Ontrak, Inc.

Ladies and gentlemen, thank you for standing by, and welcome to the on-track fourth quarter 2021 earnings conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during this session, you will need to press star then one on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star then zero. I would now like to turn the conference over to your speaker for today. Caroline, Paul, you may begin.

Thank you, and thank you all for participating in today's call. Joining me today are Jonathan Mayhew, Chief Executive Officer, and Brandon Laverne, Chief Financial Officer. Earlier today, OnTrack released financial results for the fourth quarter and year ended December 31, 2021. A copy of the press release is available on the company's website. Before we begin, I would like to make the following remarks concerning forward-looking statements. All statements in this conference call other than historical facts are forward-looking statements. The words anticipate, believes, estimates, expects, intends, guidance, confidence, targets, projects, and some other expressions typically are used to identify forward-looking statements. These forward-looking statements are not guarantees of future performance but may involve and are subject to certain risks and uncertainties, other factors that may affect ONTRAC's business, financial condition, and other operating results, which include but are not limited to the risk factors described in the risk factors section of the Form 10-K and Form 10-Q as filed with the SEC. Therefore, actual outcomes and results may differ materially from those expressed or implied by these forward-looking statements. OnTrack expressly disclaims any intent or obligation to update these forward-looking statements. With that, I'd like to turn the call over to Jonathan.

Thanks, Carolyn. Good afternoon, everyone, and thank you for joining us. In the President's State of the Union Address on March 1st, he laid out a plan to address the nation's mental health crisis by strengthening system capacity, connecting more Americans to care, and creating a continuum of support to address mental health holistically and equitably. Anyone who's tried to navigate the behavioral health care system in this country knows that primary care providers, health plans, and treatment specialists struggle to communicate with each other, which is heightened anxiety for individuals who are already suffering with behavioral health issues. They may simply give up. The launch of OnTrack's new provider integration platform helps address the challenges of system capacity, access to care, And the need for a continuum of support our provider integration platform is just one of the important steps we took during the fourth quarter of 2021 to prepare the company for accelerated growth and profitability. The new on track management team has continued to expand and diversify our sales pipeline across multiple industries. From higher education to hospitals, pharmaceutical and manufacturing, we anticipate positive outcomes from our ongoing discussions with multiple national health plans, health retailers, managed behavioral health organizations, employers and provider clinics. We've signed a new contract with a tech-first company for LifeDojo Behavioral Health Program and we are in advanced discussions with the State University to serve the well-being needs of their faculty and student population. We've begun implementation of our industry-leading AI-enhanced clinical model, and we anticipate signing contracts with multiple partners very shortly to launch our own high-quality behavioral health provider network. Our advanced provider integration platform, powered by a behavioral health industry leader, NetSmart, enables us to potentially communicate with over a half a million behavioral health providers already on NetSmart and also with any electronic health record system anywhere in the nation. This new collaborative care platform positions us to speed up access and scale cost effectively as we meet the growing needs of our new customers. Importantly, we also have a path to profitability that contemplates positive monthly EBITDA in the first quarter of 2023 with positive operating cash flows a quarter later. In 2022, three growth drivers will be our focus. Number one, a new capital structure which supports our path to financial strength and profitability. Number two, a robust and diversified portfolio of current and new customers comprising health plans, employers, health retailers, managed behavioral health organizations, healthcare organizations, and associations and providers. A significantly higher level of collaborative care achieved through integrated relationships with treatment professionals on our own provider network and the networks of our customers and through the simplification and automation of data exchanges between providers, on-track care coaches, PCPs, and members. Brandon will share more details on our capital structure and path to profitability in a moment, so I'd like to share more with you on our customer portfolio and our roadmap for provider integration and collaborative care. Let's start with customers. We are deeply grateful for the ongoing partnership and support of our health plan and employer customers. We are working with these customers to expand the markets we serve together, partnering on new government contract opportunities, helping close gaps in care, and delivering more mobile and digital solutions that reduce disparities by connecting individuals to the behavioral health care they need across all socioeconomic, geographical, and disease states. We are proud to have signed a three-year contract with our largest employer customer, a highly respected technology company, for expanded mental health and well-being support for their employees in 39 countries. We've made steady progress on our sales pipeline since our last earnings call. We are now in active conversations with 16 health plans across the country, potentially representing millions of lives nationally. The bulk of our sales pipeline continues to be government, lines of business, and over 90% of our initial meetings with prospects are resulting in follow-up meetings. No prospect has fallen out of our pipeline since the last earnings call. While every prospect will not ultimately advance to a signed contract and the speed at which customers move through the pipeline is still lower than we would like, we are encouraged by the quality of the conversations and their fit with our capabilities. We are nearing an agreement to exchange data with a prominent multi-state health plan whose total footprint covers millions of lives. We are also co-developing a term sheet with a large provider network that needs to supplement their onsite behavioral health services through our care coaches and AI-infused interventions. The partnerships that we are now discussing with a number of health retailers and clinics are good examples of how we are finding strategic ways to bring our value proposition to new markets. We are exploring opportunities to enhance onsite clinics and retail settings with behavioral health solutions that can better support individuals with chronic disease burden. OnTrack is well-positioned to enable these organizations with large footprints to access our care coaches and behavioral health providers through our mobile app, telehealth engagement, and support in-person visits as an integrated offering to the local community. This enables us to be a strategic partner in advancing the use of onsite and telehealth solutions through new channels not tied to specific health plans. Healthcare associations are another new category opportunity for OnTrack. We've seen interest in our solutions with healthcare associations that serve frontline hospital employees. To that end, we are in discussions with two associations, each representing a significant number of hospitals, and have just submitted a statement of work for one of them. Another of our new category of opportunities is professional employment organizations, or PEOs. There is strong interest in our LifeDojo solution for a large PEO with 8,000 client companies serving over 400,000 employees. We are all encouraged by the reception to on-track programs in the higher education industry. Especially to our enhanced life dojo mobile well being solutions for students and faculty a 2021 Mayo clinic study notes that 44% of college students reported having symptoms of depression or anxiety and yet 75% of struggling students are reluctant to seek care. We believe that LifeDojo track record of delivering high levels of user engagement and improved health habits translates well to the student populations. Our customers tell us that OnTrack Health stands apart in an otherwise crowded marketplace. A 2020 Milliman study notes that 5.7% of U.S. adults with chronic conditions have an unmet need for behavioral healthcare, accounting for 44% of the total healthcare spend. We continue to focus on this unaddressed, high-acuity, high-cost, complex population with significant comorbidities that drive up the cost of medical care. There are many digital solutions in the market, but they have difficulty matching our system of stratifying members to ensure that they receive the specialist care they need and reducing healthcare inequities through high-touch coaching, AI-infused interventions over sustained periods of time. And as we indicated during the last earnings call, we are offering prospects competitive, flexible pricing models that yield attractive ROIs. We think it's possible to sign several customers in 2022 with that revenue being realized in the second half of 2022 and more prominently in 2023. Now I'd like to share more about our roadmap for achieving a significantly higher level of integrated collaborative care. As I mentioned earlier, the launch of OnTrack's new provider integration platform addresses the challenges of system capacity, access to care, and the need for a continuum of support. Our new ability to directly message primary providers and the bidirectional exchange of clinical notes means that OnTrack's board-certified care coaches can reduce the burden on treating professionals. We can stratify members so that they can be quickly referred to the right specialist. Our care coaches also provide motivational and counseling in between visits to specialists, which heightens member engagement and lessens the likelihood of missed or canceled appointments, which creates strain on an already overburdened mental health system. We recently announced significant innovations in our AI capabilities that enable us to infuse machine learning into the entire member journey, not just upfront identification and eligibility. We believe this is the first to market capability unmatched by any of our competitors. OnTrack will also be the first behavioral health company to use NetSmart's care router service, which speeds up timeliness of access to specialist providers. We will use machine learning to better match members with coaches and providers, and natural language processing will give our engagement specialists and care coaches real-time information designed to optimize their interactions with members. AI-infused measurement feedback assures robust clinical outcomes and cost efficiencies on both an individual and a population health level. I'd now like to turn it over to Brandon Laverne, our Chief Financial Officer.