Q3 2023 MultiPlan Corp Earnings Call
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Speaker 1: Thank you for your patience. The Multi-Plan Corporation third quarter 2033 earnings conference call will begin shortly. During the presentation you will have the opportunity to ask a question by pressing star 1 on your telephone keypad.
Thank you for your patience the multi panel Corporation third quarter 2000, <unk> earnings conference call will begin shortly during the presentations you will have the opportunity to ask a question by pressing star one on your telephone keypad.
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Speaker 2: The.
Speaker 3: Thank you.
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Welcome to the multi bancorporation third quarter 2023 earnings Conference call. My name is Harry and I'll be your operator today.
Speaker 1: Welcome to the Multi-Plan Corporation third quarter 2023 earnings conference call. My name is Harry and I'll be your operator today. If you'd like to ask a question during the presentation, you may do so by pressing star 1 on your telephone keypad. I'd now like to turn the conference over to Shauna Gasek, AVP of investor relations. Thank you. Please go ahead.
I'd like to ask a question during the presentation you may do some pressing star one on your telephone keypad I'd now like to turn the conference over to Shawn AVP of Investor Relations. Thank you. Please go ahead.
Speaker 4: Thank you, Harry. Good morning, and welcome to MultiPlan's third quarter 2023 earnings call. Joining me today is Dale White, Chief Executive Officer, and Jim Head, Chief Financial Officer.
Thank you Harry good morning, and welcome to multiple third quarter 2023 earnings call. Joining me today is bill White, Chief Executive Officer, and Jim Harris, Chief Financial Officer, the call is being webcast and can be accessed through the Investor Relations section of our website at www Dot multi plan dotcom.
Speaker 4: The call is being webcast and can be accessed through the investor relations section of our website at www.multipan.com.
Speaker 4: During our call, we will refer to the supplemental slide deck that is available on the investor relations portion of our website, along with the third quarter 2023 earnings press release issued earlier this morning.
During our call we will refer to the supplemental slide deck that is available on the Investor relations portion of our website along with the third quarter 2023 earnings press release issued earlier this morning.
Speaker 4: Before we begin, a couple reminders. Our remarks and responses to questions today may include forward-looking statements. These forward-looking statements represent management's beliefs and expectations only as of the date of this call. Actual results may differ materially from those forward-looking statements due to a number of risks. A summary of these risks can be found on the second page of the supplemental slide deck and a more complete description on our annual report on Form 10-K and other documents we filed with the FCC.
Before we begin a couple of reminders, our remarks and responses to questions. Today may include forward looking statements. These forward looking statements represent managements beliefs and expectations only as of the date of this call actual results may differ materially from those forward looking statements due to a number of risks.
Summary of these risks can be found on the second page of the supplemental slide deck and a more complete description on our annual report on Form 10-K, and other documents, we file with the SEC.
Speaker 4: We will also be referring to several non-GAAP measures, which we believe provide investors with a more complete understanding of multi-plan underlining operating results. An explanation of these non-GAAP measures and reconciliation to their comparable GAAP measure can be found in the earnings press release and in the supplemental slide deck. With that, I would now like to turn the call over to our Chief Executive Officer Dale White. Dale?
We will also be referring to several non-GAAP measures, which we believe provide investors with a more complete understanding multi plan underlying operating results and explanation of these non-GAAP measures and reconciliations to their comparable GAAP measure can be found in the earnings press release and in the supplemental slide deck with that I would now.
To turn the call over to our Chief Executive Officer, Dale way deal.
Speaker 5: Thank you, Shawna. Good morning, everyone, and welcome to the call.
Thank you Shannon and good morning, everyone and welcome to the call.
Speaker 5: Well, what a difference a year makes. This time last year, I had the unfortunate job of informing you that our results had fallen short of our expectations....invisibility picked by your body's braking strength — By considering that earlier today's results are
Well, what a difference a year makes this time last year I had the unfortunate job of informing you that our results have fallen short of our expectations and visibility had become more challenging.
Speaker 5: In the four quarters since then, we wasted no time pivoting the company. We stabilized our revenue base and reset financial expectations.
And the four quarters. Since then we've we wasted no time pivoting the company, we stabilized our revenue base and reset financial expectations formalized a new strategy to transform our business and initiated a growth plan to execute on that transformation.
Speaker 5: formalized a new strategy to transform our business, and initiated a growth plan to execute on that transformation.
Speaker 5: As I sit here today, I'm happy to report that we are both tracking to our full year, 2023 expectations and making excellent progress executing on our growth.
As I sit here today I am happy to report that we are both tracking to our full year 2023 expectations and making excellent progress executing on our growth plan.
Speaker 5: We delivered third quarter results that were in line with our guidance and that met our expectation to resume growth in the back half of 2023.
We delivered third quarter results that were in line with our guidance and met our expectation to resume growth in the back half of 2023.
Speaker 5: And during the quarter, we achieved several milestones in our growth plan with a number of new product initiatives rolling out on or ahead of schedule.
During the quarter, we achieved several milestones in our growth plan with a number of new product initiatives rolling out on or ahead of schedule.
Speaker 5: with our business now stable, our disability increasing, and our pipeline of new business growing. We are even more confident that we are well positioned to deliver accelerated growth in 2024 and beyond.
With our business now stable or disability, increasing and our pipeline of new business growing.
We're even more confident that we are well positioned to deliver accelerated growth in 2024 and beyond.
Starting with our third quarter results as shown on page four of the supplemental deck revenues were $242 $8 million and while that was three 1% lower than the prior year quarter. It was up about $5 million or 2% sequentially.
Speaker 5: Starting with our third quarter results as shown on page four of the supplemental deck, revenues were $242.8 million. And while that was 3.1% lower than the prior year quarter, it was up about $5 million or 2% sequentially.
Speaker 5: revenues came in at the midpoint of our third quarter guidance.
Revenues came in at the midpoint of our third quarter guidance range driven by increases in our identified potential savings.
Speaker 5: Driven by increases in our identified potential savings.
Speaker 5: Adjusted Ibeda was $152.3 million down about 12% from the prior year, but in line with the second quarter of 2023.
Adjusted EBITDA was $152 $3 million down about 12% from the prior year, but in line with the second quarter of 2023.
Speaker 5: Adjusted EBITDA was also in line with our third quarter guidance, albeit closer to the lower end of the range, reflecting the impact of accelerated investments this quarter in integrating benefits, science technologies, or BST, and launching our new data and decision science services line.
Adjusted EBITDA was also in line with our third quarter guidance I'll buy closer to the lower end of the range, reflecting the impact of accelerated investments this quarter and integrating benefits science technologies or DST and launching our new data in decision Science services line.
Our adjusted EBITDA margin was 62, 7%.
Speaker 5: Our adjusted dividend margin was 62.7%.
Speaker 5: down from 64.2% the prior quarter, again, reflecting cost exceeding revenues for BSP.
Down from 64, 2% the prior quarter again, reflecting cost exceeding revenues for DST.
Speaker 5: Adjusted dividend margin declined from 68.7 the prior year due to the impact of our contract resets, As well as investments in the business that we expect to generate new revenue starting in 2024.
Adjusted EBITDA margin declined from $68 seven the prior year due to the impact of our contract resets as well as investments in the business that we expect to generate new revenues starting in 2024.
Speaker 5: That's a good segue to an update on our growth plan progress.
That's a good segue to an update on our growth plan progress.
Speaker 5: As I mentioned during the third quarter, we delivered several new products to the market on or ahead of schedule.
As I mentioned during the third quarter, we delivered several new products to the market on or ahead of schedule.
Speaker 5: In fact, we have now delivered on initiatives spanning across each of our four growth plan objectives, which are detailed on page nine of the supplemental deck.
In fact, we have now delivered on initiatives spanning across each of our four growth plan objectives, which are detailed on page nine of the supplemental deck.
Speaker 5: We also have a deep pipeline of new products. And the roadmap for our 2024 product initiatives is already coming into focus, which will help us drive our growth in 2025 and beyond.
We also have a deep pipeline of new products and the roadmap for our 2024 product initiatives is already coming into focus which will help us drive our growth in 2025 and beyond.
Speaker 5: As we noted at our investor day, this excessive layering of new products into our revenue base is integral to our plan of generating 200 to $275 million of incremental annual revenue with our growth plan over the next several years.
As we noted at our Investor day. This successive layering of new products into our revenue base is integral to our plan of generating $200 million to $275 million of incremental annual revenue with our growth plan over the next several years.
Speaker 5: Let me expand on the progress we are making. Starting with the initiatives to enhance our course services, which are described in the first three rows of the table on page 9.
Let me expand on the progress, we're making starting with the initiatives to enhance our core services, which are described in the first three rows of the table on page nine.
Speaker 5: In the third quarter, we launched our smart scoring solution called ProPricer ahead of schedule.
In the third quarter, we launched our smart scoring solution called pro Pricer ahead of schedule.
Pro Kreiser Leverages, the combination of machine learning technology, and the unrivaled breadth of our repricing solutions to intelligently and dynamically route claims to arrive at the optimal pricing recommendations, giving our customers unique business objectives.
Speaker 5: Pro-Crycer leverages the combination of machine learning technology and the unrivaled breadth of our repricing solutions to intelligently and dynamically route claims to arrive at the optimal pricing recommendations, giving the customers unique business objectives.
Speaker 5: We completed the first release of this product during the third quarter and onboarded a larger customer on October 1st, which we expect to translate to approximately $6 million of the annualized revenue. And that is just the beginning. For 2024, we're planning additional releases of pro price or to increase its functionality and flexibility, including giving customers the option to attach our balance bill protection service.
We completed the first release of this product during the third quarter and on boarded a larger customer on October one.
Which we expect to translate to approximately $6 million of annualized revenue and that is just the beginning for 2024, we're planning additional releases of probe price here to increase its functionality and flexibility, including giving customers the option to attach our balance still protection service.
Speaker 5: Speaking of downspill protection, as we noted on our last earnings call, in the second quarter, we launched this new product for the value-driven health plan services offered on our HSP platform.
Speaking of balance Bill protection as we noted on our last earnings call in the second quarter. We launched this new product for the value driven health plan services offered on our <unk> platform.
Speaker 5: We onboarded 11,000 lives this year, and we expect that number to double by January 1, 2024.
We on boarded 11000 lives this year and we expect that number to double by January one 2020 for these.
Speaker 5: These lives alone translate to over $5 million of incremental annualized balance bill protection revenue for our HSP business.
These lives alone translate to over $5 million of incremental annualized balance built protection revenue for our HST business.
Speaker 5: For 2024, we're continuing to build out the HSD platform with our employer solution in a box strategy by adding pharmacy and care navigation service.
For 2024, we're continuing to build out the HST platform with our employer solution in a box strategy by adding pharmacy, and Karen navigation services and also by integrating aspects of our den insights technology into our HST platform and up selling these services to.
Speaker 5: And also by integrating aspects of our Ben Insights technology into our HSP platform and upselling these services to our existing base and new customers.
Our existing base and new customers.
Speaker 5: The Ben Insights technology, which came to us from our acquisition of BST, will add descriptive, predictive.
<unk> been insights technology, which came to us from our acquisition of DST will add descriptive predictive.
And prescriptive analytics to enhance employer benefit intelligence and reporting for our HFC customers.
Speaker 5: and prescriptive analytics to enhance employer benefit intelligence and reporting for our HST.
Next we have been focused on fortifying, our leadership and NSA related claims processing during.
Speaker 5: Next, we have been focused on fortifying our leadership in NSA-related claims process.
Speaker 5: During the third quarter, we launched the first version of our rules-based claims processing initiative and the beta version of our insights portal.
During the third quarter, we launched the first version of our rules based claims processing initiative and the beta version of our insights portal.
Speaker 5: Both of these initiatives are aimed at enabling more sophisticated and better informed compliance with the NSA regulations.
Both of these initiatives are aimed at enabling more sophisticated and better inform compliance with the NSA regulations for 2024, we will continue to advance both of these and we plan to build a service that helps payers comply with the state surprise Bill regulations.
Speaker 5: For 2024 we will continue to advance both of these and we plan to build a service that helps payers comply with the state surprise bill regulation.
Speaker 5: Additionally, we believe payers will demand increased assistance from us with the administration of their qualifying payment amounts or QPAs.
Additionally, we believe payers will demand increased assistance from us with the administration of their qualifying payment amounts or <unk>.
Let me expand on this <unk> topic.
As many of you are aware throughout 2023 courts have ruled largely in favor of providers on several lawsuits filed by the Texas Medical Association and for payers. These rulings have increased the complexity of complying with the NSA regulations.
Speaker 5: As many of you are aware throughout 2023, courts have ruled largely in favor of providers on several lawsuits filed by the Texas Medical Association. And for payers, these rulings have increased the complexity of complying with the NSA regulations.
Speaker 5: This dynamic continued in the third quarter when the court ruled that QPA schedules must be calculated at the plan level. Reverse CMA's July 2021 final rules, which allowed for calculations based on the payers' book of business, and for as few as one QPA schedule to price all claims.
This dynamic continued in the third quarter when the court ruled that <unk> schedules must be calculated at the plan level reversing CMA as July 2021 final rules, which allowed for calculations based on the payer's book of business and four as few as one <unk> scheduled to.
Price all claims.
Speaker 5: The latest TMA ruling will require a huge increase in data creation, data storage, maintenance, and processing logic.
The latest TMA ruling will require a huge increase in data creation data storage maintenance and processing logic. Our customers are telling us this will be very difficult for them to do and they are looking to us for assistance.
Speaker 5: Our customers are telling us this will be very difficult for them to do and they are looking to us for assistance.
Speaker 5: We've already built into our NSA services a variety of approaches to creating QPA schedules, including at the plan level. So we are very well positioned to provide that assist.
We've already built into our NSA services, a variety of approaches to creating upa schedules, including at the plan level. So we are very well positioned to provide that assistance as a result, depending on whether CMS appeals the latest TMA rolling and the outcome of any appeal Cupid administration.
Speaker 5: As a result, depending on whether CMS appeals the latest PMA ruling and the outcome of an appeal. QPA administration enhancements could be one of the key and essay related initiatives for us in 2024.
And enhancements could be one of the key NSA related initiatives for us in 2024.
Wrapping up our list of core service enhancements during the third quarter, we introduced functionality enhancements to our itemized Bill review service or <unk>, and we are already starting to get traction in the market with the addition of a couple of significant customers in the quarter.
Speaker 5: Wrapping up our list of core service enhancements during the third quarter, we introduced functionality enhancements to our itemized bill review service, or IBR. And we are already starting to get traction in the market with the addition of a couple of significant customers in the quarter.
Speaker 5: IBR is a payment integrity service that reviews high dollar inpatient facility claims during the adjudication process to identify billing errors and prevent overpayment.
<unk> is a payment integrity service that reviews high dollar inpatient facility claims during the adjudication process to identify billing errors and prevent overpayments.
Our IV are enhancements include the ability to mine claim data by leveraging our prepayment integrity analytics to identify and prioritize the most promising cases to pursue.
Speaker 5: Our IBR enhancements include the ability to mine claim data by leveraging our pre-payment integrity analytics to identify and prioritize the most promising cases to pursue.
Speaker 5: For 2024, we are shifting our attention to our network-based services with a plan to pilot, pilot, a next-generation customized network model, which would bundle services from each of our service lines, including payments, and will be targeted initially to the direct to employer channel.
For 2024, we are shifting our attention to our network based services with a plan to pilot.
Pilot pilot, a next generation customized network model, which would bundled services from each of our service lines, including payments and will be targeted initially to the direct to employer channel.
Moving on to the initiatives that expand our service offerings, which are detailed in the fourth row of page nine during the third quarter, we made solid progress marketing our new data in decision Science services line, which as most of you know includes the products acquired through DST. We've.
Speaker 5: Moving on to the initiatives that expand our service offerings, which are detailed in the fourth row of page nine. During the third quarter, we made solid progress marketing our new data and decision-size services line, which as most of you know includes the products acquired through DSP.
Speaker 5: We've wasted no time introducing these new services to our payer customers.
We've wasted no time, introducing these new services to our payer customers. The reception has been strong and even though we acquired DST just a few months ago. We are rapidly building a sales pipeline to help drive our growth in 2024.
Speaker 5: The reception has been strong and even though we acquired DSP just a few months ago, we are rapidly building a sales pipeline to help drive our growth in 2024.
Speaker 5: As part of this effort, we launched the first two phases of plan optics, our software suite that ingest the newly required pay or price transparency data and uses this data to deliver critical market insights to our customers.
As part of this effort, we launched the first two phases of plan optics, our software suite that ingests the newly required payer price transparency data and uses this data to deliver critical market insights to our customers.
Speaker 5: In July , we released Plan Optics Search.
In July we released planned Opex search.
And in October we launched the first version of our plant optics intelligence solution, which goes beyond simply clearing the data to helping payers with their network contracting and market expansion strategies.
Speaker 5: And in October , we launched the first version of our planned optics intelligence solution, which goes beyond simply querying the data to helping payers with their network contracting and market expansion strategy.
For 2024, we are working on a number of data in decision science services lined initiatives. This includes expanding the features and functionality of plant optics intelligence.
Speaker 5: For 2024, we are working on a number of data and decision-sciences services line initiatives. This includes expanding the features and functionality of plant optics intelligence.
Speaker 5: and designing a price transparency data solution for the provider market.
And designing a price transparency data solution for the provider market.
Speaker 5: This will open up, this would open up a new product opportunity in a channel that is very familiar.
This will open up this would open up a new product opportunity and a channel that is very familiar to us.
Speaker 5: It also includes standing up our risk-goreing models as a standalone service that can add value to every claim we process through our platform, and which is critical to deepening our penetration of Medicare Advantage and in-network claim.
It also includes standing up our risk scoring models as a standalone service that can add value to every claim we processed through our platform and which is critical is critical to deepening our penetration of Medicare advantage and in network claims.
Speaker 5: Also during the third quarter, we began to build our sales pipeline for our new B2B healthcare payment service, which as we have previously discussed, is being offered through a partnership with Echo Health. I'm pleased to announce that we have already secured our first customer and will begin implementing that mandate shortly. For 2024, we continue to focus on the rollout of this exciting new service to our customers.
Also during the third quarter, we began to build our sales pipeline for our new B to B healthcare payment service, which as we have previously discussed as being offered through a partnership with Echo L. I.
I am pleased to announce that we have already secured our first customer and we will begin implementing that mandate shortly.
For 2024, we continue to focus on the rollout of this.
Citing new service to our customer base.
Speaker 5: So, as you can see, we have been very busy, but I'm extremely pleased with the progress we have made on each of our four growth plan objectives.
So as you can see we have been very busy.
I'm extremely pleased with the progress we have made on each of our four growth plan objectives. Our 2023 initiatives are on track we are already setting some of our 2024 initiatives in motion, which are creating more ways to grow our revenues at multi plant.
Speaker 5: Our 2023 initiatives are on track. We are already setting some of our 2024 initiatives in motion, which are creating more ways to grow our revenues that move.
We still have a lot of work ahead of us, but we are already making a ton of progress. Thanks to the dedication of our product team our sales team and the rest of our 2700 multi plan colleagues.
Speaker 5: We still have a lot of work ahead of us, but we are already making a ton of progress thanks to the dedication of our product team, our sales team, and the rest of our 2,700 multi-plan college.
Speaker 5: As I have said several times, the strategy is in place. From here, it's all about execution. And we will continue to be relentless in our day to day execution.
As aby as I have said several times the strategies in place from here, it's all about execution and we will continue to be relentless in our day to day execution.
Speaker 5: With that, I'd like to turn the call over to our CFO , Jim Head.
With that I'd like to turn the call over to our CFO, Jim head Jim.
Thank you Dale and good morning, everyone before I begin I just want to Echo Dales view that we're really pleased with our solid execution in the quarter and how we are progressing through the year as planned.
Speaker 6: Thank you, Dale. And good morning, everyone. Before I begin, I just want to echo Dale's view that we're really pleased with our solid execution in the quarter and how we're progressing through the year as planned.
Speaker 6: I'm going to start with a review of the quarterly financial results. I'll follow that by commenting on our fourth quarter outlook, and I'll finish up by providing an update on our balance sheet and capital allocation.
I'm going to start with a review of the quarterly financial results I'll follow that by commenting on our fourth quarter outlook and I'll finish up by providing an update on our balance sheet and capital allocation.
As shown on page four of the supplemental deck third quarter revenues were $242 8 million declining 3% from Q3 22 as year over year volume growth helped us absorb a meaningful portion of the annual headwind of approximately 8% related to contract renewals with our larger customers.
Speaker 6: The show on page four of the supplemental deck, third quarter revenues were 242.8 million, declining 3% from Q322, as year over year volume growth helped us absorb a meaningful portion of the annual headwind of approximately 8% related to contract renewals with our larger cost.
Speaker 6: Importantly, revenues increase 2% from the prior quarter as we delivered on our expectation to resume growth in the second half.
Importantly, revenues increased 2% from the prior quarter as we delivered on our expectation to resume growth in the second half.
Speaker 6: excluding a 3.6 million contribution to revenues from BST, third quarter revenues were 239.2 million, down 4.5% from prior year quarter, and up about 1.4% or 3 million sequentially, despite one less business day in Q3.
Excluding a $3 6 million contribution to revenues from BSC third quarter revenues were $239 2 million down four 5% from prior year quarter and up about one point.
4% or $3 million sequentially, despite one less business day in Q3.
Speaker 6: Starting to revenues by service line, as shown on page five of the supplemental deck, network-based services revenues to client about 4% from the prior year quarter, and we're down less than 1% sequentially.
Turning to revenues by service line as shown on page five of the supplemental deck network base revenues to network based services revenues declined about 4% from the prior year quarter and were down less than 1% sequentially.
Speaker 6: Analytics-based services revenues declined about 3% from the prior year quarter, but were relatively strong sequentially, increasing about 5% from the prior quarter, inclusive of 1.5 million of incremental BST revenue.
Analytics based services revenues declined about 3% from the prior year quarter, but were relatively strong sequentially, increasing about 5% from the prior quarter inclusive of $1 5 million of incremental <unk> revenues.
Payment and revenue integrity services revenues were flat from the prior year and declined 6% sequentially or about $1 8 million. The sequential decline was driven primarily by lower clinical negotiation volumes, which were partially substitute substituted by additional activity in our analytics business. We also had lower revenues in our revenue integrity.
Speaker 6: Payment and revenue integrity services revenues were flat from the prior year and declined 6% sequentially or about 1.8 million. The sequential decline was driven primarily by lower clinical negotiation volumes which were partially substituted by additional activity in our analytics business. We also had lower revenues in our revenue integrity services which were partially substituted by additional activity in our analytics business. We also had lower revenues in our revenue integrity services revenues were flat from the prior year and declined 6%
<unk> services.
Which can exhibit lumpy quarter to quarter performance.
Our third quarter revenues reflect the sequential shift in potential identified medical cost savings, despite a flattish quarter for utilization, which plateaued in Q3 after a strong first half.
Speaker 6: Our third quarter revenues reflect the sequential shift in potential identified medical cost savings despite a flatish quarter for utilization, which plateaued in Q3 after a strong first half.
As detailed on page six of the supplemental deck at the top of the funnel medical charges process declined by 1% from Q2 to 23 to $42 5 billion.
Speaker 6: As detailed on page 6 of the supplemental deck, at the top of the funnel, medical charges process declined by 1% from Q223 to 42.5 billion.
Speaker 6: Given our claims lag, this looked more or less consistent with the mixed healthcare utilization trends in the second quarter that were reported by some of the publicly traded payers and hospital operators.
Given our claims lag this look more or less consistent with the mixed health care utilization trends in the second quarter that were reported by some of the publicly traded payers and hospital operators.
Speaker 6: Identified potential savings increase 2% from 223 to 5.8 billion.
Identified potential savings increased 2% from Q2 to 23% to five 8 billion.
In the core commercial health plans category medical charges process declined 1% sequentially to $18 5 billion, but identified potential savings increased 2% sequentially to $5 5 billion.
Speaker 6: In the core commercial health plans category, medical charges process declined 1% sequentially to 18.5 billion, but identified potential savings increased 2% sequentially to 5.5 billion. Our highest quarter for commercial health plan savings since Q122, reflecting our core savings performance and strength from HST.
Our highest quarter for commercial health plan savings since Q1, 'twenty, two reflecting our cost savings performance and strength from HST.
As shown on page eight of the supplemental deck.
Speaker 6: As shown on page eight of the supplemental back, identified potential savings in our P-save revenue model increased 1% sequentially to 4.2 billion.
Identified potential savings in our <unk> revenue model increased 1% sequentially to $4 2 billion.
Also as shown on page eight revenues as a percentage of identified savings or revenue yield was very stable. This quarter declining just one basis point for our overall business, which includes both <unk> and <unk>.
Speaker 6: Also, as shown on page 8, revenues as a percentage of identified savings or revenue yield was very stable this quarter. Declining just one basis point for our overall business, which includes both P-save and PEPM.
Or to the point the revenue yield for our core percentage of savings revenue model, which is approximately 90% of our revenues was effectively flat declining just one basis point.
Speaker 6: According to the point, the revenue yield for our core percentage of savings revenue model, which is approximately 90% of our revenues, was effectively flat, declining just one basis.
Speaker 6: As we have previously indicated, the impact of the contract renewals was fully reflected in the quarterly run rate in the second quarter. And we expect a revenue yield to look stable for the foreseeable future. With modest changes up or down driven by product and customer mix. And this is precisely what we saw in the third quarter.
As we have previously indicated the impact of the contract renewals was fully reflected in the quarterly run rate in the second quarter and we expect our revenue yield to look stable for the foreseeable future with modest changes up or down driven by product and customer mix and this is precisely what we saw in the third quarter.
Turning to expenses third quarter, adjusted EBITDA expenses were $90 5 million up $12 2 million from the prior year quarter and up $5 $2 million sequentially.
Speaker 6: Turning to expenses, third quarter adjusted EBITDA expenses were 90.5 million, up 12.2 million from the prior year quarter, and up 5.2 million sequentially.
Speaker 6: For the sequential comparison, about 60% of the increase in expenses was driven by cost increases in our core business, which reflects the combination of investments in headcount to support our new products and services, and cost to support our NSA IDRX.
The sequential comparison about 60% of the increase in expenses was driven by cost increases in our core business, which reflects the combination of investments in head count to support our new products and services and cost to support our NSA <unk> activities.
The other 40% of the expense growth reflects the expenses contributed by PST in Q3 dollars 23, which was the first full quarter post acquisition.
Speaker 6: The other 40% of the expense growth reflects the expenses contributed by BST and Q323, which was the first full quarter post acquisition.
Speaker 6: The attribution of the expense increases was similar to what we saw in Q2, reflecting delivered upfront investments we're making to enact our growth plan in our Corbis.
The attribution of the.
Expense increases were similar to what we saw in Q2, reflecting deliberate upfront investments, we're making to enact our growth plan and our core business.
And absorbing the BST cost structure, and some upfront costs related to the BSC integration.
Speaker 6: and absorbing the BST cost structure and some upfront costs related to the BST integration, much of which will not recur.
<unk> of which will not recur.
Speaker 6: We expect our expense trajectory to normalize in the fourth quarter, with expenses down slightly, sequentially.
We expect our expense trajectory to normalize in the fourth quarter with expenses down slightly sequentially.
Speaker 6: As we finish the year and complete our expense budgeting for 2024, we are actively assessing our cost structure to preempt inflationary pressures and mitigate growth in core expenses to free up room for investment in our niche.
As we finished the year and complete our expense budgeting for 2024, we're actively assessing our cost structure to preempt inflationary pressures and mitigate growth in core expenses to free up room for investment in our initiatives.
Speaker 6: Adjusted EBITDA was 152.3 million in Q323 versus 172.2 million in the prior year quarter and 152.7 million in Q2. Our Q3 adjusted EBITDA landed toward the lower end of our guidance for the third quarter, driven by the affirmation investments in the core business and in BST.
Adjusted EBITDA was $152 3 million in Q3 dollars 23 versus $172 2 million in the prior year quarter and $152 7 million in Q2.
Q3, adjusted EBITDA landed towards the lower end of our guidance for the third quarter driven by the affirmation investments in the core business and in BSD.
As a result, our third quarter adjusted EBITDA margin, including Dfc was 62, 7% down 150 basis points versus 64, 2% in Q2 'twenty three.
Speaker 6: As a result, our third quarter adjusted even DOM margin, including BST with 62.7% down 150 basis points versus 64.2% in Q223.
Excluding the impact of BST the margin in our core business was above our consolidated margin for Q3 and consistent with the second quarter overall margin.
Speaker 6: excluding the impact of BST, the margin in our core business was above our consolidated margin for Q3 and consistent with the second quarter overall margin.
Turning to Q4 'twenty three in full year 'twenty three guidance, we expect revenues of $240 million to $250 million in the fourth quarter.
Speaker 6: Starting to Q423 and full year 23 guide.
Speaker 6: We expect revenues of $240 to $250 million in the fourth quarter.
Speaker 6: We are narrowing the range of our full year, 2023 revenue guidance, the 960 to 970 million, which implies no change at the midpoint from our prior 2023 guidance range of 950 to 980.
We are narrowing the range of our full year 2023 revenue guidance to $960 to $970 million, which implies no change at the midpoint from our prior 2023 guidance range of $9 50 to 980.
Speaker 6: For adjusted EBITDA, we're projecting 155 to 165 million in the fourth quarter, which includes less of a drag from BS.
For adjusted EBITDA, we are projecting $1 $55 million to $165 million in the fourth quarter, which includes a less of a drag from dfc.
Speaker 6: We expect the Jutton EBIT DOC expenses in Q4 to be lower than in Q3.
We expect adjusted EBITDA expenses in Q4 to be lower than in Q3.
Speaker 6: As some additional expenses in our core business related to hiring for new products and additional NFA expenses should be more than offset by cost controls and a drop-off of some one-time costs related to BFT.
There's some additional expenses in core in our core business related to hiring for new products and additional NSA expenses should be more than offset by cost controls and a drop off of some onetime costs related to BSP for.
Speaker 6: For the full year 2023, we are now expecting adjusted EBITDA on the range of 615 to 625, which at the midpoint implies a very modest reduction relative to our full year 2023 guidance range of 615 to 635, and reflects the impact of those additional investments that we have met.
For the full year 2023, we are now expecting adjusted EBITDA in the range of $6 15 to 625, which at the midpoint implies a very modest reduction relative to our full year 2023 guidance range of $6 15 to $6 35.
And reflects the impact of those additional investments that we have mentioned.
Speaker 6: Combination of a revenue adjusted ebit assumptions implies an improvement in the adjusted ebit by margin and Q4 closer to our annual expectations than in Q3.
Combination of our revenue adjusted EBITDA assumptions implies an improvement in the adjusted EBITDA margin in Q4 closer to our annual expectations then in Q3.
We remain on track to achieve an adjusted EBITDA margin of 64% to 65% for full year 'twenty three consistent with our guidance.
Speaker 6: We remain on track to achieve an adjusted E to dot margin of 64 to 65% for full year 23 consistent with our guidance.
Moreover, we remain confident that as <unk> scales, we should feel upward lift on our adjusted EBITDA margin, while still making additional investments to drive growth.
Speaker 6: Moreover, we remain confident that as BST scales, we should feel upward lift on our Adjusted Evidom margin while still making additional investments to drive growth.
Speaker 6: Moving on to balance sheet and capital management. In the third quarter, operating cash flow was $78.4 million, while our leverage-free cash flow was $49.2 million. As a reminder, the first and third quarters are typically our higher quarters for cash flow, given the timing of our interest and tax payments.
Moving on to balance sheet and capital management in the third quarter operating cash flow was $78 4 million, while our leverage free cash flow was $49 2 million.
As a reminder, the first and third quarters are typically our higher quarters for cash flow given the timing of our interest and tax payments.
Speaker 6: As shown on page 14 of the supplemental deck, we ended the quarter with 101 million of unrestricted cash up from about 90 million in the prior quarter. With the increase reflecting our quarterly free cash flow offset by 35 million of cash, used to repurchase 46 million of face value of our 5.75% senior on secured notes.
As shown on page 14 of the supplemental deck, we ended the quarter with $101 million of unrestricted cash up from about $90 million in the prior quarter with the increase reflecting our quarterly free cash flow offset by $35 million of cash used to repurchase $46 million of face value of our 575% senior secured.
Notes.
Net of cash our total and operating leverage ratios were seven 3% and five two respectively.
Speaker 6: Net of cash are total and operating leverage ratios for 7.3 and 5.2 respects.
We continue to be active and disciplined in allocating our capital over the last four quarters, we have deployed over $400 million of capital, including $248 million on debt repurchases on retirement $140 million on M&A and $13 million on share repurchases.
Speaker 6: We continue to be active and disciplined in allocating our capital. Over the last four quarters we have deployed over 400 million of capital, including 248 million on debt repurchases and retirement, 140 million on M&A, and 13 million on share repurchases.
Speaker 6: Our highest long-term priority remains investing in the business both organically and through M&A to drive growth and long-term value.
Our highest long term priority remains investing in the business, both organically and through M&A to drive growth and long term value.
Speaker 6: That priority is followed closely by debt reduction. Of note, we have reduced the face value of our debt by $333 million over the last four quarters.
That priority followed closely by debt reduction.
Of note, we have reduced the face value of our debt by $333 million over the last four quarters.
Speaker 6: As we've mentioned previously, and as shown on page 12, following the acquisition of BST in the near term, we are likely to deemphasize M&A. That's near to...
As we've mentioned previously and as shown on page 12.
Following the acquisition of BSC in the near term, we are likely to deemphasize M&A that's near term.
Speaker 6: As a result, you should expect us to continue making a series of small but critical organic investments to support our platform, including our new core products and our new data and decision science services line.
As a result, you should expect us to continue making a series of small but critical organic investments to support our platform, including our new core products and our new data in decision Science services line.
And near term you should expect the bulk of our incremental capital generation to be allocated towards debt retirement.
Speaker 6: And near term, you should expect the bulk of our incremental capital generation to be allocated towards debt retirement.
Speaker 6: We will continue to assess share repurchases. But as we've consistently said, that will likely be limited to a small allocation of our capital.
We will continue to assess share repurchases, but as we've consistently said that will likely be limited to a small allocation of our capital.
Stepping back to the bigger picture.
Our transformation is on track and we're very pleased with our organization has responded to the call to be nimble and action oriented.
Speaker 6: Our transformation is on track, and we're very pleased with how our organization has responded to the call to be nimble and action-oriented.
We've deliberately accelerated some investments this year to put us in a position to deliver growth in 2024.
Speaker 6: We've deliberately accelerated some investments this year to put us in a position to deliver growth in 2024, and we expect to grow in 2024.
And we expect to grow in 2024.
Admittedly it is a bit of a put a bit of near term pressure on our margins, but rest assured we have not lost our historical discipline around costs.
Speaker 6: Admittedly, it's a bit of put a bit of near-term pressure on our margins, but rest assured we have not lost our historical discipline around cost.
Speaker 6: Even now as we head into our 2024 budgeting exercise, we are prudently thinking through our cost base, making adjustments as we always do, and looking for ways to maintain our industry leading adjusted EBITDA margins while creating additional capacity to fund our investments and growth.
Even now as we head into 2020 for budgeting exercise, we are prudently thinking through our cost base, making adjustments as we always do and looking for ways to maintain our industry, leading adjusted EBITDA margins, while creating additional capacity to fund our investments in growth.
Speaker 6: It's a delicate balance, but achieving this balance is paramount to how our leadership team manages this business. And it's absolutely part of our execution roadmap. So that wraps up my...
It's a delicate balance but achieving this balance is paramount to our leadership team manages this business and it's absolutely part of our execution roadmap.
So that wraps up my comments I will turn it back over to Dale.
Thanks, Jim.
Speaker 5: Thanks, Jim. Before we open the call for questions, it bears repeating that we've been on quite a journey over the past 12 months.
Before we open the call for questions. It bears repeating that we've been on quite a journey over the past 12 months, the headwinds have dissipated and the tailwind sort of picking up we've.
Speaker 5: The headwinds have dissipated and the tailwinds are picking up. We've stabilized revenue and pivoted to a refresh strategy and the execution of our growth plan is in full swing.
We've stabilized revenue and pivoted to a refreshed strategy and the execution of our growth plan is in full swing.
Speaker 5: We remain confident that the initiatives we are working on will amplify our growth in the coming years and that we are marching down a path of transformation. As a result, I see great things on the horizon for our company. And as we've said, as we said at our Investor Day, within five years, Multiplan will be a stronger, more diversified, faster-growing and better-capitalized company. And as Jim just mentioned, we expect to grow in 2024. Operator, would you kindly?
We remain confident that the initiatives we are working on will amplify our growth in the coming years and that we are marching down a path of transformation.
As a result, I see great things on the horizon for our company and as we've said as we said at our Investor day within five years multi plan will be a stronger more diversified faster growing and better capitalized company and as Jim just mentioned, we expect to grow in 2024.
Operator would you kindly open the call for Q&A.
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Our first question today is from the line of Daniel <unk> of Citigroup.
Speaker 1: Our first question today is from the line of Daniel Ross Light of Citigroup. Daniel, your line is open, please proceed.
Daniel Your line is open. Please proceed.
Hey, Daniel Daniel Daniel Gross group. Your line is now open.
Speaker 1: Hey, Daniel, Daniel, Daniel, your line is now open.
Speaker 7: Hey guys, thanks for taking the question. I want to go back to some of the comments that Jim made on utilization this quarter in the lag. As you mentioned Jim, you know, there's this.
Hey, guys. Thanks for taking the question I'll go back to some of the comments that you made on utilization this quarter and the lag.
As you mentioned Jim.
Theres always a flag so.
Speaker 7: There's always a flag. So the sequential decline in volumes, I think it's...
The sequential decline in volumes I think you were implying was due to kind of wait providers.
Providers and payers had said in Q2 as we look towards <unk> in 2024, it seems like with payers and providers are seeing increasing utilization. So I'm curious how that is.
Transferring to how youre thinking about <unk> and 2024, and if you can provide any additional detail around the composition of that utilization.
Yes, so maybe to talk a little bit about the arc of this year.
Speaker 6: Yeah, so maybe to talk a little bit about the arc of this year and what it what it pretends for for 2024, but we saw, you know, we saw a nice uptick in the first half of the year in our savings.
And what it what it portends for for 2024, but we saw it.
We saw a nice uptick in the first half of the year.
Our savings.
Raised about 5% in the first two quarters compared to fourth quarter of last year. So we saw that and it was actually pretty consistent with what.
Speaker 6: raised about 5% in the first two quarters compared to fourth quarter of last year. So we saw that, and it was actually pretty consistent with what we saw in the, you know, the provider universe, the hospitals, etc. And it's, the best way to describe it is it's plateauing. I don't know whether that's consolidating to get to a higher level. We've always been a little cautious about calling the uptick.
What we saw in the.
The provider universe, the hospitals et cetera, and it's the best way to describe it as it's plateauing I don't know whether thats consolidated to get to a higher level, we've always been a little cautious about calling the uptick but obviously, we look at the leading indicators and it seems to be.
Speaker 6: But obviously, we look at the leading indicators and it seems to be, you know, ticking upward. So that obviously doesn't feel bad for our business, but we're just not ready to call another upswing in volume.
Ticking ticking upward so that obviously doesn't feel bad for our business, but we're just not ready to call. Another upswing in volume, but what it is not is going backwards, it's not coming down it's not falling but I think it's consolidating at a new level and grinding upwards, so that bodes well for our business but.
Speaker 6: But what it is not is going backwards. It's not coming down. It's not falling. But I think it's consolidating at a new level and grinding upwards. So that bodes well for.
Speaker 6: But we're not hanging our hat on that to, you know, for growth next year. I think we're kind of planning for a flat, maybe slightly up volume environment, but very low. That's just not part of our planning process.
We're not hanging our hat on that too for growth next year, I think we're kind of planning for a flat maybe slightly up.
Volume environment, but very low that's just not part of our planning process.
Speaker 6: As it pertains to the mix of our business, you know, we've got a pretty big mix on the physician side and then we've got a pretty big portion of our mix on the facility side. So what you see out of the hospitals, et cetera, is actually consistent with us, which is we're seeing some uptwing in volume, surgeries, et cetera. So that is rhyming very closely to what some of the hospitals have described. On the physician side, it's relatively flat.
As it pertains to the mix of our business, we've got a pretty big mix on the physician side and then we've got a big portion of our mix on the on the facility side. So what you see out of the.
The hospitals et cetera is actually consistent with us which is we're seeing some some upswing in volume.
Surgeries et cetera, so that is brining very closely to what some of the the hospitals have described on the physician side, it's relatively flat.
Speaker 6: And so just given our mix, it's a little bit slower than what the hospitals see across the board. So to summarize, feels good consolidating in a new plateau, doesn't feel like we've got risk on the downside. It's a little bit more about whether we call the upside here.
And so just given our mix it does it's a little bit slower than.
Then what the hospital C.
Across the board so.
To summarize feels good consolidating at a new plateau.
It doesn't feel like we've got risk on the downside its a little bit more about how do we whether we call the upside here.
Got it thanks, and as we think about 2024.
Speaker 7: Got it. Thanks. And as we think about, you know, 2024 and looking at your longer term guidance that you provided during Investor Day of 4 to 5%, you know, you just mentioned, Jim, that you expect utilization to be flattish, maybe slightly up.
And looking at your longer term guidance that you provided during investor dance of 4% to 5%.
You just mentioned that you expect utilization to be flattish maybe slightly up.
Speaker 7: Is there any, you know, change in how you're thinking about that 4 to 5% growth rate for 2024 or anything that would, you know, prevent you from hitting that in 2024? And then as we think about EBITDA margin too, is 4Q the right margin run rate that we should think about for full year 24? Or are there some additional investments that you need to make that might lead to some additional margin degradation?
Is there any.
Change in how youre thinking about that 45% growth rate for 2024 or anything that way.
Prevent you from continuing that in 2024, and then as we think about EBITDA margin. Two is <unk> the raising margin run rate that we should think about for full year 'twenty four or are there. Some additional investments that you need to make that might lead to some additional margin degradation.
Speaker 6: Okay, so let's break it into two parts. So is utilization a big part of our growth algorithm? And the answer is it never has been. Medical inflation, membership growth, productivity improvements. If you go back to our investor day, those are bigger pieces of the overall puzzle. So it's not inconsistent with our, our statements are not inconsistent with our long-term model, Daniel, in terms of how we think about things. I look at utilization uptick as all upside.
Okay. So, let's let's break it into two parts. So is utilization a big part of our growth algorithm and the answer is it never has been medical inflation.
Membership growth productivity improvements if you go back to our Investor day, those are bigger pieces of the overall puzzle. So it's not inconsistent with our with our statements are not inconsistent with our long term model Daniel in terms of how we think about things.
I look at utilization uptick is all upside.
If it really picks upwards than that then that's super helpful for us, but medical inflation productivity improvements are bigger pieces of the overall puzzle.
Speaker 6: If it really ticks upwards, then that's super helpful for us. But medical inflation, productivity improvements are bigger pieces of the overall puzzle.
Speaker 6: On the expense side, I think you can equate third quarter to be the nadir.
On the expense side I think you can you.
You can equate third quarter to be the nadir.
Of our margins and as we.
Speaker 6: of our margins and as we, you know, as we march into 2024 and going forward, I can't say that we've got, we're expecting any major uplift in margins because we're continuing to make investments here.
As we March into 2024, and going forward I can't say that we've got we're expecting any major uplift in margins because we're continuing to make investments here.
Speaker 6: But, you know, obviously in February , we'll come out with guidance and give you a sharper point of view. But we've we've been clear that we're aiming for mid 60s type of margins in the business that is deliberate.
But.
Obviously in February we will come out with guidance and give you a sharper point of view.
But we've been clear that we're aiming for mid <unk> type of margins in the business that is deliberate.
Speaker 6: And it's also an indicator that we see growth opportunities and we're willing to invest in them.
And it's also an indicator that we see growth opportunities and we're willing to invest in them.
Got it thanks for the color.
As a reminder, if you would like to ask a question. Please dial star one on your telephone keypad now.
Speaker 1: As a reminder, if you would like to ask a question, please dial star 1 on your telephone keypad now.
Okay and it appears we have no further questions in the queue. Today. So this will conclude the most supply and cooperation.
Speaker 1: Okay, and appears we have no further questions in the queue today. So this will conclude the multiple-phone corporation. Oh, my apologies. We do have, we have just had a question registered from the line of Madison Aaron or JP Morgan. Madison, your line's open. Please go ahead.
My apologies, we do have we have just had a question registered from the line of Madison Iron of JP Morgan.
Im asking your line is open. Please go ahead.
Speaker 8: Hi, Don. Can you, thanks for taking my questions. With regards to the KPA, a stuff that you noted earlier that you're working with your payers to provide them assistance, is there anything that you could quantify around what that opportunity looks like going into next year since it's going to be incremental to what you're doing? And then as we think about margins going into the first half, I know you're making a number of investments to prepare for 2024, especially with BSD. How should we think about the progression of margins? Do you expect it to be under some pressure in the first half due to these investments and then to ramp up more in the second half of next year? Thank you.
Can you on it.
Thanks for taking my questions with regards to keep a set that you'd noted earlier that youre working with your payers to provide them assistance is there anything that you could quantify around what that opportunity looks like going into next year. Since it is going to be incremental to what you're doing and then as we think about margins going into the first half I know you are making a number.
There are investments to prepare for 2020 for especially with BST, how should we think about the progression of margins do you expect it to be under some pressure in the first half due to these investments and then too.
Ramp up more in the second half of next year. Thank you.
Speaker 5: I can answer the first part of the question. It's still too early to size the opportunity going forward in 2024. The federal court in Texas.
I can answer the first part of the question, it's still too early to say.
The opportunity going forward in 2020 for the Federal Court in Texas.
Speaker 5: I just released the opinions on the two NSA-related cases in August . What was called then is TMA-3 and TMA-4, and it was in TMA-3 where the court found primarily for the challengers and addressed issues around how the QPA is calculated, like prohibiting ghost raids.
Just released the opinions on the two NSA related cases in August what was called then TNA three and TMA four and it was in TNA TMA three where the court found primarily for the challengers and address the issues around how the <unk> calculated like prohibited.
Ghost rates, requiring the <unk> to be calculated by specialty and prohibiting the payers from calculating <unk> across multiple planned sponsors. So so it address the number of open issues.
Speaker 5: Requiring the QPA to be calculated by specialty and prohibiting the payers from calculating QPAs across multiple plan sponsors. So it addressed a number of open issues. We believe the administration is set to appeal the decision and update its guidance documents to accommodate these changes. In fact, the administration just on October 30th released a proposed rule to the IDR process.
Believe the administration is set to appeal the decision.
And updated guidance documents to accommodate these changes in fact the administration just on October 30th related released a proposed rule to the <unk> process under the NSA and largely focused on the efficiency and communication between the disputing parties in and try to do.
Speaker 5: under the NSA and and it largely focused on the efficiency and communication between the disputing parties and and try to decrease the volume of disputes that are being submitted for the for the idea of process.
<unk> decreased the volume of disputes that are being submitted for the for the <unk> process. The administration has requested comments from the industry for those proposed rules. Those comments I think have to be submitted by the beginning of January and then we'll wait for the publication of the final rule. So it's still early in the process to <expletive>.
Speaker 5: The administration has requested comments from the industry for those proposed rules.
Speaker 5: Those comments, I think, have to be submitted by the beginning of January , and then we'll wait for the publication of a final rule. So it's still early in the process to declare what impact it will have in 2024, but we've already, you know, we've already, in the work we've done to date and the work we're doing now, we're positioning the company to respond to the growing complexity that we recognize continues to come with NSA.
Clear what impact that will have in 2024, but we've already we've already in the work we've done to date and the work. We're doing now we're positioning the company to respond to the growing complexity that we recognizes continues to come with NSA.
And recently why don't I just address the margin.
Speaker 6: And Rishi, why don't I just address the margin.
<unk>.
Question as we go into 2024, I think Theres a couple.
Speaker 6: question, you know, is we going to 2024? I think there's a couple.
Speaker 6: Tailwinds, which will help lift margins. And then there's the investments we're making in the business. And my first statement would be we're trying to maintain this balancing act, which is maintaining our margins.
Tailwind, which will help help lift margins and then there is the investments we're making in the business in my first statement would be we're trying to maintain this balancing act, which is maintaining our margins.
Speaker 6: I'm putting ourselves in a position to go capture these new growth opportunities. So I don't do that as a massive J-curve in 2024. I think it's more of just kind of maintaining. And some of the things that are positive, we're going to get some lifts as some of those one-timers start dissipating and BST starts contributing a little bit more on the top line. We're going, you know, obviously as volumes increase, that's beneficial to us.
Putting ourselves in a position to go capture these new growth opportunities. So I don't view that as a as a massive J curve in 2024, I think it's more of just kind of maintaining.
And some of the things that are positive were going to get some lift.
Some of those one timers.
Start dissipating in BSD starts contributing a little bit more on the top line we're going.
Obviously as volumes increase that's that's beneficial to us.
Speaker 6: We've got, you know, we do have in our mix, some of the mix in our growth is going to slow our margin expansion down, and then we've got investments in the business. So, think about a balancing act for 2024, you know, in advance of providing any guidance. I think that's the best message we can give you, but Q3 was certainly the nadir.
We do have in our mix some of the some of the mix and our growth is going to is going to slow our margin expansion.
Expansion down and then we've got investments in the business. So think about a balancing act for 2024.
In advance of providing any guidance I think thats the best message, we can give you but.
Q3 was certainly the nadir.
Great. Thank you.
Thank you and we have no further questions in the queue. At this time. So this will conclude the most time Corporation third quarter 2023 earnings Conference call. Thank you all for joining you may now disconnect your lines.
Speaker 1: Thank you and we have no further questions in the queue at this time so this will conclude the Multiplan Corporation third quarter 2023 earnings conference call. Thank you all for joining, you may now disconnect your lines.
[music].
Speaker 2: So So what.
Okay.
Okay.