Streamline Health Solutions (STRM) 22 Apr 212020 Q4 Earnings call transcript

Hello! And welcome to the Streamline Health Solutions, Fourth Quarter and Fiscal Year 2020 Earnings Conference Call and Webcast. At this time all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. It’s now my pleasure to turn the call over to Randy Salisbury, Senior Vice President, Chief Sales and Marketing Officer for Streamline Health Solutions. Please go ahead sir.

XXXX. us for the fiscal the which January joining Streamline results year for ended Solutions Health fourth XX, you to financial review of XXXX Thank quarter and

name As Relations. is Vice the and and Health. at Sales Officer Chief operator communications, I conference indicated, manage President Randy I’m all the call Salisbury. Senior here Streamline Marketing my including Investor

Financial a Officer at and of question-and-answer today call on anyone Tee Green, will our streamlinehealth.net other Chief Executive financial the or Tom Chief today's Board; the from call you on we are At copy announcing not release, of it call results, and at me for conclusion these numerous does of Joining and Chairman session. remarks, the today's If Officer. Gibson, press President can prepared the websites. full-text website have company's a retrieve participating open the

we clear which the be with earnings begin to the sure viewed. want calls we provided should be statement. may how are we all record, submit following as be today, prepared of Before record for therefore with our on everyone certain remarks, We for the information

risks, materially factors not First, is factors. assumptions discuss. with could and Private Act forward-looking the other Form including SEC conference this made may that recent facts on that results Please the our press with are Commission, subject of which from call These about differ and be more assumptions U.S. XXXX. Annual statements considered information the other are we cause those Securities Exchange uncertainties, made to to file Report, these for XX-K and and statements are uncertainties and company's releases refer meaning on Securities filings the most Reform within historical the Litigation risks, to to actual

today. As always, as these management's are current presenting of of analysis items we

does today. not call publicly such evaluating will obligation or Please undertake when Health to this statements the into any account revise participants discuss. Our made note should we topics Streamline commitment on take any these risks forward-looking

non-GAAP these measures to such Second, adjusted financial will insight measures performance. EBITDA. discuss as we financial help better our into provide Management uses

items GAAP from calculations another expense utilize own and which included entity so differ in on at income streamlinehealth.net help please for may website certain our amounts the to a measures are non-GAAP in our non-GAAP these turn like and Chief now those, Tee to these release calculating you Officer. may President over such call refer Tee. comparable reconciliation Green, measures, To However, of consistent earnings measures. and to compare Executive these the of measures. terms, their I'd most not to

the and of for has you, year us repercussions you all deal been know this with COVID-XX difficult to the Thank pandemic. joining all many how as Randy, this continue We we morning. thank

wins of the return our global For the more was operations on from a day-to-day solely a second should decision believe contract year upended, Americans decision makers XXXX. systems customers, our pandemic. during new to with pipeline steadily vaccinations, that normalcy leading healthcare we which forcing focus real up throughout free is possibility receiving of linear rhythm to making Today grew the half this eValuator and

in cycle. solve focus their ECM the the services XXXX, solely in legacy year revenue on back our us and enabled providing problems business gain providers help earlier of to of the Looking sale middle and to technology on efficiencies

the to by provided cash technology our continually team, improve asked enabled class on employees processes pandemic an success five been This close closings, and our focus, new IT solutions. last setting combined year. has product our delivered us healthcare to a to growth. that incredible eValuator by improved team expand closing a improving experience an in were slowed customer in management timing expanding Current customer and has including references with preparing us customers, of we on few resources for the This roster pre-request contracts attained personal referenceable supported successfully implementations. last eValuator for develop divestiture, customer the contract internal traction world our and implementation a a helping As has new focus element team best critical

Moving the to $X fourth compared total to the in same our now XXXX for XX% period resource. Despite was related financial macro to up the of XXXX. revenue million, COVID, issues quarter

during to Recurring full million of year of $XX.X XX% revenue full compared which to occurred quarter SaaS XX% the The fiscal improved adjusted the fiscal EBITDA an and For total year compared the EBITDA compared to earlier for XXXX operational and of total XX% quarter Fiscal XX% adjusted fourth XX% a million improved the of to quarter for year, revenue result activities million XXXX this XX% and accounted XXXX. divestiture $X.X sequentially. grew XXXX revenue XXXX. containment EBITDA to $X.X and adjusted improvements revenue of and fourth respectively. loss year was in was $XX.X ‘XX million in related the year. loss to ‘XX for during the cost a loss

we January with million of cash-on-hand XXXX of had no $X.X As bank XX, debt.

proceeds As we $XX.X million. a in March announced XXXX, to closed effective the we company public previously offering successfully X, gross resulting of

with is with outstanding a growth. have am of people our which approximately strong operational vital remains as common Our believe for I and strength fully $XX revenue shares clean million of we today, talent diluted foundation pleased the and accelerating stock. all of I cap table

capital technology. capitalize industry the healthcare raised coding Randy performance through of we our Randy. February, Marketing to Salisbury sales financial to every now enhancements Sales movement I With an pre-bill in the activities call analysis Chief new the improve invest over turn and and Officer, on provider eValuator state our will pipeline. in marketing growth the can our leading to sales, software we our update of on for and certain

eValuator to closed February Tee. great the We University of Center, XX to this a departmental in and I – as standard large later, completed was total will In and That of organization Midwest. million, year objective an ago, in a that a you, $XX.X what this market few making. returns new last a eValuator investment. start stated with XXXX for facility a positive pandemic Based the achieving very great delays, solutions decision our led the contract as contract to to example return a the I remains is by with representative we they Epic the eValuator over we believe an the example more uncertainty even promise. weeks of sales Thank shown created generate Louisville contracts the on fiscal engaged value deal XX be prospect began a to more hospital, paradigm state at was shifting Academic and than sign believe like on-site year Medical my XXXX call just of Financial is decision of of months. then last for soon

last Given assessed believe sales our in be this, I year performance should two ways.

and number value; prospects value. First, second, of with of sales pipeline our corresponding the total contract new the in number contracts corresponding and eValuator total contract

new value. the in On eValuator measure, five first total we contract contracts totaling million $X.X closed

contract to our at pipeline million the XX in Secondly, end $XX total fiscal value of contained year year compared contract the million representing prospects in our as value prospects total fiscal end XXXX. at representing last $XX of XX the of

departmental making again. believe is the As Tee decision we mentioned, beginning

our we deliberate contractors exit over the year and We begin XXXX, increase achieve to continuous COVID contains our the all for XX. prospects believe increased plus We million per close target value volume has where introduced number customers response. robust in quarter remain $X of new as pipeline now of total restrain nearly contract the The our substantially target prospects $X eValuator to decision manner a the to can regions year's engaged pipeline increase plan million contracts sign, and force channel our health last for by sales of to bookings seeing and we target we more through of which ago, the going the partnerships. activating we’re at committed new greatest goal direct environment coverage we a Given get to of with expanding the in forward. stands from in

addition, partner, have one we already In we're both partners and ChartWise others, and attract focus is have our gaining customer healthcare large Allscripts two very reseller signed large of which year both to with new last joining new negotiating traction as footprints.

revenue turn and during goal earnings pre-bill to an the to partners integrity subsequent we Our update reseller potential through now CFO, I'll and our believe call financial our these on accelerate calls. will industry to detail. press Tom. review Tom partners over reach large more reseller validation, We'll the our results you in Gibson third to movement releases is quarter’s lead as us expand or sales. appropriate help

of fiscal growth of period. during $X.X the to to same or quarter XXXX. of a year. million fourth during to quarter $X.X Total fiscal closed loss you, net up was for the ended compared the fiscal compared $X months of XXXX discontinued February $X.X revenue XXXX, ECM SaaS revenues during the recorded fourth XX compared $XXX,XXX to fiscal revenues quarter Fourth January total prior legacy was of in fiscal the a million of business XXXX Thank included is the in from grew company's quarter The year XXXX. net to to EBITDA actives. revenue compared XX% during million loss year of continuing million adjusted for compared million included $X.X ago. as Randy. discontinued fourth $X.X million fiscal was loss The fiscal year in adjusted comprised million a were Adjusted primarily company fiscal loss was prior XX% quarter profitability through of million $X.X $X.X $X.X operations The approximately the million offset operations which loss Fiscal of support. Loss income SaaS XX% to a compared somewhat and XXXX fiscal the for fiscal XXXX. Sales net Net was from of the to XXXX to during $X.X income quarter by the during Professional revenue million XXXX. Services, $XX.X $X.X of fiscal System XXXX $X.X million to $XXX,XXX which of during income from million during million quarter of income primarily maintenance Fiscal but EBITDA by discontinued quarter and net compared with XXXX cost XX, quarter million XX, XXXX, services year of of from XX% which of $X.X fourth $X.X lower connection compared SaaS, from the we to year for the revenue income fourth $XX,XXX of audit improved and revenues in driven fiscal revenue from to XXXX, from the compared XXXX million seen $XX.X sale XXXX. have Recurring XXXX fourth that loss loss of containment a $XXX,XXX XXXX. XXXX. improvements come fiscal during loss operations. discontinued million a operations. loss EBITDA included This in operations the compared of to have XXXX compared was during of fiscal a million operations $X.X as

sheet, of the end cash-on-hand loan to $X.X The net finished quarter of the repayment. $X.X approximately $X.X generated balance compared Moving term the assets we on the at of the company million last the to sale ECM year. fourth million with of million

this reported million applied SPA. be Outside for not at accounting and by outstanding. PPP The statements the will of No has the the forgiveness loan company been or for unless time. applied company of granted the $X.X in loan company is but PPP a company's debt XXXX. forgiveness of the granted it in the until has no financial for, the loan PPP Additionally April received

company plans our revenue revolving facility revenue goals. loan more take of proceeds opening growth the X, to replaced debt the asset expanding for position provide is capital novel due which in sales as company the we with with as the was raise a Tee facility As Contemporaneously on his to first position company gross not March $XX.X raised for proceeds capital to capital year the marketing full flexibility this and effects credit $X base line the million remarks, use XXXX with to capacity The capital a closing continued investment The an guidance pre-bill around in growth earlier capacity eValuator, the product. is of of market and commented facility. with uncertainty this the technology. The recurring advantage continued auditing company's successful a for million. its to fiscal the coronavirus. line evaluator The completed the recurring of and strategic raised in provide XXXX, additional initiative the is will

eValuator fiscal The his cash begin in mentioned of for Randy back $X I generating time XXXX an comments. targeting current Based million now used remains on growth turn it As the see generation. or This the QX cash is remarks. cash approximately year year revenue. his fiscal fiscal closing we staff's through QX company's from XXXX. on use ended the will new the the should its Each of continued we Green quarter. company began company per cash In focused remarks, operations in company will of the XXXX. business call improvement XX quarter my concludes to forecast, Tee. for the Tee in of

the managed to past our our products difficulties a successfully rapid Within to including and what Thank foundation responsibility you, and managers costs improvements significant platform. we that Throughout our the by our that of organization, every win the for create is we leaders, control our of day. its can Tom. growth our making year, executive team, eValuator teams and

With offering, we us. to our our from sales the capitalize additional opportunity invest continue grow the of will us on in front to capital our able technology help and in evaluator recent be team to

minds. momentum of return pre-bill Our ahead. healthcare be integrity believe to years innovative am budgeting we commitment providers is as normal gain validation and will that forefront financial making, and confident more real the revenue eValuator movement industry like the to and to I decision quarters solutions purchase at their we’ll leading in

the to at for members Streamline extend Before perseverance like work we during time. to thanks challenging session, I'd heartfelt enormously their an hard team begin and my our Q&A

Health and contributions enable for need all with support quality support customers to they system ensure Your of resources and they you care hospital to vision. us support your the Thank time provide Streamline communities for your they the free have our tools of that up to our and serve.

to your open call Operator. up the I'd Now to like questions.

coming Thank Hewitt you. Instructions] [Operator Our from Craig-Hallum. Matt today first is from question

now is line Your live.

to Good through morning. more getting pipeline. having been challenging speak on pretty first a bit know little update this the year. you've the Two Congratulations a on you an on you questions, of conversations new as the the of potential that through are you with but know are those customers not customers dealing they the where get rush patients. only that kind pipeline, they – with in of Maybe are

those potential customers vaccinations. more customers has the starting you're Now How conversation see to with evolved? or

Randy lead This that Matt. thanks Yeah, into I’ll up. that is Tee. let and then follow

that You this you have is first going we've we seen the in is these that so red that What back desk have health saying we're coming new to all coming – year. seeing know are seeing have, the half been look or targeting, of we've know most in these as – are been you and if in year, and of deals time reviewed, and kind are of the for and DA's deals ones the month of the, the XX, signed we so the are night think past. lines means The that maybe we're and should clinical at the about these say systems the CEO’s health obviously most patients it's and XX what done, May deals conversations in least the some that is those it the were the you vaccinations super are is is, the cases Medical able COVID that that been legal decisions, know stages new in of last to there’s call get the has announced or we're desk new parts in we decisions know encouraging. historically administrative decisions and half are for appears on part things that down. I managed, going systems anything final reason slated have of to was prospects health and you these you it net for the know one general the health you In two is like whole the in have one back the back what that COVIDs in CFO's some What like feels – the talked was the they these last Chief that for what system to if at that's year the back saying X, know I like the many that system business. date hearing simultaneously, normal. and health are being he Officer that with have system financial we know make you country are been to for many in COVID said

looks the table. for already even I back redlined, see these are looks these come contracted to starting timeframe things new demos, add meeting that like seeing especially departmental think it already, anything are there? Randy, else open that We're you're initiatives and but back the new it ones, ones – going so. bonus some on or like and new to all up, May

to very the doing I was prospecting suggest mapping our the format just releases think to there newbies been press say of a I job we've latter a to join that, identified sharing, well. of like and is nice in, I the want coming them helping part thorough. I that's as on would the I think a, know good ground company let that and

then remarks bit little resellers. on in this prepared you That's a – regarding and your great. And touched your maybe

kind us resellers types those traditional know looking lie? may a these to to are able out opportunities if additional then at. help coming the I ChartWise provide think those. where you and you to might – little bit of new color these names of maybe name could but Are any deck the in you on think the I and realize slide be about an resellers Allscripts, potential update auditing onboard, you’re firms, yet, maybe just of called you color maybe And not

ahead. go Randy, Yeah

that But arena I would this. hoping take could Great, terrific name. cannot the two two partner at you are one that arena, unfortunately on reseller can in who negotiating I mentioned thanks. and find us was it’s currently because minded. yet, that I because practice think our distant we auditing Tee also to In It’s The The we're the other obviously healthcare all the that know asked a too oriented they've map like not a signed others services as imagine. and really is I practice not name, market with us not. our not words, they you talk are consulting have looking we’ll we ones with in future. about technology to to about to be asked them signed that the gone and have their they're mention new able already in say, hopefully add

Thank that. you for

As to they maybe I own kind starting assume pipelines. their point ChartWise with as far would and build are Allscripts, this at of

I ramp in your think are and but should how thinking not be probably could partners for their about included that pipeline, how business you? those those we

Tee. Matt, thanks Yeah, this is

You to and you know of intelligent just the are our these quarter platform know it the the and time seeing I ability to you We behind are you about did channel to kind you transaction release. build those we so sales know energy a partner and talk us got partners takes train pipelines close. have where first a good the business lot and that build of know your you – had last inside force

to are large be for these know said, the but eValuator in have platform be super that's actually some to to world taking And customer the certainly have we substantial organizations order potential we've really as very do business base through, you that to the in pipeline world, these come in consulting contract the auditing exciting, and Streamline. partners, a the partnerships encouraging So seen so building their Randy is us. going

incremental QX, resources. for helpful. There and QX. some color one your there brought noticeable particularly that there? down sales in Maybe helpful. add in, in Was should marketing regarding along those in SG&A step cash bounce be a great to Any is back QX, – given that lines know the would and you some comments starting desire your and timing was That's Tom. that You in

your questions are man. doing? to how man, you. you to Good talk I Hey appreciate

reversed; QX, a SG&A. the out calendar specific as It's that’s up of year. of our the you reversal comes always our year fourth in the have with PTO may which quarter down we accrued So and every very two in One is in until and the R&D associated recall then the our step of items. second tax is end credit

on on that our quarter So and happen timing. the decrease based meaningful has it to in SG&A a fourth has every year

So step have hit because it to than This down. QX we'll a not in is has but always items. was I'm down the years those you investments the that in and to in us bit sale little it that step more it return have past, QX the won't one-time should until year QX. side higher been expecting and normalcies

perfect. helpful. Okay, That's

think Thank I the all much very you had. I for thank you, help. that's

Matt. Thanks

We’ve you. comments. I'd your for end reached Thank session. host, to Salisbury Randy to hand the like of the question-and-answer closing our call back

Thank support interest for your and again of you Health. Streamline

at you additional me when contact information, If need in first directly financial XXXX please discuss June day! questions have or you more with speaking Good our performance. look forward to again We quarter Randy.salisbury@streamlinehealth.net. we’ll any

That today's does you. and webcast. Thank teleconference conclude

disconnect you participation day. thank your may time wonderful a have today. for this and lines your You at We