CareCloud, Inc.

Ladies and gentlemen, welcome to the CareCloud second quarter 2024 results conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad. As a reminder, this conference has been recorded. I will now turn the call over to Christian. Thank you. You may begin.

Good morning, everyone. Welcome to CareCloud's second quarter 2024 conference call. On today's call are Mahmood Haque, our founder and executive chairman, Adi Chaudhry, our chief executive officer and director, Stephen Schneider, 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 in 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, leave, 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 wish to download our second quarter 2024 earnings presentation. Please visit our investor relations site, ir.carecloud.com. Click on news and events, then click IR calendar, click on second quarter 2024 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 second quarter 2024 results for a reconciliation of these non-GAAP performances measures to our GAAP financial results. With that said, I'll now turn the call over to our CEO, Hadi Chaudhry. Hadi?

Thank you, Christian, and thanks to all of you for joining our second quarter 2024 earnings call. I'm very pleased to announce that we are turning the corner in our pivot towards improved profitability as our net income, free cash flow, and related metrics are all moving strongly in the right direction, even with lower non-recurring professional services revenues, enabling us to pay down $7.5 million on our credit facility due date this year. You will hear more about this from Steve and Norm, but our team is doing a great job generating cash each month instead of using cash as we were last year. Repaying our debt is a priority for us and is a key step to being able to restart the dividends on our preferred stock. Our focus has been on reducing expenses and improving profitability for the first half of the year, and this will remain a focus in the second half we are starting to turn some attention to growth, which I know investors have been waiting to hear about. On our last earnings call, I talked about addition of new generative AI product called CareCloud Cirrus AI Nodes. Today, I'm pleased to provide an update on the progress of CareCloud Cirrus AI Nodes, which has now been deployed at a small subset of our existing clients. Our pilot users have reported significant improvements in the efficiency and accuracy of clinical documentation. The ambient AI technology embedded within CareCloud Cirrus AI nodes has proven effective at capturing and transcribing crucial dialogue during patient interactions, producing precise clinical notes in real time. As part of our rollout strategy, we offered a 30-day risk-free trial to these initial users, allowing them to fully explore the capabilities of CareCloud Cirrus AI nodes. The feedback has been overwhelmingly positive, with users highlighting the seamless integration with their existing workflows and the time-saving benefits of real-time transcription. After the completion of the trial period, CareCloud Cirrus AI Notes will be available at a competitive license fee of $199 per provider per month. This pricing structure reflects the value that CareCloud Cirrus AI Notes brings to enhancing provider efficiency and patient care. We are confident that this offering will continue to gain momentum as more practices recognize the tangible benefits of integrating AI into their daily operations. We have started to recognize revenues from this product and quarter-third of 2024. Even though it's a very small number at the moment, we anticipate significant growth as adoption increases and more practices begin to see the value it brings to their operations. One of our early adapters with seven medical providers commented, I'm used to using dictation devices, but we are a very busy clinic. So I was trying to look for any way to make our workload easier. I found that CareCloud AI tools are very efficient when it comes to dictation. Instead of me trying to figure out where information should go in the chart, as I'm talking to the patient, this software automatically puts everything where it needs to be. And it's been amazing. It will add suggested codes based on the encounter. I'm still learning the nuances of this program, but so far I'm enjoying it. We are saving a lot of time on the backend. In conclusion, we remain committed to advancing healthcare technology through innovative AI solutions like CareCloud Cirrus AI Nodes. As we expand CareCloud Cirrus AI Nodes to a broader audience, we anticipate continued growth and adoption driving value for both our clients and shareholders. Let's turn our attention to our revenue growth. In this quarter, we have continued to capitalize on our diversified client base, which spans multiple market segments, including hospitals and medical practices of all sizes. This diversity not only stabilizes our revenue streams, but also unlocks significant upsell and cross-sell opportunities. Our proprietary comprehensive suite of integrated products and services, we are uniquely positioned to offer tailored solutions that meet the evolving needs of our clients. This strategic approach allows us to deepen relationships, enhance client retention, and expand our footprint within each segment, driving both top-line growth and long-term value for our stakeholders. Here to date with things, from cross-sell and up-sell initiatives have doubled compared to the same period last year. We expect recognized revenue from these bookings to be approximately 50% higher in 2024 than last year. In Q2, our CareCloud wellness program, including chronic care management and remote patient monitoring, saw a remarkable 154% year-over-year revenue increase. a million dollars in recognized revenue for the first time in a quarter. Most of this revenue is derived from upselling within our existing client base. We see tremendous opportunity in this solution and are committed to further expanding this revenue stream. It has taken a long time for patients to recognize the value that our healthcare providers recognize immediately. And we think use of this program will improve patient health and simultaneously control healthcare costs. by identifying issues earlier before they get more serious. This year marks a pivotal transition for us, during which we have already reached significant milestones in fortifying our financial position and establishing a strong foundation for the future. Our primary focus remains on growing our positive free cash flow, which is crucial, not only covering operating expenses, but also for paying down our credit line and eventually resuming preferred dividends. We have made considerable progress towards these goals and are fully committed to maintaining this positive trajectory. As we look ahead to 2025, our focus will shift back towards driving growth. Our goal is to deliver consistent year-over-year revenue increases while enhancing profitability. We are confident that this growth will be fueled by multiple channels, including new sales, cross-sell and up-sell opportunities, the continued innovation of our fully integrated AI solutions, and the expansion of our CareCloud wellness program. Additionally, we plan to leverage our strategic partnerships, enabling our industry players to utilize our white-table technology solutions and our highly skilled global workforce. Finally, we aim to capitalize on our extensive high-quality healthcare data set to support life sciences companies, healthcare providers, and payers. We will share more details on our growth strategy during our next earnings call. I will now turn the floor over to Steve. Steve?