Q4 2024 MultiPlan Corp Earnings Call

February 25, 2025

After today's prepared remarks, we will have a Q&A session to register a question. Please press star followed by one on your telephone keypad and see withdraw your question it still followed by <unk>.

Sean: I would now like to hand, the call over to Sean I guess, it assistant Vice President Investor Relations. Thank you. Please go ahead.

Speaker Change: Thank you Darryl.

Speaker Change: Good morning, and welcome declared a fourth quarter 2024 earnings call. Joining me today, its credit Felton, Chief Executive Officer, and Dr. Garrett Chief Financial Officer.

Speaker Change: It is being webcast and can be accessed through the Investor Relations section of our website at <unk> Dot com.

Speaker Change: During the call we will refer to the supplemental slide deck that is available on the Investor relations portion of our website along with the fourth quarter 2024 earnings press release issued earlier this morning.

Speaker Change: Before we begin a couple of reminders, our remarks and responses to questions. Today may include forward looking statements. These forward looking statements represent managements beliefs and expectations only as of the date of this call actual results may differ materially from these forward looking statements due to a number of risks a summary of these risks can be found on the second page of the <unk>.

Speaker Change: Most of my deck and a more complete description on our annual report on Form 10-K, and other documents, we file with the SEC.

Speaker Change: We will also be referring to several non-GAAP measures, which we believe provide investors with a more complete understanding of clarity underlying operating results.

Speaker Change: An explanation of these non-GAAP measures and reconciliations to their most comparable GAAP measure can be found in the earnings press release and in the supplemental slide deck with that I would now like to turn the call over to Travis Travis.

Travis Travis: Thank you Sean good morning to all of you on the call and welcome to our first call as clearances.

Speaker Change: So the theme repeatedly that we would not choose to rebrand as a shiny lou or we needed to earn the right to brand as a health technology company.

Travis Travis: I believe we've done just that and we will explain why today.

Travis Travis: During my first year anniversary with the company and it's been an exciting and eventful.

Came here, believing we had great class products to serve health care incredible so associates and deep core values of character and integrity.

Travis Travis: I was right.

Travis Travis: Also believe we can transform the company building on those core assets to better serve our long term clients and create new innovative products to serve a broader set of constituents across the healthcare continuum.

Travis Travis: I've never been more excited or committed in my career.

Travis Travis: We have an incredible opportunity here to serve the mutual interest of affordability.

Travis Travis: Transparency for all our quality care across a broad set of the continuum.

Travis Travis: I am gratify I'm humbled by the talented and experienced leadership team that we've assembled here in a way the company has rallied around clear it says it all.

Travis Travis: Collected 2030 vision I'm also very pleased by our progress which is marked by real milestones I'm, even more excited and optimistic for what's to come.

Travis Travis: Set the context for my optimism about <unk> future.

Travis Travis: I'll begin by sharing our view of the state of health care.

Travis Travis: Third to this vision and mission address what we believe are some of the most important issues confronting health care.

Travis Travis: I will then talk about the specific actions, we have taken and successes we have achieved.

Travis Travis: We have been busy we were operating with urgency and we're getting things done.

Travis Travis: To summarize our financial outlook before turning it over to Doug for a detailed discussion on our transformation program.

Travis Travis: 'twenty 'twenty four financial results and 2025 guidance.

Travis Travis: Healthcare remains a highly competitive environment with escalating costs and demand for critically needed services.

Travis Travis: Never has never been more data at our disposal the challenges.

Travis Travis: Challenges related to affordability cost and quality persist.

Travis Travis: Last decade was focus on interoperability and I think the next will get focused on transparency and technology and insights.

Travis Travis: Central to addressing health care affordability cost and quality.

Travis Travis: Data is abundant and problem admiration as rapid a clear and actionable insights are needed to make a real impact.

Travis Travis: That is what we bring and clarity and our vision will allow us to create even more value for our clients in the future.

Travis Travis: I've said this many times ive seen it in action.

Travis Travis: And mutual interest between providers payers employers and patients existing health care providers wants to provide access to care serve patients generate quality outcomes and receive fair payment there.

Travis Travis: Payers want to manage risk provide access to networks serve employers and cheap fair pricing.

Travis Travis: Employers want to manage and lower cost, while increasing benefits for their employees.

Travis Travis: At the intersection of that mutual interests are insights from data and full transparency.

Travis Travis: Rebrand and investments now and in the future will position us at this center.

Travis Travis: Better information will yield better decisions reduce cost and more efficient markets. We will continue to provide solutions that focus on that access to care their affordability platform based transparency service quality and health plan cost optimization.

I've said this many times ive seen it in action.

Think of mutual interest between providers payers employers and patients exists in health care.

Providers want to provide access to care serve patients generate quality outcomes and received fair payment players.

Travis Travis: As we continue this transformation transformational journey.

Travis Travis: You'll hear me talk about the foundation the vision.

Payers want to manage risk provide access to networks serve employers and achieve fair pricing.

Travis Travis: Turn the proof and the way up and forward.

Employers want to manage and lower cost, while increasing benefits for their employees.

Travis Travis: 2024 was largely about laying the foundation for the company. So we can better serve our clients position for what is to come in 2025 and achieve our vision 2030, we have been laser focused on creating clarity of purpose alignment of talent and focus unclear measures of success.

At the intersection of that mutual interests are insights from data and full transparency.

Rebrand and investments now and in the future will position us at the center.

Better information will yield better decisions reduce costs and more efficient markets. We.

Travis Travis: Along with our process and fit for growth initiatives.

We will continue to provide solutions that focus on that access to care fair affordability platform based transparency service quality and health plan cost optimization.

Travis Travis: Does make real and meaningful progress towards this transformation.

Travis Travis: During 2024.

Travis Travis: We have clarified our purse of purpose and launch vision 2030, it's weird technology data and insights a company focused on affordability and transparency and quality, we're making major investments in our technology to support our vision, which we will discuss.

As we continue this transformation transformational journey.

You'll hear me talk about the foundation the vision the turn.

Turn the <unk>.

Bruce: Bruce and the way up and forward.

Travis Travis: We reenergized and invigorated, our associates and management team. We also welcomed just this week, our very first chief AI officer, noting our commitment to talent and technology. The team is operating at a high level with more urgency in impact.

Bruce: 24 was largely about laying the foundation for the company. So we can better serve our clients positioned for what is to come in 2025 and achieve our vision 2030.

Bruce: We have been laser focused on creating clarity of purpose alignment of talent and focus unclear measures of success.

Travis Travis: We've improved our forecasting operating and finance processes with clearer kpis to ensure we are on target and course, correct where appropriate.

Bruce: That along with our process and fit for growth initiatives have helped us make real and meaningful progress towards this transformation.

Travis Travis: All of US, we'll better insights to the business allow us to provide more predictable results and reliable communications going forward.

During 2024.

Bruce: We have clarified our purpose the purpose and launched late in 2030, we're technology data and insights a company focused on affordability and transparency and quality, we're making major investments in our technology to support our vision, which we will discuss.

Travis Travis: We've added a world class corporate affairs team welcomed a chief growth officer, and completely reset and refocused our market segment leaders to aggressively grow in existing markets and market segments and launch the full breadth of our solutions and new market segments, which will significantly expand our total addressable market.

Bruce: We have reenergized and invigorated, our associates and management team. We also welcome just this week, our very first chief AI officer, noting our commitment to talent and technology. The team is operating at a high level with more urgency and impact.

Travis Travis: This foundation has this transformation has created a foundation that is now fit for sustainable growth.

Bruce: We've improved our forecasting operating and finance processes with clearer kpis to ensure we are on target and course, correct where appropriate.

In line with all of this 2024 was also about.

Travis Travis: Deep reflection and recasting the brand vision of clarity going forward.

All of us will yield better insights to the business allow us to provide more predictable results and reliable communications going forward.

Travis Travis: We're proud of a 40 plus year history of the company, but now it's a time to expand our impact in health care market and build upon that success.

Bruce: We've added a world class corporate affairs team welcomed the chief growth officer, and completely reset and refocused our market segment leaders to aggressively grow in existing markets and market segments and launch the full breadth of our solutions and new market segments, which will significantly expand our total addressable market.

Travis Travis: Having now earn the right to rebrand the company, we were better able to reflect the value that clearer to provide for the health care ecosystem.

Travis Travis: Able to US we are committed to modernizing our technology platform.

Travis Travis: As evidenced by our Oracle partnership to ensure we have a robust and scalable technology infrastructure cloud enablement and the best development tools. We are working on our data architecture to ensure we can efficiently serve our existing clients with more value, adding product enhancements and use the most cutting edge capabilities.

Bruce: This foundation has.

Bruce: This transformation has created a foundation that is now fit for sustainable growth.

Bruce: In line with all of this 2024 was also about.

Bruce: Deep reflection and recasting the brand vision of clearance of going forward, where.

Travis Travis: <unk> like AI to launch innovative products aimed at transparency and quality.

Bruce: We're proud of our 40 plus year history of the company, but now a lot of time to expand our impact in health care market and build upon that success.

Travis Travis: We will also API D var platform to serve health care more holistically and rapidly bring new applications to market to serve the evolving needs of health care.

Bruce: Having now earn the right to rebrand the company, we are better able to reflect the value that clearer to provide for the health care ecosystem.

Travis Travis: We have improved our affordability offerings launched our complete view platform for the provider segment and have made great traction with health plan optimization capabilities and insights and the employer and broker segment.

Bruce: Enabled us we are committed to modernizing our technology platform.

Bruce: As evidenced by our Oracle partnership to ensure we have a robust and scalable technology infrastructure cloud enablement and the best development tools. We are working on our data architecture to ensure we can efficiently serve our existing clients with more value, adding product enhancements and use the most cutting edge capabilities.

Travis Travis: All of this will allow us to bring more value to more segments like payers providers and employers government brokers and consultants and strategic partners.

Travis Travis: I have a point in 2025 as the term for clearances, we will start to see demonstrable improvement in value created from the foundation as we proceed we.

Bruce: <unk> like AI to launch innovative products aimed at transparency and quality.

Travis Travis: We have underlying business process for success, and we're operating with rigor and discipline, which drives consistency of results and predictability and how we'd call and deliver a number.

Bruce: We will also API enable our platform to serve health care more holistically and rapidly bring new applications to market to serve the evolving needs of health care.

Travis Travis: We have increased our number of addressable markets and aligned internal governance structures to support growth within these new market segments.

Bruce: We have improved our affordability offerings launched our complete view platform for the provider segment and have made great traction with health plan optimization capabilities and insights and the employer and broker segment.

Travis Travis: To fill these markets, we will have a product pipeline with thoughtful go to market plans, we have the necessary corporate affairs and government relations team to make sure we educate stakeholders in their roles and ecosystem are well understood.

Bruce: All of this will allow us to bring more value to more segments like payers and providers employers government brokers and consultants and strategic partners.

Travis Travis: In addition declared as long successful history of commenting waste fraud and abuse, our transformation will help us accelerate our mission to improve improve affordability transparency and quality.

Bruce: I have 2025 as the term for clearances, we will start to see demonstrable improvement in value created from the foundation as we proceed we.

Bruce: We have underlying business process for success, and we are operating with rigor and discipline, which drives consistency of results and predictability and how we call and deliver a number we.

Travis Travis: We have laid the foundation reset division and started the turn.

Travis Travis: Let's talk about the proof on the way up and forward.

Bruce: We have increased our number of addressable markets and aligned internal governance structures to support growth within these new market segments.

Travis Travis: We successfully addressed our capital structure.

Travis Travis: <unk> 2024, we announced the exchange offers to refinance our entire debt structure and extend maturities by approximately three years to align with vision 2030.

Bruce: All of these markets, we will have a product pipeline with thoughtful go to market plans.

Travis Travis: This transaction closed in January 2025, with a 90, 975% participation outcome.

Bruce: We have the necessary corporate affairs and government relations team to make sure we educate stakeholders and our role in the ecosystem are well understood.

Travis Travis: We were able to do this at an attractive cost of capital.

Bruce: In addition declared as long successful history of combating waste fraud and abuse, our transformation will help us accelerate our mission to improve improve affordability transparency and quality.

Travis Travis: More importantly, it was a demonstration of our commitment to our long time investors and a testament to our credit investors believed in our vision and its probability of success.

Travis Travis: This important initiative complete my leadership team and I can now devote 100% of our time to running the business.

Bruce: We have laid the foundation reset division and started the term.

Bruce: Let's talk about the proof on the way up and forward.

We continue to add value to our payer clients and core products that we successfully renewed one of our largest clients for an additional three years at current value.

Bruce: We successfully addressed our capital structure in December 2024, we announced the exchange offers to refinance our entire debt structure and extend maturities by approximately three years to align with vision 2030.

Travis Travis: And we're working more closely with our other top tier clients to reframe relationships and better explain the value we bring.

Bruce: This transaction closed in January 2025, with a 90, 975% participation outcome.

Travis Travis: We also continue to make great progress with wins for our value driven health plan and our HST products ending the year with an 8% increase in covered lives, resulting in $16 million of annual contract value. We're revitalizing focus on the network business enhancing payment integrity to tackle waste fraud and abuse.

Bruce: We were able to do this at an attractive cost of capital more importantly, it was a demonstration of our commitment to our long time investors in it.

Bruce: Testament to our credit investors belief in our vision and its probability of success.

Bruce: This important initiative complete my leadership team and I can now devote 100% of our time to running the business.

Travis Travis: With NSA and continuing to be a key focal area going forward as well.

Travis Travis: Finally, our plan optics payer products recorded for new client wins in 2024, and one already in 2025 with a total <unk> of $1 1 million. We are building momentum and now have 37 opportunities in the sales pipeline with an additional $14 million ACB potential.

Bruce: We continue to add value to our favorite clients and core product set we successfully renewed one of our largest clients for an additional three years at current value.

Bruce: And we are working more closely with our other top tier clients to reframe relationships and.

Bruce: Better explain the value we bring.

Travis Travis: Yeah.

Bruce: We also continue to make great progress with wins for our value driven health plan and our HST products ending the year with an 8% increase in covered lives, resulting in $16 million of annual contract value. We're revitalizing focus on the network business enhancing payment integrity to tackle waste fraud and abuse.

Travis Travis: I noted earlier that we completed a multi year contract with Oracle for our digital transformation not only will that improve our technology infrastructure, while providing better operating efficiency, but it will also allow us to more easily participate in the Oracle cloud marketplace with innovative products like Ben insights.

Bruce: NSA continuing to be a key focal area going forward as well.

Travis Travis: This means our products can be sold to the Oracle sales channel.

Bruce: Finally, our plan optics payer products recorded for new client wins in 2024, and one already in 2025 with a total <unk> of $1 1 million. We are building momentum and now have 37 opportunities in the sales pipeline with an additional $14 million ACB potential.

Travis Travis: Opens the potential for thousands of relationships clients and opportunities for not only our standalone products.

Travis Travis: But also native integration of our strategic products within multiple Oracle product sets overtime.

Travis Travis: In Q4, we closed one of our largest.

Travis Travis: Ever single contract bookings of $34 million total contract value.

Bruce: <unk>.

Bruce: I noted earlier that we completed a multi year contract with Oracle for our digital transformation.

Travis Travis: Publishing the full scope of what we offer for a new client acquisition.

Bruce: Not only will that improve our technology infrastructure, while providing better operating efficiency, but it will also allow us to more easily participate in the Oracle cloud marketplace with innovative products like within that insights.

Travis Travis: We did so with a new innovative business and revenue model that will allow us that will allow for predictable revenue stream with building and price escalation features while providing scale value to our clients.

Travis Travis: We now have over 12, similar enterprise sale opportunities in the pipeline.

Bruce: This means our products can be sold to the Oracle sales channel. This opens the potential for thousands of relationships clients and opportunities for not only our standalone products.

Travis Travis: I believe we can add value with business model transformation and change out of the market buys.

Travis Travis: We also penetrated new market frontiers with important early wins and a new product launch.

Bruce: But also native integration of our strategic products within multiple Oracle product sets overtime.

Travis Travis: In evaluating our provider go to market offerings that we have identified upwards of $250 million and serviceable attainable market over a multiyear period and we are just getting started earlier in 2024, we announced our first provider client win with the sale of our predictive risk modeling solution tailored care to improve their med.

Bruce: In Q4, we closed one of our largest ever single contract bookings of $34 million total contract value.

Bruce: Seeing the full scope of what we offer for new client acquisition.

Bruce: We did so with a new innovative business and revenue model that will allow us that will allow for predictable revenue stream with building and price escalation features while providing scale value to our clients.

Travis Travis: <unk> engagement and cost efficiency in December we announced our new complete view transparency analytics product.

Travis Travis: Our first four pilot clients with 10, additional and our growing pipeline.

We now have over 12, similar enterprise sale opportunities in the pipeline.

Bruce: I believe we can add value with business model transformation and change how the market buys.

Travis Travis: We're also making real progress with our best bet insight suite of products. We closed our first direct to employer opportunity and have 39 opportunities across all segments and our pipeline for 2025. Furthermore, we are pursuing multiple federal government payment and revenue integrity opportunities and two specialty network solution opera.

Bruce: We also penetrated new market frontiers with important early wins and a new product launch.

Bruce: In evaluating our provider go to market offering and fifth we have identified upwards of $250 million and serviceable attainable market over a multiyear period and we're just getting started earlier in 2024, we announced our first provider client win with the sale of our predictive risk modeling solution tailored here to improve their <unk>.

Travis Travis: Disease.

Travis Travis: Partners continue to recognize what we do and want to work with US we had some innovative successes with it with the announced J. Two partnership. This January we also expect to announce a revenue collaboration and the pet wellness space in early Q2.

Bruce: <unk> engagement and cost efficiency in December we announced our new complete view transparency analytics product.

Travis Travis: We increased our competitiveness with 24, new or reactivated logos in 'twenty four include.

Bruce: Our first four pilot clients with 10, additional and our growing pipeline.

Travis Travis: Including taking a bath for clients from competitors were being more aggressive in the market and competing to win.

Bruce: We are also making real progress with our best bet insight suite of products. We closed our first direct to employer opportunity and have 39 opportunities across all segments and our pipeline for 2025. Furthermore, we are pursuing multiple federal government payment and revenue integrity opportunities and two specialty network solution.

Travis Travis: Finally, we continue to serve and deliver on our promises as demonstrated by a plus 73 on our net promoter score and continued acknowledgment and featured success in Forbes list of Best places to work in health care.

Travis Travis: We haven't been busy we were operating at real pace with real urgency and we're getting things done.

Bruce: Disease.

Bruce: Partners continue to recognize what we do and want to work with US we had some innovative successes with the with the announced J. Two partnership is January we also expect to announce a revenue collaboration and the pet wellness space in early Q2.

Travis Travis: As we proceed on the way up and forward, we're realistic and optimistic we still have challenges to overcome we continue working through a single client impact that we believe will stabilize in 2025, we operate in a highly competitive marketplace.

Bruce: We increased our competitiveness with 24, new or reactivated logos in 'twenty four including taking back four clients from competitors were being more aggressive in the market and competing to win.

Travis Travis: We have the overhang from exogenous events that don't reflect who we are the value. We bring finally, we have continued work to do on driving sales execution on our new and existing products.

Bruce: Finally, we continue to serve and deliver on our promises as demonstrated by a plus 73 on our net promoter score and continued acknowledgment and featured success in Forbes list of Best places to work in health care.

Travis Travis: I am pleased with how we are managing the challenges of the now but also executing in the moment and planning for the next we aren't afraid to do the hard work. It takes a long road and take this on.

Bruce: We haven't been busy we were operating at real pace with real urgency and we're getting things done.

Travis Travis: As I said, we're realistic and optimistic and emboldened by the rapid progress we have made in certain key areas against our vision.

Bruce: As we proceed on the way up and forward, we are realistic and optimistic we still have challenges to overcome we continue working through a single client impact that we believe will stabilize in 2025, we operate in a highly competitive marketplace.

We will find their footing with a return to long term sustainable growth as you have heard from our earlier proof points, we wouldn't be product web with new and enhanced solutions that it is.

Travis Travis: Address client interests.

Travis Travis: It will be partner enabled developing long term relationships that are focused targeted and meaningful.

Bruce: The overhang from exogenous events that don't reflect who we are the value. We bring finally, we have continued work to do on driving sales execution on our new and existing products.

Travis Travis: And we will be technology, driven with thoughtful long term investments.

Travis Travis: Our new innovative products.

Bruce: I'm pleased with how we are managing the challenges of the now but also executing in the moment and planning for the next we aren't afraid to do the hard work. It takes a long road and take this on.

Travis Travis: Nobody in our space is taking on this kind of technology advancement to include best in class infrastructure and AI.

Travis Travis: We will take advantage of our unique market position to serve the entire ecosystem, which leads us to the way up in 2026.

Bruce: As I said, we are realistic and optimistic and emboldened by the rapid progress we have made in certain key areas against our vision.

Travis Travis: I am excited to share the good things to come and clearance of we're moving fast and I continue to be relentless with my teams and our associates about the need to go faster there is more to come and we will be much more active in the marketplace and ecosystem we.

Bruce: We will find our footing with a return to long term sustainable growth as you have heard from our earlier proof points, we will be product led with new and enhanced solutions that it is.

Bruce: Dress client interest.

Travis Travis: We have several key milestones to be announced soon for example to celebrate the rebranding we will also be changing our stock ticker to see T. E. D. On February 28, and ringing the closing Bell at the New York stock exchange on that day.

Bruce: It'll be partner enabled developing long term relationships that are focused targeted and meaningful.

And we will be technology, driven with thoughtful long term investments.

Bruce: Our new innovative products.

Bruce: Body in our space is taking on this kind of technology advancement to include best in class infrastructure and AI.

Travis Travis: Other announcements forthcoming include additional key strategic partnerships.

Travis Travis: Watching a health focused foundation, a PGA players sponsorship and showing a big at key industry events with more proactive media outreach.

Bruce: We will take advantage of our unique market position to serve an entire ecosystem, which leads us to the way up in 2026.

Bruce: I am excited to share the good things to come a clearance of <unk>.

Travis Travis: What we do is good for health care, we can and will do more.

Bruce: We're moving fast and I continue to be relentless with my teams and our associates about the need to go faster there is more to come and we will be much more active in the marketplace and ecosystem.

Speaker Change: Before I turn the call over to Doug I would like to make sure we set expectations for our financial outlook. This year.

Travis Travis: We're providing guidance with a down the middle plan that I strongly believe our team can deliver we are.

Bruce: We have several key milestones to be announced soon for example to celebrate the rebranding we will also be changing our stock ticker to seat T. E. D. On February 28, and ringing the closing Bell at the New York stock exchange on that day.

Travis Travis: Implemented and executed very thoughtful and professional processes the plan and run our business in 'twenty five and beyond.

Travis Travis: I expect our team to execute on this plan this year will be critically focused on preserving the strength in our core business.

Bruce: Other announcements forthcoming include additional key strategic partnerships.

Travis Travis: While we relentlessly pursue developing and winning in our growth markets. We expect revenue to be slightly down to flat and we are internally planning for roughly flat EBITDA as we could complete the turn we are organized focused we'll deliver our plan and I am very optimistic based on the proved to date for our future.

Bruce: Launching a health focused foundation, a PGA player sponsorship and showing a big at key industry events with more proactive media outreach.

Bruce: We do as good for health care, and we can and will do more.

Bruce: Before I turn the call over to Doug I would like to make sure we set expectations for our financial outlook. This year.

Travis Travis: With that let me turn it over to Doug to cover 2024, and our 2025 guidance.

We are providing guidance with a down the middle plan that I strongly believe our team can deliver we implemented and executed very thoughtful and professional processes.

Doug: Thank you Travis and good morning, everybody. It has been a rather quick onboarding process for me here at cleared it.

Bruce: Plan and run our business in 'twenty, five and beyond I expect our team to execute on this plan. This year will be critically focused on preserving the strength in our core business, while we relentlessly pursue developing and winning in our growth markets. We expect revenue to be slightly down to flat and we are internally.

Doug: I'm excited to see our new vision, taking shape and I'm happy to share that pace of progress has picked up notably since we last reported.

Doug: I wanted to start off my remarks with commentary on the pivotal transformation program, we announced yesterday.

Doug: And it is a culmination of the foundation year that tried to spoke to and to find our multiyear initiative to modernize operations deliver meaningful cost efficiencies and position the company for future growth as part of our vision 2030 plan. We briefly hinted at this plan on our last earnings call and I'm happy to outline a three key components.

Bruce: Planning for roughly flat EBITDA as we complete the turn we are organized focused we'll deliver our plan and I am very optimistic based on the proved to date for our future with that let me turn it over to Doug to cover 2024, and our 2025 guidance.

Doug: Elements of the transformation program.

Doug: First digital transformation and technology enablement, we plan to leverage Oracle cloud infrastructure or OCI to modernize our technology platform and applications with modern and advanced tooling, which will allow us to take full advantage of AI and will enable us to deliver our products to market much faster.

Doug: Thank you Travis and good morning, everybody. It has been a rather quick onboarding process for me here at cleared it.

I'm excited to see our new vision take shape and I'm happy to share that pace of progress has picked up notably since we last reported.

Doug: I wanted to start off my remarks with commentary on the pivotal transformation program, we announced yesterday.

Doug: With significant operating leverage and cost efficiencies.

And is the culmination of the foundation year that tried to spoke to and defines our multiyear initiative to modernize operations deliver meaningful cost efficiencies and position the company for future growth as part of our vision 2030 plan. We briefly hinted at this plan on our last earnings call and I'm happy to outline a three key components.

Doug: Business realignment, we are refreshing our go to market strategy and updating our commercial agreements to optimize market positioning.

Doug: We are also improving pricing and packaging and enhancing deal management.

Doug: This realignment will also bring a general general manager leadership focus across our lines of business.

Doug: Elements of the transformation program.

Doug: This focus will help our agility in decision, making and provide better discipline with respect to capital allocation priorities as we seek to profitably grow.

Doug: Third business process optimization, we are streamlining internal processes across the enterprise using advanced technologies. We are deploying scaled shared services by leveraging modern enterprise resource planning application and global best practices for automation where appropriate.

Doug: With significant operating leverage and cost efficiencies.

Doug: Business realignment, we are refreshing our go to market strategy and updating our commercial agreements to optimize market positioning.

Doug: We will improve operational speed, ensuring disciplined and fixed cost leverage to support our long term growth objectives.

Doug: We are also improving pricing and packaging and enhancing deal management.

Doug: Our transformation program has been designed to modernize our operations to deliver a 10% to 15% net reduction in our operating cost base and to accelerate our growth agenda under our vision 2030 plan in.

Doug: This realignment will also bring a general general manager leadership focus across our lines of business.

Doug: This focus will help our agility in decision, making and provide better discipline with respect to capital allocation priorities as we seek to profitably grow.

Doug: In parallel with growth as a primary focus for us our chief growth Officer has realigned our sales organization into dedicated growth focused market segments with the aim to more efficiently and strategically expand current markets and white space within those markets and aggressively pursue new addressable markets with our growth products.

Doug: In recent weeks, we've achieved several key milestones in support of the transformation program.

We will improve operational speed, ensuring disciplined and fixed cost leverage to support our long term growth objectives.

Doug: <unk>, a new product launch.

Doug: A comprehensive debt refinancing the selection of Oracle to modernize our technology footprint and the rebranding of our company that we recently announced that by the Nashville last week in.

Doug: In summary, our transformation program is not solely about cost reduction it is a complete effort to position clarity for sustainable long term growth.

Doug: In parallel the growth is a primary focus for us our chief growth Officer has realigned our sales organization into dedicated growth focused market segments with the aim to more efficiently and strategically expand current markets and white space within those markets and aggressively pursue new addressable markets with our growth products.

Doug: By integrating advanced technologies into our way of work realigning, our business and improving our internal processes, coupled with a renewed focus on strategic pricing packaging and growth we are well positioned to drive vision 2030 forward.

Doug: As mentioned, we announced the closing of our debt refinancing exchange offerings in January with a 90, 975% aggregate participation.

Doug: <unk>.

Doug: In recent weeks, we've achieved several key milestones in support of the transformation program, including a new product launch a.

Doug: In total $4 $5 6 billion of the funded indebtedness was exchanged leaving approximately $11 $5 million of old debt outstanding.

Doug: As we disclose this process began in the fall of last year and required a deeper level of communication with the credit holder groups throughout the fourth quarter to negotiate and accomplish.

Doug: In summary, our transformation program is not solely about cost reduction it is a complete effort to position <unk> for sustainable long term growth.

Doug: These discussions were he helpful iterative process that allowed us to get direct feedback on a tenants of our vision 2030 strategy.

Doug: As the saying goes it takes a village and there is no shortage of diligent advisors and internal resources to complete this transaction.

Doug: As mentioned, we announced the closing of our debt refinancing exchange offerings in January with a 90, 975% aggregate of participation.

Doug: We are enthused by the Receptiveness of the existing credit holders to our vision 2030 concept.

Doug: And their faith in our team being able to deliver this gives us great runway and ample time to realize our vision for Claire.

Doug: In total $4 $5 6 billion of the funded indebtedness was exchanged leaving approximately $11 5 million of old debt outstanding.

Doug: As we turn the page to 2025 I wanted to briefly summarize FY 'twenty four results as shown on page five of the supplemental deck FY 'twenty four revenue was $930 6 million down three 2% from FY2023 our revenues came in at the low end of our latest guide range for the year.

Doug: These discussions were a helpful iterative process that allowed us to get direct feedback on a tenant of our vision 2030 strategy.

Doug: However, excluding the impact of one large client.

Doug: At the same goes it takes a village and there is no shortage of diligent advisors and internal resources to complete this transaction we.

Doug: Our revenues would have increased three 6% as compared to the prior year. Additionally, the Q4 'twenty four revenue of $232 1 million was in line with what we communicated on the third quarter earnings call that the fourth quarter would be running similar to third quarter results.

Doug: We are enthused by the Receptiveness of the existing credit holders to our vision 2030 concept.

Doug: And their faith in our team being able to deliver this gives us great runway and ample time to realize our vision for Claire.

Doug: Turning to FY 'twenty for revenues by service line as shown on page six of the supplemental deck of network base revenues declined 17, 1% from prior year.

Doug: As we turn the page to 2025 I wanted to briefly summarize FY 'twenty four results as shown on page five of the supplemental deck FY 'twenty four revenue was $930 6 million down three 2% from FY2023 our revenues came at the low end of our latest guide range for the year.

Doug: Analytics based revenues increased one 4% from the prior year, our payment and revenue integrity revenues decreased one 6% from the prior year.

Doug: During 2024, we experienced sequential quarterly growth of identified potential savings.

Doug: However, excluding the impact of one large client.

Our revenues would have increased three 6% as compared to the prior year. Additionally, the Q4 'twenty four revenue of $232 1 million was in line with what we communicated on our third quarter earnings call that the fourth quarter would be running similar to third quarter results.

Doug: As shown on page seven of the supplemental deck total FY 'twenty four bill charges increased five 3% to $177 6 billion for the year, while identified potential savings increased seven 5% to $24 7 billion.

Doug: Turning to FY 'twenty for revenues by service line as shown on page six of the supplemental deck network base revenues declined 17, 1% from prior year.

Doug: In our core commercial health plan segment Bill charges increased six 9% from 23% to 24, while identified a potential savings increased seven 3% to $23 2 billion for FY 'twenty for.

Doug: Analytics based revenues increased one 4% from the prior year, our payment and revenue integrity revenues decreased one 6% from the prior year.

Doug: While our volume results were strong.

Doug: Conversion and revenue was hampered by volume and mix pressures related to the decline experience with one of our larger clients and our NSA product. Additionally, the impact of the change healthcare outage earlier in the year and our subsequent CMS announcement of 120 day exception period for independent dispute resolution submissions in mid June created.

Doug: During 2024, we experienced sequential quarterly growth of identified potential savings as shown on page seven of the supplemental deck total FY 'twenty four bill charges increased five 3% to $177 6 billion for the year, while identified potential savings increased seven 5%.

Doug: A headwind for NSA product in particular.

Doug: Historically the company has relied on these metrics to guide the outlook on top line performance.

Doug: $224 7 billion.

Doug: In our core commercial health plan segment Bill charges increased six 9% from 23 to 24, while identified potential savings increased seven 3% to $23 2 billion for FY 'twenty four.

Doug: Believe that the transformation of our business into a data analytics and technology business, along with a broadening of our products and pipeline clients and segments and innovative revenue models with which we are going to market and winning warrants a new set of metrics that more clearly models cleared is performance we expect to present this.

While our volume results were strong.

The conversion of revenue was hampered by volume and mix pressures related to the decline experience with one of our larger clients and our NSA product. Additionally, the impact of the change healthcare outage earlier in the year and our subsequent CMS announcement of 120 day exception period for independent dispute resolution submissions in mid June.

Doug: New metrics on our first quarter of 2025 earnings call and develop more informative communications that more clearly aligned to the successes of the company. For example, we believe that a rule of 70, which would be a combination of adjusted EBITDA margin plus of revenue growth percent isn't appropriate medium to long term targets.

Doug: A headwind for NSA product in particular.

Doug: Historically the company has relied on these metrics to guide the outlook on top line performance.

Doug: For clarity given its strong historical and ongoing operating leverage currently yielding adjusted EBITDA in the low to mid <unk> percentage.

Doug: I believe that the transformation of our business into a data analytics and technology business, along with a broadening of our products and pipeline clients and segments and innovative revenue models with which we are going to market and winning warrants a new set of metrics that more clearly models <unk> performance, we expect to present.

Doug: There'll be more to come on these new metrics.

Turning to expenses FY 'twenty for adjusted EBITDA expenses were 354 million, increasing $10 or $10 5 million from the prior year. The increase from FY2023 was primarily due to the increased personnel cost driven by management and leadership changes between FY2023 in FY 'twenty four.

Doug: These new metrics on our first quarter of 2025 earnings call and develop a more informative communications that more clearly aligned to the successes of the company.

Along with the increase in legal fees and <unk> fees, partially offset by lower year over year expenses in areas, including facilities and insurance.

Doug: For example, we believe that a rule of 70, which would be a combination of adjusted EBITDA margin plus revenue growth percent isn't appropriate medium to long term target for clarity given its strong historical and ongoing operating leverage currently yielding adjusted EBITDA in a low to mid <unk> percentage.

Doug: Adjusted EBITDA was $576 7 million for FY 'twenty, four down six 7% from $618 million in the prior year.

Doug: Our Q4 dollars 24, adjusted EBITDA of $141 6 million was below the low end of our implied guidance range by roughly $3 3 million, but equal to Q3 'twenty four.

Doug: There'll be more to come on these new metrics.

Doug: Turning to expenses.

Doug: Slide 24, adjusted EBITDA expenses were 354 million, increasing 10 for $10 5 million from the prior year. The increase from FY2023 was primarily due to the increased personnel cost driven by management and leadership changes between FY2023 in FY 'twenty four along with the increase in legal fees and.

Doug: Adjusted EBITDA margin was 62% in FY 'twenty four down roughly 230 basis points from 64, 3% in the prior year due to volume deleveraging from the noted decline at one of our larger clients plus the additional costs in FY 'twenty four mentioned earlier.

Doug: <unk> fees, partially offset by lower year over year expenses in areas, including facilities and insurance.

Doug: Moving onto our outlook as shown on page nine of the supplemental deck. We are initiating our full year 2025 revenue guidance range to be down 2% to flat to 2024.

Doug: Adjusted EBITDA was $576 7 million for FY 'twenty, four down six 7% from $618 million in the prior year.

Doug: We are forecasting a net revenue retention rate within our core products segments analytics network and payment and revenue integrity of roughly 97%. This includes the impact of one large client decrease which will normalize by Q3 offset by contributions from the record PCV deal Travis.

Doug: Our Q4 dollars 24, adjusted EBITDA of $141 6 million was below the low end of our implied guidance range by roughly $3 3 million, but equal to Q3 'twenty four <unk>.

Speaker Change: As mentioned in his opening comments and modest but positive market growth assumptions, we have baked into our model. Additionally, we expect to show strong double digit growth in our growth segments, which include H S team and our data and decision science business.

Doug: Moving onto our outlook as shown on page nine of the supplemental deck. We are initiating our full year 2025 revenue guidance range to be down 2% to flat to 2024.

This is based on the bookings and related ACD that we are seeing come through tempered by the partial year effect of such realizations from bookings to revenue in FY 'twenty five.

Doug: We are forecasting a net revenue retention rate within our core product segments analytics network and payment and revenue integrity of roughly 97%. This includes the impact of one large client decrease which will normalize by Q3 offset by contributions from the record PCB deal Travis.

Speaker Change: Finally, given the declining nature and the wind down of one large customer impact and the activation rate of the new gross sales, we would expect to see sequential growth of overall revenues and EBITDA by quarter throughout FY 'twenty five with an implied exit rate of showing the low single digit growth by the end of the year.

Doug: Mentioned in his opening comments and modest.

Speaker Change: Because we believe we have better visibility and control over our spend but the deep dive taken by our <unk> team and the analytical work performed in developing the transformation program. We are providing our adjusted EBITDA guidance as a margin range between 62 five to 63, 5%.

Doug: Positive market growth assumptions, we have baked into our model. Additionally, we expect to show strong double digit growth in our growth segments, which include H S team and our data and decision science business.

Doug: This is based on the bookings and related ACB that we're seeing come through tempered by the partial year effect of such realizations from bookings to revenue in FY 'twenty five.

Speaker Change: We believe that we can manage to this range in lock step with our revenue outcome during the year.

Speaker Change: We are confident that continued prudent cost management and our recent launch of the transformation program will help us maintain earnings and margin power throughout the year and going forward.

Doug: Finally, given the declining nature and the wind down of one large customer impact and the activation rate of the new gross sales, we would expect to see sequential growth overall revenues and EBITDA by quarter throughout FY 'twenty five with an implied exit rate is showing a low single digit growth by the end of the year.

Speaker Change: Final point on capital allocation priority.

Speaker Change: We continue to believe that the best use of capital as investments back into our core business as we execute against our strategy as depicted on slide 10 of the supplemental deck, we give our highest capital priority to organic investments that are aligned with vision 2030, and our transformation program followed by the leverage reduction with any excess.

Doug: Because we believe we have better visibility and control over our spend but the deep dive taken by our <unk> team and the analytical work performed in developing the transformation program. We are providing our adjusted EBITDA guidance as a margin range between $62 five to 63, 5%.

Speaker Change: Cash generation.

Speaker Change: That brings me to the end of my prepared comments I'll turn the call back over to Travis.

Doug: We believe that we can manage to this range in lockstep with our revenue outcome. During the year. We are confident that continued prudent cost management and our recent launch of the transformation program will help us maintain earnings and margin power throughout the year and going forward.

Speaker Change: Thanks, Doug as we move into the future as clarity that we're proud of the heritage of hip character and integrity built over the last 45 years of multi plant and we will carry that forward.

Speaker Change: We have operated with clarity alignment and focus as a company and our new name starts to embody that like.

Doug: Final point on capital allocation priority.

Speaker Change: Like the aperture featured in our new logo or new branding symbolizes our way forward opening the aperture on affordability and transparency and quality and facilitating the mutual interest in improving health care across payers providers employers and patients to deliver optimal health plan performance across the industry.

Doug: We continue to believe that the best use of capital as investments back into our core business as we execute against our strategy as depicted on slide 10 of the supplemental deck, we give our highest capital priority to organic investments that are aligned with vision 2030, and our transformation program, followed by leverage reduction with any excess cash.

Speaker Change: We will build on our deep industry expertise.

Doug: Cash generation.

Doug: That brings me to the end of my prepared comments I will turn the call back over to Travis.

Speaker Change: Thoroughly serve the health care ecosystem, and we will invest even more in our clients and their needs. We exist to serve them. Operator would you kindly open the call for questions for Doug.

Travis: Thanks, Doug as we move into the future as clarity, we're proud of the heritage of character and integrity built over the last 45 years of multi plant.

Speaker Change: Thank you we will now start today's Q&A session. If you would like to ask a question. Please press star followed by one on your telephone keypad. Thank you wish to withdraw. Your question then is still sort of biting.

Travis: We'll carry that forward, we've operated with clarity alignment and focus as a company and our new name starts to embody that.

Travis: The aperture featured in our new logo or new branding symbolizes our way forward opening the aperture on affordability and transparency and quality and facilitating mutual interest in improving healthcare across payers providers employers and patients to deliver optimal health plan performance across the industry.

Speaker Change: Our first question today comes from Josh Raskin from Nephron Research. Your line is now open. Please go ahead.

Josh Raskin: Hi, Thanks, Good morning wanted to follow up on a couple of comments that you made I think Travis I heard you say you renewed one of your largest clients at the current value.

Travis: We will build on our deep industry expertise for more thoroughly serve the health care ecosystem, and we will invest even more in our clients and their needs. We exist to serve them. Operator would you kindly open the call for questions for Doug.

Speaker Change: Sort of the same value for the next three years is that the same economics, you're earning on that.

Speaker Change: Specific contract and then at 97% core retention is that a net number that includes some core growth or is that just sort of account of clients that you've renewed.

Travis: Thank you we will now start today's Q&A session. If you would like to ask a question. Please press star followed by one on your telephone keypad.

Speaker Change: Sorry.

Speaker Change: Yes, that's probably about as I said on the call.

Speaker Change: Paul.

Speaker Change: We're very happy with that we're able to get a large renewal with one of our largest clients inside the quarter inside of the year were also I would say much more actively engaged with all of our clients, including the one that's been.

Travis: We wish to withdraw your question then is from my team.

Travis: Our first question today comes from Josh Raskin from Nephron Research. Your line is now open. Please go ahead.

Josh Raskin: Hi, Thanks, Good morning wanted to follow up on a couple of comments that you made I think I heard you say you renewed one of your largest clients.

Speaker Change: And then declining over time, we actually think that we can add more value for them and so we continue to work closely with them.

Speaker Change: I'll, let Doug comment on the 97% as we go forward, Yeah, Hi, Joshua and good morning. Thanks for the question. So the 97% is a is a net number.

Travis: Value.

Travis: Or are you sort of the same value for the next three years is that the same economics, you're earning on that.

Travis: Specific contract and then at 97% core retention is that a net number that includes some core growth or is that just sort of a count of clients that you've renewed.

And when you think about our total contract base we have.

Speaker Change: Yes.

Speaker Change: With the recent renewal our top several customers or about half of our revenue and I would say the weighted average renewal for our top customer base with the renewal is approximately two years and that's why one of the reasons why we feel like a revenue retention metric is much more helpful. But that's 97% number is a net number.

Travis: I don't think.

Yes, that's right.

Travis: As I said on the call.

Travis: We're very happy with that we were able to get a large renewal with one of our largest clients inside the quarter inside of the year.

Travis: We're also I would say much more actively engaged with all of our clients, including the one that's.

Josh Raskin: Okay. That's helpful. And then can you speak to the underlying volume you're seeing with commercial health plans may be even into 2025, maybe remind us which areas of claims are most valuable to you or ones, where you can create the most savings opportunity and I'm, assuming a strong flu season.

Travis: And then declining over time, we actually think that we can add more value for them and so we continue to work closely with them.

I'll, let Doug comment on the 97% as we go forward, Yeah, Hi, Joshua and good morning. Thanks for the question. So the 97% is a is a net number.

Travis: And when you think about our total contract base we have.

Speaker Change: It doesn't really present, a lot of savings opportunities.

Travis: Yes.

Speaker Change: Yeah. So in our model for 2005, we did model no material mix changes versus 2024, but modest growth assumptions across all areas and so the approach. We took this year in our commercial health plan was to look at kind of the entire environment and model modest growth against our claims volume.

Travis: With the recent renewal our top several customers or about half of our revenue and I would say the weighted average renewal for our top customer base with the renewal is approximately two years and that's why one of the reasons why we feel like a revenue retention metric is much more helpful. But that's 97% number is a net number.

Speaker Change: But I don't think we've materially addressed or changed our mix assumptions.

Speaker Change: Year over year from 25 to 24.

Speaker Change: Okay alright, thank you.

Speaker Change: [noise].

Speaker Change: Our next question today comes from Daniel <unk> from Citigroup. Your line is now open. Please proceed.

Travis: It doesn't really present, a lot of savings opportunities.

Speaker Change: Hi, Thanks for taking the question.

Travis: Yeah. So in our model for 'twenty five we did model no material mix changes versus 2024, but modest growth assumptions across all areas and so the approach. We took this year in our commercial health plan was to look at kind of the entire environment and model modest growth against our claims volume.

Speaker Change: I was curious if you could provide.

Speaker Change: Revenue growth and net revenue retention.

Speaker Change: Stats in 2025, excluding the large client attrition and then as we think about this.

Speaker Change: Lets turn and going into 'twenty six do you think you'll be able to accelerate.

Travis: But I don't think we've materially addressed or changed our mix assumptions.

Speaker Change: Overall revenue growth back up to kind of that mid single digit even getting up to high single digits in 2006 or is it going to take longer to see that net growth really come through thank you.

Travis: Year over year from 25% to 24.

Travis: Okay alright, thank you.

Travis: Our next question today comes from Daniel <unk> from Citigroup. Your line is now open. Please proceed.

Speaker Change: Yeah, Yeah. Thanks, Thanks, Daniel So on the first point, if you strip out the impact of the one large client we're expecting our business to grow roughly mid single digits.

Travis: Yeah.

Speaker Change: Hi, Thanks for taking the question.

Speaker Change: And that pace of growth is accentuated by some of the ACB or new bookings like recurring revenue business as we have within our growth areas, we actually expect bookings growth roughly around 20% and our <unk> business and about half of that to convert to revenue.

Travis: I was curious if you could provide.

Travis: Revenue growth and net revenue retention.

Travis: In 2025, excluding the.

Travis: The large client attrition and then as we think about.

Travis: Ms turn and going into 'twenty six do you think you'll be able to accelerate.

Speaker Change: And our comments around the sequential improvement of revenues and EBITDA, we would expect that to roughly continue into 2026, where we were very cautious and tempered about providing guidance beyond 25, with the exception of being very optimistic about our pipeline, especially as some of our new products get to market and what you can learn more.

Travis: Overall revenue growth back up to kind of that mid single digit view been getting up to high single digits in 2006 or is it going to take longer to see that that growth really come through thank you.

Travis: Yeah, Yeah. Thanks, Thanks, Daniel So on the first point, if you strip out the impact of the one large client we're expecting our business to grow roughly mid single digits and that pace of growth is accentuated by some of the HCV or new bookings like recurring revenue business as we have within our growth areas we ask.

Speaker Change: Part of the reason why we provided the rule of 70 is we're also going to focus on margin and profitable growth as we go forward and we modernize our tech and so I think it's fair to say that a target for us is to get to mid to high single digit growth in our long term outlook can vision 2030, but the first objective.

Travis: We expect bookings growth roughly around 20% and our <unk> business and about half of that to convert to revenue and our comments around the sequential improvement of revenues and EBITDA. We would expect that to roughly continue into 2026, where we were very cautious and tempered about providing.

Speaker Change: As to get the cash flow of the business pumping to that rule of 70 until we can use excess cash to pay down.

Speaker Change: And to continue to invest in the business.

Speaker Change: Okay.

Speaker Change: Yeah, Yeah, and as we think about 2020 six understanding you're not you're not providing.

Travis: Guidance beyond 25, with the exception of being very optimistic about our pipeline, especially as some of our new products get to market and we learn more but part of the reason why we provided the rule of 70 is we're also going to focus on margin and profitable growth as we go forward and we modernize our tech and so I think it is.

Speaker Change: <unk>.

Speaker Change: Thanks.

Speaker Change: 2023 was a big year for contract renewals.

Speaker Change: You mentioned that most renewals are kind of two years, maybe maybe going up to three years, So that would put 26 as potentially another big.

Speaker Change: Year for renewals I was just hoping you could provide a little more detail.

Travis: Fair to say that a target for us is to get the mid to high single digit growth in our long term outlook conversion 2030, but the first objective is to get the cash flow of the business pumping to that rule of 70. So we can use excess cash to pay down.

Speaker Change: What we should expect <unk> terms of renewables pricing in 2006, as we potentially head for another big renewal year.

Speaker Change: Yes, maybe I'll start off and Travis if you have any comments. So the recent renewal was a pretty big one for us and extends US three years, which is a big win at equal value. The next to that we have coming up or coming up with and call. It. The next 12 months to 24 months, where we've already started conversations on the early renewal front.

Travis: And to continue to invest in the business.

Travis: Okay.

Travis: Yeah, Yeah, and as we think about 2020 six understanding you're not you're not providing.

<unk>.

Travis: Thanks.

Travis: The 2023 was a big year for contract renewals.

Speaker Change: We're actually trying to demonstrate and prove out the value of increasing our relationship and so part of the some of the things that we're working on our pricing and packaging and so most of our large clients by most of our stuff and we think that there is immense value in packaging our products to.

Travis: You mentioned that most renewals are kind of two years, maybe maybe going up to three years, So that would put 26 as potentially another big.

Travis: Year for renewables as I was just hoping you could provide a little more detail on what you should expect each arps renewals pricing in 2006, as we potentially head for another big renewal year.

Speaker Change: To share more value with our customers for more volume growth, but the next two big contracts are coming due within I would say the next 12 to 24 months.

Speaker Change: Yes, maybe I'll start off and Travis if you have any comments. So the recent renewal was a pretty big one for us and extends US three years, which is a big win at equal value.

Speaker Change: The weighted average renewal is roughly two years on our largest clients, which does give the does give us some confidence and security around the core business and the cash flow generating abilities of our core business, while we focus on our growth areas.

Next to that we have coming up or coming up with and call. It. The next 12 months to 24 months, where we've already started conversations on the early renewal front are actually trying to demonstrate and prove out the value of increasing our relationship and so part of the some of the things that we're working on our pricing in <unk>.

Travis Travis: I would just add this is travis.

Travis Travis: We're we're engaging earlier as Doug said in those renewal conversations.

Travis Travis: I think in some cases, we're seeking to to look at or potentially change the business model.

Speaker Change: Packaging and so most of our large clients by most of our stuff and we think that there is immense value in packaging our products to share more value with our customers for more volume growth, but the next two big contracts are coming due within I would say the next 12 to 24 months, but the weighted average renewal.

Travis Travis: Where it makes sense, but even in the to the extent, we don't we're looking for a multi year renewals, which allow for predictability both for us and for our clients.

Travis Travis: I am also pretty excited about that.

Travis Travis: We had $34 million booking and the end of last year on a five year term and so we now have 12 opportunities behind that there are.

Speaker Change: As roughly two years on our largest clients, which does give the does give us some confidence and security around the core business and the cash flow generating abilities of our core business, while we focus on our growth areas.

Travis Travis: I would say.

Travis Travis: Subscription based type of revenue models that will give us a much more predictability of the business a recurring revenue basis that we can count on plan against and I think that we can really in that kind of mid health plan market.

Travis: I would just add this is travis.

Speaker Change: Yes.

Speaker Change: We're engaging earlier as Doug said in those renewal conversations.

Speaker Change: I think in some cases, we're seeking to to look at or potentially change the business model.

Travis Travis: Use that model and it really valuable way and those are longer terms you can rely on that and you have predictability of your revenue. It's a basis you can work and plan from an capital allocation against and so I see some of the nature of the business changing over time, but we're confident in our renewal activity.

Speaker Change: Where it makes sense, but even in the to the extent, we don't we're looking for a multi year renewals, which allow for predictability both for us and for our clients.

Speaker Change: I'm also pretty excited about that.

Speaker Change: We have $34 million booking at the end of last year on a five year term and so where we've now have 12 opportunities.

Travis Travis: Got it thank you.

Travis Travis: Yeah.

Speaker Change: Just as a reminder, if you would like to ask a question today. Please press star followed by one on your thought of thank you.

Speaker Change: Beyond that there are.

Speaker Change: I'd say.

Speaker Change: Subscription based type of revenue models that will give us a much more predictability of the business a recurring revenue basis that we can count and plan against and I think that we can really in that kind of mid health plan market.

Travis Travis: And so withdraw your question itself on the biopsy.

Jessica <unk>: Our next question comes from Jessica <unk> from Piper Sandler. Your line is now open. Please go ahead.

Jessica <unk>: Hi, guys and thank you for that question and congratulations on the rebranding them I wanted to just start with just on the top three customer and you. All can you maybe qualitatively describe like what's the value proposition and the key reason for this customer renewed them you know you've seen some business lots of internal operating to payers, but not every payer unnecessarily.

Speaker Change: Use that model and it really valuable way and those are longer terms you can rely on that you have predictability of your revenue. It's a basis you can work and plan from an capital allocation against.

Speaker Change: So I see some of the nature of the business changing over time, but we're confident in our renewal activity.

Jessica <unk>: I also need to bring a multibillion contract and how thats kind of what the deal on the three year term and stable economics, if you could help us there.

Speaker Change: Got it thank you.

Speaker Change: Just as a reminder, if you would like to ask a question today. Please press star followed by one on your telephone keypad until we go real question it still celebrating.

Yeah, I'll start and then Doug can jump in.

Jessica <unk>: He wants to.

Doug: Yes, I think it is.

Doug: It's a great. It's a good relationship to close partnership I think we continue to drive real savings yield for Iraq and value I think that we've also leaned in particularly as it relates to NSA. So we continue to focus on the NSA business and we're very supportive of of NSA and transparency for the industry.

Jessica <unk>: Our next question comes from Jessica <unk> from Piper Sandler. Your line is now open. Please go ahead.

Jessica <unk>: Hi, guys and thank you for that question and congratulations on the rebranding and I wanted to start with just on the top three customer renewals can you maybe qualitatively describe like what's the value proposition and the key reasons this customer renewed.

Doug: And that's been a important thing for us we we waived.

Jessica <unk>: You've seen some business loss to internal operations to payers, but not every payer necessarily has the capacity to bring a multi line contract in house, that's kind of what the deal on the three year tournament and economics, if you could help us there.

Doug: We have automated some of our processes internally as well as it relates to that business. So our backlog is coming down and we're operating with more efficiency, but really that was a testament to the strength of the core business across our analytic analytics network NSA favorite segregate business.

Jessica <unk>: Yes.

Doug: And then Doug can jump in if he wants to.

Doug: And it's a continuation of what's been a great relationship and I think mutually beneficial and we plan to continue to do that.

Speaker Change: Yeah, I think it's a great. It's a good relationship with the close partnership I think we continue to drive real savings yield for Iraq and value.

Doug: Yes.

Speaker Change: Good morning, Jessica Thanks for the question I mean, I would add too as we look at approaching some of our larger and more historic customers and a more strategic lens.

Speaker Change: We've also leaned in particularly as it relates to NSA. So we continue to focus on the NSA business and we're very supportive of.

Speaker Change: We also have new stuff to sell them or stuff that they haven't bought before and I think part of the.

Speaker Change: Of NSA and transparency for the industry.

Speaker Change: And that's been a important thing for us.

Speaker Change: We have automated some of our processes internally as well as it relates to that business. So our backlog is coming down and we're operating with more efficiency, but really that was a testament to the strength of the core business across our analytic analytics network and NSA favorite segregate business and it's a continuation of what's been.

Speaker Change: We thank our incredible products that will yield immense value for our existing customer base part of the emphasis on the rebranding the relaunch and the investment in our go to market is to more deeply penetrate our existing core markets because there they are pretty substantial in size right our core markets.

Speaker Change: A great relationship and I think mutually beneficial and we plan to continue to do that.

Speaker Change: Yes.

Speaker Change: Morning, Jessica Thanks for the question I mean, I would add too as we look at approaching some of our larger and more historic customers and a more strategic lens.

Speaker Change: And addressable market volume are roughly call it $13 billion to $15 billion and so there is a lot of white space. There are left until the conversations we're having with our large strategic customers are here's how we can continue to add value to that you guys can focus on your opex your med acts and affordability because.

Speaker Change: We also have new stuff to sell them or stuff that they haven't bought before and I think part of the.

Speaker Change: The white space for us going forward is including some of our newer products in the discussion. So we mentioned plan optics risk analytics Payor advisory services that we provide through our data and decision science business. These we think are incredible products that will yield immense value for our existing customer base part of the emphasis.

Speaker Change: You have large P&L is to manage as well.

Speaker Change: Okay.

Speaker Change: That's really helpful. Thank you just to clarify does that mean that you guys are providing a more comprehensive.

Speaker Change: On the rebranding the relaunch and the investment in our go to market is to more deeply penetrate our existing and core markets because there they are pretty substantial in size right. Our core markets are in an addressable market volume are roughly call it 13% to $15 billion and so there is a lot of white space there.

Speaker Change: Right now we.

Speaker Change: At the same economics, and then just secondarily can you remind us how does the core out of network claims for pricing product interact with no surprises act on both in your experience in overtime.

Speaker Change: Converge on CPA schedule, it's kind of just the savings opportunity for clarity of change and thanks again.

Speaker Change: Our left until the conversations we're having with our large strategic customers are here's how we can continue to add value to that you guys can focus on your opex. Your med acts and affordability because you have large P&L is to manage as well.

Speaker Change: Thanks, Jessica So maybe I'll take the first one and then.

Speaker Change: So the value economics of doing pricing and packaging are something we are focused on specifically here at clarity of we actually hired our first pricing leader and we're building out our pricing packaging and deal management function, which we announced in the prepared remarks, but I think the benefit of the complete offering that we have in our.

Speaker Change: Okay.

Speaker Change: That's really helpful. Thank you just to clarify does that mean that you guys are providing a more comprehensive.

Speaker Change: Right.

Speaker Change: Core business as well as our growth areas as we service multiple areas, but that health care continuum, and specifically in the provider space as well.

Speaker Change: At the same economics, and then just secondarily can you remind us how does the core out of network claims were pricing products interact with no surprises act on both in your experience in overtime.

Speaker Change: I mentioned most of our clients by most of our stuff and so I think there is immense value and call. It bundling our offering so that as we deepen our relationships with our clients.

Speaker Change: Converge on CPA schedule, it's kind of the savings opportunity for clarity of change and thanks again.

Jessica <unk>: Thanks, Jessica So maybe I'll take the first one and then.

Speaker Change: I'm not looking at the stand alone selling price of one product by itself I'm looking at the complete value of a packaging things together.

Jessica <unk>: So the value economics of doing pricing and packaging are something we are focused on specifically here at clarity of we actually hired our first pricing leader and we're building out our pricing packaging and deal management function, which we announced in the prepared remarks, but I think the the benefit of the complete offering that we have in our.

Speaker Change: And then I think the second question was on out of network claw.

Speaker Change: Claims and NSA and how those interact.

Speaker Change: Just on NSA.

Speaker Change: The general comment that I would make is.

Speaker Change: Yeah, we're very focused on that business, we continue to invest in it as I mentioned, we did quite a bit of internal automation around it this year.

Jessica <unk>: Core business as well as our growth areas as we service multiple areas of that healthcare continuum, and specifically in the provider space as well.

Speaker Change: And what we're seeing generally speaking I would say is that we think there's growth opportunity for us with our existing clients some of whom were.

Jessica <unk>: I mentioned most of our clients by most of our stuff and so I think there's immense value and call. It bundling our offering so that as we deepen our relationships with our clients.

Speaker Change: We're taking it on.

Speaker Change: Themselves and we see some of that possibly starting to come our way.

Jessica <unk>: I'm not looking at the stand alone selling price of one product by itself I'm looking at the complete value of a packaging things together.

Speaker Change: As volume increases, but we also see state level opportunities.

Speaker Change: And we just think that where we got some scale advantage potentially based on the product set that we that we have and then to doug's earlier comment.

Jessica <unk>: And then I think the second question was on out of network claims.

Jessica <unk>: Claims and NSA and how those interact.

Speaker Change: I absolutely see that.

Jessica <unk>: Just on NSA.

Jessica <unk>: The general comment that I would make is.

Speaker Change: For us an advantage to some of that renewal activity or the ability to reduce we have more we got more dry powder to bring to the table.

Jessica <unk>: We're very focused on that business, we continue to invest in it as I mentioned, we did quite a bit of internal automation around it this year.

Speaker Change: As I mentioned earlier.

Speaker Change: When we start when I when I started March of last year. It feels like it's been more than a year.

Jessica <unk>: And what we're seeing generally speaking I would say is that we think there's growth opportunity for us with our existing clients some of whom were.

Speaker Change: We had we didn't even have a complete view product at that time, they plan optics with Nathan with no clients. We've now got eight clients in 47 opportunities in our pipeline amongst those solutions alone and 39 more than had been insights those 39 opportunities are spread across new but they're also.

Jessica <unk>: We're taking it on.

Jessica <unk>: Themselves and we see some of that possibly starting to come our way.

Jessica <unk>: As volume increases, but we also see state level opportunities.

Jessica <unk>: And we just think that where we got some scale advantage potentially based on the product set that we that we have and then to doug's earlier comment.

Speaker Change: So inside of our large accounts.

Speaker Change: We observe for a long time, and we're starting to get I'd say more focus.

Jessica <unk>: I absolutely see that.

Speaker Change: And as it relates to those products or at least.

Jessica <unk>: For us an advantage to some of that renewal activity or the ability to reduce we are more we got more dry powder to bring to the table as I mentioned earlier.

Speaker Change: More interaction with some of those big clients, so I expect that to be potential for us over time.

Speaker Change: In addition to the core which we've done for many many years and they have a network in NSA space.

Jessica <unk>: When we start when I when I started March of last year. It feels like it's been more than a year.

Speaker Change: Okay.

Jessica <unk>: We had we didn't even have a complete view product at that time and plan Opex with Nathan with no clients. We've now got eight clients in 47 opportunities in our pipeline amongst those solutions alone and 39 more than had been insights those 39 opportunities are spread across new but they're also.

Speaker Change: Yeah.

Speaker Change: We have no further questions in the queue. At this time that does conclude today's Q&A session. Therefore, concluding today's call. Thank you for your participation you may now disconnect your lines.

Jessica <unk>: So inside of our large accounts that we observe for a long time and we're starting to get I'd say more focus.

Jessica <unk>: And as it relates to those products or at least more.

More interaction with some of those big clients, so I expect that to be potential for us over time.

Jessica <unk>: In addition to the core which we've done for many many years in the out of network and it's a space.

Jessica <unk>: Okay.

Jessica <unk>: Yeah.

Jessica <unk>: We have no further questions in the queue. At this time that does conclude today's Q&A session. Therefore, concluding today's call. Thank you for your participation you may now disconnect your lines.

Jessica <unk>: [music].

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