CareCloud, Inc.

Good morning, ladies and gentlemen, and welcome to the CareCloud, Inc. first quarter 2024 results conference call. At this time, all lines are in the listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. Also note that this call is being recorded on Tuesday, May 14, 2024. And I would like to turn the conference over to Liz Ferrer, Vice President of Human Resources. Please go ahead.

Good morning, everyone. Welcome to CareCloud's first quarter 2024 conference call. On today's call are Mahmoud Haque, our Founder and Executive Chairman, Hadi Chowdhury, our Chief Executive Officer and Director, Steven Snyder, our President, and Norman Roth, our Interim Chief Financial Officer and Controller. 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 21A 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 would 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 first quarter 2024 earnings presentation. Please visit our investor relations site, ir.carecloud.com, click on news and events, then click IR calendar, click on first quarter 2024 results conference call, and download the earnings presentation. Finally, on today's call, you may refer to certain non-GAAP financial measures. Please refer to press release at today's press release announcing our first quarter 2024 results for a reconciliation of these non-GAAP performance measures to our GAAP final results. With that said, I'll now turn the call over to our CEO, Hadi Chaudhry. Hadi.

Thank you, Liz, and thanks to all of you for joining our first quarter 2024 earnings call. As we discussed in our most recent earnings call, this year we will continue to remain steadfastly focused on increasing profitability and free cash flow. To achieve this overarching objective, our team will leverage our proven technology expertise and AI, our integrated global workforce, and our core competencies related to integration and cost rationalization. Our first quarter results demonstrate that we are making progress on our objective. In particular, since October of 2023, we have identified approximately $22 million of annualized cost reduction measures that we are working to implement. The early results of these cuts are beginning to be seen as our cash from operations increased to $4.1 million as compared to $1 million during the first quarter of last year. And our adjusted EBITDA was $3.7 million. This increase in cash enabled us to pay down $2 million of our credit facility, $1 million during Q1, and another $1 million so far in the second quarter. These improvements in profitability are in spite of the fact that our revenue, which was $26 million for the first quarter, was lower than first quarter last year, primarily due to the lower non-recurring revenue for MedSR. Year over year, we saw improvements in our digital health offering with revenue growing nearing four times. We continue to remain confident that the cross-selling opportunity of higher margins that enabled RCM to our non-recurring professional services clients will continue to represent a significant opportunity for growth. We continue to align our expenses with our revenue and are focusing on the opportunities that generate the best return on investment. Our primary objective will remain centered on profitability and free cash flow, supported by a company-wide commitment to operating leverage and improving our competitive position. Norm will cover these results in more detail later in the call. Turning to our products, as our investors know, Our proprietary end-to-end platform is fully integrated and designed with the flexibility to be adapted across markets and to meet the evolving needs of our clients, the overwhelming majority of whom utilize more than one CareCloud solution. We continue to see rising demand for our digital health and generative AI solutions as we are eager to meet this demand with our scalable solutions and specialized workforce. In Q4 of 2023, we were thrilled to introduce our groundbreaking suite of generative AI solutions, AirCloud Cirrus AI. This innovative platform has empowered our revenue cycle management team with our generative AI based appeals product, revolutionizing the appeal generation process with unparalleled effectiveness and cost efficiency. Additionally, we have seamlessly integrated a virtual support assistant into our offering, ensuring our valued customers receive enhanced and timely support. The CareCloud Serious AI Guide represents a significant leap forward in leveraging AI to deliver clinical decision support by streamlining data input processes and providing real-time, evidence-based recommendations, It assists clinicians in their workflow, ultimately enhancing diagnostic accuracy and treatment planning. By analyzing past medical and social histories alongside current symptoms, it generates suggestive patient charts facilitating informed decision-making. Since its launch, we have seen tremendous interest in the CareCloud Service AI Guide. With over 400 customers signing up or expressing interest in this transformative tool. We remain committed to providing this product free of charge to our existing clientele as we continue to refine our AI technology and improve outcomes. In just the past several months, Cirrus AI Guide has facilitated thousands of recommendations, underscoring our dedication to delivering actionable insights and exceptional service. Continuing our commitment To advancing healthcare technology, we are proud to introduce our latest offering, Cirrus AI Nodes. This solution revolutionizes the transcription process of provider-patient interactions, delivering precise clinical nodes in real-time within a secure HIPAA-compliant environment. Operating seamlessly during patient consultations, CareCloud Cirrus AI Nodes, using ambient AI technology, intelligently identifies crucial dialogue and medical terminology, compiling them into comprehensive clinical notes for immediate review by physicians. Upon approval, these notes are securely archived within the patient's electronic health record, ensuring seamless continuity of care. We are currently evaluating and testing this solution with our initial pilot group. Over the next 30 days, we plan to introduce it to our existing customer base at market competitive pricing. Additionally, we are implementing a risk-free trial period to ensure customer satisfaction and confidence in the product. Finally, I'm pleased to welcome back Steve Snyder to our executive team as president. Whether it has been a general counsel, chief strategy officer, president or CEO, He has partnered with me and our broader team over the last two decades, and we have all worked together to build a world-class, game-changing company. I will now turn the floor over to Stephen. Steve.