Q3 2020 NantHealth Inc Earnings Call

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Ladies and gentlemen, thank you for standing by and welcome to the Nanthealth 2023rd quarter Financial results Conference call. At this time, all participants are in listen only mode.

After the speaker's presentation, there will be a question and answer session.

I think what you'll need to press star one on your telephone keypad if.

If you require any further assistance please press star zero.

I would now like you had a constant some of your first speaker for today Mr.

Mr., Robert Jaffe Investor Relations for no. Thank you. Please go ahead Sir.

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Welcome everyone and thank you for joining us today to discuss mantelpiece, 2023rd quarter financial results on the call today are Ron Boots, Chief operating officer, and Bob Petro, Our Chief Financial Officer.

This call is being broadcast live at Www Dot and helped dot com a playback will be available for three months on that helps web site.

I'd like to make the cautionary statement and remind everyone that all of the information discussed on today's call is covered under the safe Harbor provisions of the litigation Reform Act.

The company's discussion today will include forward looking information, reflecting managements current forecast of certain aspects of the company's future and actual results could differ materially from those stated or implied.

In addition, during the course of this call we may refer to non-GAAP financial measures that are not prepared in accordance with US generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies.

Investors are encouraged to review that helps press release announcing its 2023rd quarter financial results for the company's reasons for including those non-GAAP financial measures in its financial results announcement.

The reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is also contained in the company's earnings press release issued earlier today.

In a moment Ron will provide a brief overview of the quarter and discuss the business followed by Bob who will discuss the financial results in more detail. We will then open the call for questions with that said I will now turn the call over to run Moocs Ron.

Thanks, Robert Good afternoon, everyone and welcome to the in house, 2023rd quarter Financial results Conference call.

Figuration on an agreed upon date, but lots of a drug management framework, which allows for multiple third party feed integrations enables client requested customization for both brands generic drugs and the introduction of the new features that support medical office operations to track record on adhere supine specified treatments and when you try that.

Expanded ACI capabilities, so the new service offerings for provider and revenue cycle organizations to connect to pay her to the Navidad open platform expanded API capabilities include and updated and ingles faster information retrieval and need your pair access to a secure if a combined gateway debaters and workflows, including eligibility benefit.

This claim status inquiry.

Authorizations and referrals.

Seizures centric enhancements that will provide the richer user experience in that in that open. These enhancements include playing investigation team on vacation and saucers Pizza Bill for sequencing I'm elected pronounce a business we continue to explore monetization opportunities.

For an update on revenue required metropolitan business Open NMS, We released Marine 2020, with new features including countries database integration with numerous times reduced databases, including cortex of CD elastic search and others.

Most of it is <unk> with agent duty platform enables users to notify Konkol responded customize alarms and Chief Tonight influence in acknowledgement and support for BGP Modern protocol BNP for monitoring border Gateway protocol routing information.

Fortune 500, healthcare IP company went into production with the open Endedness architecture for learning enabled correlation ask.

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Greater insights into timing alarm resolution.

To sum up our recently completed strategic acquisition of openness and treated revenue during the third quarter.

Part of the solid overall financial performance the total revenue increasing lowered his team and and an approved bottom line, we have the new clients capabilities. So revenue business and lots of enhancing short in adamant are engaging solution and was that a review of our business I'll turn the call over to Bob to the social financial results in more detail Bob.

Thank you Ron for the third quarter of 2020 total net revenue was $18.8 billion. This compares with 2019 third quarter revenues of $18.6 million.

<unk> revenue, which includes only our equity in that in that product lines increase approximately 1% year on year.

R Q1, two SaaS revenue grew 5% driven by strong growth in our equity product on a full quarter volt there.

Q3 acquisition of open that in a mess January that 361000, a revenue which was comprised of both maintenance and professional service revenue.

Sequence of them unluckily or analysis revenue was $49000 down from 276000, the third quarter. The prior year, we expect nominal revenue in the coming quarters as we continue to explore opportunities for those products.

Q3 gross margin of 60% was comparable to the same quarter a year ago.

Total operating expenses were fly that $18 million compared with the third quarter the prior year.

We lowered SG&A expenses by 1.3 million compared with the prior period, while we ramped up our investment R&D expenses by $1.4 million, we continue to add new product offerings and grow our data signs capabilities driving per future monetization of these efforts.

For the third quarter net loss from continuing operations attributable to madhouse significantly improved to $11 million from 16.4 million in Q3 of 2019.

On a non-GAAP basis Q3, net loss from continuing operations attributable to net health was $7.2 million or seven cents per share down from seven $1.5 million or seven cents per share for the third quarter of last year on a year to date basis non-GAAP net loss from continuing operations attributable.

<unk> help decrease the $28 million 19 per share from $23.9 million.22 per share for the same prior year period.

Finally, cash and cash equivalents or 25 $9 million on September 30th 2020, compared with $37.5 million at the end of our second quarter net cash burn it was approximately $11.6 million in Q3, which included the usage of funds for the open that Nomas acquisition with that I will now.

I'll turn the call back over to Robert.

Thanks, Bob operator that completes our prepared remarks, we'd now I'd like to open the call to questions.

Thank you Sir.

Once again, if you would like to register a question. Please press star followed by the number one on your telephone keypad. If your question has been answered and you would like to withdraw your registration. Please press the pound key.

One moment, while we compiled a cute name of off Sir.

Our first question is from the line of Charles <unk> of Colin Your line is now open Sir.

Hi, This is Gwen Xian for Charles Congrats on the corner quick question. It seems like you know overall hospitalization is coming back to normal levels and we're also hearing that oncology volumes are kind of getting back to where they were pre pandemic. How does that look among your clients.

And what's out in that benefit in the corner have you seen a rebound there and the other question is you know given a solid grasp quarter, how should we be thinking about four Q revenue and what kind of expectations. Do you guys have four open and I'm asked to contribute it in for queue. Thanks.

It's bothering you or I can touch on the ladder of question and Ron can maybe touch on the the first question as it ties the open on the mess and where we see them going in the short term is probably similar revenue as in Q3, three 300 to theaters thousand dollars a quarter.

Or in the short term, where we're looking to expand that and drive those synergies that Ron reference in the past.

But for right now, it's probably in that 350 K range on a quarterly basis in the short term as as we get those synergies in those.

Engagements further lines.

As for Q4 again, obviously, we're not really providing guidance, there's still a lot going on in in.

Would depend on the consult so I I don't feel comfortable and give them an exact you, but I I still think we're probably going to be in the 18 million range.

It ties the queue for we've got.

Upside opportunity, but there's also.

As we get to the end of the year with.

Our our contracts an amortization of certain professional services, we could see an impact on that in in queue for so again I'd feel comfortable in that $18 million range.

He's safe and you may now disconnect.

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