Streamline Health Solutions, Inc.

Greetings and welcome to the Streamlined Health Solutions fourth quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Jacob Goldberger, Director of Investor Relations, FP&A. Please proceed.

Thank you for joining us for the corporate update and financial results review of Streamline Health Solutions for the fourth quarter fiscal year 2021, which ended January 31st, 2022. As the conference call operator indicated, my name is Jacob Goldberger. Joining me on the call today are T. Green, President and Chief Executive Officer and Chairman of the Board, Ben Stilwell, President and CEO of Evaluator, Javad Shaikh, President and CEO of Ablead, and Tom Gibson, our Chief Financial Officer. At the conclusion of today's prepared remarks, we will open the call for a question and answer session. If anyone participating on today's call does not have a full-text copy of our press release announcing these results, you can retrieve it from the company's website at www.3MindHealth.net or from numerous financial websites. Before we begin with prepared remarks, we want to be sure we are clear for everyone on the record how certain information which may be provided today, as with all of our earnings calls, should be viewed. We therefore submit for the record the following statement. Statements made on this conference call that are not historical facts are considered to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These are subject to risks, uncertainties, assumptions, and other factors that could cause actual results to differ materially from those we may discuss. Please refer to the company's press releases and filings made with the U.S. Securities and Exchange Commission, including our most recent foreign 10K annual report, which is on file with the SEC for more information about these risks, uncertainties, and assumptions and other factors. As always, we are presenting management's current analysis of these items as of today. Participants on this call should take into account these risks when evaluating the topics we will discuss. Please note, Streamline Health is not undertaking any commitment or obligation to publicly revise any such forward-looking statements made today. On today's call, we will discuss non-GAAP financial measures such as adjusted EBITDA and unaudited figures related to our acquisition of AdLead. Management uses these measures to help provide better insight into our financial performance. However, certain items of income and expense are not included in these measures, so these calculations may differ from those which another entity may utilize in calculating their own non-GAAP measures. To help you compare these amounts on consistent terms, please refer to our website at www.streamlinehealth.net and our earnings release for a reconciliation of such non-GAAP measures to the most comparable GAAP measures. I would now like to turn the call over to T. Green, President and Chief Executive Officer.

Go ahead, T. Thank you, Jacob, and thank you all for joining us this morning. As a reminder, and as we have previously announced, on August 16, 2021, we acquired Avalit, and going forward, their financial performance will be included in our GAAP results from that date. With that, I'll get started. Beginning with the financial overview of fiscal year 2021, we ended the year with roughly $6.1 million of new SAS bookings and $13.9 million of total new bookings. We believe operating conditions within acute care hospital systems are improving as COVID's impact lessens. As a result, we expect to see an accelerated pace of bookings for both Avalib and evaluator solutions. Going forward, we expect our bookings performance to be an average range of $3 to $5 million per quarter through fiscal 2022. We have already achieved this goal for our first fiscal quarter. On an unaudited pro forma basis, assuming we had owned Avalit for an entirety of this and last year, total revenue for the fiscal year 2021 was approximately $22.6 million. a 15% increase compared to approximately $19.7 million during fiscal 2020. Pro forma, unaudited SAS revenue totaled approximately $11.3 million in fiscal 2021, an 82% increase compared to approximately $6.2 million during fiscal 2020. We are pleased to see the significant expansion of our SAS revenue, We continue to focus our resources on the growth of our SAS business. Moving now to our GAAP consolidated financial results for the 12 months ended January 31st. Total revenue for fiscal year 2021 was $17.4 million, a 53% increase from fiscal 2020. Notably, our SAS revenue grew 121% from 2020 to 2021. Recurring revenue accounted for 71% of total revenue in fiscal 2021 compared to 73% for fiscal 2020. We have successfully grown our recurring revenues despite the difficult sales environment our industry has experienced for the past two years as a result of the COVID pandemic. Adjusted EBITDA for fiscal 2021 was a loss of $2 million compared to an adjusted loss of $1.9 million in fiscal 2020. As of January 31st, 2022, we had $9.9 million of cash on hand with $10 million of debt related to a term loan, which we entered into with Bridge Bank, subsequent to the acquisition of Avalit. As a reminder, to close the Avalit acquisition, we utilized approximately $12.5 million of our cash and issued approximately $6.5 million of restricted stock to the sellers. In addition to the closing consideration, We contracted and earned out over the next two sequential 12-month anniversaries of the closing of Avalie that is tied to Avalie's performance and includes a combination of cash and restricted common stock. Our cap table remains clean with only one class of common stock. Tom Gibson, our CFO, will provide additional details about our financials during his prepared remarks. As a company, we continue to follow a simple formula for successful growth. Innovation plus service equals growth. Our goal is to back up our innovative industry-leading solutions like Evaluator and RevID with world-class client success teams to create a community of clients that enhances our potential for long-term revenue growth. Today, our flagship solutions, Evaluator and RevID, are leading an industry movement to help our hospital clients capture 100% of the revenue they have earned for the care they have provided through revenue integrity validation before a bill goes out the door. Our focus on shifting revenue integrity practices to the front end of the revenue cycle yields significant return on investment for our clients and is driving a rapid SAS revenue growth. Over the course of the past six months, we have made significant investments to upgrade Evaluator's direct sales force. And most recently, we brought Amy Severo on board as Evaluator's new chief growth officer. Amy is an industry veteran with four decades of experience improving the financial well-being of healthcare organizations, including 28 years within Thrive. Joining us on today's call are Ben Stilwell, President and CEO of Evaluator Solutions, and Javad Shaikh, President and CEO of Avalanche Solutions, who will be giving updates on their respective businesses. Ben is a motivated leader poised to take Evaluator through its growth phase. Ben has been with Streamline since 2013, and during his tenure has touched every part of the evaluator business. Most recently, Ben was the leader of evaluators' client success function. He is directly responsible for creating an industry-leading customer service experience, enlisting numerous referenceable clients. Ben's relationship with our clients makes him the perfect fit for the leadership position at evaluators. You were previously introduced to Javad Shaikh, President and CEO of Avalit Solutions. Javad and Avalit have made tremendous progress in adopting our winning processes. I'll now turn it over to Ben to introduce himself and provide an update regarding Evaluator. Ben?