UpHealth Inc (UPH) 2023 Q2 法說會逐字稿

Greetings, and welcome to UpHealth second-quarter 2023 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Shannon Devine, Investor Relations. Thank you, Ms. Devine, you may begin.

您好，歡迎參加 UpHealth 2023 年第二季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向您介紹主持人，投資者關係部香農·迪瓦恩 (Shannon Devine)。謝謝你，迪瓦恩女士，你可以開始了。

Thank you, operator. During today's call, management will be making forward-looking statements. Please refer to the company's SEC filings, including the company's annual report on Form 10-K and quarterly report on Form 10-Q to be filed for a summary of the forward-looking statements, the risks, uncertainties, and other factors that could cause actual results to differ materially from those forward-looking statements.

謝謝你，接線生。在今天的電話會議中，管理階層將發表前瞻性聲明。請參閱本公司向 SEC 提交的文件，包括本公司將提交的 10-K 表格年度報告和 10-Q 表格季度報告，以了解前瞻性陳述、風險、不確定性和其他可能導致業績下滑的因素的摘要。結果與這些前瞻性陳述有重大差異。

UpHealth cautions investors not to place undue reliance on any forward-looking statements. The company does not undertake and specifically disclaims any obligation to update or revise these statements to reflect new circumstances or unanticipated events that occur, except as required by law.

UpHealth 警告投資人不要過度依賴任何前瞻性陳述。除非法律要求，否則本公司不承擔並明確聲明不承擔任何更新或修改這些聲明以反映新情況或發生的意外事件的義務。

Throughout today's call, we'll refer to pro forma revenues, pro forma gross margin, and adjusted EBITDA. These metrics are not determined in accordance with GAAP, and therefore, are susceptible to varying calculations. Definitions, calculations, and reconciliations for financial statements of these non-GAAP measures can be found in the tables included in our press release. We believe these non-GAAP measures of UpHealth's financial results provide useful information regarding certain financial and business trends and the results of our operations.

在今天的電話會議中，我們將提及預計收入、預計毛利率和調整後 EBITDA。這些指標不是根據 GAAP 確定的，因此很容易受到不同計算的影響。這些非公認會計準則衡量指標的財務報表的定義、計算和調節可以在我們新聞稿中的表格中找到。我們相信這些 UpHealth 財務表現的非公認會計原則衡量標準提供了有關某些財務和業務趨勢以及我們營運績效的有用資訊。

And now I will turn the call over to Sam Meckey, UpHealth's Chief Executive Officer. Sam?

現在我將把電話轉給 UpHealth 執行長 Sam Meckey。薩姆？

Thank you, Shannon. Good afternoon, everyone. I appreciate you joining us today.

謝謝你，香農。大家下午好。我很感謝你今天加入我們。

I'm very happy to report strong second-quarter performance, which builds upon the results that we shared with you in May. We continue to execute on our plan, which elevate our business. And our second-quarter results demonstrate that our narrowed focus and our commitment to delivering consistent steady results is taking the company in a positive direction.

我很高興地報告第二季度的強勁業績，這是建立在我們五月與您分享的結果的基礎上的。我們繼續執行我們的計劃，這提升了我們的業務。我們第二季的業績表明，我們縮小的關注範圍和我們對提供一致穩定業績的承諾正在帶領公司朝著積極的方向發展。

While maintaining our keen focus on the bottom line of the second quarter, we pivoted our business to growth and continuing to execute on our strategy. Our team has performed well. And as a result, we are increasing our previously stated outlook for the full year 2023, which I'll let Martin address in more detail.

在保持對第二季度盈利的高度關注的同時，我們將業務轉向成長並繼續執行我們的策略。我們的團隊表現得很好。因此，我們提高了先前對 2023 年全年的展望，我將讓 Martin 更詳細地闡述這一點。

As we dive deeper into our results, it is important to remember that our policy is not the same company it was a year ago as a result of various actions that we have taken to concentrate our efforts on the higher growth, higher-margin segments of our business. Additionally, we have taken a comprehensive inventory of our data and our opportunities and continuing to serve our customers and enhance our business using new AI and data analytics-based solutions. In virtual care infrastructure, the focus of the team is on the US Telehealth market and growing our offering from the 2,900 healthcare facilities that we serve nationwide.

當我們更深入地研究我們的表現時，重要的是要記住，我們的政策與一年前不同，這是我們採取的各種行動的結果，將我們的努力集中在更高成長、更高利潤的細分市場上。此外，我們還對我們的數據和機會進行了全面盤點，並繼續使用新的人工智慧和基於數據分析的解決方案為我們的客戶提供服務並增強我們的業務。在虛擬護理基礎設施方面，團隊的重點是美國遠距醫療市場，並透過我們在全國範圍內服務的 2,900 家醫療機構擴大我們的產品範圍。

In our services business, we are focused on driving growth in our TTC healthcare facilities by improving occupancy rates and driving geographic expansion. As reported last quarter, we streamlined our strategy and solidified our balance sheet by divesting Innovations Group, Incorporated in winding down our Missouri based behavioral health business. Finally, we continue to focus on integrated care management and expanding our professional services revenue in our existing customer base while pursuing new license agreements.

在我們的服務業務中，我們致力於透過提高入住率和推動地理擴張來推動 TTC 醫療保健設施的成長。如上季所報告的，我們透過剝離 Innovations Group, Incorporated 來縮減我們位於密蘇裡州的行為健康業務，從而簡化了我們的策略並鞏固了我們的資產負債表。最後，我們繼續專注於綜合護理管理，並在現有客戶群中擴大我們的專業服務收入，同時尋求新的授權協議。

We believe these three businesses provide the best opportunity for us to grow. These businesses compete in areas with substantial addressable markets. Our technology solution and our technology-enabled services address significant customer problems, and our solutions have been validated by the market. We continue to refine our value proposition. And we believe that strong fundamental execution in delighting our customers is the key to achieving our mission of enabling high-quality, affordable, and accessible health care for everyone.

我們相信這三項業務為我們提供了最佳的成長機會。這些企業在擁有大量潛在市場的領域中競爭。我們的技術解決方案和技術支援的服務解決了重大的客戶問題，並且我們的解決方案已經得到市場的驗證。我們不斷完善我們的價值主張。我們相信，讓客戶滿意的強有力的基本執行力是實現我們為每個人提供高品質、負擔得起且可獲得的醫療保健的使命的關鍵。

This quarter's financial results fully show the impacts of the deconsolidation of Glocal, the divestment of IGI, and the wind down of the behavioral health business. Each of these actions have a significant milestone toward rightsizing our business and streamlining our core business segment.

本季的財報充分展現了Glocal分拆、IGI撤資、行為健康業務退出的影響。這些行動中的每一項對於調整我們的業務規模和精簡我們的核心業務部門來說都是一個重要的里程碑。

I'd like to spend a few minutes sharing some of our business highlights this quarter. Within our virtual care segment, our US Telehealth business signed contracts with 27 new clients that will generate incremental revenues over the next 12 months. Additionally, (inaudible) 15.6 million minutes, representing growth of 47% from the second quarter over the same period last year, resulting in the business for the $16.8 million of revenue.

我想花幾分鐘時間分享我們本季的一些業務亮點。在我們的虛擬護理領域，我們的美國遠距醫療業務與 27 個新客戶簽署了合同，這些客戶將在未來 12 個月內產生增量收入。此外，（聽不清楚）1,560萬分鐘，較第二季比去年同期成長47%，導致該業務收入1,680萬美元。

Our services segment revenues of $15.5 million were impacted by the strategic sale of IGI, coupled with the decision to wind down the behavioral health business in the first and second quarters of 2022. We continued to see strong revenue of $11.1 million in our present services business, was 15% utilization growth over the same period last year.

我們的服務部門收入為 1,550 萬美元，受到 IGI 策略性出售以及在 2022 年第一季和第二季結束行為健康業務的決定的影響。較去年同期成長15%。

In our integrated care management segment, we refined our go-to-market strategy and have seen an increase in our professional services, driving revenues of $5.5 million this quarter. We remain optimistic about the outlook for the segment for the remainder of the year.

在我們的綜合護理管理部門，我們完善了進入市場策略，專業服務增加，本季收入達到 550 萬美元。我們對該領域今年剩餘時間的前景保持樂觀。

Importantly, we are happy to report that all three segments were EBITDA positive on an adjusted basis this past quarter. Our UpHealth Innovation Lab launched in the first quarter is well underway, and we are in the process of developing use cases with our strategic clients to validate our hypotheses with the market.

重要的是，我們很高興地報告，上個季度調整後的所有三個部門的 EBITDA 均為正值。我們在第一季推出的 UpHealth 創新實驗室進展順利，我們正在與策略客戶一起開發用例，以驗證我們的市場假設。

A key activity in our pivot to growth has been increasing the size, velocity, and quality of opportunities in our pipeline. We made significant progress on this in the second quarter. Total pipeline increased by 6% over the first quarter of 2023. The velocity of opportunities moving through the pipeline increase as we close out 20% of the total opportunities in the pipeline during the quarter.

我們轉向成長的一項關鍵活動是增加我們通路中機會的規模、速度和品質。第二季我們在這方面取得了重大進展。管道總數比 2023 年第一季增加了 6%。

We made investments in additional sales and business development roles in the second quarter to improve our sales and bidding processes and to amplify our ability to add significant pipeline for us to pursue. These resources are shifting from focusing on a smaller group of health systems to an expanded group of larger health system opportunities to build upon our success in the provider market.

我們在第二季度對額外的銷售和業務開發角色進行了投資，以改善我們的銷售和投標流程，並增強我們增加重要管道的能力。這些資源正在從關注較小的衛生系統群體轉向擴大的較大的衛生系統機會群體，以鞏固我們在提供者市場的成功。

We continue to focus on expenses and aligning our cost structure to our revenue. Through the first six months of 2023, we reduced, as a percentage of revenue, total sales and marketing, R&D and general and administrative expenses from 44% in the first half of 2022 to 41% in the first half of 2023.

我們繼續關注費用並使我們的成本結構與收入保持一致。 2023 年前六個月，我們將銷售和行銷總額、研發以及一般和管理費用佔收入的百分比從 2022 年上半年的 44% 減少到 2023 年上半年的 41%。

Turning specifically to our second-quarter results. At a high level, our second quarter was notable. Revenues in the second quarter of 2023 were $37.8 million compared to $43.7 million in the second quarter last year. Again, it is important to keep in mind that the second-quarter 2023 results do not include a full quarter's worth of performance from IGI or the behavioral health business, and that we were down for any revenues from Glocal.

具體來說我們第二季的業績。從高水準來看，我們的第二季非常引人注目。 2023 年第二季的營收為 3,780 萬美元，而去年第二季的營收為 4,370 萬美元。同樣，重要的是要記住，2023 年第二季度的業績不包括 IGI 或行為健康業務的整個季度的業績，而且我們來自 Glocal 的任何收入都下降了。

Gross margin continued to expand to 53% from 48% in the second quarter of 2022 as a result of improvements across the business and favorable payer events. Adjusted EBITDA for the second quarter of 2023 improved by $1.3 million to $5.3 million compared to adjusted EBITDA for the second quarter of 2022 of $4 million.

由於業務改善和有利的付款人活動，毛利率繼續從 2022 年第二季的 48% 擴大至 53%。 2023 年第二季調整後 EBITDA 增加 130 萬美元，達到 530 萬美元，而 2022 年第二季調整後 EBITDA 為 400 萬美元。

Year to date, early indicators are very positive. And we are pleased with the results thus far and plan to continue executing on our commitments, revenue that is growing appropriately, with a clear focus in converting earnings to positive free cash flow. Most importantly, our efforts have enabled us to focus on executing our plan of delivering solutions for our customers to combine technology and services to improve access to care, creating a world in which everyone, everywhere can enjoy the best time.

今年迄今為止，早期指標非常積極。我們對迄今為止的結果感到滿意，並計劃繼續履行我們的承諾，收入適當增長，重點是將收益轉化為正的自由現金流。最重要的是，我們的努力使我們能夠專注於執行為客戶提供解決方案的計劃，將技術和服務結合起來，以改善獲得護理的機會，創造一個讓世界各地的每個人都能享受最好時光的世界。

Before I turn the call over to Mark, I want to thank our shareholders and all of our constituents for continuing the journey with UpHealth. While much has been accomplished to date and halfway through 2023, we are pleased with our improvements and fundamental execution that remains work to be done. We have the right team in place to deliver on our strategic vision, and I can confidently say I'm excited about what lies ahead of us.

在將電話轉給 Mark 之前，我要感謝我們的股東和所有選民繼續與 UpHealth 一起前進。儘管迄今為止和 2023 年已過半，我們已經取得了許多成就，但我們對我們的改進和基本執行感到滿意，但仍有工作要做。我們擁有合適的團隊來實現我們的策略願景，我可以自信地說我對我們面前的事情感到興奮。

I'll now turn the call over to Martin to discuss our financial results in detail before we open up the call for questions. Martin?

現在，我將把電話轉給馬丁，在我們開始提問之前詳細討論我們的財務表現。馬丁？

Thanks very much, Sam. We appreciate everyone joining us today. Before I begin my review of our second-quarter results, I want to first comment on the presentation as it pertains to the results and comparison periods.

非常感謝，山姆。我們感謝今天加入我們的所有人。在開始審查第二季業績之前，我想先對簡報發表評論，因為它涉及結果和比較期。

Recall that the company deconsolidated its Indian business, Glocal, from the financial statements as of July 1, 2022. And so comparisons between Q2 2022 and Q2 2023 and year-to-date Q2 2023 and the virtual care infrastructure segment need to consider the impact of the deconsolidation of Glocal.

回想一下，該公司自2022 年7 月1 日起將其印度業務Glocal 從財務報表中取消合併。設施部門需要考慮其影響Glocal 的解散。

UpHealth's revenue for the second quarter of 2023 was $37.8 million. This represents a decline from Q1 2023 revenues as a result of the disposition of the IGI business and the wind down of the Missouri behavioral health business during the second quarter. Gross margin for the second quarter was 53% compared to 54% in Q1 2023, and adjusted EBITDA was $5.3 million compared to $6.6 million in the first quarter.

UpHealth 2023 年第二季的營收為 3,780 萬美元。由於 IGI 業務的處置以及密蘇裡州行為健康業務在第二季度的結束，這意味著 2023 年第一季的收入有所下降。第二季的毛利率為 53%，而 2023 年第一季為 54%；調整後的 EBITDA 為 530 萬美元，而第一季為 660 萬美元。

Looking at revenue breakdown by segment. Virtual care infrastructure, which now includes only our US telehealth business, was the largest contributor with $16.8 million of revenue or 45% of the total revenue. So VCI's revenues were down slightly from Q1 2023 due to lower volumes on a sequential quarterly basis.

查看按細分市場劃分的收入細分。虛擬護理基礎設施（目前僅包括我們的美國遠距醫療業務）是最大的貢獻者，收入為 1,680 萬美元，佔總收入的 45%。因此，由於季度銷量下降，VCI 的營收較 2023 年第一季略有下降。

Year-over-year growth in the US Telehealth business, excluding Glocal from the 2022 results, the Q2 2023 was over 27% and year-to-date Q2 2023 was over 34%. Services, which for the quarter included the results from our Florida behavioral health business, the compounding pharmacy business before the sale of transaction which closed on May 11, and the wind-down of our Missouri physician practice business, was next with $15.5 million or 41% of the second quarter's total revenues.

美國遠距醫療業務的年增率（將 Glocal 排除在 2022 年業績之外），2023 年第二季成長超過 27%，2023 年第二季迄今成長超過 34%。服務業，包括本季度我們佛羅裡達州行為健康業務的業績、5 月11 日結束的交易出售前的複合藥房業務，以及我們密蘇裡州醫師執業業務的逐步結束，服務業以1,550 萬美元或41 美元排在第二位。

The IGI pharmacy business contributed approximately $3.7 million of revenue during the second quarter, and the Missouri physician practice business contributed approximately $700,000. Integrated care management had revenues of $5.5 million or 14% of the second quarter's total. The company's gross margin was 53% in the second quarter, down 1% from the first quarter's gross margin of 54%.

第二季度，IGI 藥局業務貢獻了約 370 萬美元的收入，密蘇裡州醫師執業業務貢獻了約 70 萬美元。綜合護理管理收入為 550 萬美元，佔第二季總收入的 14%。該公司第二季毛利率為53%，較第一季54%的毛利率下降1個百分點。

Second-quarter margins by segment were as follows: virtual care infrastructure, 50%; integrated care management, 69%; and services, 50%. We view gross margin as a key metric for UpHealth and is being useful for comparing our results to peers.

第二季各細分市場的利潤率如下：虛擬護理基礎設施，50%；綜合護理管理，69%；和服務，50%。我們將毛利率視為 UpHealth 的關鍵指標，對於將我們的結果與同行進行比較非常有用。

Accordingly, let me also provide some additional color on our gross margins from a trend perspective as well as framing them within the context of our overall financial model. Gross margins in virtual care infrastructure increased from 51% in Q4 2022 to 58% in the first quarter of 2023 and normalized back to 50% in Q2 2023. The increased margins in Q1 stemmed largely from mix and timing issues, and we would expect the US Telehealth business to continue to post gross margins of approximately 50%.

因此，讓我從趨勢的角度對我們的毛利率進行一些補充說明，並將其置於我們整體財務模型的背景下。虛擬照護基礎設施的毛利率從2022 年第四季的51% 上升至2023 年第一季的58%，並在2023 年第二季恢復正常至50%。和時機問題，我們預計美國遠距醫療業務毛利率持續維持在 50% 左右。

Gross margins at integrated care management increased from 67% in Q1 2023 to 69% in Q2 2023. And we do expect gross margins in this business segment to decline somewhat as professional services makes up an increasing percentage of the revenue mix over the last half of the year. Gross margins in the services segment increased from 48% in Q1 2023 to 50% in Q2 as a result of higher volumes in our Florida behavioral health business and the reduced contribution of the lower gross margin in IGI and Missouri behavioral health assets.

綜合護理管理的毛利率從2023 年第一季的67% 增加到2023 年第二季的69%。比例在下半年不斷增加。由於我們佛羅裡達州行為健康業務的銷售增加以及 IGI 和密蘇裡州行為健康資產毛利率較低的貢獻減少，服務部門的毛利率從 2023 年第一季的 48% 增加到第二季的 50%。

Second-quarter net income on a GAAP basis included $8.2 million of asset impairments associated with the wind down of the Missouri services business and various leases, and losses recognized upon the sale of IGI. in May. UpHealth second-quarter adjusted EBITDA was $5.3 million. Adjustments were made for the previously mentioned changes in the carrying values of the Missouri services and IGI businesses and for certain non-recurring expenses, including consulting, legal, and restructuring expenses.

以 GAAP 計算的第二季淨利包括與密蘇裡州服務業務和各種租賃結束相關的 820 萬美元資產減值，以及出售 IGI 時確認的損失。在五月。 UpHealth 在第二季調整後 EBITDA 為 530 萬美元。針對前面提到的密蘇裡州服務和 IGI 業務帳面價值的變化以及某些非經常性費用（包括諮詢、法律和重組費用）進行了調整。

We expect legal expenses for existing matters to continue through the third quarter and then should decline significantly thereafter. As a reminder, adjusted EBITDA is a non-GAAP measure, and we have included a reconciliation of GAAP operating loss to adjusted EBITDA in the press release.

我們預計現有事項的法律費用將持續到第三季度，然後應大幅下降。提醒一下，調整後的 EBITDA 是一項非 GAAP 衡量標準，我們在新聞稿中納入了 GAAP 營業虧損與調整後 EBITDA 的調整表。

I'd like to spend a few minutes discussing the company's liquidity position. As of June 30, 2023, the company had an unrestricted cash balance of over $46 million. The company's cash balance increased over the quarter, largely as a result of the net proceeds from the sale of IGI, which exceeded $54 million. It was offset by a $10.3 million redemption of the company's 2025 senior secured notes in accordance with the indenture.

我想花幾分鐘討論一下公司的流動性狀況。截至2023年6月30日，該公司無限制現金餘額超過4,600萬美元。該公司的現金餘額在本季度有所增加，主要是由於出售 IGI 的淨收益超過 5,400 萬美元。根據契約，該公司 2025 年優先擔保票據的 1,030 萬美元贖回抵消了這一損失。

Our current cash position and the financial performance of the business, which we continue to expect to become operating cash flow positive later this year, will provide us sufficient liquidity to execute on our current growth plans. As a result of our strong financial and operating results for the first half of the year and based upon our expectations for the second half, we expect that our full year revenue and gross margins will be at the top end of the ranges of $127 million to $135 million and 43% to 45%, respectively. And that adjusted EBITDA for 2023 will exceed $15 million, well above our original guidance of $7 million to $10 million.

我們目前的現金狀況和業務的財務表現（我們繼續預計今年稍後將實現經營現金流為正）將為我們提供足夠的流動性來執行當前的成長計劃。由於我們上半年強勁的財務和營運業績，以及我們對下半年的預期，我們預計全年營收和毛利率將達到 1.27 億美元至 1.27 億美元的上限。 。 2023 年調整後的 EBITDA 將超過 1,500 萬美元，遠高於我們最初 700 萬至 1,000 萬美元的指引。

That concludes our prepared remarks. Operator, we're now ready to take questions.

我們準備好的演講到此結束。接線員，我們現在準備好回答問題。

Thank you. We will now be conducting a question-and-answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。 （操作員說明）

Bill Sutherland, The Benchmark Company.

比爾·薩瑟蘭，基準公司。

Thank you. Nice quarter. Sam, I noticed that in virtual care, it's been three quarters and roughly around $17 million in volume. But you've talked about a lot of client growth in pipeline and expansion. So just trying to square those two.

謝謝。不錯的季度。 Sam，我注意到虛擬護理領域已經過了三個季度，銷售額約為 1700 萬美元。但您談到了管道和擴張方面的大量客戶成長。所以只是要把這兩者平方。

Thanks, Bill.

謝謝，比爾。

(inaudible - microphone inaccessible)

（聽不清楚 - 麥克風無法存取）

I'm sorry, Bill. I cut you off. Were you finished (multiple speakers)?

對不起，比爾。我打斷你了。你們說完了嗎（多位發言者）？

No, that's all right. I was (inaudible)

不，沒關係。我當時（聽不清楚）

Yeah. Thank you, Bill. Appreciate the question and feedback on the quarter. So a couple of things.

是的。謝謝你，比爾。感謝有關本季度的問題和回饋。有幾件事。

We haven't seen a bit of a mix in the utilization of [voice] versus video, so that's impacted the numbers a little bit. We're also going through the implementation of getting the new customers up and running. So it takes a little bit of while for that business to grow. And then just the mix -- not only the video mix versus voice, but also the different language utilization that we see is an impact to that.

我們還沒有看到[語音]與視訊的使用有任何混合，因此這對數字產生了一些影響。我們也正在實施讓新客戶啟動並運行的流程。因此，該業務的成長需要一點時間。然後就是混合——不僅是視訊混合與語音的混合，而且我們看到的不同語言的使用都會對此產生影響。

So we are confident as we're adding more business into the mix. So we're implementing that our numbers will continue to trend up. But those are the major factors that are impacting the growth trajectories of that business.

因此，我們對增加更多業務充滿信心。因此，我們正在實現我們的數字將繼續呈上升趨勢。但這些都是影響該業務成長軌跡的主要因素。

I'm curious, Sam, what would cause a voice and tell us to move around?

我很好奇，山姆，什麼會發出聲音並告訴我們四處走動？

I think it's just -- some of it is just the facilities and how they're using our products. Some of it is a little bit of seasonality. We had a little bit of a change in our customer mix in terms of just how they're utilizing the system.

我認為這只是——其中一些只是設施以及他們如何使用我們的產品。其中一些是有一點季節性的。我們的客戶群在使用系統的方式方面發生了一些變化。

But there's no alarming trends that we're looking at right now, Bill. So we're just continuing to drive utilization through our existing customers and onboard those new customers that we've added so far this year.

但我們目前沒有看到令人擔憂的趨勢，比爾。因此，我們只是繼續透過現有客戶和今年迄今增加的新客戶來提高利用率。

Okay. And Martin, what could you say about the services margin, the gross margin that went up to 50% in 2Q as far as looking forward?

好的。馬丁，您對服務利潤率有何看法？

I'm sorry, Bill, was that for me?

對不起，比爾，那是給我的嗎？

Yeah. I was just curious about the gross margin.

是的。我只是對毛利率感到好奇。

(multiple speakers) Yeah. So the margin in the services segment increased because we had less contribution from the IGI, pharmacy business, and the BHS physician practice management business, which we will have no contribution from those businesses in the third quarter.

（多個發言者）是的。因此，服務部門的利潤率有所增加，因為 IGI、製藥業務和 BHS 醫師執業管理業務的貢獻較少，而這些業務在第三季將沒有貢獻。

So the gross margin on the behavioral health business that remains is somewhat driven -- well, it's driven by mix. But we would expect it to continue in the 45% to 50% range.

因此，行為健康業務的毛利率仍然受到一定程度的驅動——嗯，它是由混合驅動的。但我們預計這一比例將繼續保持在 45% 至 50% 的範圍內。

I mean, there's a utilization factor, I understand it, right for you, for most of your services.

我的意思是，我理解，有一個利用率因素適合您，適合您的大多數服務。

Yeah, it's a combination as you might expect of mix and utilization.

是的，正如您所期望的那樣，它是混合和利用的組合。

Okay. That's it for me. Thank you.

好的。對我來說就是這樣。謝謝。

Thanks, Bill.

謝謝，比爾。

Ben Haynor, Alliance Global Partners.

Ben Haynor，聯盟全球合作夥伴。

Good afternoon, gentlemen. Thanks for taking the questions. Just wondering if you could share a little bit more on the pipeline.

下午好，先生們。感謝您提出問題。只是想知道您是否可以分享更多有關管道的資訊。

I think if I heard you right, it's expanded about 6%, and you closed out 20% of the opportunities. Maybe provide some clarification on what you mean by close out. Is that delineated one way or the other, like you figured out that they're not going to buy or are going to buy? Or how does that terminology work within UpHealth?

我想如果我沒聽錯的話，它擴大了大約 6%，而你關閉了 20% 的機會。也許可以對您所說的結束的含義進行一些澄清。這是以一種或另一種方式描述的，就像你認為他們不會購買或將要購買一樣？或者這個術語在 UpHealth 中如何運作？

Sure. Thanks, Ben. Appreciate the question. Good to hear from you.

當然。謝謝，本。感謝這個問題。很高興聽到你的消息。

For a couple of things, as we've been talking about, one of our major focus is on our pivot to growth. And we have been working very hard to focus on growing our pipeline, understanding our pipeline, and really pushing that as a key leading indicator for growth.

正如我們一直在談論的，我們的主要關注點之一是轉向成長。我們一直在非常努力地專注於發展我們的產品線、了解我們的產品線，並真正將其作為成長的關鍵領先指標。

So as we talked about last time, we set a pretty ambitious goal for growing our pipeline for the business. I always take the view, you can never have enough pipeline, you're always looking for more sales opportunities.

因此，正如我們上次談到的，我們為擴大業務管道設定了一個非常雄心勃勃的目標。我始終認為，你永遠不會有足夠的管道，你總是在尋找更多的銷售機會。

There's three things that we consistently look at, right? The absolute value in the pipeline, the quality of the opportunities in the pipeline, and the velocity with which they're moving through the pipeline. And we've learned a lot in the business in Q2.

我們一直關註三件事，對嗎？管道中的絕對價值、管道中機會的品質以及它們在管道中移動的速度。我們在第二季的業務中學到了很多。

So first, we mentioned we have 27 opportunities that we want. Those were opportunities that we obviously close up. We lost some opportunities in the second quarter as well that we had bid on. And so those were important lessons for us as well.

首先，我們提到我們有 27 個想要的機會。我們顯然已經抓住了這些機會。我們在第二季也失去了一些我們競標的機會。因此，這些對我們來說也是重要的教訓。

What we're seeing is that we definitely have better higher quality opportunities in our pipeline than we've had in the past. And I actually think this velocity is a good thing for us. Because we're getting to a yes, no answer much more quickly.

我們看到的是，與過去相比，我們的管道中肯定有更好、更高品質的機會。事實上，我認為這種速度對我們來說是件好事。因為我們可以更快得到肯定或否定的答案。

In the past, we would notice that we had some opportunities that stayed in the pipeline for a fairly long period of time. And we've been trying to drive those two to completion. So that is really feeding into some of the things that we talked about that we need more people in our commercial organization, more boots on the ground, focused on getting out into the market, and selling our products.

在過去，我們會注意到我們有一些機會等待了相當長的一段時間。我們一直在努力推動這兩個目標完成。因此，這確實融入了我們所討論的一些事情，即我們需要更多的商業組織人員，更多的實地人員，專注於進入市場並銷售我們的產品。

We need to focus on putting new high-quality opportunities into the pipeline, moving them through quickly. And then when we do this, this is, of course, going to help us have better data so that we can forecast our growth and plan more appropriately.

我們需要專注於將新的高品質機會放入管道中，並迅速利用它們。當我們這樣做時，這當然會幫助我們獲得更好的數據，以便我們可以預測我們的成長並更適當地進行規劃。

So I'm actually really happy with the progress that we've made in the first half of the year in terms of how we're thinking about pipeline. And we didn't have that maturity as an organization then at this point last year. So I'm really pleased with the progress that we're making there.

因此，我實際上對今年上半年我們在考慮管道方面取得的進展感到非常滿意。去年這個時候我們作為一個組織還沒有那麼成熟。因此，我對我們在這方面取得的進展感到非常滿意。

Okay. That's definitely helpful color. And then digging in a little bit on -- you mentioned the higher quality pipeline. I mean, is that strictly numerical? Is that size of -- just a sheer size? Is that the logos are better, or what's the right way to think about that?

好的。這絕對是有用的顏色。然後深入研究一下——您提到了更高品質的管道。我的意思是，這是嚴格的數字嗎？這個尺寸只是一個純粹的尺寸嗎？徽標是否更好，或者思考這個問題的正確方法是什麼？

And then on the boots on the ground side of things, I mean, you had sales and marketing ticked down pretty dramatically, sequentially. Where do you see that tracking from here?

然後，在地面方面，我的意思是，銷售和行銷連續大幅下降。您從這裡看到的跟踪在哪裡？

Yes. So let me take the first part of your question there first. I think it's an answer of all of the above.

是的。讓我先回答你問題的第一部分。我認為這是上述所有問題的答案。

So of course, we want premier logos with large deals. We're still relatively small company that's growing, and we have to prove ourselves in the marketplace. So I would say we've been winning good opportunities.

因此，當然，我們需要大額交易的優質標誌。我們仍然是一家正在成長的相對較小的公司，我們必須在市場上證明自己。所以我想說我們一直在贏得很好的機會。

When I talk about the quality of the opportunity, it's -- are we bidding on business that we've worked with the customer that understands that they have a problem that needs to be solved, or that we understand they have a problem that we can solve it with our solutions. They understand that's a problem, and also that we're talking to somebody at the right level of the organization that can make a decision on solving that.

當我談論機會的品質時，我們是在競標與客戶合作過的業務，了解他們有需要解決的問題，還是我們了解他們有我們可以解決的問題來用我們的解決方案解決它。他們明白這是一個問題，而且我們正在與組織中合適級別的人員進行交談，他們可以就解決這個問題做出決定。

We've gone after some pretty big deals in the past quarter. And a couple of the things that we've learned is we've got some work to do on building relationships at higher levels within the organization, particularly in the C-suite of the organization.

上個季度我們完成了一些相當大的交易。我們了解到的一些事情是，我們需要做一些工作來建立組織內更高層級的關係，特別是在組織的最高管理階層中。

When you start adding in data analytics and AI into those solutions, the traditional buyer that may have historically purchased language line, for example, might not necessarily be the right point of contact to buy a more advanced solution that includes data, AI, and language capabilities, just as one example. So those are some of the things that we've been working on, Ben, to try and understand.

例如，當您開始將數據分析和人工智慧添加到這些解決方案中時，過去可能購買過語言系列的傳統買家可能不一定是購買包含數據、人工智慧和語言的更高級解決方案的正確聯絡人能力，僅舉一例。 Ben，這些是我們一直在努力嘗試和理解的一些事情。

So we're, of course, trying to always punch a little bit above our weight. We've got work to do. We're figuring that out. We've learned a lot of good things over the past quarter, and we'll continue to drive there.

所以，當然，我們總是努力打出超出我們體重的力量。我們還有工作要做。我們正在解決這個問題。在過去的一個季度中，我們學到了很多好東西，我們將繼續向那裡前進。

I'm sorry, I didn't get all of it.

抱歉，我沒聽懂全部內容。

No, go ahead. I was interrupting you, sorry.

沒有，繼續。我打擾你了，抱歉。

Oh, I just was going to say I'm sorry. I didn't finish my notes. Can you please repeat the second part of your question? I apologize.

哦，我只是想說對不起。我的筆記還沒寫完。您能重複一下您問題的第二部分嗎？我道歉。

Sure. The more boots on the ground. You had a pretty significant decline sequentially. Where does it track from here?

當然。地上的靴子越多。您連續出現了相當顯著的下降。它從這裡追蹤到哪裡？

(multiple speakers) Yeah. So this comes down to -- as we're looking at basically how we are managing the expenses within our business. And so we are laser focused on cost management and making sure that our costs are aligned to revenue.

（多個發言者）是的。所以這歸結為——我們基本上正在考慮如何管理我們業務中的費用。因此，我們非常關注成本管理，並確保我們的成本與收入保持一致。

We think it's critical for us to invest in our commercial organization. And to me, that's additional salespeople, it's additional product people, it's additional marketing people. But we know we cannot keep layering costs into the organization.

我們認為投資我們的商業組織對我們來說至關重要。對我來說，這是額外的銷售人員，這是額外的產品人員，這是額外的行銷人員。但我們知道我們不能繼續將成本分攤到組織中。

So we're focused on how we align resources to initiatives that are going to drive higher utilization of our capital so that we can drive a higher return. But also, that we're making investments in areas and some parts of the business that are growing, and they can return cash quickly. So hiring these salespeople, we want to make sure that they're being hired in the right parts of our organization, are hitting the ground very, very quickly, adding to the pipeline and selling what we want to sell off in the organization.

因此，我們專注於如何將資源與能夠提高資本利用率的舉措結合，從而獲得更高的回報。而且，我們正在對正在成長的領域和業務的某些部分進行投資，並且他們可以快速返還現金。因此，在僱用這些銷售人員時，我們希望確保他們被聘用在我們組織的正確部門，非常非常迅速地投入工作，增加通路並銷售我們想要在組織中銷售的產品。

So I do think, as we go further into the year, you're going to see us continue to add in some additional resource into the sales and marketing budget, which will more than likely be offset by reductions in other areas of our G&A expenses.

因此，我確實認為，隨著今年的深入，您將看到我們繼續在銷售和行銷預算中添加一些額外資源，這很可能會被我們其他領域的一般管理費用的減少所抵消。

Okay. That's helpful. And then most likely the last one for me on the enhancements you've mentioned previously in Canada, I suppose that goes hand-in-hand with some of the AI stuff with data side of things that you're developing. Anything more that you can talk about there that you're excited about? Just any color is always appreciated upon.

好的。這很有幫助。然後很可能是我的最後一個關於您之前在加拿大提到的增強功能，我認為這與您正在開發的東西的數據方面的一些人工智慧內容密切相關。您還有什麼可以談論的讓您感到興奮的事情嗎？任何顏色總是受到讚賞。

Of course. So we did a lot of work in the second quarter around understanding and assessing our data assets and working on finding partners that we can work with some AI into our business, basically. And we're currently designing some additional capabilities that we think are going to be able to help our customers, but also help our business as well.

當然。因此，我們在第二季度做了很多工作，圍繞著理解和評估我們的數據資產，並努力尋找可以將人工智慧融入我們業務的合作夥伴。我們目前正在設計一些額外的功能，我們認為這些功能不僅能夠幫助我們的客戶，也有助於我們的業務。

So just two quick examples. Looking at our data assets, we've developed some interesting tools that help with things like next best actions for case managers or some AI-driven clinical capabilities that will allow our provider clients to deal or to help them address the shortfall, or the difficulties that they're having hiring people right now for some of the processes that they might use, especially focusing on a limited English proficiency population.

只是兩個簡單的例子。看看我們的數據資產，我們開發了一些有趣的工具，可以幫助案件管理者採取下一步最佳行動或一些人工智慧驅動的臨床功能，使我們的提供者客戶能夠處理或幫助他們解決短缺或困難他們現在正在招募人員來執行他們可能使用的一些流程，特別是針對英語能力有限的人。

So we're testing a couple of these capabilities out within in our own delivery business right now. So that work is going well. And we're having conversations with our key strategic clients about how we can work with them to solve some of those problems that they're seeing as well.

因此，我們現在正在我們自己的交付業務中測試其中的一些功能。所以這項工作進展順利。我們正在與我們的主要策略客戶進行對話，討論如何與他們合作解決他們也遇到的一些問題。

So early on, we've got a lot of really good hypotheses that we're testing in the market, Ben, and I think you're going to see some more coming out from us on that throughout the course of the year.

很早就，我們已經有了很多非常好的假設，我們正在市場上進行測試，Ben，我想你會在這一年裡看到我們更多關於這方面的假設。

Okay. So the pumps already primed, and that you're already talking with some potential customers on how these things can be implemented and how they work within their needs.

好的。因此，幫浦已經準備好，並且您已經與一些潛在客戶討論如何實施這些東西以及它們如何滿足他們的需求。

Absolutely. And that the so key is going to be finding a couple of customers that it goes back to what I mentioned earlier. We've got to clearly articulate what the problem we're trying to solve is. They have to understand it's a problem, and we've got (technical difficulty) for the right part of the organization to solve that. So those are some of the key lessons that we've learned in the second quarter as we've gotten out and started talking to our clients about this.

絕對地。關鍵是找到一些客戶，這可以追溯到我之前提到的。我們必須清楚地闡明我們要解決的問題是什麼。他們必須明白這是一個問題，而我們已經為組織的正確部分解決了（技術難題）。這些是我們在第二季學到的一些重要經驗教訓，因為我們已經開始與客戶討論這個問題。

Good deal. Very helpful. Thanks for taking the questions, gentlemen.

好交易。很有幫助。感謝您提出問題，先生們。

You're welcome. Thanks, Ben.

不客氣。謝謝，本。

Thanks, Ben.

謝謝，本。

Mike Latimore, Northland Capital.

麥克‧拉蒂摩爾 (Mike Latimore)，北國資本 (Northland Capital)。

Hi, this is [Aditya] on behalf of Mike Latimore. Could you give some color on the labor shortage?

大家好，我是 [Aditya]，代表 Mike Latimore。您能否對勞動力短缺問題進行一些說明？

Is there any tailwinds over there? Are you seeing more demand for your telehealth services due to the labor shortage?

那邊有順風嗎？由於勞動力短缺，您是否發現遠距醫療服務的需求增加？

Sure. I think we're seeing this is a pretty common topic across the provider industry in particular. You're seeing a bit of a nursing shortage. You're seeing a bit of a provider shortage. Organizations are having a hard time recruiting and hiring for roles.

當然。我認為我們看到這是一個非常普遍的話題，尤其是在提供者行業。你會發現護理人員有些短缺。您會看到供應商有些短缺。組織在招募和聘用職位時遇到困難。

And so this really starts to affect areas. And this is part of the reason why we've seen so much growth in our telehealth business, is when they're looking for resources, not only that can fill the nursing functions, but basically be bilingual or multilingual and deal with their limited English proficiency populations. That's an area where we're seeing -- or those customers are the ones where we're seeing an uptick in the utilization of those services.

所以這確實開始影響到一些地區。這就是我們的遠距醫療業務如此增長的部分原因，就是當他們尋找資源時，不僅可以填補護理職能，而且基本上是雙語或多語並處理他們有限的英語熟練人群。這是我們看到的一個領域，或者說我們看到這些客戶對這些服務的使用率上升。

So we also have a theory that we can start to fold in some additional capabilities to help address that. Like I said, we're testing some of those things in our existing business to refine it and figure out how that works. And we're talking to some of our customers about how we can take on some additional work for them where they're seeing that.

因此，我們還有一個理論，就是我們可以開始加入一些額外的功能來幫助解決這個問題。就像我說的，我們正在現有業務中測試其中的一些東西，以完善它並弄清楚它是如何運作的。我們正在與一些客戶討論如何在他們看到這種情況時為他們承擔一些額外的工作。

But just in general, when you look across the industry trends, it's a pretty well documented phenomenon in the healthcare industry right now that we expect the country to be several hundred -- hundreds of thousands of nurses short here by 2025 for the demand that they're seeing. So we think it's an area that is ripe for innovation and ripe for some solutions that can help the providers address those needs.

但總的來說，當你縱觀整個行業趨勢時，你會發現醫療保健行業目前存在一個有據可查的現象，我們預計到2025 年，該國將短缺數百至數十萬名護士，以滿足他們的需求。因此，我們認為這是一個創新成熟的領域，也適合一些可以幫助提供者滿足這些需求的解決方案。

All right. And how much are your legal expenses in this quarter?

好的。本季您的法律費用是多少？

Martin, do you want to take that one?

馬丁，你想買那個嗎？

Sure. Hey, no, so we haven't announced, nor have we ever announced some legal expenses. What we have added back to the calculation of adjusted EBITDA was just north of $3.6 million for the quarter. And that related almost exclusively to the Glocal arbitration and litigation matters.

當然。嘿，不，所以我們還沒有宣布，也沒有宣布過一些法律費用。我們重新計算出的本季調整後 EBITDA 剛剛超過 360 萬美元。這幾乎完全與 Glocal 仲裁和訴訟事務有關。

All right. And can you just repeat what was the sequential and year-over-year growth for continuing operations?

好的。您能否重複一下持續經營業務的連續成長和年成長是多少？

I'm sorry. One more time.

對不起。再一次。

What was your sequential growth for the continuing operations? Excluding Glocal, what was your growth?

您的持續經營業務較上季成長是多少？除去Glocal，你們的成長是多少？

Excluding Glocal for the quarter?

該季度不包括全球本地化嗎？

Yeah.

是的。

Yeah. In ICM, that number was about 34% year to date.

是的。在 ICM 中，今年迄今這一數字約為 34%。

All right. Thank you.

好的。謝謝。

Thank you.

謝謝。

Thank you. There are no further questions at this time. I would like to turn the floor back over to Sam Meckey for closing comments.

謝謝。目前沒有其他問題。我想把發言權交還給薩姆·麥基（Sam Meckey）以供結束評論。

Thank you, operator. I want to thank everybody again for joining us today and also for all of the very, very thoughtful questions. We really appreciate this discussion, and we really appreciate the ability to just speak to you.

謝謝你，接線生。我想再次感謝大家今天加入我們，也感謝大家提出了非常非常深思熟慮的問題。我們非常感謝這次討論，也非常感謝能夠與您交談。

As I mentioned, I'm very pleased with the work that we have done in the first half of 2023. And I look forward to speaking with you again in November to discuss our third-quarter results. Martin and I are excited to share how we're progressing this year.

正如我所提到的，我對我們在 2023 年上半年所做的工作感到非常滿意。馬丁和我很高興分享我們今年的進展。

We're working very hard to finish our recalibration gear strongly and to transition building and scaling for growth for UpHealth in 2024. We are very confident in our team's ability to execute on our strategy, and we're really grateful for your continued interest in UpHealth. Thanks again for joining us, and I hope you have a wonderful evening.

我們正在非常努力地完成我們的重新校準工作，並在 2024 年過渡建設和擴展 UpHealth 的成長。再次感謝您加入我們，希望您有個愉快的夜晚。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for participation

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與