Q4 2023 Augmedix Inc Earnings Call
Operator: Greetings, and welcome to Augmedix's fourth quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode.
Greetings and welcome to augment its fourth quarter 2023 earnings conference call.
At this time all participants are in a listen only mode.
Operator: A question and answer session will follow the formal presentation. If anyone should require operator assistance during a conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Matt Chesler, Director of Investor Relations. Thank you. You may begin.
Question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded it is now my pleasure to introduce Matt Chesler Investor Relations. Thank you you may begin.
Matt Chesler: Thank you, Operator. Joining me today are Manny Krakaris, Chief Executive Officer of Augmedix, and Paul Ginocchio, Chief Financial Officer. This afternoon, we released financial results for the quarter ended December 31st, 2020. We've posted a copy of the press release and an investor presentation on our website at Augmedix.com. We'll begin our call with prepared remarks to be followed by a Q&A session. This call is also being simulcast and will be archived on our website. Before we begin, I'd like to remind you that management will make statements during this call that are forward-looking statements within the meaning of federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Therefore, any statements that relate to expectations or predictions of future events, results, or performance are forward-looking statements.
Thank you operator, joining me today are Manny Kirk Harris, Chief Executive Officer of log medics, and Paul Ginocchio, Chief Financial Officer.
Afternoon, We released financial results for the quarter ended December 31st 2023.
We've posted a copy of the press release, and an investor presentation on our website and log medics dotcom.
We'll begin our call with prepared remarks to be followed by a Q&A session. This call is also being simulcast and will be archived on our website.
Before we begin I'd like to remind you that management will make statements. During this call that include forward looking statements within the meaning of federal Securities laws, which are made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
Any statements that relate to expectations or predictions of future events results or performance are forward looking statements.
Matt Chesler: These estimates are based upon our current estimates and various assumptions and involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied. Accordingly, you should not place undue reliance on these statements; for a list and description of the risks and uncertainties associated with our business, please refer to Risk Factors and Management Discussion Analysis in our most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, and similar disclosures in subsequent reports filed with the SEC. Also, during our call today, we'll discuss non-GAAP financial measures, which adjust our GAAP results to eliminate the impact of certain items. You'll find additional information regarding these financial measures and a reconciliation to GAAP measures in today's press. This call contains time-sensitive information and is accurate only as of the live broadcast today, March 18, 2024. We disclaim any intention or obligation, except as required by law, to update or revise financial projections or forward-looking statements, whether because of new information, future events, or otherwise. And with that, I'll turn the call over to Manny.
They are based upon our current estimates and various assumptions and involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied.
Accordingly, you should not place undue reliance on these statements.
For a list and description of the risks and uncertainties associated with our business. Please.
Please refer to risk factors and management's discussion and analysis and our most recent Form 10-K.
And Form 10-Q filed with the Securities and Exchange Commission and similar disclosures in subsequent reports filed with the SEC.
Also during our call today, we'll discuss non-GAAP financial measures, which adjust our GAAP results to eliminate the impact of certain items.
You'll find additional information regarding these financial measures and a reconciliation to GAAP measures in today's press release.
This call contains time sensitive information and is accurate only as of the live broadcast today March 18th 2024.
We disclaim any intention or obligation except as required by law.
To update or revise financial projections or forward looking statements.
Whether because of new information future events or otherwise.
And with that I'll turn the call over to Manny.
Manny Krakaris: Thanks, Matt. This is a solid ending to a strong and strategically important year for Augmedix. We met or exceeded all of our financial targets while assembling the broadest portfolio of ambient class solutions in the industry, including a fully automated AI documentation solution where we serve more care settings than any other player in our business. We are leveraging the structured data we produce and our bi-directional communication channel to the point of care to become even more valuable to our healthcare enterprise customers. And, of course, we've onboarded an enviable set of customers and partners that are supporting us along the way and which provide high visibility to incremental growth. We are well positioned to win.
Thanks, Matt.
This was a solid ending to a strong and strategically important year for automatic.
We met or exceeded all of our financial targets, while assembling the broadest portfolio of ambient class solutions in the industry.
Including a fully automated AI documentation solution, we serve more care settings and any other player in our business.
We are leveraging the structured data we produce in our bidirectional communication channel to the point of care to become even more valuable to our health care enterprise customers.
And of course, we have on boarded an enviable set of customers and partners that are supporting us along the way and to provide high visibility to incremental growth.
We are well positioned to win.
Manny Krakaris: The key to success, we believe, is to be able to meet customers where they are today, in other words, solve their current problems today, and where they want to be in two to three years. It is for this reason that we are offering varying levels of service embedded within our product suite. Customers can choose products ranging from a fully autonomous software product, which we call Augmedix Go, with no human assistance on our part, to a full service solution, which we call Augmedix Live, where we assign a highly trained medical documentation specialist to observe patient encounters remotely and deliver a very high-quality note and ancillary services to the clinician. Importantly, we also deliver clinical decision support to the point of care and structured data that positively impacts Finally, we are one of only two documentation vendors to be certified by the High Trust Alliance for Information Security.
The key to success, we believe is to be able to meet customers, where they are today. Another word solve their current problems today and where they want to be in two to three years. It is for this reason that we are offering varying levels of service embedded within our product suite.
Customers can choose products ranging from a fully autonomous software product, which we call Ahmed Exco with no human assistance on our part.
Full service solution, which we call dogmatics lives.
We assign a highly trained medical documentation specialist to observe patient in calendar remotely and deliver a very high quality notes and ancillary services to the clinician.
Importantly, we also deliver clinical decision support to the point of care and structured data that positively impacts customers downstream activities.
Finally, we are one of only two documentation vendors to be certified by the high Trust Alliance for information security.
Manny Krakaris: This prestigious certification validates our commitment to safeguard sensitive patient information, which we know is currently at the top of many customers' minds. This broad product approach drove our growth in 2023, and it is resonating with the market today, as evidence of this. Last week, we were selected to participate in a large pilot with a Fortune 100 healthcare company that is looking to adopt AI and digital health tools across its oncology network. In December, we made the ambulatory version of Augmedix GO generally available to customers. I am very pleased with how it is performing.
This prestigious certification validates our commitment to safeguard sensitive patient information, which you know is currently at the top of many customers might.
Its broad product approach drove our growth in 2023, and it is resonating with the market today.
As evidence of this last week, we were selected to participate in a large pilot with a fortune 100 healthcare company that is looking to adopt AI and digital health tools across its oncology network.
In December we made the ambulatory version of Ahmed Exco generally available to customers and I'm very pleased with how it is performing.
Manny Krakaris: Augmedix Go is our new ambient AI product that addresses a very large price segment of the market, sub $600 per month, and represents the vehicle by which we expect to realize significant penetration within health systems. Recent data from survey responses of Augmedix Go! Customers revealed that 94% of clinicians surveyed reported that Augmedix Go! helps them better focus on their patients, and clinicians save up to one hour or more per day using the product.
Mexico is our new ambient AI product that addresses a very large price segment of the market sub $600 per month and represents the vehicle by which we expect to realize significant penetration within health systems.
Recent data from survey responses Bogman exco customers revealed that 94% of clinicians surveyed reported that on Mexico helps them better focus on their patients and clinicians save up to one hour or more per day using that product.
Manny Krakaris: This aligns with our philosophy of enabling clinicians to see the patient and trust the technology to do its work in the background. Though very early in its deployment, initial orders have met our expectations, and we expect adoption will continue to build throughout the year and beyond. We've also been developing a version of Augmedix Go specifically designed for the challenging conditions of the emergency department. There are very few competing products commercially deployed in this important sector of the market.
This aligns with our philosophy of enabling clinicians to see the patient and trust the technology could do its work in the background.
So very early in its deployment initial orders have met our expectations and we expect adoption will continue to build throughout the year and beyond.
We've also been developing a version of Ahmed Exco, specifically designed for the challenging conditions of the emergency Department.
There are very few competing products commercially deployed in this important sector of the market.
Manny Krakaris: We are pleased with the initial results thus far and expect to make Augmedix GO for the ED generally available by the end of this month. At the same time, our strategic partner, HCA Healthcare, has been testing the emergency department version of Augmedix Go in its own hospitals. HCA is preparing to evaluate this version of Augmedix GO in advance of a broad rollout across its network of hospitals. We are confident we will realize the full potential of this significant opportunity and will update you as soon as we reach the next meaningful milestone. At the HIMSS conference last week, I was on a panel with HCA and Google during which HCA delivered encouraging commentary on both the Go ER pilot and our portfolio of products. HCA also stated its intention to deploy our solutions in other departments within their system. Augmedix Go is being offered at two service levels. The base level is a self-service version wherein Augmedix provides no human assistance in creating the medical note.
We are pleased with initial results, thus far and expect to make our medics golf are the E. D. Generally available by the end of this month.
At the same time, our strategic partner HCA healthcare has been testing the emergency Department version of Ahmed Exco and its own hospitals.
H T as preparing to evaluate this version of our genetics go in advancing a broad rollout across its network of hospitals.
We are confident we will realize the full potential of this significant opportunity and we'll update you as soon as we reach the next meaningful milestone.
At the HIMSS Conference last week I was on a panel with HCA and Google during which HCA deliberate encouraging commentary on both the go E. Our pilot and our portfolio of products.
<unk> also stated its intention to deploy our solutions into other departments within their system.
Ahmed Exco is being offered it to service levels. The base level is a self service version wearing of masks provides no human assistance in creating the medical note.
Manny Krakaris: The note is automatically generated and available for review and sign-off by the clinician within a minute or two following the patient encounter. The base version of Augmedix Go is the least expensive for the customer and the most scalable product among our portfolio. The premium version is called Go Assist.
Otis automatically generated and available for review and sign off with the clinician within a minute or two following the patient encounter.
The base version Bogman Exco is the least expensive for the customer and most scalable product among our portfolio.
The premium version is called go assist.
Manny Krakaris: At the discretion of the clinician, the draft note is simultaneously delivered to an Augmedix medical documentation specialist, who reviews it for quality assurance and makes any necessary edits before clinicians sign off. Go Assist comes at a slightly higher price than the base version of Go. Augmedix Go sits alongside our live product, the highest level of service where a remote medical documentation specialist is matched with a clinician throughout the clinician's shift. And this leads to what is truly unique about Augmedix's approach. Our recognition that doctors' needs are diverse and ever-changing, and we have developed the broadest portfolio of solutions to address those needs. Moreover, we offer customers fungibility across our products, whereby clinicians can switch between different products and service levels to address their varying needs.
At the discretion of the clinician. The draft note is simultaneously delivered to you on our medics medical documentation specialist.
Used for quality assurance and make any necessary edits before clinician sign off.
Go with this comes at a slightly higher price than the base version of go.
Ahmed Exco sits alongside our life product the highest level of service, where a remote medical documentation specialists is matched with a clinician throughout the clinicians shift.
And this leads to what is truly unique about our medics is approach.
Our recognition that doctors needs are diverse and ever changing and we have developed the broadest portfolio of solutions to address those needs.
Moreover, we offered customers fungibility across our products, whereby clinicians can switch between different products and service levels to address their varying needs.
Manny Krakaris: This flexibility provides doctors with a higher level of service when they are shorthanded or dealing with more complex cases, while also allowing them to save on documentation costs for more routine patient encounters. As Augmedix offers solutions from self-service ambient AI to remote human support in one suite, health systems can cover all of their documentation needs under one agreement and seamless integration process. The AI solutions in the market do not have this breadth of offering.
This flexibility provides doctors with a higher touch level of service when they're short handed or dealing with more complex cases, while also allowing them to save on documentation cost for more routine patient encounters.
As log medics offer solutions from self service ambient AI to remote human support in one suite pulse systems can cover all of their documentation needs under one agreement and seamless integration process.
The AI solutions in the market do not have this breadth of offerings.
Manny Krakaris: We see a lot of AI hype and claims made by several AI-only newcomers trying to break into the market. However, generative AI tools are clearly capable of doing much of the heavy lifting when it comes to medical note documentation. However, it takes a great deal more than off-the-shelf generative AI tools to produce accurate and comprehensive medical notes consistently across a wide variety of specialties and patient encounters. When harnessed properly, generative AI has the potential to substantially ease and lower the cost of medical documentation.
We see a lot of AI hype and claims made by several AI owning newcomers trying to break into the market.
Generative AI tools are clearly capable of doing much of the heavy lifting when it comes to medical note documentation.
However, it takes a great deal more than off the shelf generally AI tools to produce accurate and comprehensive medical notes consistently across a wide variety of specialties and patient encounters.
When harnessed properly generative AI has the potential to substantially ease and lower the cost of medical documentation.
Manny Krakaris: As the pioneer in ambient virtual medical documentation, over the past 11 years, we have built a vast repository of domain knowledge pertaining to clinician workflows and medical data sets. This knowledge has enabled us to address multiple care settings, serve more than 50 specialties, provide clinical decision support to the point of care at the right moment, and deliver structured data that positively impacts customers' downstream activities, such as billing. These key points of differentiation, in conjunction with our two-way communication channel to the point of care, provide a significant moat around our business. Now, I'd like to discuss some of the financial highlights of our strong fourth quarter. We delivered a 45% increase in revenue to $12.7 million, ahead of our most recent guidance, driven by a 44% increase in clinicians and service, and net revenue retention of 152%.
As the pioneer in ambient virtual medical documentation over the past 11 years, we have built a vast repository of domain knowledge for 10 gig clinician workflows and medical datasets.
This knowledge has enabled us to address multiple care settings shipped more than 50 specialties provide clinical decision support to the point of care at the right moment and deliver a structured data that positively impacts customers downstream activities such as Billy.
These key points of differentiation in conjunction with our two way communication channel to the point of care provided significant moat around our business.
Now I'd like to discuss some of the financial highlights of our strong fourth quarter.
We delivered a 45% increase in revenues of $12 $7 million ahead of our most recent guidance driven by a 44% increase inclinations in service and net revenue retention of 152%.
Manny Krakaris: Our largest customers are increasingly adopting our high ROI product. Additionally, we demonstrated the scalability of our business model by increasing gross profit by 54% to $6.2 million, a 300 basis point improvement in gross margin year-over-year to 49.3%, and driving meaningful improvement in our adjusted EBITDA and GAAP operating losses. We also bolstered our capital resources through our November equity offering, which generated over $26 million in net proceeds to further solidify our leadership position in our industry by expanding our commercial and engineering teams to enable us to accelerate our growth relative to our previous plan.
Our largest customers are increasingly adopting our high ROI products.
Additionally, we demonstrated the scalability of our business model by increasing gross profit by 54% to $6 2 million, a 300 basis point improvement in gross margin year over year to 49, 3% and driving meaningful improvement in our adjusted EBITDA and GAAP operating losses.
Yeah.
We also bolstered our capital resources through our November equity offering which generated over 26 million in net proceeds to further solidify our leadership position in our industry by expanding our commercial and engineering teams to enable us to accelerate our growth relative to our previous plan.
Manny Krakaris: We have already begun to grow our team with some very strong hires, and as we complete the expansion over the coming months, we expect to realize the payback on this spending later this year and more meaningfully in 2025, which is what we communicated during the capital raise. Our most recent capital raise has enabled us to take a more aggressive approach to a large, underpenetrated market where customers are adopting generative AI technology at an increasing rate. Our established market presence compared to AI-only newcomers will continue to serve us well. We've expanded our sales organization to bolster our efforts to land new enterprises and to further expand within our existing enterprise accounts. We believe now is the optimal time to lean into our advantages and accelerate our growth initiatives to capture market share and exploit our leadership position. This market is still in its infancy.
We have already begun to grow our team with some very strong hires.
As we complete the expansion over the coming months, we expect to realize the payback on this spending later this year and more meaningfully in 2025, which is what we communicated during the capital raise.
Our most recent capital raise has enabled us to take a more aggressive approach towards a large underpenetrated market, where customers are adopting generalists AI technology at an increasing rate.
Our established market presence compared to a I only newcomers will continue to serve us well.
We've expanded our sales organization to bolster our efforts to land new enterprises and to further expand within our existing enterprise accounts.
You believe now is the optimal time to lean into our advantages and accelerate our growth initiatives to capture market share and exploit our leadership position is.
This market is still in its infancy.
I'm confident that our portfolio approach that addresses the major price points within this market will resonate with health care systems and clinicians.
Paul Louis Ginocchio: I am confident that our portfolio approach that addresses the major price points within the market will resonate with healthcare systems and clinicians. With that, I'll now turn the call over to Paul Ginocchio, our Chief Financial Officer, and then we'll return with closing comments. (Inaudible) Thank you, Manny.
With that I'll now turn the call over to Paul Ginocchio, Our Chief Financial Officer, then we'll return with closing comments Paul.
Thank you Manny, let's review the quarter's financial highlights.
Revenue for the three months ended December 31, 2023 was $12 7 million slightly better than our preliminary expectations announced in January.
Paul Louis Ginocchio: Let's review the quarter's financial highlights. Revenue for the three months ended December 31st, 2023 was $12.7 million, slightly better than our preliminary expectations announced in January. Growth was driven by growing adoption of live end nodes by existing customers. Hence its margin for the fourth quarter of 2023 was 49.3%, as compared to 46.3% in the fourth quarter of 2022, and compares to 49.5% in the third quarter of 2023. This 300 basis point improvement year on year in gross margin percentage was mainly driven by growing scale and efficiency and also by our strategic initiative to shift U.S. clinicians serviced in the U.S. to outside the U.S. Gross profit growth was 54% year-on-year.
Growth was driven by growing adoption of live and notes by existing customers.
Gross margin for the fourth quarter of 2023 was 49, 3% as compared to 46, 3% in the fourth quarter of 2022.
And compares to 49, 5% in the third quarter of 2023.
This 300 basis point improvement year on year in gross margin percentage was mainly driven by our growing scale and efficiency and also by.
Our strategic initiative to shift U S. Clinicians served serviced in the U S to outside the U S.
Gross profit growth was 54% year on year.
Total operating expenses for the fourth quarter of 2023 were $10 6 million up 12% compared to the fourth quarter of 2022.
Our gross profit growth outpacing opex growth resulted in a reduction of our operating losses by over $1 1 million year on year.
Adjusted EBITDA was a loss of $3 3 million in the fourth quarter of 2023 compared to a loss of $4 5 million in the fourth quarter of 2022.
Paul Louis Ginocchio: Total operating expenses for the fourth quarter of 2023 were $10.6 million, up 12% compared to the fourth quarter of 2022. Our gross profit growth outpacing OPEX growth resulted in a reduction of our operating losses by over 1.1 million year on year. Adjusted Vida was a loss of $3.3 million in the fourth quarter of 2023, compared to a loss of $4.5 million in the fourth quarter of 2022. Along with this improvement in adjusted EBITDA, we saw a year-on-year improvement in our adjusted EBITDA margin from negative 51% in the year-ago quarter to negative 26% in this quarter. Note, beginning this quarter, we have modified the calculation of adjusted EBITDA to remove the interest income benefit that we are now earning due to the larger cash balance after the equity financing in November 2023, as well as foreign exchange gains and losses, both of which we deem to be non-operating in nature.
Along with this improvement in adjusted EBITA was a year on year improvement in our adjusted EBITDA margin from negative 51% in the year ago quarter to negative 26% in this quarter.
Note beginning this quarter, we have modified the calculation of adjusted EBITDA.
We removed the interest income benefit.
Yeah, we're now earning due to the larger cash balance after the equity financing in November 2023.
As well as foreign exchange gains and losses.
Both of which we deem to be non operational in nature.
All prior amounts have been recast to conform with this current presentation.
Under the prior definition adjusted.
Adjusted EBITDA in the fourth quarter of 2023 would have been slightly better at a loss of $2 8 million.
Cash flow from operating activities was an outflow of 0.9 million in the fourth quarter of 2023 compared to an outflow of an outflow of $4 4 million in the fourth quarter of last year.
Now turning to the full year results.
Total revenue was $44 9 million, an increase of 45% compared to $30 9 million.
Dollar based net revenue retention was 148 per cent for our health enterprise customers compared to 128% in 2022.
Paul Louis Ginocchio: All prior amounts have been recast to conform with this current presentation. Under the prior definition, adjusted EBITDA in the fourth quarter of 2023 would have been slightly better at a loss of $2.8 million. Cash flow from operating activities was an outflow of 0.9 million in the fourth quarter of 2023, compared to an outflow of 4.4 million in the fourth quarter of last year.
Our gross profit increased 54% to $21.5 million.
A 48.0% gross profit margin.
Up from $14 million.
We're a 45.1% gross profit margin.
Operating expenses were $40 3 million compared to $36 3 million.
Adjusted operating expenses, which excludes stock based compensation in both periods grew 11% to $37 8 million compared to $34 2 million.
Paul Louis Ginocchio: Now turning to the full year results. Total revenue was $44.9 million, an increase of 45% compared to $30.9 million. Dollar-based net revenue retention was 148% for our health enterprise customers, compared to 128% in 2022. Our gross profit increased 54% to $21.5 million, for a 48.0% gross profit margin, up from $14 million, or a 45.1% gross profit margin. Operating expenses were $40.3 million, compared to $36.3 million
GAAP net loss was $19 2 million.
Impaired to $24 4 million.
Adjusted EBITDA loss declined to $15 2 million from $19 4 million.
At December 31, 2023, we had $46 2 million in cash and cash equivalents as compared to $21 3 million as of December 31st 2022.
This reflects a $26 3 million in net proceeds from the equity offering in November 2023.
And the $11 8 million of net proceeds from the equity offering in April.
Our weighted average share count for EPS for the fourth quarter was 49.0 million shares common shares outstanding and that reflects a partial quarter of the additional $7 2 million shares we issued in November.
Paul Louis Ginocchio: Adjusted operating expenses, which exclude stock-based compensation in both periods, grew 11% to $37.8 million compared to $34.2 million, gap net loss was $19.2 million compared to $24.4 million, and adjusted EBITDA loss declined to $15.2 million from $19.4 million. At December 31st, 2023, we have $46.2 million in cash and cash equivalents, as compared to $21.3 million as of December 31st, This reflects the $26.3 million in net proceeds from the equity offering in November 2023 and the $11.8 million of net proceeds from the equity offering in April. Our weighted average share count for EPS for the fourth quarter was 49.0 million shares, common shares, outstanding.
It includes the $4 $375 million pre funded warrants.
As of year end, our common shares outstanding plus pre funded warrants totaled 53.0 million.
Assuming all the warrants outstanding our net exercised.
And all of our employee options and Sars, they're both fully vested in the money or net net exercised.
We would have approximately $57 1 million shares outstanding.
Overall 2023 was a significant year for <unk> with robust revenue growth gross margin expansion disciplined expense management and narrowing losses.
Additionally, we meaningfully strengthened our balance sheet during the year, providing the necessary capital for us to execute our updated and accelerated strategic plans.
Capture a significant share of this growing opportunity.
Now moving onto guidance.
Due to the solid finish to 2023 and the trends we were seeing in 2024, we are providing revenue guidance of $60 million to $62 million for the full year of 2024.
Paul Louis Ginocchio: And that reflects a partial quarter of the additional 7.2 million shares we issued in November and includes the $4.375 million pre-funded warrant. As of year-end, our common shares outstanding plus pre-funded warrants total $53.0 million. Assuming all other warrants outstanding are not exercised, and all our employee options and SARs are both fully vested, and in the money, our net exercise, we would have approximately 57.1 million shares outstanding. Overall, 2023 was a significant year for Augmedix with robust revenue growth, gross margin expansion, disciplined expense management, and narrowing losses. Additionally, we meaningfully strengthened our balance sheet during the year, providing the necessary capital for us to execute our updated and accelerated strategic plans and capture a significant share of this growing opportunity.
Turning to the outlook for the first quarter of 2024, we expect revenue in the first quarter to be approximately $13 4 million.
We expect GAAP gross margins to be lower quarter on quarter by about 300 basis points due to temporary costs from both our move to the new building in Bangladesh and a onetime often optimization initiatives in India.
We expect gross margins to resume their upward trajectory in may.
As we have previously stated we anticipate revenue to be modest during the first half 'twenty 'twenty four we do expect go to have a positive contribution later in the year, and then who contribute more materially in 2025.
In terms of modeling operating expenses to reflected the point that the deployment of the equity proceeds.
As we articulated during the November equity raise.
Our plan is to invest an incremental $9 million in 2024 versus our previous previous plan.
Largely in sales and marketing, but also in engineering with a modest amount in G&A.
Combined with an increase in underlying operating expenses associated with the strong current growth of our business. It.
It would be appropriate to expect GAAP operating expenses to be in the mid to upper 50 million range in 2024.
Paul Louis Ginocchio: Now moving on to guidance. Due to the solid finish of 2023 and the trends we are seeing in 2024, we are providing revenue guidance of $60 to $62 million for the full year of 2024. Turning to the outlook for the first quarter of 2024, we expect revenue in the first quarter to be approximately $13.4 million. We expect GAAP gross margins to be lower quarter on quarter by about 300 basis points due to temporary costs from both our move to the new building in Bangladesh and a one-time optimization initiative in India.
At this point I'd like to turn the call back to Manny for closing comments.
Thank you Paul.
We remain committed to playing an essential role in Unburdening clinicians and improving the operating efficiency of health care organizations.
We have built a broad portfolio of products and our positioning Ahmed acts as an effective information the data delivery platform at the point of care.
This unique positioning will help ensure we continue our rapid growth well into the future.
I've never been more excited about the opportunities in front of magnetic and want to thank our team and our customers for helping us deliver another quarter and full year of strong financial results. Thank you very much.
Paul Louis Ginocchio: We expect gross margins to resume their upward trajectory in May. However, as we have previously stated, we anticipate GO revenue to be modest during the first half of 2024. We do expect GO to have a positive contribution later in the year and then to contribute more materially in 2025. As for modeling operating expenses to reflect the deployment of the equity proceeds, as we articulated during the November equity raise, Our plan is to invest an incremental $9 million in 2024 versus our previous plan, largely in sales and marketing, but also in engineering, with a modest amount in G&A. Combined with an increase in underlying operating expenses associated with the strong current growth of our business, it would be appropriate to expect GAAP operating expenses to be in the mid to upper $50 million range in 2024. At this point, I'd like to turn the call back to Manny for closing comments.
With that we'll now open it up to questions operator.
Thank you, ladies and gentlemen at this time well be conducting a question and answer session.
We'd like to ask a question you May press star one on your telephone keypad.
A confirmation tone will indicate your line is in the question queue.
You May press Star two if you would like to remove your question from the queue.
For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key.
Our first question comes from the line of Ryan Daniels with William Blair. Please proceed with your question.
Yeah, guys. Thanks for all the color thus far congrats on the strong performance.
We look to the HCA rollout can you give us a little bit more detail on that regarding if that's just going to be in the emergency department at first or when they go system wide do they anticipate kind of broadening that out into other specialties as well.
Hey, Ryan Good question. So there are multiple thrusts within HCA in terms of rollout. The one that obviously we've been talking about the most is is in the version Department and as you know we're currently deployed in four hospitals at HCA.
Manny Krakaris: Thank you, Paul. We remain committed to playing an essential role in unburdening clinicians and improving the operating efficiency of healthcare organizations. We have built a broad portfolio of products and are positioning Augmedix as an effective information data delivery platform at the point of care. This unique positioning will help ensure we continue our rapid growth well into the future. I've never been more excited about the opportunities in front of Augmedix and want to thank our team and our customers for helping us deliver another quarter and full year of strong financial results. Thank you very much. With that, we'll now open it up to questions. Operator.
And that deployment.
The plan for broadening broadening that deployment is going according to schedule.
So we anticipate that occurring throughout the year.
But beyond that.
We are already seeing deployment of our products in other areas other departments within HCI HCA and there are plans to accelerate that deployment.
Operator: Thank you. Ladies and gentlemen, at this time, we will be conducting a question and answer session. If you'd like to ask a question, you may press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue.
<unk>.
Very soon.
Okay.
Given the operating environment in an emergency department, both kind of the chaos is seeing multiple doctors and non contiguous conversations I assume that once it's built there you don't really have to do a lot of work to take it into other specialties are clinical areas is that fair.
Okay.
Ryan Scott Daniels: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Our first question comes from the line of Ryan Daniels with William Blair. Please proceed with your question. Yeah, guys, thanks for all the color thus far.
Well, sorry, if theres some things that do overlap with other other departments, but there's there's.
Certain things in the emergency department that are unique to the emergency Department.
Being able to slip in and out of different patient ehr's.
As you follow the path of the Doctor would.
Good.
Be the same for Hospitalists for example.
And for nurses, but on the clinical side.
Manny Krakaris: Congratulations on the strong performance. If we look to the HCA rollout, can you give us a little bit more detail on that regarding if that's just going to be in the emergency department at first, or when they go system-wide, do they anticipate kind of broadening that out into other specialties as well? Hey, Ryan, good question. So there are multiple thrusts within HCA in terms of rollout. The one that, obviously, we've been talking about the most is in the emergency department.
It's not that's not the case, it's not necessary they follow a schedule a patient schedule its fixed pre determined before the day starts.
So it's quite it's a it's a very linear workflow. So it's a lot easier to develop a product, which we've done already for the clinical side of the house.
Helpful and then two more quick ones.
Just in regards to the premium go version I think he referred to it as go assist them.
Was that a novel launch based on feedback youre getting from clinicians that they want to still involved with medical documents specialists to make it even simpler for them to just review and sign off or is that something you are proactively putting in the market just to have kind of the broadest product offering of any vendor in the space.
Manny Krakaris: And as you know, we're currently deployed in four hospitals at HCA, and the deployment, the plan for broadening that deployment, is going according to schedule. We are already seeing deployment of our products in other areas, other departments within HCA, and there are plans to accelerate that deployment very soon. And given the operating environment in an emergency department, both the kind of chaos of seeing multiple doctors and having non-contiguous conversations, I assume that once it's built there, you don't really have to do a lot of work to take it into other specialties or clinical areas. Is that fair?
Well everything that we build is based on feedback we get from the market from our customers and prospective customers. So we.
We had heard that.
Ideally everything that comes out of the backend is perfect.
Or that doctors have an infinite amount of time to devote to medical documentation that's not reality.
So there needs to be a solution to address.
Either you know time constraints on the part of the Doctor.
Manny Krakaris: Well, there are some things that do overlap with other departments, but there are certain things in the emergency department that are unique to the emergency department. Being able to slip in and out of different patient EHRs as you follow the path of the doctor would be the same for hospitalists, for example.
Or limitations of the technology when it comes to more complex types of encounters and that led us to.
Develop this particular product, it's a hybrid product where.
It's a flip of a switch the clinician can choose to get some support to the extent they feel it's necessary.
Okay, Perfect and then Paul maybe one for you and I'll hop off in regards to the gross margins I. Appreciate the color on Q1, and some of the onetime items related to India for the full year. However, do you still think of year over year gross margins will be able to expand.
Manny Krakaris: Just in regards to the premium Go version, I think you referred to it as Go Assist. Was that a novel launch based on feedback you're getting from clinicians that they want to still involve a medical document specialist to make it even simpler for them to just review and sign off? Or is that something you're proactively putting in the market just to have kind of the broadest product offering of any vendor in the space? Well, everything that we build is based on feedback we get from the market, from our customers and prospective customers. So we had heard that, ideally, everything that comes out of the back end is perfect, or that doctors have an infinite amount of time to devote to medical documentation. But that's not reality.
Will this kind of transitory push in Q1 and keep them down year over year for the full year. Thanks.
I think on a on a year on year basis.
There'll be up obviously, we'll exit the year.
Better than we wanted in the first quarter, but overall I would expect some gross margin expansion.
Okay perfect. Thank you so much guys congrats again.
Thank you Ryan.
Our next question comes from the line of Elizabeth Anderson with Evercore. Please proceed with your question.
Hi, guys. Thanks, so much for the question and congrats on a nice.
This quarter and outlook.
I guess, maybe just to Ryan's question.
The HCA rollout maybe specific to the emergency Department do you have any current indications.
Manny Krakaris: And so there needs to be a solution to address either time constraints on the part of the doctor or limitations of the technology when it comes to more complex types of encounters. And that led us to develop this particular product. It's a hybrid product where, you know, at the flip of a switch, the clinician can choose to get some support to the extent they feel it's necessary. And then, Paul, maybe one for you, and I'll hop off.
When they're expecting that to start rolling out or is that still sort of influx at this point.
We have a general idea that they wanted to make it happen as soon as possible.
They have a formal process that they go through in terms of evaluation of the initial.
Users and the data from.
Their use of the of the product and they have certain criteria that they'd like us to achieve.
Paul Louis Ginocchio: In regards to gross margins, I appreciate the color on Q1 and some of the one-time items related to India. For the full year, however, do you still think year-over-year gross margins will be able to expand, or will this kind of transitory push in Q1 keep them down year-over-year for the full year? I think on a year-on-year basis, they'll be up. Obviously, we'll exit the year and be better than we were in the first quarter.
And I think we're well on our way to meeting those those goals.
So yeah my best guess is that it's going to happen.
Very soon within within less than a month.
Great to.
And then just on your hiring obviously, you've made a number of hires.
Well, how do you feel about where you are in terms of your $9 million of incremental investment do you have all the people in place.
Ryan Scott Daniels: But overall, I would expect some gross margins. Thank you so much, guys. Congratulations.
These key areas that you're still waiting to hire any more color on that would be helpful.
Operator: Thank you, Ryan. Our next question comes from the line of Elizabeth Anderson with Evercore. Please proceed with your question. Hi guys, thanks so much for the question and congrats on a nice quarter and outlook. I guess, maybe just a follow-up to Ryan's question, in terms of the HCA rollout, maybe specific to the emergency department, do you have any current indications from HCA on when they're expecting that to start rolling out, or is that still sort of in flux? We have a general idea that they want to make it happen as soon as possible. They have a formal process that they go through in terms of evaluation of the initial users and data from their, their, their use of the product.
Yes, we're well underway, but we're not we haven't completed the hires yet so we have a very specific plan of who we're going to hire what physicians, what department et cetera, and I'd say and Paul can chime in on this we're probably about two thirds of the way through that hiring process.
Uh huh.
23 provider count include any go users.
It does not.
Historically.
Included live and notes.
We will factor that in as this year progresses. There are go users.
We're still working to make sure that we can form to how we've done historically done it.
Got it and then in terms of just talking about that I don't really think about.
Elizabeth Anderson: And they have certain criteria that they'd like us to achieve, and I think we're well on the way to meeting those goals. So, you know, my best guess is that it's going to happen very soon, within less than a month. Great, that's awesome to hear.
Margins at maturity for that instead of.
We kept between the sort of premium Virgin should we still think of them being about 60% of it feels like the right way to think about that gross margin profile of those combined.
Manny Krakaris: And then just on your hiring, obviously, you've made a number of hires since the equity raise in the fall. How do you feel about where you are in terms of that $9 million of incremental investment? Do you have all the people in place? [inaudible] Yeah, we're well underway. But we're not; we haven't completed the hires yet. So we have a very specific plan of who we're going to hire, what positions, what department, etc. And I'd say, and Paul can chime in on this, we're probably about two-thirds of the way through that hiring process. And did the 4Q23 provider count? It does not do so.
Got it.
Yeah.
Yes, I would we've stated.
Go would be north of 60% gross margin product.
And we've said historically.
Augment X notes was $55 to $60, so right in that area with where go assist and hopefully over time.
As we scale it gets better.
Okay perfect Super helpful guys. Thanks, so much and congrats again.
Thank you Elizabeth.
Our next question comes from the line of Aaron Watts Mirror with Lake Street Capital markets. Please proceed with your question.
Hey, Good afternoon, guys. This is Aaron on the line for Brooks, So congrats on the strong quarter.
Manny Krakaris: Historically, we've included live video in notes. We will factor that in as this year progresses. But there are no users.
So I guess.
Do you feel that the open platform partnerships of them materialize into likeness and generating some impact with your customers. If you could just give us a sense as to what you've been seeing there that would be helpful.
Manny Krakaris: We're still working to make sure that we conform to how we've done it historically done it. Got it. And then, in terms of just talking about the go assist, how do we think about the sort of gross margin? Should we still think of them as a box?
Sure her.
We haven't deployed anything yet we're still developing the product.
Paul Louis Ginocchio: So, like, the right way to think about that gross margin profile of those combined go and go estimates. Yeah, I would, you know, we've stated that Go would be north of 60% gross margin product. And, you know, we've said historically that Augmedix notes were 55 to 60.
But if you recall the impetus for doing this came from our.
Our customers in particular HCA, so we anticipate that HCA will be.
A source of demand for these.
These particular products.
And they'll be on our platform.
We will book the revenue.
But we haven't completed the integration with <unk>.
Elizabeth Anderson: So, you know, right in that area where Go assists, and hopefully, over time, as we scale, it gets better. Okay, perfect. Super helpful, guys. Thanks so much and congratulations.
For example, with the Southern group, where it's underway that work is underway work is underway with ellipsis are the behavioral health application.
So those are underway they will be deployed this year.
Operator: Thank you. Our next question comes from the line of Aaron Wukmir with Lake Street Capital Markets. Please proceed with your question. Hey, good afternoon, guys. This is Aaron on the line for Brooks.
But.
There's there's no.
There is no response, yet from the market because they haven't been deployed.
Okay. Thanks, Thanks for that clarification, and then I guess as you start beginning to rollout go do you expect any significant product mix shift I guess.
Aaron Wukmir: Congratulations on the strong quarter. Do you feel that the open platform partnerships have been materializing to your liking and generating some impact with your customers? If you could just give us a sense as to what you've been seeing there. Sure. Hey, Aaron.
Just trends that you're expecting throughout the remainder of the year that will be helpful. As well. Thank you.
Manny Krakaris: We haven't deployed anything yet. We're still developing the product. But if you recall, the impetus for doing this came from our customers, in particular HCA. So, we anticipate that HCA will be a source of demand for these particular products, and they'll be on our platform. We will book the revenue, but we haven't completed the integration, for example, with the Sullivan Group. It's underway; that work is underway. Work is underway with Ellipsis, the behavioral health application. So, those are in development. They will be deployed this year, but there's no...
Well you have to I think distinguish between users and revenue.
And from a user perspective, yes, I do expect there to be a shift in favor of go as it grows faster than our other products are our legacy products from a revenue perspective, because the <unk> is so much lower.
Go than it is for our legacy products.
Don't think you'll see a similar.
Realignment of the of the revenue mix.
In 'twenty four.
Gotcha Okay.
Manny Krakaris: There's no response yet from the market because they haven't, Okay, thanks for that clarification. And then, um, as you start beginning to roll out Go, do you expect any significant..., product makeshift? I guess, just trends that you're expecting throughout the remainder will be helpful. Well, you have to, I think, distinguish between users and revenue.
That is helpful. Thanks, guys.
Well, thank you erinn.
Our next question comes from the line of Allen Klee with Maxim Group. Please proceed with your question.
Alan Your line is live.
She has a line on mute.
Hi, I'm, so sorry about that.
Hello.
Huddled up environment.
So there's been some companies that have gotten funding and I'm.
Most of your comments on a bunch of people doing.
Yes.
Two things about that one what is that kind of.
Manny Krakaris: And from a user perspective, yes, I do expect there to be a shift in favor of Go as it grows faster than our other products, our legacy products. But from a revenue perspective, because the ARPU is so much lower for Go than it is for our legacy products, I don't think you'll see a similar, you know, realignment of the revenue mix in 24. Gotcha, okay. That is helpful. Thanks, guys. You
Employ that license growing pricing pressure.
Main players in the industry coming up.
And.
Along with that.
If somebody.
Choose if they have a doctor that Susan.
So are they need to place.
One of your services.
Right.
And more often.
Hum.
Okay.
Hey, Alan Good question. So just broadly in terms of the competitive landscape, yes, there have been several newcomers.
Aaron Wukmir: Thank you, Aaron. Our next question comes from the line of Allen Klee with Maxim Group. Please proceed with your question. Allen, your line is live. Do you have your line on mute?
In the space, which is what we anticipated a well over a year ago.
All that does is basically reinforced the fact that our belief that this is a very large market very attractive market and therefore, it's going to attract.
Operator: Hi, I'm so sorry about that. Hello, the competitive environment, funding, and also your comments on a bunch of, you know, people doing AI. Two things about that one, for the main players coming up, and, and, Along with that, like, If, if somebody, if HDL... If they have a doctor who chooses to go, are they displacing more than one person at a time? More often do you think that's the case, or do you think that's not the case?
Competitors and venture capitalists, who want to you know.
Take advantage of that big opportunity.
Having said that.
The companies that you're describing that have announced large.
<unk> recently.
One in particular, that's probably.
Commanded most of the the airwaves has 65 employees.
Allen Robert Klee: I don't think that's the case. Hey Allen. Good question. So, just broadly, in terms of the competitive landscape, yes, there have been several newcomers in the space, which is what we anticipated well over a year ago. All that does is basically reinforce the fact that, in our belief, this is a very large market, a very attractive market, and therefore it's going to attract competitors and venture capitalists who want to, you know, take advantage of that big opportunity. Having said that, the companies that you're describing have announced large raises recently. You know, one in particular that's probably probably commanded most of the airwaves has 65 employees.
Okay. So.
They still need to do is build the infrastructure that is necessary to support.
Wide scale deployment of their product.
We've made that investment already so we've got the infrastructure in place to deploy widely.
At scale.
And so we anticipate that these smaller companies. These newer companies are going to have to do the same thing we've got to make those investments in infrastructure to be able to scale.
Now the second part of your question.
I'll start refresh my memory issue, Okay. So disposition, yes, so in terms of cannibalization.
Products, we haven't seen that and we don't anticipate it primarily because at HCA in particular.
Manny Krakaris: And so what they still need to do is build the infrastructure that is necessary to support the wide-scale deployment of their product. We've made that investment already. So we've got the infrastructure in place to deploy widely and at scale. And so we anticipate that these smaller companies, these newer companies, are going to have to do the same thing. They're going to have to make those investments in infrastructure to be able to scale. Now, the second part of your question. Sorry, I need to refresh my memory.
There's little live that's that's there to be displaced number one.
So, it's mostly greenfield that HCA I mean vastly greenfield at HCA.
So there's little.
No opportunity for any kind of cannibalization, but more broadly across our all of our customers.
We don't think so we believe that.
Go will cater to a distinct persona and price point in the market.
Manny Krakaris: Okay, so in terms of cannibalization of products, we haven't seen that, and we don't anticipate it, primarily because at HCA in particular, there are few lives that are there to be displaced, number one. So it's mostly greenfield at HCA, I mean, vastly greenfield at HCA. So there's little opportunity for any kind of cannibalization.
Quite different from the persona and price point of live customers.
And we tested this this belief when we launched our notes product a couple of years ago.
Manny Krakaris: But more broadly, across all of our customers, we don't think so. We believe that Go will cater to a distinct persona and price point in the market, which is quite different from the persona and price point of live customers. And we tested this belief when we launched our Notes product a couple of years ago and found that there was virtually no cannibalization of our Live product when we launched Notes at an ARPU that was less than half that of Live. Does that answer your question, Allen?
And found that there was virtually no cannibalization of our life product when we launched notes and they are proven that was less than half that of lives.
Does that answer your question Alan.
Yes. Thank you one last question.
The guidance, where you said that.
The first quarter will be lower by 300 basis points.
Some temporary costs related to bank with us.
India.
Paul Louis Ginocchio: Yes, thank you. One last question. Your guidance where you said that the first quarter would be lower by 300 days, temporary costs related to Bangladesh, and the, um, Would you explain... It's felt for some people that if you're really a technologist... [inaudible] Um, I [inaudible] As we stand today, you know, the vast majority of our revenue is still delivered by Augmedix Live, our legacy, you know, historical premium product. So that's still a human in the loop that we have an MDS that works with the clinician. So we moved, as we've grown, we've moved to a bigger office location in Dhaka, in Bangladesh, and we are sunsetting the old building that we've been in since, I think, 2018, maybe 2017. And so we've got a few months of duplex costs there, rent, transportation, food, so we're running that for two buildings.
Could you explain a little bit.
Sure.
What do you think the impact of these these extra costs that you're taking.
I mean, it's it's Phil for some people, but if you really are a technology company.
Why haven't you been profitable.
Like a lot of cost.
Awesome.
What you are doing it.
Hum.
Could you just help us understand that thank you.
Sure.
As we stand today.
The vast majority of revenue is still delivered by augment its life or our legacy historical premium product.
That's still a human loop that we have a mds that works with the clinician.
So we.
We moved as we've grown we've moved to a bigger office location in Docker in Bangladesh and we are sunsetting the old building that we've been in since the 2018.
Maybe 2017, and so we've got a few months of duplicate costs, there rent transportation food so.
But you know were running that for two buildings.
Paul Louis Ginocchio: We're also, in India, optimizing our service delivery to make sure we have the highest quality service at the best price. And so we're doing that, and there's going to be about three months of overlap that'll end in early May around that initiative. And those two things combined are basically the entire decline in gross margin quarter on quarter.
We are also in India, Oh, I'm, sorry, Yeah in India, optimizing our service delivery to make sure we have the highest quality service at the best price and so we're doing that and theres going to be about three months of overlap that will end in early may are around that initiative and those too.
Things combined are basically the entire decline in gross margin quarter on quarter.
Allen Robert Klee: Okay, thank you very much. Our next question comes from the line of Yanzi from B Riley Securities. Please proceed with your question. Many congratulations on the launch of GO and great to hear they can save up to one hour for doctors. So can you talk about some of the enhancements you recently added to GO in the ambulatory setting and will those enhancements be also added to the ER setting as well, particularly because doctors are facing a non-linear workflow in the emergency room setting? Right, so we're always enhancing our products. We've been releasing new features and enhancements to Go almost on a weekly basis at this point, so there are too many to recount now, but they're all designed to improve the user experience and deliver greater utility to the healthcare enterprise.
Okay. Thank you very much.
Our next question comes from the line of Z with B Riley Securities. Please proceed with your question.
Manny Congrats on the launch I'll go and.
Great for here, they've kind of save up to one hours, while the doctors. So can you talk about kind of longer than you. Originally added to go in the anvil.
Ambulatory surgery Anvil goes enhancement be also added to the E. R staffing as well, particularly vouchers are facing a nonlinear workflow in the emergency room setting.
Alright, so were always enhancing our products we.
We've been releasing new features and enhancements to go up.
Almost on a weekly basis at this point.
And so there are too many to to rig count now.
But they're all designed to improve the user experience.
And to deliver greater utility.
To the health care enterprise.
Allen Robert Klee: And you're right to point out that the products are designed differently between the clinical setting and the acute care setting. For the emergency department, you have a different section in the medical note that you had to create from scratch. It's called the MDS, or MDM, which is essentially the medical decision making that's occurring in the emergency room. And that is not part of the standard note format for clinical, for the clinical visit.
And you're right to point out that the the the products are designed differently between the clinical setting and the acute care setting.
For the emerging Department you have a different section in the medical note that you had to create from scratch, it's called the Mds MDM.
Which is essentially.
It's the medical decision, making that's occurring in the emergency room.
And that.
That is not part of the standard.
Note format for clinical.
Manny Krakaris: So we had to design that, we had to get input from the EHR data that comes in in the form of labs and so forth, we had to be able to input those into the application as close to real time as possible so that the clinician knows at any given moment the updated status of a patient so that they know when to return to that patient to resume their encounter in the emergency department. So these are some of the things that we've been doing. We keep adding to the feature set for each product as we iterate and get feedback from our customers. Remember one of the, maybe the biggest sort of enhancements we've made since we launched Go over the last six months is continuing to add additional specialties. As you heard Manny say, we now service 50 specialties. We'll continue to go deeper in a few key specialties, but we... Go Now obviously supports over 50 specialists. That's been a big improvement over the last four or five months.
The clinical.
Is it.
So we had that we had to design that we had to get input.
From the EHR data that comes in the form of labs and so forth.
We have to be able to input those into the application.
As close to real time as possible so that the clinician knows.
At any given moment the updated status of the patient.
So that they know when to return back to that patient to resume their their encounter any emerging apartment.
So these are some of the things that we've been doing we keep adding to the to the feature set for each product.
As we iterate and get feedback from our customers.
Remember one of the maybe the biggest sort of enhancements. We've made since we launched go or over the last six months has continued to add additional specialties. As you heard me say, we now service 50 specialties.
We continue to go deeper in a few key specialties, but we <unk>.
<unk> now supports obviously over 50 specials, where that's that's been a big enhancement over the last four or five months right.
Manny Krakaris: Right. And that just started, we just released that like a little over a week ago. Got it. Yeah, that's very helpful. Additional card there. Maybe one last one from me. Can you clarify the difference between Go Assist, the premier version versus the nodes, such as the level of involvement from medical documents specialists or AI contribution? In terms of the, the, workflow and the utility, there's very little difference.
And that just really bad like a little over a week ago.
Got it that's very helpful. Additional color there and maybe one last one from me can you clarify the difference it shouldn't go assist the premier worsen versus the nodes such as the level of walnuts from medical documents carefully.
List or AI contribution.
In terms of the.
The the.
The workflow and the utility there is very little difference.
Manny Krakaris: However, Notes will be sunsetted, and it will be replaced by Go Assist. And the reason for that is we want to provide our customers with a seamless experience, allowing them to transition from one to the other on demand as they need it. If you have two independent applications, it's more laborious to go from one app to another.
However.
Notes will be sunset.
And it will be replaced by go assist and the reason for that is we want to provide our customers with a seamless experience.
Allowing them to transition from one to the other on demand as they need it.
If you have two independent applications.
Theirs.
It's more laborious to go from one app to another.
Manny Krakaris: So we wanted to eliminate that duality and just have it appear in one seamless range of services that you get from one application. Got it. Yeah, that's all from us. Thank you. You're welcome.
So we wanted to eliminate that duality and just have it appear in one seamless range of service that you get from one application.
Got it yeah. So that's all from us thank you.
Operator: Thank you, Juan. Our next question is a follow-up question from the line of Allen Klee with Maxim Group. Please proceed with your question. Yes, hi.
Youre welcome. Thank you Juan.
Our next question is a follow up question from the line of Allen Klee with Maxim Group. Please proceed with your question.
Yes, hi, further or the 9 million of incremental spending from the capital raise.
Allen Robert Klee: For the 9 million in incremental spending from the capital raised, is it fair to assume that it's going to take longer to deploy at all and hire? So that should grow kind of incrementally as we go throughout the year rather than, Yeah, yeah. Allen, first of all, we have done a really good job.
Is it fair to assume that it's going to take longer to deploy at all in hiring and different things, but that should grow kind of incrementally as we go throughout the year rather than straight line.
Yes.
We have done a really good job the team here has done a great job of.
Paul Louis Ginocchio: The team here has done a great job of, you know, as soon as we made the decision to raise capital, we started opening some hiring processes. So, we were able to get a little bit ahead of it, but obviously not start it until we had raised the capital. The team's done a great job of hitting the goals.
As soon as we made the decision to raise capital we started.
Opening some hiring process. So we were able to get a little bit ahead of it but obviously not start until we.
We had raised the capital.
Team has done a great job of hitting hitting the goals. Obviously, it's we're hiring quite a few people. So we think we're as Manny said, we're two thirds of that hiring is already complete.
Paul Louis Ginocchio: Obviously, we're hiring quite a few people. So, I think we're, as Manny said, two-thirds of that hiring is already complete with more people coming on. We made some approvals today. We have done some projects here in the first quarter. So, I'd say we're fully, you know, it's going to be fully reflected here in the second quarter with a lot of it reflected in the first.
With more people coming on we made some approvals today.
We have done some projects here in the first quarter. So I'd say, we're fully it's going to be fully reflected here in the in the second quarter.
With a lot of it reflected in the first.
Thank you.
Operator: Our next question comes from the line of Bill Sutherland with The Benchmark Company. Please proceed with your question. Thanks.
Our next question comes from the line of Bill Sutherland with Benchmark Company. Please proceed with your question.
Hey.
William Sutherland: Hey guys, Hey Manny, I just have a product question. I haven't heard about Augmedix Prep in a while.
Hey, guys.
Hey, Manny I just have a.
A product question I haven't heard about augment perhaps in a while I didn't know if that became a significant product for you guys.
Manny Krakaris: I didn't know if that became a significant product for you guys. Yeah, so good question. Bill, we actually just signed an order for more prep at one of our biggest customers. So it seems to be getting some traction. It's still, you know, a fraction of our revenues relative to our other products. But it's there, it does fill a need.
Yeah.
Yeah. So good question.
Bill.
We actually I just signed.
Okay.
In order for more prep at one of our biggest customers.
So it seems to be getting some traction its still a fraction of our revenues relative to our other products.
Its there it does fill a need and we will continue to make it available to the market and I suspect that the demand for it will expand as people become more aware of it.
Manny Krakaris: And we will continue to make it available to the market, and I suspect that the demand for it will expand as people become more aware of it. Okay. A well-timed question, I think.
Okay.
Well timed question I think and then Hum.
Manny Krakaris: And then, um.., on your partnership with Google, maybe update us in terms of the components of that, you know, what's perhaps based on the original, what's the most important aspects of it as that's developed for you guys, and what you kind of hold, you know, your expectations going forward. Thank you. Sure, good question, Bill. So the partnership is really predicated on two principal thrusts. One is technology.
On your partnership with Google, maybe update us in terms of the components of that you know, what's what's perhaps based on the original.
Partnership how that's.
What's what's the most important aspects of it as that's developed for you guys and what have you.
Kind of holds.
And your expectations.
Going forward. Thanks.
Sure. Good question Bill So there's at the partnership is really predicated on two principal thrusts one is technology.
Manny Krakaris: So we use Google technology in our platform. And the second thrust is to go to market.
So we.
Utilized.
Google's technology in our platform.
And the second thrust is go to market.
Manny Krakaris: So Google Cloud is our biggest and most important. We will see you next time, channel partner, if you will. And we've had some very, obviously HCA is the biggest success, but we've had other successes through Google Cloud, and we are actively pursuing some significant opportunities, again, through that relationship. It's been a fantastic partnership, and we see more of that transpiring throughout the course of 24 and beyond. Have you seen the health systems utilizing the Google Cloud Marketplace to purchase your services? Yes, in fact, we have. And there's a whole process you have to go through an administrative process you have to go through to enable that. And we've already done that with Paul Krickman from HCA.
So Google cloud is our.
Our biggest most important.
Channel partner, if you will.
And we.
We've had some very obviously HCA is the biggest success, but we've had other successes.
With through Google Cloud.
And we are actively pursuing some significant opportunities again through that relationship.
It's a fantastic it's been a fantastic partnership.
And you know, we don't we see more of that.
Transpiring throughout the course of 'twenty four and beyond.
Have you seen the health systems utilizing the.
The Google cloud marketplace to.
To purchase your services.
Yes in fact, we have.
And there's a whole process you have to go the administrative process you have to go through to enable that and we've already done that with Paul correct me if wrong HCA I think thats public.
Manny Krakaris: I think that's public, and we're working on doing that with another health system as well. So that's going to be a standard part of that, of that go-to-market strategy. Got it.
And we're working on doing that with with another health system as well so.
That's gonna be a standard part of that of that go to market strategy.
William Sutherland: Great work, guys. Thanks. I appreciate it. Thanks, Bill. There are no further questions in the queue.
Got it.
Great work guys. Thanks appreciate it thanks Bill Thanks Bill.
There are no further questions in the queue I'd like to hand, it back to management for closing remarks.
Operator: I'd like to hand it back to management for closing remarks. Well, I just want to conclude by reiterating that we had a really, really solid 2023. Very pleased with the company's performance and really looking forward to it. We're putting in all the necessary ingredients to ensure that we have a very, very competitive set of products that the market wants to buy. And the market is growing very quickly, because healthcare in particular is adopting new technology at an unprecedented rate, and we believe we are building the right infrastructure and products to take full advantage of it. So I'm looking forward to a very exciting 2024 and beyond for the company. Thank you. Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.
Yeah.
Well.
Just wanted to.
Conclude by reiterating that we had a really really solid 2023.
Very pleased with the Companys performance.
And looking forward really.
We're putting in all the necessary ingredients.
To ensure that we have a very very competitive.
Set of products that the market wants to buy and the market is growing very quickly.
For health care in particular is adopting new technology at unprecedented rate and we believe we are building the right infrastructure and products take full advantage of it.
So I'm looking forward to a very exciting 2024 and beyond.
For the company.
Thank you.
Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation you may disconnect. Your lines at this time and have a wonderful day.