CareCloud, Inc.

Welcome to the CareCloud Inc. 3rd Quarter 2023 Results Conference Call. At this time, all participants will be in a listen-only mode. Later, we will conduct a question-answer session. I will now turn the call over to your host, Natalie Garcia, CareCloud's General Counsel. Ms. Garcia, you may begin.

Good morning, everyone. Welcome to the CareCloud 3rd Quarter 2023 Conference Call. On today's call are Mahmood Haque, our Founder and Executive Chairman, Hadi Chowdhury, our Chief Executive Officer, President, and the Director, and Larry Steenvorden, 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 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 2023 earnings presentation. Please visit our investor relations site, ir.carecloud.com. Click on News and Events, then click IR Calendar, click on third quarter 2023 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 2023 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 our third quarter 2023 earnings call. I have several meaningful updates to provide from the quarter, but first we will start with a quick review of the quarterly results. In the third quarter, revenue came in at $29.3 million and adjusted EBITDA came in at $3.2 million. Larry will dive deeper into these numbers later in the call. Overall, our recent progress on several fronts gives us confidence that the fundamentals of our business are intact and CareCloud remains on track to return to growth next year. As an example, we are pleased to report that after the close of the quarter, we signed a credentialing contract with an existing force customer that we believe has potential to be quite significant. Implementation of this is already underway, so we can expect to recognize a portion of that revenue before year-end. This quarter, we continue to make meaningful progress on several ongoing projects and goals, including the launch of our generative AI solution, the stabilization of MedSR, our project-based professional service businesses, and the decisive action we took to align our cost infrastructure to our highest value business opportunities. Digging deeper into our progress in the third quarter, I will start with an update on generative AI. We recently launched our Cirrus AI solution, which incorporates generative AI technology. Just two weeks ago, we had the opportunity to demonstrate this solution at a Google-sponsored conference that brings together thought leaders across the healthcare industry. To kick off, our go-to-market strategy for this solution Through the end of the year, we will be offering it to our client base free of charge. This trial period will allow them time to better understand the benefits and how they can leverage them in their specific practice. They will then have the opportunity to purchase the competitively priced solution starting in 2024. In total, we have launched three AI solutions, two for EHR and one for RCM, and that is just the tip of the iceberg for us. We believe that our ability to stay ahead of the curve on the latest technology will give us a competitive edge in the market by improving the commercialization of our solution and are actively working on additional features. Over the past few months, we have taken effective steps towards stabilizing our Medisat professional services business. We have continued to strengthen our relationship with Meditech one of the dominant EHR provider, and over the past two years, Medisar has evolved from a consultancy firm that mainly relied on short-term staffing projects for a single vendor to a more diversified and sustainable revenue model. Our RCM practice has grown by almost 300% since 2021, and we also see a strength with our technology transformation practice. We are optimistic for 2024 as we see a significant shift in our professional services MED-SR pipeline mix towards RCM and tech transformation and a strong demand for these solutions. In addition, today we have $30 million in active pipeline opportunities versus $12 million entering 2023. We are confident because of the pipeline size and mix that we can leverage our expertise and reputation to capture opportunities and deliver value to our clients and shareholders. Lastly, as we announced in an 8K in early October, we are actively working on improving profitability and positive free cash flow by aligning costs with highest return opportunities. We expect most of the positive impact will be realized in 2024. Larry will discuss this in more detail in a few minutes. All of these factors, just discussed, give us increased confidence that we can return to profitable growth next year. Turning to an update on our business opportunities. As discussed earlier this year, we revamped our website to enhance the user experience and highlight all of our solutions. Our next generation end-to-end therapy solution is live on our upgraded website, and we recently launched a marketing campaign to highlight this offering. We are confident that this campaign, along with the new website, will go a long way in raising awareness of this solution in the physical therapy market. Next, I will provide an update on our opportunity in the Middle East. We are pleased to announce that we are making meaningful progress on our global expansion efforts in that region. We have been strengthening our business development and establishing a permanent presence in Dubai UAE near the innovation and technology hub of Dubai Internet City. Our product teams have been ensuring that our system adhere to the UAE health data law, which requires that health data is stored within the country And at the same time, we are working diligently to integrate our system with the national database, which operates similarly to a health information exchange. We are also excited to present our solutions and services at Arab Health Conference in Dubai in Q1 of 2024. Arab Health is one of the largest healthcare conferences with over 100,000 expected attendees from 180 countries. We look forward to providing you an update on our earnings call next year. In terms of upcoming milestones, CareCloud is preparing to launch CareCloud Prime, a state-of-the-art cloud-based electronic health record platform designed to meet modern physicians' demands. Formerly known as CareCloud Go, this project was a significant goal following CareCloud's acquisition a few years ago. A Cloud Prime offers advanced features such as cloud-based accessibility, seamless interoperability, user-friendly design, improved patient engagement, and AI-powered clinical decision support. It includes tools like CirrusChat for staff interactions, global search for navigation, and unified patient records for efficient data exchange emphasizing efficiency. It also provides health providers with customizable templates, as well as provide support for value-based care model tools, such as proactive care management, remote patient monitoring, and seamless telehealth integration. K-Cloud Prime is more than just another product in our portfolio. It represents our commitment to continually improve and innovate to better serve our clients' evolving needs. In summary, Although we faced some headwinds this year, we entered the fourth quarter feeling confident after the steps we took to stabilize the business and reprioritize cost structure. Because of these strategic actions, we believe we have made it past our low point and are on upswing. The steps we have taken and the progress made this quarter give me confidence in reiterating our full year guidance and our ability to return to growth in 2024. Now I will turn the call over to Larry to give you a closer look at the numbers. Larry?