Streamline Health Solutions, Inc.

Hello, and welcome to the Streamlined Health Solutions first quarter 2022 earnings conference call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If you'd like to be placed into question queue in advance, please press star 1 on your telephone keypad. If anyone should require operator assistance, please press star 0 on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Jacob Goldberger, Director of Investor Relations. Please go ahead.

Thank you for joining us for the Corporate Update and Financial Results Review of Streamlined Health Solutions for the first quarter of 2022, which ended April 30, 2022. As 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 Stillwell, President and CEO of Evaluator Solutions, Javad Shaikh, President and CEO of Ablead Solutions, 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.streamlinehealth.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 Form 10-K 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 Ableaf. 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.

Thank you, Jacob, and thank you all for joining us this morning. Following my open remarks, Ben Stilwell, President and CEO of Evaluator Solutions, and Javad Shaikh, President and CEO of Avali Solutions, will be giving updates on their respective businesses, followed by a financial update from our CFO, Tom Gibson. As a reminder, on August 16, 2021, we acquired Avali, and their financial performance will be included in our GAAP results from that date. With that, I'll get started. Beginning with a financial overview of fiscal first quarter 2022, we ended the quarter with $8.9 million in new bookings, $8 million of which were SAS bookings. This made our first quarter of fiscal 2022 the best SAS bookings quarter in the company's history. The strong bookings results was highlighted by a 10-year agreement for Avali's industry-leading automated charge reconciliation solution, REBID. This was the first successful Rev ID sale completed under our VAR agreement with Cerner as opposed to our contracting directly with Cerner clients. This agreement is an outlier in terms of length of contract as compared to our historical contract terms. However, adjusting for this single 10-year agreement to a typical 3-year agreement, we still fit within our quarterly guidance of $3 million to $5 million of bookings for the first quarter of fiscal 2022. While we can't predict when other large signings like this may occur, we are encouraged by the outcome and what it means for potential additional contracts of this magnitude to drive upside in future periods. Overall, we are seeing operating conditions within acute care hospital systems improving as COVID's impact lessens and expect continued success in bookings going forward. We maintain our expectation that our bookings performance will be on average in the range of $3 to $5 million per quarter throughout fiscal 2022. Moving now to our GAAP consolidated financial results for the three months ended April 30th, total revenue for fiscal Q1 2022 was $5.9 million, 101% increase from fiscal Q1 2021. Notably, our SaaS revenue grew 141% year over year. On a dollar basis, recurring revenue increased 1.7 million or 76% from the prior year period. We have successfully grown our recurring revenues despite the difficult sales environment our industry has experienced for the past two years because of the COVID pandemic. On a pro forma basis, total revenue for Q1 2022 increased 7% and SAS revenue increased 5% from the prior year. Revenue growth on a pro forma basis is dependent on the timing of bookings and go-lives. The company expects year-over-year pro forma revenue growth to accelerate by the end of this fiscal year. First quarter 2022 adjusted EBITDA was a loss of $1.7 million. compared to adjusted EBITDA loss of $700,000 in first quarter of fiscal 2021. As of April 30th, 2022, we had $8 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 Abilene. 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. Both Avalit and Evaluator continue to improve the innovation and service functions of their respective businesses. Avalit is driving significant booking wins with the new and existing clients through its Cerner relationship, and the business is maturing rapidly under Javad's leadership. Evaluator has made rapid progress as well, Over the past nine months, we have made investments to extend Evaluator's reach to the professional fee environment and in its direct sales force and leadership team. In addition to inpatient and outpatient, the company is now testing Evaluator's use in the physician space, primarily for acute care health care organizations that code for certain physicians. Under the leadership of Evaluator's new chief growth officer, industry veteran Amy Severo, and with Ben Stilwell as CEO and President, we are confident that these investments will begin to yield results in the second half of 2022. I'll now turn the call over to Ben to provide an update regarding Evaluator. Ben?