CareCloud Inc (CCLD) 2023 Q3 法說會逐字稿

Welcome to the CareCloud, Inc. third quarter 2023 results conference call. (Operator instructions)

歡迎參加 CareCloud, Inc. 2023 年第三季業績電話會議。 （操作員說明）

I will now turn the call over to your host Nathalie Garcia, CareCloud's General Counsel. Miss Garcia, you may begin.

我現在將把電話轉給主持人 Nathalie Garcia，她是 CareCloud 的總法律顧問。加西亞小姐，你可以開始了。

Good morning, everyone. Welcome to the CareCloud third quarter 2023 conference call. On today's call Mahmud Haq, our Founder and Executive Chairman; Hadi Chaudhry, our Chief Executive Officer, President and the Director, and Larry Steenvoorden our Chief Financial Officer.

大家，早安。歡迎參加 CareCloud 2023 年第三季電話會議。在今天的電話會議上，我們的創辦人兼執行主席 Mahmud Haq 表示： Hadi Chaudhry 是我們的執行長、總裁兼董事，Larry Steenvoorden 是我們的財務長。

Before we begin, I would like to remind you that certain statements made during this conference call are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934 as amended.

在我們開始之前，我想提醒您，本次電話會議期間所做的某些陳述屬於經修訂的1933 年證券法第27A 條和經修訂的1934 年證券交易法第21E 條含義內的前瞻性陳述。 。

All statements other than statements of historical fact made during this conference are forward-looking statements, including without limitation, statements recording our expectations and guidance for future financial and operational performance, expected growth, business outlook and potential organic growth and acquisition. Forward looking statements may sometimes be identified with words such as will, may, expect, plan, anticipate, upcoming, believe, estimate or similar terminology and the negative of these term.

本次會議期間除歷史事實陳述外的所有陳述均為前瞻性陳述，包括但不限於記錄我們對未來財務和營運業績、預期成長、業務前景以及潛在有機成長和收購的預期和指導的陳述。前瞻性陳述有時可以用諸如將、可能、期望、計劃、預計、即將到來、相信、估計或類似術語以及這些術語的否定詞來識別。

Forward-looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. These statements reflect our opinions only as to the date of this presentation, and we undertake no obligation to revise these forward-looking statements in light of new information or future events.

前瞻性陳述並非對未來績效的承諾或保證，並受到各種風險和不確定性的影響，其中許多風險和不確定性超出了我們的控制範圍，這可能導致實際結果與這些前瞻性陳述中預期的結果存在重大差異。這些陳述僅反映我們截至本簡報發布之日的意見，我們不承擔根據新資訊或未來事件修改這些前瞻性陳述的義務。

Please refer to our press release and our reports filed with the Securities and Exchange Commission, where you will find a more comprehensive discussion of our performance and factors that could cause actual results to differ materially from these forward-looking statements.

請參閱我們的新聞稿和向美國證券交易委員會提交的報告，您可以在其中找到對我們的業績以及可能導致實際結果與這些前瞻性陳述存在重大差異的因素的更全面的討論。

For anyone who dialed into the call by telephone, you may want to download our third quarter 2023 earnings presentation. Please visit our Investor Relations site, ir.CareCloud.com, click on News and Events, then Click IR calendar, click on third quarter 2023 Results conference call and download the earnings presentation.

對於透過電話撥打電話的任何人，您可能需要下載我們的 2023 年第三季收益簡報。請造訪我們的投資者關係網站 ir.CareCloud.com，點擊新聞和活動，然後點擊 IR 日曆，點擊 2023 年第三季業績電話會議並下載收益簡報。

Finally, on today's call, we may refer to certain non-GAAP financial measures. Please refer to today's press release announcing our third quarter 2023 results for a reconciliation of these non-GAAP performance measures to our GAAP financial results.

最後，在今天的電話會議上，我們可能會提到某些非公認會計準則財務指標。請參閱今天發布的 2023 年第三季業績新聞稿，以了解這些非 GAAP 業績指標與我們 GAAP 財務表現的對帳。

With that said, I'll now turn the call over to our CEO, Hadi Choudhry. Hadi?

話雖如此，我現在將把電話轉給我們的執行長哈迪喬杜里 (Hadi Choudhry)。哈迪？

Thank you, Natalie. And thanks to all of you for joining our third quarter 2023 earnings call. I have several meaningful updates to provide from the quarter, but first, we will start with a quick review of the quarterly results. In the third quarter, revenue came in at $29.3 million and adjusted EBITDA came in at $3.2 million. Maybe will dive deeper into these numbers later in the call.

謝謝你，娜塔莉。感謝大家參加我們的 2023 年第三季財報電話會議。我要提供本季度的幾項有意義的更新，但首先，我們將首先快速回顧季度業績。第三季營收為 2,930 萬美元，調整後 EBITDA 為 320 萬美元。也許稍後會在電話會議中更深入地探討這些數字。

Overall, our recent progress on several fronts gives us confidence that the fundamentals of our business are intact and CareCloud remains on track to return to growth next year. As an example, we are pleased to report that after the close of the quarter, we signed the credentialing contract with an existing force customer that we believe has potential to be quite significant. Implementation of this is already underway, so we can expect to recognize a portion of that revenue before year end.

總體而言，我們最近在多個方面取得的進展讓我們相信我們的業務基本面完好無損，並且 CareCloud 仍有望在明年恢復成長。例如，我們很高興地報告，在本季度結束後，我們與現有的客戶簽署了認證合同，我們認為該客戶具有相當重要的潛力。該計劃的實施已經在進行中，因此我們預計將在年底前確認部分收入。

This quarter, we continued to make meaningful progress on several ongoing projects and goals, including the launch of our generative IA solution, the stabilization of MEDSR our project base professional service businesses. In the decisive action we took to align our cost infrastructure for our highest value business opportunities.

本季度，我們繼續在幾個正在進行的專案和目標上取得有意義的進展，包括推出我們的生成式 IA 解決方案、穩定我們專案基礎專業服務業務的 MEDSR。我們採取果斷行動，調整我們的成本基礎設施，以實現最高價值的商業機會。

Digging deeper into our progress in the third quarter, I will start with an update on Generative AI, we recently launched our CirrusAI solution which incorporates generative AI technology. Just two weeks ago, we had the opportunity to demonstrate this solution at a Google sponsored conference that brings together top leaders across the health care industry.

深入探討我們在第三季的進展，我將從生成式人工智慧的更新開始，我們最近推出了包含生成式人工智慧技術的 CirrusAI 解決方案。就在兩週前，我們有機會在 Google 主辦的會議上展示了該解決方案，該會議匯集了醫療保健行業的高層領導。

To kick off our go-to-market strategy for this solution, to the end of the year, we will be offering it to our client base free of charge. It's trying period will allow them time to better understand the benefits and how they can leverage them in their specific practice. They will then have the opportunity to purchase the competitively priced solutions starting in 2024.

為了啟動該解決方案的上市策略，到今年年底，我們將免費向我們的客戶群提供該解決方案。這段嘗試期將使他們有時間更了解其好處以及如何在具體實踐中利用它們。從 2024 年開始，他們將有機會購買價格具有競爭力的解決方案。

In total, we have launched three AI solutions, two for EHR and one for RCM embedded just the tip of the iceberg for us. We believe that our ability to stay ahead of the curve and the latest technology will give us a competitive edge in the market by improving the commercialization of our solution and are actively working on additional features.

總的來說，我們推出了三種人工智慧解決方案，兩種用於 EHR，一種用於 RCM，這只是我們的冰山一角。我們相信，我們保持領先地位的能力和最新技術將透過提高解決方案的商業化程度為我們帶來市場競爭優勢，並積極致力於其他功能的開發。

Over the past few months, we have taken effective steps towards stabilizing our MEDSR professional services business. We have continued to strengthen our relationship with Meditech, one of the dominant EHR provider. And over the past two years, MEDSR has reward from a consultancy firm that mainly relied on short-term staffing projects for a single vendor to a more diversified and sustainable revenue model.

在過去的幾個月裡，我們採取了有效措施來穩定我們的 MEDSR 專業服務業務。我們持續加強與 Meditech（主要 EHR 提供者之一）的關係。而在過去的兩年裡，MEDSR 已經從一家主要依靠單一供應商的短期人員配置專案的顧問公司轉向了更多元化和更永續的收入模式。

Our RCM practice has grown by almost 300% since 2021. And we also see a strength with our technology transformation practice.

自 2021 年以來，我們的 RCM 實踐成長了近 300%。我們也看到了技術轉型實踐的優勢。

We are optimistic for 2024 as we see a significant shift in our professional services, MEDSR pipeline mix towards RCM and tech transformation and a strong demand for these solutions. In addition, today we have $30 million in active pipeline opportunities versus $12 million entering 2023. We are confident because of the pipeline size and mix that we can leverage our expertise and reputation to capture opportunities and deliver value to our clients and shareholders.

我們對 2024 年持樂觀態度，因為我們看到我們的專業服務、MEDSR 管道組合向 RCM 和技術轉型發生了重大轉變，並且對這些解決方案的需求強勁。此外，目前我們擁有3000 萬美元的活躍管道機會，而到2023 年，這一數字為1200 萬美元。由於管道的規模和組合，我們有信心能夠利用我們的專業知識和聲譽來抓住機會，為我們的客戶和股東創造價值。

Lastly, as we announced in an 8-K in early October, we are actively working on improving profitability and positive free cash flow by aligning costs with the highest return opportunities. We expect most of the positive impact will be realized in 2024.

最後，正如我們在 10 月初的 8-K 中宣布的那樣，我們正在透過將成本與最高回報機會相結合，積極致力於提高盈利能力和正自由現金流。我們預計大部分正面影響將在 2024 年實現。

Larry will discuss this in more details in a few minutes. All of these factors just discussed, give us increased confidence that we can return to profitable growth next year.

拉里將在幾分鐘內更詳細地討論這個問題。剛才討論的所有這些因素都增強了我們對明年能夠恢復獲利成長的信心。

Turning to an update on our business opportunities. As discussed earlier this year, we revamped our website to enhance the user experience and highlight all of our solutions. Our next-generation end-to-end therapy solution is live on our upgraded website, and we recently launched a marketing campaign to highlight this offering.

轉向我們的商業機會的最新情況。正如今年早些時候所討論的，我們改進了我們的網站，以增強用戶體驗並突出我們的所有解決方案。我們的下一代端到端治療解決方案已在升級後的網站上上線，我們最近發起了一項行銷活動來突出這項產品。

We are confident that this campaign along with the new website, will go a long way in raising awareness of this solution in the physical therapy market. Next, I will provide an update on our opportunity in the Middle East. We are pleased to announce that we are making meaningful progress on our global expansion efforts in that region.

我們相信，這項活動以及新網站將大大提高物理治療市場對此解決方案的認識。接下來，我將介紹我們在中東的機會的最新情況。我們很高興地宣布，我們在該地區的全球擴張努力正在取得有意義的進展。

We have been strengthening our business development and establishing the permanent presence in Dubai, UAE near the innovation and technology hub of Dubai Internet city. Our product teams had been ensuring the river system here to the UAE Health Data Law which requires that health data is stored within the country. And at the same time, we are working diligently to integrate our system, with the national database, which operate similarly to our health information exchange.

我們一直在加強業務發展，並在阿聯酋迪拜靠近迪拜互聯網城創新和技術中心的地方建立永久業務。我們的產品團隊一直在確保這裡的河流系統符合阿聯酋健康數據法，該法要求健康數據儲存在該國境內。同時，我們正在努力將我們的系統與國家資料庫集成，其運作方式與我們的健康資訊交換類似。

We are also excited to present our solutions and services that are held in health conference in Dubai in Q1 of 2024. Arab health is one of the largest health care conferences with over 100,000 expected attendees from 180 countries. We look forward to providing you an update on our earnings call next year.

我們也很高興在2024 年第一季在杜拜舉行的健康會議上展示我們的解決方案和服務。阿拉伯健康會議是最大的醫療保健會議之一，預計將有來自180 個國家的超過100,000 名與會者。我們期待為您提供明年財報電話會議的最新資訊。

In terms of upcoming milestones, CareCloud is preparing to launch CareCloud Prime, a state-of-the-art cloud-based Electronic Health Record platform designed to meet modern physicians demands. Formerly known as CareCloud Go, this project was a significant goal following CareCloud's acquisition a few years ago.

就即將到來的里程碑而言，CareCloud 正準備推出 CareCloud Prime，這是一個最先進的基於雲端的電子健康記錄平台，旨在滿足現代醫生的需求。該專案以前稱為 CareCloud Go，是幾年前收購 CareCloud 後的一個重要目標。

CareCloud prime offers advanced features such as cloud base accessibility, seamless interoperability, user friendly design, improved patient engagement and AI powered clinical decision support. It includes two like Cirrus chat for staff interactions, global search for navigation and unified patient records for Perficient data exchange, emphasizing efficiency.

CareCloud prime 提供先進的功能，例如雲端基礎可存取性、無縫互通性、使用者友善設計、改進的患者參與度和人工智慧驅動的臨床決策支援。它包括用於員工互動的 Cirrus 聊天、用於導航的全域搜尋和用於 Perficient 資料交換的統一病患記錄，強調效率。

It also provides health providers with customizable templates as well as provide support for value-based care model tools such as proactive care management, remote patient monitoring and seamless telehealth integration. Carecloud prime is more than just another product in our portfolio, which represents our commitment to continually improve and innovate to better serve our clients' evolving needs.

它還為醫療服務提供者提供可自訂的模板，並為基於價值的護理模型工具提供支持，例如主動護理管理、遠端患者監控和無縫遠距醫療整合。 Carecloud prime 不僅僅是我們產品組合中的另一個產品，它代表了我們不斷改進和創新以更好地滿足客戶不斷變化的需求的承諾。

In some way, although we face some headwinds this year, we entered the fourth quarter feeling confident after the steps we took the steps to stabilize the business and re-prioritize the cost structures. Because of these strategic actions, we believe we have made it past our low point and are on upswing. The steps we have taken and the progress made this quarter give me confidence in reiterating our full-year guidance and our ability to return to growth in 2024.

在某種程度上，儘管我們今年面臨一些阻力，但在採取措施穩定業務並重新確定成本結構的優先順序後，我們進入第四季度充滿信心。由於這些戰略行動，我們相信我們已經度過了低谷並正在上升。我們本季採取的步驟和取得的進展讓我有信心重申我們的全年指引以及我們在 2024 年恢復成長的能力。

Now I will turn the call over to Larry, to give you a closer look at the numbers. Larry?

現在我將把電話轉給拉里，讓你仔細看看這些數字。拉里？

Thank you, Hadi, and good morning, everyone. Before I review the third quarter results, I want to share a little more detail on our recent cost realignment initiative. The third quarter was my first full quarter as CareCloud CFO, I took a fresh look at our cost infrastructure and along with Hadi and the Board, we made some tough but necessary decisions to pare back in certain areas of the business.

謝謝哈迪，大家早安。在回顧第三季業績之前，我想分享更多關於我們最近的成本調整計劃的細節。第三季度是我作為CareCloud 財務長的第一個完整季度，我重新審視了我們的成本基礎設施，並與Hadi 和董事會一起做出了一些艱難但必要的決定，以削減某些業務領域的開支。

As you know, transformation decisions are difficult, but the goal was to ensure the company continue to invest in growth or also establishing a sustainable foundation for improvement and positive free cash flow and profitability.

如您所知，轉型決策很困難，但目標是確保公司繼續投資於成長，或為改善和積極的自由現金流和獲利能力奠定可持續的基礎。

Most of the [actuals] are scheduled to take place in the fourth quarter, but anticipate some will carry over into 2024. We expect these changes in our expense profile to result in approximately $10 million of annualized free cash flow improvement. Approximately $5 million related to operational expense and savings and the other half includes the completion of R & D investments.

大多數[實際情況]計劃在第四季度進行，但預計其中一些將延續到 2024 年。我們預計費用狀況的這些變化將導致年化自由現金流改善約 1000 萬美元。大約 500 萬美元用於營運費用和節省，另一半包括完成研發投資。

Specifically, our next-generation CareCloud prime platform that Hadi just discussed. This has a twofold benefit for us. First, we will see a notable reduction in our capitalized software going forward. And second we now anticipate realizing the ROI for these investments.

具體來說，就是 Hadi 剛剛討論的我們的下一代 CareCloud prime 平台。這對我們有雙重好處。首先，我們將看到未來軟體資本化顯著減少。其次，我們現在預期實現這些投資的投資報酬率。

Now turning to the third quarter results, revenue of $29.3 million was level sequentially and compared to $33.7 million year over year. The primary reason for the year over year decline was a loss of the two customers due to health systems mergers. Our wellness offering continues to gain traction and showing growth in the monthly sequential number of patients.

現在來看第三季的業績，營收為 2,930 萬美元，與上一季持平，而去年同期營收為 3,370 萬美元。年比下降的主要原因是由於衛生系統合併而失去了兩個客戶。我們的健康產品繼續受到關注，並顯示出每月連續患者數量的增長。

Adjusted EBITDA for the quarter of $3.2 million reflects a margin of 11%, this compared to an adjusted EBITDA of $4.8 million a year ago. The decline in quarterly EBITDA was a combination of lower revenue and related margins, partially offset by lower selling, marketing, general and administrative costs in the current period.

本季調整後 EBITDA 為 320 萬美元，利潤率為 11%，而一年前調整後 EBITDA 為 480 萬美元。季度 EBITDA 的下降是收入和相關利潤率下降的綜合影響，但部分被本期銷售、行銷、一般和管理成本的下降所抵消。

Turning to the balance sheet and cash flow. At the end of Q3, we had a $6.4 million in cash and net working capital of $5.5 million. Cash provided by operations was $4.3 million, and there was $3.2 million in net cash used in investing activities. Finally, we are reiterating our 2023 guidance for revenue between $120 and $122 million and adjusted EBITDA of between $15 and $17 million.

轉向資產負債表和現金流量。截至第三季末，我們擁有 640 萬美元現金，淨營運資本為 550 萬美元。營運提供的現金為 430 萬美元，投資活動使用的淨現金為 320 萬美元。最後，我們重申 2023 年營收指引為 1.2 億至 1.22 億美元，調整後 EBITDA 為 1.5 至 1,700 萬美元。

The combination of factors, including the credentialing contract, MEDSR's meaningful contract ramping. A continued solid execution in our core revenue cycle business provides the pathway to achieving our full year expectations.

綜合因素，包括認證合約、MEDSR 有意義的合約增加。我們核心收入週期業務的持續穩健執行為實現全年預期提供了途徑。

In conclusion, we have taken tough but necessary actions to realign for growth and study improvement in our financial performance. I believe will not only every year from a position of strength but be better positioned going into 2024.

總之，我們已採取嚴厲但必要的行動來調整成長並研究改善我們的財務表現。我相信，不僅每一年都會保持強勢，而且在 2024 年之前也會處於更好的位置。

With that, I'll now turn the call over to Mahmud, for his closing remarks. Mahmud?

現在，我將把電話轉給馬哈茂德，讓他作總結發言。馬哈茂德？

Thank you, Larry. As I expressed earlier, we feel that our solutions are very well positioned in the marketplace. The team is ready and fully engaged to drive future success and shareholder value. I would like to thank our employees, customers and shareholders for all they do to support CareCloud's mission.

謝謝你，拉里。正如我之前所說，我們認為我們的解決方案在市場上處於非常有利的地位。團隊已做好準備並全力投入，以推動未來的成功和股東價值。我要感謝我們的員工、客戶和股東為支持 CareCloud 使命所做的一切。

Let's open the call to questions. Operator?

讓我們開始提問。操作員？

Thank you. (Operators instructions)

謝謝。 （操作人員須知）

Jeffrey Cohen, Ladenburg Thalmann.

傑弗瑞‧科恩，拉登堡‧塔爾曼。

So good morning and thank you very much for taking the questions. Just a couple from our end. I guess firstly on for Larry. Could you maybe acquaint the guidance and the adjusted EBITDA to free cash flow or cash production or net income?

早上好，非常感謝您提出問題。離我們這邊只有幾個。我想首先是拉里。您能否了解自由現金流或現金生產或淨利潤的指導和調整後的 EBITDA？

We would have to put that out Actually we can do that as a follow up.

我們必須把它拿出來 實際上我們可以將其作為後續行動。

Okay, perfect and then, could you talk a little bit about the Cirrus AI arrangement with Google and which offering specifically that's going to pertain to and if that also ties over to the prior platform that you plan to introduce?

好的，太完美了，那麼您能否談談 Cirrus AI 與 Google 的合作，以及具體涉及哪些產品，以及這是否也與您計劃推出的先前平台相關？

Good morning, Jeff, thank you, thank you for the questions. And generative AI, I think the most one of the biggest, the highest discussed topic nowadays in any industry. So for us to as we mentioned earlier in the year, we started focusing towards how we can leverage the generative AI technology into our platform to help the healthcare market segment, the healthcare industry.

早安，傑夫，謝謝你，謝謝你提出的問題。我認為生成式人工智慧是當今任何產業中最大、討論最多的話題之一。因此，正如我們今年稍早提到的，我們開始關注如何利用生成式人工智慧技術到我們的平台中來幫助醫療保健細分市場和醫療保健產業。

So, we do have working on number of other various different features to be incorporated and we will keep on announcing as those features will be incorporated.

因此，我們確實正在努力合併許多其他各種不同的功能，我們將繼續宣布這些功能將合併。

But we started with for now, we looked at on the board front, the back improvement how we can leverage the generative AI from where we can improve the revenue cycle management work by our employees which later on will also be available in the SaaS model.

但我們現在開始，我們研究了董事會的前端和後端改進，我們如何利用生成式人工智慧來改進員工的收入週期管理工作，稍後也將在 SaaS 模型中提供。

As you know, that one of the complex procedure is the appeals process where you need to appeal certain decisions of the insurance companies, and especially into the out of network space or the worker comp space.

如您所知，複雜的程序之一是上訴程序，您需要對保險公司的某些決定提出上訴，特別是針對網路外空間或工人補償空間。

So with the help of generative AI, you know, system can systematically generate appeals and based on the internal testing, we -- the results seems to be very promising. And we believe our -- the payment processing cycle as well as the collection of to those appeals should improve with the help of that.

因此，在生成式人工智慧的幫助下，系統可以系統地產生上訴，根據內部測試，我們的結果似乎非常有希望。我們相信，我們的支付處理週期以及這些上訴的收集應該在此幫助下得到改善。

On the front end, which is more important, we focused on -- we thought the most important thing for any physician is the clinical decision. So when the patient walks in, after -- in order to record the complete session where the doctor has to look at, for example, their medication, their prior lab history, the diagnosis, so many different pieces of information the provider has to look at and then come up with the next diagnosis and the test and the like.

在更重要的前端，我們專注於——我們認為對任何醫生來說最重要的是臨床決策。因此，當患者走進來時，為了記錄完整的療程，醫生必須查看他們的藥物、先前的實驗室歷史、診斷以及提供者必須查看的許多不同資訊。然後提出下一個診斷和測試等。

So think about this as the -- as either is a second opinion or it just it will -- system will suggest to the provider, these could be the potential diagnosis procedures. These probably could be the suggestive orders the lab test the provider should order. And based on all that gives them a recommendation, now it is up to the provider to accept it as is or just look at it if there is certain aspect that needs to be changed or moved and added and complete that. And it also even suggests the medicine, the medication.

因此，請將此視為 - 無論是第二意見還是它本身 - 系統將向提供者建議，這些可能是潛在的診斷程序。這些可能是提供者應該訂購的實驗室測試的建議性命令。基於所有向他們提供的建議，現在由提供者決定是否按原樣接受它，或者如果有某些方面需要更改或移動、添加並完成，則只需查看它。它甚至還建議藥物。

So I think the thing is this is in many cases, I think about the rare diseases, they could be some instances where the provider may not be able to quickly diagnose and may have been able to diagnose doctor multiple business. Now with this helps and this generative AI as the model will keep learning more and more the results will keep on improving, this should be able to diagnose or treat those diseases much earlier than they would have.

所以我認為問題是在很多情況下，我認為對於罕見疾病，它們可能是提供者可能無法快速診斷並且可能能夠診斷醫生多個業務的某些情況。現在有了這個幫助，而這種生成式人工智慧隨著模型將不斷學習越來越多的知識，結果將不斷改進，這應該能夠比它們更早診斷或治療這些疾病。

So from the business standpoint, so one is the adaptability. We need to make sure that the doctors and the users understand and realise the importance of such features of the [year] turning it on at least for now, until the end of the year for your cost. There won't be any charge. It will be a risk-free trail. The clients can start using it, get accustomed to it. And then entering it to the next year, we have a plan to start [pricing] it out on the license basis. We will announce the price once that gets finalized.

所以從業務角度來說，一是適應性。我們需要確保醫生和使用者理解並認識到至少現在啟用這些功能的重要性，直到年底為止。不會有任何費用。這將是一條無風險的道路。客戶可以開始使用它，習慣它。然後進入明年，我們計劃開始根據許可證對其進行[定價]。一旦最終確定，我們將公佈價格。

And of course, the second thing is the marketing positioning, the marketability of our product. If you look at our competitors, I think all the competitors, everyone is trying to come up with some solutions. So this is the at the high level and any further questions I get, I'll be happy to even connect with you offline to explain further.

當然，第二件事是行銷定位，也就是我們產品的適銷性。如果你看看我們的競爭對手，我認為所有競爭對手，每個人都在試圖提出一些解決方案。這是高層次的內容，如果我收到任何進一步的問題，我甚至很樂意與您離線聯繫以進一步解釋。

Thank you, Hadi. That's helpful. And lastly for us, could you give us a sense of your OUS business now and give us a sense of what you may anticipate going forward on the growth or aggregate revenue for OUS.

謝謝你，哈迪。這很有幫助。最後，您能否讓我們了解您現在的 OUS 業務，以及您對 OUS 未來成長或總收入的預期。

Okay. So you're probably referring to our Middle East, the Middle East opportunity that we are focusing on. So we are making continuous progress. And for this year, as -- even on the last call I mentioned, our goal is to achieve being able to sign at least eight contract or few contracts and recognize some revenue into the next year. We will incorporate that include that when we issued the guidance for the next year. On the next earnings call, but in terms of our progress, if you think about it on the UAE side, there are a number of steps.

好的。所以你可能指的是我們的中東，我們關注的中東機會。所以我們正在不斷進步。今年，即使在我提到的最後一次電話會議上，我們的目標也是能夠簽署至少八份合約或幾份合同，並在明年確認一些收入。當我們發布明年的指導意見時，我們將把這一點納入其中。在下一次財報電話會議上，但就我們的進展而言，如果你從阿聯酋方面考慮，有很多步驟。

One is incorporating the entity, we have completed that. Second thing is getting the license to conduct the business in different categories, so we have completed that. Third step is onboarding at least the management employees and certifying them, so they should be able to transact the business in the UAE. So we are in this third process.

一是實體合併，我們已經完成了。第二件事是獲得不同類別業務的許可證，所以我們已經完成了。第三步是至少讓管理人員入職並對他們進行認證，這樣他們應該能夠在阿聯酋處理業務。所以我們正處於第三個過程。

On the other side, two other fronts. One, we are actively working on at least three, one large and two smaller opportunities there. And on our technical side -- IT side, they have to make sure that our product certified to the local requirements such as making sure the data stays within the UAE.

另一邊，還有另外兩條戰線。第一，我們正在積極致力於至少三個機會，一個大的機會和兩個較小的機會。在我們的技術方面 - IT 方面，他們必須確保我們的產品符合當地要求，例如確保資料保留在阿聯酋境內。

And secondly, once we have a client, we have to start working with authorities to get the EHR and the different other items off the platform certified. I hope that answers the question.

其次，一旦我們有了客戶，我們就必須開始與當局合作，讓 EHR 和平台上的其他不同項目獲得認證。我希望這能回答這個問題。

Yeah, perfect. Thanks for taking for our questions.

是的，完美。感謝您接受我們的提問。

Thank you, Jeff.

謝謝你，傑夫。

Neil Chatterji, B Riley.

尼爾·查特吉，B·萊利。

Good morning and thanks for taking our questions. Just maybe some quarters, maybe just wanted to just see if you talk more about any seasonality might have seen in 3Q and what kind of -- gives you the confidence, and I guess that kind of the sequential ramper strength until fourth quarter with reaffirming the full year guidance, was there any MEDSR projects impact that might have shifted from 3Q to 4Q?

早安，感謝您提出我們的問題。也許只是在某些季度，也許只是想看看您是否更多地談論第三季度可能出現的季節性以及什麼樣的情況——給您信心，我想這種連續的斜坡強度直到第四季度，重申了全年指導，是否有任何 MEDSR 專案影響可能從第三季轉移到第四季？

Yeah Neil, thanks for the question, as we look at Q3 to Q4, you know the Q3 seems now really similar to Q3 of last year, getting a bigger impact just year over year comparison with the two large health system mergers that we've achieved for couple of key factors. One certainly is the professional services MEDSR. Really great developments there on some of the contract wins.

是的，尼爾，謝謝你的問題，當我們看到第三季度到第四季度時，你知道第三季度現在看起來與去年的第三季度非常相似，與我們已經進行的兩次大型醫療系統合併相比，年比產生了更大的影響實現了幾個關鍵因素。其中之一當然是專業服務 MEDSR。一些贏得的合約確實取得了巨大的進展。

Also with our press release about the credentialing and the revenue that we're going to start to recognize a portion of that (Technical difficulty) Q4, so we reiterated our full year guidance.

此外，透過我們關於認證和收入的新聞稿，我們將開始承認第四季度（技術難度）的一部分，因此我們重申了全年指引。

Can you hear?

你聽得到嗎？

Yes. Sorry I wasn't certainly done.

是的。抱歉我還沒完成。

It looks likes the phone went off.

電話好像沒電了。

So just to complete that, the MEDSR really the key driver in Q4. And then also just as our core RCM business will, with the solid execution will also support the confirmation for the full year guidance. So all that is really come together, and it just gives us confidence is also going into 2024 with our backlog, we commented on where we are, also with the professional services going into the next year, really come together and he as we look at 2023 as a transformation year from the health system mergers and just seven years of for growth into 2024.

因此，為了完成這一目標，MEDSR 確實是第四季度的關鍵驅動因素。然後，正如我們的核心 RCM 業務一樣，憑藉紮實的執行力，也將支持全年指引的確認。因此，所有這些都真正融合在一起，這給了我們信心，進入 2024 年我們的積壓工作，我們評論了我們的進展，以及進入明年的專業服務，真正融合在一起，當我們看到他時2023年是衛生系統合併的轉型年，距離2024 年的成長只有七年。

But we want to get there were for, you know, finish strong and then go into the next year from that same position of strength.

但我們想要達到這個目標，你知道，以強勁的成績結束比賽，然後以同樣的實力進入明年。

Great. And just maybe just one follow-up on that. Just in terms of, kind of on that MEDSR business. Just looking at the chart, we're kind of the mix look like Meditech in RCM we're getting thrown in the mix, what's driving some of that traction you're getting on that side?

偉大的。也許只是對此的一個後續行動。就 MEDSR 業務而言。看看圖表，我們就像 RCM 中的 Meditech 一樣，我們也被捲入其中，是什麼推動了您在這方面的吸引力？

I think and we have Dwight Garvin, who's heading the MEDSR businesses that I can start. And then he can finish the question. If you think about it, the overall industry, the largest players in the health system space is, let's say, over between somewhere between 40% to 50% market share. So that's the relation we lost, so until we acquaint MEDSR the primary focus of the organization was from in terms of bringing the business and in was that one, the topmost player in the market.

我認為我們有德懷特·加文 (Dwight Garvin)，他負責我可以啟動的 MEDSR 業務。然後他就可以完成這個問題了。如果你想一想，整個產業，也就是醫療系統領域最大的參與者，可以說，市佔率在 40% 到 50% 之間。這就是我們失去的關係，所以在我們熟悉 MEDSR 之前，該組織的主要關注點是引入業務，而市場上最頂尖的參與者就是其中之一。

Once the lost that opportunity, so we started working towards the next in line and Meditech is among the top three, I would say in that space. So all the time over the last one year, we have been able to reestablish not enabler of our relationship with Meditech. But in addition to that our marketing strategy was more oriented towards finding the opportunities for Meditech. So that's one.

一旦失去了這個機會，我們就開始朝著下一個方向努力，我想說，Meditech 是該領域的前三名。因此，在過去的一年裡，我們一直能夠重建與 Meditech 的關係。但除此之外，我們的行銷策略更注重為 Meditech 尋找機會。這就是其中之一。

The second one is the RCM. Once when we acquired MEDSR their RCM related revenue was hardly $1 million out of $30 million roughly that they were doing, that has improved by multiple fold now because that was also, if you remember, one of the reason for the acquisition. That these health system relationships, we should be able to leverage those because those relationships, we cannot talk to the CEO, the CFO's there, and should be able to cross sell and upsell our RCM services.

第二個是RCM。有一次，當我們收購 MEDSR 時，他們的 RCM 相關收入在大約 3000 萬美元中還不到 100 萬美元，現在已經提高了數倍，因為如果你還記得的話，這也是收購的原因之一。我們應該能夠利用這些衛生系統關係，因為這些關係我們無法與執行長、財務長交談，並且應該能夠交叉銷售和追加銷售我們的 RCM 服務。

So those two are seems to be are becoming the primary drivers of our MEDSR or our updated MEDSR business. Those are the two major contributors, but Dwight if you would like to add anything, please go ahead.

因此，這兩者似乎正在成為我們 MEDSR 或更新的 MEDSR 業務的主要驅動力。這是兩個主要貢獻者，但 Dwight 如果您想添加任何內容，請繼續。

Sure. Thank you, Hadi. And just to kind of expound upon what Hadi said.

當然。謝謝你，哈迪。只是為了解釋哈迪所說的話。

And what we're seeing in our RCM space is really moving from that advisory model where you have short term engagements and moving those advisories into managed services. And now we can take our relationships established through all the other practices, [Sylvan or some] advisory services and turn those into long-term recurring revenue managed services model.

我們在 RCM 領域看到的情況確實是從那種短期參與的諮詢模式轉變為託管服務。現在，我們可以利用透過所有其他實踐、[Sylvan 或一些]諮詢服務建立的關係，並將其轉變為長期經常性收入管理服務模式。

And that's really what we're trying to targeting and here is the same time, expanding on our Meditech business, really making some very key hires in the business development side this year. And those have allowed us to really strengthen that partnership within Meditech. I hope that answers your question.

這確實是我們正在努力實現的目標，同時，我們正在擴大我們的醫療科技業務，今年在業務開發方面確實進行了一些非常關鍵的招募。這些使我們能夠真正加強 Meditech 內部的合作關係。我希望這能回答你的問題。

Yeah, great. Yeah, thanks for that, and I'll hop back in the queue.

很好。是的，謝謝你，我會重新加入隊列。

Thank you.

謝謝。

(Operator instructions)

（操作員說明）

Allen Klee, Maxim Group.

艾倫克利，馬克西姆集團。

Yes, good morning. For the Carecloud Prime offering that's coming, talk about how that compares to what you have today, how do you think about what this been the upsell to existing clientele or new customers and with to be a price differential, just help us understand a little more about that. Thank you.

是的，早安。對於即將推出的 Carecloud Prime 產品，請談談它與您現在擁有的產品相比如何，您如何看待這對現有客戶或新客戶的追加銷售以及價格差異，只是幫助我們了解更多關於那個。謝謝。

Thanks Allen, good morning. Thanks for the question. The couple of -- couple of ways we need to look at. One is, every time and if you go back our first system was in 2004, 2005 over first generation of our -- the entire solution. And then we kept bringing the new next-generation solutions after every couple of years.

謝謝艾倫，早安。謝謝你的提問。我們需要考慮以下幾種方式。一個是，每次，如果你回顧一下，我們的第一個系統是在 2004 年、2005 年，我們的第一代——整個解決方案。然後我們每隔幾年就會不斷推出新的下一代解決方案。

And the reason that traders is, one is the compliance requirement or the regulatory requirements or the market expectations, what are the new features that's needed. And other side is the technology platforms, this is a very rapidly changing, the world every after five, six year the technology become almost obsolete. And in order to you have a more viable, reliable and effective product, you need to bring the products to the next technology platform. So this on one, on the technological perspective, this will be on the new back-end technology.

交易者的原因是，一是合規要求或監管要求或市場預期，需要什麼新功能。而另一面是科技平台，這是一個非常快速的變化，世界上每隔五、六年技術就變得幾乎過時。為了擁有更可行、更可靠、更有效的產品，您需要將產品引進下一個技術平台。一方面，從技術角度來看，這將是新的後端技術。

The second thing is, it will have more features. We are focusing to have with more features towards value-based care models, preventive medication, the preventive health care and the like, and number of other things, more effective better chart sharing model versus the previous model.

第二件事是，它將具有更多功能。我們的重點是為基於價值的護理模型、預防性藥物、預防性醫療保健等以及其他一些事物提供更多功能，與以前的模型相比，更有效、更好的圖表共享模型。

So I think all of those things together. And another key aspect is, when required CareCloud help, they were working on this platform for the last number of years. And for us, we have another platform which recorded [talk] EHR. Today both of those platforms are in today's world are active. We can sign up the client. They can service the client. They have the serve both the platform or the certified platform.

所以我認為所有這些事情都在一起。另一個關鍵方面是，當需要 CareCloud 幫助時，他們在過去的幾年裡一直在這個平台上工作。對我們來說，我們有另一個記錄[談話] EHR 的平台。如今，這兩個平台在當今世界都很活躍。我們可以為客戶註冊。他們可以為客戶提供服務。他們有服務平台或認證平台。

So this is going to be our next generation with ultimately over the next number of years. Both of those two sets of clients we expect we foresee would be transitioned into this a futuristic platform. We're not planning on doing at the starting next month. Whoever would like to transition at their own.

因此，這將是我們的下一代，最終將在未來幾年內出現。我們預計這兩組客戶都將轉變為這個未來平台。我們不打算在下個月開始時進行。誰願意自己轉型。

We would love to bring them onto this new platform as a seamless transition, no additional and extra cost for them. So this will become our flagship platform going forward with the next generation of healthcare features and capabilities and the technology platform.

我們很樂意將他們帶入這個新平台，作為無縫過渡，而不會給他們額外的費用。因此，這將成為我們面向下一代醫療保健特性和功能以及技術平台的旗艦平台。

Thank you. My other question is, if you could just talk a little bit about the credentialing contract and what you're doing and how you think about the opportunity there?

謝謝。我的另一個問題是，您能否簡單談談認證合約、您正在做的事情以及您如何看待那裡的機會？

Great question, Neil and credentialing, and we have Carl with us, he is the one who was working on this relationship. I can get started and then hand it over to Carl.

很好的問題，尼爾和資格認證，卡爾也和我們在一起，他是致力於建立這種關係的人。我可以開始，然後把它交給卡爾。

From the service on the product for us when we talk about of an end to end revenue, tech-enabled revenue cycle management services, the first piece into the revenue cycle, we believe it start to begin with the credentialing.

從我們的產品服務來看，當我們談論端到端收入、技術支援的收入週期管理服務（收入週期的第一部分）時，我們認為它從認證開始。

So if you do not credential a client effectively, you won't, we won't be able to generate the revenue, even if the provider see the patient, the reimbursement either will not happen or will not come at the optimal level it should come. We have been working on our site internally on building up a platform which can help us at the back end, help us track systematically, more effectively the applications that the find, wherever the electronic submission is possible, system has the capability to do that. Now it flags the application that needs to follow up.

因此，如果您沒有有效地認證客戶，我們將無法產生收入，即使提供者看到患者，報銷也不會發生或不會達到應有的最佳水平來。我們一直在內部網站上建立一個平台，該平台可以在後端幫助我們，幫助我們系統地、更有效地跟踪所發現的應用程序，只要可以電子提交，系統就有能力做到這一點。現在它標記了需要跟進的應用程式。

And also with the help of the different AI, many of the applications can be completed systematically without any human intervention, which improves the accuracy level and also the staff time. That's one, we also have been and I mean, we mentioned in one of the last, one of the -- when we announced this as part of that earning, as part of that release, we are working on delegated credentialing certification like establishing the CBO, think about the CBO as the insurance company has delegated their credentialing role to the company.

而且在不同人工智慧的幫助下，許多應用程式可以系統化地完成，無需任何人工幹預，這提高了準確性水平並縮短了工作人員的時間。這是一個，我們也一直是，我的意思是，我們在最後一個、其中一個中提到過——當我們宣布將此作為收入的一部分時，作為該發布的一部分，我們正在致力於委託資格認證，例如建立CBO，將 CBO 視為保險公司已將其認證角色委託給該公司。

So hypothetically talking, if a commercial insurance stake at an average 20 days to credential a provider, we believe internally, we should be able to credential the same provider at, let's say, 5 days instead of the 20 days. So this is our overall credentialing capability and has become very much strengthened and we think can go out and start marketing this, the credentialing more effectively.

因此，假設而言，如果商業保險平均需要 20 天才能對提供者進行認證，我們內部認為，我們應該能夠在 5 天而不是 20 天的時間內對同一提供者進行認證。因此，這是我們的整體認證能力，並且已經得到了很大的加強，我們認為可以走出去並開始更有效地行銷這項認證。

With that, this is our first large contract, we have been able to sign. Carl, share some details, please.

至此，這是我們能夠簽署的第一份大型合約。卡爾，請分享一些細節。

Yes. So the relationship in need of the customer to make sure that their clients were credentials so that when they were doing revenue cycle work, they were getting paid for those services. So we were able to command a price point than our cost structure was incredibly attracted to them, along with our existing resources that are trained and up to speed. And then Hadi mentioned, the delegated credentialing piece is huge and takes a long time to care.

是的。因此，客戶關係需要確保他們的客戶是有資格的，這樣當他們進行收入週期工作時，他們就能從這些服務中獲得報酬。因此，我們能夠控制一個價格點，而不是我們的成本結構對他們來說非常有吸引力，以及我們經過培訓和更新的現有資源。然後哈迪提到，授權的資格認證工作非常龐大，需要很長時間來處理。

We have really leveraged our offshore resources so that doing credentialing for own clients for many, many years. And this happened to really fill a need and have gone further. And that's actually opened up some doors for some additional discussions with some other large companies that need this on a back-end.

多年來，我們確實利用了我們的離岸資源，為自己的客戶提供認證。這恰好滿足了需求並且更進一步。這實際上為與其他一些在後端需要此功能的大公司進行額外的討論打開了一些大門。

So we really think that there's an untapped market for this to come at it in a way that is is much more cost-effective than those companies that are dedicated credentialing companies. Also has the distinct advantage of having one stop shopping so the before helping with RCM services or software services credential use a very natural add on functionality.

因此，我們確實認為，存在一個尚未開發的市場，其方式比那些專門提供認證的公司更具成本效益。還具有一站式購物的獨特優勢，因此在幫助 RCM 服務或軟體服務憑證之前使用非常自然的附加功能。

And I will just give you some idea in terms of the revenue from this opportunity, as we mentioned that this is a tens and thousands of providers that we will be positioning or presenting this solution to with their help.

我只會向您提供有關此機會的收入的一些想法，正如我們所提到的，我們將在他們的幫助下向成千上萬的提供者定位或展示此解決方案。

And at only 5% penetration into that client base, we are expecting, I would say, in something over $1 million in annualized revenue. So that 5% penetration. So there is a big opportunity there. And as Carl mentioned, this will become a good first case study or a model for us to go and sell the similar with other larger opportunities.

我想說，我們對該客戶群的滲透率只有 5%，預計年化收入將超過 100 萬美元。從而達到5%的滲透率。所以那裡有一個很大的機會。正如卡爾所提到的，這將成為一個很好的第一個案例研究或模型，讓我們可以與其他更大的機會一起銷售類似的產品。

Thank you very much.

非常感謝。

This concludes the question-and-answer session. I would like to turn the conference back over to Natalie Garcia for any closing remarks.

問答環節到此結束。我想將會議轉回給娜塔莉·加西亞（Natalie Garcia）發表閉幕詞。

On behalf of the company, I'd like to thank everyone who has joined us on today's call. We appreciate your participation and your interest in us as a company, and we look forward to speaking with you again. Thank you, everyone, and have a great day.

我謹代表公司感謝所有參加今天電話會議的人。我們感謝您的參與以及您對我們公司的興趣，我們期待再次與您交談。謝謝大家，祝您有美好的一天。

This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

今天的電話會議到此結束。您可以斷開線路。感謝您的參與並祝您有個愉快的一天。