Q2 2021 Convey Holding Parent Inc Earnings Call
Good afternoon, and welcome to convey holdings parent Inc's second quarter 2021 earnings conference call and webcast all participants will be in a listen only mode throughout the presentation, but after the presentation has concluded there will be an opportunity to ask.
If you'd like to budget. Your question. Please press star followed by one on your telephone keypad.
Please note this event is being recorded.
Leading the call today is Stephen Fowle, Chief Executive Officer, and Tim Fairbanks, Chief Financial Officer.
Before we begin we would like to remind you that certain statements made during this call including during the Q&A will be forward looking statements pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act.
These forward looking statements are subject to known and unknown risks and uncertainties and reflect our current expectations based on our beliefs assumptions and information currently available to us.
We caution you that forward looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes may differ materially from those made in or suggested by such forward looking statements.
Factors that could cause actual results to differ materially from those reflected in forward. Looking statements include those in the risk factors section of our financial prospectus for the company's RPI filed with the SEC on June 17th 2021 and its other filings with the Securities and Exchange Commission Excel.
It just required by law, we undertake no obligation to publicly update any forward looking statements, whether as a result of new information future events or otherwise.
In addition, please note that the company will be discussing certain non-GAAP financial measures. That's it believes supplement investors and other rages understanding and assessment of the financial performance of the company.
More information on these non-GAAP measures, including reconciliations to the most directly comparable GAAP financial measures can be found in the press release that is posted on the company's website or furnished on form 8-K with the SEC.
With that I'd like to turn the call over to convey C. E O. Stephen Farrell. Please go ahead Steven.
Thank you I'd like to welcome you to our first earnings call as a public company to discuss our second quarter 2021 financial results.
Although we are disappointed with the stock performance since the IPO, we believe that revenue and adjusted EBITDA growth will eventually be rewarded by the public markets.
Let me start with what we've been doing since the IPO.
First and foremost we are focused on increasing revenues and adjusted EBITDA and the excellent results. We achieved in the second quarter of 2021 highlight that commitment.
Second as you know management elected to purchase almost $2 million and stock shortly after the IPO. So we are committed and we have put our personal capital to work.
Third we will be meeting over the next two weeks with potential new investors.
Our story is complex and we plan to work hard to make sure investors know and understand the story.
Fourth we intend to participate in the Morgan Stanley Conference next month.
I want you didn't know that we appreciate your patience and we are working hard to create value for shareholders and customers.
I'm joined today by Tim Fairbanks, Our Chief Financial Officer, and John Steele, Our executive Vice President of Technology.
Well, we had the opportunity to meet with many of you over the last several months.
We should start the call by providing some background on convey as well as some high level thoughts on our quarterly performance our growth strategy and our 2021 guidance.
Tim will provide more details on our financial results before we open the call for questions.
So who are we.
We're specialized healthcare technology and services company that helps Medicare advantage plans increase their revenue and reduce expenses.
We improve health plan operations through our technology that both streamlines complex processes and improve member engagement.
We sit at the intersection of the Health plan and the health plan member.
We help the member access their benefits and help the health plan administer benefits to the member.
Our clients include eight of the top 10 health insurance plans with an average relationship of over eight years, and we address 19% of the Medicare advantage population.
Our team helps millions of health plan members navigate the complexity of Medicare advantage and Medicare part D.
We believe we have an entrenched client base and established leadership position in Medicare advantage and a recurring revenue model that gives us great insight into future revenue.
The earnings.
We operate in large and growing markets and when our clients grow we are the beneficiaries of that growth.
We believe that the Medicare advantage market will grow at a 7% rate annually for the next four years.
We serve approximately 160 clients, including most of the market leaders and the demand for our technologies is strong.
The average age of the U S population is increasing and value based systems like Medicare advantage are growing in popularity.
We think there will be more government involvement in health care over time and that will lead to expansion of Medicare advantage programs.
The microeconomic and macroeconomic tailwind in our business are excellent and we expect to grow our business in excess of market growth over the long term.
We believe we have a $7 billion white space opportunity for our existing technologies in our existing clients.
If we did not add new technologies or new customers, we could still grow to more than 25 times our existing size.
This is our sweet spot for the next few years.
Of course, our intent is to add additional technologies and additional services to our platform.
As we do that our total addressable market expand to $77 billion.
Expanding into Medicaid or commercial insurance would increase our addressable market opportunity to over $200 billion.
We've already identified meaningful cross sell opportunities across our tech enabled solutions and advisory services businesses, and we have a proven track record of driving greater efficiencies than our competitors.
We have purpose built technology, which is designed to be used in the Medicare advantage and PDP market.
We have developed technology for the government sector, we havent re fit commercial technologies to work in a more complex and highly regulated government sector.
As a result, we think we are able to produce a higher quality result for health plans at a significantly lower total cost of ownership.
Since we have purpose built technology, we should have a competitive advantage as it allows us to deliver high quality at a lower total cost.
We operate our business in two segments technology enabled solutions and advisory services.
Both are growing nicely and are meaningful contributors to our top and bottom line growth.
Our advisory practice, it's a tip of the spear for us keeping us close to market trends identifying new technology opportunities, making introductions for our technology team in closing technology sales.
Our technology segment, which is over 80% of our net revenue to date streamlined the administration of Medicare advantage and PDP plans.
Proves member engagement and clinical outcomes.
And identify gaps in quality and health plans, so that health plans can optimize revenue and data integrity.
We have good line of sight on future revenue and strong retention rates. So it's a powerful business combination.
We have great technology, great people, a growing market and a strong recurring revenue model. We think we have good line of sight on future revenue and strong retention rates and that dramatically improves our ability to grow and to forecast.
We believe that our business model is strong and predictable because we have long term relationships with clients and strong recurring revenue.
This is a complicated business, but one we intend to help investors understand.
How do we compete in the marketplace, let's talk about sustainable competitive advantages.
First as I mentioned already we have purpose built technology designed for the government sector.
Second we have a history of showing our clients that we add value and we have great solutions for them. We're a trusted partner as evidenced by our eight year average tenure with our top 10 clients.
Third we have managed to combine the cultures of an advisory team and a technical operating team in a manner that yield excellent outcomes for our clients.
Finally, we have a strong and dedicated team that is committed to our clients.
So what are our building blocks for sustainable growth.
First we believe that the Medicare advantage market will grow at a 7% rate for each of the next four years.
Second we believe we have a $7 billion white space opportunity with existing solutions and existing clients. We are only scratching the surface of what our clients could purchase from us.
Third we are bringing new products and offerings to the market through internally developed solutions and expansion of existing solutions. We think the larger providers like us will win over time, because health plans want to consolidate vendors and simplify their.
Go to market strategy.
The more we can offer the better.
Fourth we are beginning to sell into adjacent markets like managed Medicaid and commercial.
Fifth we will consider adding additional capabilities to supplement our internally developed solutions. Our M&A pipeline remains active we have a history of accretive acquisitions, having acquired three businesses over the past four years.
We have a great team and great products and a growing market. So we will be disciplined regarding our M&A approach and strategy.
However, I know that our clients look to convey for value added technology solutions. So it make sense to both build out those capabilities internally.
And to acquire solid and profitable solutions to support our organic growth.
Our approach to the market is paying off we have had a great first half of the year, achieving net revenues of $157.9 million and adjusted EBITDA of $31.1 million.
For the full year, we expect net revenues to be in the range of $330 million to $340 million and adjusted EBITDA to be in the range of $66 million to $68 million.
The midpoint of our revenue and adjusted EBITDA guidance ranges for the full year of 2021 represent year over year growth of approximately 18% and 30% respectively.
Tim Fairbanks, our Chief Financial Officer.
John Steele, who is also with us today, and who runs our technology segment.
Kyle Stern, who runs our advisory practice and I have been with convey or subsidiary for more than 50 years combined so we know the company.
We are supported by an advisory team plus an outstanding team of operating and technology leaders. So we know the market.
We have extensive public company experience and we're fortunate to have a business model that we believe yields consistent growth and predictable results.
Before I turn the call over to Tim to review, our financial results I want to thank our employees for their hard work and dedication.
I am proud of our accomplishments and the great technology platform, we've built and I think we have a bright future Tim. Thank you, Steve and thanks to everyone for joining the call today I want to provide some highlights from our IPO review, our second quarter financial performance and then provide details regarding our newly issued.
2021 financial guidance.
We completed our initial public offering on June 18th where we raised gross proceeds of approximately $163.3 million through our primary offering of 11.7 million shares.
Aggregate net proceeds to us were approximately $146.1 million after deducting underwriting discounts commissions and other operating expenses.
We used $131.5 million of the net proceeds to repay outstanding debt.
Following our IPO, we had $21.4 million in cash and cash equivalents and $39.5 million available on our credit facility. Our total debt was $192.6 million, excluding unamortized cost of $3.3 million.
Moving to our second quarter 2021 financial performance, we produced strong financial results.
Our net revenues were $75.2 million, an increase of 22% over the second quarter of 2020.
Technology enabled solutions segment revenue was $61.4 million during the second quarter, an increase of approximately 18% from $52.1 million during the prior year's quarter.
Primary drivers of growth were 19% and 22% revenue growth and health plan management and data analytics, respectively.
Advisory services segment revenue was $13.9 million during the second quarter, an increase of approximately 47% from $9.5 million in the second quarter of 2020.
We remain encouraged by the strong growth in advisory services as many of our clients have re engaged since last year as COVID-19 Lockdown.
Net loss was $13.1 million compared to a net loss of $6 million for the second quarter of 2020. However, the net loss in 2021 included $15.2 million of costs in connection with our IPO. These costs included $7.9 million for a prior acts D&O insurance premium.
$5 million of expense related to the June 21, extinguishment of debt and $2.3 million related to the onetime termination of a management services agreement with TPG.
Adjusted EBITDA was $15.2 million for the second quarter of 2021, 63% increase from $9.3 million in the second quarter of 2020.
Adjusted EBITDA margin improved over 500 basis points year over year to 20% driven by improved operating leverage in our technology segment and high utilization in our advisory segment.
Second quarter interest expense was $6.4 million as compared to $4.6 million in the prior year period. The increase was mainly attributable to the incremental term loans in April of 2020 in February of 2021.
We recorded a tax benefit of $5.2 million as compared to a $1.5 million tax benefit for the prior year period, our effective tax rate before nonrecurring items was approximately 27, 8% the nonrecurring item relates to the creation of foreign tax credits.
On a year to date basis consolidated revenue was $157.9 million, representing a 25% growth over the first six months of 2020.
On a year to date basis, adjusted EBITDA was $31.1 million, representing an 81% increase over the first six months of 2020. This significant year over year profitability increase was driven by a recurring revenue model high customer retention and better than expected operating leverage these.
These adjusted EBITDA growth rates will be impacted in the second half of the year by implementation costs related to a significant client upsell, which we won last year and we will begin producing revenue in January of 'twenty two.
In addition, we have incremental public company costs. This year that were not included during 2020, however, the midpoint of our adjusted EBITDA guidance range represents 30% growth over full year 2020.
Moving to balance sheet and cash flow items as of June 32021, cash and cash equivalents totaled $21.4 million and we had $39.5 million available on our revolver.
Total debt, excluding unamortized costs of $3.3 million was $192.6 million, while net debt was $171.3 million.
Net cash used in operations. During six months ended June 32021 was $21.1 million.
Our use of cash was mainly driven by a $7.9 million nonrecurring three year prepayment of D&O insurance.
$10.3 million for the final contingent payment related to the TPG acquisition and $1.6 million of public company readiness costs.
Cash used for capital expenditures and capitalization of software development costs were $6.3 million combined for the first six months of 2021.
Cash received from financing was $3.3 million aside from the net IPO proceeds and pay down the term loans, we paid the final earn out due to the previous shareholders of health Scape advisors LLC as outlined in the acquisition agreement.
Lastly on July 12, we amended our credit agreement, reducing the applicable rate as defined in the credit agreement for Euro dollar rate loans from 525 to 475 basis points and reducing the floor for the euro dollar rate from 100 to 75 basis points. These changes represent a $75.
Basis point decrease in our interest rate moving forward.
To close our remarks today, we are proud to have reported 63% year over year adjusted EBITDA growth in our first quarter as a public company as Steve mentioned, we expect net revenues for 2021 to be between 330 and $340 million and adjusted EBITDA to be between <unk> 66, and $68 million at.
The midpoint of these ranges this would represent an 18% increase in revenue and a 30% increase in adjusted EBITDA for 2020.
Finally, I want to thank all of our employees for their hard work and dedication to convey.
Operator, we're ready to open the call to questions.
Thank you if you'd like to ask a question. Please press star followed by one on your telephone keypad now.
If you'd like to withdraw your question. Please press star followed by T.
<unk> to ask a question. Please ensure that your phone is on mute it likely.
Our first question.
Comes from Richard close of Canaccord, Richard Please go ahead.
Great. Thank you congratulations on your first earnings report here Tim.
Tim.
Maybe on gross margins was there anything.
Specific in there maybe one time in nature.
That occurred during the quarter and how should we think about gross margin on a go forward basis.
Yeah, Hi, Richard Thanks for the compliments, yes. So there were one time items, obviously those gross margin.
Percents are unadjusted. So we still have some lasting COVID-19 impact that has been adjusted out of our adjusted EBITDA results.
That said.
You know.
There are still.
Certain supply chain pressures, along with wage rate pressures that we all see out there in the broader macro economic environment.
For across all industries that are somewhat impacting the gross margins I feel like ultimately, we probably under adjust.
For some of those impacts just because I think the lines are starting to blur a little bit now around what is true inflationary pressure versus.
A true COVID-19 pressure that we can with a straight face adjust from our earnings. So we chose not to that said.
We are experiencing much better operating leverage.
Than expected and so when you when you put all of those different factors.
Into the P&L.
We still have achieved better better EBITDA margins than expected.
Okay.
And then.
Maybe this is for Steve or.
Or whoever wants to take it but with respect to the M&A.
Are you guys thinking more you wanted to concentrate on.
The tech side of the business or would you add to advisory.
Okay.
Yeah, Hi, Richard it's Steve So we are.
Intending to continue to grow our advisory business organically. So I think it's unlikely that we would do any meaningful M&A around purely.
Advisory work.
So the M&A is much more likely to come on the tech side, either in new markets, whether that be managed Medicaid or commercial or more likely an expansion of our existing capabilities whether that be in clinical management.
Lead Gen risk adjustment utilization management.
And network management things like that.
Okay and can I slip one more in I'm just curious what degree.
We expect the supplemental benefits I know income payments put out a press release that Theyre doing some partnership with you I was wondering if you could just update us maybe on the <unk>.
Supplemental benefits hub that you've discussed in the past.
Yeah.
Sure. So let me let me start by describing the relationship with with income so.
No.
Income.
Has done a very nice job.
In terms of creating gift.
Gift cards, and debit card solutions that support in store purchases of health and wellness products.
As as you know we are predominantly a.
Mail provider, although we are creating this hub to access.
Multiple supplemental benefits, but today, we're primarily in the OTC benefits.
The supplemental benefits trends have evolved very rapidly and they are growing very rapidly as they are an important means of.
Helping Medicare advantage plans grow their membership and retain their membership supplemental benefits also have a clinical benefit in terms of reducing downstream cost for Medicare advantage plans. So the trends have changed very rapidly.
And we as a result have been actively developing technology like this central hub.
To adapt to the to the demands. So this partnership that we've established with within Com.
Allows us to bring the best solutions to our clients whether that is a traditional mail solution, which we continue to believe is the best solution for <unk>.
For Medicare advantage members, because we were able to completely control the quality, but it also allows for those health plans that feel like they need a retail solution. We are now partnered with well.
We believe is the best company, that's really the market leader on the retail side. So this has I.
Thank <unk>.
Hansen, our offering as well as enhance the income offerings. So we're excited about the partnership.
And and think it will strengthen our value proposition going forward.
Okay. Thank you I'll jump back in the queue congratulations.
Great. Thanks, Richard.
Thank you. Our next question comes from Mike <unk> of Bank of America Michael.
Michael the floor is yours.
Good afternoon, and Echo my congratulations on nice first public quarter.
Giving them a little bit Steve.
In terms of making sure I understand that you highlighted numerous times the white space you have with your existing customer base, maybe for people that are new to the story can you give us a little more sense on how the visibility on some of those Upsells cross sells whatever you want to call them factors into the business and as you go over the course of the year in particular within your existing.
Listing customer base at what points do you have the highest degrees or at what point does visibility confer into how growth will be put into place for the following year beyond that.
Yes, absolutely.
Thanks, Michael.
So in terms of the white space just to spend a minute there.
That $7 billion is how much of our existing technologies technologies. They are already selling into the marketplace, our existing clients no new clients, how much our existing clients could purchase of our existing technology and so.
I think I've said in the script that that's the sweet spot for us and the reason, it's a sweet spot as we don't need to go out and.
Establish new relationships or new clients, and we don't need to either build or buy new technologies to go after that that $7 billion of white space in.
In terms of.
B the model N.
The cross sell visibility and when do we have a good idea for what next year looks like.
There is a.
A system here, where an annual enrollment period from October 15 to December seven.
That all of the Medicare advantage plans go through.
As as we mentioned in the script.
When our clients grow.
We grow we're the beneficiary of that growth. So our growth can come either through just client growth or through new wins, and we're very fortunate because when our clients do well, we do well and we're partnered with a lot of the winners in this space.
So what does that mean to be directly responsive to your question.
We will between now and kind of the end of January.
Every week or every month, we'll have a clearer picture for what next year is going to look like December 7th we all have a very very good idea for the membership of our Medicare advantage plans.
We are getting here over the next few months.
A good good insight into our pipeline and then.
Why do I say January as opposed to December 7th because by the end of January we start to see.
Specific ordering patterns for new types of members that we're bringing onto our platform.
So by the end of January.
We have extraordinary insight into the rest of the calendar year and between now and January it'll the picture will become clearer and clearer, but we are expecting to.
To have a good year for the rest of this year as outlined in our guidance and.
And we are optimistic regarding next year.
Thanks, Steve that's helpful. And then just to dive a little bit more into the quarter Advisory services. It seems like it grew pretty nicely as you think about coming off of Covid and return of many employers towards normalized businesses. How do you think about where that shook out relative to the trajectory that you were expecting and where they are.
Are there any pauses or any concerns.
Concerns you're worried about tied to delta and some of the pausing of some other employers bringing people back to the office relative to what that means for your advisory services near term workflow near term contract execution.
Hi, Michael It's Tim Yeah. So so so you are right our technology business was a little bit better than expected our advisory business was it was a.
Was better much better than expected.
It's really nice to see we almost feel like there continues to be a little pent up demand of of projects and initiatives that our clients.
Delayed last year during the Covid lockdown in so.
The best thing about the advisory services bounce back clearly, we enjoy the revenue and earnings contribution from that.
Excellent performance, but we think of those engagements as hopefully leading indicators of our of our technology Cross sell and again it takes time, but the more engagements we have and the more dollars that advisory segment.
Our billing our clients through engagements.
Hopefully those engagements ultimately turn into identifying.
Problem areas that that the technology segment can can assist them with it.
So to us that's clearly.
The best benefit or outcome of our very busy advisers, but.
Certainly enjoy the revenue and contribution as well.
I'd, just add Michael that because of the recurring nature of it.
Our technology segment, where we are either paid on a per member per month or a utilization based.
<unk>.
We have.
Very nicely weathered.
The COVID-19 storms.
We've got long standing contracts that you.
You know a really fairly immune so if we see.
Covid continue to tick up.
It might have a small impact on our advisory business.
But on a consolidated business, that's not a real concern.
Great. Thanks, so much.
Thank you.
Our next question comes from George Tong of Goldman Sachs. Joe Your line is now open.
Hi, Thanks. Good afternoon, just wanted to dive further into cross selling upsell clearly a key driver of revenue growth at the company and that significant Pam could you perhaps elaborate on the amount of cross sell upsell activity that you saw in the quarter and provide some metrics.
On the on the amount of activity. In addition to perhaps how much is included or reflected in full year guidance. What are you assuming for cross sell upsell for full year 2021.
Hey, George it's Tim So cross sell and up sell is typically or I should say always an annual metric for us. The reason being is that we are right now in the middle of our of our selling season. So.
Plans in new clients and Upsells that we win.
We're papering those right now, but typically in obviously theres small exceptions, but typically those wins and the revenue recognized from those wins will be for the new plan year, which is which will be January one.
And so trying to parse out cross sell up sell in any given quarter or months.
Is just an incomplete picture because we're in the middle of all of those sort of selling activities right now.
With just a number of existing clients, both new clients and cross sell upsell of existing clients and so those are metrics. We look at only kind of on an annual basis, just because of our business model is OE structured around serving our clients for plan years, which which is defined as January one through through December 31 to go back.
Back to what I said earlier, where we are between now and the end of January increasingly as each month passes get better insight into into next year. The reason that by the end of January we'll have a really good idea about what next year is.
Because most of the Upselling and cross selling for next year, we will have been done there'll just be a little bit more on the income and.
Incrementally on a value based business or or advisory, but and the bulk of our business. The cross sell up sell is done by January.
Yes, it makes a lot of sense and I guess to dive deeper a follow up on that question.
Given cross sell activity for this year was already locked much earlier into the year, how much cross sell do you anticipate for this year 2021 as reflected in your newly introduced guidance and based on the activity you've seen so far for next year's plans.
What is that cross sell figure on track to reach for next years.
Cycle.
So in terms.
Terms of this year's guidance.
There is very little upsell or cross sell that we need to accomplish to hit the numbers that Tim and I outlined so so those numbers, we have a very high degree of confidence in.
<unk>.
Very little in terms of cross sell up sell that's required to.
To get us there.
In terms of.
The rest of this year.
We've got a very high net dollar retention of 98% last year. So we start.
The January of next year.
We are likely to start with most of the year already booked because of the work that we've done in previous years and this year.
But it's going to take us I would say in another four or five months here to have real good insight into the cross sell up sell that we are doing currently and how much of that is going to flow through to next year.
Got it makes sense. Thank you.
Thanks George.
Our next question comes from Anne Samuel of Jpmorgan.
Please proceed with your question.
Hi, guys congrats on the quarter and thanks, so much for taking the question.
With maybe just hoping to kind of circle back on that and that cross sell opportunity as we think about the 2022 cross sell revenue opportunity that youre working on implementing this year, how should we think about how much of that expense related to that is in the back half of this year and is there any nuance to the timing of that as we think about cadence for Q4 Q.
Yes, Hi, it's Tim.
So in general kind of our institutional cross sell upsell won't have a bunch of frontloaded expense.
Typically.
You know, we don't have a bunch of upfront expenses for normal cross sell upsell. However.
As we mentioned or as I mentioned in our remarks during the earnings call.
We have a significant up sell that.
That we won.
About six months ago, and it's so significant to long term contract.
That the revenue begins contributing January one 'twenty two given the significance and size of that win there will be one time upfront costs, most of which will be in Q3, but also Q4 that'll slow our adjusted EBITDA growth rates a bit so we.
About year to date being 80, 283% year over year better on the adjusted EBITDA line, we talked about the midpoint of our guidance being 30% better year over year, and so that deceleration of EBITDA growth in part is due to <unk>.
Some of these one time implementation costs. However, certainly we'll enjoy the revenue contribution from all that work and expense.
Beginning next year.
Hi, and it stayed about I'd also add that the annual an annual enrollment period is the period in which our.
Expenses can go up as we are onboarding members that will benefit us in next year.
That makes a lot of sense very helpful. Thank you.
Thanks, Dan.
As a reminder, ladies and gentlemen, if you'd like to ask a question. Please press star followed by one on your telephone keypad now.
If you change your mind. Please press star followed by two a month of paying to ask a question. Please ensure that you'll find is on me too likely.
We've had a follow up question from Richard close of Canaccord. Richard Please go ahead.
Yeah, Thanks for the follow up.
Steve I was wondering if you could just address two items.
Obviously.
There has been.
Some questions regarding your customer concentration.
So if you can just go over why you don't think that's an issue and then also the Amazon or Walmart effect in terms of you know.
Someone like that coming in and you know maybe doing what you guys do.
How you feel about that.
Sure so on the on the customer concentration question.
Yes, understandable, but I think the risk is dramatically overstated by the numbers and the reason is we've got multiple.
Technology offerings or advisory offerings that are purchased by our largest clients so our largest clients.
<unk> are also the clients that have been with us the longest period of time and so in some cases.
The sales cycle can be a multiple year over year sales cycle.
And so we end up.
Generally with our client winning just one technology solution or potentially an advisory solution.
And then as we get to know them as they understand our value proposition, they buy more and more and more from us and so we're.
Although the concentrations that we've outlined in the Q or are correct I think.
That they overstate the real risk because those con.
Concentrations are spread over multiple different products.
In terms of.
Amazon risk.
I would say there are a couple of things the first is.
They and I know that they've made some forays into healthcare, but.
They are not government sector of healthcare experts like we are we live and breathe.
Government sector work.
Our entire organization goes through compliance training.
We understand the rules, we know that we need to follow the rules and part of the reason that our health plan clients Trust US is because we know the sector. So the second thing that I would say is we're dealing with the senior population and.
The member engagement aspect.
Is absolutely critical.
What we do we know how to interact with seniors and.
And if you.
You've ever called the Amazon.
Call Center for for assistance with.
Order.
No that it's probably not a.
Our system that translates very well into.
The senior population.
Okay. Thank you.
Thanks Richard.
We have nice I had the questions in the queue. So on behalf of <unk>. Thank you for joining us on today's earnings call.
Now disconnect your lines.
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