Q1 2020 Earnings Call
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Ladies and gentlemen, thank you presented by the conference is scheduled to begin momentarily until that time your lines will again be placed on music cold. Thank you for your patience.
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Greetings and welcome to the Caddo since 2021st quarter Financial results Conference call. At this time, all participants are in a listen only mode.
Question and answer session will follow the formal presentation.
As a reminder, this conference is being recorded.
Before I turn the call over to management I would like to make the following remarks concerning forward looking statements.
All statements in this conference call other than historical facts are forward looking statements. The words anticipates believes estimates.
If that.
10.
Guidance competence argues project and some other expressions typically argues identify forward looking statements.
These forward looking statements are not guarantees of future performance.
But may involve and are subject to certain risks and uncertainties other factors.
That may cause effect.
Hi, This is business financial condition and other operating results.
Which include but are not limited to the risk factors described in the risk factor section of the form 10-K and form 10-Q as filed with the FCC.
Therefore, actual outcomes and results may differ materially from those expressed or implied by those forward looking statements.
Got it says expressly disclaims any intention or obligation to update these forward looking statement.
With that I'd like to turn the call over to Tampa, Pfizer, Chairman and CEO of categories.
Incorporated please go ahead parent.
Thank you.
Welcome everyone.
Hey, as mental health awareness month.
As you like we've seen in recent reports the cobot 19 pandemic has elevated anxiety and caused the negative impact to mental health across the nation.
The psychological told in the country will be justice prolong the economic one.
Please reach out and engage those who you know are suffering with mental health issues, including loneliness and PTSD related to so much mortality in the community.
With me on today's call or Brandon Laverne, our Chief Financial Officer, who will review, our quarterly results and Kermit Aerostar, President and Chief operating Officer, who will join US for the question and answer portion of the call.
Curtis has performed extremely well in the first quarter delivering revenue of 12.3 million, which represents an increase of 81% from last year.
Eligible outreach pool reached 145000 at the end of March 34% from the end of 2019.
At the end of Q1, we had 8600 total enrolled members up 23% from year end and up 175% from Q1 2019.
And recently, we had more than 10176 total enrolled members up from 6996 in Q4 and across 25000 members from inception to date.
Our net enrollment or the change in the number of members currently being treated and on track increased by 1604 in the first quarter versus just 171.
In Q1, net 2019, an increase of 838% and for April alone that number was 1339.
We continue to expand are on track a footprint in the quarter add in California in January as well as Colorado, Washington, D.C., Virginia, and Louisiana in March.
Subsequent to the close of the quarter, we expanded into Indiana, Wisconsin, Kentucky and Arkansas in April.
Track is now available in 30 stage and our nation's capital and we anticipate further expansion throughout 2020.
Coming out of a strong first quarter with great momentum behind us we're confident that we're on track pun intended to achieve our 2020 full year guidance of at least 90 million in revenue.
Looking a bit more broadly we have made a number of operational improvements recently to include number one.
Increasing the speed at which we process data from a 2019 average of approximately 22 days of bio receipt to loaded in operational systems to about 10 days with a target of getting to five days by yearend.
Number two.
Working to ensure close alignment of resources with enrollment objectives as we enhanced our leadership team.
Three.
Instituting new member engagement performance and hiring standards to improve the experience and performance of our member engagement step in driving enrollment.
Our enrollments per member engagement specialist improved from 15.6 in Q4 2019 to 17.8, Q1, 2020, which equates to about a 14% with March performance at 24 enrollments per member engagement specialist.
Or roughly 54% improvement from Q4, and number four accelerating hiring and balancing resources across both the member engagement specialist and care coaches to ensure the capacity to enroll new members accelerated with demand.
Alongside these operational improvements co bid 19 has created some unique opportunities for cata says.
The shelter in place orders have led to more people in our outreach pool being up their homes, which makes it easier for our team to reach them.
We had record highs of reaching over 20000 members in March compared to an average of approximately 13000 members reached in January and February and 5200 reached in the first quarter of 2019.
Further these people are currently more open to accepting help then they previously might have been.
This call good related opportunities combined with the operational improvements we implemented have driven our gross enrollment numbers to record highs averaging over 360 gross newly enrolled members per week in the quarter. The momentum we saw in the first quarter continued into April and which we averaged over five.
100, newly new weekly enrollees.
Throughout the first quarter. We also saw a decrease in disenrollment month to month with March heating loads of 9.4% and then April coming in even lower at 8.9%.
Its March and April were below our trailing 12 month number of about 10.8% monthly we believe our multi modal engagement approach plays a crucial role in a role in lowering Disenrollment and we are pleased to report at 64% of our members about twice as many.
As in Q4 2019 are now using our free texting services to stay in touch with our care coaches.
We've also continued to focus I remember experienced throughout this complicated time.
Record call volumes have played many tele health companies brought on by increased usage of Tele medicine during the cold bid 19 crisis.
These companies are seeing their member experience golf scores fall in the face of multi our weights for medical professional attention.
We are pleased that our member engagement scores have actually increased this quarter was on track members rating there cat assist care coaches with a net promoter score of 79, which is up from 75 last year and compares to apples 72.
Amazon at 62.
Starbucks at 77.
On our last call I introduced you to a number of new team members.
Over the past few months, we've continued to strengthen our executive leadership team and I'm pleased to say, we've made great progress in coming together as a cohesive and aligned teen and continued to execute operational improvements and delivered the highest possible service to members.
I believe we have us very strong team in place to navigate and capitalize on the tremendous growth opportunities ahead of us.
Looking forward, our pipeline continues to build and putting several meaningful opportunities with leading managed care providers.
One national Medicare advantage plan that was previously delayed looks to be on track to launch at the start of the third quarter and we are in dialogue for significant expansion within existing partner, we are continuing the design of new on track.
[noise] easy area pilot.
For congestive heart failure or and C O P D.
With the objective of launching two new pilots in the second half of the year. These pilots if successful will afford us the privilege of serving more members within both existing and new payer customers in 2021 and beyond.
At CAD. It's just we have built a platform for growth not only are weak happening in our 2020 results, but given our outreach pool visibility planned expansions and new customer launches, we are shaping up to extend our 2020 growth rate.
Into 2021.
I'll now turn the call over to Brandon to review, our first quarter results in more detail Brandon.
Thank you Karen and thank you to everyone for joining us this afternoon.
One of the things that excited me most of back Adesis is a highly unique position in the market and a tremendous opportunity ahead of us I'm happy to be on board and look forward to being part of this exciting story.
Turning to the first quarter financials revenue of $12.3 million increased by 81% compared to the first quarter of 2019.
The growth was driven by our continued expansion of the Ontrack program with our existing health plan customers and accelerate enrollment of members from existing and new health plan expansions.
As Terry mentioned, our net enrollment increased by 1604 in the first quarter versus just 171 in the first quarter of 2019, an increase of 838%.
The net enrollment increases were achieved despite updating eligibility data in January which enabled us to descend roll 1245 members in Q1, who lost their health plan eligibility a natural phenomenon that occurs each year.
As a reminder, when a member loses health plan eligibility catalyst will not be paid for the Ontrack program by the health plan.
Quickly dealing with us uncontrollable dis enrollment and enabled our member engagement specialist and tear coaches to focus on the enrollment of new members and minimize any negative effects on a revenue.
In addition to the normal eligibility decreases in Q1 that come from updated health plan coverage data. We're also experiencing the potential impact stemming from covered 19 as it relates to declines in medical utilization.
While we believe it will be temporary in nature, we do anticipate some near term effect on the size of our outreach pool as lower medical utilization will cause some members to lose eligibility to we're on track program.
To offset this potential headwind we're in discussions with a health plan partners in regards to lowering the utilization threshold as medical utilization could spike significantly later in the year.
Our gross margin for the first quarter of 41.4% was flat sequentially and compared to 55.6% in the first quarter last year.
The year over year decrease in gross margin was due to continued investment in member facing head count such as care coaches and member enrollment specialist just for current and anticipated growth and our outreach pool and enrolled members.
We expect our gross margin to increase overtime as we optimize our operational efficiencies and launch new helpless.
Our operating expense of $11.1 million represents 90, 90% of total revenue compared to 92.5% in the first quarter last year.
Our GAAP net loss of $7.6 million or a loss of 45 cents per share compared to a loss of $2.9 billion or lots of 18 cents per share last year.
On an adjusted or non-GAAP basis, net loss for the first quarter was $5.3 million or 32 cents per share compared to a loss of $1.9 million or 12 cents per share last year.
Adjusted EBITDA in the quarter came in at a loss of $3.6 million compared to a loss of $1.5 million a year ago.
On the balance sheet, we ended the quarter with cash balance of $12 million and long term debt of $33.3 million, our cash flow used for operations in the first quarter was $4.6 million.
To echo terrorists estimate we feel very confident in our ability to achieve our previously stated revenue guidance of at least $90 million in 2020.
I'll now turn the call back over to turn for his closing remarks Darren.
Thanks Brandon.
And we're happy to have you and the team.
This was a very strong quarter, both operationally and financially and we made progress on our growth priorities for the year.
This first quarter momentum puts us in great position to achieve our full year goals and I look forward to updating you on our progress along the way.
Kurt Brandon and I will now open up the call to your questions operator.
If you would like to ask a question at this time. Please press Star then the number one on your telephone keypad that star one to ask a question.
We will pause for just a moment to compile the culinary roster.
Well first question comes from the line up Daniel Carlson Tailwinds research.
Hey, guys that congratulate great quarter. Thanks.
Thanks for taking my questions and I guess the first one on my mind is probably not a lot of People's minds, just about that report that came out yesterday with some assertions.
In there and just wondering what you can speak to about that.
Uh Huh, we're not going to it really dignify it too much I'll, just say something a blanket the on it it's a nameless author.
At a nameless site.
That's nine months old quoting anatomist sources.
And he's recommended for or whoever for companies in the last year went up 58% from the initiation the others up 136%.
And I, hopefully, we'll ours will be up more yes, 40, roughly 40 contentions.
All right there factually wrong blatantly misrepresentations significant on missions and Dr. documents or I think our numbers and growth.
Speak for themselves, particularly when you look at how many members earned in the program today.
And look at the net enrollment and look at April compared to the all the first quarter I think a the numbers just speak for themselves and no not necessary to address anything about it.
Yeah Okay.
I appreciate that.
Moving on some more relevant stuff then question about your technology spend in the past you referenced an increase in that and I'm wondering if you can speak to your current level in that.
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Well, we don't breakout or we don't break out the actual numbers, but to put in perspective, we have in our digital technology group.
Led by Jeremiah Stone, we have 60 people data scientist AI Engineers software engineers product user experience technology operations and support cyber security.
We will continue to add to that group, we will continue to invest in our AG platform and our catalyst is pre platform.
But it's a significant portion of our overall spend and we expensed as incurred and it shows up in our SGN eggs were an asset light company.
Thankfully [laughter] by design.
So as an asset light company, we invest in our people and we have some of the top people in the country.
So I'm guessing that.
That's something that is what's driving a lot of this new.
Success in the in the new member.
Okay.
You gave guidance at 90 million way back in November it looks like you're eating that guidance pretty beating your internal forecast pretty handily any any reason why you're not increasing guys at this time.
That's an excellent question [laughter].
As you point out we gave guidance back in November.
At the time, we were anticipating the national Medicare advantage plan to lunch.
And that's a significant part of our numbers.
Now given that it's going to launch and we believe it will launch in the beginning of the third quarter.
And given how everything is always sloping.
The numbers will contribute a lot more next year now to put in perspective, how far how concerned are we thought at the time.
Was.
That was 90 million a guidance discounted off a much bigger number.
You know something close to 25% this card.
Things are still obviously as you point out we're ahead of our numbers.
But we always point out that in this given that we're dealing with some of the largest companies in America and just the natural Dragon and time to actually even just and execute a contract.
Although right now I can say with respect to that National plan. We are in the final week or two.
Getting that deal signed in and out.
But so that'll be backend loaded so that impact our numbers. So I don't Theres no given we're comfortably ahead of our guidance.
We expect to beat our guidance.
But we always want to add that caveat, but what's interesting to me is the growth that we're seeing this year I don't see that flowing next year, either and and as I pointed out on the call. We have seen tremendous visibility based on the outreach pool based on where we think it ends a Europe.
Gotcha and then last question for me so a lot of times I'm hearing investors comparing you would love Bongo.
And you guys it to the leaders and Tele health right now and them the market. How do you see cabinets is relative to a bango, though.
In terms of the Cherry picking comments you know.
Or algorithms injustice medical and pharmacy claims from our customers and look at utilization patterns very broadly.
We don't purposely include or exclude any specific types of.
Utilization in fact, one of the most common questions, we get from clients in that Cherry picking his around individual surgeries and there is a specific pieces of the algorithm that exclude any individuals that have had a surgery where that represents.
More than 50 per cent of their impactable costs.
So we're actually screening those individuals out.
Similarly, when we actually look at the results of our program, we actually don't exclude the cost of those surgeries. So we're treating it equal both on the input side as well as on the output side.
But there are no there are no specific parts of the algorithm that that that cherry pick pedal.
Okay, but the medical utilization discussions.
Yeah in our data so far we haven't seen anything in in the client data that we receive we haven't seen anything drastic out of the norm word processing. The files for you know for our May or May runs now and there'll be up loaded in the next and then.
A few weeks so we're eagerly awaiting to see what happens there where cautious because of the general you know reporting of decrease medical utilization and we expect to see some impact, but we don't know how much at this point.
So we are Ah working up analytics and working with our customers to see if we can temporary lower the threshold.
Make sure that from a clinical standpoint.
You know we can address individuals who were previously eligible but because they haven't been able to access medic medical care have fallen below the threshold and we've gotten some you know some good responses to the concept so far.
Okay, and then tear and I know you and I have talked about this and use spent time this item in various meetings and you know maybe on calls previously.
Obviously, you you potentially had some business with you and I did helped at one point.
Maybe you can just read visit what happened there and then a second follow on there's some square on the talk of pairs and clients baby address the and.
You know commentary from yesterday.
Oh gosh.
I don't remember too much specifically that report kind of dismissed a pretty quickly.
As far as United Health, We had a master's service agreement with United Health.
And which is the medical insurance are and we had a.
Statement of work contract with optimal.
We were this was about a year and a half process.
And then I need eve of lunch.
We were told that they opt and in that house have to enter into an inner company agreement and how did divide our savings.
That process, though is.
It is going to take them on.
Then after nine line again on the eve of allegedly launching.
I've been notified us in independent perspective, optimal is essentially bringing our service to United.
And kinda as an intermediary if you well.
Yeah, It often notified us and said that they cannot come to agreement.
And how they're going to divide our savings.
And that they won't be able to contract with us going forward and that we should talk to United directly.
Now it's fast forward, we are currently engaged with both optimum and.
Most importantly for us.
United.
And we're cautiously optimistic that something will result from that and then not too distant future.
And started and some we were launched a very small way with anthem in California was in southern California in fact.
We were.
California.
Most of these plans are divided state in two different entities by state or multiple states, California was very happy with with the program I'm very excited about the program.
The national headquarter behavioral health C.M. all.
I wanted to freeze our program and then.
[laughter] when he told us that they they did at this time they weren't going to go forward.
The next week, they announce the acquisition a beacon Hell.
Now.
We're.
We believe that are.
Considering now actually we have more data more support greater value proposition clinical value proposition grader as the industry knows matched pair analyses.
That prove out the African see of the programs.
We believe we can get every national plan ultimately <unk>.
<unk> well, we also know is that 97%.
The members that we're targeting have not had a behavioral health visit in the last a year.
We also know that greater than 90% of these people are not touched by another program in the plan.
So it says that to the plan and again everything takes forever in this industry. So that's just the issue.
And then we've we've.
Ooh sedated that many times in the past, but that's a hunk of savings and that member engagement and that improving the health of these members is just sitting right. There for the plan and obviously, we think that most rational reasonable plan will take advantage of it.
Okay. That's very helpful think is and then as we think about my my last question. Here is you know maybe the comments on the expansion.
I guess are there.
Are are there any signed expansion of the that maybe are not included in 145000 outreach pool.
Or how it should we think about that and are the expansion is just with.
On track a client or are there expansions with other clients as well.
Oh, what a correct answer that but let me say before I turn it over to occurred again.
Tend to United how and opt.
Oh and put them on the spot, but Kurt was president data science in analytics at optimal which is a very important division. There. He has very deep relationships that both optimum and United Health.
And obviously he made a after doing his own due diligence extensive due diligence.
Also obviously made the decision to become our president and Chief operating Officer, and I'm sure glad he did and also I like to point out his insider purchases are quite significant the biggest inside or purchase as we've seen in our our I'll try to me in our company history and you've spent.
A considerable amount of money I don't want to embarrass him, but not on did he by fact, but also some of our directors have also been <unk> purchasing stock in the open market two or three of our directors have it actually.
So occurred I'll turn it over to you about the Richards question.
Thanks again, Richard so in terms of expansion signed versus not there are some additional <unk> signed expansion that will be coming out with some of our largest customers throughout the rest of the year, but they're also some opportunities with those customers.
That are in process and not get signed and none of these are included in a 145000 that you reference to this point and and we will update outreach pool, obviously as we go forward in terms of the second part of the question around beyond the the first couple of customers.
We're actively pursuing.
Expansions in particular in the Medicare and Medicaid space, because the people that fit our target profile of high cost individuals with multiple chronic diseases and multiple behavioral health diseases have much higher <unk>.
Rates in both the Medicare and Medicaid books, and so we are aggressively pursuing conversations with target expansions with a handful of other customers in the second half of this year and potentially early in 2021.
Okay I actually do have one additional question if that's okay. Karen since you brought up the diligence with respect to occur come in and can you talk a little bit about the diligence that was done by Goldman Sachs, a specialty lending when they invested.
And that that component last September you know, maybe you know how expensive it was or whatnot.
Huh It was painful [laughter] I I've been involved I like I've been doing this I started at Goldman Sachs. When I was 20 years old.
Back in 1981 area.
I've seen a lot of transactions I've been involved with a little some of the largest deals throughout many decades I have never seen such exhausted due diligence any transaction I have ever been apart directly or indirectly. It was exhaustive I joked that they certainly.
Okay.
No the ins and outs.
Every I.N.T. and this company probably better than I do.
Okay. Thank you.
For next question comes from the line.
Dodge with RBC capital markets.
It may be started on the the enrollment trends <unk>. The the 1339 net number you gave for April it's a big acceleration from the pay some of the first quarter.
How sustainable do you think that hey is over the coming months I you know I guess, how much about do you think it's it cobin related as you said, it's it's a bit easier to get people yeah on the phone or get a hold of them now that everyone's sheltering in place.
Sure excellent question I I'll take a stab at and then I'll turn it over it occurred to get his perspective.
So.
Are people at home more yes.
Is there a tremendous backdrop of heightened anxiety I mean Zion he prescriptions are up 35%.
45% of all the of adults.
Are talking about how the fair and concern are creating mental behavioral health issues.
I could go in and out about the statistics, so the backdrop mental behavioral health is exacerbated in the country.
It's elevated animals, probably stay at a high low for very long time, particularly as as they.
Go to a shelter at home.
Restrictions people are worried about going back into work environment people are worried about going into restaurants people are worried about everything.
If they're going to have a job if the company is going to be in existence. There were several bankruptcy's today.
D.V.
In terms of the April enrollment.
I personally don't believe incurred has his own view I own we haven't really seen a significant impact yet.
Now from the backdrop I described.
We would expect that as as we said over and over in purchase reference going into Medicare advantage populations.
We would <unk> as you get older mental behavioral health fishing issues worsen.
And they don't get better with time and chronic diseases worse in they don't get better with time and the two together a double whammy.
So I believe that the heightened anxiety will start impacting claims I remember they get into our radar once they're they're utilization is higher in elevated.
So I don't believe we're going to see that back till late in this year or maybe next year.
I I also have a perspective that since our members are care and treatment avoided.
That just because they're at home and easier to reach.
Doesn't mean that they're still thinking care, there now and there's no one we call in the first month.
There'd be March April Pebble start back February February March and April, particularly in April.
I don't believe debt.
No actually that our members don't volunteer to join on track on the first call or the first month or the first two months.
So I don't believe it's had a dramatic effects frankly, we just don't have enough nothing showing up that significantly.
But currently has a much better handle on the internal numbers than I do.
Yeah.
Yeah think Sean so there's this card.
Yeah, I agree with what turned saying that part of the challenge and understanding the Kobe specific effect is we've made a series of operational improvements you know starting in January at the same time.
And we did see positive performance improvements in our rates in January and February before we got into March which is really where you see you know cobin 19, becoming the the hourly newscast and so it's a little bit too early to tell.
But operationally we are set up to sustain it.
We've accelerated hiring to make sure that we keep up with demand.
And we you know we have seen that performance sustain into April and early man.
But there's obviously a lot of moving factors that we're watching the medical stand and medical utilization is one of them. The overall impact on employment and people eventually losing their health benefits is another.
But as parents sad.
This is actually created a increase awareness of substance use disorder anxiety and depression.
And it's actually created more comfort for individuals to actually address these these issues more directly.
So we might also be seeing <unk>, a new normal but right now only time will tell.
Yeah. The okay. The next seven point.
Some point I think we are beginning to see the D. stigmatized D. stigmatization this disease.
Okay. That's that's helpful. Thanks for that then.
So there are a lot of moving pieces as far as different different types of rubber new recognition policies by contract in in fluctuations.
<unk> raised in in graduation rates.
Do you need to maintain the this April page hit your 90 million revenue target for the year or what kind of net enrollment pace you need to to achieve to be able to get to that 99.
Well I'll, let anyone else chime in but I'll, just say a blanket level. When we said we're ahead of our expectations.
Our expectations are the guidance the 90 million.
And again, we try to tell you everything based on what we know.
Although I use the word expectations not what we expect.
Well a lot of things that we could see as the year plays on.
Won't have as much impact this year because of where we are in the year.
But we'll have a significant impact next year.
Oh and that's why.
Like a reference in the past this year, it's like the crocodile Dundee movie. This year is that an eye next year, the night [laughter] and I think <unk>.
I. So when we say we're ahead of expectations. We're ahead of our numbers.
Got it okay <unk>.
If we think about cost increase have sun is just a a second ago a little bit.
Given you've already done a lot of the hiring of care coach is it is enrollment ranting and utilization of those coaches increase where do ya exit the year from a a gross margin standpoint already gives me frame any different you have the coaches in place now to handle 90 million of revenue or there's still some hiring how much hiring.
I I is left to happen.
Kirk.
So I'll take the hiring part of that and then I'll, let Brendan follow up with a gross margin part you know we've been ramping and like I said, we pulled forward.
Some hiring because of the opportunity that we've seen in front of.
We probably dawn about 65 per cent, 70% of the hiring we need to do to support the number for the entire year.
Remember turn reference to large now it's international plan that we expect to go lie early in Q3, not all of that hiring has been put in place. We did accelerate some of what we planned because of that expansion.
Given the short term demands and the increase that we're seeing in the enrollment numbers, but but the expectations in terms of the workforce and what we need to bring on are well within sort of the monthly hiring rates that we've experienced in the past from this point forward.
So in April.
And may will be our biggest increases in fact, we had in late April the largest training class that we've had in the history is the largest single training class. We've had in the history of the company and if we see demand continue we will we will be able to handle that at a concert.
Going forward, but we're probably at 65% to 70% of what we need right now.
Okay.
<unk> margin part.
Yeah. So based on that you can you you can elicit that are we would expect their gross margin to improve throughout the year consider that most of that hiring is there. We we will be hiring more you know and especially when.
When we see or expect to see what the new national planned coming on board the second half and so.
You know without giving specifics I would say that we do anticipate you know continued sequential growth in our in our gross margins as a result of that.
Okay, and then just a a quick last one for me I just to clarify what were the earlier point for the July 1st contract.
Hearing you said you know did the Medicare advantage population, you're gonna be launching in those historically ramp quickly <unk> is there any of that July 1st contract assumed in your 90 million revenue target or or <unk>.
I guess is or how much.
[noise] well we know.
We don't break it out.
Yes, it is in the guidance.
I mean, we're.
It's the borders more on what we know not what we expect so yes. It is in our guidance, but remember like I said earlier when I gave guidance back in November.
It was planned that it was going to launch January 1st.
That's.
That's unfortunate, but it's it's it as we say I'm half calls it it could be expected and of course this coming year I look forward to giving guidance in February not in November.
Yeah, Alright, alright, thanks again for the time.
Pleasure.
For next question comes from online I've seen that Mannheimer with.
Company.
Nice quarter guys.
I wanted to to follow up on the hiring.
The the higher as you were discussing what what roles are they are they care coaches, obviously outreach specialists or both.
If you could remind us how many care coaches you have presently and what's there.
They're caseload is at capacity before you have to hire more thanks.
Well I I gave I like Kurt answer most of it I'll tell you right now in the care community, we have about 210.
Care coaches.
And then which includes also some community care coordinators and then in our member engagements specialists that's about another 90.
I think as a company as a whole sort are we call. It is our care communities about 300 and the company has a whole is about 476, and then of course I referenced 60.
So basically you have 60 of the 276 is our digital technology group.
And all that Kurt handle the the harder part of the question.
[laughter].
So g. knows me, though forward given the rates that we've seen in terms of our ability to reach individuals and get them engaged.
About 75% of the Ram is on day care community side.
And only about 25% is in a additional member engagement specialist.
Okay. That's that's very helpful to understand that split thanks. Thanks Terence.
And it <unk> with respect to the guidance you know you indicated a or implied that you're running maybe ahead to plan, which is great. You did 12 million and Q1.
The expectation is 90 for the full year. So what if you can guide us a little bit what percentage of that of your full year revenue would you expect to it in the fourth quarter.
Well first of all the 12.3 million don't short changes.
Okay and.
Yeah, I've had a brand and chime in on the fourth quarter numbers.
So.
So [laughter] goodlin, so Jane as far as the the the way we look at this clearly there's around that we expect we've got you know expansion was that you've seen this report on in the first quarter and those expansions start to really take hold you know shortly thereafter, and so you'll see those expansion hidden.
You too as far as revenues concern.
And then when we when we launched the new National plan.
In the beginning of the third quarter, assuming that goes as planned.
That takes a little bit around as well and so you. It's it's just keeps <unk>. There's a layer in effect I think as you know and so so each month, you're getting new forwards in and and and continues random so what that does it does back load.
The year, we see in our numbers, we look at the average full as talented indicated and we can see you know how these numbers work themselves out and how we convert folks from the average pull into enrolled members and so.
And try not to do official kwanzaa vacation, a quarterly guide, but I can tell you that a.
A large chunk is in the fourth border.
But there's it's it's not going to be you know.
It's it's a slower rampant in the second quarter, it'll start accelerating into third quarter, and then seriously accelerate in the fourth quarter is probably the best I can I can say.
Alright, no. That's that's very helpful understand that thanks.
But there are no further questions.
Trying to call back over Mr. Pizer for closing remarks.
Well, thanks, everyone for joining us today, and we look forward to updating you soon.
I know everyone would be safe be well.
And again reach out to everyone that might be experiencing loneliness or mental behavioral health issues.
It is mental awareness month and everyone have a great night, thanks for joining us.
Thank you, ladies and gentlemen that does good-bye conference call.
Thank you for your participation.
Connector line.
[music].