Q3 2020 Soc Telemed Inc Earnings Call

The Taliban the third quarter of 2020 earnings conference call and webcast all participants will be in of listen the only mode should you need assistance. Please technical conference specialist by pressing start then zero. After it stays presentation, there will be an opportunity to ask questions to ask the question. You May Press Star then one on a touchtone phone to a child of your question. Please press.

Start then to police notice that is being recorded.

Leading today's call or John Calix, Chief Executive Officer, and high Tran, Chief operating Officer, and Chief Financial Officer. Please note that the company will be discussing certain non-GAAP financial measures that they believe are important in evaluating performance details on the relationship between these non gap measures to the most car purple GAAP.

[noise] measures and reconciliation there of can be found in the press release that is posted on the company's website. Also please note that certain statements made during this call will be forward looking statements as the time by the private Securities Litigation Reform Act of 1995, such forward looking statements are subject of risks uncertainties and other factors.

That could cause actual results for S. O C tell them at two different material from those expressed or implied in this call for additional information. Please prefer to the cautionary statements in the press release in filings with the S. C. C. All of which are available on the company's website with that I'd like to share the call over to S. O seats element C E O John Calix.

Please go ahead.

Thank you operator, and welcome everyone of them a call. Thank you for joining US. This afternoon to review our third quarter of 2020 pre business combination of results and our first earnings called the public company as well.

Many of you know we spent the past couple of months working diligently on a business combination between absolutely tell them at and healthcare merger Corp, especially purpose acquisition company the transaction clothes on October 30th and we began trading on the NASDAQ on November 2nd.

Well, we've had the opportunity to share the essos. He told me to start with many of you during that transaction process I'd like to begin the call today with the brief overview of who we are and what we do.

I also see the leading provider of of cute Tom Medicine solutions that he's primarily inside of hospitals I'm cycare teams to provide time sensitive specialty care when patients are at the most vulnerable.

We provided differentiated solution through the integration of our proven software platform Tilman I Q of panel of cancelled coronation experts and.

In the network of clinical specialists are reached consists of 843 facilities, including 540 acute care hospitals in 47 states.

Including 18 of the 25 largest use health systems in two of the top five physician groups.

The queue telemedicine as emergency the solution the create additional clinical capacity improve clinical quality and drive operational efficiencies, creating a path to revenue generation and improve profitability force struggling hospitals, we are well positioned to step in and the cyst hospital leaders struggling with the problems of the cute capacity management.

[noise] physician scarcity and of course optimization, we do this through the ability to deliberate clinical effective coverage and of meaningfully lower costs and the traditional onsite alternatives due to the Fractionals Asian of remote providers time.

Cold Medicine is seen of rapid acceleration of adoption drink COVID-19 pandemic of it's become very clear the virtual care will continue to be of critical component of the health care industry of ability the over increased access and improved care to patients.

Now turning the third quarter, our bookings in the corner, where the highest in the companies third quarter history, and 54% higher than the third quarter of 2019 in fact ear to day, we've doubled the bookings number for the first three quarters of 2019. This little bookings was achieved through the the expansion of of relationships with 24 existing clients by cross selling in addition to.

Seven new hospital clients.

Ah revenue in the quarter of 15.1 million was down from the third quarter last year and this is directly of the result of the impact of COVID-19, non or utilization levels to give some additional context here earlier this year hospitals diverted resources in preparation for an influx of COVID-19 patients and the can be to the local <unk>.

Immunities to come to the hospital only if necessary.

Such utilization of our services decrease initially specifically for clinical cases, there may be urgent the not critical and it's impacted or variable fees non her fixed monthly commitments with the passage of time and a better understanding of patient management by our hospital clients, we've seen improvement in utilization even now is COVID-19.

Glared back up around the country.

Now despite some of those COVID-19 related headwinds made great progress on the on the implementation front or implementation team bolstered with lean six Sigma TMP rigor made significant progress on our average implementation time during the year moving closer to our target of 90 days from approximately 120 days it simply excellent work on behalf.

Of a lot of different departments we.

We see a lot of opportunity to grow ahead, and we're committed to making the investments necessary the capitalize fully.

During the third quarter, we began ramping our investments and or go to market functionality filming out of sales team and our clients services team required to enable success in 2021 and beyond.

We're complimenting those efforts with additional marketing through both digital strategies and increased conference participation.

With the strong demand for telemedicine education is health systems, and physician groups work to determine their future acute care telemedicine strategies, well beyond the digital front door.

So subsequent to the close of the quarter, we secured of private investment from bonds of quarters Mercy health and carillon two of our current customers. We believe this is a testament to their confidence in SLC solutions and the related value proposition the opportunities the capitalize on broader commercial partnership and the strength of of relationships bold.

Bunch of course, and cruelly and are committed to ongoing improvement of the clinical operations and high quality care for their patients and they believe essos itelmen is the right partner to work towards that goal.

We have a strong partnership with bold bunch of course, and curling already but believe their significant room for expansion as of solutions are currently only in 10 of the potential 59 combined sites.

We've also committed to ensuring our future success by enriching enhancing the S. O C team to that and we recently welcomed Eunice Kim to the executive team as General Counsel.

Eunice joints from Samantha Corporation has the extent of experience advising and counting executive and senior management on a broad range of legal matters, she's already making a difference in the team and worked thrilled the haberer at S O C.

We also welcome three new independent members of the board of directors with the additional darker Barbara Bobby burn.

Brokers, Kobe Act and and Mcgeorge, they're collected experience vision and wisdom will be an invaluable asset to the management team of vessels itelmen.

We've accomplished the Latin 2020, and I look forward to continuing to update you on the progress with that I'll turn the colver. The high trained to review the third quarter financials, and our twenty-twenty outlook in more detail.

Thank you gon I'm pleased with the progress we have made this quarter in the business and look forward to expanding and our third quarter of financial result, but first I'd like to take a minute to review the business combination on October 30th we close the transaction and began trading as a standalone public company under the take or T. O M. D. Following the success of.

The business combination, we of well funded with $45 million of cash on the balance sheet and no debt.

Now turn to the numbers, starting with bookings, we generate of $2.6 million of new bookings in the third quarter of 54% year over year increase at John noted. This represents the highest third quarter bookings in company history you.

Year to day bookings of $8.3 million increased by over 100 per cent and more than double that of the comparable period in 2019 the.

The strong growth rates reflect the increased interest in telemedicine and the momentum we're seeing in our business.

Revenue was 15.1 million in the third quarter, a decline of 11 per cent year over year revenue in the quarter was impacted by lower utilization year of the year as the result of a decrease in hospital visits do the COVID-19 utilized.

Utilization levels are recovering sequentially from the trust at the end of Q1 and the beginning of Q2 during.

During the third quarter, we completed 32000 core countertops in terms of total consult on our platforms. We conducted 80000 in the quarter, a 21 per cent increase compared to a year ago as a platform clients continue to increase utilization.

Now turning to our non-GAAP financials in the third quarter adjusted gross margin was 44% compared to 47 per cent in the the.

In the third quarter of 2019, although revenue was down year of the year by 11% and core concerts were down by 16 per cent, we were able to flex our cost of sales the upset some of the COVID-19 related revenue decline.

Operating expenses, excluding depreciation and amortization integration costs and stuff based compensation was $9.5 million, an increase of 28 per cent compared to a year ago as S. As he continues to increase the investment and it's go to market functions and preparations to become a public company.

Based on the factors third quarter adjusted EBITDA was the loss of $2.9 million compared to a positive 477000 last year.

We ended the third quarter with approximately $2.4 million in cash on of pro forma basis factory and the business combination and pipe financing, we have approximately $47.4 million in cash and note that.

Finally, we of reiterating of outlook for the full year 2020 and continue to expect.

Bookings in the range of of 11.5 million to $12.5 million revenue of approximately $57.3 million and adjusted EBITDA of Ah.

Approximately a negative $11.1 million.

In conclusion I want to thank all of our team members for the hard work, resulting in the solid third quarter as well as successful completion of the business combination we have of differentiated position in the large and growing of key telemedicine market and a strong balance sheet gives us confidence we can execute on our strategy and drive growth. We look forward to keep me of.

Posted on our progress with that we'd be pleased to take questions operator.

We will now begin the question and answer session to ask the question you May Press Star then one on your Touchtone phone, if you're using a speaker phone. Please pick up your handset before pressing the case if at any time of your question has been address and you would like to withdraw of your question. Please press star. It then too.

At this time, we will pause momentarily to assemble of roster.

Our first question comes from Matthew Gilmore with Bird. Please go ahead.

Hey, good afternoon, and thanks for the question Uhm I wanted the first ask you about the the bookings performance you obviously.

Kind of a good quarter of this quarter and you're great the outlook in October.

Could you kind of characterize the where you're seeing better results from what you'd first provided in terms of an outlook either in terms of the customer type cross sell versus new customers or or across the various solution categories and I was especially interested in the you know what you are seeing from up of telematics.

Q platform per second.

Yeah, Great question and thank you Mathew.

So from the cross sell versus new store bookings, we're seeing the same kind of trend that we saw in the first half of the year, where nearly half of her bookings are coming from new locations and half of our bookings from Same-store growth.

We've seen that all year and actually into the last year as well and the way our team operates and worked with our customers. We see that as of attachment of the strength that our current customers are willing to grow with us expand our services either from emergency neurology to emergency psychiatry or emergency neurology back into the impatient unit or as we started at one.

Location being able to move across too and of different facility and we talked about that before we have nearly $860 million of white space with our current customers.

And from the standpoint of our ability to sell with the different into those different kind of platforms. We really look at it as again ICU coverage psychiatry coverage neurology coverage across the hospital portfolio.

From the standpoint of T. I Q, we do see opportunity for growth.

Either in the hospital physician groups as well as continuing of this onto the government channel and other channels that we've been working with.

The element of and this is just the longer sales cycle the.

The strategy of passion of the digital front door of the hospital and talking to the hospitals about how they want to maximize their own physicians or do of wrap around service of our telnet IQ platform with some of our specialists covering maybe peak hours weekends late evenings, and then their own clinicians covering on.

Off other normal day shifts, but also the ability for T. I Q to be outside of those core specialties maximize other areas like infectious disease cardiology Hospitalists and that's the growth that we're ramping up our sales team. We've mentioned in the past the some of you that we're doubling the sales team this year and we're doubling it.

Again, and and part of that is hiring individuals was fast paced specific platform experience. The continue that growth and does that seem comes on board and in fact 40 per cent of our sales team wasn't on board at the beginning of the or another leaning in in getting that experience and as we ramp up the second half of our sales organization we can.

To you that growth to continue.

The the thing I add there Matt is is that.

Physician groups, who may now and attractive.

Kind of market segment for us primarily because of.

What we do particularly well on the platform is utilize it to optimize the utilization of productivity of remote providers.

And some of the things we built that are very provider centric.

And.

Really resonate with these physician groups and the nice thing as as we bring on some of these the the client partners.

They will continue to.

Expand the deployment of the platform across.

Their own client base, which provide some long term growth opportunities organically for us.

And and then maybe asking about the curly and and and bomb secure investments that are per hidden that comes with an expansion in the relationship with the client is there anything you know to think about in terms of of what's included in your bookings guidance from from that announcement or is that something that's maybe a little bit further down the line of.

Not necessarily.

Spelled out in the contract.

Yeah, I don't know that that is that is so I think that's an indication of of.

Of the upcoming to grow the relationship overtime.

It's not it's not per se of meaningful impact of 2020, but as well we give guidance the.

Four of 2021 come our year and earnings call.

We will have a better sense of what that looks like in terms of timing and impact.

Got it and then the the last one for me just asking about guidance I think if we did the math right. Yeah. It looks like you're you're got into a little bit of <unk> of sequential.

Pick down and revenues and I I was just kind of curious what you're assuming from up you know of Covid impact and if if you're seeing any sort of influence on the on your volume because of the recent spike in cases.

Yeah, I think that as we discussed during the analysts day, we did see a.

A pretty meaningful impact in the early days of the pandemic and John spoke a little bit to this in his prepared remarks with regard to utilization.

Utilization being impacted as hospitals.

Effectively shut down at.

At the end of the first quarter beginning of the second quarter, but what we've seen even with the recent spikes in the pandemic is that a recovery and we did have a nice from Calgary as hospitals figured out how to operate effectively and of post pandemic world. What we've seen is that that recovery has held.

Relatively stable.

Even with the recent spike the end.

That is a testament to the fact that that hospitals have figured out how to update better and we continue to support them because at the end of the day, when we think about hospitals being under financial person, we think about our value proposition Bear mine, we are deliberating specialist coverage at a frat.

And of the of the onsite alternative so we're pretty we played right into those types of sensitivity.

Okay, and just a quick follow up on that should be done I mean, I think you reported 15 million of revenue and I think you're getting the 14 million in the fourth quarter should should be just sort of think about that sequential trend is being a little bit of conservatism or is there something else that.

The sequential three.

<unk> took orky of revenue.

No I mean, I think that the as.

As we looked on the fourth quarter the the.

The utilization is always variable right and at this point. This is of unique year. So our sense is that we have confidence we're going to be able to the liver on that revenue Canada.

Alright, thank you.

As a reminder, if you have a question. Please press star then one to be joined into the queue. Our next question comes from Ryan Daniels with William Blair. Please go ahead.

Yeah of guys. Thank you for taking the question Uhm. Just this this is your first kind of public.

The company Conference call I was wondering if you could remind us about the sales opportunity you have within your existing client base I think it's pretty compelling both from the ability to shell additional services to existing clients and then as you mentioned it started the call even with strategic partners, you're only modestly penetrated within the system. So.

<unk> an opportunity to upsell within the system is you also remind us of the cross-sell slash upswell of opportunity for the organization.

Yeah, Ryan. Thank you for that question. So if you're talking specifically in the cross sell white space and I mentioned, a little bit earlier, the white space opportunity for us is $860 million two ways to look at that.

And the element that we're going from one service the two services at the same location that being we moved from psychiatry impatient to psychiatry are of neuro on the impatient and that will move us from an average of historical 1.7, moving the 1.8 services per facility just that 0.1.

1.7, the 1.8 would be a $3.7 million revenue opportunity for us so the ability for us the lean in and get all of our sites two two or three or four service lines has incredible white space force and we've been showing over every single year sequentially going up from one point to the 1.3 to 1.7 not working the drive well.

One seven and that is why not only are we adding.

Additional sales individuals, but we also have a an account management team that were growing 50 per cent because we think not only is that high touch important of have quarterly tuck-point with our customer.

But as a customer of it to see our call. The reports are clinical effectiveness, we bring a lot of data for that they can also benchmark themselves against the other hospitals of similar size of whiteness of themselves and that information as important as of that starts to happen, we get additional opportunity at that same hospital location.

I can barely if we start to grow additional facilities and bounce of course was asked about earlier currently in our other hospitals that we currently partner with just the one per cent change in the still with the penetration is an additional two and a half million dollars of in revenue and so for us the ability to go from one site that two sites for five.

And we have years of history, showing how we've grown from one or two 220 or 30 locations within a reason why the N or national IDM. That's why we're also adding not just to our sales team of doubling the sales team, but we're taking our clients services team and bringing that up 50 per cent because they get that regular touch base cadence.

With our customers and the opportunities are right. Therefore, the need is high was talking about both from the financial pressures of hospitals are feeling but also the ability to find these very scarce specialty resources and very different marketplaces.

Okay. That's super helpful and then.

Correct me, if I'm wrong, but I I know you're kind of base of reaches in the telling urology slash tell a stroke space. So I assume you have more service contracts there, but everything we read today is about the shortage of April psychiatrist and instead of the disruption the emergency departments are ashamed because I get a lot.

The patients tend to take off of it if they can't just charge them day facility. So it seems to me that that so.

Potentially home run cross show opportunity for you with existing customers to can help alleviate that burden for given the the stresses we're seeing the market, particularly today is that of care thought.

That's exactly right right. So if you look at it from our current mix where about 60%.

Telling morality and that's not just tell the stroke, we've never just in a tell a stroke of company. So we see a lot broader base of different specialties 30 per cent of in the psychiatry area and then 10 per cent in either I see you or tell them that I Q platform clearly, there's going to be this wave coming forward of additional psychiatric pressure.

On every institution, whether you see that on the direct to consumer side, you're seeing that in a number of of the different reports coming in that space, but also onto the hospital and if someone were we unlocked value for hospitals in the neurology space by unlocking new revenue opportunity for them, where they weren't able to keep that patient the ambulance would drive right past.

Particular hospital to another hospital that might have a stroke certified program or neurologist to be able to see the patient at the wee hours of the morning of the weekends, it's different for psychiatry to your point, what we're doing is we're actually unlock and capacity where of patient may be picking not just hours, but days before the scene in the b.

Either admitted or.

Of the opportunity to leave the hospital to have the be seen by of board certified psychiatrist and therefore that is with that specialty under severe pressure for scarcity and the ability to have someone there within hours versus within days again. It provides the unique opportunity in the space and so while we're at the at 60 30 <unk>.

Split now we see the evolution of that percentage changing it still has a bias towards neurology, but we definitely see a bias toward changing towards psychiatry, and even ICU surfaces moving forward.

Very helpful and then.

Maybe the last one or two if you think about the the sales process just given the opportunity you have can you talk a little bit more of an how you're allocating resources. There's obviously the big opportunity as we just talked about to drive Crossrail of an up sales and your existing base, but there's also a lot of white space to go out there and get your customers and then you've also got the.

[noise] platform, which might be of are a little bit different sales process are going more of the physician groups of you wanted to try the role that all the time, so talk a little bit about how you internally think about dedicating whether it's mind share of time of dollars to the different aspects of of the growth model.

Oh, Great question. So when you think about the the majority of of her individuals' their geographically based especially with our account management teams. Some of those individuals will be assigned to very specific some of our larger IGN customers, which is broader than any specific geography, but for the most part their geographic base both for our sales teams is.

Well as our account management now as you look at the as you look at some of the expertise that's needed typically what you do the also layer on someone that has a lot of fast based background. The can talk from of our technical standpoint should the customer, let's say the C. I don't want to get deeply involved on understanding the complexities of tell him that I Q1 understand sort of.

The Indian underneath that so we do have some other specialists that can help augment the sales.

The sales team for those more technical discussions on our tell him out of cute platform and that usually comes up in both elements remember we don't just talk about Tom.

Tom at IQ with our.

Especially the Provider's in our customer console center every single time, many times of just have to talk about some of it I Q within the physician groups within many of the hospitals looking to have that strategy beyond the digital front door and that's what we're having that specialty staff individuals' to augment of our sales teams outside of the typical geographic boundary is working for us.

Got it makes sense of then final question I'll I'll have off here you know obviously a lot of momentum in the broader telehealth space, where she can reason ipos of more conversation about checks I think one of the things that come to appreciate the more we've dug into your stories how difficult. It is to actually run a specialist network yeah, that's more of.

Of of business to business sale on the each of these doctors has to be the.

The only credential the license and the state, but also having admitting privileges at the facility. So you have to have kind of a full time employees or at least practitioners versus some of the direct to consumer models, where it's more of a.

Over type jump all of our doctors can log on and do primary care visits. So can you talk a little bit about what your view is the big Differentiators between you and your organization and maybe some of what investors of the public maybe more familiar with when they think of telehealth. Thanks.

Ryan excellent point as well so if you think about from the BBC standpoint, you're right, where you can have a case come through any digital platform and be able to crowdsource that but the first available primary care physician or other specialty as long as they have a license within the state as you're moving to the specialty hospital element beige.

Quickly our specialist become a member of the hospital staff and the B a member of the hospital staff someone has to be both credential and the license within that hospitals non non do that the hold of state license, which obviously has had from freedom here during the national emergency, but they also have to be license from privileged within a particular hospital. That's the long poem of 10.

That usually takes anywhere between one to three months and even in a priority situation, it's still days and when we're talking about and go back to the stroke. Examples of that were asked earlier. When you were talking about every single minute someone is losing 2 million neurons with stroke, you can't wait hours you can't even wait <unk>.

The minutes are time of the video was under 15 minutes you have to be right, then and there and fully available so that complexity about having a number of specialists credential and the license well ahead of time working with the hospital make sure that that paperwork is manage the maintained over time as well to be able to provide the <unk>.

Ample clinical coverage 24, seven 365 if needed.

Is a very hard and high bar to cover and so not only do you need the specialists not only need the customer cancelled center, but you need of large group. The can really work towards credentialing licensing of privileging. So if you don't make that easy bolt on the customer and.

And the specialist physicians.

It's really hard to maintain that network the be able to provide.

Coverage within the minute for these really severe patient types.

Oh, the Super helpful caller, Thank you guys.

Thanks Ryan.

Our next question comes from David Larsen with B T. I G. Please go ahead.

Hi, congratulations on a a good quarter can you. Please talk about your appetite to get into additional specialty areas beyond neurology and psych, how 'bout like cardio infectious disease Hospitalists E D and so forth.

Thanks.

Great. Thank you David.

So we do have an appetite there if we just look at our current addressable market within psychiatry neurology in ICU and we simply apply our average utilization currently of our hospitals okay.

Across the 6000 acute care of hospitals in the U S. We get to a total of addressable market of $2.8 billion. So there's plenty of opportunity just in ICU neuro in psychiatry for us to go build a very strong business case, but we also understand our customers will lead us the other elements and we're going to go where the market takes us we think there are many of.

The special is that can grow that that total addressable market well to $9 billion and when you can look at it as these are areas, where the specialty in the complexity of that specialty really played to our strength whether that be of time base element, where you need to be able to see patients quickly or the complexity of being able to see labs.

And imaging exams and have specials coming through the critic terpene together, we see a lot of of Clickability. There for those other specialties. So we do have an eighth of that marketplace.

We are we obviously look for the weather's of genetic threat of having people that understand telemedicine that we can again maximize our platform and think about it from the standpoint too. If we were to look at point in those other specialties and we did that true a merger acquisition type strategy that will bring to us all new locations, where we can then go back.

Back and be talking now too pulling in neurology of pulling in psychiatry and other services, the really healthy hospitals and so the ability for us to either pulling new specialities simply the augment our current customers needs of that they are looking for those within their within their institutions or the ability to let us walk into new ones.

Situtions and bring our specialties two of those locations. We think is a very important element of care and so yes. We are going to have our I opened too that's a number of of different specialties outside of our core three.

Okay. Great. Thanks, that's that's very helpful. And then I think he touched on the sudden your prepared remarks, but how our hospital volumes trending and let's say October and early November.

Relative to three Q, obviously hospital volumes of down under pressure of various organizations are saying, they're back to pre COVID-19 levels. What what are you seeing in your book. Please thanks.

Yeah, we're at as I mentioned, what we're seeing is even with the recent spike.

Until the cases, the cross country or utilization has remained steady.

And so far in the fourth quarter is what we can install in the third quarter. It hasn't gone backwards, but we're not back to pre COVID-19 levels, Yeah, right I think what we've assumed is.

At some time in the second quarter of next year, we return to those levels.

But a at least in our modeling, but today, though the good news for us as we meaningfully rebounded off the lows at the end of the first quarter of getting second quarter.

<unk> off of that rebound, we the main study eat despite the volatility.

Okay, and then I guess the Guy that you provided at your Investor Day, I mean, our our volumes in line with what you sort of we're seeing at your Investor day.

Thanks.

I think what state of of was that our motto assumption where that utilization would begin the slow and steady linear recovery from August of 2020.

Until may of 2021 at the which we returned the pre COVID-19 levels.

And at least.

So far our experience is is a little bit better than that.

Okay, great. Thanks very much.

Our next question comes from Bill Southerland with the Benchmark company. Please go ahead.

Okay. Thanks for taking the questions actually just one most of the might've minority asked and answered but I'm. Just curious again since this is a new a new or.

The business for some people to understand maybe you could go through the competitive profile a little bit as far as.

You know, what's what what the competitor set looks like and and where your differentiation kind of wins the day typically.

Thanks before the question, we get that question a lot of as you can imagine and people usually start thinking about our competition is the big to also in the space and of public element being Teladoc Ram Wow.

In one way to look at that and we can give some detail here is both of those companies. They really grew out of the direct the consumer space sort of the outpatient urgent care of business that that was all funded by employers in pairs and again, we're not focus there to be very clear we're focused on the acute care sort of higher acuity patients type.

In fact, we rarely she used the teladoc from the animals and of course service, which is that element of bringing our specialty provider networks and he's really complex process environments.

Are more competitor what you might say is the different smaller regional participants groups of come together in a key city that might be pulling together as a team the trying to figure out how the medicine, we do believe though that the smaller regional firms.

Really because of the lack of scale of the technological resource of the operational sophistication hostels are constantly changing and growing and giving more complex with EMR integrations and other pieces, it's gotta be hard for those regional groups of really scale and really stay at the top of that complexity. Obviously, we have a large investment of our Tom at Ikea and we tried to think about that years in advance.

It's not just what's happening right now.

From the standpoint of the <unk> Teladoc piece, we do tend to compete with them, though more in the the shelves of software platform Tilman I Q.

The <unk> the B clear of that we really do approach it from very different elements.

They are more commonly seen that sort of that digital front door strategy right still connecting the hospitals physicians and clinicians with patience for that care in our particular area again tastes are coming to the hospital for emergency services, whether it be psychiatry neurology your ICU and so they're they're in the hospital they have to be seen with.

That level of acuity, we talked about that level of complexity for being privilege and prudential in the extending the staff by for actualizing, the specialists over dozens and dozens of locations.

And that's the the difference of where we really don't run into the M walls.

And the and the Teladoc now they also do sell a lot of hardware in the hospital in fact in there some of the more public releases recently they talk about some of those hardware development and that is the also the difference of just on a historical basis of how the companies look and have the adult the software platforms, we really developed our software.

Platform from the standpoint of maximising and optimizing.

The large physician network that we started with so things like configure ability modularity and optimization wrong paired us that we were really trying to tackle as we developed in of continue the adult film that I Q.

The bill in the to build upon that we kind of think of ourselves as a solution provider focused on the acute hospital in houses from snakes night too, but that means is that when we sit down and have those consultative conversations with clients of prospective client we.

Built a solution engine to be able to say, yes to help them with the problems and and their problems might very well be a load balancing itchy right of geography issue, where they've got of high concentration of the specialists in one geographic location in the ability of virtualized them across the enterprise would say the my ton of money.

In terms of local local spend elsewhere and really.

Optimize the utilization of the specialists, but you know as likely the case their talent might be just access to special Tonight. They may have been trying.

Four months of not years to recruit and and the pain.

A specialist in in their market it may be very challenging and so what we do is we bring to bear both of the platform as well as the access to a network of clinical specialist right and so where we think of ourselves as bringing forth a solution to the client regardless of what those needs are and and it revolves around telemedicine.

Okay and so.

You know I'm I'm thinking about what you guys are describing relative to in touch and I.

If you could help me with the differentiation there cause I'm not I'm not.

100 per cent clear on that.

Yeah. So one of the things I think the the way to kind of think about it is we have built one of the things we do differentiate ourselves.

With is that we come to the the table not only the the platform, but built in multi specialty networks that we could provide access to specific client, whereas the in.

In touch might come to the table with a.

A telemedicine specific hardware solution.

Or maybe some software to extend that that telemedicine hardware solution.

But they are limited in terms of the ability to bring the clinical networks. The bear Oh, all of those issues and challenges right. Conversely, even when you think about just the platform as John mentioned, they come out of from a different perspective right. The their legacy is Earl.

And hardware and telemedicine hardware of specifically and they're very good at that.

And so their solutions.

Hardware century, we are somewhat hardware device agnostic right, we will virtual lie.

A a a a group of of remote providers into since the any device it could be a telemedicine card it could be a laptop or tablet or a phone.

We are somewhat the vice agnostic, but we are driven by the <unk> by the clinical use case in that oftentimes determines what endpoint is required but what we do very well because we run our own network of clinician is we built the platform to optimize utilization of productivity of.

Those providers.

And so and so.

That's why al message out of value proposition resonates, the well with the physician group because they have the same talent around optimization of their own provider groups.

Yeah that makes a lot of sense, okay. I appreciate that clarification, thanks, guys well.

Welcome and Bill as that of last element that we talked about right. When you think through the smaller sort of regional groups being our competition and then you think about the hospital system being regional or national the.

Those larger groups want of common platform they want something they can maximize leverage across many sites across many states and that's where we again, what we feel like the complexity of having a system. That's been pressure tested with more the 1.2 million patients on top of the of tell him that I Q, that's use across the country of more than 500 hospital.

<unk> brings of very distinct longterm competitive advantage against the smaller regional.

Yeah. It makes sense. Thanks again I appreciate it thanks.

So.

This concludes our question and answer session I would like to turn the conference back of her to John Calix for any closing remarks.

Okay, we think we'd like to thank everyone for joining today, we hope we've answered the bones questions and that you understand the business model for Ah. So she told him Ed we're excited about the future. We're we're excited to share with you the investments in the future progress that we make with that everyone stay well stay healthy and we'll talk to you next quarter.

The conference. This now concluded. Thank you for attending today's presentation. He may now disconnect.

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