Marpai, Inc.

Good day, and thank you for standing by. Welcome to the MARPE fourth quarter and full year 2022 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Simon Lee, who is vice president with MARPE. Please go ahead.

Thanks, operator. Welcome, everyone, to our fourth quarter and full year 2022 call. With me on the call today are MARPE's Chief Executive Officer, Emundo Gonzalez, and Chief Financial Officer, Yoram Bibring. Before turning the call over to Emundo, please note that we'll be discussing certain non-GAAP financial measures that we believe are important when evaluating MARPE's performance. Details on the relationship between these non-GAAP measures to the most comparable GAAP measures and the reconciliation thereof can be found in the press release that is posted on our website. Also, please note that certain statements made during this call will be forward-looking statements, as defined by the Private Securities Litigation Reforms Act of 1995. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause the actual results of MARPE to differ materially from those expressed or implied on this call. For additional information, please refer to our cautionary statement in our press release and our filings with the SEC, all of which are available at MarpayHealth.com. And with that, I will turn the call over to Marpay CEO, Emundo Gonzalez. Emundo?

Thanks, Simon, and good morning to everyone, and thank you for joining us. It's a pleasure to be here to discuss our Q4 and full year 2022 financial results. For some of you that are joining for the first time, Let me just take one minute and review who we are and our strategy. Marpeza Technology Company, which is reinventing how employers around the country manage their spending on healthcare. Often this is the second largest expense for businesses outside of payroll. We work with employers that elect not to buy traditional health insurance for their employees, but rather they self-insure. What we do is create company health plans and manage them for our employer clients. Almost 100,000 people carry a Marpay card in their wallet, or often a digital card on the Marpay app, which they present to doctors' offices, pharmacies, and hospitals around the country, just as one would with health plans from Blue Cross or other large insurance companies. Our value proposition is simple. We save employers money by engaging our members proactively in a manner that improves their health. And yes, healthier employee populations cost our clients less. That's what we do. Our revenue comes from management fees that employers pay us to manage their health plans, as well as fees from a portfolio of ancillary services, including care management, our team of nurses who guide patients on their healthcare journeys. 2022 was a transformational year for MerPay. We closed the acquisition of Maestro Health in November 22, and this acquisition dramatically increased the size and scale of our business in both revenue and the number of employee lives whose healthcare we manage. At year end, we managed over 42,000 employee lives on behalf of approximately 188 self-funded employers across the country. To give you an idea of our new scale, last year we paid over 1.15 million medical claims, which cost over $462 million to our clients. Now, Maestro's business was quite similar to ours in terms of their core offering. It's also an administrator of health plans. It had similar clients, which are employers with hundreds of employees. and it had a long-term commitment to serving the members of its health plans. Because the businesses are so similar, we have the opportunity to gain efficiencies by eliminating duplicative positions, standardizing systems from two to one in most areas, and cross-selling products from each legacy client base. We have made much progress since the acquisition in all of these fronts, but there is still much work to do. Joram Bibring, our CFO, will give a detailed analysis of the results of Q4 and 2022 as a whole. But let me take a minute to describe the effects of our acquisitions on our revenue over the last few years and how I see 2023 developing. Our net revenues have gone from zero in 2020 to $14.2 million in 2021 due to our first acquisition and to $24.3 million in 2022, including the acquisition of Maestro for November and December 2022. We have given guidance on 2023 revenue to be between $34 and $35 million. Given the nature of our business, where clients enter into contracts with us of no less than one year, we have relatively good visibility on revenue. Now, 2023 is a foundational year where we are setting the groundwork to reach profitability in 2024. I've said before that my goal is to create a substantial public company that benefits our members, our clients, and of course our shareholders. So what should investors look for during 2023? In my mind, there are three big strategic items before us, and each is important as we reach toward profitability. First, We have an opportunity to grow our business based on clients we already have. During 2023, we are selling all the new products that we have gained via the acquisition of Maestro Health to the Marpe client base. I mentioned in previous calls that the per employee per month revenue, this is a key metric in our industry, at Maestro approaches $50, while in Marpe it is approximately $33.00. Our goal is to bring our total base up to $50 per employee per month. Second, investors can see the transformation of our business during 2023 looking at adjusted EBITDA excluding discontinued operations. This measure excludes severances, unused leases that are no longer necessary in our joint business, and other one-time expenses related to our integration of the two companies into one. We believe this metric will improve every quarter of 2023 as we continue to implement our integration plan. We'll be sharing this with you on future calls. Third, investors should also monitor the future, which we believe is all about value-based care, and see how we play a role in this. Let me explain. Venture capitalists have spent over $20 billion in recent years on some amazing healthcare companies that attack a particular disease or condition. These have spent much capital on solutions that reverse A1C for people with diabetes, for example. They have the products, the medical staff, and the data on efficacy. They also put their fees at risk and work with the largest employers in America. Now, they do this because they need a virtual insurance pool since they're putting their fees at risk. We've partnered with these companies to bring the solutions to the lower middle market, companies with 100 employees or so versus, say, 5,000 employees. We have made significant investments in AI and other technologies to create a marketplace for these solutions to our member base. Think of a mini Amazon for the healthcare space, one that matches your healthcare journey to the most appropriate evidence-based providers. Members love it because these solutions make them healthier. Employers love it because these vendors charge only on consumption. There are no fixed fees, and all these vendors have published ROIs. We have announced the creation of an ecosystem of very specific partners that are value-based, like Virta for people with diabetes, and Vori for people that are suffering from musculoskeletal issues. More are coming. This is a pillar for us in bringing better health to our members as a goal in itself, but the other beneficiaries, of course, our clients, the self-insured employers, will also have lower overall healthcare costs. As I mentioned, a healthier employee population costs less. More to come here. Let me turn it over to Yoram for a detailed overview of our financial results.