Q2 2021 Phreesia Inc Earnings Call
[music].
Good morning, ladies and gentlemen, and welcome to the freezer second quarter 2021 earnings Conference call. At this time, all participants are in they listen only mode.
Later, we will conduct a question and answer session and instructions will follow at that time.
I'd now like to introduce logic on D., Vice President Investor Relations for Felicia, Michigan <unk> you may begin.
Thank you operator.
Good morning, and welcome to freezes earnings conference call for the second quarter fiscal year 2021, which ended on July 30, Onest 2020.
Participating on today's call from Frazier, our Chief Executive Officer, and co founder and dig and Chief Financial Officer, Tom ELP here.
Following prepared remarks from Hyman, Tom we will conduct QNX session.
A complete disclosure of our results can be found in our earnings press release issued yesterday evening as well as in our form 8-K submission to the FCC both of which are available on the Investor Relations section of our web site <unk> IR Dot Frazier Dot com.
As a reminder, today's call is being recorded and a replay will be available following the conclusion of the call.
During today's call, we will make forward looking statements pursuant to the safe Harbor provisions for forward looking statements contained infection 27 eight of the securities.
And section 21 E. Other Securities Exchange Act, including statements relating to the expected performance of our business.
Future financial results our strategy, our partnerships expected launch as a products and services long term growth overall future prospects and the impact could be cobot 19 pandemic on our business.
These statements are subject to known and unknown risks and uncertainties that could cause actual results could differ materially from those projected or implied during this call. In particular those described in our risk factors included in our form 10-Q, which will be filed with the FCC later today.
Should not rely on are forward looking statements as predictions of future events. All forward looking statements that we make on this call are based on assumptions and beliefs as of today and we undertake no obligation to update them.
Except as required by applicable law.
We will also refer to certain financial measures not in accordance with generally accepted accounting principles in order to provide additional information to investors.
These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results. A reconciliation of GAAP to non-GAAP results may be found in our earnings release and supplemental materials, which were furnished.
With our form 8-K filed after the market close on September eight with the FCC and May also be found on our Investor Relations website, <unk> IR Patricia Dot com.
I will now turn the call over to our CEO I'm Indeed.
Thank you about luxury good morning, everyone.
That's fall approaches, we hope that everyone's families are safe and healthy.
Once again, we are participating on today's call from three different locations. So we appreciate your patience with us.
Our second quarter results demonstrate the agility depth and overall commitment to our entire organization in a very challenging environments.
I'm proud of freezes ability to serve our clients take care of arching and further our mission of creating a better more engaging healthcare experience is our communities grapple with a current tender.
For the fiscal second quarter total revenue was 35 million up 14% year over year. The average number of provider clients was 1668 up 7% year over year.
Average revenue per provider acquired with 17365% year over year.
Adjusted EBITDA was 1.2 million up approximately $400000 year over year.
The pandemic.
Has forced health care providers across the country to rethink every aspect of their day to day operations.
You just network gives providers tools, they need to keep their patients and stuff, so well operated reliably and efficiently.
I would like to highlight two new for your clients.
Dunhill health first.
Advent help give me quite in mid March we worked closely with the I'd been gene to accelerate the rollout in order to hope I've been skill and reduce exposure between patients and stuff drinking personal business.
In order to move rapidly we supplemented the rollout team with her sales development Representatives also known as us to yours or teams took nearly a thousand about Vince ambulatory practices like.
We also took 44 I'd been acute care hospitals life.
Over the first 90 days all of this work we've done remotely by both James This is a very complex well coordinated rollouts.
Just network <unk> are now embedded against consumer facing ecosystem.
Next I would like to talk about health first fully integrated delivery network in Central Florida.
As you went live with helpers during the second quarter similar to address our teams worked collaboratively and move quickly.
Most of that helped first ambulatory locations went live in less than a month.
Okay. First is currently expanding its deployment of the freezing that work through its for acute care hospitals.
At three show, we believe that if we continue to invest in or people in product and take care of our clients are quite will drive a novel matter valued for me part of our network.
Last research recognize her team has an outperformer in its recent review of vendors response to the pandemic.
Specifically siding or team for being upfront strategic questionable I would like to congratulate my teammates and it's very nice recognition.
In July because you're walking away need Goldberg to our board of directors, where he's been the CFO teach you interact or for 17 years and brings more than 30 years of financial and business experience in software entertainment retail in apparel industries.
In August Alstom Hoffman joined goes our general counsel, bringing 25 years or we won't people magazine experience to pre show, including leadership roles at public and private companies various industries and various digital growth.
Well now turn the call over to Tom.
Thank you I'm and good morning, everyone.
I'll review the income statement balance sheet and cash flows.
For the fiscal second quarter, including some considerations for the rest of the fiscal year.
First revenue.
Total revenue was 35 million up 14% year over year.
Subscription and related service revenue was 17.1 billion in the quarter, 22% year over year, primarily due to new provider clients added during the quarter.
Expansion and cross selling of existing provider clients.
And higher related services revenue.
Payment processing fee revenue was 11.8 million in the quarter up 1% year over year.
Well, many health care providers have reopened.
Trends are improving.
Patient visits for the quarter continued to be below their pre coded 19 levels.
Payment processing volume across the Friesian network was only slightly higher.
In the fiscal second quarter compared to the first quarter. This is because visits were significantly higher in the first half of the fiscal first quarter, which took place prior to March 13th.
When the United States declared a national emergency with respect to covert 19.
Life Science revenue was 6.1 million in the quarter up 18% year over year.
Provider revenue, which combines revenue from subscription and related services and payment processing fees was 29 million up 13% year over year.
Two drivers of the 13% provider revenue growth, where average provider client growth.
7% year over year and average revenue per provider client.
5% year over here.
Life Science revenue was 6.1 million up 18% year over year.
Our life Sciences revenue is based largely on the delivery of messages and a contracted price per message to targeted patients and our team was successful in delivering more messages than in the prior year period.
Moving onto expenses I will review several expense line items on an adjusted non-GAAP basis.
Which excludes stock based compensation expense for each line item.
Please note that a full reconciliation of GAAP to non-GAAP measures, including adjusted EBITDA.
He is included in our earnings press release in our form 10-Q filed with the FCC.
Cost of revenue was 5.1 billion or 14.7% of total revenue top 110 basis points year over year.
And reflects a ramp up and client services and support during the period.
Sales and marketing expense was 9.3 million or 26.6% of total revenue up 110 basis points year over year as we continue to invest in future growth.
Research and development expense grew 10% year over year.
5 million.
And down 50 basis points year over year as a percentage of revenue.
General and administrative expense was 7.7 billion or 22.
Percent of total revenue up 110 basis points year over year.
As we've previously indicated this figure has been increasing as a result of continued ramping of public company expenses from a modeling perspective, we expect to begin to see operating leverage in the back half of fiscal 2022.
In general the increases in cost of revenue sales and marketing and Gionee expenses as a percentage of revenue are consistent with our comments in June.
That we began hiring and we'd expect to see that hiring reflected in our expenses through the remaining three quarters of the year in support of anticipated gross.
Payment processing expense was 6.7 million a decline of 5% year over year.
Oh payment processing revenue was up 1% year over year expenses were down 5% year over year.
These trends are due to the mix of transaction type and lower cost routing of payments.
Mirroring trends, we saw in the fiscal first quarter.
Adjusted EBITDA was 1.2 million up from 741000 in the prior year.
This increase reflects the combination of higher total revenue and lower payment processing expense.
Shares outstanding as of July 31 were 37.9 million.
Cash on the balance sheet on July 31 was 84.2 million down 6.1 million from April 30, yes.
Cash flow from operations for the quarter with an outflow of 2.4 million versus an inflow of 600000 in the prior year quarter.
And capital expenditure for the quarter was 4.3 million.
Up 1.4 million year over year ends at 4.3 million includes 1.6 million of capitalized software development, we will invest more cash into the business in fiscal 21 compared to fiscal 20, as we ramp up hiring across the organization to support our anticipated growth.
To reiterate homes comments I'm very proud of our team's ability to stay focus during the pandemic positioning us to grow with our clients and we are encouraged by the trend towards more providers getting back to delivering care to those who need it.
No we are ready to take your questions operator.
Thank you at this time, we will be conducting our question answer session in order to ask a question. Please press Star then another one on your telephone keypad in order to allow for as many questions as possible. We ask that you. Please limit your questions to one question with one related follow up you May then reenter the queue.
For any additional questions.
Your first question comes from the line of an Samuel with Jpmorgan. Your line is open.
Hi, guys congrats on nice quarter.
I can think about provider client growth, how should we be thinking about a length of your sales cycle and is there still any lingering carry over from cover disruption to happen in March and April that might you know kind of still be impacting that embracing look forward.
Good morning, and a.
Yeah. Thanks, Thanks for that question.
I think one other things to think about is in this in our Q2 quarter one of the what a dark pressing a strategic imperatives was getting as many people live as fast as possible. So we really pulled forward is many of our clients go lives as we could and the reason we did that is.
We and our clients felt very strongly that frees was helping keep their patients and staff safe.
Hi, using zero contact so and I think we reiterated a little bit earlier that.
We actually moved a lot of RST ours into implementation, so that we could accelerate as many of the go lots as possible.
[noise], Okay that makes sense and then I guess I'm life Sciences unit that was obviously once again really strong growth, where there any shifts or unusual items in that and then you know looking out at the next quarter, you're up against a really difficult compare because you had such a great quarter last year, how should we think about lapping that.
I think our life Sciences team has done just a phenomenal job like what we're seeing now is the investment we've been making over the last 12 to 18 months in building up that team and investing in data science and new product offerings, and so a lot, but I do think it was there is a pretty hard comp.
Last year, and we're doing it in a very challenging environment, but I.
No that teams working.
As many hours is our possible today to make sure that we're able to deliver very relevant messages to the right patients. So that they can get the care they need from their providers.
Great. Thanks.
Thank you.
Next question comes from a line of Ryan Daniels with William Blair Ryan's Your line is open.
You guys. Good morning, Thanks for taking the question sounds like a very positive data point when you speak to the hiring in the outlook for growth can you give a little bit more detail on number one key focus areas for hiring a number two the SDR rats are they moving back into the sales position at this point are they still.
Somewhat deployed in other areas. Thanks.
Ah why Ryan Thanks for those questions right I'll try to get all of them.
So what we're hiring across the board or we have whether its engineering and finance or whether its aren't really career program, which supports implementation or STR is client success and our tech support teams so across the organization we're hiring.
And we've seen a ramp up and we're doing it in a remote world.
From an SCR standpoint.
We did start moving them, all but a lot of them back it's got the at the tail end of last quarter. So we should hopefully over the next two quarters either the output of that ramp happen I think we ended last quarter at 15 dynasty ours.
And this morning, I think we have a little over 70, nothing to say 70 onest yards as of.
This morning, so that that sales motion is ramping up and those people have moved back from implementation and the other rules say they had in the organization back to being SCR as if they if they want it.
Okay perfect very helpful. And then as a follow up just on the inpatient space seems like a lot of systems are really starting to make more active investments and things like virtual waiting rooms in digital check ins inpatient navigation through the system are you seeing that in your book of business too I know you announced some large partnerships where it's both there.
Inpatient and outpatient units, but are you starting to see a little bit of uptick in the inpatient market as well thanks guys.
So.
No I can't comment as the broader market, but what I can say is that indeed for us the acute inpatient space is an area that we've been.
Meaningfully investing for and then for for the last couple of years and I still think it's very early.
To articulate what that market looks like but what I do know is that.
Hospitals want to have a common front door with their ambulatory groups. They also wants to streamline holiday Inn take patients and provide a better more.
More thoughtful.
Patient and consumer experience and.
Especially during this time period that also like to make it zero contact and so we had seen.
With a lot of our current clients a fair bit of interest.
Yes.
Great. Thanks for the color and stay safe guys. Thank you.
Sure seat.
Question comes from the line of Stephanie Davis with SPP from Leerink, Stephanie Your line is open.
Thank you. Thank you for taking my question guys good quarter.
Given the growth in Tele medicine access that you guys have participated in which likely capture some appointments that would have been skip clean pandemic.
Is it possible that ever turn and volume could actually be more than 100%. That's your prior volume and you still only 9% off right now from prior levels and telemedicine just nothing about.
[noise] somebody I I don't have a crystal ball and I don't know what the future holds but so how you guys, saying [laughter], we're actually doing retailer we are not guiding.
So the.
But what I would say is that look telemedicine is a new wave for patients to be able to have access to care.
And if it allows people.
Especially with social determined to help that aren't able to access care or are there from a specialist or price for a primary care provider.
Where they would have not been had access that that's a great thing I don't know what's going to happen in 12 to 24 months in terms of care and access, but I do know that providers want to provide care to two patients that need it and.
And I do think that Tele medicine.
Allows then the ability to reach patients in a way that they wouldn't have otherwise that being said theres only so many hours in today and when we talk to providers, they're working full long base today.
And they were pretty pandemic and they are as much as they can now and so I think there's you know what I do caution is that there's only so many hours in that day for them to be seeing patients.
And just adds and upper level than sort of.
[noise] region, so well my follow up on volume.
I know you've talked about this is why during the IPO, but what sort of impact you might we see from tools season and shot hasn't we think about the puts and takes that like a week.
Not in constant currency them.
You know if we because of the makeup of our network I think flu.
Has less of an impact and it probably would have if we were overly weighted to primary care urgent care.
I think it's bad when people get sick.
Generally speaking until I hope that flu season is low.
Especially considering we're also grappling with a pandemic and I think that.
Generally.
Do you see like when we talk to our pediatric groups because there.
They see a little bit more sick visits that most just because they see kids, they're seeing slightly lower six volume, but you know on the Grand scheme of sort of volume for us. It's in that low single digits I don't ticket I wouldn't say, it's materially moves the needle one way or the other.
That's helpful. Thank yank thanks.
Your next question comes from the line of John Ransom with Raymond James John Your line is open.
Hey, good morning, just wanted to Ted.
Probably a little bit on this hospital opportunity.
Yeah, I think we all know what it is you do for physician offices on the intake side, what's exactly different about what you do.
At the hospital level on how long did it take you to build up the capabilities.
And what it what additional capabilities if any do you need to continue to kind of roll forward in that new attempt.
So that's a great question John <unk>.
I don't want to go into [noise] very long specifics on what we're doing but if you think about its the value proposition. There is people waiting in line when they go to the hospital to check into goes.
For the service or for the urgent care that they need in an emergency room or for their surgeries or to give birth and they still have lost paperwork to fill out they still have to.
Give all their information and right now the constraint is the registrar and so a lot of that initial experience that they have.
The hospital is still sitting in a quote unquote waiting room.
And or telling a patient where and when they need to go somewhere and we're building in deploying those capabilities. So if you think about a hospital with maybe multiple entrances.
With different access points its streamlining goes access points so that.
Patients are able to intake faster into the into the facilities and be directed on where to go providing significantly better experience with all said.
Better economics, because you need less staffing.
And frankly in a co good environment, it's safer because it's done with no contact.
Okay and how many.
People do you have I know you've got to deal with our one but do you have.
Dedicated marketing people for the hospital sector, yet or is this are you kind of taken these referrals and for Marlin.
Oh no we so.
But I bet is not with our ones neither was memorial.
Okay. We do have dedicated people working on you can be acute market for us.
<unk>.
Okay.
Alright, thanks, so much.
Oh I'm sorry.
If you would like to ask a question. Please press Star then the number one on your telephone keypad. Your next question comes from the line of Donald Hooker with Keybanc Donald Your line is open.
Great. Good good morning, good morning, everyone I would just maybe for heim or just maybe high level perspective on some of the operating environment. If we look ahead and there's hypothetically a big second wave of Cobot 19, what would you have learned from this first wave that would.
Make the second way, perhaps a little different.
[noise], that's an interesting question with our number one priority.
Keeping our style is every let's say for the staff, that's or providers, it's patients and you know whether its first wave sector way third wave I just think.
Cobot 19 is here with us today, and we don't have the vaccine. So we're treating it as if we're in that we're still in the made way we're now.
Most of our people are not traveling vast majority of our implementations or remotes.
And it's only being done and absolutely necessary conditions. So.
You know what the way we're treating the environment right now is that we're still in that first ways and we're being very cautious and we've kept all of our office is close to that we intend to.
Remained virtual going forward.
Okay.
And maybe just my follow up would be in terms of the new provider adds a client adds in the quarter, which which cooked which with great. You commented on that briefly you may not have an answer to this but.
Were there any sort of pockets of demand, it's such an unusual environment, where there any sort of areas.
That drove that year over year growth or if not or if it was a more just broad based.
I think what we really did as we just really looked at everyone that was an acute ago life and we just.
Did everything possible to get them light as fast as possible because it just made a meaningful impact to their organizations into their patients and we heard it took me herded into in the class.
Analysis, we heard it from our practices I'd gotten just a ton of emails so hard to interest what weve been able to do to help these practices just open back up.
So I'm just really proud of the organization for mobilizing and prioritizing.
Some people say and it's something that I think it aligns with our mission and it's something I'm really proud of.
Okay great.
Thank you. Thank you for that because I think all right. Thank you.
Your next question comes from the line of sight wireless with Piper Sandler <unk>. Your line is open.
Thank you very much good morning.
Maybe could you call out what the what the acute care revenue was in the quarter or maybe number of clients that you've got lives on that now.
We don't disclose that.
To date, and we'll let you know when we do how many clients live or revenue number, but it's still pretty early in its a pretty small.
Okay [noise].
Sub 10% safe to say.
Huh.
Yes, that's correct Sean.
Okay.
How about on the same store sales growth is up with obviously volumes being down.
Wanted to get a little bit more insight as the primary drivers of the same store sales growth for example, a zero client intake what percentage of clients have that today and maybe what are some of the other two drivers of that same store sales growth.
I don't have the number of Sandy I can get back to you on.
What percentage are running some version of zero contact, but I think what we've seen from a same store sales is that it's.
A mixture of expands.
It's a mixture of.
Cross sell it up so and it's also a mixture of making sure that we're providing all the necessary workflows to these practices to make sure that they're able to ER.
Do what they need to do the C patients, but I'd say, it's mostly driven by expansion.
Expansion of number of providers at the clients using a correct.
And so that's in the more drug.
Okay. That's helpful. Thank all major great they want.
Yes, that's that again, that's correct Sean.
Spanish okay.
Driver.
Alright, and Tom what's a that the hiring ramp that you're talking about can you quantify that on the Intacta opex.
[noise] a word as we said in the first quarter. We are you know, we've we've started hiring again and expect to.
Ramp up.
Pretty pretty aggressively in the second half here.
You know as I mentioned before in all areas of the business, particularly in the early career program.
Okay. Thanks, so much.
Your next question comes from the line of glass and tangible with Guggenheim Glenn Your line is open.
Yeah. Thanks for taking the question Hey time I also wanted to follow up on on the impatience I I get it that the revenues are small today, but I was really trying to understand maybe how the economic arrangements work with with these customers and how that may be different from physicians to help us think about.
How the impact of an AD been health or a first held for example, you know might change are all major growth algorithm, how should we think about those financial relationships.
That's great question up but.
I don't want to share our pricing model for acute just for competitive reasons, but.
Yeah, I'm I assume you understand that.
Eventually I'm sure. The laws you will have a slide that explains all that.
Okay, maybe maybe just at a a follow up on an earlier question about the sell side.
I think in the past you said it takes about 90 days to bring a physician online after you sell them and if we sort of think about maybe April may and June being sort of the height of the pandemic is it reasonable to think that.
As we look out to this next quarter that we may see the impact of maybe slower results in the height of the pandemic play out in this next fiscal quarter I understand you don't want to give guidance, but I'm just trying to think about how the sales cycle may have impacted twoq versus you know versus what we should be expecting in threeq you.
I think that's fair to say and I think that's a good color.
I think I think the this next quarter.
We're going to see.
A lot of those practices that we probably wouldn't pick of I've already life.
And you know our priority is making sure that.
We're servicing and setting up the next couple of quarters beyond that.
Definitely okay. Thank you ever since the growth in this quarter.
Okay. Thank you.
Thanks, Mike.
Your next question comes from the line of Daniel crossed the city Daniel Your line is open.
Hi, guys. Thanks for thanks for taking my question I wanted to kind of follow up on Glenn's question. There on the sales cycle. Because you know you have that 90 day implementation on on getting a provider aboard and then you know 90 days from that's really kind of generating.
Revenue here, so I guess as we look at the providers that you signed during the most difficult time period, which will show up in next couple of quarters. How does the entry point in terms of pricing compare to that of those who you sold pre pandemic.
Oh, that's a great question Werent <unk>.
Obviously for competitive reasons going to talk about pricing.
But.
Our core priorities always making sure that we are aligned with the needs of.
Our our providers and or life sciences companies to make sure that they could treat and care for patients.
The way they need to and want to.
But at this time and probably in the future, we will talk about sort of pro promotions and pricing.
But it's good question.
Okay. Okay, and then maybe just a little bit of a higher level. It seems like the d. that you put out with Commonwealth as utilization kind of track telling at around 9% below pre cobot baseline.
As this compared to what you were expecting heading into the at the quarter and what Anderson, you're not giving guidance here, but at a high level what are your expectations for healthcare utilization for the rest of the year and wet signposts do you think you'll need to be able to really provide fiscal year guidance.
This is I think whats really important news.
I I don't know what to expect right and we sort of we do multiple scenarios all thresholds.
Our planning process Tupper to think through you know the highs and lows we didn't know.
Going into Q2 that we would see.
The growth that we did.
To come back so and I and I would argue that neither did a lot of our provider. So I think from a monthly basis, certainly even a weekly basis as we look at this.
In addition levels I think we're continuously finding.
Different movement throughout the United States and I would also argue that it's not.
So we just think about is 9% I think different specialties are coming back in different way ways that different parts of the country.
And as we see spikes.
In different communities it impacts.
Patients and it impacts providers.
So I don't want to look into that Crystal ball and sort of hope that I could tell you what it would look like cognoids.
Got it thanks guys.
Your next question comes from the line of Sean Dodge with RBC capital markets. Sean Your line is open.
Thanks, Good morning, I'm, maybe on the value proposition.
Going back to your comments around the strengthening treated as seen in that post pandemics here, if we take a step back and assume volumes in in payments that at some point returned to normal.
Dies or I guess, how does the enhancements you made you've seen change your view on on the potential long term growth trajectory for the company do you come out of the pandemic better than you went in and how much better.
Oh I feel like we went into the pandemic.
Sure like in great shape.
And I.
I think we will come out of.
You know this pandemic.
Okay.
You know relatively speaking I think the real.
The real change is gonna be to the healthcare system.
And to patients and Ho and the strength of the provider and health system community because they had a there's a lot of pain and a lot of people loss loss lives and got really sick. So no my and still are.
So I would think about look our I don't think going into this we would have thought is pretty sure as proof.
One of the propositions is helping keep patients and providers safe and.
I think that is a value proposition that will remain in its one that we sell lawn today that people get region for today. It doesn't replace no are really significant ROI on.
Labour and and capital efficiency and the ability to collect data where they wouldn't have otherwise with utility to have a better patient experience and staff experience. So I think it's just supplements and and I think.
You know it accelerated a lot of products that we had already been working on and it changes the nature of.
Intake so I think all of those.
Or just did I can't imagine I don't want to classification as to what the world's would've looked like.
Or what it will look like I know that what I, what I do know today's that we have we're in good shape moving forward and I'm very optimistic about our opportunity moving forward.
Okay. That's great. Thanks, and then.
Maybe one on the cash collections it looks like Dsos, you're down a little sequentially, but up still a fair number year on year is there something changed revenue mix, that's driving that or is that related to the deferral program. You. All had mentioned offering to some of your clients up earlier on in the year.
Yeah.
That's correct Sean.
Deferral program had some impact on a cash collections.
Okay. He is there any book and you can put around to maybe the proportion of clients remember clients that are taking.
Taking part in that.
Between a corridor in a third I think took advantage of it.
Got it.
Thank you.
Your next question comes from the line of David Larsen, which they already David Your line is open.
Can you talk a little bit about the growth rate in the revenue per provider. It looks like the number of providers. So you have in the platform grew nicely, 7% year over year, that's sort of in line.
You know last year.
Why would the why would the revenue per provider grocery slow to like 5% from 23% to you because there is something about the pandemic thats, making it harder to show looks like on the whole portfolio of modules or.
Is that a study is that a good number to use going forward 5%.
[noise] I'll, let Tom give more input, but on a high level I think what you're also seeing is the pressure on payments.
Okay.
Right.
There's.
That's part of the revenue mix and then a different provider quietly confident you want to you got to think about that 1% growth and a payment volume and payment revenue and the impact on that.
Okay. Okay. That's that's that explains it obviously and then with advent and health first.
I hear that you deployed the acute care solution to all four of the health first hospitals and I think advent has 50 hospitals. If we think that like each hospital has a lobby and registrars within each of their facilities I.
I mean has the as inpatient solution Ben.
Is it the plan to deployed across the networks of those ideas.
So that advantage I think we've been public that were alive and 44 those hospitals facilities.
So that's the inpatient and I think we're in the process.
When Tom could correct me if I'm wrong, we're in the process of going live with the help onest acute facilities I think this for them.
In Florida, that's correct yes.
Okay, and then without getting too granular hospitals are typically larger business entities, Dan or physician practices substantially we're talking about like 500 million a net revenue per facility.
Couple of million for.
Yes.
Any thoughts around that would be very helpful. I mean why.
Why wouldn't the hospital revenue be significantly higher than your typical physician office.
I don't think were commenting on where.
The hospital revenue would be but I will say that.
Yes, the revenue tends to be higher but they do on average less intakes.
Right. So thankfully less people you know more people go to ambulatory.
Visits than they do to acute visit.
Right.
So you for a lot of its not just based on the absolute revenue the organization it's based on.
What is it that we're doing for them and what does that bother you look like.
You're not check when you go to a nice you you're not checking in every day.
What one third of denials happen because the skin accurate patient registration, so I imagine that they're going to be a significant improvement in bad debt. After they deploy a free shop are you doing any sort of analytics around back to show the value so you're bringing to these facilities.
Oh, we it's safe to say that we think.
Generally as an organization that when we.
In the early days and moving forward when we deployed a solution. We're we're continuously looking to be able to validate and articulate far return on investment.
For our clients and we try to do it as quickly as possible. So you know what I can say is that something that [noise].
We're we've looked at and so as we further talked about our acute solution I'm sure you know to the marketplace I'm sure will be articulating, where we think the ROI wise.
Thank you.
Thanks Me.
Andy do have time for one more question. Our final question comes from a line of John Ransom with Raymond James John Your line is open.
All right I'm, just going back to payments revenue how is that trending.
Toward the end of the quarter versus the beginning of the quarter and maybe you could give us a peak at how it's trending this quarter just for modeling purposes, how to think about that thanks.
The it improved during the quarter.
Hi, John and and John is Bloody I think the Commonwealth data is a valuable tool without us really havent. If you could sort of look at the volume data there and you know obviously can't really can't really talk the on that but I think the commonwell data goes through a early mid August so that's pretty instructive.
Okay. Thank you.
This concludes our question and answer session I will now turn the call back over time and take for closing remarks.
I want to pick everyone for joining us today, and I hope that Youre families yourself and your organization, Israel's getting safe and.
Hopefully, we don't see a spike in.
Cobot 18 in the second half of this year, because I'd like everyone to the healthy and say choose everyone hope to see you against us.
Ladies and gentlemen, this concludes today's conference call on behalf of freezer. Thank you for participating you may now disconnect.
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