Augmedix, Inc.

Greetings, and welcome to the Augmedics, Inc. second quarter 2022 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to send the conference over to your host, Caroline Paul, Investor Relations. Thank you. You may begin.

Thank you and thank you all for participating in today's call. Joining me are Manny Krikaris, Chief Executive Officer, and Paul Ginocchio, Chief Financial Officer. Earlier today, Augmedics released financial results for the quarter ended June 30th, 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, August 8, 2022. Augmetics disclaims any intention or obligation, except as required by law, to update or revive 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. Before we dive into second quarter results, I want to describe the problem we are addressing and what we are doing to help solve that problem. There are now numerous demands competing for a physician's attention at the point of care. Cheap among those is electronic documentation. Too much of the patient visit is consumed by completing EHR checkboxes, entering orders, manually preparing prior authorization requests, and managing inbox messages. The result is a virtual wall between the patient and the physician, which has led to a significant reduction in productivity for the industry and unprecedented levels of physician burnout and patient dissatisfaction. For those who are not familiar with our company, Augmedics is leading a fundamental shift at the point of care by automatically and accurately generating digital documentation of physician-patient interactions unobtrusively, thereby reducing physicians' administrative burden and freeing them to practice at the top of their license. We help physicians see the patients, not the technology, thereby minimizing distractions and enabling physicians and patients to truly connect at the point of care. We currently do this through two offerings, our live product, asynchronous real-time medical note documentation solution, and our notes product, our asynchronous documentation solution. Our performance so far this year reflects our focus on driving enterprise customer expansion, differentiating our AI-driven core platform and flexible product solutions, and scaling our business model. These initiatives have helped drive operating leverage which we expect will result in a reduction in our cash burn going forward. Importantly, we have over two years of operating runway, enough runway to execute our growth strategy regardless of any volatility in the equity capital markets. Paul will expand on this topic during his discussion of our financial results and outlook. Turning to our recent financial performance, revenue for the second quarter of 2022 was $7.3 million. representing a 42% year-over-year growth rate. This is our third quarter near the top of our 30 to 45% multi-year revenue growth target, and it's a testament to our products, team, and the massive and expanding TAM in front of us. Our pipeline has been bolstered by healthcare organizations across the U.S. who are concerned about physician retention and staffing shortages. As a result, we've had our best bookings month ever in June, and had a sizable pipeline to keep that trend going into this quarter and beyond. In the second quarter, we added several enterprise customers, which speaks to our ability to execute on converting our pipeline of new enterprise customers, and we observed a substantial reduction in our sales cycle for not only expansion within existing enterprises, but also for new customer acquisitions. We are pleased to announce we have partnered with Adventist Health a nonprofit integrated health system serving communities in the western United States and Hawaii. This partnership is part of a scalable strategy for Adventist that will enable its clinicians to automate the process of medical documentation and live clinical services. This relationship has grown based on the satisfaction of its clinicians and the positive impact on their productivity to include eight specialties across 14 markets in California, Oregon, and Hawaii. We continue to broaden utilization and deepen penetration among other enterprise customers as well. For example, this past quarter, one of our enterprise customers doubled their number of clinicians in service. This is consistent with our land and expand strategy, where over 90% of initial deployments have led to expansion. In the second quarter, our existing strategic partnerships contributed to some of our growth, and we established new relationships that build upon our successful channel strategy. While we have had a longstanding technology partnership with Google, particularly around automatic speech recognition, AI, and hardware such as Google Glass, we have now deepened and expanded that relationship. Google was already providing strategic introductions to some of its largest healthcare clients, and we recently executed a formal partnership agreement that includes a systematized go-to-market collaboration, which harnesses the power of the roughly 1,000-rep strong enterprise and cloud sales teams. and provides a deeper integration with the Google Cloud platform. Another new partnership we would like to highlight is with Trio Health, a real-world data company and the Consortium of Independent Immunology Clinics, or CIIC. Through this innovative partnership, in addition to relieving documentation burdens for CIIC physicians, our technology is instantaneously augmenting the real-world data insights that Trio is offering to them. as our note builder technology and its associated metadata enhance the value of each visit by providing incremental insights that were not possible previously. We are excited to be making this combined offering available to members of the CIIC organization. Finally, we continue to make meaningful progress on several of our product development efforts. The commercial release of our pre-charting solution has just begun, and we are in the initial stages of the selling process. This new addition to the Augmedix product portfolio addresses another distinct administrative workflow challenge for clinicians, the time invested before a patient encounter begins, and will help relieve one of health systems' biggest issues, staffing shortages. We believe Augmedix PrEP can save clinicians about one and a half hours of the administrative burden each day, and we are confident that the charts we prepare will be more comprehensive than the current standards. We are also in development of a self-serve product to address another distinct and very large segment of the medical documentation market. Like Augmedics Prep, this product will be fully automated and pure software with no human intervention on our part. We anticipate commercial release of this product sometime next year. Additionally, we remain on track with the release of our coding solution. as we've expanded the cohort of doctors in beta testing based upon the successful experience with the initial cohort, where we have achieved a 97% accuracy rate. Coding remains a critical focus of our documentation services, as this fully automated solution allows the clinical services performed on patients to be accurately logged, thereby optimizing reimbursement. We are also pleased to have completed a full commercial rollout of a client device iOS to compliment our existing Android client device operating system. This enables clinicians to personally select their preferred operating system for our client application. This development allows us to expand our network's reach and cater to all clinicians and healthcare enterprises, regardless of which operating system they use. Lastly, we are highly focused on the goal of enabling fully automated medical notes. We are pleased to share that we have seen continued meaningful progress on that front via our proprietary ambient automation platform and note builder technology. The percentage of notes that are being automated today continues to steadily increase as we realize the benefits from our ML leveraging the massive amounts of data that we process every week. As we add new products to our portfolio of solutions, We can expect a boost to our overall gross margin, given that these new products are pure software solutions with commensurate SaaS gross margins. In summary, we continue to drive high growth while focusing on profitably scaling our business. Our suite of services offered is the broadest in the industry, and it continues to be a differentiator in our conversations with healthcare organizations. With the industry's growing need for our services and products, We are confident in Augmetics' growth opportunity, our pathway towards long-term success, and in delivering meaningful value to our customers and shareholders. With that, I'll now turn the call over to Paul Ginocchio, our Chief Financial Officer, then we'll return with closing comments.