Q1 2024 Augmedix Inc Earnings Call
Ladies and gentlemen, greetings and welcome to the <unk>, Inc. Fourth quarter 'twenty 'twenty full earnings conference call.
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A question and answer session will follow the formal presentation.
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It is now my pleasure to introduce your host Matt Chesler Investor Relations. Please go ahead.
Thank you operator, joining me today are Manny for Karen Chief Executive Officer, and Paul Ginocchio, Chief Financial Officer.
This afternoon, we released financial results for the quarter ended March 31st 2024.
We posted a copy of the press release and Investor presentation on our website at <unk> Dot.
Uh huh.
He will begin our call with prepared remarks to be followed by a Q&A session.
This call is also being simulcast.
It 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 provision.
The Securities Litigation Reform Act of 19.
Any statements that relate to expectations or predictions of future events results or performance are forward statement.
They are based on 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.
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For a list and description of the risks and uncertainties associated with our business. Please refer to the risk factors and management discussion and analysis and our most recent Form 10-K and Form 10-Q filed.
Their needs and exchange Commission and similar disclosures and subsequent reports filed with the SEC.
Also during our call today, we will discuss non-GAAP financial measures, which adjust our GAAP results to eliminate the impact of certain items if.
You will find additional information regarding these financial measures and a reconciliation to GAAP measures in today's press release.
This conference call contains time sensitive information is accurate only as of the live broadcast today May 13 2024.
We disclaim any intention or obligation except as required by law.
Or revise any 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 me.
Thanks, Matt in the first quarter I've met extra revenue by 40% Gen.
<unk> generated <unk> of 143% and achieved higher gross margins.
Financially our quarterly performance was solid.
In line across the board.
It was also a quarter full of activity across the organization as we introduced our AI products and scaled our organization to aggressively pursue its growing opportunity in front of us.
There were several observations worthy.
That occurred during the first quarter.
First.
We have made automatic stow generally available in both the ambulatory setting anniversary departments make us the industry's only provider that offers fully automated generative AI powered medical documentation products in both the care setting.
<unk> in particular.
Larry has really resonated with health systems. It is opening doors for us and we are encouraged by the early feedback and interest.
Second word kinetics go in the clinical setting.
We are participating in a growing number of large pilots.
Third we further broadened our product portfolio with the launch of a premium degenerative AI product called <unk>.
At the discretion of the commission the draft is simultaneously the whether its one asthmatic medical documentation specialists for <unk>.
Use of quality assurance and make any necessary edits.
You can sign up.
Osmatic Bullishness is already generating strong early interest from customers with attractive mix price and efficiency.
Fourth.
We have been and continue.
It worked side by side with our strategic partner HCA healthcare to calibrate and optimize our AI products.
Our pilot program with HCA healthcare has gone well they are now readying bright wide deployment of box medics, though across their membership.
We expect this to be meaningful to our revenue growth.
Finally, we are well underway with putting the proceeds of our November 2023 capital raised to work by expanding our commercial and technical teams.
We have completed approximately 60% of the hiring plan, we put together before that November 2022 range and expect to be substantially complete by the end of summer.
As I look at what we are doing in the industry around us.
It is clear that we are generating an increasing amount of interest with new and existing customers who are evaluating our products.
Our previously announced don't pilot with a fortune 100 healthcare company is progressing well.
Another little pilot with a second Fortune 100 company that is also progressing well.
There are additional conversations with that company that could lead to a deeper partnership.
And we just launched asthmatic stores I mean, it is garnering significant attention and we are already piloting it with three of our largest clients.
At the same time it.
It is clear that healthcare organizations are proceeding methodically evaluate a number of AI options across the industry.
These range from fully automated AI on the solutions for many encounters so less automated.
Cost solutions with trained personnel involved to belabor, a more accurate medical now and ancillary services that further would be burden munitions.
An important subset of encounters.
Organizations are prioritizing these evaluations well trying to strike the right balance of low cost automation and higher quality offerings.
Yes, slide as market adoption is growing at a faster rate than we anticipated.
As the industry is deeply engaged in its evaluation of new documentation solutions.
Since the last earnings call, we have observed an increase in interest broadly in the market, but a slowdown in their purchasing commitments of established solutions such as our life products.
Accordingly, we are adjusting our full year revenue outlook.
I would like to address some developments over the last months that have led us to this decision.
We are continuing to sell cohorts of new light users, although not at the level that we had previously expected a few health systems that slowed down their expansion with us Anthony.
Evaluate AI products in.
Importantly, we still have numerous clients, adding live users as evidenced by our high end or are just not the prior levels. We have seen in recent quarters.
Secondly.
A couple of our larger health systems have chosen to transition some of their cosmetics live users, there's a lower price, but with this product.
It's a clear indication that dose is resonating with existing customers and bolsters our confidence that it will help us grow our AAR are with customers over time.
But near term it results in lower current year revenue expectation.
<unk>.
Vendors that are AI only those who are built on human intervention I only will suffer as customers want a variety of options to meet them, where they are today and where they want to be in the future.
We have products that address their current needs as well as what they anticipate over the next few years.
Finally.
As large organizations carefully evaluate their options revenue scale ups are being extended.
Large organizations transition from pilots to wider and longer term commercial deployment.
This has been factored into our guidance.
The net result of these developments is that we are booking a higher percentage of our revenue from AI based products, which carry a lower <unk>, but a higher gross margin in our established products.
Our company's transition from a tech enabled service company to a SaaS AI first company with human Copilot, that's coming even faster, which we believe will ultimately deliver higher value for our shareholders.
Despite the reduction in our revenue growth trajectory for 2024 relative to our prior expectations.
I'm as confident about our prospects as ever.
We offer health system, the most comprehensive portfolio of documentation product in the industry.
Our products are based on over 10 million patient encounters that we have documented for some of the largest health care systems in the country, including HCA and common spirit, which leveraged the latest AI technology, which we are.
Developed in house and with partners such as Google.
Our market experienced a powerful durable advantage compared to single point solution, new entrance, creating a robust moats around our business.
Our broad based offering give our customers unrivaled flexibility and value.
Customers magnetics to choose the right option for the encounter where the doctor or the study.
They can toggle between offerings on the fly.
For a routine patient encounters augment exco, our fully automated AI documentation solution would be the right choice.
For more complicated encounters or the clinician is pressed for time and prefers not to interact with EHR.
My next door system activates the documentation specialists to review them out for quality assurance and make any necessary edits.
Clinician sign up.
But for more complex and calendars, Andrew our need for additional services are the medics live ensures the most accurate notes and provides access to a virtual extension of the clinicians care team.
Our competitors cannot match this capability and we are convinced we will ultimately emerge as one of the industry's winners because of it.
We expect to see customers move beyond the decision to use a one size fits all documentation solution.
And instead focus on a portfolio of documentation product that ultimately fit each workflow care setting and in calendar.
<unk> is perfectly positioned to address this shift.
Generally the AI tools are capable of doing much of the heavy lifting when it comes to medical documentation.
That's why we're harnessing AI in our solution.
However, Canada.
Isolation is not sufficient to produce accurate and comprehensive medical now consistently and many specialties and patient encounters.
We have already seen frustration with AI only solution and that generates opportunities for us as customers will need to find the right balance of automation and human intervention.
On Madison has built an unrivaled repository of domain knowledge over the last 11 years related to clinician workflows and medical data Center.
This knowledge has enabled us to address multiple care settings served more than 50 specialty goodbyes clinical decision support at the point of care at the right moment and deliver structured data that positively impact customers operational efficiency as well as downstream activities such as billing.
These key points of differentiation provided significant moats around our business.
The recent industry events have reinforced my confidence.
In augment it.
With that I'll now turn the call over to Paul Ginocchio, Our Chief Financial Officer.
And I'll return with closing comments.
Paul.
Thank you Manny, let's review the quarter's financial highlights.
Revenue for the three months ended March 31, 2024 was $13 5 million up 40% from the $9 6 million in the first quarter of last year.
Growth was driven by the adoption of live notes by existing customers.
Gross margin for the first quarter of 2024 was 47, 1%.
As compared to 45, 6% in the first quarter of 2023, and 49, 3% in the fourth quarter of 2023.
This 150 basis point improvement year on year in gross margin percentage was mainly driven by our growing scale and efficiency.
And also by a strategic initiative to ship U S service clinicians to outside the U S.
The sequential decline was due to temporary costs that we incurred in our overseas operations related to the move to a new building in Bangladesh and a onetime optimization initiative in India.
Although the impact to gross margin in the quarter was slightly less than we had anticipated.
We expect gross margins to be closer to fully recovered in may.
Total operating expenses for the first quarter of 2024 were $12 7 million.
$2 2 million compared to the fourth quarter of 2024.
As we talked about in the November 2023 capital raise.
Going to add approximately $9 million to annual expense on top of the previous plan.
Largely concentrated in additional sales and engineering talent.
And we are executing on that plan.
In fact, we're roughly 60% complete with our hiring plan.
In terms of profitability or loss from operations increased to $6 four.
4 million from $5 1 million in the first quarter of 2023 due to the additional hires posted November capital raise.
Adjusted EBITDA was a loss of $5 1 million in the first quarter of 2024 compared to a loss of $4 3 million.
Cash flow from operating activities was an outflow of $8 2 million in the first quarter of 2024 compared to an outflow of $6 2 million in the first quarter of last year.
As of March 31, 2024, we had $37 3 million of cash and cash equivalents.
As compared to $46 2 million as of December 31, 2023.
Our weighted average share count for EPS for the first quarter was $53 1 million common shares and pre funded warrants outstanding.
Assuming all other warrants outstanding our net exercise and all of our employee options and Sars are fully vested in the money or net exercised we would have approximately 56.0 million shares outstanding currently.
Yeah.
Now moving onto guidance.
Which is based on our current expectations and reflective of the factors arising after the last earnings call that Manny described earlier.
For the second quarter of 2024, we expect revenue to be up slightly sequentially from.
From the first quarter as customer expansions are being offset by the product mix changes Manny spoke about earlier.
We expect GAAP gross margins to increase from the first quarter of 2024 by 50 to 100 basis points.
For the full year of 2024.
We expect to generate approximately $52 million to $55 million of revenue.
This compares to our prior expectation of $60 million to $62 million.
The change in full year revenue guidance, which is $7 5 million at the midpoint.
It was primarily a result of two developments that we observed following our last earnings call.
Lower expectations for <unk> bookings.
And current live users moving to augment exco assist.
As go and go assist recently launched their ramp up is still in the early stages to offset the impact of these two factors.
As we have previously stated we anticipate revenue to be modest during the first half of 2024, we.
We do expect go to have a positive contribution later in the year and the new contribute more materially in 2025.
Approximately 80% of our change to our revenue guidance relates to augment its life.
We now expect to exit 2024, with a higher percentage of our revenue related to our AI products Ahmed Exco and Ahmed exco assist than our previous expectations.
We continue to anticipate total GAAP operating expenses to be in the mid to upper $50 million range in 2024.
We still expect to exit 2025 at operating cash flow breakeven before net interest expense, we have sufficient runway to get there.
At this point I'd like to turn the call back to Manny for closing comments.
Thank you Paul.
Our industry is in the process of adopting new technology generative AI at an unprecedented pace.
This is a reversal of the health care industry history of latent technology adoption.
The pendulum has certainly swung to the other extreme.
We welcome this change and it will accelerate the proliferation of solutions such as those offered by all metrics.
In their hot pursuit of generative AI solution, we believe many healthcare systems will discovery disparity between the promise of Gen AI and its actual performance for a meaningful portion of patient encounters.
This reason, we offer a range of products that meet customers, where they are today and where they want to be tomorrow.
I am confident about our market positioning and look forward to continued progress in our push to lead this market.
I appreciate the dedication of our team and the support we received from our customers and shareholders.
Thank you.
With that.
Speaker Change: I'll turn it over to the operator for questions.
Thank you Les.
Ladies and gentlemen, we will now be conducting a question and answer session.
If you'd like to ask a question. Please press star and one on your telephone keypad.
Confirmation tone will indicate your line is in the question queue. You May press star two if you'd 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 Keith.
Speaker Change: Ladies and gentlemen, we will wait for a moment, while we poll for questions.
Our first question is from the line of Ryan Daniels with William Blair. Please go ahead.
Yeah, guys. Thank you for taking the questions. Paul first a quick clarification for you you mentioned, 85% of the roughly 12% guidance reduction in sales is due dogmatics live is that the movement from.
Ryan Scott Daniels: Life to go or is it just lower bookings I just want to make sure I fully understand that.
Yes.
80% of that change is due to both lower bookings and the move from live to assist those.
Those two account for the 80%.
And then what's the remainder I guess, if the two things you called out or kind of the majority of it what else is there that's bringing the guidance down.
We're also now assuming a faster migration of notes, which is the sort of more established.
Ryan Scott Daniels: To go assist in that price point that <unk> is lower and so thats. The remaining 20% got it just wanted to make sure.
And then can you talk a little bit about how quickly clients can make that conversion. So I'm curious if it is something that comes up upon renewal or if it's monthly or if you just allow them to kind of move that AD hoc. So what kind of visibility you have on that potential transition.
Speaker Change: Sure Ryan.
Depending on the contract for a vast majority of the contracts they have a 90 day.
Our ability to make that migration.
Of course, we're going to do whats right for the customer and maximize their ROI and not try to optimize our revenue near term with decline, we're going to optimize the ROI for the customer long term because we want to obviously make keep customers happy and do what's right for them. So we're trying to.
Do what's right for the customer so we have a sort of 90 day visibility on a migration from live to notes or sorry go assist.
Okay.
Alright, just to add to that sorry, Ryan from from notes to go assist as well.
Couple of transitions.
Okay.
And then.
How are you thinking about the cash burn and investments it sounds like youre, not making any changes to that despite.
The headwinds Youre seeing here that were unexpected so I think one of the questions will just be related to the cash burn related to the investments youre, making in the market.
Your conviction and your ability to get to that cash flow breakeven number. So can you dive a little bit deeper on all of those elements for us.
It's a good question Ryan so right now.
We both pointed out during the prepared remarks, we've completed about 60% of the hiring that we had planned to complete.
And we're going to calibrate very carefully.
The rest of those those potential hires.
In relation to how the market reacts to our product offering and the pace at which they adopt the new products.
So we're not going to be blind to this we're not going to be.
We're not going to be dogmatic about our previous hiring plan.
And we'll make whatever adjustments are necessary as warranted by market conditions.
Speaker Change: And Brian we did say mid fifties to high <unk>, so that gives us.
That range gives us some wiggle room to begin with and then obviously we will.
Make adjustments as needed.
Okay, Okay, great I'll quit hogging the call hop back in the queue. Thanks.
Speaker Change: Thank you.
Next question is from the line of Elizabeth Anderson with Evercore ISI. Please go ahead.
Hi, guys. Thanks, so much for the question.
Was wondering if you could give us a little bit more color on decision delays or maybe it's too soon or are you seeing it go for typical like length is there a certain win rate or are you seeing question. It's too soon in this process to really have good visibility on that right now.
Yes.
Good question I think there's a couple of factors going on here I think theres been a rush to try.
AI solutions from a variety of providers as you probably know there are 42 companies in this space right now that are offering generally the AI medical documentation solutions.
So there's a lot of noise in the market.
And a lot of trials that are ongoing and I think until those trials kind of run their course.
Providers are going to be somewhat.
Speaker Change: Reluctant to commit.
Wide scale.
Q any one particular solution or vendor you would be kind of risky to do that in my view and based on discussions I've had with some customers.
To commit at this early stage and so there we're in a period.
Speaker Change: Trial.
And the companies the vendors are trying to demonstrate.
Speaker Change: Their capabilities and prove that they could deliver on the promise of those product offerings.
And providers are going to be evaluating them and until they complete that evaluation I don't expect that there's going to be massive.
Large.
<unk> of any particular solution.
Okay, that's helpful and maybe to over to Susan.
Susan: Relative bright spot.
Susan: Nice bright spot in the quarter.
The HCA ramp how are you guys thinking about that as it goes as a kind of like radically across the year or are there certain ways that we should consider as we're thinking about that contract starting up.
Well.
The plan was and still is too.
Deploy the EDI solution <unk>.
Across their entire enterprise I think it is roughly a 184 hospitals.
Susan: So that's the plan.
The pace at which is going to depend on a few things. One of course is when a green light to start the mass adoption part of that is dependent on them.
Make sure they've got the right change management programs in place at each hospital.
To accept this and the other the other factor is there transition from.
Susan: Meditech magic EHR to expand.
Susan: And that's something that.
We'll likely have an impact on.
Our pace of deployment within HCR <unk> EHR.
Susan: ER departments.
We don't have a great deal of visibility on how quickly <unk>.
<unk> is going to be deployed across those 184 hospitals I know that ACI wants to have it happen as soon as possible, but theyre not in complete control over that and Meditech has a lot to do with it.
And.
My sense is that right now the target is to have that happen sometime in the fall.
But again I don't have precise details on when exactly.
Which hospitals are going to be deployed are going to be transitioned from magic expanse.
Got it that's helpful and maybe one last one from me in terms of the 2026 EBITDA number is that expectation still similar given what you were just saying about the opex or are you sort of.
Yes or no.
He was with its fall.
2026.
EBITDA number I didn't quite understand that.
Yeah.
Terms are being like having that be profitable in 2026 is that still sort of on the table or you can say that not to at this point.
Sure.
Exiting.
25 of cash flow breakeven in 2008, 2026 EBITDA would be.
At breakeven or slightly positive.
Oh, thank you.
Thank you. Our next question is from the line of Brooks O'neil with Lake Street Capital markets. Please go ahead.
Hey, guys. This is Aaron on the line for Brooks. This afternoon, thanks for taking our questions.
I'm curious on now that go assist has been launched you had some commentary, but how do you sort of see the customer adoption sort of developing during the during the remainder of the year here.
Well, we've got some really strong.
Speaker Change: Requests from some of our bigger customers for the product.
So we feel pretty good about its prospects.
These inbounds are coming from some of our biggest customers.
So we're very encouraged by the initial.
Signals, we're getting from the market for.
For that particular product and I think it's in reaction to expectations that were set.
Perhaps unrealistically high for the pure AI products that are being offered by some of our competitors.
So we feel that we're very well positioned to take advantage of that.
Asperity between those expectations and reality.
The great thing about.
Customer interest and unmet exco and augment exco assist us that just opens up a much wider segment of their physician population than we had access to before and that allows us deeper penetration and obviously ultimately.
Better revenue overtime.
Great No absolutely that's very helpful. And then just kind of wondering sort of your engagement what what.
Speaker Change: What does that sort of look like with with other large health systems around the U S and I guess, how significant has that changed.
In particular with go but also your other key products as well.
Well as I mentioned before.
Speaker Change: A prior question.
There are 42 companies that are in this space now so theres a lot of noise in the marketplace and our job is to make sure that our voice is heard above all the clutter.
Well, we have going for us of course is 11 years of experience in this sector more than anybody else.
And we've got relationships with five of the top five of the 10 largest health care systems in the U S.
So we.
We have a good presence people know about us.
We have credibility with partners like Google and HCA.
As opposed to the vast majority of these other companies that are trying to get into this space. So that's helped us kind of rise above the clutter and we're getting good at bats, I'd say.
Speaker Change: Today.
Speaker Change: Relative to where the situation might've been six months ago.
Speaker Change: On these early pilots.
Great No. That's helpful. Thank you Manny.
Thank you.
Speaker Change: Our next question is from the line of one G with B Riley Securities. Please go ahead.
Good morning.
Thank you for taking our questions.
So when we heard there are some new AI loss can introduce to Connecticut, Utah.
Help us understand the impact on the AI laws, all adoption automatic Thursday, and do they have different degrees of impact Osmatic lives of masco.
Speaker Change: Okay.
Hey, Jan Thank you that's a good question, yes, we are familiar with.
The initial raft of regulations that are coming out.
And it's.
It's important to draw the distinction between what we do which is provide clinical decision support.
From what the regulations are trying to cover which is clinical decision, making so we are not classified as a clinical or medical device, which fall under those regulations. We provide support in the form of information to help clinicians make decisions that's a very.
Important distinction that we adhere to very in a very disciplined fashion. So that we do not fall under those regulations.
Got it and maybe a clarification here so how long does it take for customers too.
Speaker Change: Valuate. This medical documentation services you may have touched on this but so what has changed in the last remounted cause them to look into other offerings at the same time.
Well that's a good question and it varies as you can imagine across the board it depends on.
Speaker Change: How centralize the decision making is within a particular enterprise.
Health care prices, a very centralized others, a very decentralized and so there's many points of decision making that occur in the decentralized organization and you could have situations, where and I think this is going to be representative of the market going forward where.
Speaker Change: You'll have multiple vendors within the same end.
Speaker Change: Same large enterprise.
And that will not be unusual, especially considering the fact that.
Virtually everybody in our space is a single point solution provider with the exception of Osmatic so to the extent a.
The enterprise requires more than one type of solution.
We have a decent chance of being in that solution mix.
Speaker Change: Got it and then a follow up here is allensworth visibility of this offering migration patterns of customers. One time, we've got some clearer picture.
The customer will come back with all the metrics or customers, where it makes the decision on which services are true.
It's Paul.
First were.
Our own customers are just switching products from the higher our product line to the more AI based product augment exco assist.
We're also seeing.
A number of our health systems slowdown on the additional investment in life as they evaluate other AD products. So maybe that's exactly what you're asking about.
I think in a period of three to six months they'll they'll try out.
Air product other AI products, and then determine what their product mix looks like going forward I think during this period of AI pilots.
Live is just being held.
Speaker Change: Being held and not further investment made once we get beyond the pilot and health systems have more information about the capabilities of just pure AI versus AI in humans and live I think then we can see what the project mix will look like on the other side and I think there's still a place for life to.
Growth is just going to have a different mix than we had in the past.
Speaker Change: Got it that's all I have thank you.
Thank you. Our next question is from the line of Allen Klee with Maxim Group. Please go ahead.
Allen Robert Klee: Yes, hi, if I'm alive user.
I would stick with lie versus.
Switching to augment its go assist and then.
What's the relative price difference for the customer.
I know you can't say the exact but just.
Kind of Rockwood.
Thank you.
Hey, Alan it's Manny good question. So the motivation for a clinician to stay with live is because life has a much more impactful is much more impactful to the doctors.
Daily life number one it will deliver the highest quality note possible simply because it's synchronous and real time, and therefore any ambiguity that occurred during the ambient conversation, which is the only input that's available for a pure AI solution.
That limitation doesn't exist with live so you get immediate.
Response to any ambiguity that might occur during that ambien conversation that get reflected in the medical note. So the medical note is a very high quality number one number two.
The fact that there is a medical documentation specialists attached to the clinician means that the clinician can rely on that medical documentation specialists for ancillary services that are not available with a pure AI solution and those services include orders.
Referrals.
Coding suggestions and some <unk>.
<unk> in the form of clinical decision support.
So theres a lot more of that comes with live than you can possibly get with a pure AI solution and the price differential between those products is substantial.
Allen Robert Klee: The live solution.
Allen Robert Klee: The ARPA is roughly $2400 per month per doctor and for the pure AI solution or the one that has go assist for example, they're going to have our booze anywhere from $4 $300 sorry too.
To $600.
So.
There is a big big difference big drop in price, if you don't need that full time.
Human support.
Okay. That's helpful. Thank you and then.
I think I heard you say that you thought revenue might.
It might be up a little sequentially in the second quarter.
But then.
Okay, but then we're basically starting from that lower base going forward is where.
Allen Robert Klee: I guess the impact is going forward for the second half I guess.
The way to think of it.
Speaker Change: Yes, Alex it's a good way to think about it for because we have the 90 day notification.
Most of the any transitions from live to nodes are going to largely happened in the back half of the year. So we will see a little bit of increase.
Speaker Change: Maybe one or 2% from the first quarter into the second quarter and then thereafter it may it may decline Q on Q.
Wait I'm, sorry, you said that <unk> did you say <unk> might be down versus <unk>.
Greg If you look at the guidance range.
Yes, <unk> versus to Q could be down as customers transition from higher RPC products to lower our food products.
Greg: That's a natural.
Occurrence in the numbers and it's just the shift in that product mix will have that happen.
Speaker Change: Okay got it.
Thank you so much appreciate our global yes, thanks, Alan I'll go to offset that is obviously to penetrate those clients deeper and that's the plan.
Okay.
Thank you very much.
Speaker Change: Thank you.
Our next question is from the line of Bill Sutherland with the Benchmark company. Please go ahead.
William Sutherland: So hey, Manny Hey, Paul.
William Sutherland: Just thinking about the math here a little bit.
And.
Youre confidence too.
Still get to the bogey cash.
William Sutherland: Cash breakeven.
25.
And then just looking at the maps here with the <unk>.
You.
There is a growth rate, we can think about.
That.
I mean.
William Sutherland: It's not that you're not growing.
Go with <unk> right now.
William Sutherland: That's not the $7 5 million Delta.
It's the mix shift in both cases.
And so.
William Sutherland: I'm thinking you end up.
In terms of the EBITDA loss this year kind of in the same place.
On that kind of revenue Delta is that a good way to think about it.
We're not guiding to EBITDA license I think I think you're generally in the right ballpark or Zip code.
But.
We didn't guide to that but I don't.
I think thats not a bad way to think about it.
Remember, we said, we're going to exit 2025 and <unk>.
<unk> breakeven.
We can still have an adjusted EBITDA loss.
And obviously, our we have good working capital.
Fundamentals, so we can be a little bit.
Lossmaking on adjusted EBITDA, and still be cash flow breakeven as we exit 2025.
William Sutherland: Sure.
And then just one quick one on the quarter itself higher revenue per clinician.
Was that mix.
William Sutherland: Yes.
So just a little bit more lives.
A little bit more live in the first quarter correct.
Okay.
William Sutherland: And then.
Many HCA any sense of how the clinical adoption will go.
Yeah.
Settings.
We're optimistic we're in there discussing just that with the with their team today.
So.
William Sutherland: If you recall.
From the HIMSS conference back in April.
I was on a panel with.
One other point people from HCA along with.
One of the executives from Google Cloud.
This business unit.
And the person from HCA was.
We're very positively inclined and enthusiastic and his support of.
Our product across the board.
And.
Yes, so just a lot of encouraging comments.
That I think.
Our public. So you can you can look into that panel conversation.
Here for yourself, how they feel about it.
Any augment extend our product.
Yes.
<unk> read about that.
Speaker Change: Great. Okay. Thanks, guys I appreciate it thanks, Thanks Bill.
Thank you Lee.
Ladies and gentlemen, this concludes our question and answer session I would now hand, the conference over to Manny crackers for closing comments.
Thank you operator, and thanks everybody for for.
For participating in this earnings call.
We will keep you updated.
With any relevant information as it becomes available to us. Thank you and appreciate your support.
Right.
Speaker Change: Thank you.
<unk> Inc. Is now concluded. Thank you for your participation you may now disconnect your lines.
Yeah.
[music].
Okay.