Q2 2023 CareCloud Inc Earnings Call
Yeah.
Yeah.
Welcome to the Carecloud ink second quarter, 20th twenty-three results conference call.
This time, all participants are in a listen only mode.
Later, we will conduct a question and answer session.
I will now turn the call over to your host Kim Blanche.
Sir Cloud General Counsel MS Lynch you may begin.
Good morning, everyone welcome to the Carecloud second quarter 2023 conference call.
On today's call, our <unk>, our founder and executive Chairman Hyde.
<unk>, our Chief Executive Officer, President and a director.
And Larry Steinborn, our Chief Financial Officer.
In addition, Elkhorn, our chief strategy officer will be available for the Q&A portion of the call.
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, a of the Securities Act of 1933 as amended.
Infections 21 of the Securities Exchange Act of 1934 as amended.
All statements other than statements of historical fact made during this conference call are forward looking statements.
Including without limitation.
Regarding our expectations and guidance for future financial and operational performance.
<unk>.
Business outlook and potential organic wrote an acquisition.
Forward looking statements may sometimes be identified with words, such as well.
<unk>.
<unk> plan anticipate.
Coming beliefs estimate or similar terminology and the negatives of Easter.
Forward looking statements are not promises or guarantees of future performance and are subject to a variety of risks 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 to the date 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 and report filed with the Securities and Exchange Commission.
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 second quarter, 20th twenty-three earnings presentation.
Please visit our Investor Relations site I R Dot Carecloud dot com.
Click on the news and events.
Click I our calendar click on second quarter 2023 results conference calls and download the earnings presentation.
Finally on today's call.
They refer to certain non-GAAP financial measures.
Refer to today's press release announcing our second quarter 2023 result for reconciliation of these non-GAAP performance measures weren't GAAP financial results.
And with that said I'll now turn the call over to our CEO , how do you <unk> <unk>.
Thank you Kim.
And thanks to all of you for joining over second quarter of 2023 earnings call.
For a jump in I would like to take a minute to introduce.
<unk> rejoined us in July is of a new Chief financial Officer.
He brings with him extensive experience that he has spent time as a fearful in February different areas of the healthcare space.
Looking forward to working with him as bill transitions into his noodle Chief strategy officer, He will be working closely with Larry to get them quickly up to the speed.
You have several meaningful developments that can contribute to a very long term success to discuss today, but first I will start by providing a quick overview off of the clock of your results.
The second quarter revenue came in at $29.4 million and adjusted EBITDA came in at $3.8 million.
This compares to revenues of $37.2 million and adjusted EBITDA of $7 million in second quarter last year.
Just step back and looking at the quarter as a whole.
They were a few main areas that contributed to these numbers coming in lower than the prior to <unk>.
Which includes softness in <unk> professional services are slower conversion Graham for wellness revenue and the loss of revenue from two large customers due to health system mergers.
Previously announced.
We'll go into further details on these developments and provide insight to the <unk>.
<unk>.
Despite these short term challenges our core take the neighbors are seem offering is performing bell and meeting the evolving needs a phone for providers.
We believe that we have taken the necessary actions to address the near term issues, we are facing and over the long term focus on several emerging avenues of girls that include.
<unk> of AI offering followed by a good relationship with Google.
Wellness solution, which is gaining more attention in the market and what could be a meaningful opportunity in the middle East.
Turning now to the launch of a new gender give me I product.
I want to provide more detail on a recently announced partnership with Google cloud with a goal of making it easier for doctors and clinicians to access essential information we.
We are actively working on integrating Google cloud advanced generative AI and enterprise search technology and took care of cloud solutions.
<unk> launched Oh, but yeah, I'm water will assist the physicians the data informed.
Personalised treatment decisions.
One of the major advantages of this collaboration.
Nearly 20 years of fear cloud should be identified clinical data and financial information, which will be used in a HIPAA compliant fashion to train Google's generative AI moslems within cloud solutions.
It's valuable data includes insights from small and medium sized medical practices. There Kevin previously been used for January to me I.
Current healthcare Yea models had been trained primarily with health system data our partnership allows us to fill an important gap in the industry and create more comprehensive a I generated information.
Target market.
But first get cloud solution using generative AI will focus on clinical applications and is set to launch in the coming months.
We'll start by training, Google generative AI models with over clinical data.
This will enable other solutions to use a patient's current and past clinical data to create a personalized care plans for that specific patient, enabling the physician to make more informed decisions for that patient.
These plans will be tailored to each patient's medical history, and current symptoms, including medication recommendations lab borders diagnosis and procedures.
Eventually the offering will also enable the system to give patients personalised estimates after insurance coverage and out of pocket expenses, helping them make informed decisions about their health care.
We plan to charge a reasonable license fee for this smart assistant edition and are exploring different licensing models are user fees similar to Microsoft recent launch of cool fighter.
The overarching goal of this partnership with Google Cloud based will transform health care delivery to gender technology for the broader market beyond just care clouds ecosystem.
I now want to provide you an update on our U a E opportunity.
As we discussed last quarter, we are continuing to explore opportunities for expansion in the middle East.
Previously mentioned that if you live close to completing the establishment of an entity in the U a E to capitalize on the opportunities in this market.
I am pleased to report that we have successfully established a branch office in Dubai and receive a license to conduct business M U a.
And May we attended the precision Med conference at Dubai World Trade Center, and then the amino Hospital project conference in June to start building relationships with other partners.
You know in the process of recruiting the best local talent for a business development team with a primary goal of developing new business relationships within the Gulf Cooperation Council, which is comprised of six countries K cloud is uniquely a line to take advantage of the opportunities in this market.
I also wanted to highlight that on the marketing front B recently revamped our entire cockpit website.
The updated the site. So not only include all of our brains solutions and services, but also optimize it by and market in category to make it easier for our customers and partners to navigate.
I believe this will make for a more enhanced user experience.
Next I would like to provide an update on the progress we have made on bookings good in Oregon, and new customers go lives.
But it would take a neighborhood or C. M. We have gone live with 95% off the potential revenue you book last year.
Care to 88% last quarter on an annualized run right. We have recognised 94% of those potential revenue from the lifelines.
Nevertheless solution, we have gone live with 93% of the potential revenue also in line with last quarter, while the percentage of annualized run rate revenue increased from seven per cent to 23 per cent.
Believe this is a <unk> equal opportunity for us, but the ramp is taking significantly longer that we initially anticipated.
Other than this offering represented a paradigm shift how people treat chronic illnesses getting them into a monthly virtual checkup routine in order to proactively manage their illness.
Lastly.
Force, which is over staffing augmentation solution, we have gone live with 96% of the potential revenue famous last quarter, but the percentage of annualized run rate revenue has increased from 4% to 65 per cent at the end of the second quarter. The increase was driven by one of the.
Contract should be noted last quarter going life, a new client starting to ramp.
Overall out of the tortured bickering bookings to be signed in 2022 95 per cent of the potential revenue has gone live with us in some form or fashion.
From 92% last quarter.
The second quarter on an annualized basis, we recognized 62 per cent of the potential revenue opportunity from those clients that have gone life compared to 44% last quarter.
Turning to 2023 bookings, we are experiencing further bookings growth with a meaningful increase in first half 2023 bookings compared to the first half of last year.
Notably we are signing that new business more efficiently as we have seen declining.
Declining over a customer acquisition cost.
In summary during the quarter.
Oh of course take a neighbor RCM businesses performing well, what we did experience some softness into of alert newer innovative business lines wellness <unk> professional services.
As we looked at the second half of the year, we face some continued headwinds and those businesses and have it gestured over 2023 guidance accordingly.
He believes that we are past the low point.
I believe that we have taken the right steps to stabilize those business lines in the second half.
Oh, I will turn the call over to Larry for a deeper look into over second quarter results and annual guidance.
Larry.
Thank you and Hello, everyone I P.
Create the kind words from those of you that have already reached out and I'm excited about getting started and the new C. <unk>.
Crowd strategies focused on being front runners in the market and it's exciting time to join the company and the very motivated and passionate team.
With that let me turn to the financials.
Revenue in the quarter was $29.4 million compared to $37.2 million in Q2 2022.
The year over year decline is primarily a result of the factors that hardly mentioned softness embed S. R. A slower conversion around for wellness revenue as well as the loss of revenue from two large customers due to health system murderers.
Regarding bad S. R. After the acquisition of large E. H R vendor stopped allowing their clients to contract with us for professional services because they view care cloud is a direct competitor and B E. H R space.
We saw the impact of this play out in the last quarter.
Right of this our team started to establish stronger meditech relationships and beverage more RCM caught selling opportunities.
The expectation was that through these relationships and with erratic sales the gap could be bridged to deliver growth as originally projected. However, this did not materialize.
We still believe this is the right approach to get us back on track.
Right.
Anticipate bed S. R's meditech related revenue in our C. M revenue will increase for the full year.
But it will not be enough to offset the decline in professional services this year.
The second area identified within wellness.
<unk> did not pan out as cheap as initial forecast predicted.
Now that wherever you ever experience and more data is available.
It is becoming clear that it will take longer to migrate into revenue.
Going forward, we are now able to use this real life data in our forecasting and are confident about this patient population opportunity, but the ramp will take longer.
Suggested EBITDA $3.8 million reflects a 13% margin for the quarter.
This compares to $70 million and 19% in Q2 2022.
The decline in quarterly EBITDA with a combination of lower revenue and related margins as we continue to invest in sales and marketing and R&D to drive future growth.
We ended the quarter with $7.7 million in cash and networking capital of $8.2 million.
Cash provided by operations was $6.4 million offset by cash used in investing in financing activities of $7.1 million.
In addition, we ended the second quarter the same as the first quarter with $10 million drawn on our 25 million dollar line of credit.
Now trying to guidance as mentioned earlier there are a few areas in which results differed from expectations.
<unk>, we expect the impact will be approximately 12 million dollar deviation from our projected plans on an annualized basis.
As I discussed earlier in more detail.
Four wellness, we anticipate it will be approximately $4 million short of our original forecast.
We now have real life data to help us project with contributions in a more conservative and accurate way.
And lastly, it was planned tobacco approximately $8 million in revenue from the previously mentioned customer health system mergers organically.
But this is not materializing at the expected rate.
Additionally, I'd like to provide an update on force our staffing augmentation service, which was discussed last quarter.
Large contract that we signed that late last year with the well known publicly traded health care Technology company was delayed and the preproduction phase.
Customer focusing on other priorities.
While this led to a slower than expected timeline. We are pleased to say that we went live on August 1st.
Speaking to account all these variables, we will be adjusting our annual guidance accordingly.
We now expect full year revenue of $120 million to $122 million and.
Justin EBITDA of $15 million to $17 million.
While the fundamentals of the business are solid we have undertaken a deep dive into expenses and capital spend.
Scale, the business accordingly, and improve profitability for the second half and then through 2024.
We still see plenty of opportunity for a solution is moving forward and we use our study core R. C M business as well as developing projects such as physical therapy.
A I solution.
The opportunity in the middle East and the wellness ramped cause a strong foundation from which to grow.
So that concludes my prepared remarks in closing I want to reiterate that like the entire team very motivated to be in this role.
And see the vision the company hasn't sites.
I'll now turn the call over to Mommy before his closing remarks my mood.
Thank you Larry.
<unk> earlier.
We feel there are solutions are well position in the market. We are executing on the plan to overcome our short term challenges and there are several opportunities that will benefit us over the long term.
I would like to thank our employees customers and shareholders for all they do to support the care cloud mission. Thank you operator.
Thank you ladies and gentlemen.
Question and answer session for analysts.
Have a question please press star one.
Touchtone phone.
If you would like to remove yourself from the queue. Please press star too.
To give everyone the opportunity to ask a question.
Limit yourself to two.
If you have more.
Q.
Q.
Our first question comes from Jeffrey Cohen.
Please go ahead.
Oh, Hey, good morning, her holiday, Larry and Bill how are Ya.
Good morning, Jeff gave me a very well. Thank you how are you.
That's fine so.
Larry went through a few of the the shortfalls in some of the college Rex I'll try and make some grad sort of burning up the the forest contract, but Larry I guess the question is any backwards themes that you're seeing over the past quarter as for as a physician or organization spin.
Ending patterns that you.
Can talk about.
Can you.
Elaborated further Jeff please.
Just for my back or standpoint are you seeing any creams or out there as far as your space with utilization orders that are out there in North America, the past quarter.
Not exactly but we do see from the <unk> perspective make any of those concerns.
Businesses.
In fact, but I think for us, it's not removing driven by the overall.
The end of the consultancy business impact it's for US it he says that large vendor driven.
Because you always you understand it on a couple of bankers, just three which covers among.
About 80% of the market share in that space said, the largest one thinks that they should not be working with us.
Significant impact, but other than that no we have not.
Okay, and anything to speak of as far as.
Jose Sugar recently or.
Any geographical strength or weakness to call out as far as.
Specific specialties or specific geographies that you can talk about.
Mmm not is now we have not seen any such as friends, but I think we we do see a lot of these discussions more towards the next the upcoming technologies I would say between the confusion of the people and waiting for the next <unk>.
<unk> to be used anymore, referring to these AI amazed upcoming technological tools and the the movement towards the value based Highlander two pieces are going to get together.
And.
From the preventative medicine, as well, but not anything specific that we have we have seen it east yet.
Okay, Great and lastly for us any commentary on the the regenerative partnership with Google cloud as far as.
Roll out and talk about which specific offerings of yours that it's being embedded in and how as you would expect that to play out over the coming months or quarters.
Mmm.
Sure. Thanks, Thanks, Jeff and if he does zummo just to give you a first of all of the the perspective Willpower. This partnership has has come together so.
This was I was able to meet earlier this year in a meeting with the CEO of the Google Cloud.
I was at the thought wall and then if you think about care cloud previously known as Mtb's. Even started in 1999, our focus was or how we started was how to focus the small to medium practices, primarily and bring innovation and technology and can learn thing them from the conventional medical billing conventional.
<unk> take the named Sam and providing them with the tools, such as EHR and and all of those.
Fast forward for these last 20 years now we have the data the clinical and financial because of a proprietary software and the technology.
We started investing.
Let's say over from the last over five years by establishing to put on.
The data Science Department to see how we can what we can achieve.
On skilled people in the skill set it should never have been enough to.
To get to the level of technology.
Technology exists today, so when Google launched their product of ended the chat GBT lost their product on the AI on the gender D V I.
The one immune system step back from that perspective, and think about it and this talk about Google.
<unk> E I.
E I trained AI model and the engine and then they started focusing on the health sector and they're calling it the Meg module, which is a I train motor for the health care industry, but when we talk about it that model is trained only on the health system side space the larger practices.
It goes for the smaller ones visitors, Google or to someone else. They have one it's a very highly regulated industry. So in order to have an hour three to reach out to so many of thousands and thousands of those small practices and came to your data and been trained they're AI model is just not simply not possible. So this partnership is basically.
Google coming busier technological dare people their expertise and technology under gender DVI via coming in with over the last 20 years of data and other people in the experts and together we are trying to produce a product so that that's a bigger picture.
What we are trying to accomplish for us in the short term as I mentioned as part of the script.
<unk>, we will be providing a sort of an smart assistant EHR into the practice management product, which will work at the if he used the analogy of the Microsoft recent launch of vehicle by their.
First of all the co pilot is a pilot is not to bite it they won't be flying the plane, but it'll be assisting some other product is also going to assist and suggest the doctor, leaving the responsibility mid the doctor the decision maker would still be with the doctor and making sure HIPAA compliant in the regulatory.
<unk> maintained patient safety in mind, so that assist and you'll be able to because we have deer that specific patients and the industries from the geographic same specialty gender insurance makes so we will be able to suggest a treatment plan iPhone comprehensive care plan with the help of that Jim.
<unk> to the Doctor, which can help in.
In the rare disease cases, which can help interventive medicine.
Could it be certain tests that should be conducted in data points, which are the way. The doctor may have skipped or made that may or may not have thought about at that time. So on one side a phone from 1% of the revenue generation perspective.
One license or when you use that you'll be charging or from the license fee perspective, and then in the bigger picture they will get into the overall profitability and enjoy the patient outcomes for that practice. So this is going to be the one the revenue generation line for us.
This is all the revenue will be generated.
The bigger picture is once this proof of concept gets done mommy gets dreamed, Florida small to medium sized practices data.
Household the Google It will be time to this and we will communicate with anything gets finalized with Google.
Plan to go Bacon, how we can provide this with the help of working with Google access to this trained AI Marvel to other vendors in this space. So there will be another in the future that at least have a goal is what we are opportunistic about this.
We think is is about to go but any I hope I answered. The question in terms of the revenue for us this year.
This we are going through and making sure just because of dealing with the patient health information that it's it should provide a reasonable accurate projections. Since we are in the process of refining the results.
Of the third quarter of the fourth quarter.
Quarterly plan to launch this product, let's see how the what is the attention and attraction we get from over the existing client base for us and everyone is going to adaptability and understanding of gender in the eye and then if we believe this is going to help us in the bigger picture and to think that the 2024.
Okay perfect. Thanks for taking our questions.
Thank you thank you Sir.
Thank you.
Next question comes from.
Please go ahead.
Hi. Thank you. This is anderson on for Neil you called out the weaknesses and wellness and professional services in queue to how do you see those recovering going forward in the second half and then 2024.
I can talk about on the business perspective, a leg if you want to add any any other color to it.
Let's start with the professional services for us So for professional services. If you think about it and just do that.
The largest vendor that I've been talking about and just to put things in perspective, if you talk about activation services. One activation project for the largest health system could could potentially have oh, let's say a million dollars at an average of project or in in revenue.
The other alternatives that we're working on which is maybe take as an example average activation could only be like 200000 dollar project. So for us to bridge that gap, it's taking this time to get there.
The second major line of business from here, we anticipate we should be able to recover it should be able to do a good job with just professional services is leveraging those relationships into health system space with celebrate RCM services as you may recall last year when the presented the numbers for for professional services.
We were able to increase the revenue of RCN by roughly 300% compared to prior to acquisition. So both of these two a V. C may not be the similar to 100 per cent.
I did a decent increase on the <unk>.
Here too the last year as well so that RCN business line under Medicide is growing I would meditate business line is is also growing and it's opening even further door for us into a more partnered possible relationship under RCM with maybe taken also over the middle East opportunity. So we've.
Believe between the two little keep on drawing our goals would be and again, we will share the numbers at the end of the end of this year. When we close the ear I will go all would be the disease with these two possible lines and the opportunities that exist for us and <unk>, we should be able to get back to where we should be by the end.
Next year again, <unk> b as in to see how the things plays out until the end of this year, but we do see a lot of these opportunities and the bad for us to get back to where we should be.
Great. Thank you and then on your Middle East expansion Congrats on the U a E trade license when do you anticipate recognizing revenues there.
Okay, and I answered and then just to mention the Dwight fluids are heading over it made us are as well as the you in the Middle East Division. He also joined US for the Q&A infection and card from the force a division the head of the force. He also had joined US on it and getting the Q&A session. So let me answer.
<unk> to give you a little more color V. As <unk>, an independent phase, we're going through the process of finding the right boots on the ground resources.
You can go in and help us sell into that space and there are a number of other activities that we are rejecting Ah alert other internal goal is to at least have been able to sign a few deal before the end of this this year, we should have a revenue recognition for us into the next year, because there's no matter.
What you do by the time, we we signed the deal get the resources of line project initiated the revenue recognition will take it three six months from the from the point of signing the deal. So this is a bigger picture would you like to get into a slightly more colors, a telomere annoying on the middle east side for for <unk>.
The other people listening.
Sure absolutely good morning, and thank you for taking some time so yeah I'm in <unk>, we're excited about the opportunity there and not only <unk>, but also the G. C. C. So we're saying those sick Gulf countries really bringing together quite a few and exciting opportunities for us.
Like how he said earlier attended a few conferences this year and so did Carl we're seeing a lot of excitement and what we're bringing to the table boat from a professional services and a solution.
Point of view Uhm looking this quarter really where hiring our business development team I've been getting them up and running and then with our goal really as we move so Q3 and Q4 abusing the Arab Health Summit, which is in January of 2024 is really our time that we can come forward and show all of our solutions a huge conference.
Almost 65000 attendees, so that really becomes where we're forwarding towards as we move so Q3, Q for and building that those that excitement and those opportunities to come.
Great. Thank you so much for taking my questions.
Thank you.
Thank you. The next question comes from Derek Greenberg.
Please go ahead.
Hi, Good morning, I wanted to touch on wellness, a little bit more and possibly just some things that you're learning is that process continues to go on and some actions you may be taking to improve on boarding for the product.
Okay. Thank you.
Thanks for for your question.
I think I've I've just hated in a it was the fall of England other than forever clients or the doctors or the providers and for US from the Doctor is also trying to to adapt to this new preventive care, except and adopted a preventative care technologies are the the options and opportunities and.
They also for the patients it's a paradigm shift from every time and you feel safe going to the Doctor's office and seeing them in person from Dag shifts to the telehealth appointment is now this is another.
Nine ship there you're not sick you are not feeling sick, but they are still certain things in the case of the call and the conditions that can proactively be managed.
Dec paradigm shift is taking this time to convince the patient that this is this is something good for you in the in the long term those at.
One time in a month 20 minutes 45 minutes and in case of the diabetes or blood pressure, taking those meetings every day, how that's going to change your overall health in the long term.
Yes, we are continuing to adapt other boo ways. As an example, what are the right time to call. The patients if the patient and is is more available during the lunch hour is worse in the evening hours, how can we leverage over automated text messages, how we can keep sending them at <unk>.
<unk> to remind them from the call before they have to get on the call because there are linkages and all of these places number one convincing the patient number second they may not be available for the call even though the call was scheduled so all of these pieces. We do have the technology that we have developed over the last 20 years. So.
<unk>, it's just a matter of keep plugging in those technologies at the right time, and the right places and and making sure how we can ramp up but improve the patient adaptability long-tongued along picture of the bigger picture.
This industry is also going to drive back paradigm shift or data debility, because as more and more insurances have started to cover their deductible will be impacted the doctor will have more incentive.
To get somebody will be a better push email coming from the Doctor and then they're trying to convince the patient so far this year for the last one year based on the data we had to readjust. This this guidance we are trying to be more conservative now and then try to actually surpass those expectations as we keep on improving.
The help of the different technology. So I think that if you want to talk about and we can plan to by the end of this year dial into little more details in terms of the V is K P. I as in this space, but at the moment I think we are not ready to dive into those specifics, but there's an overall and high level.
I would say the picture unnecessary if you would like to give any of the color on the number of specific I think that I think I'd really just covers it from the overall business strategy and then there were thinking about moving into really 2024 catalyst and not a significant revenue driver for pretty sure Redfin and there is a good thing for us is the business.
This is <unk> and we have already acknowledgement for the Doctor. So we have a good number to focus on and we continue to see the attraction from even over existing client base. In addition to the new logos and now whenever you're selling a <unk> solution sometime this becomes a poke for us if the site.
For calling cared Andrew more efficient monitoring it comes comes up for us as an entire and Duane deal instead of suggested a more efficient monitoring and chronic care management and let's see we do not have and have any insight from the C. M. As in terms of the next ears reimbursement rates, but the hold.
<unk> is just a hopeless based on all the the moving parts of the industry.
Could potentially be some improvement or stomach to give more attraction to the chronic care management because in the bigger picture of this is going to improve the expense expenditures off the government at large.
Okay, great. Thanks for that color and then my other questions that just <unk>.
What the bookings in the quarter, where and how that compared to last year and then maybe if you could just touch on the therapy offering trial, how that is progressing.
Sure. He can I missed the last part please.
My apologies the question was bookings in the corner and then the second part was just the therapy offering trial you guys are working on how that is checking.
We booked for the second quarter of 2022, so the two quarters together first and the second of last year, because this quarter last long the reason we kept sharing.
By quarter booking number just to make sure that how we're ramping up over where sales engine in the marketing Indian and this year, we plan not the gift.
Waterloo booking numbers, but just to give you a color we have done better compared to the last of the first half of last year, but the mix is little different V C Moore attraction and attention towards the the chronic care management and the remote patient monitoring so that makes it <unk> last year.
Able to score the axiom and disaster I'm available things.
And in the case of chronic care or no motivation, it's looks like with the whole Ram gradually ramped it's going to be some little would any ear.
Okay and now to the second part of your question a day for the therapy.
Of what we have some early adapters as I mentioned last year last one the last quarter. We are continuing to work with those early adapters and keep on improve it product to make sure any of the concerns or abdomen.
Dressed and says the product keeps on getting optimize as you know we have ever largest <unk>. Among other top client server therapy practice, we are closely working with them as well, but as you know the other large players who have been into therapy business for the last four decades as an example.
<unk> rain tree or web P. T. In some of these others and most of the time. These contracts are a number of years contract. So even if someone likes the product today, they're going to have to wait for a trial would be an ear to unless there whenever the next vanilla is to you and it is a huge transition plan that we have.
To work too so he doesn't get any attraction and we have a we have a pipeline to work on and we will keep everyone up to date than we are able to sign the business there for the new logos via extensively actively working on a date with a marketing campaigns. So we hope to get some results over the next two quarters.
From this therapy in terms of the new Bill goes.
<unk> is very we we we received Ah many good reviews and the feedback signal from the very large <unk> multi clinician practices compared to what exists today in the industry. It is multiple is a significant step forward in terms of technological advancements <unk>. If I use this analogy if you think about.
As an example, an ethics system, it's been in the industry, that's let's say from sixties or seventies.
It's the easiest decision for the hospital debate to choose epic if they can afford it worse is and everyone believe there are other products that exists in the market, which is far more superior and technologically advanced but it takes some time to take the decision that if any of the product is is just a valuable for them and desperate.
Kind of Weird, we are fighting and struggling right now we are making good progress. We are still excited about it and we hope that should that'd be believing confident dental add value for us into <unk>.
Okay, great. Thanks for answering my question.
Thank you.
Thank you.
There are no further questions I will turn the call back.
Remarks.
On behalf of the company I'd like to thank everyone, who has joined US on today's call. We appreciate your participation and you're interested in after the company and we look forward to speaking with you again next corner.
Thank you, everyone and have a great day.
Thank you.
Ladies and gentlemen.
Conference call for today, we thank you for your participation.
Connect your lines.
[music].