Marpai, Inc.

Good day, everyone. Thank you for standing by. Welcome to the MARPE first quarter 2023 earnings conference call. All participants are currently in a listen-only mode. If you should need operator assistance, you may press star and zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one. To withdraw your questions, you may press star and two. Please also note today's event is being recorded. At this time, I'd like to hand the floor over to Simon Lee, Vice President of Marpay. Please go ahead.

Thanks, Operator. Welcome, everyone, to our first quarter 2023 earnings call. With me on the call today are Marpay's Chief Executive Officer, Emundo Gonzalez, and Chief Financial Officer, Yoram Bibrink. 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 reconciliations 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 Reform Act of 1995. Such forward-looking statements are subject to risk uncertainties and other factors that could cause the actual results for 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 marpehealth.com. And with that, I will turn the call over to Marpe's CEO, Emundo Gonzalez. Emundo?

Thanks, Simon. Good morning, everyone, and thanks for joining us. It's a pleasure to be here to discuss the financial results of the first quarter of 2023. As I've done in the past, let me just take one minute for some of you that are joining for the first time to review who we are and our strategy. Marpay is a technology company which is reinventing how employers around the country provide health benefits to their employees. We work with self-insured employers that elect not to buy traditional health insurance for their employees, but rather they self-insure. We create and manage the health plans for our 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, or hospitals around the country, just as one would with health plans from a large insurance company. Now, we make money from management fees related to administering our clients' health plans. which include managing all the healthcare claims of their employees, reviewing these, and eventually paying them on behalf of our clients. We also have a portfolio of ancillary services that add to our revenue. The ancillary services include care navigation and care management for members of our plans. We call employees of our clients and their families members. And these services often make a difference in their healthcare journeys. For almost 200 clients across the country, Marpe's value proposition is clear. We save them money by engaging our members proactively in a manner that improves their health. And as I've said before, yes, healthier employee populations cost our clients less. That's what we do. We reached $9.7 million of revenue during the first quarter of 2023. Our EBITDA was negative $6.7 million. but excluding severance and unused facilities, it was negative 5.9 million. We'll report on this metric going forward as it gives our shareholders a view into the effects of our consolidation activities and our drive towards profitability. During the first quarter, we continued to execute our integration plan for Maestro Health, an acquisition which we completed in Q4 of 2022. We have eliminated duplicate positions, consolidated contracts, eliminated most contractors, and outsourced certain functions. All this has been in search of greater efficiency given our new scale of over 40,000 employee lives. We are executing per our plan and per our budget. Given the cost of severances and other breakup costs, public investors will begin to see the effects of this consolidation in Q2 and even into Q3. Our goal is to reach the scale required to achieve a profitable EBITDA level of operations within 2024. How are we doing this? Well, our focus is simple. First, keep to our expense budget and adjust fast if the top line is falling behind. Mind you, our revenue is pretty visible given the nature of our contracts. Second, sell to customers we already have. There's a great opportunity to upsell products which we have to clients we already have. For example, many of our legacy Marpay clients before the acquisition do not yet have care management provided by us. But with the acquisition of Maestro, we now have an internal care management company. We also have MarpayRx, our own pharmacy benefit manager. There's plenty of product for us to meet or even beat our goal of having at least $50 per employee per month in every life we manage. Some investors ask me what they should be looking for in terms of key metrics. I would look at three things. First, as I mentioned, our adjusted EBITDA loss excluding these discontinued operations. This will show you our journey towards profitability. Supporting metrics, of course, are employee lives we manage, which we report, and the net revenue per employee per month that we earn. In closing, let me say a word about the future. During our last call, I described how we're deploying AI and other technology to build a unique ecosystem of value-based care vendors. These are the best of the best clinical vendors out there. They represent evidence-based solutions that make a difference in our members' lives. These members may have chronic conditions like diabetes. We have gathered these specific solutions to provide a marketplace for our members. What's our role in all this? As I've mentioned, think of a mini Amazon in healthcare. We point you to the right solution that's evidence-based that will deliver results, such as lower A1C, for example, for you as a member. But for our clients, the self-insured employers, it means lower overall cost of healthcare, as healthier populations of employees and their families, of course, cost less. And these vendors are also value-based, meaning they have put their fees at risk against the success of these programs. We are deploying this ecosystem throughout our joint customer base during 2023. I invite you to watch this space. And now let me turn it over to Yoram Bibring, our CFO, for a more detailed view of our financials in Q1. Yoram?