Augmedix, Inc.

Hello, and welcome to the AudMedX, Inc. 2022 First Quarter Earnings Conference Call. All participants will be in the Sun Only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your touchtone phone. To withdraw your question, please press star, then two. Please note, today's event is being recorded. And now I would like to turn the conference over to Caroline Paul, Investor Relations. Please go ahead, ma'am.

Thank you, and thank you all for participating in today's call. Joining me are Manny Kerkaris, Chief Executive Officer, and Paul Gianocchio, Chief Financial Officer. Earlier today, Augmedics released financial results for the quarter ended March 31, 2022. A copy of the press release is available on the company's website. Before we begin, I'd like to remind you that management will make statements during this call that include forward-looking statements within the meaning of federal securities laws which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that relate to expectations or predictions of future events, results, or performance are forward-looking statements. These forward-looking statements are based upon our current estimates and various assumptions and involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a list and description of the risks and uncertainties associated with our business, please refer to the risk factors and management discussion and analysis of financial condition and results of operations in our most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission and similar disclosures in subsequent reports filed with the SEC. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, May 9, 2022. Augmedics disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise. And with that, I'll turn the call over to Manny.

Thanks, Caroline. Good afternoon, everyone, and thank you for joining us. For those new to the Augmedics story, we offer technology and services that reduce the medical note documentation burden for doctors, and save them two to three hours a day. Feedback from our clinician customers is that our product is life-changing and brings back the joy of being a doctor again, lost after years of grinding out notes behind a keyboard. We provide two documentation solutions, both of which rely on the ambient conversation between physicians and patients, a real-time synchronous solution, which we call live, and an asynchronous solution, which we call notes. Both solutions allow doctors to have natural conversations with their patients with no change to their normal workflows nor any new technology to learn. The health enterprise of medics doctors experience higher job satisfaction and can see more patients, which usually generates additional revenue. We are pleased with our ability to deliver a strong first quarter performance as we built upon our bookings momentum in the prior period. We continue to see an increasing need for our products with doctor retention and burnout remaining a key area of concern for healthcare organizations in the U.S. Additionally, Augmetics continues to benefit from healthcare organizations' investment in digital solutions to improve physician workflows, enable increased capacity, and reduce costs at scale. Turning to our recent financial performance, revenue for the first quarter of 2022 was $7 million. representing a 46% year-over-year increase. We anticipate significant revenue growth will continue to come from our existing customers' increased adoption of our live and notes offerings. Future revenue growth should also benefit from the incremental penetration we expect from our new product launches. During the first quarter, we again made meaningful progress on our growth initiatives by further building on our robust sales pipeline and expanding relationships with our existing enterprise customers. Our pipeline remains extremely healthy and is the strongest we have ever seen at Augmetics. Our existing customers are continuing to buy at a healthy rate, as demonstrated by our high net revenue retention rate. We believe we are in a great position to not only bolster our existing customer base, but continue to drive into new untapped markets in the industry. Recall that we are only scratching the surface of this $6 billion market opportunity. where healthcare organizations already under contract with Augmedics represent an aggregate annual revenue opportunity of over $1 billion. We remain focused on this land and expand strategy. When we land within one of these enterprise accounts, we implement our solution among an initial cohort of physicians who we believe will be prime beneficiaries of our service based on their individual productivity metrics, and we gradually expand our footprint once we demonstrate the targeted ROI. We continue to make meaningful progress on our automation initiatives and development of new products to cater to different segments of the market. With respect to new products, I am pleased to announce that we have completed our first ever iOS client application. This is significant as it will enable us to address some major healthcare enterprises that do not allow Android OS within their networks. In addition to our new client application, our coding solution is in beta with a handful of positions, Coding is a critical element of documentation, as every service performed by a physician during a patient encounter must be coded in order to qualify for reimbursement. Coding is typically done by physicians. We are extremely pleased with our coding solution's very high accuracy level. Recall, our coding suggestion is fully automated based upon the metadata generated during our note creation process. Finally, we have completed development work on our pre-charting solution and will initiate beta testing within the coming weeks. Like coding, pre-charting is an essential element of medical documentation. It involves extracting relevant historical information from a patient's health record and inserting that information into the current chart or medical note prior to the current visit. This task is typically relegated to medical assistance or other support staff, which as we all know, have been and remain in very short supply. Looking ahead into 2022 and beyond, we are confident that we can build upon our success over the past few quarters. We have laid the groundwork to drive additional revenue growth and progress on gross margin. We expect the initiatives we are undertaking with existing customers and the pathway we are creating for future customers, combined with the fact that we offer the broadest suite of services in our industry, will ensure continued market share gains within the ever-expanding market in which we operate. We are excited for what is in store for the remainder of the year and are confident that Augmetics will continue its rapid growth. With that, I will now turn the call over to Paul Ginocchio, our Chief Financial Officer, and then we'll return with closing comments.