CareCloud, Inc.

Welcome to the CareCloud, Inc. fourth quarter and full year 2022 post-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, Kim Blanche, CareCloud's General Counsel. Ms. Blanche, you may begin.

Good morning, everyone. and welcome to the CareCloud fourth quarter and full year 2022 conference call. On today's call are Mahmoud Haque, 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 fact made during this conference call 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 fourth quarter 2022 earnings presentation. Please visit our investor relations site, ir.carecloud.com, click on news and events, Then click IR Calendar, click on Fourth 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 Fourth Quarter 2022 results for a reconciliation of these non-GAAP performance measures to our GAAP financial results. And with that said, I'll now turn the call over to our CEO, Hadi Chaudhry. Adi?

Thank you, Kim. And thanks to all of you for joining us for our fourth quarter and full year earnings call. 2022 was a big year for our company on several fronts, including record bookings, redefining the tech-enabled revenue cycle solutions. Our wellness brand, which includes our chronic care management and remote patient monitoring, is rapidly gaining traction in our user base. our wellness offering, and another record booking quarter in the fourth quarter, ending the year with approximately $8 million of bookings. As a reminder, revenue recognized may differ from other bookings due to timings of go-lives, patient adoption ramps, or other factors. 2022 was also the first full year of operating MedSR under the CareCloud's umbrella, and it delivered strong performance from both a revenue and margin contribution perspective. As a reminder, one of the key considerations of the acquisition was leveraging their 200-plus hospital relationships into cross-sell RCM-related services. We acquired them in 2021, and during that year, they generated an annualized revenue of $27 million. Last year, they recorded $30 million, a 9% increase, but that's not the full story. Over the last year, we reestablished and strengthened our relationships with several leading health system software vendors and confirmed our cross-selling thesis by increasing Medisar RCM-related revenue by approximately 300%. We will continue to leverage our relationships for recurring revenue tech-enabled RCM deals, which will help overall growth. Shareholders will appreciate the improvement in its contribution margin, increasing from 3% in 2021, the year we bought them, to 14% for all of 2022, and ending 2022 with a 24% run rate, directly as a result of cross-selling and realizing the anticipated cost synergies. I also want to highlight our tech-enabled revenue cycle management solution, which is truly differentiated in the market as it sits on top of our industry-leading, state-of-the-art software technology products to help us drive better revenue growth in this mature EHR and practice management market. Not only is it an end-to-end solution for our physicians, but it is also vendor agnostic. Also, during the fourth quarter, we hosted our first Analyst and Investor Day, where we shared details around our robust solutions, the value we provide to our clients, the depth and experience of our senior leadership, the benefits of our global workforce, and participants were also able to hear from two of our clients. I thought it was very beneficial not only in educating the investor community, but also the potential user base of our comprehensive capabilities. I'm very pleased so many of you could join us for the informative event. We also use this event as an opportunity to announce that we were changing our common stock ticker symbol from MTBC to CCLD to better align with our corporate brand. We started trading as CCLD on January 10th of this year. I will now turn to an update on the organic growth strategy that we initiated in 2020. We are pleased to report that in 2022, we recorded our highest organic bookings growth of 94%. Over the past two years, we expanded our sales team from 13 people to over 50, which we believe is a significant factor driving this growth. Taking a closer look, we more than doubled the level of bookings from recurring revenue opportunities from 2021 to 2022. We also appointed new sales and marketing leadership in 2022, to better capitalize on the opportunities ahead of us. We anticipate that these trends will continue into 2023. We are laser focused on converting our 2022 booking success into revenue in 2023, excluding revenue from two large health system customers that we acquired and migrated to their acquired systems. We are forecasting 12% organic growth in 2023. Bill will get into this in more detail in a minute. Our goal is to produce double digit organic revenue growth and we believe we have a path to achieve that. Our 2023 outlook is driven exclusively by organic growth and any acquisitions would be incremental to our forecast. Let's turn now to our physical therapy EHR solution. Subsequent to the end of the quarter, just last week in fact, At the American Physical Therapy Association's annual meeting, we launched a version of CareCloud Stock EHR that is specifically tailored to meet the demanding needs of the rehabilitation market. It includes comprehensive and easy-to-use end-to-end tools for managing patient information and tracking their progress. In terms of the market dynamics for software solutions in the rehab space, it is fairly mature and dominated by a couple of vendors. but it is our understanding that innovation has not been at the forefront for some time. That is where we see the biggest opportunity for us. Our remote product is already being used by a leading rehab practice consisting of over 2,500 clinicians. This is an example of CareCloud challenging the status quo with a solution that we believe to be technologically superior. We are seeing strong interest in this offering and look forward to keeping you posted on our progress moving forward. Finally, as we look to 2023, we feel our current established position in the industry has set us up incredibly well to capitalize on a new era of growth, and we see an abundance of emerging opportunities in our future, including our first non-US customers. The first area of focus for 2023 that we are actively exploring is entering the new market of the UAE, which represents a particularly attractive opportunity for CareCloud as the government will be mandating EHR adoption over the next few years. This has many parallels to the meaningful use initiatives in the U.S. that we benefited from a decade ago. We see these opportunities in the health system space through our Medisar division. our proprietary ambulatory EHR for the private practice space, which will need to be certified with the Ministry of Health and Prevention in tech-enabled RCM space and with various other digital health initiatives. We hope to enter this new market in the upcoming year and will keep you updated on our progress. The company's solid operational results in 2022 can be attributed largely to our powerful combination of the technology and services, which are redefining the next generation of RCM solutions for the ambulatory setting. To summarize, first, we are optimistic about our organic growth initiatives that are starting to take hold. Our wellness digital health offering, our Medisar hospital offering, our force workforce augmentation offering, our expansion to non-US markets where we feel we have a distinctive competitive advantage. Second, one of our top priorities in 2023 is onboarding our new clients and turning our record bookings into revenue. And finally, we feel that our work in 2022 has left us well-positioned in the industry to deliver continued growth moving forward. Now I will turn the call over to Bill for a closer look at our fourth quarter and full year results. Bill?