CareCloud, Inc.

Welcome to the CareCloud, Inc., third quarter 2022 results conference call. At this time, all participants will be in a listen-only mode. Later, we will conduct a question-and-answer session. I will now turn the call over to your host, Natalie Garcia. Ms. Garcia, you may begin.

Good morning, everyone. Welcome to the CareCloud third quarter 2022 conference call. On today's call are Mahmud Haq, our founder and executive chairman, Hadi Chaudhry, our chief executive officer, president, and a director, and Bill Korn, our chief financial officer. Before we begin, I would like to remind you that certain statements made during this conference call are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934 as amended. All statements other than statements of historical facts made during this conference are forward-looking statements, including, without limitation, statements regarding our expectations and guidance for future financial and operational performance, expected growth, business outlook, and potential organic growth and acquisition. Forward-looking statements may sometimes be identified with words such as will, may, expect, plan, anticipate, upcoming, believe, estimate, or similar terminology, and the negative of these terms. Forward-looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties, many of which are beyond our control which could cause actual results to differ materially from those contemplated in these forward-looking statements. These statements reflect our opinions only as to the date of this presentation and we undertake no obligation to revise these forward-looking statements in light of new information or future events. Please refer to our press release and our reports filed with the Securities and Exchange Commission where you will find a more comprehensive discussion of our performance and factors that could cause actual results to differ materially from these forward-looking statements. For anyone who dialed into the call by telephone, you may want to download our third quarter 2022 earnings presentation. Please visit our investor relations site, ir.carecloud.com, click on news and events, Then click IR Calendar. Click on Third Quarter 2022 Results Conference Call and download the earnings presentation. Finally, on today's call, we may refer to certain non-GAAP financial measures. Please refer to today's press release announcing our Third Quarter 2022 results for a reconciliation of these non-GAAP performance measures to our GAAP financial results. With that said, I'll now turn the call over to our CEO, Hadi Chaudhry. Hadi?

Thank you, Natalie, and thanks to all of you for joining us today for our third quarter earnings call. First, to review some high-level financial highlights, we are very pleased to announce our second consecutive quarter of record bookings driven by a strong initial reception to our wellness offerings, namely chronic care management and remote patient monitoring. We see an enormous opportunity to expand our total addressable market and generate meaningful growth through these product introductions, and we'll go into more detail on that shortly. Our third quarter revenue in EBITDA of $33.7 million and $4.8 million, respectively, compared to $38 million and $6.7 million in the prior year quarter, which was expected and built into our projections. On today's call, I would like to discuss a deeper dive into CareCloud's record bookings that continue to grow due to our newly launched products and heightened focus on organic growth. Our innovations in next generation of digital health, including the recent launch of remote patient monitoring, results from the recent class survey, which really put CareCloud on the map with respect to multiple digital health categories. and finally, an update on our sales pipeline. First, with respect to bookings, we are pleased to report that the third quarter represented our highest ever bookings quarter in the history of the company, which we believe was directly correlated with the early strength of our suite of digital health solutions under our wellness brand. Recurring bookings for the third quarter were $7.1 million, up three times that of a year ago and up 25% sequentially atop the prior record we set last quarter. KCloud Wellness bookings represented close to 50% of total recurring bookings for the quarter. This metric tells us that there is an absolute market need for this category of products and gives us the confidence in our R&D strategy and the investments we are making in our solution set. Wellness, which launched a little over six months ago, is an effective and practical way for our practices to support the treatment and well-being of their patients with chronic conditions. It is critical that the pathways to care for these patients is as seamless as possible for both physicians and patients, as nearly half or 45% of Americans live with some type of chronic condition according to the data from NIH. Additionally, it is a great source of incremental revenue for the provider with little to no upfront costs for them. Wellness's bookings momentum since our launch in April demonstrate that its value is clearly resonating with our physicians' base. Similar to the last couple of quarters, while not the norm to get too granular around our bookings metrics, we think it's important to share this information with you as it ties directly to the conversion of the robust pipeline activity that we provided a lot of details around the last couple of quarters. Importantly, it demonstrates that our increased investment in product innovation and sales and marketing spend are paying dividends. Importantly, for modeling purposes, we want to call out what is typically a longer than usual tail for bookings conversion to revenue in our wellness business. We note that $1 of wellness bookings does not translate to $1 of revenue One or two quarters later. Rather, once the booking is confirmed, we work with customer to sign up their patients, and only once the patients are enrolled can the actual chronic care management visits or remote patient monitoring begin. The onboarding of both physicians and patients typically takes 9 to 12 months to fully ramp up. After this initial period, we do not realize the entirety of bookings as revenue. Rather, it is a gradual process to build up to that steady state on an annualized basis. As we mentioned last quarter, given the sensitivity around bookings and general quarterly volatility, please note that investors should not expect us to provide bookings metrics every quarter. KCloud Wellness, which was launched last quarter, continues to generate a strong marketplace response. In later September, we announced the launch of our remote patient monitoring solution. While we detailed this solution on our earnings call last quarter as a refresher, the RPM solution gives healthcare providers the ability to monitor elements of their patients' health outside the clinical setting, allowing more proactive and improved care delivery. Through collaborations with leading device makers, this program enables providers to get real-time information on their patients' health status and make proactive clinical decisions rather than waiting for a scheduled follow-up visit. We have generated RPM bookings of $.6 million in just the last 30 days since its launch. We are very excited about the enormous potential to leverage our existing client base and drive meaningful growth in our wellness segment. As mentioned last quarter, we believe we can generate up to $50 million annually from our existing customer base alone. We are honored that CareCloud was recently recognized in the 2022 Best in Class survey in the category of small practice ambulatory EMR, PM, for offering integrated software and services to practices with 10 physicians or less. Aligning with our mission to drive innovation that creates better financial and operational outcomes for physicians and practices, we are proud that our EMR and PM solutions are being recognized by the medical providers that provide direct feedback to CLAS. For those of you not familiar, the CLAS recognition is the most reputable market research organization specific to the healthcare IT market and is compared to the consumer reports of healthcare. In addition to CLAS, various other respected publishers have recognized CareCloud's products and services under EHR and RCM categories just over the last few months. This includes Business.com for best medical software and best medical billing services, Ford's Advisor for our comprehensive healthcare technology solution, TechRadar for the best electronic health record software, and various others. A more detailed list is available in presentation along with web links. We are also in the running for other award categories of best in class for which results are yet to be announced. Similarly, we are currently under review by Inc. 5000 for best in business for health services and products and Fast Company for most innovative company for our digital health suite. These accolades gave us confidence that we are innovating in the right direction and are succeeding in our goals of alleviating burnout experienced by practice physicians, streamlining their back office processes while driving superior collections. We are pursuing this recognition as part of our business strategy to focus more aggressively on brand awareness and organic sales. We are proud that our clients and objective third parties have given us these awards and certifications. We are pleased that our pipeline of new customers at the end of Q3 was $28 million, a 40% increase above the $20 million we had in the third quarter of 2021. This amount does not include CareCloud Wellness, which represents an entirely different set of potential customers and opportunities cross-selling to our existing customer base. All told, we are thrilled with the early reception to both our wellness offerings and many more. Thank you. and we look forward to reporting our progress as we close out the remainder of 2022. Now, I will turn the call over to Bill for a closer look at our third quarter and year-to-date results. Bill?