Q2 2022 American Well Corp Earnings Call
With the enhanced patient outcomes with multiple paths of care, including automated programs and coach Inc.
Specifically silver cloud health researchers found that up to 80% of users show improvements in their depression, or anxiety and 56% of patients with clinical diagnoses are diagnosed free within three months of command.
And care.
Our modules and programs also drive better outcomes, which also directly impact the bottom line.
For instance, our dermatology program successfully reduces the wait time to see a specialist from an average of 35 days to less than 24 hours.
And sort of health MSA programs have demonstrated 60% lower rates of surgery intent lower reported levels of pain and reduce medication consumption by nearly 50%.
When a program can address the health concern in a timely manner and return that patient to work with less complication.
<unk> to payers and employers is significant.
We are empowering data collection that can inform and validate the benefits of new and efficient workflows.
The dignity health digital behavioral health team told us they aim to make virtual care indistinguishable from in person care.
Two insights from the data they are using to demonstrate quality outcomes.
With our programs they were able to drive behavioral health visits up from 300 per month to well over 1000 per month, allowing dignity health to dramatically leverage their providers and extend the benefit of digital care in the behavioral health Ram.
Additionally, our solution empowers and accelerates our customers' urgent need to reduce burn out and retain their teams.
Last quarter, we told you how spectrum health or saving $1 million per year by lowering EDI readmission rates.
Specifically spectrum use our technology to create a new transition team that stands between patients and the EDI to buffer the demand to managed care and to allow care providers to spend their time appropriately.
This solution is resulting in such a compelling provider experience. The spectrum team uses the program is the recruiting tool when competing for talent.
Our converse automated and engagement programs increased patient touch points, while reducing unnecessary outbound calls to patients by as much as 50% and have demonstrated more than doubling of nurse capacity for post surgical patients.
Also addressing the crisis in clinician burnout, our automated care programs augment the care team, enabling them to practice at the top of their license.
Converse of programs are increasingly being recognized for their important role in the future of digital care.
A recent article by authors at the University hospitals, Cleveland described the benefits of our automated care programs in helping to overcome obstacles to conventional care management outreach.
The authors highlighted earlier interventions when programs occur improved outcomes.
Stronger trusting relationships between patients and care managers as key benefits.
The patient experience is excellent with our worlds converts the programs with research showing that 97% of patients say our automated programs are important in their care.
If you want to experience the power of these solutions firsthand text Hello to 77 877 for several impactful demos.
These are some of the examples shared at our sales meeting and they are great stories to tell out in the field as we are gearing up our teams to sell to new customers and expand within existing months now there is one additional element of differentiation that I want to spend a moment.
Zone.
We are delivering a powerful multi fold out ROI benefits of efficiency and revenue generation with the superior patient and provider experience of our AMG providers.
AMG allows us to deliver the benefits of an extended and highly available team without competing with our clients in any way.
When customers choose we provide much needed bandwidth to help alleviate burn out and solve for critical care teams shortages like behavioral health dermatology or neurology.
Even turn this capability off and prioritize their own providers when they choose.
In fact, as we engage in sales conversations with our customers that run their digital care delivery exploration. We are finding that our history. The service provider is a differentiating advantage for us as a software vendor.
Our clinical experience awards, our team the ability to have the clinical sales conversations that will result in new workflows that deliver on the promise of digital first health care.
This gives us a powerful seat at the table.
To wrap up Q2 highlights I would like to close by saying that we are evolving our platform to help our customers make the transition from transaction on healthcare to continue self care.
Our aim is to empower our customers to achieve important ROI benefits, while delivering their organizations into the future of digital health care.
Before closing I want to add that I'm proud of the way our teams are executing during our transition year, putting in place the crucial elements of our solution driving engagement and executing on our mission to define and deliver the fundamental infrastructure, enabling the future of healthcare.
With that I want to turn the call to Bob Bob.
Thank you Peter and thank you all for joining the call. This evening.
I will highlight some of our key operating metrics then take you through our Q 'twenty two financial results.
The number of active providers on our platform is one measure we use to demonstrate the value we deliver to our provider and payer customers.
We ended the second quarter with approximately 103500 total active providers, representing 45% growth compared to a year ago providers employed by customers active on our network grew 48% versus last year.
Virtual visits have continued to grow nicely. Despite much improved access to any person care demonstrating the continued acceptance of virtual visits as a standard of care.
Total visits were over $1 5 million in the second quarter, representing 19% growth versus last year scheduled visits grew 20% year over year and represented 73% of visit volume about even with the first quarter and up from approximately 30% pre COVID-19.
We are making steady progress on converged development and the migration of our customers to our new platform is proceeding according to our plan.
In Q2 total visits on converged comprised approximately 9% of total visits which is in line with our average over the last two quarters as we have discussed with our less complicated migrations largely behind US. We are now in process on several more complex migrations with our larger clients. These customers.
Counts for a much larger percentage of our visit volume and as such we expect our converged visit percentage to rise over the coming months as those migrations are completed.
And now onto our financial results.
Total revenue was $64 5 million, reflecting growth of 7% versus the second quarter of 'twenty one.
The components of revenue are as follows.
Subscription revenue grew 10% over a year ago and was $29 6 million.
It's fairly flat compared to Q1.
This is in line with our expectations and is reflective of this year as a transition year, our long term path to profitability is grounded in our plan to drive high margin subscription revenue growth at a rate that is faster than that of our overall business over the long run.
AMG visit revenue grew 8% year over year to $29 $7 million in keeping with seasonal expectations revenue per visit was $81 similar to both last quarter and the year ago period.
Our AMG business is an important differentiator in the market and critical to many of our clients and we view. This offering is an important supporting element of our converged strategy.
Our services and care points revenue was $5 2 million versus $5 9 million, a year ago, and $4 8 million last quarter services and care points. Both tend to have the strongest revenue in the fourth quarter as customers seek to drive engagement and use dedicated funds going in Crs.
Turning to profitability gross profit margin was 43% approximately flat to last quarter and a year ago. Our gross margin can vary quarter to quarter based on mixed dynamics and we believe as we ramp up converged deployments the efficiencies associated with our multi tenant SaaS based platform will lift our gross margin.
<unk>.
Turning to operating expenses and in support of our converged strategy R&D spending was flat to last quarter at $37 1 million.
As we indicated in our annual guidance as we complete the more intensive development work on the platform R&D should begin to decline during the second half and start to normalize into next year as our long term path to profitability describes sales and marketing spend declined 12% versus Q 'twenty two.
This step down seasonally typically because Q1 is a big marketing quarter for us with important industry conference today is making preparations for our sales meeting and some first of the year AD campaigns on behalf of our clients.
Finally, adjusted EBITDA improved to negative $42 8 million from negative $47 $1 million last quarter and is in line with our plan and guidance for the year.
Transitioning to balance sheet, we are fortunate to have a substantial cash position ending the quarter with $631 million of cash and short term investments.
Turning to our outlook for 2022, we had a very successful first half of the year development of converge and migrations are proceeding well we are gearing up our teams to sell converge and customers are pleased with the product and connecting with our vision.
Also facing many challenges, including economic uncertainty margin pressure and staffing shortages. We believe we have a solution to specifically address many of these challenges, making our solution relevant regardless of the environment and we can help them evolve their organizations through this time and beyond to true digital.
First health care delivery.
We enter the back half of this year laser focused on execution and also realistic about the uncertainties in the broader market environment.
We continue to believe that the guidance we provided in February as appropriate and we are reiterating that guidance today.
To summarize our second quarter was an important and encouraging quarter for us on many fronts and.
And we believe we are very much on a path to achieving the broader strategic and financial goals, we outlined in February .
Putting our technology at the heart of our future. We believe we are on solid ground to execute through this transition year and proceed on our path toward long term high margin subscription revenue growth and expanding profitability.
That I will turn it back to <unk> for some closing comments before taking your questions.
Thank you Bob.
We are proud of our team and we are encouraged by the progress that Q2 represents.
In pursuing this strategy to deliver the leading digital care delivery infrastructure.
Future is about increasing our mix of higher margin.
Software as we pursue our long term path to profitability and beyond.
And our role in the digital care delivery landscape is clear the opportunity in front of US is large and expanding and we believe we are just getting started.
Before we move to Q&A I wanted to share that soon we will be publishing our inaugural ESG framework.
We are excited for the world to see how we view our company through an ESG lands.
With that operator would you please open the call for Q&A.
At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.
In the interest of time, please try to limit your questions to one.
Well pause for just a moment to compile the Q&A roster.
Your first question comes from the line of Charles <unk>. Your line is open.
Yes, thanks for taking the question and congrats on the quarter.
You don't wanted to just touch on Cvs here, obviously, they made their announced.
At the end of May obviously, and it will get rolled out starting next year.
My understanding is that that's been an ongoing discussion between you and the company maybe you can give us a little bit more background on how that kind of conversation started.
And sort of what were the things that they were looking for as they are thinking about it.
Actual care platform and.
And then lastly.
When you guys gave the long term kind of path to profitability.
Was that factored already into sort of your thinking at the time. Thanks.
Hi, Charles Thank you.
As you know we are very careful to never talk about any specific customers the big or small and CBS is no doubt a very important relationship for the company.
Cvs is a fascinating organization then.
Insurance capabilities retail capabilities care delivery network, GBM population management services and so much more.
We couldnt be more proud and excited about the fact that they chose us as the macro backdrop for their effort and that effort is very significant and they alluded to.
Fourth already.
As Nathan their recent earnings call.
I'm afraid that cannot provide much inflammation.
Beyond what we already shared and was approved by our clients.
But he has been very very important undertaking that will be a wonderful demonstration.
Or bar, a new platform and the capabilities.
As far as the path to profitability. This Tuesday, a generic model I did not necessarily count specific.
Clients in or out Im not sure Bob if you have anything else to add to this.
I think you've covered it.
The.
The guidance that we gave in February .
Contemplated.
Everything we.
We knew at the time.
And we had referenced a large booking in the fourth quarter.
So yes.
Okay.
You Shouldnt read into the announcement by Cvs.
Something incremental.
Two what are what the guidance we gave in February yes, great.
Great and if I just follow up Bob.
The guidance.
Reiterated on the EBITDA guide here.
Obviously, you came in better I think than expected on the second quarter can you give us a little sense on the cadence and if I recall correctly, you had talked about as you're ramping up converge.
Running typically past platforms you outperformed in the gross margins. So we still expect a.
A down tick in the gross margins then in the back half of the year. Thanks.
Yeah, Charles I would say that.
We do note that.
The quarter came in better than.
The consensus for adjusted EBITDA. It is however in line with.
How we thought the year would evolve.
The back half Theres a lot going on.
In terms of getting customers up and running finishing off the.
The converged development R&D.
And.
And kind of across the board in terms of the income statement. So.
I would.
I would stick by the guidance we provided.
At least for now for the for the adjusted EBITDA.
And not really think about that different in the context, just because of the quarter.
Great. Thank you I appreciate it.
Thank you Charles.
Your next question comes from the line of Jack Wallace Your line is open.
Hi.
Yeah.
Jackie Your line is open.
Hey can you hear me.
Now we can.
Sorry about that.
Thanks for taking the questions and.
It sounds like it was a great quarter, particularly on the expense management side wanted to piggyback on the following question and Youre thinking about the cadence of the year.
I think when we were discussing the long term.
Growth and margin trajectory the second quarter was called out for being the highest burn, particularly around the <unk>.
R&D line that looks like it was flat quarter over quarter.
Granted the commentary with some of the large migrations happening in the back half of this year makes sense, but there's also paired with.
R&D going down over the course of the year could you just help us.
You re bucket, where the back half of the expenses look to go and just within the context of about $90 million of EBITDA burn in the first half of the year.
Just annualized and that gets you to the high end of your EBITDA guidance, just trying to figure out where all the moving pieces in our planning. Thank you.
Okay.
Okay.
Yes.
No.
Im not going to go line item by line item and give you the quarterly progression but.
I would say that.
We talked about R&D spin.
Specifically coming down over the back half of the year.
<unk>.
<unk>.
I wouldn't expect.
The second quarter represents the high.
In terms of quarterly spend on R&D. So.
But we do still standby.
The thought that.
Relative to.
On a quarterly basis, we do expect to see some decline.
<unk>.
In the back half of the year so.
Whether that comes to pass.
Second half over first half or just fourth quarter over third quarter.
I don't want to be too specific around that.
But but but I would tell you that.
Don't expect that the second quarter.
The high quarter for the year on the R&D front.
Looking at looking at where we are right now.
And.
And then <unk>.
Most margins are right now and in the first quarter a bit higher than.
Then we had talked about in February I think we talked about gross margins coming in flattish for the year given all the puts and takes.
And we still stand by that so.
I think youll see.
Some.
As.
As visits ramp up over the back half of the year.
That has an impact on gross margin as services ramp up over the back half of the year that has an impact on margins. So we will we will see.
Gross profit margins come in relative to this quarter, which is probably the high for the year.
I think that probably covers.
The largest moving pieces, it's really going to be around RMB gross margins and as we get into.
The fourth quarter.
With.
Services and care points wrapping up those are some of the lower margin products.
We offer and.
And so we'll see we'll see that impact as well.
Got you that's super helpful. I appreciate it.
Switching gears here on the conversion front.
Yes.
<unk>.
Converse and silver cloud recently integrated onto the platform.
On the prior call our first quarter call there was mention of other.
Key modules that were being converted over are being integrated to converge.
What is the status of those other module.
Integrations and is that happening concurrently with the large.
Customer migrations. Thank you.
So Jack converge is very much like an operating system. It's a very very large infrastructure that is designed to hold really indefinite number of modules and pro bonds. If you only got counter converse of programs. We're looking at more than 150 <unk> program.
Triple cloud has their own <unk> programs, we recently announced.
Sort help within the K, we talked about dermatology, neurology and psychiatry initiatives and many others that really are.
Hard to count did mention over over the course the high level answer to your question is that we fully expect to add modules that are made in on well and.
The growing number of modules that are made by third parties and even our clients too.
We tie them into these unified infrastructure you still helpful.
Two our clients down the road that would not be surprised if the majority of our modems and program will not be manufactured by am will but we will just serve as a very large integration there for all parties for patients providers and of course, a bear then.
Employers.
We don't tend to announce things before they are ready, but you should fully expect more and more diversity more and more comprehensiveness across the full care continuum on converge this year and in years to come.
Got you that's helpful. Thank you so much.
Your next question comes from the line of Ricky Goldwasser. Your line is open.
Yeah, Hi, good afternoon, guys. So a couple of question, but let me start with the first one.
So when you think about enterprise clients facing more challenges now.
How is this or is it impacting just the timeline of the enterprise sales cycle.
Think about sort of kind of like selling more what are you seeing more traction our urgency that health systems versus health plans, who might have stronger balance sheets at the moment.
So Ricky.
It's a great question, we really see two contradictory trends here on the one hand, there is no doubt.
The macro wins are very clear people have some serious concerns about the economy.
People are much more careful.
When they buy the focus on ROI and we prepared to have this discussion with existing and newly customers.
Same time, it's also very evident in the digital care delivery.
Even now more than ever it's an extremely effective way to improve the financial and clinical outcomes.
And reduce cost.
In many ways I'm hard pressed to find a client or even a potential decline doesn't see digital care delivery enablement has the necessary infrastructure they would need in order to survive and compete.
In this market.
At the same time.
We understand that the ability of peoples, who can meet two very large project upfront.
We.
Translate into risk that some people are hesitant.
To make it this time.
This is why we build downward platform not only converge the combination with converge different type of clinical services.
Great.
Strategic services and even hardware in a modular way. So you can buy what you need today and have the peace of mind that you can grow into the future and that seems to resonate really well in the marketplace. So people can make the necessary investment that they can make with very clear.
Rois Super specific to their budget and needs right now this year and look at us as the multi year reliable partner as they continue in <unk>.
It's hard to guess, which one of those trends is going to win.
But overall I think the net net.
Net positive we seem to feel based on customer feedback that we have the right offering at the right time, but somewhat more resilient to macro trends than other types of products.
Okay.
And then.
Another question and this one is marissa.
Bank.
You talked about converting digital care delivery infrastructure, but as we think about sort of the Cvs relationship is the Cvs relationship could become more of a blueprint for converge being let's take particular care delivery infrastructure.
Thank you kind of like what you talked about ready to connect a PGM connect pharmacy. So you are connecting services provided in person with services that we're providing digitally is that a fair way to look at it.
Absolutely without getting into specifics on the Cvs, you're absolutely correct.
We really see ourself as an integrator.
We make a point not to compete with the different players, especially not with the providers and really bring them together to create a singular singular experience organ.
Innovation, that's really have many of the moving parts would be a terrific example.
To the capability of the platform, but even if you have less of the parts and they want to engage sharing and exchanging information and services with other organizations that don't necessarily compete with you, but really complement your offering and make it better and more sticky and more valuable to your own customers. We really created this tool in order to.
Do that which is the differentiator.
Onward, and downward platform versus other players in the market today.
Yes.
Maybe your last question I'm, not really sure, but I want to just make the point that.
I was told recently EBIT.
Maybe one of your last calls.
So I wanted to express the gratitude of mice.
And our entire team for many many years.
Terrific reviews and analytics.
And wonderful guidance and wish you the very best on the next chapter and we'll come here.
Very much appreciate it thank you.
Your next question comes from the line of Eric Percher. Your line is open.
Thank you.
The description as an integrator makes you an interesting partner for technology companies looking at health care and.
I'd love to hear are there any updates on the Google relationship and also your views on Amazon expansion in healthcare.
Digital and care delivery.
Hi, Eric.
Yes.
With Google.
Can reiterate what we've said recently they have the.
Okay.
Cloud service that we trust and we hope some of our activity on they have some technologies, especially around natural language processing.
AI that we are using we made a very important decision.
We used our clinical data repository on Google, which opens the way for us to give much better reporting and analytics, which is so important for CIO. They look at multiple vendors that we bring together and they really want not only one beach a door that they really want one set of oversight needs too.
In many ways, a patch and engage with patients. So we are very pleased with our relationship with Google but of course, we have other relationships Cerner is a long term relationship with Barnwell and now with power it'll be Oracle.
The other examples.
As it relates to Amazon.
This is.
Pretty interesting.
Potential transaction.
In some ways. It's another validation of what we said all along their technology will transform the healthcare.
Oracle example, the Bull example, or other data points of reference points, what's really interesting is that Amazon seems to think like that's the right answer is a hybrid model that brings in person with technology automated virtual.
The first one is solutions.
Right.
Sure.
You also said that they would like to bring care more close to the home.
And Amazon is known for many things, but they are especially in loans for the logistics.
And their obsession.
The consumer experience, which finally user arriving into healthcare Eric you've been on many calls with US you know that we are equally religious about that a lot of effort was put in converge to truly create a phenomenal provider and consumer and really any other type of user.
But perhaps most importantly.
We see this movement by Amazon is the very strong accelerate too.
Many of our customers, who can use our platform in order to survive and flourish in the marketplace that is becoming incredibly more sophisticated.
More competitive today.
Iran is an enabler of our role as an integrator does not hurt anyone but you could be very very helpful.
When they look at their plans to really.
Create an edge for themselves.
To into the future.
That's interesting and just relative to Oracle and Cerner is there anything any change to the cerner relationship or any way you're role now is in conflict with like Oracle.
Oracle and SAP Center I spent time with Oracle.
I really don't think so apart from many wonderful relationships really across all levels of both Oracle and Cerner that we maintain our recent conversations with both organization been very very positive.
And really indicate that we are likely to continue and see them as a very good partner.
For many years to come.
Thank you.
Your next question comes from the line of David Larsen Your line is open.
Hello.
This is this is aaron on for Dave.
I just had a quick housekeeping question and then.
More general question first one is just with regard to AMG is it in <unk> I saw the revenue, but I didnt see the visit volume and then I just wanted to know how the acquisition of silver cloud and converse.
Are doing relative to your expectations I know you didn't break them out, but just curious how they are trending and how do you see that going forward.
On the on the AMG visit side.
Don't think this is something that we have typically.
Broken out quarter to quarter specifically.
I would say it was.
Down a bit seasonally as we talked about kind of in line with revenues.
It wasn't much of a change in revenue per visit.
Over quarter, So you could get to the number pretty easily by just looking at.
The change in revenue would be around the same levels.
I hope that's helpful.
Yes, yes.
And as far as the thank you for the question about the Converse then silver cloud I would say that those acquisitions.
Acquisitions were almost existential they were critical.
<unk> I keep talking about the hybrid.
Physical virtual but we really did a very good technology and capability around the automation.
These strategic positions are more than delivery. So they have been great as a standalone offering there even much more powerful.
There are integrated the umbra.
<unk>.
<unk> changed the paradigm in many ways you can think about automation. It allows the patients to experience healthcare is the companion is always on.
So I think that you can be in touch.
From participants at the fraction of the cost.
And has many many.
ROI benefits some of which.
I shared in my prepared remarks are there are available on our website and even with various third parties.
So regardless of the exact impact on a revenue of specific program. These.
These capabilities, which are now part of downward platform really allow us to complete everything we had to have in order to.
And the 2022 with a very competitive offering.
Across our entire our entire market.
Don't see any either.
A similar need that we're missing.
Four.
MMA.
Years to come so thats pretty much covered.
What we had to acquire but depends very much is clear.
Okay.
Joseph.
I think you projected last year that you're going to have about $30 million in revenue for that acquisition I guess how is it trending.
Relative.
To that benchmark for our silver clients of ours.
The 30, we talked about in the context of.
Really giving some guidance around where those businesses would be on a standalone basis and in the context of an earn out that would run over the course of the year.
We talked.
<unk> talked about opted to accelerate.
The.
The earn outs.
And speed the integration of those assets.
We saw the value of that that could bring us.
In marketing and integrated offerings.
And.
And so with that.
We're not really looking at these as Standalone businesses at this point, we're marketing them in packages.
Hum.
Converse.
Is offered to.
Customers.
On the health plan side as well.
You can buy 1234 different.
Conversely <unk>.
Packages along with the.
And amounts of visits and that will determine up and down kind of where you are where you are on your subscription. So so it's really.
We're not really thinking about the Standalone line items from a revenue perspective anymore.
Can you really just can't break them out in a package sale context.
No.
I would tell you the businesses are performing as expected.
But more importantly.
The strategic value that they bring us that they have brought us.
Is it better than we could have hoped.
Yeah.
Okay. Thank you very much.
Your next question comes from the line of Stan Bernstein. Your line is open.
Hi, Thanks for taking my questions and I apologize I hopped on late so if you addressed this im sorry, but.
We've just been hearing just more and more new so R&D has been a particularly sensitive area in terms of wage inflation pressures and just as we think about your easing off the gas on R&D spend going into the back half of the year.
Should we be thinking about any offset.
The incremental wage inflation pressure that youre seeing.
Any color there would be helpful.
Okay.
Look I would say that.
We're seeing pressures on the cost side no different than anybody else. We've we've really tried to optimize from from a staffing perspective.
Bye bye using given the nature of the development of <unk>.
Converge, we have used a lot of outside contractors.
Because as we.
As we complete the development of converge.
And those discrete projects roll off we're not we haven't ramped up head count and then have to ramp ramp that down. So we've done a lot of contracting externally to get to where we need to be.
We.
There has been some pressure from that perspective.
Look as we as we are in the market from an FTE perspective, as well we see.
See the wage pressure.
That being said it hasnt put us in a position where I feel like we should be guiding you any differently.
From an R&D line item perspective.
Going into the second half here.
<unk>.
<unk>.
Done a good job in dealing.
On a net basis with our with Ftes and again really leveraging up on the.
On the contractor side so.
It's there.
We see it but not to the degree that we would guide any differently.
That's helpful. Thanks, so much.
Your final question comes from the line of Jessica Task. Your line is open.
Hi, Thanks, so much for taking the questions.
Just first off was hoping you could help us understand what the mix of AMG behavioral versus.
Primary care docs on the platform is roughly.
And do you guys feel like you have sufficient capacity within the AMG network.
At this point to service the virtual primary care contracts, you've signed and also just seasonal demand.
Heading into the back half late first quarter.
Yes.
Yes, Jeff.
And thanks for the question.
We have SLA is across our business.
<unk>.
Really need to staff.
AMG appropriately for those SLA as we're meeting our SLA targets across the board.
So I feel like we definitely are well positioned.
Two.
Just just just from a capacity perspective theres areas on the behavioral side that are probably a bit tighter.
He is in the country that are a bit tighter than others.
But.
I still even with that one.
We are performing well under our SLS.
The virtual primary care is really an interesting question.
A lot of a virtual primary care that will be enabling us.
It will be.
AMG related but what we're also doing I think rather uniquely it's allowing.
Provider are allowing our customers to use their own providers in.
And addressing the virtual primary care needs.
And so while that may necessitate us ramping up some.
What I think it really will be doing is allowing our customers to utilize their assets a lot more efficiently.
As they as they.
They rollout virtual primary care across there.
Their footprint so.
The mix I don't really have.
A number at my fingertips in terms of number of providers.
As it as it relates to.
To the various categories I would tell you the lion's share.
More than the lion's share is.
As urgent care related.
We certainly have bumped up but but we have.
Adequate capacity across the other specialties again to meet to meet the SLA is that we've got.
Okay.
That's helpful and I think a really helpful distinction on just the primary care docs, Alright primary care being reliant on.
On customer doctors as opposed to your own.
And my last question is.
As you guys are rolling out converge.
With payers should we be looking for for example, like with the live health online JV should we be looking for like a new platform, our new consumer facing app.
To support to support that that law.
Are those several launches.
Thanks.
Hi, Jessica that's a great question, so a year ago.
Our brand was very important to us and we had different apps and then when we partner with the like of anthem at the time, we created a diverse a line as the brand.
Where all this is going is that our brand really much at some point the.
As a trusted brand and health care providers and their partners.
We are offering technology and services to make them what they do best even even better converge is replacing the technology used to be an SDK embedded in dedicated apps in a technology called regions basically allows our customers to build there.
Home, all branded environment to use digital asset that they already own and still benefit from all the logistics and capabilities of matchmaking services and information that we provide for them without losing an inch on the integrity of their user facing.
In general everything we do is web responsive so whether it's an app or website, whether it's a computer or tablet. It all works exactly on the same way it has.
The states that our customers want.
To have so great.
<unk> fully took one step backwards, if you will allowing our customers to take their natural place to the forefront.
And in many ways. That's a very welcome change if you think about your own family would you rather get care from Cleveland clinic oriented mountain or Anvil.
Of course, we love them, well, but we think that your level of trust with that.
Cadet make medical center or your trusted the network new community is rightfully a much stronger and much more robust and our role is really to empower and enable them and that is translated into the architecture and the experience that you can see or in many cases not see on converge.
Okay.
Got it. Thank you that's helpful.
Yeah.
There are no further questions at this time I'll now turn the call back over to you for closing remarks.
I think.
Maybe I got dropped.
Hold on I'm sorry.
Alright, guys.
Okay.
We are ready for any closing remarks he has.
Okay.
Well, thank you everyone for joining us today.
As you can see this is a very exciting quarter and it's super exciting year, we can't wait to Europe . Our sales were converge into 2023, who is bound to be a very interesting.
Pending year here for us. So thank you again for joining us and look forward to talking with you very soon.
Yeah.
This concludes today's conference call you may now disconnect.
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