Veradigm (MDRX) 8 May 202020 Q1 Earnings call transcript

Greetings, and welcome to the Allscripts First Quarter 2020 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Stephen Shulstein, Vice President of Investor Relations for Allscripts. Thank you.

begin. may You

much, Allscripts very afternoon welcome and Thank quarter and XXXX the first earnings to you good conference call.

are our Financial Our and today Paul Chief Allscripts' speakers Executive Rick Poulton, President Officer. Chief and Black, Officer;

We'll to to are presentation of revise the new the statements that risk obligation and risks current on cause a vary expectations more be forward-looking actual These statements events. materially. refer results. of no a We of Q&A could earnings factors for statements and these number in light affect number of our SEC making information Please the call. forward-looking undertake may detailed during of descriptions the based filings future or that part release results to and our our and involve uncertainties

Relations also in workbook Please non-GAAP are on the financial the the non-GAAP supplemental and Investor and site. reference well available that statements as as GAAP Web our both release earnings tables our

And with Black hand over that, call to begin. to I'm going to Paul the

This team Thanks, pandemic. every all thanks clients. leaning teams possible. has to to staying focused a with been playbook our call, health stand-up has who the challenged scale. on no Allscripts are industry dedication experiencing are to associates you crisis. unprecedented front on how to lines thanking best this are day solutions the clients who and during our in XXX% our pleased are in on care by patient lines joining this with global pandemic what of proud who of front support through of and for we to on this for clients leadership I'm these begin our manage and I'm able help and clients hope to real-time I'd safe and There's times. their the our the are like everyone to Stephen, pandemic, providing our the

other operations. their cover and topics. patient helping like provide our solutions to optimal are also in mission-critical manage care, how business EHR to while I'd upheaval demonstrated We've clients the helping two for

me how First, manage internally by to through in are facilities. All of and through share examples our we full pandemic. already manage doing let through with are used work I'd available solutions to have walk company capabilities like this some clients associates being been this to you to all environment, remotely what equipped

also as to We processes have ensure globe, has flexibility created the are adapt support this around services enabling with needed crisis. Allscripts to fully evolving and resources pivot to to teams staff the staffed. great us

clients contact While are travel, our visiting clients. teams not we are except existing our daily for essential with in

at helping loop ED, teams triage Our services the are establish analytics deficient enhancing to or the client use the at clients immediately bedside and managed clinic. close support, pop-up COVID-XX-related configurations, support and locations virtual build

highest scores We're also in organizations X to a to conducted immediate received U.S. from among suppliers health new services proud HCIT of pandemic. Reaction deal feedback the recently survey HCIT Allscripts help this the surveyed. very largest get data and of with provider our care companies functionality the delivering clients.

our to new and clients the opportunities new by received this enabling capability will and activities. medium continue focused use been has pursuit more remained post using to become clients This efficient Our well client technology us pursuing capabilities. demo prospective this utilize on to virtual videoconferencing crisis, in

had clients week's than Feedback nearly in registrants positive. to we a a how HIMSS our were overwhelmingly total when we platform with three-day and total was of notice. complete XXX sessions quickly able was event, less activities rapidly a to of pivot from XX attendance. offered We a virtual moved throughout example on-site One prospects canceled, and

solutions. rapidly our agnostic I'll and platform. Now, our implemented have innovative new Telehealth patient of done FollowMyHealth which we offering, help clients EHR what begin me turn enable with to engagement to as with let was our part

be of in we while cancellations perpetuate gives matter at those Allscripts XX,XXX help the clients client clients solution of our patient Most as implementation a scale we their strategy well solutions. contrasts architecture bunch team, who clients Telehealth. decision to of this our to strategy This importantly, running its Telehealth no pandemic data. a That over retain implement of able clients and through converting inoperable architected record. as patients has care workbook acquire queue further up bunch consumer is who Telehealth, selected limit days. to this EHR a brand-new Our appointments total opportunity our FollowMyHealth. demand have apps to to record organizations April. care agnostic March, to in with platform their a that telemedicine it. the delivering nearly Telehealth care to X,XXX have and other why now both plan the that efficiently specialized in them can core created for and patients visits FollowMyHealth, from capabilities We've that providers, been isolated Since the favorably step-by-step swiftly existing to This is a consumers universal functionality. By silos no-shows to allow prior offering represented essentially need a expedited for to at to and includes cool connected

plan note their summarize comorbidities York the outpatient in landscape. Over solution support in providers and deploy hospitalized XXX matter have and with current and and greater with acute area. rapidly the New Using now patients COVID-XX data and to create the to of distinction this analytics, the tools to used of to Together, through outcomes architecture to In these commitment health coronavirus. characteristics, is Northwell insights was Sunrise been EHR help X,XXX documentation data Northwell EHR has who our a the clinics, over open, their changing to people immediate outbreaks. they long-term the important clinical-decision of has important Another able ambulatory physicians scientists tools being embedded data fear access to in create forecast leveraged Allscripts' COVID-XX to future and realtime new clients modeling care and for quickly TouchWorks in and role days. able have data, played were Allscripts predictive having strategy an presenting

consortium Another example shortages to a data participating Veradigm is the help evaluation of to in and able business. a research available to patient to research an drug is the database extract as researchers, bono, advance COVID-XX is FDA pro on is by Veradigm data our well. database. that highly industry-leading a of collaborator companies COVID-XX This brought launch are prudential patient-level and pandemic. intended enabling made by recently the public announced the We health sets leading set insights HIPAA-compliance, the founding de-identified relevant combat to Sentinel be health were program care Veradigm leverage to to limited of around who policy our them monitor COVID. repository

consortium, the through is In of being provide de-identified collaborator patients XXX EHR XX a live, a nearly the week As more recent applied Veradigm the to than of encounter. data Web for U.S. first COVID committed access for site. have with million researchers

sent post-acute long-term nursing, patient to on the throughout share of to are educational transitions United patients the efficient COVID-XX XX care annually trends and learnings, and to CarePort for hospice, transitions skilled States COVID-XX Hospitals practices Care Hub safe and system. for acute launched all nationally. acute for nearly post-acute transitions the an health as resource of transitions latest current best XX% across million hospitals We home to enable efficient safe, lines CarePort providers. used referrals through being accounting health, solutions acute between the and front Our rehab,

will a these acute the From instrumental And CarePort helping day-to-day the period. view recovery workflow their from COVID issue, hospitalized patients recover? to very face unique standpoint, patients standpoint, a during have and hospitals data pressing COVID happens is hospitalization what where we to into next their a

EHRs. from at was to realtime and across recovery patients built hospital homes. This then to platform hospital such to the stay enter course COVID through see Our places the patients from as into track the allows they their us coming have and the both data moment ED nursing post-acute continuum

that To the one trajectory care largest XX,XXX of Early by patients, the patients they continuum setting, killing CarePort trends rather but the tracked and just As the COVID result, in and date, X that not are care the data older linked CarePort are can virus CarePort care of localized in which after United a hospitalized recognize span fact. represents sets. analyzed than show has to is data occurring likely XX gathered XX by that the than X middle-age as X in States. XX

years, XX of Semantic are has world-class seamless connecting the most this for dbMotion interoperability, analytics An ecosystems worldwide. and diverse some hallmarks platform. point-of-care workflows clinical and delivering complex been interoperability normalization, robust interoperability of

no engagement. The operations, done faxing, These able research data mean wave for their EHR as it in measurable pandemic. technical is once Health X.X the a was subsides. vendors, the powerful COVID-XX strides of solution, This connected infrastructure part spread, dbMotion data million without COVID-XX. the dbMotion solutions their be matter within Ministry the will example our if Health make capabilities the made interoperability and health. one at and need stretches battle. initiative an linking quarrel Health of clients the supporting leveraged community every care has happen, of as setting Israel's any system, diseases of like Now Allscripts benefits Ministry Ministry or forefront has By it dbMotion Israel to connections entire of was notifications approach accurate has the to country's health to five days most access, of community robust from early bidirectionally is population care any connected extracts. dbMotion. predictions reemergence about the X-part of via been deployed connected against current provider of healthcare what should epidemiological the additional Health of or is of interfacing

distinction creating compared the responses for with has individual users reports of our by for providing communities by These validated examples key the and ranked running objective performance electronic as external innovation, in hospitals demonstrates especially meaningful It Based open beds. from given and an our which importance strategy top-rated best-of-breed week, also our satisfaction, point than EHR care. client including demonstrate survey reliability top Book, earned satisfaction mission-critical research We has is the accountability, health believe X,XXX through more client recently of a indicators actionable Black new recognized and interoperability, This importance of XX insights data of records, success on we health the of parties. EHR Black categories and us XXX Allscripts top in one technology. connected the competitors, number the This architecture. honors at of Book distinguishes been between extensive Xx from of XXX vendor patient this peers. were methodology. of firm's in Allscripts and ethics,

received physician also we the practices from XX of the number morning, for XX one and This size ranking to physician caregivers. practices

received value also XXX also We marketplace. for are great ambulatory clients in our records above. to our number and medical the two Clearly, ranking electronic providing

to innovative solutions. assisting the of ahead uncertain we and Looking our service time be excellent while and rest on intensely providing this clients during focused XXXX will beyond,

new Our ability company during inspirational does to and has the our that step-up crisis health this help work every been with our solutions to mission-critical clients highlights day.

to on the to over provide our around our financial balance update and margin With an call that, initiatives. let improvement the me thoughts performance, of turn XXXX review Rick

structure and time. to To all, model unprecedented margin financial team areas: review finally, expect Allscripts that we I their our second, and performance; most business unwavering color for Okay. business and presentation segment want comments I'm improvement program provide fortitude the our going and Paul's a of to of to echo our our commitment quarter of brief beyond; three expect members forward. like some I'd thanking to adaptability, a our First, Thanks, during impact second and how what quarter to today Paul. around their main our start, first this going around new my clients and to comments review

questions business many know of We on our our model. have that impacts how the COVID-XX about you clients impact of

some provide their help understanding. let to insights try So me to

in streams recurring We small of revenue, revenue public pharma acute, large universe, acute, most one small have IT we have physician, health from lab, the with care post-acute, and the payer, revenue substantial physician, XX% and diversified sector large clients.

recurring model, in business impact but not provide So The patient and think and to client impact factors way immune on the supplemental that volumes through priorities. about pandemic COVID the the best for a schedules. resilient revenue us we of we're you to very is these course, of data our how nonrecurring of framework have we

our And services, are service have With cycle our areas clients lines lab recurring regards the that our of clearing by management volumes represent any at sales directly patient business approximately to some are revenue, Collectively, transactional mix payment down. our connectivity, our revenue by and around given driven chart in in our ambulatory nonrecurring of quarter we burn and most recurring any impacted revenue house a backlog course, pulls. well pre-authorizations revenue is quarter. XX% of given as e-prescribing, these in-period as of

the cushion highly sales Over in activity is or against revenue dependent longer weakness helps stability on term, term, sales in sales in the activity, nonrecurring but backlog our in-quarter mix. substantial near any new

on for logos sales as a reflecting the for that the pleased for the Paul of believe negatively in provided range nonrecurring revenue highlighted, revenue. our $X and some decisions range. It lower Telehealth in quarter of results with our driving our purchase revenues growth X the independent our we end new the our revenue million, it So, we delayed of lower client balanced saw were impact, quarter million as of and a segment. very well company. integrated that as as bookings have Sunrise was to by COVID this new impact been X the physician in we had exceed impacted lower hospitals right practices middle first The backdrop, guidance Were we the $XXX surge included we first would guidance -- across solution. activity million for estimate broad-based pandemic volumes to approximately And the Overall $XX not adopting solution of earnings quarter, call. our last high see of

our Equally we Cancer in million Hospital significant over the Pittsburgh; in client Kettering Memorial several extensions signed that Sloan Center in representing and quarter, during St. in-patient had importantly, Clair including altogether, renewed base. $XXX business

existing gross of our were billion of at We end extensions from length reported $X.X that cost on at at margins. quarter. ago, disappointed which margin our do margin. of last We the performance attrition and to COVID-driven reminder, the client in structure do rightsize P&L, our down a highlighted our backlog, all not add a the they was revenue I slow discussed moment to count highly for shortfall, EBITDA dilutive for levels bookings, the As to business in stood were at quarter margin our to we first the but call,

significant and address significantly more April, and operating on outcome As problems in increase first XX% in early just the late and excluding I'll cost discuss for a future this we steps in length decisive March flow, quarter, to in improve a we settlement moment, to which generated took these margin but payment finally, year-over-year. DOJ, our quarters, the cash $XX million was in expect

intensely environment. $XXX strong a of this the on sheet, had senior $XXX end with at are maintaining along the business secured our balance new liquidity focused capacity we position of the million quarter, on And million under facility. We remaining credit in cash first

last earnings and shift our on that I plan outlined update margin want you call. to status now the improvement So, of I the on

to upon working a firm, have alignment call, the decision-making intent focused and and review assist Shortly experienced and to streamlined for our on a to seven our of resource an capture us effort, AlixPartners, after operational last hired to opportunities. efficiencies, comprehensive last we As margin with reminder, their improvement this in our advisers improve we weeks team I begin the performance. been identify indicated

structure, end work the These disciplines of of on $XX functional week focused implemented the annualized our in April, last permanent March reductions through we're the representing company, have reductions and to all across From redundancies. value. but cost low-value of all we million

the delivery for or of We million restructuring a volumes $X of margins clients that matching initiative. And $XX these actions for actions. fluctuate. a real-time additional and these million an much thus, the this QX Equally to month, charge our value in the see should are approximately patient as to around service recorded actually volumes, in job charge of QX as have our variability a when of more a over and overall related expect we we in cost to company not expect influenced on will past So result we basis. to steps have better lines responsiveness improve do as and these last by taken volumes the most that importantly

the expect match confidence a our to of plus taken, revenue, given already to greater adjusted in EBITDA So significantly combination we improve costs anticipated actions ability cost-reduction with margins levels. QX from

unknowns realize clients still the basis are in return pandemic pace side the quarter, And these soon the our same. both confidence to will cost but of less margins compared basis doubt do by we adjusted XXX full there and of on points behavior more to of Notwithstanding duration the quarter. actions increase as the the local points state than the myriad while third We patients normal we more to than months are recovery. quarter, so still the first X XXX rules equation, a second ability in psyche impact to have than the EBITDA of would about from the anticipate second quarter of of no federal, possible, and benefit to impact the in and many the the by will as our and anxious that of cost

So a withdraw the of thought for year. the as patient we rest forecast to result, or XXXX And it reasonably year our client behavior full we was financial cannot appropriate guidance.

is through start. have only achieved of the a end start good it's improvement margin but What a April to the we program,

now work portfolio are operational addition the with identification I outlined our the if candidates on done strategy, and remotely, slightly line the initiatives, us core to also is sale. our if should to long-term any, earnings be to In reviewing to I that to solutions to development the extended weeks improvement not, for be and to of we has XX the from planned call. last stages extensive closer our And our to expect to what margin requirements complete end June. Due time review determine XX

to As plan. details promised, is more an on intent timing schedule provide and from expected Investor the is still Day to that our complete, work after impact

We quarterly will cycle. schedule as this reporting the taking Day appropriate, Investor into account

reporting segment to XX-Q enhance further it's morning. segment we my and will agnostic our first run This in to solutions with data segment we and aligns we this of visibility when because coordination want growth the called have I agnostic, are company different they made profiles, by some you our comments new the and In the from well. we reporting differentiated as segment our filed expected structure profiles, We've this quarter realigned our tomorrow our CarePort, competitors. find EHR a the combined and discussing into have relative aggregate, filing businesses, medicine in financial segment different Now taken engagement conclude changes core reflects XXXX, and segment, clinical step not analytics segment and between our cycle very actually EHR have very care core today, closely care to data structure bases, very solutions, and which more solutions revenue different not Veradigm, our only manage and new the to how precision our in customer analytics also only traditional coordination. very that but

both of intent able the quarter, continue the segments. a on at the GAAP operating will on future of of between profitability this both enhance segments level. we quarters as costs non-GAAP be such well large our to segment provided basis unallocated a non-GAAP to you that between GAAP segment allocate to fairly costs and of a have operating segments company information the reconciliations a amounts breakdown the provide see to basis GAAP-reporting to the percentage as only and It's For still to significant this in

up call So, to you for may with that, open I'd like any questions have. the

comes Thank the Instructions] you. line with Cherney America [Operator Lynch. from Our Merrill Bank Michael of first question of

get have the morning want I in you're Thank some data Veradigm, a how about lot there think extra think in for of the some as services color of of that to relative I COVID-specific cost we and in bit revenue these of we you these around ramp a dive providing, good Hi, you enrollment about up providing. it's you're Paul, to with will of and COVID to that, good but so that referenced weird the to for well afternoon, terms research sorry. do an doing you're going and of burden -- ready the terms about way any the be ancillary you work the you're in oh, how the doing some think to response. incremental utilizing as little that model you market? work far. know should expenses

of financially what long the the period something we around I we'll necessarily of circles recurring on And we're consumers. -- in going paid because over exists get that, to think are we're it's move on revenue, concentric that quarter, enjoy record helps the also telemedicine the and time for probably doing a component. for the revenue electronic we -- side, while It it's doesn't that. benefit certainly media medical of a capability the to value build that

to that to a for solution. in that the on at clients have that, have that that'd extent So the and that up for with may renew solution reason future, be point continue them come another some our renewal is

well. So there's as benefit a there hidden

very a capabilities the really are out down, then and mission-critical form support sure different and need being better these that medical in, process. people electronic decision further care that completely the just been larger the of hunker record. in take to that I of COVID-positive. getting for TouchWorks Sunrise making solutions out building back to or have identified That's care on analytics around that Pro in-patient the data data as clinical putting think there that installed, accentuates are And have they they're people that extent or strong the

when surgery the from surgeries make scheduling people staffing And about on to just that all patients ask that a capabilities capability have, important new are think started solution are from and be the the going downstream the have scheduling over we for making that of the pay recovery course a restart Hospital standpoint, there supply that is sure that and capabilities will about the or to acuity around the level IQ also centers, also a that and we X talk procedures, I we you very scheduling the big about we that people very in -- last be of have. engine for elective think standpoint. are basically X that thrilled as days, quite a sure, that these surgeries to piece

We through about for what Michael, some, for have to solutions happened think given happened free. this to year. modeling as free budgets rest around XXXX, how as that modeling at what's them prepare to we as We have they're there capabilities COVID, the going of put the out they're some then has announced actually, EPSi, for look to well

Yes.

to of about Paul very building out cost and minimal. a not mentioned So The a that's impact, solutions for on good with certainly direct. I certainly revenue it's other of some opportunities I Telehealth certain Mike, that, insights are coming places, think brand recurring incremental in but And is -- I and revenue are think it's future no direct solution. talked on there. There of and add eyebrows just incremental, these we is the raising that lot the mean, the profitable it's but cost areas is -- there's

charges; obviously positive you cash And just the X question, flow. had you then, flow, one referenced free the strength follow-up Rick, operating one-time more of cash

removal flow how the you've of about on assume the should had, structural your As to the set through you that pieces side are cost-cutting should to the in be considered cash? initiatives, of well, over there think flow cash free a any convert that as of or terms first subsequent moving translation that have we

Yes.

caveats, two put their flow. or annual first Billings, quarter cash One I'd Mike, on that. there billings basis, and to be happen tend seasonality fourth those to on is think quarter. I is an some

quarters, cash and tend three, those be to So the two flow less so. strongest

of a that unknown So go potentially given think And and you have that. things general pattern bit now business about I working little that right then stretched an there's don't getting the expect away. environment secondly, I around to like pattern. capital

quantify as X just obviously it's everybody, So question we'll impact that and it hard tight that. as is, is say the possible. as but but as with try -- best answer watch possible, a to for near-term to We're yes. to We'll I your those that's manage you caveats, think to that exactly headwind what trying

Excellent. Thanks, Thanks, Paul. Rick.

you. Thank

Thank you.

question proceed comes from with of question. Kevin Please Caliendo the UBS. Our line next with your

Good Hi. taking for afternoon. Thanks my call.

think normalizes? the handle demand, sort if the and so, activity So, of bit? sales project pickup a expected have to what's when the in moving we a a catch-up in bookings and demands could the in are Or just about is sort you right QH, everything backdrop And your if of implementation if to there from capacity pickup, this ramp? standpoint that pickup

extend you of out -- when it's big going kind new of demand just So do or expect in bolus linear are you asking time, to asking -- it you're and is, stay sounds like a

exactly. Yes, exactly. Yes,

a the almost difficult to people I all, shouldn't get a to lot -- have when have a, lot of table, I but but purely this, what be none back think will And onset say to that. go was of So can't a ready to of that's anything I nice we of speculative. on the I of shutdown, need those going when crisis." purely deal said, COVID. them mean, dialogue little had bit say. do mean, speculate is very I say them on felt the "Hey, pipeline focus we some a we off I time exactly

people -- will about robust are to continue on Probably, have -- they the how are certain, have doubt probably. we deferring QX. about will they? see margin, talk sales for that, We've in We no decision Do making? you we but when

no become is a So, but a sure in date, bolus just than -- does ball about we our not could, really -- and crystal QX? I'll It better that We're it could, that. yours. turn around pick

far the not I deal we burning we're structure, resources cost furniture. about to as the yes, As our but question no with it, are refining it, mean, we're

for some next say, projects -- yes, a pipeline free of very are So up our sales I over wrapping of install in we be we will naturally And teams. distribution should some that resources. up our projects have the a -- actually lot services that robust will have big team, that teams ramping and couple knowledge and distribution big quarters,

we well feel So I pretty positioned. think

Is Do Great. don't quick you a the know but any patient Telehealth now, partner outside follow-up? how services? given portal that what's demand actually, model? your swan a Can sort be it quick huge EMR? differently Telehealth, a on or have there that your the a Telehealth do ask for preferred particular this partner? created I I of business event -- view MDRX is revenue used as Can black -- you you

Yes. think stay. Telehealth we I mean here to is

we so the It which In solution. known this that, it's client. significantly differs sacred, better well providers. relationship. that And -- solutions the again, to happy sacred, it many solutions from other patient-doctor should it's known maybe think Telehealth -- integrated put fully health And out are some is for be bolt-on keeps for integrated we what care were

couch and up to call happens whoever get a out get be that day, you hanging just don't You on doctor. your

model interest. it think with clients strength It's keeps we our much model. a very -- It patients, revenue valuable. is our per-provider-per-month it's with and So type the their aligns, clients' therefore, with

well. far, so working be to that And seems

up least not our indicated, that's mean, and it's stay and gone from strong and us, we grow we have here. going to today. think So expectation we think volume-dependent at they're as for volumes I lot, a

much, Great. Thanks guys. so

Welcome.

Thanks, Kevin.

Thank you.

of question. Please comes with your Goldman Sachs. the Jones with proceed Robert question line next Our from

wondering maybe came low did the really timing million know how not know think little as you as guidance, maybe I I QX. that, ultimately, impact it quarters? acknowledging providing about forward and to $X revenue; the proxy converting million a impact should is I visibility offer for was you to of into guess, near-term the coming and through, now I about then guys in clearly, talk bit know backlog but could as just if revenue we a that $XX right I is that, you're far decent how that

than pushing guidance, when can range in the kind came significantly was our -- see the revenue we of range, also -- a it's it X almost have -- this the saw incremental could during -- high-margin our attachment we our from impact week you we know typically of an XX last counting the have is, listen, so, you would last, Yes. that lower quarter. days kind of in right? numbers, saw the lower so was There of And to was bit weeks, saw that guess, to volumes, That's Deals quarter, to so expecting that was deals and some that or a sales to days little I why was had X that and of they the them. would the but again, that put Bob, occur that's out XX say what you were it we from I we it. representative more quarter. on expect nonrecurring and original how of software Well, the of

of ambulatory some Offsetting do services growth higher slightly our been the we So this volumes cycle quarter. impact probably us. for I from business business higher a that has is slightly revenue some have think is

that's think be lot believe were going they businesses ball, first to than it least quarter. right? that to heading there's clients and a continue it's broader clients, that's quarter. volumes on than we will And was a of volumes in clients, first be relative from number add to today -- so, that, incremental nonrecurring there, growth, crystal down but to reduced a growth here bit the the dynamic sitting a of where represents that's hard worse I that across the to by no to but I but incremental at It's certain think have kind And little don't going reason offset

a are -- So, other that some gives ones, that you but of we there picture things it.

No. helpful. you took some and on then April. Rick, No, And that's I in guess, the said March you steps cost side, just

to like you're COVID a in the given feel You position profit unfolding manage situation. better

to And help what story, revenue confident and that improvement is steps clarification, margin for environment offset? things then unfold you just of Just improvement you curious kind could kind of you of about basis very took current XXX steps from completely and that Or here? and XXX those how interrelated? of the independent is point the kind of think in independent took of talked of sound kind be levels able those do clearly fluctuation, would you

Yes.

right? the are we're but those I first message the not the took steps, cost, to program, So done that's we're They're deliver trying is overall again, mean, with those and as done. been we annualized about us. So -- -- behind -- referred to I not what million $XX of

been something not It's done. So hoping to we're do.

saying, variabilizing volume-centric better quantify done what that steps to And that feel a around I those we are addition in volume-sensitive. like can was cost easily. our we is more we've pretty -- so job areas And

a of to think or say, recurring have fluctuate some that revenue me took June. calculations, margin so might it back and some back the levels again, it -- confidence it see sure, impact unclear them those whether revenue have we gave volumes EBITDA in twist, -- the dramatic down to, for If XXX% volumes we'll things, We'll May in that see to for described, how some a I combination for framed whether QX, goes on I QX QX. have wasn't margins we so And two not. creep we can revenue volumes, up but to bearing -- make you. for change is manage XX% in ballpark subject our of in had sure, you we volume April, can didn't I

projecting that's revenue because of purposely better So are. forecasting away no stayed that now than we're kind from we into back really why don't you And at you're we -- forecasting.

down, you, the given EBITDA actions confident and we taken cost our could EBITDA about those that like boil we've expectations a revenue we variabilization good we felt the areas of reasonable think and with the these feel side other -- feel in we we can our range, all -- cost share So, I within margin.

That's Thanks, super help. Rick.

You're welcome.

you. Thank

Our next Company. question. with from the Please Rhyee line Cowen with proceed question and comes your Charles of

give Obviously, talk about of terms more the makeup in delayed around actually details of light quarter. on magnitude for the started? some in It's Can bookings? Maybe Also COVID? some Charles. maybe the of purchasing of you us this pandemic hospital strong purchases reported -- on provide bookings since context James what you're seeing

really really were emergency areas. people and starting rooms to what especially to color, pretty add the bookings, we come Rick decent, be The whether start the a were when last perspective, across of other as said, against, was people much some weeks wants Rick client were the if ran given Yes. to From the more coast, up starting couple apart. I'll it. board things -- in where especially on hit

decent able So focus we're there. a keep to

bookings that occur, year. there had still standpoint, just his our point first feel a the though the in Rick of done of four brand-new activity And would the pipeline that to of good being what in necessarily of that's timing fact lot quarter you bearing business, happen. kind the the actually hit Rick outsourcing his some comments, we we existing world. had, needed of guidance. of expanded lot a a had couple on have, built We about good in On about We of we international middle we do that. the there. didn't or a the From comments, as lot we highlighted to decent good to three of to, of said bookings, did It's that some have amount cycle a revenue our of that that them of revenue have we for but not can in while business that as We had we to that felt just logos. we delay them when transactions not take had highlighted activity new that we We have there, had will new a right ambulatory in have lot X We part deals. relationships profiles fair would the momentum. for the capabilities fruit even client margin a

happens from decisions. that So the of very a was that history This single standpoint country, and before to every never impacted make people this seen of a quarter. final of quarter we ability that wildcard have the bad in

Okay, thank you.

You bet.

Thank you.

line comes Wells the Our your Stockton question. from Please next of Fargo. question proceed with with Jamie

be concerned Thanks. constraining much be ability Is there. services that to might be would remotely? stuff the maybe I that first, far the Anything and pent-up of going there on any around the upgrades stuff guess, like client how you disruption actually to done Are and great. do most to as is your get demand? able commentary part implementations business, as

site going the not for Jamie, anywhere service our most right So part, on now. teams are

is a of some upgrades. opportunity impact respect remote to There's there's with particularly So good impact. work a on pretty little obviously but to some there from that, these, the

really about So, attention and of physical get type to more not bandwidth proximity critical that for really, is span it's in clients and activity. involved upgrades, of

juncture now, now. right clients level activity, the now relative team relaxed. staying utilization size some at of activity clients do may again, rules. here today, we of the because sitting an then of CMS but terms to right some required of later to to And still but maybe we'll still get So the if this so, team some in relaxed. may the with year, of do that are the Those see business is in had Those rules rightsizing reduction upgrade in deadlines has get the the pretty decent

finding ways effectively to So both. they're work on

heavily Is volume? of tied have about? make to numbers like of this magnitude that was about million-ish-type People XX% for reasonable think about any then or client bucket month out there then we thrown quick recover. more other maybe And how two Okay. like think the seen XX% guys sounds a you in our ones, just earlier, ballpark can $XX decline of a to And have own assumptions what asking but things is that Bob maybe just when I April. much a

lag size. when seen that nice pretty I'd area seeing, clip. a or pretty point high that's growing I the otherwise we're is -- but through, kind flow reiterate are -- a still made we I at be now, basis We're of would growth what the come net see question it again, -- not that'll for Bob a that's to more asked is, don't that we -- of business. any that a data would right that And Jamie, basis, an seeing maybe be right the on that impact but expect but On volume may through at now, there's area

you much when the I how your just across different have less I but but think, -- the have into they you is lot mind, softer same a vary account to heard respect than they're data math, think you volumes. you down, to think I impact in net do the take -- So with we've number much I you is, have that across specialties, could the mean, but potential volumes -- have

estimate. you so of can an triangulate to And kind

DOJ lastly, of just completing all expectation going that year then payment? the in some into going of far the the what's And payment Is the it happen that this this to to Is year? spill rest as QX, Okay. just XXXX? you as in made like

The deferment done all answer, are yes. that, Originally, it ask some was going circumstances get year, on. on Jamie, for we supposed to given the that did this but

not amount, that it's be there about will And into a of so, there'll big a million -- be XXXX, probably. $XX-ish will about but lag drift

you. thank Okay,

welcome. are You

you. Thank

Please Bank. from proceed of with line the George your comes question next Our question. Hill with Deutsche

any client decrease indicative off Thank as data clients for stickiness platform, churn? or guess, to to you they are that's staying I [Ph] than churn you in, client have [Cheryl] that were increase George. are taking COVID-XX And the on Could is This you question. longer for on speak the you of impact of COVID-XX? my because an planned planning in if seeing of

now large a understanding or continue their I for it's a and leading large that sorry, to find large say talk they ambulatory a like. a There's procedures hit time decision or little me, replace long would work. decisions something it's putting would that good I you of such We've may right time I'm be be, are time. practice will to get have that enterprise, or been will as better is a throughout doing they're physician us. on they their indicators pause, -- a their and we that course to, of enterprise what what cause constrained that they whether got result I'd expect a excuse they that the folks are where would position process a process financial We've would us, there's look of economics I bit until hospital taken been with tell. a we're -- there that contract they will the things, pretty who themselves lot have capital pretty this until demand March, couple just upon Depending that if it's of early -- is that under the April, we've to take we're that back paused. say incumbent, under category churn, to a -- broadly, on frame the elective say be would the track. of potentially in,

Okay, thanks.

you. Thank

Our Research. your next question comes Nephron from the question. line Please with proceed of Eric Percher with

Paul, you. we're but alleviate efforts your then the on where from to take know and Thank I start some And thoughts what to guess, pressure I of we where on are marketplace. what physician is are? to off, headed lot want your that, feels our a consolidation? practice It like

levels at The X their And there's which in who their have aggregating a consolidation stand-alone groups because show maintain largest typically shares large Eric, market practice more, that there, a that still our groups, consolidation to benefit the want our would other physician many arena. lot there they quality has been you of share data based has physician but continue we market voted been the really That has physician talked for believe us cases, clients, some if will, independent X with their to is of independence. have of Board actually, time. the consolidation. long on we In about piece, typically been

they not And I've fatigue years. centers physician going affiliated IDNs nature bit and And were continuation. then financially And X which as maybe of that also they seen a with practices our the a the there's the not or well of the with bunch rapid purchase X of to. as academic of over course thought last those medical so performing

it's is aggregation that's specialty an across a the coming, fair yet amount a scale also before I days the down, trend. I've pandemic on seen of private that do something of States, but event not United from being these firms, So depending equity slowed see that the of type, while new

the expecting $XXX And on or $XXX is that a margin Rick, are commentary, quick and All right. year-over-year? one you quarter-over-quarter, million

It's QX. relative to

to thank Relative QX, you.

Welcome.

you. Thank

question line comes of your from KeyBanc question. Our next the proceed Hooker with with Please Markets. Capital Donald

was These Last maybe your this ago P&L going care gets of There attrition. mean, question afternoon. just, happen quarter, perhaps we attrition, I from about year, to made out? called in we're client are that that Good can time you maybe explicitly of pushed think year. Great. safely were were an acute this headwind a doesn't it long that $XX decisions attrition assume million sort I out earlier the space. hit

all see you off, of that'll I clients on of that that I see into have down, edges just the that's we'll but of little -- think some because probably quarter, that strategies baked that right? longer. up, already a not numbers got are And COVID, we our lined they their thrown thought the Donald, some mean, our that, migration retain possible, coming year-over-year of but into numbers. who

call small maybe So of in should piece is shared to be message we that I it, but yes, expecting. general, last think, still you what a that

all you're just all mean, with dealing maybe then you last areas against how and risk -- with concern Sure. of I this, whom a at that one, probably you to -- Are different one lot likely are have businesses. your credit your manage that curious respect with many are of -- there counterparties And you do changed there are -- How or has of optimism? struggling. from financially perspective clients? or

the Well, start is on last government. not care providers optimism. with is lost I strain optimism My -- the mean federal I'll health the part, so on

federal to about all I'm care continues up designed the you, know lot them, And I you so are bore there's but a to of sure, those. government won't with health support line And money. programs that providers.

reason impact elective the have of that that to canceling that's notwithstanding will client -- like base. stay So things our on had that the optimistic, procedures,

trying more receivables. to be mean with as credit, beyond as It's We're to there as we're that, managing possible. trying risk? is diligent Our I vigilant all possible. possible as be

a that lot managed call that of, meaning a to services lot forms content We are had labor other we or risk accompany them, other we the there's structuring of new what services credit if contracts structurally of that trying are manage then and have. agreement, if pay we on taking less you ensure we on, levers to that time, we're that don't bills through your

have, but levers as don't -- right collaborative trying also making think the business in the clients I to recognizing we're at we're government. to possible, trying appropriate we're So we're same times we pull, our federal think, be as time, sure we're and the but to now,

Okay, thanks for that perspective.

Thanks.

you. Thank

next comes Demko Our question SVB Stephanie of with your from the Davis Please line question. proceed with Leerink.

this. on kind Hey, a my question guys, of itself taking a of I thank have more directional a the one. and for for you less quarter question

Rick, you're in CFO obviously, for a So the back at been but seat. while, you've now Allscripts

or what that up where Now priorities under quarter your you've over to the re-look top a hood, risen the full like had change almost has year? as areas you'd coming

Thanks for the question, Stephanie.

you to me today. and are what been lot X jobs. XX with be the lot I Look, think, expect important to are So a just clear, it's things of things I can on of touched days, a

to it's actively time, very So, actively, base." for be I we in should that doing, and a solution long-term whether call, of we're in our I'm I practices to lot we the liquidity, our I think more period continue aggressive been cost we've other a code the for about and what And just nothing good portfolio than us done maybe that maniacal and old about really continue, think that's certain important appropriate will short more "Rightsizing to not pretty assets. there's more management do. owners decide business review We've

portfolio is, for be what should all efficiencies several think cash, of the cost next expect the So quarters simplification. those I from about going to me be would tenants you it's and

Okay.

in just there you get the to would of are the next order phase where subtract, of Allscripts areas simplification portfolio important you're to that to Now to you seat kind be? any also, think you want add be where or in

see term, Well, I lot given in capital term. in the we're given deploying environment near operating near the don't again, and where our look, of the a is, stock in

I if did so are again, be towards other things the the -- we actions. bias would of so, term, more for the there think then And long we'll and better owners that, take those that

I'm with don't telling any that a -- be solutions, what that with more I So to wouldn't you body of specific as but just work.

ever to flow and with just uses capital get to maniacal your you Understood, consider peers about you other can where done dividend want to opposed cash like it of some have would something a success? that cash, get and of be, you assuming you as as

think Well, consider what anything have say I but bigger -- would look, interesting right, I portfolio. can Stephanie, I kind mean, showing we'd never never doing, we're picture, you that we we're of look, we an

higher is keep with leadership itself have have help business that to we mature enterprise. value We in. on industry solid term, segment it expand of core of lots Because and can it's it positions the should more its the can should higher profitability probably a like in really can And another is of great and business, a segment deploy a industry it growing. and think about managing that customers yet, longer which be then kind capital -- of growth,

keep tuned. enterprise think So, about how it. about level? Stay We'll a thinking do that at full we

sitting Rick. value all. shame there. be for my There's the Thank in at questions, I'll you no taking gain, none

are You welcome.

Thank you.

Our Jefferies. comes question. your of question Windley with with from next Dave Please proceed the line

evening. for Thanks questions. good taking Hi, my

described a for there. you dig think, you metrics to more a to fairly had a Telehealth. standstill X,XXX around from, basically what I rapid just was in as few So, providers I ramp hoping

could that about I predominantly that that about deploying deploy think side? thinking -- could on And Or audience run, this get short that should to kind base? is to? what also you that some acute be? TAM First, the of number uptake part you ambulatory that FollowMyHealth, being And would in your the the did kind the of being you addressable of

base So is the are ambulatory that first both adopting and it, the question of part acute. client

sides well. our most both that outside clients on platform, are I our -- clients. it exceptions, EHR house. base only with clients would FollowMyHealth of use few our a seen of our And of we've EHR the use the there as platform say So most that And

we it's than market addressable is considerably theory, now. or than bigger bigger more the I'd in now. it are is, Xx say So

time ago. some Some to And incorporate of fairness, decisions those a those re-visitation in may things, we all stuff see decisions. some made long like clients, of bolt-on of

we're short of not what's know turn to a to upside for into frankly, Xx us customer don't customer to the solution. going And feedback that think is the right I I it's lot that just good on I And exciting our So retention X acquisition is think go. frames, in too. time a is vehicle getting clients, but it's tool actually there now,

the and So a developed pre visit to to our queuing that Web basically many align acquire plugging their into so schedule of ability registered being without capability allows Telehealth even them these are customers clinic, site, at clients them just patients. up that as a we've keep

relationship patient. a that. friendly the So think tool word of physician the physician that's as or exciting, and spread cements the we it to continues and a in about And really again, that it's practice

-- So

things touched on on And a the few then AR you it in convert different deal into still DSOs way. any it the totally then wondered separately, you've later are the to if your it, year, is of or change around -- with essentially on it. revolver Got aging? seeing got a and Rick, AR capital. couple I in plan specifics, retire that

Just thinking about near term maturities?

yes. Yes,

we one, off DSO I look, you what produced of can mean, do here. calc number So

first a pleased bit, and that's month a the really changed say Dave with think, of core what little was receipts your of I think, April. on Our our at the top bigger DSOs really very I pleased question, that, have pretty good and I cash was, picture of is, for with Very, I'd quarter. but

front you So, far be I what so would -- good my take so have away. on that

Okay.

question, part -- the mature the our of in to converts yes, July, had that to those. yes, we've retire our second use are As revolver capacity and to intent your is

So that idle does capacity. debt, to obviously, we revolver some when of retiring it debt that there's net change do that, but no use

the answers. for Right, you understood. Thank

Welcome.

Thank you.

line your Stanley. Please of next Goldwasser question Ricky from Our with Morgan comes with question. the proceed

earlier, that funding earlier administration added fact of stimulus hospital a release and going lot any about are money have the talked the afternoon. some Yes, there's Paul, in fair The about been how their Good you you around doing hi. and the transparency this direction. the week you of share terms sense base? think of kind Do dollars How when customer have these getting allocated. budgets? they're of like your details in

states there's appropriate to the Yes. is conditions, just the meetings, United different to I've to talked were the for only that client, States, as clients. three have distancing, with get and yesterday In we programs. almost in those contact but pulse. in daily actually have business, folks, I been to a allow able have but programs rolled with nicely been a a that people, U.S., not appropriate those States, of but United I in been the lot outside you it been of out, number the and of was very say participating couple a with that different to way, actually mass for hospital all open in still know, and social our

other and capacity also helps that which didn't bed that a up. of a and anticipation negative short-term had helps by are they have side, in short payroll have -- have the of the are retrofitting pressure they costs they building they happen. make in to lot liquidity, term, like and bed. with their many certainly make windows in been The that things. of lot is They in cases, a -- $XX,XXX it for sure beds putting gone in time problem that, things So a new spent They them to that hospital them about new able the in surge, additional doors, their

caused are and blip but throw-away The capabilities get change a amount the pretty I that it's that's chunk them not And these future, Medicaid in piece. that, those. the in their pretty appropriate fact approximately broadly, out of also complain and of the important capacity the would so I are done. but those people, broadly, there's from fair money for in big on of me, our there's programs million them help very participating that's are nicely that and on that government. very they are hospitals that so, something am a folks a or hospital, That's say, a excuse a loans rural to of amount And these about substantially hurt, a any rural Medicare the not that new clients for there, got a -- passed put just $X get will term, hurry. to hearing And not financials, build did short stimulus getting being big their

doing potential as that we you're of years, modeling at talked couple about AlixPartners. you one is focus for on the the on follow-up the work think with When the about looking divestiture, are like margin? And next are decisions and lower are make margin pools that are revenue going divesting there at strategic looking accretive? of also you businesses all to here, even Or are if kind

and mean think everything on evaluating Ricky, a strategic we right that I'm for I is long-term I to question. the ski is we're that think signaling there be over out you that now, our little may just what tips what you do whatnot. in scope and

our And desire outside is if good that. of on more that that a capitalize we worth a than somewhat, think it's just something company inside lot it somewhat management, to ensure I maybe

And so, reviewing. we're

what's The not what's that that's it. part that, think entire I not? is and -- not of margin calculus strategic but entirely

at evaluate expect So I and then the think fair we something, receive for asset. least we'll to would value

not something and the committed is but conclude is we'll what that committed is we're any, not do if are saying, we is to strategic, that's do thing answer go it. a if from last do So take value reviewing, away then get should then there you we we to can't not going it, but fair we're better what to this because for anything sell So, right? we're

you. thank Understood,

Ricky. Thanks,

and comments. our any to Mr. the for floor that session. turn Thank concludes back Black Ladies to you. like I'd question-and-answer gentlemen, final

in Allscripts what appreciate foreboding every rest day also associates our heroes to when help world, United for advance of And in all on it. our it's themselves comment and the at only thank Singapore, you the they're the thank so literally of for the in they doing very of Australia. a like putting in outside -- I'd the the U.K., their cause client this. doing, to East, a clients they're we again the is for everything I today's And not our Also, in front have, to task that the Middle it's lines this company company. Canada, and the very is much also around attending call. States, to Thank want they're risk but

there the It's to have We beat this no playbook. pandemic. we And said, over as outset, all that clients as world are is facing I know. unbelievable, all

outcome all working we'll we and important get final committed all world We're appreciate an it's the it, you managing hard. Allscripts, it. We're thank the and today. trust event for we're here, We in all So but to time in history. your through your

today's concludes Thank you. conference. This

You for at may Thank your participation. you disconnect lines time. your this