CareCloud, Inc.

Greetings and welcome to the CareCloud Inc. 3rd 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 then zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce our host, Alejandra Rodriguez. Thank you. You may begin.

Good morning, everyone. Welcome to CareCloud's third quarter 2024 conference call. On today's call are Mahmoud Haque, our founder and executive chairman, Hadi Chaudhry, our chief executive officer and director, Stephen Snyder, our president, Crystal Williams, our chief operating officer, and Norman Roth, our interim chief financial officer and corporate 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 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, approximately, 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 doubts into the call by telephone, you may want to download our third quarter 2024 earnings presentation. Please visit our investor relations site, ir.carecloud.com. Click on news and events, then click IR calendar. Click on third 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 third quarter 2024 results for 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 Chowdhury. Hadi?

Thank you, Alejandra, and good morning, everyone. Thank you for joining us today for CareCloud's third quarter 2024 earnings call. I'm pleased to start with two key updates. First, we have fully paid down our $10 million credit line, demonstrating our commitment to strong financial management and a solid balance sheet. Second, we are on track to resume monthly dividend payments on our Series A and Series B preferred shares starting in March 2025. demonstrating our confidence in CareCloud's profitability and our commitment to generating strong free cash flow to deliver value to our shareholders. In terms of our Q3 financials, we generated $6.8 million in adjusted EBITDA, a 111% increase over last year, and achieved $10.3 million in year-to-date free cash flow, a 328% improvement over 2023. Revenue for Q3 was $28.5 million, slightly down from $29.3 million in Q3 2023 due to fluctuations in non-recurring revenue from our MedSR division. With these accomplishments in 2024, we have met our key financial goals, setting a strong foundation for 2025. This quarter, we remained laser-focused on advancing CareCloud Cirrus AI our flagship AI solution that streamlines administrative tasks and clinical documentation, enabling providers to prioritize patient care. Cirrus AI's integrated technology reduces non-clinical workload, allowing doctors to spend more time with patients and see more of them per day. We have enhanced Cirrus AI nodes to generate fully structured patient charts that integrate directly into the EHR. capturing natural patient-provider conversations to improve documentation quality and reduce administrative burdens. Now the solution also provides diagnostic and procedural support, automating documentation while suggesting relevant diagnosis and procedures. Adaptable to various healthcare settings and supporting multiple languages, CareCloud Cirrus AI is a powerful tool for boosting clinical efficiency and enhancing patient outcomes. A key differentiator of CareCloud Cirrus AI is its seamless integration within our EHR systems, enabling users to work within a single platform without the need to toggle between different systems or manually input data. This deep integration streamlines workflows and enhances user efficiency. Additionally, Cirrus AI can function as an overlay, making it compatible with various healthcare environments and systems with other vendors, allowing for flexible implementation across diverse settings. Through CareCloud Cirrus AI, we are enhancing our entire product suite, including EHR, practice management, and billing systems with advanced AI functionalities. Recently, we launched an AI module that summarizes clinical documentation, helping providers review patient histories quickly and thoroughly. We also introduced a claim note summarization feature that streamlines workflows for RCM staff, significantly reducing the time spent on lengthy claim details. Our logs show these two features save approximately 70% of users' time compared to conventional methods. These tools are now enabled for over 100 of our providers. Our billing teams benefit from AI-powered denial management tools that significantly enhance accuracy and efficiency by identifying denied claims and automating resubmissions. The system not only flags denied claims, but also provides specific reasons for each denial, guiding users on targeted areas to review. It recommends solutions such as verifying the use of specific modifiers and, where applicable, automatically resubmits the claim. For example, if a claim is denied to missing documentation, the AI retrieves and uploads the necessary files to the appropriate portal. This advanced automation minimizes manual effort, accelerates resolution times, and ensures greater accuracy in denial management. Similarly, our AI-generated appeals are saving over 75% of manual appeal generation time. Our AI solutions use a hybrid pricing model based on value we deliver. For features that improve efficiency and accuracy, directly boosting client revenue, we do not charge separately, as many of our fees are contingency-based, aligning our success with our clients. For standalone products like CareCloud Cirrus AI Nodes, we apply specific charges. While revenue from this product is still modest, it shows promising growth potential for the future. Our unique ability to connect clinical and financial data sets us apart in the industry. Over the past two decades, we have built a robust data asset that integrates comprehensive insurance claims data with rich clinical information, enabling us to deliver highly accurate AI-driven solutions that support better decision-making for providers and offer life sciences partners valuable insights into diverse patient populations. This reflects our commitment to using technology for better health outcomes, accessibility, and sustainable value. These are just a few examples of our AI products and the value they bring to CareCloud. We have many more AI-driven solutions in active development with several already in various stages of rollout. Looking ahead, our main goal for next year is to generate enough free cash flow to cover dividends while continuing to grow profitably. We believe our success should be measured by our ability to operate profitably and remain cash flow positive. With our end-to-end solutions, skilled global workforce, and strong record of innovation, including generative AI, we are well positioned for sustainable growth, delivering value to our clients and shareholders as we advance CareCloud's mission into 2025 and beyond. I will now turn the call over to our president, Steve Snyder.