Q1 2025 TruBridge Inc Earnings Call
Thank you.
Speaker Change: With afternoon ladies and gentlemen, and welcome to TruBridge, first quarter earnings conference call. At this time, all lines are now listened only mode.
Following the presentation, we will conduct a question and answer session. If at any time during this call, you require immediate assistance, please press star zero for the operator.
Discourse may be recorded on Wednesday, May 7, 2025 .
Dru Anderson: I would now like to turn the conference over to Dru Anderson, please go ahead.
Dru Anderson: Thank you. Good afternoon and welcome to the TruBridge First Quarter 2025 Arning's conference call.
Speaker Change: Leading today's call are Chris Fowler, President and Chief Executive Officer, and Vinay Bassi, Chief Financial Officer.
Speaker Change: This call may include statements regarding future operating plans, expectations and performance that constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Security Litigation Reform Act of 1995.
Speaker Change: The company cautioned you that any such forward-looking statements only reflect management expectations and predictions based upon currently available information and are not guarantees a future
Speaker Change: Actual results may differ materially from those expressed or implied message forward looking statements as a result of known and unknown risks, uncertainties and other factors.
Speaker Change: including those described in public releases and reports filed with the Securities and Exchange Commission, including but not limited to the most recent and report on Form 10K.
Speaker Change: The company also cautions investors that the forward-looking information provided in this call represents their outlook only as of this date and they undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this call.
Speaker Change: At this time, I will now turn the call over to Mr. Chris Fowler, President and Chief Executive Officer. Please go ahead, sir.
Thank you.
Speaker Change: Hey, thanks, Drew, and thanks to everyone for joining us today.
Speaker Change: Q1 results have us coming out of the gate strong, exceeding key financial expectations and making progress on several fronts.
Speaker Change: and Equally Impressive, what a difference a year has made. Last year in the first quarter, we had adjusted EBITDA of $10 million, cash flow from operations of negative $2 million, and a net leverage ratio of 4.4 times.
Speaker Change: This year, our Adjusted EBITDA has nearly doubled to 18.2 million cash flow from operations increased over $7 million and our net leverage ratio is down to two turns to 2.4 times.
Speaker Change: Our financial results this quarter share notable improvement to nearly every metric.
Speaker Change: Revenue of $87 million came in on the high end of our guidance range and adjusted EBITDA exceeded the high end of guidance.
Speaker Change: But I would like to note that some of this upside was a result of a couple million dollars in favorable revenue and cost timing between Q1 and Q2 that Vinay will discuss in just a bit.
Speaker Change: Now I'd like to share an overview of our first quarter financial highlights and provide some insight into our booking trends and our operational initiatives within the financial health and patient care businesses.
Speaker Change: Q1 Bookings totaled $22 million compared to $24 million year-over-year and $14 million in Q4 2024. And given the strength of last year's first quarter, we are pleased with this quarter's bookings that came in ahead of our expectations.
Speaker Change: We successfully signed two-thirds of the bookings that slipped out of the fourth quarter and will continue to update you on the remaining opportunities as we make progress on them.
Speaker Change: As a note, approximately 25% of this quarter's bookings will have little to no revenue impact on 2025, which is a bit unusual.
Speaker Change: In general, it takes one to two quarters to implement our systems, but there are certain instances when the go-live timing is driven by specific customer situations that elongate the process.
Speaker Change: Further, this quarter we signed two deals in the 100 to 400 bed hospital market segment representing examples of the land and expand strategy where we were initially brought in for a short term contract and then based on that performance and outcomes, the scope of work is expanded.
Speaker Change: On the patient care side, we signed $9 million in bookings this quarter, a 60 percent sequential increase and relatively flat compared to a year ago.
Speaker Change: These bookings include two net new customers. One is moving from a paper-based system, implementing their first EHR solution, while the other was a competitive displacement.
Speaker Change: As we continue our efforts to increase the transparency and clarity of our business, I'd like to discuss a reporting change that will be implementing starting this quarter.
Speaker Change: Moving forward, we'll be providing bookings on an annual contract value basis or ACV.
Speaker Change: Up to this point, our bookings numbers were a mix of ACV for financial health and mostly total contract value or TCV for patient care. The ACV number will show just the newly contracted revenue that is expected to be recognized over a 12-month period.
Speaker Change: For the remainder of 2025, we will provide you with both TCV and ACV, giving you the ability to compare them to 2024 results before phasing out TCV completely in 2026.
Speaker Change: With that being said, on an ACV basis, our Q-1 25 bookings were just over $17.3 million.
Speaker Change: Rounding out the bookings discussion today, I'll comment on the ongoing uncertainty related to future healthcare funding, as well as the potential impact of Terrace on many US businesses.
Speaker Change: While we believe this could potentially cause our customers to slow down their decision-making process as they take a more cautious approach to allocating their capital, we still firmly believe the need for our solutions remains strong.
Speaker Change: In times of uncertainty, it's more important than ever that hospitals and providers are collecting all the payment they're entitled to, working to eliminate excess AR days and improve days cash on hand, are valuable tools for preparing for the unknown.
Speaker Change: Shifting gears. On our last call, we discussed applying the same approach we took towards our financial initiatives in 2024 to our operational initiative this year.
Speaker Change: As you know in January we brought on Meredith Wilson to lead our financial health division. For the past three months she has immersed herself in the business, observing and learning as much as possible about TruBridge. After completing her first full quarter at the company, she came away with a few key observations.
Speaker Change: First and foremost, Meredith built the deep understanding of the vital relationship between TruBridge and our core community markets.
Speaker Change: Being that we are the only services and tech vendors solely dedicated to this important U.S. market, we have a truly critical role in the livelihood, solvency, and sustainability of our clients and their communities.
Speaker Change: Secondly, she saw firsthand the importance of exceptional customer service in delivering the financial results expected from our RCM clients.
Speaker Change: In order to provide this, we must attract, hire and retain the right talent both domestically and offshore. At the end of the day, it's the knowledge base and people who really make a difference in client success.
Speaker Change: Lastly, she's identified an opportunity to capitalize on our tech stack by responding to a clear demand for automation. Meredith observed firsthand that our community market is intrigued by the potential of using AI to drive revenue cycle improvements.
Speaker Change: In response, she intends to further accelerate innovation in the financial health team to automate
Speaker Change: Meredith took the inside game from her first quarter in the role and carefully mapped out a plan of action that ensures our workforce transition will continue to progress smoothly.
Speaker Change: for assessments and recommendations are grounded in creating customer delight. Coming off of a solid Q1, we are increasing our investments in the following areas.
Speaker Change: First, we will standardize our global hiring process and establish a centralized workplace to streamline our operations and strengthen team dynamics.
Speaker Change: to that end. We are currently in the initial planning process for the new location and will provide updates in future quarters as the efforts unfold.
Speaker Change: Second, we are experiencing slightly elevated levels of customer satisfaction challenges, so we are evolving where and how the work gets done, and will continue to evaluate the right mix of global and domestic workforce and use of automation.
Speaker Change: At the end of Q1, we have about a third of our CVO clients being supported offshore, showing continued progress towards our goal of 60% by the end of 2025.
Speaker Change: And finally, on our last call, we noted that approximately 60 financial health clients are up for renewal in the next 24 months. In the first quarter of this year, we secured 9 out of 11, which was in line with our expectations.
Speaker Change: Turning now to patient care, our customer retention stands at 98%, excluding centric for Q1, and compared favorably to the first quarter of last year in the mid-90s.
Speaker Change: As I've shared previously, expanding the wallet share within our customer base by delivering new offerings and converting clients to our staff solutions is a priority.
Speaker Change: We continue to make good progress, highlighted by the sales team meeting last week, where we shared customer insights, success, and key value drivers for the new SaaS bundle and TruBridge analytics.
Speaker Change: In addition to interest, which is a volume-based SaaS offering, the sales team was equipped to begin in the second quarter selling a tiered SaaS package that is inclusive of only our EHR offerings and not based on collection volumes.
Speaker Change: With the additional sales preparation around TruBridge Analytics and the new SAS bundle, we believe they are equipped to support the long-term success of our clients by creating greater efficiencies.
Speaker Change: With that said, we added four net news to ask customers in Q1, including two centric conversions and two interest deals.
Speaker Change: So the solid start to 2025 and I'm incredibly pleased to have the strong management team alongside me as we work to bring operational and financial rigor up to the levels I know we can achieve.
Speaker Change: and our annual client conference later this month. We are looking forward to connecting with over 500 customers.
Speaker Change: The investment we make each year in bringing our clients' education, thought leadership, and networking is only a part of the equation.
Speaker Change: Even more important to us is the opportunity we get to spend with end users and decision makers which gives us a deeper understanding of their perspectives and their needs as leaders in the rural and community hospital market. This has always been the most valuable outcome for us.
Speaker Change: To close, we remain committed to furthering the initiatives we laid out to you at the end of last year in enhancing transparency along the way. With that, I'll turn the call over to Vinay to dig into the financial results.
Vinay Bassi: Thank you, Chris, and welcome everyone. Today I will start by giving a quick update on our 2025 priorities and then I will review our first quarter results in further detail and finish by providing a guidance update.
Speaker Change: Overall, we had a great Q125. I'm also pleased in the continued progress on my key initiatives, which I don't share.
Speaker Change: We continue to focus on improving working capital management and generating cash flows to repay debt. In Q1 25, cash from operation was 5.4 million, which was 7.4 million better than Q1 of 2020-24.
Speaker Change: Our accounts receivable was down 12% and DSO was 12 days better compared to the prior year.
Speaker Change: While there is still room for improvement, I'm pleased with the fact that we were able to pay down additional 3 million of principle on our death in Q1, bringing the total repayment to $26 million since January of 2024.
Speaker Change: A net leverage ratio which we define as net debt over LPM Adjuster EBEDA, improved to 2.4 times in Q125.
Speaker Change: down from 2.8 times in Q424, and down from 4 times a year ago.
Speaker Change: We are pleased with these results and would like to maintain the leverage around these levels.
Speaker Change: In addition, we remain committed to optimizing our business to improve profitability in 2025 and the results of Q1 were very positive in that respect.
Speaker Change: Q125 adjusted even the margin of 20.9% where 860 basis point better than the prior year largely due to the revenue growth combined with the global workforce initiative and a continued focus on expense management.
Speaker Change: While Q1 adjusted the bid that did benefit from approximately 2 million of timing between Q1 and Q225, which I will explain shortly, we were pleased with the continued year over year performance.
Speaker Change: Finally, I'd like to provide an update on our efforts to improve our accounting processes and forecasting accuracy. Specifically, we are making progress in the remediation and strengthening of our key controls and building additional analysis to increase the predictability of our results, particularly around our labor costs and customer revenues.
Speaker Change: This will be an ongoing initiative throughout the year as we work to improve our head-con management and forecasting processes.
Speaker Change: Next, I will review our first quarter results, starting with a bookings transition from a mix of PCV, ACV to a fully ACV. As Chris mentioned on a PCV basis, we reported $22 million in bookings for Q1.
Speaker Change: Historically, we have reported bookings as a mix of TCV and ACV based on the nature of the booking of patient care where we have provided booking on a TCV basis historically. We will continue to do so.
Speaker Change: in throughout 2025 but we will also provide them on ACB basis. This will give you the ability to still compare to 2024 results as we make the transition.
Speaker Change: In 2026, all bookings will be reported on an ACN basis only.
Let me discuss what this means in practice.
Speaker Change: Patients care bookings on a PCB basis showed three to five years of expected revenue. Going forward, since these bookings will be reported on an ACB basis, they will only include the revenue expected to be recognized over a 12-month period.
Speaker Change: There is no change to financial bookings as it already was on ACV reflecting 12 months of expected revenue. This new method of reporting should make things much clearer and easier to understand our revenue potential.
Turning now to our first quarter of financial results.
Speaker Change: Revenue in the quarter of $87.2 million reflected an year-over-year increase of 3.7%.
Speaker Change: I'd like to note two things. Firstly, Q1 of last year included 15 days of AHD prior its Divertive Estature and the impact from some setting the centric product.
Speaker Change: Normalizing for these two factors which accounted about $2 million of the year-over-year variance, Revenue would have been up 6.5% primarily due to the growth of our core CBO business, which was up double digits in the quarter compared to the prior clear.
Speaker Change: Secondly, Q1-225 revenue benefited from approximately 1 million in timing due to a license fee for a customer in financial health and some installations in patient care that fell into Q1 instead of Q2 as originally anticipated.
Speaker Change: Financial Health represented 64% of total revenue coming it in at $56.1 million, a 5% increase
Speaker Change: Patient care made up the remaining $31.1 million and was up 1.3% compared to a year ago as growth in fast offerings and some timing of installation revenue was partially offset
Speaker Change: Excluding the impact of AHD and Centric, our core patient care business grew 9% year over year, currently from the sentencing of our core business and the installation revenue timing mentioned about.
Thank you.
Speaker Change: Gross margins of 54.7% increase 430 basis points over last year.
Speaker Change: This increase is largely attributable to financial growth margins of 51.6%, which were up 700 basis points from last year, driven by the revenue growth in our core business and some benefits from reduction in labor costs to our offshore transition.
Speaker Change: Patient care gross margins were flat year over year at 60.4% as run rate cost optimization savings of 2020 for the offset by high margins of declining centric business.
Speaker Change: Operating expenses of $39.5 million, represented 45.3% of total revenue, compared to 51.1% a year ago.
Speaker Change: The year-over-year decline was driven by the cost optimization actions implemented since Q2 last year and lower sales and marketing expenses, including the timing of internal annual kickoff meeting.
Speaker Change: which has historically occurred in Q1 and was rescheduled to April this year due to poor weather conditions in mobile or headquarters in Q1. This sales kickoff meeting is separate from our typical annual user conference which also occurs in Q2.
Speaker Change: The impact of which is a combined 3 million of incremental costs in Q2, then compared to Q1 due to the timing of these two conferences.
Speaker Change: Atjusted EBITDA for the quarter was 18.2 million with the adjusted EBITDA margin of 20.9% up 860 basis points compared to the prior year. As I mentioned earlier, Q1 benefited from approximately $2 million from timing, including the 1 million of revenue timing and rescheduring of our sales kickoff sum.
Moving now to the balance sheet.
Speaker Change: We ended the first quarter with $10.1 million in cash compared to $4.1 million an year ago and a net debt of $158 million which reflects a net leverage of $2.4 times over the last
Speaker Change: However, Biosos was flat sequentially, which I anecdotally attribute to the ongoing external policy uncertainty that Chris noted, resulting in customers being more prudent with their cash. We are closely monitoring the situation and working to keep improving our collection efforts.
Finally, Turning to Guidance [inaudible]
Speaker Change: Before getting into our revise the outlook, I want to reiterate that one of my top priorities this year is to improve a forecasting process which in turn should continuously increase the predictability and visibility of our business.
Speaker Change: as you can see from this quarter's EBITDA performance, we still have some work to do. We are maintaining our revenue expectations and increasing our adjusted EBITDA range to incorporate the EBITDA side from the first quarter. Revenue.
Speaker Change: from 85.5 and 87.5 million and adjusted EBITDA of 12.5 to 14.5 million.
Speaker Change: for the full year 2025, the expect revenue between $3.45 and $3.60 million, and now expect an adjusted EBITDA of $60 to $66 million, up from the previous range of $59 to $66 million.
Speaker Change: In terms of a quarterly guidance, Q2, revenue will be down from Q1 primarily as a result of timing of some revenue we got in the first quarter. The sequential step down in adjusted EBITDA is mainly from the following three items.
Speaker Change: Approximately 3 million related to our annual user conference, which is always in Q2 and our annual sales kickoff meeting, which was canceled in Q1 due to weather conditions and rescheduled for Q2.
Speaker Change: Number two, the previously mentioned $1 million in revenue timing due to license fees and installations that were recognized in first quarter, which we had expected in the second quarter, and third, approximately $1 million of incremental labor cost due to the annual cost of living adjustment done.
Speaker Change: from Q2 Onward, and some incremental investment in financial health to ensure the right mix of global and domestic staff and automation that Chris mentioned previously.
Speaker Change: As we wrap up today, I'd like to reiterate Chris's sentiments that we fear we are off to a strong start with these first quarter results.
Speaker Change: I'm proud of the progress we have made on the strategic financial and operational goals we set for ourselves and look forward to the continued execution in the coming quarters. With that, we can open the call up for questions. John .
Speaker Change: Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star, follow with the number one on your touchstone phone.
You will hear Triton prompt acknowledging a request.
Speaker Change: If you would like to cancel your request, please press Part 2. Please ensure you lift the handset before pressing any keys.
Speaker Change: Your first question comes from the line of Sarah James from Kantor Fitzgerald. Their line is now open.
Sarah James: Thank you and congratulations on a great quarter. Could you give us a little bit of context on how your conversations are going?
Sarah James: There's a lot of news on the policy side, including tariffs that can affect hospital budgets. So how is that filtering down to your conversations and the timing of your sales cycle?
Sarah James: Sarah, first of all, thanks for the nice words. You broke up a little bit, but I think what I put together was you're looking for additional color relative to potential policy changes with the customers. Is that right? Thank you.
Sarah James: Yeah, how the political or terrorist is impacting, how they view timing of new purchases or expansion.
Sarah James: Yeah, you know, so right now, obviously coming off of a nice Q1 from a bookings perspective.
Sarah James: We haven't seen the immediate impact to it and our conversations in Q2, we continue to, you know, have nice progress on the sales front. I will say the overall sentiment is just a absolute uncertainty of what's going to happen next.
from our standpoint.
Sarah James: I don't think it's as much about the tariffs as it is.
Sarah James: You know, now that we're starting to get some previews of how the budget going forward may potentially impact our customers, I think they're just bracing to see exactly how that's going to shake out.
Sarah James: You know, for us, I think the biggest areas of challenge could potentially be around any changes to Medicare expansion.
Sarah James: and then also any changes that we see from a re-embursement standpoint.
Sarah James: There's obviously quite a bit of conversation around the payment parity, but no clear line of exactly what that is.
Sarah James: You know, what I would say, and we continue to have the conversations with our customers that, you know, performance in their revenue cycle is absolutely, you know, a huge priority. And regardless of what change comes from the pilot from Washington.
Sarah James: They need to be with the partner that's going to be waking up every day, making sure that they collect every dollar. So, again, I would say right now, it's a little bit cautious, but we'll continue to monitor and keep you guys on the front page.
Speaker Change: Great, and then one more for Vinay. Could you refresh us on how you're thinking about the potential for 2025 net savings from reducing duplicity of offshore and onshore staffing? Thanks.
Yeah, no, that's a great question.
Speaker Change: Sarah. So as Chris had mentioned, we had moved 30% of our CBO customers in the in last year. And right now with Meredith's coming in, we are trying to make sure that the savings potential is there. So if you look at our overall gross margin, a good contribution of that is coming from offshore savings. And what I would say is right now, I'm not giving an exact number because I'm trying to make sure Meredith's full line.
Thanks for having me.
Thank you.
Thanks, Sarah.
Speaker Change: Your next question comes from the line of Jeff Garro from Stephens. Your line is now open.
George Hill,
Jeff Garrow: Yeah, good afternoon. Thanks for taking the questions. Well, I was hoping you could speak more to Meredith's plan of action, and maybe you could tie that to any early impact on retention, or maybe, you know, given how that will play out over some period of time, any change to your goals around financial health, client retention. Thank you.
Jeff Garrow: Yeah. Hey Jeff, thanks a lot for joining and good question. You know what I would say
Jeff Garrow: We're working on and what Meredith is probably mostly focused on, again, is the client delight and
Retent Overall Retention
Jeff Garrow: I think where we're focused is making sure that as we, you know, continue to scale up our India operation, that we want to make sure as we're, you know, hiring varying levels of experience from an employee standpoint.
Jeff Garrow: that we've got the infrastructure in place to make sure that we're getting quality output as early as possible so that the customer impact is a positive experience.
Jeff Garrow: So I think that's really what some of the learnings from last year to this year and as you heard in the prepared comments as we think about what a physical footprint can do for us to be able to have that academy to make sure that one, we're getting the training, the consistency there that we need, the oversight and just the continued efficiency of the work is being done.
[inaudible]
Speaker Change: Got it. That helps me to probe a little bit further on that topic. There were mentions of mix of onshore versus offshore labor and also discussion on automation and investing more there. And I know you've done some robotic process automation in the past and then...
Speaker Change: In a kind of talk about client reaction to that and various levels of success. So how does it parse out kind of what's the continuation of your kind of long term plans there to offshore more and to bring more automation to the table and what's really incremental today versus where we were a couple months ago?
Yeah, um...
Speaker Change: So again, you know, we've set the bar for the next target at 60%.
Speaker Change: for our staff conversion. That's not the ultimate goal. I do think it's fair to say that I don't think that we're shooting at 100% being the final number that we get to, so therefore that's how you get to that mix of domestic. Can it be 75-85%, I think as we get to 60 and beyond, I think we'll be working that out. From an automation standpoint, this goes back to maybe some emeritus learnings of continual effort on the standardization.
Speaker Change: of our processes, which will enable us to be able to leverage that automation as much as possible.
Speaker Change: So, you know, still early innings from our perspective as far as...
Speaker Change: Normalizing the way that we do work from customer to customer, part of this transition to the offshore model was moving from a client approach to more workflow driven, which does lead to more standardization and then lends itself to that automation opportunity. So,
Speaker Change: you know, continue to be optimistic about what the opportunity is in front of us. Again, 60 is just a waypoint. I don't think hundreds of the final destination, but the automation is definitely the variable in there. And as we get momentum around that, I think the team will become more excited and confident about leveraging it in workflows going forward.
Speaker Change: Thanks for those comments. One more for me, maybe to try to tie some of that into the even expectations and definitely understanding the moving pieces between Q1 and NQ2 and the nice outperformance in Q1 would say that the temptation is there to look at the first half as as a whole.
and just extrapolate that to the-
Speaker Change: The second half, and that puts you, you know, about at the midpoint of your guidance, but maybe you could, you know, just looking at the first half as a whole between the results and the guide and what you have planned for the second half. Help us think about the different puts and takes about first half profitability versus second half profitability as you, you dial in the onshore versus offshore, you invest more in automation, and you continue to grow the business. Thanks.
Speaker Change: That's a great question. I think you put it very rightfully. I look at the first half first. We have a little strong results.
Speaker Change: Some savings we got. We are in barring the one-timers or the seasonality of expenses, let be said.
Speaker Change: Now, what I would like to always keep that is, once the guidance I've given you for Q2, for the full year, I kept it at the same level because
Speaker Change: If once Meredith settles in as we find opportunities of making some investments or some headwinds that they say I have enough flexibility to doing it but at this stage I would say that the pluses and minuses these are the following for the second half.
The
Speaker Change: Savings that I would get from global offshore as it settles in on a net basis is what we will keep monitoring to just make sure like what Chris said, sanitizing the operating processes and all that stuff. He yielding employee productivity, having more metrics to measure. But we will at the same time will continue making investments whether it's on the automation or the flexibility of mixed between domestic and offshore will continue to go in depth. So that's one. And so that's what we're going to do.
The
Speaker Change: Overall, I would say the fact of last year where we, if you remember, we had that quote last year we did from the second half savings that's yielding so far in this year, which will continue. So, and then the revenue growth that we expect in the second half of this from the bookings of Q1 last year overall patient care if you see has started growing a little bit.
Speaker Change: Some of the stickiness of some of the bundles is a little more I would say unconsciously looking at how they stick.
Jeff Garrow: and that is where I feel should give me the confidence of looking at the guidance for the second half. So how I look at it, Jeff, there are a couple of two or three ways to get to that EBITDA guidance, but it obviously goes through revenue pieces and some of the
Jeff Garrow: from patient care, as well as from a meditative, some of the thoughts and plans that come into
Thank you.
Got it. Thanks again. I'll hop back in the queue.
Thanks, Jeff.
Speaker Change: The next question comes from the line of Gene Mannheimer from Freedom Capital Markets. Their line is now open.
Thanks, good afternoon. A good quarter, guys.
. . . .
Speaker Change: I wanted to ask about the non-subscription component of patient care bookings. It was the lowest that you've recorded in a couple of years. So I just want to know how we should think about that big picture. I mean, you called out a new, a one new customer that didn't have automation previously, but
Speaker Change: but is the EHR game now really a market share play and how should we think about patient engagement? Thank you.
Thank you.
Yes, thanks for the call, Gene, or the question, Gene.
Speaker Change: You know, again, we have seen specifically on the net new EHR opportunities, obviously the shift to the SaaS model has taken full effect over the last couple of years.
I would think that the part of the-
Speaker Change: Part of the issue, or part of the change in the one time.
versus Recurring Revenue on the patient care side.
to be around some of the last year, specific to...
Speaker Change: Maybe our AUR reporting, which is an anti-microbial requirement from the government.
Speaker Change: which did have some implementation fees up on the on the front end of that, creating some of that one time revenue opportunity.
Speaker Change: The vast majority of the new offerings that we have, I say vast majority of.
Speaker Change: All the new offerings that we have are really a hundred percent of the SAS model.
Speaker Change: So as we think about, even the implementations on some of our new EHR offerings.
Vinay Bassi: We are smoothing that out across the life of the contract so that we don't have that lumpiness and see that spike in revenue. I think that's the right because...
Speaker Change: Davis, like in patient care, some of these AURs as you mentioned, and they have, they create some lumpiness, but whatever we had launched last year, some of the ERP solutions as partners as yielding results, which are all mostly, if not all recurring revenues.
Speaker Change: That makes total sense. Thanks for that, guys, and my follow-up would be...
Speaker Change: on the financial health side, congrats on those wins in the 100-400 bed range. And I'm not, I don't want to split hairs, but were those deals concentrated at the lower end of that band or the upper end of that band? Because I think that we're that telling.
Speaker Change: It's a good question, Gene. One of them is just over the bar, over the hundred bar and one of them is actually closer to the top end of that. Again, I think it's important to call out that, you know, has set into remarks.
Speaker Change: We started engagement with both of these with very small opportunities, very much of the land and expand or prove the value of TruBridge to these customers.
Speaker Change: We did, and they've yielded very nice opportunities, which are not additional one-time projects, but recurring opportunities going forward.
Speaker Change: You know, there is there's ever been the need for the RCM services in that 100 to 400 bed space as there is in our, you know, more traditional EHR sub 100 bed market. So we continue to be excited about, you know, continuing to see traction there.
All right. Great. Well done. Thank you
Speaker Change: We don't have any questions at this time. I will now turn the call over to Chris Fowler. Please proceed.
Chris Fowler: Thank you, John , and thank you all for your continued interest in TruBridge and a happy early Mother's Days to all the moms out there listening. Have a great rest of your week. Talk to everybody soon. Bye-bye.
Speaker Change: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.
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