HMS (HMSY) 3 Nov 182018 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the HMS Q3 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this call is being recorded. It is now my pleasure to introduce Mr. Oakes. Dennis sir. ahead, go Please

you, Andrew. earnings XXXX. to HMS and Good call for morning, conference of welcome the the Thank third quarter

provide are Joining containing section Chief kindly full earnings as fashion. our financial on the and XXXX me Web open can hms.com. first revenue be inquiries list posted timely is and Lucia, Today's question Chief the and limit the supplemental company's and are as Officer; Investor so an will outlook site. their as Web updated by a you Executive will we line at Jeff Relations being Chairman to can of perspective one webcast for on well Jeff our IR quarterly an Officer. Investor get follow-up, release and Financial and our of in through information then one results questions. our for as accessed presentation We This of callers we call balance the that our well Sherman, Bill Bill site ask

I including materially. performance our and statements uncertainties differ may to see get our related started, and forward-looking expectations on of Such that view make today want objectives we to we we remind are based those XXXX subject future some full-year you risks to today. current actual the and future the business Before to as and statements financial of outlook, our are business plans that cause results will it

recent earnings which quarter reflect earnings release, XXXX in third in is factors result, The our cautionary with be in our final As the SEC are today's release the today's Form including described they until results XX-K. in conjunction XX-Q results risk filings Form financial should preliminary filed. not a company's most considered and statements

the morning. measures in Investor to our earnings measures reconciliation GAAP to and may And non-GAAP release both this we Finally, included is refer a presentation. certain of those

We begin. Bill? are to now ready

you, improve population and integrate good everyone. When Payment business. our Coordination morning, or was began, and the to in management the to execution core also and acquisition Dennis, total Eliza businesses. year in focus innovate continuing while Benefits emerging Thank TPM our integrity, our stated of

offerings years reserve financial increase a Our excluding progress business COB XX% of the our we've results the of diversify Payment Fulfillment that quarters, foundation our a year-over-year first of service three care in in contributor strong has to management, in release. through company consumer and also these engagement to the our on revenue to significant significant each first revenue the total Year-to-date been a Integrity, reflect XX.X% expansion revenue. past and year-to-date, made quarter include products. intelligence of two strategy form over X% risk growth and

to line and and EBITDA addition In initiatives will cost management meaningful this which have disciplined ongoing growth, led in a discuss earnings adjusted our greater top detail. in Jeff improvement

both TPM acquisition internal was via assembled Our suite development. and

they needed a issues of us addressing, a leveraged client and our move of help Our more our consumer relationships. core delivery segment this result customers industry-leading centric that responding data analytic healthcare in manner to that capabilities, is assets told into

far of recorded only customer base. over we're script of their within XX they business in disaster the of members will expansive and one next good X.X our the life-sustaining it a timeframe early the refills our years TPM hurricane individuals be real into portion the in cross-selling approached customer, as know their plan over we and outbound drugs. as during was of developed members of value our let September to million event. the were and expect several of We stages are month. Carolinas healthy preapproved the contact We reached hurricanes to out members in evident our the A clients to We for fastest-growing customers example early we the Panhandle in last and the deliver Florida to them advance for member hours. customers the that calls impact to Florence, consultation with largest keep to natural Such has beyond assistance a of making immediate health

a our decision was performance machine our learning, on in ago, data natural capital contributed three to spending sophisticated of robotic artificial strategic processing years automation. important has Another which about environment leverages ramp process order recent up made which the significantly create technology, intelligence language and big to

new and in rapidly analyze As adjust develop we sophisticated and believe, processes of now reduce innings early result, manual analytics, is more effectively, We seen only sets, investments. Integrity, huge our areas. more streamline data of can and To we're some but in greatest we've impact from our a getting the of more interventions. date, records technology positive full evident each service the organize lift Payment value throughout the

to productivity technology to tune our customers services addition of the fine members. align using are increasingly better we gains, their with In our needs and and

outperformance, enhancing achieve within on Moreover, needed HMS than increasing spending, which to several creates continues and these budgets expenditures continue factors, our present and among incidence HMS. increase demand The for bend with Medicaid those an Solutions Medicare at more challenges consumer customers for in as services more of state of our are effectively population emphasis have are critical to cost to decision our engage aging chronic an escalate. opportunities points Beyond member by health federal increasing which and address. to now savings, to the customers major headwinds the same cost ever present curve members healthcare improve short, to turn environment squarely factors satisfaction. internal which challenges macro year-to-date In the as contributed and experience outcomes their are conditions, external employers for upward more and our help can trajectory expertise

tools which set. customers containment the about breadth The the The to address passage funding was our Congress presents HMS plus constantly measure full devastating the critical recent for opportunities law in cost the Certainly can the signed our problem. More Elli initiatives. identifying XX of legislation data erratic solution state are and and week care analytics, patterns into help crisis. President last by to therefore educating our opioid opioid as measuring includes tailor-made the epidemic many We enablement CMS risk of and the and all consumer well. abusive help and opioid addressing broadly, assist new in care analytics extensive combat or of tools also warehouse prescribing are effectiveness treatment for address can to and engagement with identify misuse. HMS management

programs and funding. federal they with this develop partnering new others, as pursuant CMS to to forward look we So states,

We attention and have lead of together errors, healthier serving help mission lives. eliminate is a relentless to a customers, payment our corporate what objectives needs our the with to reduce motivates work. healthcare These waste consumers

a excellence, recognition dedicated ISO We quality skilled who focused It have quality, are for HMS the international standardization very XXXX, is share which industry continuous a commitment fortunate for entities the to as few operational and workforce standard was requirements or achieved. systems. is organization a management highly improvement. recently company's certified and healthcare to in on have meeting the the

pleased the certification. with we very So are

I concluded, Looking quarter more just two now at to items. want the specifically highlight

to a our outlook First, revenue which again acquisition supports full-year the $XXX to of record quarterly range $XXX million raise revenue, million. to

year-to-date deals to is sales to begin recent negotiation, against even a final signed in in order of growing, to the more -- to But about should in, on I quarter All the very will growth quarterly we cross our for work which in results. provide last XXXX execution Essette be XX. building call. pleased continue We’ve Jeff XXXX finish in foundation contracts and and for hard pipeline objectives. our Eliza year. contribute and third some our the recent several solid and now color some stages continue have encouraging of new on after we closing additional do revenue with strong spoke intend early are year-end, that Jeff? the our months the to Second,

good and morning. Bill you, Thank

in from the of was flow tax we $X.X recognized very XX% operating the to prior began a quarter adjusted with tax We approximately approval the tax to optimization a year We adjusted of gains prior did project, profitable completion key as internally quarter a our with board, million very came the in that million revenue in We quarter nearly our in refunds. in impressive have performance tax growth with which benefit due of the approaching pleased claims, revision and audits third certain in total operating which and plan. EBITDA every to margin resulted state result a EBITDA, excess of $X.XX We are cash benefit relating and which total refund quarter, continuing XXXX, million. margin of XX%, had of methodology years. above metric and the in apportionment across tax $XX benefit just $X.X XXXX. under and third was $XXX,XXX relating to roughly The tracked

fact the revenue first another commercial of record, Eliza comparison last year-over-year a X% the Third XX% the enhancement year have is is by was over inflated XXXX. Eliza been Working we inventory both revenue through of quarter a That began implementations even did source from year, nearly sequentially but we over three and acquire up year-to-date. commercial has is quarters. revenue also excluding throughout years, when of through up up not that XX% commercial revenue bit until quarterly the April

We monthly expectations accelerating this customers have in throughput, increased HMS. month every Through implementations exceeded and significantly have actual our our for October generation revenue year.

reporting sales metrics. last by the the are We increasing can In that we of year, to we began monthly so to and the compared inventory indicated implementations, of implementations addition quarters our reduce tracking to to wanted now and we number track when two do on we’ve year-end. roughly active continued to to year enhance process

XXXX. to as go today raising at by million our quarter million are end revenue We the the final range the $X into guidance and $XX of tightening bottom we

include As and reserve adjusted our impact guidance add the release, back our call, our net does reserve second we full-year in and on quarter quarter first for from revenue second the includes settlement release guidance million the $X.X Medicare an million $X.X the million the $XX full-year RAC EBITDA of nonrecurring in mentioned that quarter.

to sequential Third a slightly. forward which flat revenue, our is unusually quarter pull up quarter that so bit implies is fourth been we have there why of guidance revised was roughly may revenue strong, revenue suspect

third to continues adjusted boosting The in income, costs. we demonstrated again continue revenue EBITDA leverage bottom the the to our model as as and to operating manage largely margin once fall diligently quarter net line, incremental

earnings top hit range our quarter our second we each with the of revenue, revised end measures. provided on we expect currently quarter Assuming the exceed to target of we for release full-year fourth guidance those

we we was the prior million $XX.X activities, totaled our expectations do the quite total Stock-based somewhat $X.X rate of improvement. the reduced quarter contributed quarter. approximately order operating million is it management been was $X.X quarter. continue stock cash in anticipated fourth expect That consistent capital margin flow million, third in expect nonrecurring pick compensation below to and million $XX our to full-year but third $X through for to which of the up cost to rebounded in full-year of with the cash the run quarter the projected million, disciplined to in The and CapEx $XX.X in to million. million we quarters. payment have million in reach the $XX but in spending settlement approximately three the bottom-line and has expansion comp quarter first We of $XX

million. at balance $XXX September nearly cash XX Our was

view of opportunities as continue cash we pipeline of our are are the acquisition mere do that interest. acquisitions profile, we fact liquidity disciplined potential to so dictate an deal-making approach, growth continue our active in component so monitoring a last accumulating not the remain diligently We pursue rebuild we intend will will a pace. As acquisitions. we year, to long-term our Eliza following of We to

quarter we end finalizing the Our for is or the either custom continue for would on last so our as providing in technology payment XXXX call through current services. enhance total The next be will year been years. our year, fourth that of process our has February, population the management integrity on guidance our emphasis of several will budget

we should and closing out full-year questions. encouraged we'll very current As progress close now achieve us thoughts, we've for by our Bill? believe provide the well Bill made the to will throughout which objectives. we be then we're position some ready year, XXXX,

Thanks, Jeff.

ours experts have To As to Annual healthcare consumers, forward the where believe, and to those a path, startup the efforts Momentum future brought advance outcomes and and better to allow and in care be rising HMS, more explore to better but of more is fight of improve new care our clinical in to pride the make to to the move at facilitate waste, are lower interventions healthcare on better Helping customers we heart effectively together authors hosted costs. regarded better our do. are ways efforts, internal reduce health tools like is their to our obligation costs executives, much manage we Conference We engage recently and there a healthcare industry host realize contribution innovation designed entrepreneurs, healthcare. leaders. At business. to we and entities system, improving their nation we companies highly our health of an take find members to thought providing

at through Achieving want objectives appreciate get I each our question. colleagues let XXXX work our know for finish it thank I we We and that our is across to path much in HMS. support Andrew, and but stay everyone important keep first the sight, pushing to their will challenges. continue ready now months full-year line. confidence how HMS down it's we services their meet of the in for remind financial our all XX critical on is shareholders customers for want current the develop emerging order in to first my year-end. and closing, to respective we innovative roles their hard are through also In how our to value-added to of focused

with from [Operator of comes Instructions] Oppenheimer. line question Our Mohan first the Naidu

open. Your line now is

to quarter data taking of for great the A lot in date. Thanks points questions. my

selling you Elli the season? traction this update far with start the on season, in we As can us so

not basis, Mohan, is in process, investment while product, a in negotiation it's of clients number this paying so We’ve there's on -- Elli is fee. Sure. self a Bill. return PMPM not is think on the a we on got the contract it because a sold contingency sold great

probably product coinciding sale health of the are We plans budget the typically with cycles.

clients the of contracted implementation year the process So additional have end we product. for the expect in the by to and

management using revenue are care of Elli better intelligence XXXX that and We solutions. products as marketplace. inform the the as risk all the We well in to integration incremental three drive hope of in our Eliza will

add lot side, the portfolio of given expand to And Bill. other leverage there, Thanks, the you're are it solutions TPM could Okay. like action on you the looks current the there and there, any a momentum new getting that momentum?

organizations at consider health. really Jeff There consumer-oriented, remarks, are Integrity the we -- more as and prepared I health government service mentioned and where population in so there footprint areas continue in Well, what a we’re that’s solutions plans employers, both be that or as yes looking to actively we technology technology would Management. our potentially sponsored and Population -- I at we're two think our number platforms of -- looking to are are organizations, that Payment but at. services in expand looking or by that are And Total both

just very would can period mean, to analytics short companies our a actionable provide time. customers add, I that I on in Yes, and of we’re focused

we're So offering and there's to sure on activity Again, a profile the can going in it's amount the marketplace. We’ve at and our that lot base. fair of to still it company, to of looked long-term want our services we profile a customer be right growth strategic fits the additive continue do. our make to opportunities -- supplement of

will So expect see over more I we would time, acquisitions.

regards very service I and expect think return existing continue and we’ve disciplined complement to our taken ability the to a to approach to profile with mix.

great a on Congrats Jeff. and quarter. Bill Thanks,

you. Thank

Thank you.

Ryan next Thank William the comes with question Daniels our Blair. from of you. And line

now is open. line Your

Couple guys. year-to-date performance congratulations of strong will questions morning, on quick the you. I add Yes. outlook. for my and Good

we that's this of the year? nature the revenue the model, ink some think off, you do the recurring much all to about remaining, green how have through in moving XXXX still inventory think First if quicker, at into kind now you of have have process the you pipeline, plus outlook but your visibility you point the plus

this is Ryan, Jeff. Yes.

our it large point and XXXX. exit we plus think we XX% we most is And but as your I revenue our very good revenue, installed of that per of the do nature to in we have customer place, Eliza visibility with contracted recurring se, for same nature, into much of is, revenue remaining may XX% we revenue customers a for now the recurring have lot instance, meaning work very for year. of have given the XXXX, base in the every

XXXX prioritize for with good I through importantly, the we from to speed to think at on will and now XXXX can to better revenue in is, as visibility in I revenue we're a So expect HMS. better sales visibility real-time went implementations throughput XXXX, are that revenue sale the and current And important and think, actual that the both we leave to of vast I and flowing sales getting And get expecting implementations, customers implementations, of good year say drive majority are the we being and both XXXX. very fourth that as XXXX our XXXX. into to news we be impact basically with XXXX increase would for in generation. to occurring recurring That's going quarter our

follow-up I maybe of IT claims on the more and on with months IT we on the implementations, update investment CapEx but kind a there XX labor get status can you. and of fixed spend? and priorities for an made probably learning key Okay. be and some the coming force that’s to an know helpful. helping Thank outlook about will question AI be then investments That’s process And yield of very making. just you’ve and with you’ve drive machine my talked will

has CapEx stepped meaningfully. up So

routine, not an we expect XXXX, elevated we into million falling CapEx CapEx. then And some just be made generation what a for guidance cost. expansion providing accelerate really buckets. investment, I expect revenue helped level XXXX have product investment would yet $XX characterize as We over have we of for still have for that we of capital out product then and lights and while And couple taking these other of We on to keep finally, the and we've investments have and think development.

as investments out prepared expect on would those Bill continue I to remarks. his XXXX, So pointed

these at benefit from think look in are getting innings on the we investments. impact we we really capitalizing from we're these the early As of investments, the

make these a so to to think And continuing is I investments priority. be going

as I for most do focused our have rationalize we to that far we’re on XXXX, future the going and be think think And the investments current how as as to the impact I performance. long-term benefit, time. a see making over be we quite think which continue investments benefit, to payback we I these to the continue profile margin that have really expansion will will helpful

Thank guys. you, Great.

Thank next the Leerink Ana Gupte Partners. our you. line comes question And from of with

Your line is now open.

Hey, morning. payer the I question thanks. Good around a had mix.

payer looking And sense commercial here, if you margins Is of a a have of Medicare your what advantage there? Medicaid, the good. is us gross getting of just mix managed taking list the your list give commercial type Can then uptick all, nice mainly that? arena? You what in you any at there on are are are that components employer

Hi, Ana.

So, revenue of our vast is managed still health majority Medicaid. plan the

actually we’ve commercial go seen With the of the acquisition up. mix Eliza true

up the Medicare balance. And up with than making a little more bit Medicaid XX% of the advantage managed health make plan commercial so revenue and

with as drive to will in work, products from both out well. see and as is as true a seen, characterize and employer as a even still we’ve see opportunity we we which mix I commercial we into continued as that potential commercial Medicare services we growth the advantage. employer that in And great our true our significant interest expand upside points we what well, strong commercial, and think see employers have market

particularly, looks Payment how up? on more versus driven by the you any margins then going the with being the drivers your competitive prepaid in be Can of there a And and rate then in there, updates? Okay. the Integrity postpaid much there, what are growth side. growth like savings about you’re environment seeing talk is may of what bit the And prepaid, getting technology growth the and AI it and entering in here more throughput and the the

have Well, first core customer us business, our that into rebate COB base platform Integrity. -- with large a the sell we relatively to Payment in installed gives

that most significantly The ultimately quarter we natural talk customers with existing did growth we fourth helped 'XX so the quarter of accommodate the have that about technology from were coming medical of and revenue. list growth third technology drives incremental intelligence really including And using that in to and language revenue us investments the minimal number our to improve, is records in of seeing processing, the were requesting PI artificial made we cost. we performance

finding claims terms our technology so no which finds, getting seeing to improvement looking an be in say we’re improvement effective need seeing we’re And and of rates, we at, an using of don't therefore performance. we're in more so in to this

So continues. I integrity third payment growth think those the investments will perspective, continue. And quarter the exit from we as a

and We quarter year. this feel profile growth our next for have in year one about the of strongest quarters of good our PI non-rack third

Great. the color. for Thank you

our Thank from line Jamie Fargo. question Stockton with you. next And Wells the of comes

Your line open. is now

as one, questions. think primarily aspect? revenue we that Thanks first pulling from taking being some QX, about from for about the COB maybe a Hi. the comment I guess potentially should forward my

little hard It's to flesh a out.

guidance, fourth you If significant a guidance And basis. the QX I pushed -- slightly gave, in the QX remain revenue expect up I as it if been consistent, on would into somewhere QX, driven. that see we will full-year fairly you overall of quarter QX. think the see would which a maybe we COB year-to-date be had has to amount But we midpoint we’ve remember last of primarily was revenue look our year, from was at -- you mix

stuff structure you specifically, in that in And gotten business? the have is to historically Okay. of address to just a had more that because to benefit or cost you been able the investments is to before? Integrity haven't automate you've materializing you’ve big making like in seen, to revenue able been guys first that With been there comment of the that more of lot at, data. the a throw kind then, lower Because Bill's about opportunities you labor of Program that you’ve great. been there you some That’s a do benefits benefit for you’ve address that respect able feel maybe

We data our or generate or address problems with can but the Integrity both. -- that that findings automate we more ability exactly internal the the determine something nurse find really and that, support from data, customers address are having in then findings coder's our in course drive more the that to those invest of through started automate review. It's that more the is And either processes our that also constantly we both Payment against of problems analytics and/or can a we to how innovate which findings, clients product. the

a really going cost to through think driving volumes structure. focus lower it's So we and higher both. will I forward, on combination And continue of a the revenue both

Thanks. Okay.

comes question our with the from line Sean Dodge And Jefferies. you. of next Thank

now line Your is open.

sequential Maybe numbers parse the guess, were Good driven putting improvements questions. just the morning. in mentioned that how much the Thanks. if learning basis revenue, guys, look machine on the driven a came the there, by You productivity, on for us streamlining Thanks we're you can taking about new the you made implementations, implementations what Jamie, clients by just was the how at like versus commercial about, around for using some technology you out from made we versus progression much records. productivity? the talking investments number - you’ve things we same-store I talking to of more you've made? with you've progress elevate Jeff,

Jeff Bill, and follow-up. then I So, start will this is can

additions, -- sales that is we implementation is we’ve which at logos. of that, are significant a see XX% queue opportunity, but where in same-store, new implementation means that’s so XX%, Just is expansions then of clients, representative our given the sales. is, still balance, the we large amount that projects And existing from a about in our whitespace any typically time general, reminder comes of the our the what enhancements, with think XX% of

and logos to You in in Total logos would though see point, new would line. new are be to in there COB than expect found Management you Integrity this more Jeff? at Payment still that product Population

it's value our revenue, Integrity for COB highly using to bottom a line Yes, performance. and and the in place, think to by of ability company, because and the in expect the add and both tangible to so really and yield infrastructure it drives more is making data more improvements to cost drive yield That's continue in drives existing we accretive note, how investments important incremental improve the ingest process dedicated always I how and manage been growth is it's technology of Payment we’ve sole It that component has revenue, focus area future, customer us. would investments and I will teams base, an whose revenue incremental of where ours, to a it purpose for those revenue has -- a effectively. is it out both key

bit I RAC anything there? Thank guess, Medicare revenue Okay. And a helpful. noting the you. or worth changed sequentially, then, That's is up outlook there about is

to highest are scenarios improving CMS those requests, from continuing of in getting we We’ve been get I and types of and we're edits submitting these we're so seeing results. or CMS I number think and we approval audit submitting, approval. traction terms requests just for think of traction believe, to audit the good

the low perform we of can X% ADR X.X%. be from would of be audits We will I are remind hopeful 'XX, reduced able to from everyone amount increased in limit -- very January still we see to to level X.X%. the or of that that was the it

our to on could ability the see that revenue. an So increase impact have

having are is think CMS some by expansion audits, a hopeful we we being of in heading think into we number good seeing but I up, scenarios So pick are audit which that pace there, XXXX. see we good approved are progress thing the can the of we

Okay, very good. Thank you.

our And Matthew line with you. of Thank next question Robert from comes Gillmor Baird. the

now is line open. Your

clients, I lot And the an with thanks offering, to you're hoping I a guess, do create with was and touching in question. so strategy for update and will bit little Hey, get evolve different elements and strategy. on to the go-to-market be that of sales your broader conversation the more do lumpiness -- the little the strategic the sales bit a with the a your more future?

I if said, more most there or Bill. growing the we lumpiness, TPM sales because, know month. per is lot of fastest particularly member This as of is create the A it so will -- are segment. our transactional per don't

we’ve fixed sales, per think a had a And you when well a strong fee over of have advance, in or so per the fee, time, the for which terms Essette you licensing per product most spread member about that -- at continues really the as implementation So are fees. per member or Essette licensing fee is the part, now right to very month. that's Eliza, month transactional or then season

I right of three either we COB. Integrity So our new don't in in from where we COB see activity on do still lumpiness. to occasion, Payment will which the And implement We could because had quarter of years. significant as blips implement going have when -- or new for have, Medicaid's had the in a see to recover slight think backlogs first client, sales accounts, times always and we we're past, we've we

you go-to-market think our don't sales. see I or on lumpiness So to a are going our based strategies

our the government service for really all level And both well. so building major commercial at and the of offerings and on level focus our as by the sales our customers, is pipeline

how revenue our value a gotten think of is of perspective a forecasting I a from I we’ve at, getting flow and visibility basis. implementation what estimating better real of a couple things, say, on quarterly gotten better and would and -- sale going is that to we’ve monthly better As on process, the

for business. so it to and our for us, helpful of And prioritize big we terms quicker. is also conversation could our our customer, us a from in of visibility of into that have helpful how an them get level what need services with and the managing queue to impact It's different have to

to customer, we I customers. higher-level, can And suites our think cooperation certain the that approach we to our is as C that have of into an allows a a the strategic information and good discussion, the impact visibility we so that time, having if know look period elevate sales for more get in confidence of

shape wanted perspective, Got state a business. that it. segment Does about ask cycle from there sort the of the follow-up, a as competitive anything from to in And XXXX to you. market? the up year also standpoint I TPL noteworthy normal a Thank is rebid be for of a renewal and

set Georgia did on to California, with years, for sign X-year XX-month 'XX. And Carolina with current start which two North up to contract we contract in of through extended our it an the which XX a year Xst. states -- coming XXXX their additional will is the December Carolina, current a expect June included due We year results was so pushed were TPL XXXX, and from There began into was As typical XXXX in encouraging. year top and probably contract. have new last has Georgia. in been fairly June X was in North pretty far our extension extend of

a As see contracts we revenue re-procurement any signed year state we moment be At light about in our up are with think will XXXX. it year-end. relatively 'XX, by for appears roughly to the XX% if of about additional

you. Thank

line comes Genuity. Richard from And the our next you. with question Thank Close Canaccord of

Your line now is open.

it before had investments? where implementations, dig from two give sales. Jeff, it curious, what something clarify, to are quarters calculation of if a at with we the that I I if And you into quarters where lines benefit two the some was was these now, little And is? of did Great. come just perspective? along you that bit, -- from, exactly wondering maybe guess, was can Congratulations. respect could you mentioned, we just could to

into -- as year. quarters had kind wanted think at better the started We of -- basically that’s four we just us. a we I kind the actual for probably production. think normal is had upon a have as -- real we revenue quarters plus contract takes of But concern less we to it and based Yes, takes to a backlog, of a a two we get put implementations, puts

standpoint. and potentially we’ve having from an and I implementation efficient So place gotten a think to as more good capacity, better be actually that’s

queue, basis. a service we talk we very when monthly our to on customer, hit So have the for XXXX, XX type guidance -- in in for look expect as as our we what’s by visibility will February about good it at we by

any governor you for opportunities? -- level, in some we the looking upcoming you maybe all. -- assuming, get how can and Okay. opioid a Democrats was on shifts legislatures And at Bill, the maybe and then, opportunity states and real Are question state, to I the guess one, that just second, comments for there guys your at Medicaid on I on you, are certain federal comment, state expansion? And then to the curious are the get election

Yes.

So are the address to opioid opportunities analytics real. with help issue the

-- the a we because and access state everybody to represents what We see longitudinal, other companies able through our discussions nation they federal health Medicaid data. that with to to about program, are that. government are nation's about have and from Remember, to way historical have look the are the to don't we of we in Medicaid able plans government in so XX% at can't it's things just data

on be know overprescribing. So would there's tools identify and opioid from the able -- we to product pregnant I plans that That off say, comes being don't with to with it. the our why of real, are they is things the prescribing sometimes lens, are can to reasons focus that that that's out-of-the-box, pill table. anything shops comes analytics speak, more opioids. on and The that so in that system the further our to case, who the lot developing course, an so us are around strength -- might But moms a Elli the like of we erratic patterns, then where shelf, some bring

opportunities, expand contracts care real are this both -- would are states I And and believe is would the Florida Georgia. still will now. the that and they federal I -- are guess that for are point your that Democrat in hotly and races, those there's question contested ones somewhat are about funding second I at So close elected, for the then part, gubernatorial the states, the -- the a both because would managed But for the those plans in I current to major race. positive the with two Medicaid. be fee-for-service closest population. the managed That for Medicaid the are closest with we’ve think state governor's that with HMS, care the those population push if

guys? how do flow be you they implemented? quickly does quickly Medicaid, if can that expand Medicaid expansion how I mean, And to

guess speakers] [multiple it's Well, I a

opportunity XXXX a XXXX? that or Is

on state. the I depends think

enrollments exactly Medicaid approved the remember XXXX. Virginia of -- don't their I or the So but started expansion, to starting first of when first it's

could but requirements systems think quickly there can they and get eligibility with new time, I up So factors. be a dependent their and running, and the really state other it's how lag upon the

our So the it following pushed to it within be -- out could or could be year the fiscal fiscal year.

Congratulations. Okay. Thank you.

you. Thank

Thank the from comes with you. Stephanie next our question line And of Demko Citi.

open. now is line Your

Hi, Bill. Hi, Jeff.

Let congratulations quarter. me echo on strong the the

the to the on head we your towards us seeing this could give TPM within could are what you base? As end extent help activity year, And spend any the commercial that you just of an update catch-up customer pipeline?

strong QX, quarter. us, for a Generally, is

We’ve suite, the happen to As in catch-up. the the to more for to a than past, said pattern health and in I half in second that it closing our revenue had our product the customers HMS, instance, Eliza plan wouldn't fairly tend the QX, characterize first half, similar was gaps strongest care finish in it, year third where Eliza necessarily, and the fourth quarter as for stronger strong. was for so quarter. was look

I to in that outcome the a think year. this fourth expect quarter So occur similar of we'd

Louisiana I pilot? us follow-up, give could update you one on understood. the And an Elli

a is Well, it's the contracted with actually us. for system for they've it that state, us

that process or in of that health contracts with front in or state. That plans negotiation the in in longer So it's the of redlined no pilot being really is are state. where we’ve

So where from. are budget through approval. this we mentioned, the we what believe, those -- first, I their come their plans will Elli our consider, and they that's sales health as the capital us, get commercial where again, our are -- first is just going And year like

budget we'd process. sales expect to after approval go So to close their they

sales? long other until be that would Elli take ramp from how point it for used And that proof a as could

several foundational platform. Probably quarters couple I of of mean results to least, quarters, that as at a use

understood. I

know I on mean, didn't really a quick that, identifications platform, they -- use is their when about. client there alerts there -- get that in is of data are things see they use the sees the cases relatively they

were that. that’s in been in told were -- the the us the pilot, So clients pilot who the who plans health

to frequently they measuring Now a them. somebody the member, ER, how using seeing that, quarters a did investment, ROI would other to did all see a be that they PCP, really quickly to course, could would how take of the out is measure. quickly will we probably return on come And from of that would who the engage be which for the that is this with them be couple of right they or get along start things to able

Right.

Thanks questions. my to. forward for Looking taking

question And you. last Analysis. with Frank comes Thank from Sparacino First the

Hi, just things. guys. two Maybe

going from in revenue guess on if Essette, curious there be are just pop of not color but you know to generated quantify in dynamic I you that be specifically you will the are is, Elli sticking having meaningful competitive just I Thanks. opportunities there that. the think health And of mostly it's versus the First revenue but the I 'XX, in expectations in curious any helpful. would for will assume existing success, I Greenfield replacement in solutions, sales terms products be and or category,

I So will start.

materiality terms and impact as months be a revenue sales I next to and be to noted, it's huge wouldn’t of quarters, XXXX. of expect Elli, going a in expect model over occurring the given PMPM, in So from Bill going subscription standpoint a be there's that to we'd

with as we TPM And to as time long-term look suite, in Elli take us. conjunction an a well. complete then, at into our so receptivity, do think longer driven. I think for the Essette we RFP Management, opportunity it's state think as I sales Eliza process are also good sell and a going looking and Care market, a seeing to that that’s product know are we would which it I think to grower selling we we be is sell

package sell well to total, looking are as time. and in a individually over selling we're so And as total

management Essette the us platform. are to sales And existing replacement. They’ve an always replace care almost chosen

sales XX same typically like in and XX and intricate sell whole that's it since -- the already a fairly or care process vendor long are not it's we period, again, can is cycle. where management process, sales that, And day not the that's the for another to implement displacing sometimes Eliza, you a

Thank you. today's concludes question-and-answer session. that And

over that, with Lucia would Mr. closing I So turn to back for the call to like Bill remarks.

Thank HMS, when look in full-year XXXX. we want you thank to we for to again interest your forward preview will February, everybody continued our to and for you. in Well, speaking outlook

thank today’s day. the for participating does and and disconnect. wonderful Everyone, This in all program you have may a conference. conclude you gentlemen, Ladies