Marpai, Inc.

and thank you for standing by. Welcome to the MARPE second quarter 2023 earnings conference call. 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 second quarter 2023 call. With me on the call today are MARPE's chief executive officer, Emundo Gonzalez, and chief financial officer, Yoram Bidbrink. Before turning the call over to Linda, please note that we'll be discussing certain non-GAAP financial measures that we believe are important when evaluating market-based 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. The forward-looking statements are subject to risks, 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 statements on our press release and our filings with the SEC, all of which are available at marpehome.com. And with that, I will turn the call over to MARPE's CEO, Emundo Gondal. Emundo?

Thanks, Simon. Good morning, everyone, and thank you for joining us. It's a pleasure to be here to discuss the financial results of the second 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 as well as our strategy. LaPay is reinventing how employers around the country manage their spending on healthcare. This is important because healthcare costs are often the second largest expense for employers, second only to payroll. Our business revolves around our ability to predict and help modify risk in healthcare on behalf of our clients, who are employers that are self-insured. That is, they have chosen to pay for health expenses of their employees and their families as they consume healthcare services versus by buying traditional health insurance. We manage these employers' health plans from paying their employees' claims to providing access to the top national carriers like Aetna and Cigna to caring for their employee populations via nurse-led management. We do all of this in support of our value proposition, delivering healthier outcomes as a mechanism to control healthcare costs. This activist approach to healthcare works. Being proactive with a member who has just been diagnosed with a chronic condition, for may prevent further complications in the months, quarters, and even years to come. This means higher health outcomes for members and lower costs for our employer clients. That's what we do. Now, our revenue was $10.05 million during the second quarter compared to $9.7 million during the first quarter. Our adjusted EBITDA was negative $5.5 million but excluding severance and unused facilities, it was negative $4.1 million. We can compare this to our first quarter's adjusted EBITDA of $6.7 million and adjusted EBITDA, excluding severance and unused facilities, of negative $5.9. Thus, EBITDA from our ongoing operations improved pretty dramatically by 31% as we continue to implement our integration plan of Maestro Health. and aggressively cut costs. I would further note that we have managed to sublease the two large offices that we inherited from Maestro Health, so cash outlays related to these commitments will be subsidized by these multi-year subleases. We continue to report on adjusted EBITDA and on adjusted EBITDA excluding severance payments and leases going forward. as I think it gives our shareholders a view into the effects of our consolidation activities and drive towards profitability. I want to remind you of our focus, which is simple. First, keep our expense budget and adjust fast if the top line is falling behind. I'm happy to report that we are 18% ahead of our revenue budget in Q2 and 12% ahead of our EBITDA budget. sell to customers we already have. There's a great opportunity to upsell products we have to clients we already have. For example, many of our legacy Marpe clients 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 MarpeRx, our own pharmacy benefit manager. And of course, we continue to see great opportunity in MarpeConnect, which is our own value-based care network. We hope to see increased revenue from this from our existing base of clients in 2024. As a reminder, Marpe Connect brings together the best of the best digital providers, which have three common features. One, they have a great solution that is clinically validated and targeting a high-cost area for our employers, such as diabetes or musculoskeletal issues. They have agreed to put their fees at risk against delivering health outcomes for our clients. And three, they have published a historical ROI, which our clients can lean into. Marpay Connect has been rolled out to our initial clients, and we expect further rollout and usage as clients go to open enrollment at the end of the year. We see this product as a vehicle for our clients to save money by directly attacking the high cost areas within their plans. And of course, the wonderful thing for members is better health. This is one item that will increase our per employee per month revenue in the quarters to come as more and more members sign up for these solutions. I've mentioned our two levers to get our business, our core business, to break even in profitability. The mantra of 50 by 50, meaning $50 of net revenue, excluding pass-through items on a per-employee per-month basis, and 50,000 employee lives. At that level, our core business breaks even. We are already north of 40,000 employee lives, and in Q2, our per-employee per-month net revenue, excluding pass-through items, was $51. We're getting there. More products adopted get our per employee per month revenue up and we're committed to selling more into the clients we already have. On the other lever, more employee lives to manage, I wanted to let you know about our new offering called Marpay Vitality. This is our self-insured health plan in a box or a virtual box, specifically targeting smaller employers. Remember that with the Affordable Care Act, Smaller businesses with 50 or more employees have to provide health insurance. Now, what has happened in the last years is that traditional insurance has become so expensive that smaller employers often can simply not afford it. We are seeing a massive influx of smaller businesses, those with approximately 100 employees or less, coming to self-funding for the first time. Marpay Vitality makes it easy for these businesses to get self-insured we have created template health plans to select and included all the ancillary services like access to the best networks compliance banking telehealth and we've also partnered with leading captives and carriers to provide stop-loss insurance all in one solution for smaller businesses that may not have a full hr department we can implement these in days We expect thousands of new employee lives from this channel in the quarters to come. Now, let me turn it over to Yoram Bibring, our CFO, for a more detailed view of our financials in Q2.