Veradigm Inc.

Today's session is being recorded. To get us started with opening remarks and introductions, I'm pleased to turn the floor over to your host, Jenny Gillian. Go ahead, please.

Thank you very much. Good afternoon, and welcome to the Allscript's second quarter 2022 earnings conference call. Our speakers today are Rick Poulton, Allscript's Chief Executive Officer, Tom Langan, President and Chief Commercial Officer, and Leah Jones, our Chief Financial Officer. We will be making a number of forward-looking statements during the presentation and Q&A part of the call. These statements are based on current expectations and involve a number of risks and uncertainties that could cause our actual results to vary materially. We undertake no obligation to revise these forward-looking statements for future events. Please refer to our earnings release and SEC filings for more information regarding the risk factors that may affect our results. Please reference the GAAP and non-GAAP financial statements, as well as the non-GAAP tables in our earnings release that are available on our investor relations website. And with that, I'm going to hand the call over to Rick.

Okay. Thank you, Jenny, and thanks, everybody, for joining us for our second quarter earnings call. I'd also like to formally extend a warm welcome to both Tom and Leah to their first earnings call. I've had the opportunity to work very closely with each of them for several years, and I know that they are ready to take on the expanded roles they have now with the company. As I mentioned on the last call, our transaction with Constellation Software closed on May 2nd. Now, while the financial transaction closed on that date, there was an incredible amount of work throughout the whole quarter to begin the process of physically separating the two companies. And I'd like to thank all the employees from both Allscripts and our former business, now named Altera, for their hard work and dedication that was required in the last three months to get that process started. So I want to talk about three things today. First, our financial performance and how we are positioned. Then some thoughts on capital deployment. And finally, my thoughts on what to expect for the balance of the year. I was very, very pleased with our overall performance in the second quarter. Consistent with our expectations, we delivered strong top-line year-over-year growth. This helped fuel improvements in both gross profit and adjusted EBITDA margins. We also had another quarter of strong free cash flow generation. Leah will go through more of the specifics in her comments. Our Veridigm business is uniquely positioned in today's healthcare IT landscape as one of the only companies generating meaningful top-line growth, 25-plus percent EBITDA margins, and mid-teens free cash flow yield. We achieve these unique results because of our unique three-sided network serving providers, health plans, and life science companies. Each of the three legs of this stool are codependent and mutually reinforcing, and each contributes materially to our overall performance. Our provider network includes approximately 80,000 physicians that we serve directly with our portfolio of clinical, financial, and patient engagement tools. And this extends to approximately 300,000 through multiple partnerships that extend our health plan and life sciences relationships. Our health plan network represents a total of nearly 35 million members and will expand significantly when our recently announced relationship with the Social Security Administration goes live later this year. As Tom will highlight in more detail, we continue to expand our offerings to these clients in areas such as risk analytics and reporting, gaps in care closure and other clinical data exchanges, claim submissions, and other financial data exchange. And our Life Sciences Network includes linkages to the largest pharmaceutical companies in the market, either directly through our own data and real-world evidence studies, or indirectly through partners who link our data to larger data sets and through large media agencies. Again, Tom will provide some further color on momentum around this network that we achieved during the quarter. Collectively, I feel very good about the differentiation we have achieved with our businesses over the last five years of effort, and our execution was very good during the first half of this year. If we continue to execute with the same level of focus and intensity, I feel confident that we can maintain our competitive distinctiveness. Now, a few thoughts on capital allocation. As you can see from our press release, we were very active in the second quarter repurchasing shares in the open market. Notwithstanding our superior financial results, we traded a single-digit EBITDA multiple, one of the lowest in all of healthcare IT. So as long as that paradox continues, you can expect us to continue to be opportunistic around repurchases. At the same time, the macro environment has obviously created a valuation reset and refocused the market on the reality that cash is king. So I expect that some quality assets will become available at more attractive prices, and I expect that we could be a good home for some of those assets. Fortunately, with nearly $300 million of net cash on our balance sheet, an undrawn credit facility of $700 million, and a business that is producing mid-teens free cash flow yield, it is not a case of either or for us, and we do not have to choose between one of those two paths. Expect us to be patient, expect us to be opportunistic, and expect us to deploy capital in a way that we believe is in the best long-term interest of our shareholders. Finally, let me share some thoughts on what we expect ahead. We are maintaining our revenue guidance for the year rather than increase it simply because we have a very tough comp in the fourth quarter. As you can see in Table 9 from the press release, our provider business line had a pretty big spike in fourth quarter of last year, reflecting a large license sale. We knew that when we set our guidance for the year, and so the year is playing out almost exactly how we expected it. Q3 is traditionally a softer selling period, and that is generally followed by a stronger Q4. We expect the same this year, and so from an overall P&L perspective, I expect Q3 to look very similar to Q2, and then I expect a nice sequential uplift in the fourth quarter. So to wrap up, I'm proud of our first half performance, both operationally and as well as financially. And we have a solid foundation as we exit the first half and move into the second half of 2022. So with that, let me turn the call over to Tom Langan, our new president and chief commercial officer.