Tabula Rasa HealthCare, Inc.

Good day, and thank you for standing by. Welcome to the third quarter 2022 Tabula Rasa Healthcare Inc. Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you need to press star 1-1 on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Frank Sparacino. Please go ahead.

Good morning. This is Frank Sparacino, SVP of Investor Relations and Corporate Development for Tabula Rasa Healthcare. The company intends to avail itself of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Certain statements made during this call will be forward-looking statements within the meaning of that law. These forward-looking statements are subject to risks, uncertainties, and other factors that could cause Tabula Rasa Healthcare's actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include our ability to adapt to changes or trends within the market for healthcare in the U.S., a significant increase in competition from a variety of companies in the healthcare industry, developments and changes in laws and regulations, including increased regulation of the healthcare industry through legislative action, and revised rules and standards, and the extent to which we are successful in gaining new long-term relationships with clients or retaining existing clients. For additional information on the risks facing tabula rasa healthcare, please refer to our filings with the SEC, including the risk factors section of our 10-K filed on February 25, 2022, and are 10Q to be filed shortly. When we discuss our results on this call, unless indicated otherwise, we are referring to results from continuing operations. For additional information on our results from discontinued operations, please refer to the financial statements contained in the earnings release issued on November 3, 2022, and the notes to the financial statements to be included in our 10Q for the third quarter of 2022. A recording of this call is accessible through a link on the investor relations page of our website. I will now turn the call over to Brian Adams, President and Interim CEO of Tabula Rasa Healthcare. Thanks, Frank.

Good morning and thank you for joining us. We've delivered another solid quarter with third quarter revenue of $77.1 million which was 5% ahead of the midpoint of our guidance range for the third quarter provided on August 4th. In our carevention healthcare division, which represents our core PACE business, revenue increased 17% versus a year ago during the third quarter and 18% through the first nine months of 2022. Our growth from existing and new PACE centers is being driven by a combination of factors, including one, a growing number of seniors recognizing the benefits of the PACE model and enrolling with our existing clients, two, existing states expanding PACE service areas, and three, new states authorizing PACE services. In short, we have a strong foundation to build upon as we head into 2023. Tom will provide a deeper dive into our financial performance following my comments. Since assuming my new role in September, I've spent a significant amount of time meeting with our customers directly and interacting with customers at a few important events. In late September, we hosted our care kinesis clinical advisory panel meeting with attendees including taste medical directors from existing customers as well as prospects. And in early October, the National Taste Association, or NPA, held its annual conference in Seattle. where I had the opportunity to spend time with customers, partners, prospects, and employees. There are a couple important takeaways that I want to share based on my interactions with customers over the last several weeks. First, we have longstanding and strong partnerships with our PACE customers, resulting from the benefits they are realizing from our value-focused service offerings. In some cases, these relationships go back more than 10 years. This has allowed us to maintain high retention rates year after year. Second, we continue to have a dominant position in the market, currently serving more than eight out of every 10 PACE participants across the country with one of our core services, which creates opportunities as new organizations enter the market. Third, the PACE market is expanding with interest from a range of healthcare organizations focused on value-based care. In the first half of 2022, Both Missouri and Kentucky opened their first PACE centers, and in August of this year, Illinois selected eight organizations in five regions of the state to begin providing services by 2024. Among these eight organizations are existing PACE operators, an integrated health system, a federally qualified health center, and one of the leading primary care providers serving seniors, Oak Street Health, which speaks to the diverse and growing interest in PACE. I'm pleased to report that we already have relationships with many of these organizations. Looking toward the future for PACE, I wanted to highlight NPA's PACE 200K project, which will launch in 2023 with the goal of growing the program threefold by 2028. We believe this will result in a TAM in excess of $3 billion for Tabula Rasa. An October 2022 publication from the Bipartisan Policy Center provides a number of recommendations that would further accelerate PACE adoption. A few examples include simplifying and shortening the application and review process, which can take more than two years in some cases, expanding enrollment to include Medicare only participants and other high need, high cost populations, and raising consumer awareness through relaxing restrictions on marketing and improving the Medicare.gov website to make it easier for seniors to access information about PACE. We have posted a link to the publication on our IR website for your access if you'd like to review in more detail. In closing, I'm excited about our expanding team and changes underway at the company. One important addition to the team is April Gill, our new Chief Commercial Officer. In this newly created role, April will lead Tabula Rasa's go-to-market vision, overseeing strategy, product commercialization, marketing, communications, sales, and account management. April has a wealth of healthcare experience from startups to large organizations and a proven track record of driving client success, growth, and profitability, all a focus for Tabula Rasa. Last quarter, I talked about the large opportunity ahead of us represented by the more than 12 million dual eligible individuals, specifically with at-risk provider groups and health plans managing high cost and complex patients. We feel April's background is a perfect fit for advancing our efforts in these adjacent markets outside of Pace. April joined us in October, and we're thrilled to have her as part of the team. Additionally, as part of our recent leadership transition, we have three new board members, and I'd like to recognize their early contributions. They have already had a meaningful and positive impact. I'm looking forward to working with this newly constituted board to shape the future strategic direction of the company, and we'll be sharing that with you over the coming months. I will now turn it over to Tom to review our financial performance.