Q1 2021 CareCloud Inc Earnings Call
[music].
Good day and welcome to the Coeur Cloud, Inc. First quarter 2021 results conference call. At this conference is being recorded on China quota turn the conference over to MS. Kim Blanch General Counsel. Please go ahead ma'am.
Thank you good morning, everyone and welcome to the Coeur Cloud first quarter 2021 conference call on today's call are Mahmud Haq, our founder and executive Chairman.
<unk>, our Chief Executive Officer, President and a director.
Stephen Snyder, our Chief strategy Officer, and a director.
And Bill Korn, our Chief Financial Officer.
Before we begin I would like to remind you that certain statements made during this conference call are forward looking statements within the meaning of section 27 day of.
And uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward looking statements.
These statements reflect our opinions only as of the day of this presentation and we undertake no obligation to revise these forward looking statements in light of new information or future events.
Please refer to our press release in a report filed with the Securities and Exchange Commission, where you will find a more comprehensive discussion of our performance and factors that could cause actual results to differ materially from these forward looking statements.
For anyone who dialed into the call by telephone you may want to download our first quarter of 2021 earnings presentation. Please.
Please visit our Investor Relations site at I R Dot care cloud dot com click on events and download the earnings presentation.
Finally on today's call, we may refer to certain non-GAAP financial measures. Please refer to today's press release announcing our first quarter of 2021 results for a reconciliation of these non-GAAP performance measures to our GAAP financial results.
And with that said I will now turn the call over to Stephen Snyder seats.
Jim and thank you everyone for joining us on our first quarter of 2021 earnings call as a.
Jim We are pleased to report another strong quarter as we remained focused on empowering healthcare providers and health systems with our technology enabled solutions and we continue to pursue a acquisitive and organic growth opportunities.
For the first quarter regenerated revenue of $29.8 million.
Notwithstanding seasonality the places downward pressure on first quarter revenues across the entire industry.
This represents a year over year increase of 36% driven largely by our acquisitive growth.
And as we continue to grow on top line. We also increased our adjusted EBITDA year over year by 381% to three $7 million.
And at the same time, we increased our adjusted net income by 718% to $2.9 million.
As we look ahead, we are committed to continuing to make bold moves in pursuit of our growing customer base and expansive addressable market.
During the first quarter, we are pleased to announce our rebranding to care cloud a name that more fully on bodies are track record and leadership role in delivering powerful cloud based solutions to the health care market.
States.
Today provides industry, leading electronic health Records practice management systems, a patient experienced platform revenue cycle management services deep healthcare analytics, and robotic process automation capabilities and more that drive the business of medicine supported by more than 3000 team members who.
Right.
We are hard at work every day to help guide over healthcare clients into the future with modern easy to use technology paired with disciplined efficient and comprehensive business solutions.
Today's healthcare leaders are being asked to it being asked to also innovate to embrace new payment in care delivery models re mentioned their patient journey, then compete in a new healthcare landscape and we are well poised to help.
This hardwork and dedication by all of our team members has enabled us to achieve over targets, including a significant year over year increase in first quarter of revenue of 36% to 29 $8 million.
However, disciplined approach is allows us to post over 16th consecutive quarter of positive adjusted EBITDA.
Congested EBITDA for the first quarter of 2021 was three 7 million an increase of 381% from quarter 120 20.
We are reiterating over guidance on 133 million $237 million for this year, which represents growth of 2007% to 30% over 2020 revenue.
We expect to generate between 2000 to $225 million of adjusted EBITDA for 2021 material represents growth of 102% to 130%.
As we have continued to move forward as a company and buried momentum we have been focused on scaling of an organization to meet the needs of our ever growing customer base and prepare our sales forever continued rapid growth. We are focused on good efforts on better unifying of a functional areas across divisions.
Including alignment of our sales and marketing teams product in engineering organizations and most recently reported in line with professional services client success operations on corporate integration functions.
These recent changes serve our ability to more more fully unify on with customer experiences and enhance an optimized critical aspects such as operational integration and functional service delivery.
I am confident that a a recently promoted leadership will further enhance over abilities to help facilitate increased alignment across the world globally distribute the teams and bring enhanced value to our customers.
In terms of organic growth, we're thrilled to see continued momentum and number of sales and marketing initiatives.
Which has progressively resulted in new client findings and customer expansion threw up sales.
Our total new pipeline nearly doubled in quarter, one of 2021 versus quarter one of last year.
We believe we are still in the early stages of seeing over focus on sales and marketing efforts fully pale but are encouraged by the results that team has been able to achieve so far.
We continue to play stop talent within a rare sales leadership in sales executive focused on our group practice on enterprise segments.
As we continue to ramp up these team members, we continue to strive to exit fourth quarter of this year by sublingual average quarterly bookings from last year.
If you look at investment in sales and marketing we increased over investment from $1.5 million in 2009, and 2019 $266 million and 2020 and expect to increase over investment this year by another 40% to 60%.
We are pleased to see that for every one dollar invested we are yielding approximately $2 us bookings an annual recurring revenue.
Non shifting gears I wanted to provide an update on our latest acquisition Meridian medical management.
We have transitioned all material a third party contractors and offshore business process outsourcers on to care clouds large scale offshore operations.
We continue to drive significant margin expansion and reduce our overall operating expenses in fact since the Meridian acquisition in June of 2020, we have reduced meridian's operating expenses by 33%.
In terms of cost savings our perspective is that we must always endeavor to find new and innovative ways to drive out costs from other operating models by simultaneously, ensuring we improve quality and exceed our client's expectations.
Is the work we have been doing to integrate and unify healthcare data across disparate systems.
Partners and platforms, not only crossover and internal systems and platforms, but across our vast ecosystem of partners and integration.
Our R&D teams have been solving this complex and widely applicable industry challenge with over new integrate MGE integration engine, which we call care cloud conductor.
This is the culmination of several quarters of R&D focus and decades of experience in other interface library.
We see care tells conductor and being able to unlock huge opportunities for us as we continue to achieve company than ever as we continue to acquire companies in our space and how we leverage this solution during over system integration space.
<unk> cloud conductor is just one piece of our overall interoperability solution set we plan on working two additional used cases and potentially commercializing the solution towards the end of the year.
We look forward to keeping you updated on our progress and sharing with you. Some additional exciting innovations we have one on the horizon and providing specific details over the months ahead.
Before I turn it over to Bill I would like to personally thank all of our employees for their incredible dedication and hard work of our future is bright the best is yet to come.
I will now turn the floor over to over Chief Financial Officer, Bill Korn Bill.
Thank you Heidi.
First quarter 2021 was another strong quarter of growth for care cloud.
As both Stephen and Howdy mentioned revenue for the first quarter of 2021 was $29 $8 million, an increase of $7 9 million from $21 $9 million in the first quarter of 2020.
First quarter results always include an element of seasonality.
Due to the early year impact annual patient deductibles have on the 65% of our revenue that's tied to the money collected by the doctors who are our clients.
When patients visit the Doctor in the first few months of each year their insurance has a deductible.
Payment to the Doctor takes longer.
And a portion of our revenue is delayed.
This is normal in our industry.
Q1 also saw a small decline in patient volumes due to COVID-19, most notably in primary care practices.
As many people working from home and.
And many children went to school remotely we.
We didn't see the normal winter flu season.
Up to half of all pediatric visits in the winter are often a result of koelzer flu.
Or the increased ear infections exacerbation of asthma or other things that are caused by colds and flus.
And with a healthier population these visits were down.
However, we didn't see much of a deferral of elective procedures as we did during 2020.
And the overall decline was a few percentage points.
So in total we.
We believe that debt most of the impact that COVID-19 has had on on reducing industry volume is now behind us.
The increasing contribution from organic revenue growth in the first quarter, including included revenue from new clients as well as additional revenue from cross selling existing clients both.
Both of which will provide a boost to coming quarters as well.
Our first quarter 2021, GAAP net loss was $2 million, an improvement of $538000 compared to a net loss of $2 $5 billion in the same period last year.
The GAAP net loss includes $2 8 million of noncash depreciation and amortization expenses.
One $3 million of stock based compensation.
The GAAP net loss was <unk> 36 per share based on the net loss attributable to common shareholders, which takes into account the preferred stock dividends declared during the quarter.
Non-GAAP adjusted net income for the first quarter 2021 was $2 $9 million or <unk> 20 per share.
And as calculated using the end of period common shares outstanding.
Non-GAAP adjusted diluted net income per share is 17.
Using end of period shares outstanding plus common shares issuable upon exercise of in the money warrants and divesting of outstanding restricted stock units.
Adjusted EBITDA for first quarter, 2021 was $3 7 million or 12% of revenue.
<unk> to $767000 in the same period last year.
Our adjusted EBITDA increased by approximately $2 $9 million from Q1 2020.
In large part due to the cost savings after integrating the businesses the company acquired last year.
As we continue to scale, our business through both organic and strategic means.
Such as last year's care cloud and Meridian acquisitions.
We were able to spread our fixed expenses over a larger revenue base and generate larger adjusted EBITDA and adjusted net income than ever before.
As of March 31, 2021, we had approximately $21 million of cash with nothing drawn on our Silicon Valley Bank line of credit.
And positive working capital, which is current assets less current liabilities of approximately $18 million.
In addition to our common stock. We also have a series a preferred stock, which trades on NASDAQ global market under the ticker MTBC P. R.
Our preferred stock pays monthly cash dividends at the rate of 11% per annum.
And while it is perpetual it can be redeemed at our option at any time, we choose at $25 per share.
We paid dividends for 66 consecutive months.
I'd like to close.
By reiterating our forward looking guidance for fiscal year ended December 31 2021.
Our first quarter revenue is in line.
With our projections to achieve full year 2021 revenue of approximately $133 million to $137 million.
Which represents growth of 27% to 30% over 2020 revenue.
This includes organic growth from new clients as well as cross selling new services to existing clients.
Year over year GAAP.
I would not start until mid June 2020.
We anticipate this will be our fifth consecutive year with annual revenue growth of 25% or more.
Our record few public companies have been able to achieve.
Revenue guidance is based on management's expectations regarding revenues from existing clients and new clients acquired through organic growth, Andrew or tuck ins.
But excludes the effects of additional material acquisitions.
We still anticipate adjusted EBITDA will be 22% to $25 million for full year 2021 gross.
Growth of 102% to 130% over 2020, adjusted EBITDA as the company realizes the benefits of cost savings.
And a full year of additional scale from our acquisitions of character and Meridian during 2020.
Between the revenue seasonality and the cost reductions, which are in place. We are comfortable reaffirming our 22 to 25 million dollar full year adjusted EBITDA guidance.
I'll now turn the floor over to our chairman Mahmud for his concluding comments.
Thank you Bill.
We are fortunate to be in our strongest position ever poised for another record breaking growth and increasing profitability.
We thank our investors customers and employees.
Can you support.
We will now open the call to questions.
Yes.
Thank you.
If you'd like to ask a question. Please sigma by pressing star one on the telephone keypad.
Excuse me Speaker phone. Please make sure you're on mute function is turned on to those signals to reach our equipment again price.
Star one to ask a question please limit yourself to a maximum of two questions when they're on pause for just one moment.
We will now take our first question from Jeffrey Cohen from Ladenburg Thalmann. Please go ahead.
Hey, good morning, how is everyone there.
Hi, Joe Good morning.
Okay. Thank you.
Couple of questions.
I'm trying to better Oscar tune for model as far as the.
The cadence for the year on the revenue side and how that correlates with what you've found on the.
Deductibles from Q1, as COVID-19 or any other kind of external metrics kind of.
Push that out a little bit I know that we've previously.
Part of the cadence.
Q2, being more closer to Q1, and then showing a more of a back half ramp any commentary there or any thoughts on that please.
Thanks, Jeff.
So good good question and I think that the.
Pattern that debt you suggested seems very appropriate to us.
We expect that we'll see a little bit of growth.
In Q2, we.
We normally do.
I think that.
At this point as we see COVID-19 impacts decreasing theres still has some impact and again Q2.
Typically at least the April timeframe would would have sort of at the tail end of cold and flu season, which is really not there this year.
So you won't see the increase debt that you maybe as much of an increase as you would've seen.
But everything that we've seen suggested by by Q3 Q4.
Barring anything unforeseen, we should be back to sort of business as usual and of course, we continue to add to it.
Signing up new customers and cross selling existing customers. So that continues to grow our revenue base and of course anyone that we sign up today.
See any revenue until the back half of the year. So I think the pattern that you that you mentioned.
Lately appropriate.
Okay got it and then second from me as a part of you had spoken a little bit about the 14, 6% 16%.
Investing could you be more Smith from specific as far as where that's showing up it looks like.
For the quarter or at least for Q1.
And perhaps I'm, assuming your outlook. So youre your G&A was lighter than we expected so good morning.
I'm curious about is the investing in the business from 14% to 16% where should we see that show up is that direct operating costs or is that elsewhere.
This will be sales and marketing, but maybe bill would you like to add this specific day, Dave with net increases in the sales and marketing.
Bill would you like to add some color.
Sure. So I think youll actually Jeff sees see increases.
How do you said, we continue to add to our sales and marketing teams, so youll see that that growing quarter over quarter.
We continue to be investing in in R&D.
While we while we try to do that as cost effectively as possible.
You can continue to expect to see some growth there.
Finally, even in terms of direct operating costs, while we always keep it keep a lid on our expenses as we rollout new clients and we have more work to do.
Because our service is very.
Both use this technology and people.
Continue to see growth in our indirect operating costs, although as a percentage of revenue it will continue to decrease.
Okay.
Perfect. Thanks, Rudolf that those are from me. Thanks.
Thanks, Jeff Thank you.
We will now take our next question from Richard Baldry from Roth Capital. Please go ahead.
Thanks.
First on the organic growth side can you talk about how much or how maybe how you structure. The sales force to go after.
RCM, which seems sort of like a very different sale than sort of EHR or other solutions.
Is it a unified sales approach or if it's split how much do you really push one versus the other and where are you seeing your better results.
Great and then thank you Richard Thanks for the question. Good question and you also have Karl Johnsen, who is our chief growth officer with Us and.
And you can just give us some more color on more details as.
As you mentioned, we started ramping up this team over the last two quarters.
Dr. Jorge.
<unk> has been divided and being addressing a different market segment and at the same time for different product line.
I will turn the floor over to you maybe you can give some color on more.
On the theme of structure.
Yes, Thank you hi.
So looking overall.
RCM revenue cycle services, where about half of our sales.
Software alone in the SaaS model about a third in force about and we have a team.
<unk> 44.
Sales and marketing folks.
They really are selling more software.
And RCM and.
And our focus has really been on expanding into the enterprise type sales. So we've had a significant growth in that team and in fact, our advanced pipeline.
A good share of that now is due to enterprise sales prospects and by advanced pipeline on people better.
Reviewing proposals negotiating contracts et cetera.
Yes.
Okay.
Second question would be on the M&A pipeline can you maybe talk about what you're seeing there how impacted by COVID-19 was that in terms of me is it tougher to analyze the companys results for 2020, because they were dampened as well maybe there is some reluctance to sell until things sort of rebound or maybe there is more.
Impetus to sell because of the challenges of 2020, very curious and maybe even valuations things youre seeing just so we get an idea for how likely it is to see.
More or less M&A activity in 2021.
Great question, Thanks Rich.
Asking it maybe breaking down that question into a couple of parts there.
You asked in particular first of all with regard to analyzing our company is it tougher maybe not tougher per se, but definitely requires us to look at.
I had a an increased period of time, it's important for us to go back and look at multiple years, and then to try to understand the COVID-19 period in view of those trends that existed prior to COVID-19. So certainly requires a little bit more in terms of analytical Jim.
<unk> as it were to make sure that that were really bad.
Just understanding the COVID-19 impact.
Close to just a continuation of those same trends.
With regards to the reluctance from a seller's perspective, I think you hit the nail on the head there has been some reluctance relative to.
Some of the companies that debt, we have historically targeted and continue to target those companies, where we really see an opportunity to add value, we see an opportunity to be able to address something of the existing operations of our business model of that company that we believe we can address as a combined company.
Companies that had been more distressed it's been our observation that those companies have been able to.
Remain.
In business by virtue of some of the governmental incentives the PPP loans.
On additional.
Reluctance on behalf of creditors to enforce their rights forbearance from lenders and the like so that's provided perhaps a bit of an artificial extension of the timeline to exit.
We believe that we're probably rounding the corner with regard to with regard to those sorts of cash.
We will now take our next question from Mark reason Burger from feet. Ladies security. Please go ahead.
Thank you good morning, with the more than 40000 providers that you're serving can you update us on the the current net patient revenue under management and what your expectations are for a growth of that in 2021.
As to thank thank you thank them on for the question.
<unk>.
This $40000.
Provided that day, that's coming from a whole combination of the.
The services that fee on offering one is from the revenue cycle management, others are using are on the SaaS only solution and when when you talk about the RCM most of those customers out of that 40000 need to also use or any of the proprietary technology that we have.
And then do you have.
A good chunk of the provider that are using R. B I solution from D close to maybe less than 40, 45% on the on the beach.
The solution that we have and then be handled on the providers, who are using and rfp's robotic on commission process.
And then the GPO ended like from the revenue standpoint still the most of the revenue is coming from the Rcmp plus the package, so which is R. C M plus technology and often followed by our our SaaS based model and then all of these of other other tools and many of.
Our patient engagements solutions from the from the patient standpoint, that's breeze on others. That's current tier is still being sort of the package solution, but having said that they are there certain of clients, especially on the on the case leveled health site the company required day or.
Directly monetizing the patient experienced management using the breeze.
To summarize the answer to your towards your question for the sales to continue for the year. We we believe that is still the most of the revenue will keep on coming from RCM, plus our technology solutions together.
Got it okay. Thanks.
I hope that answers your question Scott.
Got it Yep Yep.
And just one final one from me another major theme is the the shift from fee for service towards value based care.
What percentage of your RCM providers kind of operate under the value based care regime, and I guess as that number does potentially increase as we move forward what are the potential impacts to the top line. Thank you.
Okay.
Another good question I think this this model we believe on the way we are looking at it Stevenson in infancy stage from the induction.
Point of view, we do not have exact number with us, but I would see our.
Contribution towards this margin there'll be some fractional less thing towards 3% at this point.
So for the at least for the foreseeable future for the next few years, we don't see a big shift in terms of from a revenue on the way the revenues calculated.
Because of this switch in the industry, but at the same time, the our systems. So we do support we already have.
The number of such including even the sort of some of the certifications and we can service. We can service declines wants to go to go for this model of deeper instead of a fee for service model and quality care based model.
Thank you very much.
Thank you.
We will now take our next question from follow on clicks from Maxim Group. Please go ahead.
Good morning could you give us some color or guidance on the outlook for Capex and capitalized software for 'twenty one.
Sure sure Alan so.
As you know GAAP requires us when were doing work on new products that are not yet generating revenue.
These required to capitalize that.
The debt expense and so you will continue to see that.
If you looked at.
Ed.
First quarter of 2021.
Youll saw Youll see that there was roughly $1 $5 million of development that was that was capitalized.
Was.
What was the most public companies, we look at our stock and say, there's no way, we're selwyn chairs at this price at least not today. So so we've got a capability that that's available to us at a point that we're excited about the the price that the the shares of receiving we may choose to exercise the the capabilities there.
Raising capital that could be used you to help us to write to grow the business again, both organically on potentially through acquisitions.
And as mentioned that our preferred stock at this point just fully redeemable and it's been a great source of of capital for us without having to sell shares it to lower price.
Well when the price is is right we might start selling common and we might start redeeming preferred you never know.
Thank you.
Thanks Alan.
We will now take our next question from cheap Manheimer from colors Securities. Please go ahead.
Thanks, Good morning, and congrats on a good quarter I wanted to just continue with the the organic growth theme for a moment can you talk about the percentage of bookings that you're generating from net new customers.
Thank you Jeanne and good morning is good.
Good question and again as as cause you can just give to get some more color. So in terms of the that's on the percentage if you're thinking about a difference between the up sales versus the the new the new customers.
So if you look at the numbers today.
Severe above if you look at the last two quarters collectively about 50% of those are coming from the new customers and.
And then in about another 30% that comes from some of the existing practices growing by any more more and more other smaller groups. So he continued to be able to go on and sell them and because you need to add more on and it's still keep bringing those new new customers to us about 20% is coming has after booking.
<unk>.
Wanted to win up sales over the last two quarters how.
How would you like to add any any further color to it.
No I think I think you've covered that well hobbies.
But I think it is is worthwhile to note that we do see a tremendous opportunity, where we're providing revenue cycle services to roughly a quarter of our client base that are on our software platforms.
Chris Management software platforms, and there's a very strong focus.
Of our sales efforts is on selling to existing clients. In fact, we have dedicated team to do so.
Hi.
Yes, good color. Thanks, thanks to both of you.
And if you could comment on some of the attrition trends in the business or are you seeing them higher or lower I know with meridian coming up on about a year old now has most of the expected attrition from that transaction already played itself out.
Okay. Good good question again G.
As you know in this industrial space on 12% attrition is considered to be stolen and an acceptable range due to the various factors.
Last year as we disclose on Red tank on attrition was closer on 989, 9% and for this year as well so far we're happy to report we are if not exactly if not the better we're tracking towards the same number. So we have not seen any any difference much and download.
And there is a different day it is towards the positive site.
Alright, well, that's that's good trends thanks for that.
And last one from me then is an update on your force program I thought I heard Carl mentioned that it's maybe about an eighth of of sales are there any new client arrangements to speak of here and how do we think about the overall contribution.
To revenue as it is at greater than 5% of of company revenue for example, and that's it from me. Thanks.
Great and again Jean.
Typically do not publicly disclosed the numbers in terms of the revenue from these specifics, but maybe cause you can talk about an overall the force opportunities.
Thank you honey.
Yes actually.
We did see force being roughly eight of the most recent sales numbers. We do think that there's there's been opportunities because we really just launched force in the second half of 2019.
And the primary sources of revenue their workforce augmentation white label the software applications.
What we are seeing is it's a very natural outgrowth of our acquisition strategy.
So a number of the.
The deals on our pipeline have come from that so it's somebody who we'd looked at for an acquisition that might not have been a great spirit.
But we can go to them and say.
We can provide you with with certain resources and and that's been I think a home run force.
Hi.
Okay.
<unk>.
Okay.
We will now take our next question from Kevin.
Kevin D D from Hey, Chi Wen right, Okay. So I have.
Hi, Good morning, gentlemen, thanks for taking my question I, Yeah, how do you I'd like to go back to force them, just sort of understand how.
How you integrated that into your sales and marketing effort I'm glad Carl's on the call. Maybe you can no throw a couple of words in on it and maybe Steve If you could comment on it too given that it sort of crosses over on and the enterprise software for.
Ourselves as well as driving the M&A.
Mmk effort.
And good morning, Kevin and thank you for a question maybe I can I can start and then have been quinton can take it or anything.
Any that within one pieces is as you understand do you have are you able to global work force of about 3000 employees and not on leaves on the operation side, we have a 600 plus.
The team members so the whole logic behind starting this force was the same providing the offshore combination often offshore and onshore resource on workforce not only on the billing operation size, but at the same time day ever possible on the technical technologically site from it.
And the resource perspective.
So that's how we started we believe we are in the best position since because of this toolan track record of over the last 20 years and expertise and the client retention and have other ability of being working over 50 different platforms.
<unk>.
I've done it over to cough or for any other further edition he would like to do.
Thank you yeah, just to provide you some color on the sales process were force.
With the.
Development of the big.
Of the <unk>.
Large room that I would call it a sales opportunity, which is selling into practices that are enterprise level Uhm, we have spent a.
A good billing mefford training up our existing.
Large groups sales tubes, which is six people plus myself.
Where anytime that work in talking to somebody about a large software deal.
We also can offer them.
Labor in addition to that and actually we've had some some very recent successes in our sales process by doing so so I I think that's really kind of Ah. It's now become an integrated sales process rather than an isolated one where we're looking not only at.
New deals, but also with the existing clients that day is there an opportunity for us to provide you some background services.
We've also seen the very significant interest you.
Providing white label software applications to billing companies on the line.
N E HR company. Thank you <unk>.
And I'll, just grow and one last thing and thanks, Kevin again for your questions and.
You're absolutely right there is.
Synergy between the the MTBC force opportunities and the acquisitive growth opportunities.
I think we continue to see that.
Interesting trend, that's really perhaps more driven by.
Did you need time that we've lived in over the last year or so really relates to the fact that loan forgiveness for instance, Thunder TPP loans, which are very common with regard to the the smaller RCM company that strength.
Are good candidates.
So that loan forgiveness is really enlarged heart Ah conditioned upon retaining employee and part of that thesis or the opportunity around force is really to to reduce some of the on shore labor costs in favor of leveraging.
Yeah, let's expenses.
Global team members and technology, So I think that's it.
While the while they're kind of a holistic.
Industry business trends are actually moving increasingly faith in the direction of the force opportunity I think.
On short labor costs continue to go on.
I think this TPP loans and other similar incentives that it's on a good job in terms of encouraging employers to repaint employee I think is a bit of a countervailing trend when debt.
And then you're stuck with the momentum channel.
Rarely in that regard but.
Any of that thanks to your main question absolutely those synergistic relationship between the two continues to exist and we think will be a.
Powerful.
Driver on both sides of the equation.
As the year progressive in future years.
How do one other one for me I I don't understand I guess the.
How you intend to commercialize the consolidator package that you.
That you talk to when your prepared remarks it it it seems to me that it's.
One of your competitive advantages and Differentiators could you could you just short on explain a little bit how you can translate that to something that you might offer someone else.
Yeah sure.
The question came in and let me just give some some little background to it and they'll come to to answer your specific question there'll be a very excited about this new too.
Part of our garden plans for a suite of interoperability products. This can't close conductor ended and integration interoperability engine and while this concept of Europe line does not necessarily a new one in the market, but do you believe that over approach to how we are trying to achieve this capability would be.
We're excited about this new solution for quite a variety of different reasons. As you may know there are many different types of systems debt be must integrate in the industry integrate.
Submitted in order to best serve.
We are in their customers.
These can be anything from other factors management systems to Thr's, two labs and state registry. Traditionally this is being done using many standard such as H M seven fire or many of the price leaf vendors. So over the years, we have had two babies. So many of these interfaces and so.
Sort of our customer needs.
So this cannot conductor now we are able to unify these interfaces into a single view any simplified this experienced whatever teams internally and cut the time it takes to integrate with other system significantly.
This will also provide the ability to centralized management of all inbound and outbound data screen also give us one has been visibility on the services to provide.
Talk to a cough.
The entire the entire process.
Please slowing of data 16 within all the care cloud organization that is on the radio and and number of other that we have acquired I.
Said reuse able and streamlined third party vendors vendor integration via proprietary interface library that you're calling them up so on.
All this while simultaneously reducing reliance on third party integration company or technologies and the costs associated with them.
From the.
On the day tonneau side This'll, absolutely helpful by cutting the the time it takes to maintain interfaith night.
We will have to spend net cost in terms of the the man hours and net complicated in terms of the <unk> implementation Bill yet. This project is not completely entirely noon and the market day or a number of other 10 minutes. The reason that they give out there, but I think in terms of when you could look at England from the pricing.
Standpoints similar to any of that.
Offering you should be able to offer that we believe it a fraction of the cost of any other.
The company on the vendor, they're all senior citizens. So on one side, we have we have.
Those library of of integrated on integration libraries.
Interfaces, making over the last to be gay and not only vid emptied the annual care Clowes Rhodesian MTBC company, but these other companies. He has acquired from you have consolidated all of that and the one that we believe will be on one one advantage competitive advantage of any bold when you try to commercialize historic along with the cost.
Cost impact.
I got it I got it okay well. Thank thank you very much gentlemen, thank you really appreciate it.
Thank you. Thank you.
We will now take our next question from David Larsen from B T. I G. Please go ahead.
Hi can you talk about your M&A plans going forward are there any products in the market that you feel like you know.
Philly filling need in your portfolio of solutions that you have now and I'm thinking along the lines of.
Perhaps like pay are facing or planned facing or self insured employer facing solutions, where you can charge I could pm PM right and getting into like remote patient monitoring spent a lot of chatter about that recently, obviously, what the Wall Street Journal article that was published earlier. This week just any any such there'll be very helpful. Thank you.
Thanks for your question, David and as you alluded to historically, our acquisition targets have really come from either of the revenue cycle electronic health record pm GPO.
Hi type.
Type verticals.
We're actively looking for companies.
Still in those target markets were really think there is a significant opportunity and where we can really add value. But we are also tier to answer your question exploring other verticals things like revenue integrity or pop health patient engagement scheduling analytics carrying navigation network.
A whole variety of other verticals, where we also see an opportunity to add value.
From Ah acquisition perspective, the primary driver of that focus is not per se to to acquire the technology.
In some in some instances there is some real value added in care cloud in Meridian are good examples of that but probably not the main strategic driver with.
More than 400.
<unk> members globally.
Including many talented team members also here in the U S. In addition to those we have offshore who are employed by US we really have the capability to develop the technology that.
That we believe.
We will continue to make us competitive in this space and help us day.
On the leading edge when it comes to the opportunities.
Okay, great. Thanks, very much income congrats on your performance.
Thank you. Thank you.
We will now take our next question from Michael Valentino from Chopin Davis. Please go ahead.
What day, everybody great quarter. Thanks for allow me to ask the question. This is for <unk> and Steve specifically can you give us an update on how successful.
Claire Cat or MTBC is bailey integrating the technology from the acquisitions last year Meridian specifically.
Obviously, the Clare County clerk cloud acquisition.
How has it been putting the pieces of the puzzle together and and more importantly, the second question I have is are there opportunities to cross cell.
New capabilities to your existing client and I assume that was the game plan all along with you can elaborate on on it a little bit. Thank you.
Okay. Thank you my on good morning, and then thank you from the question.
And <unk> is a technology integration is we believe is going very valid according to our.
Plan we.
We continue to grow older overall value proposition extensively and expand the main categories verdicts, we offer between the.
The kicked out on television acquired or no Meridian medical management from revenue cycle management to practice management software to industry meeting.
Healthcare business intelligence tools and precision innovative on moving patient expedience Magnum back from Greece. We continue also to find new and exciting opportunities with over the market process automation box as well.
Given examples off, albeit integrating breeds for example, with talk THR put over a small practice segment and the Breeze was technology is for the practice management debt.
Mmk, so I'll be acquired.
He had this upgrade proprietary products that we have been able to do now almost implemented to bees integration, we'd talk EHR that some of declines B b.
Being trying to use on a on evaluation version.
We are also leveraging over.
Box initially internally because naturally believe there on one from one perspective, the proof of the concept comes in at the same time that helps us.
Eliminate some of the mundane task entirely.
Been to significantly improve the operational the workflows and then in addition to that from the cost standpoint at the.
The same time that RBA bots are we are currently working at D. C. Two other large enterprise groups that we have between the different platforms in the in the process of integrating those Mike Martz those the windows clients.
In the same way they are circumcised lifted talkie assure and care cloud.
The EHR and the practice management, which basically says different market segments. So we continue to also talk EHR to the to the small practices and at the same time and in some cases to the medium sized groups and we continue to do offer we continue to go to market for the Kid cloud platform for the media.
Two large enterprise, though so those are those speed net as a day or so on one side is a strategy what to sell enrich market segment and on the other side Bedizen interoperability on integration between the different technologies that is taking and happening and retention into sales.
The different markets.
Do you actually do break those numbers add in terms of sales from existing clients from new technology that you've acquired through these acquisitions or is that.
Not broken out.
And now we do not.
Likley relieves those number that those those numbers.
Thank you. Thank you.
Thank you my thanks for your question.
It appears there are no further questions notify Ms blanch or possibly call. It back over to you for an additional are closing remarks.
We'd like to thank everyone to join US on today's call. We appreciate your participation and interest at the company and we look forward to speaking to you again next quarter.
Thank you and have a great day.
Thanks to everyone.
Thank you.
Expenses today's call and thank you for your participation you cannot disconnect.
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