Q1 2020 Earnings Call

Of the cast late business, including but not limited to guidance for the full year 2020, new sales or our ability to bring new innovation the opportunities and impact of <unk> on our own operations, our ability to sell our operation operating reason.

<unk> opportunities and the impact of covert on our customers business and their decisions to by certain benefits or Institute work.

Force reductions retentions of existing customers gross margins and operating expense trends cashews future cast positions and the impact of management charges.

<unk> and changes in the growth strict energy of the company's performance. The statements are made as of May 7th 2020.

<unk> and reflect management's view and expectations at this time and are subject to various risks uncertainties and assumptions. This call is replayed. After may 720, 20, the information in the code may no longer be current are accurate.

The accompanied us claims any obligation to update or advise any forward looking statements. This call contains financial guidance, but the company will not provide any further guidance or updates on performance during the.

Quarter.

<unk> unless in a public forum. Please refer to today's press release and the risk factors included in the <unk>.

Important factors that may cause actual event or results to defer materially from those contained and Castlights forward looking statements. Today's presentation also includes certain non gap metrics such as non gap gross margin operating expenses operating loss and net loss.

Her diluted share that the company believes aid and the understanding of cast.

Plates financial results and reconciliation to comparable gap measures on a historical basis can be found.

When a call over to <unk> C.E.O. of Cass late May.

Thank you all for joining us before getting into a review of the quarter I want to take a minute to recognize that these are extraordinary times as the country and hers. It's for the public health crisis in more than a century. It it's critical that we acknowledge the uncertainty but act quickly to enable.

The business to drive.

Even greater impact in our mission of helping consumers navigate healthcare I want to think the entire Catholic team for the focus and the fortitude that they have demonstrated through such difficult times. Our teams rapid response to cope at 19.

Over the last eight.

Weeks has had real measurable.

Mm.

Packed and is a demonstration of the company's ability to innovate execute and drive businessmen.

Click health crisis, but the new world that covert 19 created in a matter of month. It is imperative that we evolve our solutions to serve customers and users in the extended post Cupet 19 outbreak world with a clear focus on the needs of our customers. We are confident that our technology advances.

<unk> innovative thinking and nimble execution will generate positive business outcomes.

Our first priority over the last eight weeks and going forward is of course on keeping our team save well also ensuring business continuity.

Our entire staff has been working remotely sensed mid March including our call centre employees. Despite the changing conditions, we have experienced no impact to our ongoing operations, including support insight reliability.

Our customers are very much at the forefront of driving the employer respond to the pandemic, we have supported them in multiple ways, including Coven, 19 employee education and communication analytics and support.

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Vulnerable populations and rapid access to breed digital health resources from our ecosystem.

The full breath, a virtual care solutions and it's simultaneously demonstrated the power of coupling the rich data underpinning the platform with a console paid of approach.

We realized in the early.

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Which is now being used by health plan State Health Department.

And provider to increase to access the code at 19 testing or.

Mm.

Solution is also helping power the Google maps covert 19 testing solution.

<unk> are uniquely positioned to support our employer customers and their employees as they returned to work and navigate a new normal we are optimistic that despite pressures to cut costs that employers will place greater value on a platform that can both provide trusted credible information mission, but also enable friction.

With access to the growing number of virtual care solution.

Petitions, which we'll we'll discuss in more detail. Shortly we ended the first quarter with annualized recurring revenue or air are of 142.4 million. This none.

As a result of life sales and one early term.

Mm.

Health plan partnership and number for continuing towards financial sustainability.

With regards to our direct to employer business. The first quarter has traditionally been a seasonably light sales quarter, but it was particularly like this year.

Due to several key prospects sales cycled being a long gated as a result of benefit leaders focus moving to their internal code that 19 response, we are optimal.

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<unk>, we have shifted to providing the free services I detailed earlier, such as the site finder symptom checker and analyses the prospects these have been <unk>.

Then implemented by several employers.

Practically we have moved planned events to virtual webinars.

Several of our key large clients and Q1 that that it's important to know that we face to unplanned challenges going forward. The first as a reduction in workforce.

Existing clients the second his potential acceleration of churn due to budgetary pressure to conserve cash by eliminating benefits regardless of are a lot that said, we have made demonstrably progress on the fundamentals of retention.

That we have highlighted as priorities.

So on past calls.

First operational excellence this <unk>.

And strides in streamlining some of our data pipelines, which we expect to continue to reduce the operational friction.

Gently or why we continue to both create and validate are are alive with new case studies, we shared that we have hired a new V.P. of analytics on our last call and her impact has been significant in just a quarter. She has implemented expanded technology to help us enabled clinical condition based R.Y. analyses and preliminary.

Analysis.

We expect to share with customers. This court.

There we are.

Seen medical costs savings of approximately two per cent for low worth users and 7% for high risk cohorts misrepresent, they real step forward for us a mess.

19 solutions and foresight around the credit quality of testing and returned to work support husband noticed and appreciated by our customers. We are actively engaged in partnering with employers to support fit for work and return to work strategies with technology.

Finally relationships, we have made significant strides with our executive.

Engagement program bolstered by.

<unk> 19 efforts that I've included a weekly digest, that's that's more specific analyses and we.

Yeah.

Number two we successfully launched our first set of clinical use cases and number three we finished the build out of our Salt Lake City facility.

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Isn't a meeting or development milestones and we were also able to six.

I've taken advantage of the opportunity to offer a bundle up Cove at 19 specific care guides services at no cost to their most vulnerable populations.

Approximately 80 per cent of care guide calls have been directly related to code that 19, including benefit coverage symptom checker and testing. The other 20 per cent included guidance related to delayed elective care and pharmacy management, we chose to pause some of the outbound care guide support for services related to gaps and care.

And other services impacted by the delays an elective care.

[noise] from a new health plan partnership perspective, we.

You were saying positive momentum in early.

He won but similar to our.

Or employer business, we have seen a slowdown in deals moving through the pipeline since March. Similarly, we have had our pipeline building events canceled or shifted to a virtual format. We have supported health plans with access to our testing site and specific analyses on vulnerable populations, including medication that here in some.

Port.

Continued to believe in our ability to support plans and deliver real value.

We have observed some health plan pushout planned R.S.P.'s, we are actively engaged in multiple opportunities and believe that Cove at 19 has created more visibility on the need for digital platforms.