SOC Telemed, Inc.

Good morning and welcome to SOC Telemed's third quarter 2021 earnings conference call and webcast. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Steve Rubis, Vice President of Investor Relations.

Thank you. Good morning and thank you for joining our conference call. With me on the call today are Dr. Chris Gallagher, Chief Executive Officer, and David Fletcher, Interim Chief Financial Officer. On today's call, Chris and David will provide an update on SSC Telemed's business, as well as a review of financial results for the third quarter of 2021. The news release detailing these results is available on the company's website. A replay of this call will also be archived on the company website. During the conference call, we will be discussing certain non-GAAP financial measures that we believe are important in evaluating performance. Details on the relationship between these non-GAAP measures to the most comparable GAAP measure and reconciliation thereof can be found in the press release that is posted on the investor relations page of the company's website. Also, please note that certain statements made during today's call will be forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results for SOC telemed to differ materially from those expressed or implied in this call. For additional information, please refer to the cautionary statements in the press release and filings with the SEC, all of which are available on the investor relations page of the company's website. I will now turn the call over to Chris.

Thank you, Steve. Good morning, and thank you to everyone joining our earnings call today. I am pleased to provide an update on our third quarter performance. David Fletcher, our interim CFO, will provide greater detail on our financial and operating performance. Before turning the call over to David, I would like to provide an update on our go-forward strategy, our restructuring efforts, and an overview of our third quarter performance. Our goal is to maintain and grow our position as the leading acute care telemedicine provider through our optimized technology-enabled clinical services. As we think about the company's key objectives moving forward, we have identified four areas of focus. First is integrating the legacy SSC and access physicians' clinical services. Second is bringing focus to very specific areas of telemed IQ development, in standardizing all programs going forward on the access telemedicine cart. Third is to broadly apply the most successful go-to-market processes across the newly integrated sales team. Fourth is refocusing the customer service reps on lead generation and cross-sell opportunities. We believe that continued focus and action across these areas will drive opportunities for improvements in revenue growth, bookings growth, gross margin, and EBITDA over the coming quarters. Our third quarter results illustrate resiliency and focus on three key areas as we achieve revenue growth, bookings growth, and improved our liquidity position. Revenues totaled $26.7 million, growing 76% year-over-year, demonstrating a focus on execution. Bookings totaled $9 million, growing 247% year-over-year, led by strong cross-sell activity driven by increased service line diversity. Consult volumes grew 76% year over year. Our third quarter performance allowed us to improve our liquidity position as we have drawn down an additional $12.5 million from our credit agreement with SLR. Improved operating results enabled us to renegotiate the terms of the SLR credit agreement. David Fletcher will provide further details regarding the company's cash positions. The third quarter was the beginning of a company-wide transformation, which remains in process. Now, just over 60 days into the role as CEO, this has been a period of in-depth learning as I've held nearly 30 feedback sessions, listening to our clients, our providers, and our employees. While working through a period of enormous change and disruption, the company demonstrated resiliency and generated solid third quarter results. During our introductory call with investors in September, we identified two key areas of focus, driving greater efficiency across the organization and accelerating revenue growth. The implementation of these plans is expected to result in the non-clinical headcount reduction of roughly 12%. We expect cost savings between $7 million and $9 million on an annualized basis starting in 2022 associated with these efforts. Our corporate restructuring refocuses the organization as a technology-enabled clinical service organization. Such an organization approaches the market opportunity through a clinical lens, with an intense focus on patient, provider, and their shared experience through technology. We now deliver 11 clinical service lines to both inpatient and emergency department settings via the TeleMed IQ platform and our proprietary telemedicine carts. This allows us to solve hospital's most common challenges, including optimizing medical staff resources, addressing physician shortages, eliminating the need to transfer high acuity and complex patients, and keeping care local. The restructuring process focused on two primary areas. First, we aim to improve operational performance through a flatter and more efficient management structure. Second, We identified the most successful strategies across each legacy organization to guide our future transformation around best practices. These are the first steps to improving the operations of the company. During the restructuring process, we conducted an enterprise wide analysis of legacy process and systems. The analysis identified the best practices across both legacy organizations. Access physician strengths included the sales process, CART technology, and revenue cycle management. SSC strengths revolved around staffing and gross margin within the emergent neurology programs and the credentialing, licensing, and privileging process, as well as the TeleMed IQ consult management platform. We will spend the next several quarters diligently and thoughtfully integrating these systems and processes. The second objective of our restructuring process is building a plan to accelerate revenue and bookings growth at SSC TeleMed. An important driver is the repositioning of the company as a tech-enabled clinical services organization. Our clients face clinical challenges and provider shortages. In response, we are most successful when we lead with clinical solutions supported by our technology. We believe that establishing a clinically focused organizational culture is key to accelerating our growth. Our go-to-market strategy is an important component of driving bookings and revenue growth. As part of our restructuring efforts, we spent significant time as a management team evaluating the legacy sales organizations. We have seven months of observational data regarding legacy sales performance as the two companies operated in parallel post acquisition. With that data guiding our direction, we will begin implementing the best go-to-market processes. There are a few details worth highlighting that illustrate the go-to-market changes between the two organizations. The first difference is the flexibility afforded to the sales team in service proposals to meet client needs. While each hospital opportunity may look the same on paper, each hospital represents a unique customer with very specific needs, resources, and culture. Historically, the legacy access physician sales process exhibited an ability to be flexible and adaptable in clinical service operations, tailoring workflows to align with client needs. Legacy SOC was primarily focused on delivering emergent neurology and emergent psychiatry consults within the emergency department, resulting in a more rigid workflow. Improving flexibility across the organization, especially in the neurology and psychiatry service lines, will make our technology-enabled clinical services platform more attractive to a larger number of hospitals. The second point of differentiation is the inclusion of clinical subject matter experts strategically throughout the sales process. Hospital sales opportunities require a sophisticated approach to appropriately scope and design clinical services through technology. Integrating clinical subject matter experts into all sales opportunities should improve sales outcomes over the long term. Going forward, the organization will endeavor to take every opportunity to convert not only new clients, but also existing clients to our proprietary carts. We believe that the cart represents one of the single most important touch points to drive cross-sell and upsell throughout hospitals. Our analysis showed that proprietary carts provide greater client retention over a technology agnostic approach and offer another access point from which to build dialogue with our current and potential clients, increasing the possibility of service line additions over time. In the third quarter, we added several new clients and benefited from several cross-selling opportunities. Our go-to-market strategy focuses on four areas, new clients, multi-site expansions, multi-specialty expansions, and enterprise programs. The bookings performance in the third quarter exhibited an even weighting between cross-sell and upsell. Service lines exhibited strength in bookings during the quarter, including neurology, hospitalists, critical care, psychiatry, and emergency medicine. In September, SSC Telemed and the OB-Hospitalist Group announced a collaboration combining OB-HG's leading OB-Hospitalist programs with SSC TeleMed's maternal fetal medicine experts. The combined OB-Hospitalist tele-maternal fetal medicine service offering will expand to additional OB-HG hospital sites nationwide. Medical claims share data provides a unique lens to assess where we currently stand on the telemedicine adoption curve. Current fair health estimates showed telemedicine claims to be roughly 4% of all medical claims. We believe current telemedicine share illustrates mainstream adoption and illustrates the multi-year growth opportunity ahead of us. In closing, I'm encouraged by the execution and momentum the organization displayed in the third quarter in the midst of organizational change. Our new management team is in place with David McCullough as our chief operating officer, and David Fletcher as our interim chief financial officer. SSC TeleMed represents a resilient and agile organization beginning to better execute on the telemedicine opportunity. We look forward to providing updates on our execution in future quarters. I will now turn the call over to David.