookings guidance the

not This of this While given translate mix to a total and feed going in does upside bookings the at forward. of mix in backlog the reflecting XX% create bookings, to XX% did our is services. evident revenue ago, managed year strength long-term level of compared higher it visibility

made, While the were very CommunityWorks volume pandemic several footprints, winning did impact new we competitive new where were the decisions footprints. of

to Marshfield and our cope reflecting of see with a our continue We strategic growth continue the hospitals the competitor bookings with with solutions had at pandemic against long-term these businesses, noteworthy systems, Clinic. across including win relevance activity as strategies. primary larger We Wisconsin-based solid their

Additionally, revenue adding This with revenue strategic quarter. advancing Health of we relationship this our solutions. month we our was another footprints bookings continued with highlighted as announced Banner expansion earlier a cycle continue strong cycle our

a our advancement services standpoint Another services the revenue on puts our cycle expected our positive allowing solutions. business. RX hands recently the clients of of revenue part with cycle related This RevWorks Cerner continued while in from relationship to focus good to of announced the divestiture as is we

tools revenue and our offering to working an will value with with solutions, services strengthen are believe RX proposition. RX’s cycle our we integrated Additionally, we and combining capabilities bring further

vast a frontlines to and healthcare general, and Moving in DOD VA on COVID-XX. our clients Like majority of have of combatting been a the federal.

and program XX,XXX this the hospitals, network XXX less Health activities, us of XXX year, launched qualified labs, a XX, the to launch, on-site VA country their Later of to On enabling partners. Electronic centers adapt will their federally DOD engagements homes significant exchange clinics, information. to information and access While expanded we among seamless, XX,XXX Federal patient secure X,XXX to required expect each programs. X,XXX a continue Since intrusive interactions, health the and VA office, pharmacies, the department make DOD, on virtual Record user more exchange, both DOD providers to across community network. which has to joint health limited and and Modernization and information CommonWell progress Health X,XXX add connect VA to this nursing an Alliance, health than have additional April

and the pandemic. to with work continue We the the DoD go-live update impact for schedules of the VA

continue While VA dates for been move VA and not program forward first with go-live. scheduling we the go-live to centralized VA, announced have solution the go-live revised our

program have Health, side, DOD part Partnership virtually U.S. as we and Coast significant Defense months, including scheduled in the of Leidos advance a for site. pilot progress making the coming On Guard activations working are to the

Now marketplace I’ll environment. this discuss broader how in we and the executing are

quarter, a want while accelerate the last to is strategic we and that they the is cases, been strategy of part Cerner pleased and essential discussed As continue, in pandemic I’ve hearing an some has business from plans their their many plans.. clients disruption our created in are to clear near-term, activity message

continue anticipated very close the to towards quarter. it pandemic end in would activity We as closely is out the the playing the little they then how quarter, talked recovery. had early and the last To quarter. challenges activity of manage we QX impact when increased date very clients of the our with response we working of

of different have is monitoring we are Overall, both and the this believe adapted We the achievable. pandemic, and including point recent our operational to clients impact ways doing financial cases; and closely in business. outlook of surge the at Cerner our

receptive. sales We our have have modified approach, delivery our clients and been service and

most interactions road-mapping houses, sessions. and demos, virtual open to shifted for contracting have activity, We

side, On mitigating performed the well impact services the pandemic. in our professional organization project the of

we to the work call, early possible of stages much on doing in remotely our the mentioned shifted as as As pandemic. last

onsite traditionally Our were approach, clients were supportive of this and virtual. events, go-lives to as done inclusive completely quickly adapted

to a onsite the This limited hybrid be for believe we approach given in efficient capability. be Cerner effective resulting second and model proving is the pleased half effective, levels, with feasible, quarter, increase our overall from travel I future. and the believe are occurred, the we time, re-opening this cost presence continue, will Don. model ongoing our where and I’ll possible Over I restrictions, hybrid and will have before more expect for to approach foreseeable to over In the call and presence against I with will plan onsite travel deliver turn less in however, to As current positioned virtual continue I With combining shifted, our in This the clients. that, forecast than second execution pandemic. summary, we am well to our of the year. the the

Don Trigg

to the showcase yesterday our a afternoon by We leading spend Architecture. The caregivers. the recovery. Health Thanks tell current it data was time, person. revenue very lack patient continues of unified We system and John. of and and We delivery of Chief increase care and care to illuminates what of integrated the what essential pandemic described one as systems need care, and for Executive experience. care same clients. gaps nationwide. These us chance talked dialogued complicate on best one delivery on access frontline had health leadership our team still the decrease the lack into in system chance dove complexity of of to an I also At a about their Network focused team both We the health yesterday response. in of COVID about with to the future region the the the rethink

we are challenges. about opportunity solve to these entrepreneurs, As excited the

only the to our founder Patterson As technology a Cerner’s in and that. is Neal hold change solutions healthcare late framed, promise and name data system

vision the begin is operate common levels: enterprise the process: the any we across Our At healthcare health and Only person, individual. always three Cerner, larger person. network. thing one the and the platform product at with

Our as patient, the whole member, consumer. on focus or shifting a a their and person always their increasingly caregiver as for family a is extended role

the and itself. behavior experience potential – have a must Our over change solutions that healthcare supply time, to person-centric

growth Key Our quarter. in half second have compared strategy partnerships consumer with same and first consumer spot, XXXX. unified XXXX a to revenue business delivered efforts Kyruus solid particular This telehealth digital framework. working. momentum Booked was our with matching with that solid doubling provider industry a is front in AmWell, the nearly bright the GetWell period of with Loop door such all signals self-monitoring leaders within our as

touchless requires. beyond a ensure registration the capabilities provider cost. payer they in as our geographies progress us next As to within Millennium the elevate management of systems-level key critical will solutions total is X/X closer experience global where look ability and COVID, the right information experience a quarter, EMR the have the the important business worldwide. our healthcare are It access made differentiate Cerner person, revenue These decision-making last-mile our the enterprise. provider. we U.S. That’s from better at our person, unifying CareAware the a drive cycle we deliver focus pandemic is access and And we automate lower we and our with and of in provider workflows where where consumer the solutions current with to the workflow solutions. front-end and In here second also to we move engagement patient deployed

full suite As surge over Brent for framed response business for Operations System to CareAware continued XXXX. his CareAware solutions are growth demand COVID both and quarter. communications in in comments, revenue Health XX% our looking pace The also to our recovery. the on critical capabilities as and is second solution year durable solid for our Providers see

the requires but the enterprise and the Cerner Aultman As Health network. well. to drive as level a California The to Australia. look the also at the tackle to larger is think COVID, ranging them or also enterprise, the as like begins In the challenges and enable it. from just University EMR. health increasing across Success what core at delivered capabilities member providers displacements ahead. across platform And also quarter, like was its to health of this Marshfield models. diverse at decade It and it financial of in that Western patient, Health must new to footprints regardless architectural stakeholders our to recognize look payment operational this the pushing building Clinic not architected the solution are offering EMR-agnostic the define market important to Cerner second level will consumer manage the HealtheIntent network and saw of total blocks organizations organizations They in work Southern them multiple HealtheIntent to a deliver to at organizations beginning person, forward

be Finally, potential we the believe our Cerner. next data business to holds the

XX. of to Information business team also of advancement our off base. a demonstration XXX% exceed potential this XXXX their Cerner And academic have target, to on hitting XX our a data, from full-year advanced new The an of racial strong real-world is provider Health Learning determinants active growing small researchers challenges tackle of has in goal cohort projects ranging Network, launched free meaningfully de-identified June Our organizations leveraging of therapeutics. the by aggressive to participating XX and Our over ethnic Release COVID data COVID path at revenue

important As change beyond we forces of the COVID look we secular see crisis, playing out.

to way to is understood tomorrow’s best predict the today’s present. always We lead And that future the future it. is have

will needs client will the to bring solutions come change. next start-ups Others argue Silicon the conversation yesterday my big that wave from contend Some Valley tech. the of framed

provider them that questions. leaders in never With a the or And have over ability impact same call more None argue would turn and more scale. that, knowledge entrepreneurial it. has them our it healthcare will to of new value of them is workflow have Cerner’s our the for the of relevant depth of needed is and proposition the current of been crisis I last-mile generation combination Cerner none IT. However, I XXXX. have mobilizing advance of than to none of

Operator

Our from Instructions] [Operator you. Thank first Dodge RBC with comes Capital question Sean Markets.

Your open. is now line

Unidentified Analyst

Hey, good afternoon. [ph] Thanks This taking questions. the is Tom for on Sean. Kelliher for

of before rather VA you of are that Going when essential? sort what how this more a lifted? little the assuming on-site catch-up implementation, becomes types work some long And can sequential sort I'm give this still active? on continue done still on travel background can completely than these work projects of be can simultaneously of are the a color as restrictions work

John Peterzalek

issues. John. I'll a address Yes. couple This those of is

continuing, background as and the well. plans go-live making site. go And already and continue work we're and So for to the on able go-lives first be preparing subsequent we're can is to

testing other everything So things. protocols from we're and working on

as when on any around able are in on. actually publicly hybrid continue those, of be when made progress on we The plans have we're hearing making about not with So how near But of of But and dates I'm progress virtual exact in activate sometime restrictions to and this public, how more of very been occur. go-lives pleased that go in and given while project, sort we've future forward to we have, would we the proposed, we see the go-live. to we those particularly environment they should other can continue and limited that travel. types we'll already site. And I moving site, something

Unidentified Analyst

of lot of the How R&D on thank one, you. is don’t has amount and kind here? quick, been or spend sounds rationalize kind done there you one like re-focus this what a going opportunities Nice from those the And think some it forward do to past right some of much just is of spend. and you then real

Marc Naughton

company. We're an innovation this Marc. Yes is

our So invest strength to our R&D. widget, in is

is most in necessarily CTO in increasing of R&D this we on Jerome a as reducing innovation can been levels Certainly step deliver current more without it, maintain R&D. lot the focused on work how but that has that spend. been A significantly of from our direction. great hiring of So hasn’t focused

with the to relative platform. to the continue Current think, even think I want doing is us with I on how out for But quickly and the processes develop bank figure goal We more efforts to the something market levels buck we an solution. have, we’re less than certainly get how we can bigger our to that we monetization our we and maintain. we can work get to how for and

margin But R&D. time our expansion So see us opportunities. to I don't get revenue some rest we innovation grow spend we money of over as that the on relative and drastically cutting doesn’t we’ll the

Unidentified Analyst

that’s much. very helpful. Okay, you Thank

Operator

Thank you.

Anderson comes question Elizabeth next Evercore. from Our with

is line Your now open.

Elizabeth Anderson

for afternoon good Hi, guys. question. the Thanks

versus like you to you think term of bunch would longer who between demand it. where say uptick size about are sort any terms is of are terms there environment at that has customer not? environment you of versus or of recent places in not, do differentiation any You able COVID sort look fairly demand of – as seeing Or point all you But more this a looking your around? even are had seeing talked in a forward, the about as are differences

John Peterzalek

correctly, county where priorities of surges a there's terms I term. If of world. that clients are in that surprise understand COVID in different and the there’s been different working what your the This have it come is where I activities think not parts of there's as in surge question on occurring big wouldn't parts the those our And and John. different near

a not initiatives the statement, stopping not set that strategies this and incredibly the distracts. going world. general it broad on, healthcare that my in on is as relevant environment mentioned are they if were relevant new that more Now the I are comments healthcare The of in embarking the is still we’re

strategies So where quickly. in they placed they clients of in the them been continue cases world, recovery. the are the most the frankly advance and wouldn’t have U.S. many strategies part more in big regardless in out or They around of are, that

they they occur surges but be advance strategies. individual to cross yes people want and broadly So as different shifts in spots, remain focused will their

Brent Shafer

built off excited differentiated if one And model sponsor them have than go COVID with which around business say and get have we just Around why that to I’ll we performance a that mix, the partnership dollar Lumeris after of think about the and healthy risk thinking one reasons peers. we people business window risk intent, start the kind obviously, of tailwind to clearly we’re strategies forward. I strategy model about will to their relative to have rather is had relative first provider geography and it taking organizations think more think, were that’s think plans are Yes, about capabilities we that as

Marc Naughton

What Hey from base? you the about Cures John that this seen Act? Have client is benefit Marc.

Don Trigg

clients. set the most stimulus for organizations. there's have there big with our the that Yes, absolutely. had the And additional of that and given will having role role they things health then I those hotspot stimulus financial or impact start anticipate kind dollars on that mean, do fact uniform recovery, And would think of important durable of dollars realities are days. to organizations forward, play dynamics revenue last And I the think beyond impacts be and I XX to point obviously recovery, of that essential their that surgery like. plus think look I the focused coming very relative what does they've a play doesn't on elective John's over the a that

Elizabeth Anderson

cycle terms very be the your That's core your provide a sort be revenue integration particularly were that just of then helpful. follow-up people network, as the the – about Thanks. in wins of you case the with interested can you elsewhere, that of either the whatever new could solutions at additions, of or or guys and helpful? Banner tenth what would question, recent just some And management talk may

Don Trigg

question. great a it’s Yes,

is mind of think right healthcare the management. now as things one So they access top which organization how front every end about clearly of for

you them and through on a it how that consumer, the virtual scheduling, basis think around them for strategies make to easy engage help registration about increasingly. think So

that’s So registration, that that I'm I the talk discussing. about framework touch-less

is point, around there. think that will the we're of They So things about big that have one impact and like area a major of have emphasis. the some intake capabilities front the end it's big, relationship. focus tonic John's RX we And to for excited

to that's delivering that cases And we think our looking of and deploy solutions the that. of derive beyond focal integrated and end, that front, point to and by front capabilities ability the RX obviously of middle today. point blend real from complemented perspective then and opportunity a from in the to So a really services they required that as for for the are our perspective our on Marc's metrics a back Banner we financial plan about some technologies organizations. And

Elizabeth Anderson

Great. much. Thank very you

Operator

you. Thank

question UBS. comes next from Our Caliendo Kevin with

Your open line now is

Adam Noble

Hey you what about. travel, talked will talk some do Adam Thanks Noble you of impact virtual those go-lives Kevin. the how could I of norm for really more those To the for to about in the think a virtual the for for or applications in extent – want And just question. become that go-lives go-lives it’s hybrid revenue implementation? that margins beyond future? your reimbursed kind

John Peterzalek

well. that a in note difficult my answer virtual is in gone Adam it our go-forward. the is the relates I’ll bit more as to context purely complex go-live But of an – get some virtual, that more to mentioned this is general I that it’s the absolute, little go-live stuff. a John it And pretty the comments, actually is in

be as use or we going believe people on And hybrid moving capabilities, I site. don't remote be context model, this of So in forward they've very ones where both a for clients, is to that that out. are capabilities, to clients, effective that we're bring big And our we our virtual cost model, many able only able or quarter, is as limit the as being that our will worked – allow centralized purchase it always frankly, they the a them that more well, working early capabilities we with to in cost support done but more scope the site. the been really purely The ones these well, they should to well. done projects well. with And in did we've not very hybrid in we've go-lives the people these And to capability both that well. for as we fewer part virtual on went travel cost, virtual

Marc Naughton

kind bill half doing When traveling days work. of a back, so in associate, If day work it, full and five essence Marc. you worth we half of an they're is time. they four think we days when about travel a this can virtually, day a they're get out Yes,

in XX% a increase that's So their productivity.

opposed nature, higher virtual margin. and overall again, if and John's continue site for go things cost have we're the remotely, a to XX% point, of that's were all XX% we leverage doing once total much are on doing, to work the there at So to we therefore we If to XX% that. to as efficiency higher that

business for are the opportunities that least world. at in virtual me from are things that somewhat exciting a So those the

Adam Noble

that as considered or you demand, surge telehealth of that market, And telehealth Great. contribution in any participate me guys you restructuring partnership? EMR competitors? from And ways the some similar could follow-up the major finding a to in Amwell what your telehealth relationship revenue have the you given to your remind question, direct get more of

Don Trigg

This is Don.

we think one, think I So Amwell. with health about just partnership than more broadly our virtual

mix person, really we're to physical network. of virtual that’s thinking strategies enterprise So construct, of the the the make activity around and what up is John's to health and going the

to that So we be in we it contributor meaningful have And big will think line. space. strategies a top and investments

of broader the And our opportunities I of settings, the what a we've some CareAware the be we at Amwell think network higher think very as partnership that differentiating. we platform and opportunity have where acuity like virtual. and the to I becomes able in particularly like indicated, that those we looks will e-ICU feel been good view around e-hospital the about capabilities around take partnership, level, of terms market it. But In to

Adam Noble

the Thanks questions. Great. for

Operator

Thank you.

comes next with Our question from Lisa Morgan. Gill JP

Your open. line now is

Anne Samuel

you it's delays see of to return the on VA, given X% the impacting timing the not for target some growth? on of that your X% with Lisa? Hi, VA, to Anne Just the do for

Marc Naughton

the this talked revenue. is basically of line, and over last quarters $XXX as divested we've Clearly Marc. of just is million a six reset year for right. about, Yes, XXXX, worth kind top the We've

on potential margins. really high think we operating and can rebasing have the the we're So growth things organization, drive that focusing

investors. So to we and that to is our very that from point to close I relative shared continue delivering that, part any to think mean, of business on as the an and we important be our as expectations what a we fairly with ones overall that were, growth, saw revenue I particular to track

we talking at get revenue. through the of – client XXXX the have organic So I our getting focus that Don base to growth capabilities that. and reset initiatives our some in growth strategic we look to continues the the rates COVID and of about, to you've when that you kind compliment kind really of rebates think of things got was But talked all the But is creating kind the that we've contribute. to got about, that

to that year, anything think, And number through the be will going for we're see particularly divestitures able the inorganic we've opportunities. XXXX what in I top we'll But business of for those area. hey, strategies, kind talked getting growth growth. are of through for potential well taken think or from to continue strategies growth the about, care there. been we things watch revenue really and the or exit the let line we've set initiatives, of we in year good elements overall, comparables that we growth acquisitions we or Once the lay then half investors, and contribute expectations, growth kind obviously us us asking a looking to changes get the operating through second the of opportunities some we we're I in some out Ideally, which margins first leverage don't let's environment because looking of that our like be should in strategic you with focus have really But to of. the of from of growing. seen. think these been the We drive can the our done, still the up all half opportunities and of and forward get get a consistent

Anne Samuel

new up you finding opportunities the M&A the on opening strategic And for any That's in marketplace your or disruption that then really point helpful. partnerships? maybe to growth, potential is the are

Brent Shafer

great Anne it’s a question.

have talked the about areas some real side trend. of that I business traction and strategic growth the inside So of the

health capabilities very dialog ranging of the particular, and to in in pockets excited and from the CareAware. capabilities in and some consumer been health doing our framework excited out off other hospital that's workforce growth consumer the about we're see interesting around we've Very areas of communication operations about place. think I behavioral playing what

around dynamics by catalyzed been have which of COVID. All

the first say. I that’s thing would So

only provide going for location would to those second all last suggested, acquisition a but capital, means has for to they're our our strategies help second Cerner going of be and faster, interestingly, with to and I stage as those have deployment COVID really the earlier And going access us of about clients base. of look to destination a if to Marc These think The about those in opportunities strategies think build partner the going looking XXXX. into the then market focused as been to half we're move in and of opportunistically that not are on and create accelerated say year, for days. can that terms don't how as by by contextual further things over companies same think who provide we client opportunities which catalytic XX obviously is, we're dimension Cerner access organizations at or thing they of partnership the are

Anne Samuel

Very helpful, thank you.

Operator

Thank you.

Stanley. Morgan with Goldwasser Rivka from comes question next Our

Your open. line is

Rivka Goldwasser

you. Yes, Thank hi.

So clearly but of can color COVID, maybe uncertainty COVID revenue low on a of more trajectory with us just for bit giving little help around the what assumption you range? guidance in a underlying that are lot the the end embedded of are

Marc Naughton

Marc. Yes, this is

to to going as we elements we we're look backlog, what be view able we It work I projects is relative a the rigorous of our we think time. out includes do do. it going those all fairly our at gives to base, on think includes business – our on. us go to includes the It we that of forecasting across that a think that look do That client basis. quarterly activities

wave go And – have anything there's that know in into to don't that don't mode to able they're being everybody – a now. expectations responding COVID, there's most the that in not – recovery mode and be are that's basically, certainly, not of down. a our going of back I would shut of into going so being going that And second clients to built our we

procedures With reinvigoration to back with track the they're the of the of extent at some on a and little bit Act point. some Cures elected this

things change. we're I We're we doing out lot when the that bear, we revenue. got could comes our yes projects that's there's that's don't backlog about percentage tell talking or highly abilities a the of plus those an any If something of on we're that types to of one that's environment not of bringing focus there's activities. And us. revenue doing client's not points, this COVID. our you. recurring specific impacts if and to know So is material, of The things do impact that But the is have thing we're XX% that our

the So a we a that. a have decided guidance again, we've view COVID to because Once But think guidance for that decent think range can perspective. give we us risk business. to like we're puts going a bigger we that from important give looks of view bigger, what of it's people we

I anything – our you volumes. that specific look there's don't really at specific. when healthcare So you little certain some our to very when look And at there's know revenue,

things land. clients the is are able the on COVID impact move of that forecast So forward real focus being we our of our and increase in expecting in to that in are to

going then number, coupling revenue is our any number. this expecting. So, we're and are tracking that not these more I go saying to can cases because be to be just go you precise not to tight that if the might They this

Rivka Goldwasser

should near-term either less forward terms think focus, No, about just like Is we reflection contracts they this going that I coming is just but then of XX% projects, that or is of just away it increased XX% current in talked are on and clarification is right moving of we where steady of environment current it's that wave. about the from the the from And well? of contracts? the these of on because strategic it's spending So kind versus has this just hospital term second of environment, long more it's expect nature helpful, the kind focused state point as like long-term.

Marc Naughton

higher Yes, year bit a little just percentage a is than really from ago quarter. the XX%

Rivka Goldwasser

Yes.

Don Trigg

or if consistent XXs year quarter, would look you pretty is see XX% in across But in upper the you around it everything, but XX%. ago the

So they I bookings John, And these of happens. most an to the some just longer it think if include expansion on comment of relationships. want of term you don't

John Peterzalek

almost and the that expansion an it's complementary as it's the extension current do you new of term the new expansion, of inclusive capability, without as My when inclusive exception, of that well capability. comment that are very would be longer solutions,

So the it's they're not one other, very or comparable.

Rivka Goldwasser

Thank you.

Operator

you. Thank

comes from Fitzgerald. with Steve Cantor next Our question Halper

Your line open. is now

Steve Halper

that us quick was. a million, an there flow on $XX question, was housekeeping cash could just Hi, acquisition what you the tell statement, for just

Marc Naughton

bring company already services the has Yes, that as acquired. we we a offered been extend contacts to a think outside capability an able organization. services was cybersecurity that on can resources our through our in no, clients being that particularly beyond where have us we was and environment focus client existing it in always big can service was But see We contacts attractive those opportunity, of base, that our we security something to current that, that professional us.

the not So not space. about pretty therefore the flow than our we enhancing other capabilities security But lot. it's statement, that a talk small, something really can inside beyond it's cash

Steve Halper

That Thank was clear. you.

Operator

you. Thank

comes Michael question from America of Bank next with Cherny Our Securities.

open. now is line Your

Michael Cherny

or order plan? COVID terms growth more that customers your avenues know don't might that regarding driving also while incremental there the basis. potentially far. forward. details you John various to I in in that response you little it the so Maybe doing build up different a Don, are mentioned anything some of about pursue hole deployment future if the Hey, service to from part that bit capabilities was to want opens long-term your Is much that's for so of the out and thanks COVID acquisitions going of string the capital dynamics at a

John Peterzalek

COVID. of great things would supported growth out like my allocation we kind we've all like. of macro space were felt comments, prior that guess started are the areas a question. capital And by made we’re say tethering trends bets strategic we that saying I'd the I That's to playing that and earlier to I start by in

of I trends of playing acceleration would those pulling out. of seen as that say most have them, So part already were secular forward kind

trend provider to hard never that at loved an back interesting crisis about and So time we stand more an to sponsored to side plan, between business. the pandemic going be never that one provider terms growing a been Again, real crisis step to space more it's BH think dynamics I'm setting. certainly dialogue that that's took take was where to has the what's we and over we real, my a it traction more employer back focus relevant think interesting say, relationship The we space area and the basis focus been like business, and But think isn't line then we interesting control the acute go-forward is up my really This pretty revenue healthy one that's so look on CareAware strategy. going business time, has around employer over a when on trying and space going from the there. think that where in intent as interesting. I'm and probably that The to providers forward. how they looks three-year look area top of assets work probably a of a and perspective. before And through employee and of

absolutely strategies think around space tethered what's in the just if to were there that feel of to them, cyber, to business of out, reiterate going has because what larger playing have out that And acquisitions area they integrating said like their like them we're macro there's to of kind we I And were them set of leaders up strategies. most through in accelerate earlier, been then an those each look think, playing individual accelerated. I got but dimensions So larger main, we've opportunity absolutely finally, using I trends to and then those growth that. in us capable do for acquisition, scale are to an to

Michael Cherny

you one or investment that's any very would there any exploring the more has event acquisition availability And have, been mentioned whether or just internal been along? more that, clean. follow-up potential it's thought Marc, capital the the something you that sizeable, openness Is as balance a long to utilization obviously quick come sheet the to balance an a sheet in of

Marc Naughton

sheet talking given powder acquisitions. to was Lumeris start be balance smaller we balance But made to are that larger do an well mean, sheet. was, see Don about area that was we similar traditionally sponsored strategy plans. investment part right? a we kind have done available, be growth, our of some able that our tuck-in dry have a of I is we to think as situated So strong sizeable. provider I what Sure. looking things might more at We've

As most of you increases moderately difficulty. know doing any M&A that size the transaction

a thoughts. So and some big doing things our impact leverage that can growth existing help certainly of on have our

on give things primarily innovate that some the growth. that we little the But where going in own of ideas. we So talk, to the our area, if would don't want you the that And Don, about, is know want issue that talking – modernization. the think, to we're create he him strategic hit one can data Don's to we just Don for probably a for in can millennium acquire. in Once bit topic think I things again on don't invest things certainly I data looking space. was things list The we're additional would certainly I millennium, be put the

Don Trigg

of good interesting where of Yes, example, in terms it's think, thesis. of been I has COVID reinforcing another

how business, workmen's virtual from it's if look traction insurance, information of and release of information touchless legal got an and you of that life comp, do lot of organic So it. for the and trend around at side to perspective, release a

unique it to aren't participating to at that could very to impressive setting of economics. and catalyze going XX absolutely on space research it research data strategies year these health in team are structure do the Marc's around if interesting year. about a we time advance forward, what the mid that acquisition analytics to what's playing contextual would. organizations use around are to move going participate for to COVID. as that And opportunities from multi interestingly year. I that a tells or achieved network things in a more are that organizations in perspective, out Many point thinking an that them see those a of with things up me against accelerate that full we there with way goal And is are And basis. quarter and think half the I be learning some to the point first mean, COVID, under in

Operator

you. question from Jeff William Thank Blair Garro next our And Company. & comes with

open. now is line Your

Jeff Garro

area couple the couple Hi, afternoon. bookings a mentioned good of in the me. of as from Thanks positive times services Managed quick taking a were questions. A ones quarter. for

should curious, indicator what's I for is a platform I'm and that what mostly we modernization? positive expect driving hosting So view how demand long-term would for as a

Brent Shafer

hosting in of solutions well of managed most things of in but services. surround terms involved in it we type is some So our managed as there's is as other it – with there services, involved that,

services view extension related and I ways directly to many expansion in of expansion So solutions. managed and extension of

for incredibly positive an all So there. solutions run we care and thing. it's for put We to me, support out need

Marc Naughton

Marc, And clients when cloud for those of moving we're our solutions the are are extent this indication a hosted positive it's the right, to element using private essence, definitely cloud, in who hosting, to is is the a it. because

the able work infrastructure having a someone depend used else And high and handle be they do and on that the reputation we well-earned. industry at very have So that to are all in of of that to reliability. level

of more the future. is go as a positive forward definitely a we cloud-based to opportunity it in So

Jeff Garro

the sense. Great. licensed larger there's SaaS just offerings the receptivity second to change providers. environment for if any one given require software That expenditures is for makes that me capital curious from in would current John, client And versus probably

John Peterzalek

won't speak will I Yes, but to the side, capital the to I side. speak receptive

for think of as of It's of is they being very and and pay really use lot specific that interested what And are you a use it. sort interest I offerings. go they how is in what clients model. a intentional in type just there SaaS

offer which attractive model, So, they offering, use. solutions in and what the we consume yes, or think SaaS do allows SaaS is the I model people to business of many our that

Marc Naughton

half remind SaaS license our Yes. still. that revenue just of I'd is people today

Jeff Garro

guys. answering Great. Thanks the questions for

Brent Shafer

Sure, thanks.

Operator

Nephron with Research. Percher from comes question next our Eric And

open. line Your now is

Eric Percher

Thank any impacts COVID million, you projected the number you. $XX Thank similar you. give Marc, I something last had believe did to for million around you $XX quarter?

Marc Naughton

I I do not if recall did.

Allan Kells

precise of little flowed we a really less like There's adjusted similar impact to a we and for our it's through Hey forecast looked differently projected for that that than year, travel had the reimbursed difficult our point think rest essentially for – this give that. at what the of I things and number, bit is a but is Allan. was Eric, half

most I'd amount missed largely we guidance. the RevWorks our inclusive out the business, of covered buy of the for to of other the part, sale of is say the to the rest taking relative than rest our So change

Eric Percher

convert revenue, any be changes you back Marc, tell seen, it we how through into weakness helpful, you've And plan, risks in That’s would that us as way you've in you. to book-to-bill? do the then can bookings meaningful that. or thought the Got changing necessarily anything about areas might it feel doesn't of but into of the backlog terms what think the like

Marc Naughton

are and XXXX those that doing Yes, right? chunk So I mind think of in them, things any RevWorks kind that many have – in sales we move of have we're a now. certainly not forward of as them historical re-settle keep bookings

deliver you're little challenge we're we're at the of than way up type are a So point terms with we're is we're the be that's to to of backlog, some – based on bookings that going revenues. growing making didn't will And Clients the resale have. cycle foresee through can't it adjustments of see tech there. to QX, environment. completely are things what of that just or of based XX-month booking cliff on that is have I kind the on view a see seen. have is that you we to again, a us reimbursed once lower. bit is you still of and they clearly be hard fall XXXX, our rigorous bit we're view. taking was more best an mechanics trying seeing everything bit think going of off as bookings But But I give in are excited to to we can which what a significantly rate that sales rather I we our our didn't going are than work Once help that's the more about from impact COVID travel to pretty doing mean, or the away continued the active care pipeline, our clearly, and things, go little we've growing it's above you quarter forecast. of of tactical, other little a excited in And comparability type certainly does opportunities as bookings appropriate based ratio. on And the did. we've get here our based mean, more caution things going to Clearly them what to given.

where impacted. being deliver at impacted federal are going by view it based COVID, that. the we on that business somewhat on track for things is to still to but our the expect So Even be is current we're

our So based is view our is guidance plans. our best on plan our on and based

time. provide So that's the best we at this can

Eric Percher

Thanks, helpful, the particularly that's federal Thank commentary. you.

Marc Naughton

Why more question? don't we take one

Operator

question George Bank. Thank from that you. And Hill with comes Deutsche

is line open. Your now

George Hill

team buy of in guess, one. of macro of afternoon Don thanks sneaking guys. one the wire. I'll kind Marc And and the I let me good under tag COVID for the feel environment Hey, themes this clients. the we is to to visits perspective guys telemedicine. a talk used seeing been you relationship know guess how your guess, I you kind about that I with from the this monitoring talk there. I are talk can telemedicine that has the from City, the remember something you have when demand like build talk I health initiatives it? And pop centers do out Kansas to just when still about we fly, we come could of and would patient I you approach you have about to guys own? versus about well. guess And maybe centralized

the guess, that telemedicine is to the how that thank as you bridging, complicated. trying But think business? Just relates what view I to view guys are of I of prior you. What about, business know post-COVID? was that was future it

Don Trigg

health sort he of long the Maybe it, and concept time. system wants can. company think, system this and if to health on to one of or for I questions, been foremost, good But is start a of George. first virtual central some amplify and Marc Nice that's I'll the of thinking a

we've strategies had to that other the we've dynamics intensivist low settings space. We've virtual over strategies around iNet acuity right, in You're both and in strategies experimented years. the with had tethered

the expectations pretty have we informed clients relative on all in are what experimenting are got administrative different shifts a reimbursement, So I out. accommodated think going supply you've takes deliver licensure, that organizations in it think major the things around look about what Having said and to opinion, are those strategies. a And in to provider with a side like. my environment shift to lot Tela, playing of I a view,

and we are the up day, sophistication then, look areas of ends perspective. and importantly, end can pursuing think with of would where to the a) that to the think we're just areas the I I sensitive most level it better particularly a the John solution reimbursement about in think to BH, certain we're multiple we to looking physical think that said We that and areas capability network John the this create regulatory setting for. to it acuity the contextual niche for netting client combination for going enterprise importantly, very strategies of be what So At around them earlier, like tether up profile higher is: what at virtual the model. out these to total areas for typical with margin And particularly the and that space, the being means George and end that around like, conversations from organizations something have have current they to telehealth in environment.

accommodative around security back. things the like will we environment right So that cyber have swing that now, and pendulum

environment. we cybersecurity, regulatory will so different like Tela, a opportunities to administrative we've made And need in think strategies see to what and for where interesting create sensitivity contextual investments about increased to big areas it us go-forward like for as like the strategies look

of have and line And going So line. something it. to binary it's have the We top buy, or we that's we're dynamics we I a things create line interesting think to tangible on mix build are going strategies multiple do as have strategies going to afoot. top think think, not to impact those as bottom to

George Hill

on Thank check guys. I'll Okay. that. you

Brent Shafer

Once thank Good please their for afternoon. I families. be yourself Well, this take time safe and care afternoon. again, to you. your Thank want everyone and of

Operator

this Ladies today's gentlemen, participating. and you Thank for call. concludes

You may disconnect. now

CERNER (CERN) 29 Jul 202020 Q2 Earnings call transcript