American Well (AMWL) 8 Nov 222022 Q3 Earnings call transcript

Good afternoon. My name is Mellissa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Amwell Q3 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator like of the Investor now Sue over Dooley, Head Relations to would call hand to I of Amwell.

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Hello, Relations. call conference quarter is to our Dooley Welcome Sue Investor fiscal This of to Amwell of third XXXX. everyone. discuss Amwell's

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moment. speak Now, broader I environment a for would like the to to

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operating with I'm looking us. you. Hello, you our metrics. everyone, results begin to thank joining key with I'll financial for and forward sharing some

of XX% are year on providers growth is total we demonstrate quarter to XX,XXX active with in compared a providers, active our provider continued to value number ended our our over growth and we platform deliver pleased payer the one use We see to We customers. the measure ago. third as providers, the to active representing

last this in we And healthy of We to describe active our As that the AX a anticipate will subset this business and providers press active QX. active our using summarize, of customers. identifying in changed XX% Converge complexities providers deploy of us still in due QX conduct this year. lower quarter, this in our continue to rise Beginning new and on our number number we grew release. calculating active slightly We methodology new to active better We number unify QX for as saw XX% we platforms. a XX% To methodology on way network as largest resulted we gives unique to of based accurately providers customers reflect versus employed change in believe and in of a providers method, providers this platform. specifics of our our this unique multiple by growth the providers year. on

as Moving represented X.X XX% of scheduled visit approximately million have the on COVID. of visits the and consistent XX%, beginning year, XX% the range to to we since XXXX up the approximately pre visits. quarter, same last XX% third in Total from seen with volume visits were

million, reflective are increase on third our our it's QX, million, customers. visits and proceeding an our volume follows. a according We that quarter what to of this was on growth to is linear, and quarter. total XX% as X% of in reflecting development, And was Subscription we which to are by $XX.X approximately to is new which our of The making grew migration XX% revenue of and with visits, Converge $XX.X components Converge 'XX. plan. we will financial and platform comprise driven over Total steady not expand now previously, nicely on customers as of expectations of the total revenue visits said ago, migrations our reflects versus is progress grew up results. are the highest XX% In compared second This year and as line year. year a transition our revenue the migrate

to growth million. at visit revenue Our our year in over long-term grounded high a rate quarter that revenue the business to faster $XX. profitability X% path our run. than $XX.X overall subscription visit both drive of period. to left AMG to ago and was is the Similar Revenue is per margin long declined plan year-over-year that

the our clients. view as element business important in many AMG offering and Our of market our supporting Converge an the to of strategy. critical important differentiator an we And is

spread year million $X.X back third which by ago the and in half we was marketing services driven services contract, was business. and Our this year international revenue an versus and had was The quarter a outperformance $X.X across services quarter, expected $X.X largely acceleration million to attributable points of our million the the be quarter. last the of to care concentrated

drive Looking towards customers strongest going fourth revenues typically and funds dedicated and the have as to use points quarter engagement care into QX, year-end. their in services seek

QX platform. we revenue services a anticipate as deploy our professional customized customers to of Additionally, mix strategic to contribution healthy of versions in continue

towards the point's I to XX%. Approximately year care just XXX points revenue last gross mix a was quarter margin shift than to and and services lower ago, margin largely Turning discussed. lower temporary profitability, due basis profit

the margin margins. efficiencies on MCs gross vary lift quarter believe that with our Our dynamics. as platform quarter we our will We gross can multi-tenant, ramp converged deployments, to associated base based up

into was on last spend we expenses, QX, is development Next, for regarding quarter increase $XX.X similar framework. significantly and year our operating spending off million. continue at this to plan next year Converse track. tapering to R&D And R&D as in described peaking to profitability our

ongoing $XXX fortunate to to negative the when for Our to sheet, improved review cash from this cover like to quarter synergies would the management around ending adjusted quarter, $XX.X careful expense term substantial and million our negative now headcount thanks cash investments. last position, million I'll and to speak EBITDA our our to I of further from balance acquisitions. Transitioning short $XX.X I with have a And guidance. we're outlook XXXX. recent million

are our we the positive. teams market track for the and customer Converge this, Ido to is right mentioned, is one, are well, executing feedback are As strategy our our we year, on by We're encouraged be strong. confident very position continues and on

million We our our our visibility set in $XXX of original only the one lower quarter achieving revenues our the opportunity to range guidance refine year of are provided guidance. taking $XXX of at to With left believe today we and range revenue end to previously within clear will have the the be the million. first We year.

EBITDA to I'd discuss our Next, guidance. like

We spending related discipline better and year. thanks from $XX EBITDA Converge in our and than around be adjusted original we will to headcount we million with adjusted raising for R&D is and deliver our pleased guidance. EBITDA are Conversa, prior believe approximately to or of synergies to line the guidance plan expense SilverCloud

benefits quarter demonstrate range and Converge, adjusted priorities, new our million enter deliver work strategic will strategic success out We is $XXX fourth negative our the of to further our to complete Our guidance on to $XXX million. solution. build of for our the deployments focused migrations XXXX we on negative ensure and customers the the of EBITDA laser

broader ground I'll and a financial for QX goals of at on in expanding our our call we XXXX we some important and summarize, With quarter year quarter long to solid our believe will through on taking year profitability. believe achieving questions. on a path we the full our high third before path this February. the are we Ido? To an future, outlined. guidance back it toward for margin have strategic for subscription technology usual, are encouraging and to Ido that, provide we on term us, and was transition By and heart execute As we growth, to proceed revenue comments closing turn your putting

a us, aim to the With out care It's well Thank QX days we you, Bob. to behind execute evolution in and year. digital strong early delivery. close

their are the a With seek they inspire partner enable us for differentiated every large listening that, we to Our ready customers organizations in solution, to today. and our to our the open digital future. to day, are unique empower role line opportunity to as for be Operator, prepared first to ready you we evolve conclude remarks. Thank questions.

[Operator first Cowen. Rhyee with Charles comes Your from line question of the Instructions]

an care a delivery? as environment? you've How tailwind that the sort Yes, down and also do years that much line as tips we're itself, a utilization being employers you from more a you of we're it about providers, where up idea the the seeing is you COVID say compared virtual. peaks speaking thanks. macro that think it's in do just, and just Thanks Ido, let's do How the visit go today solve being, well? And greater. more during the but of virtual where adoption part payers help broader described much you does period. not for embrace constrained the questions. budgets we what headwind to the think of is just versus answer think of all-embracing several What broadly, the of for to brought of core about talked And, clearly ago, providers in it? obviously, utilization over taking But

Ido, you're mute. on

you and very So for question. say your good Good Charles, sorry. thank evening,

the future that But not to counting connected A it's enablement of than do that that. measure telehealth the synonymously important of We are as see A to is we necessarily well. number of methods token the some utilization delivery much way. was past does progress very to and understand to is lot broader the the digital a adoption of we visits the try of in is virtual using digital really allows here definitely experience, and by visits. member exceptional providers automated participating transformation. first, interaction great in participants, secure into the visit namely certainly visits experience this other that in to said in are Having me system that, where physical also healthcare or is result trend with and creating the interact a a my visit degree stay payers, employers, is to the this and consumer

can't that because metric delivers to necessary imagine future. I the Any that the use relate narrow platform of and So, a of it financial future very improvement this a the going really outcomes where rather must relatively have to methods is more for than not sudden visits. to clinical or

you just that. give me maybe Let illustrate to example one

able no that not the a that on but potentially And transplant on growingly, XX, to a September with people list. one renowned as world, interaction, U.S. that are people requires they have powered of and their visits their people that to more UCSF on where enrolled very and very to could organization. really an from interesting toll of XX%, able the allow of importantly, on program the technology population on the candidates most is some their their got costs. with the popular And new great the listing the something in That than a only enormous would annually, that alone, and list fairly reducing really with by significant the on the on is be not less report of feedback was this digital and the more in the engage really people issued they program savings maybe kidney they staff of envelope, is for to both patients, platform, high. candidates own join the they with importantly, waitlist show than pre to with the is a to extremely With retention the X,XXX the importantly, testing said a there potential any by clients great reducing been emphasis program, of our amount routinely that has this patients. in pre technologies, on list, reduced be play, their million large engaged a navigators, today, they that but study created the year grew Most listing one manage the the user really this which FTEs patients. that centers important dollar by XX% With So our backdrop, and listing were AI, list. they really part were case in than some in more the really very patient staff, list $X.X and

and So care do is example measured very forward. a use the way for digital just cases be adoption healthy one see will we in delivery of different And much this going offering. market a broad to certainly broader our show, in the appetite

Appreciate that full another you back year? might takes as, end kind towards of gotten for the talked and have coming Can the that. just the sneak in, of sort into year the happen half lower things you sense you one occurred the of end. just what visibility And about didn't this of fourth I in maybe range? if that quarter to kind the a in Bob, Maybe Thanks. the or talk pop of could puts about

of year are and year customers, migrating middle finishing here on revenue, going a of we customers, for primary we coming really are talked have the checking we're beginning the the and we in we the beat business. feel our when about have the of the for all a And are middle items obviously, those and gave that our of side we're to at strategic articulated customers And Converge what in were our building ensuring And implementing talking the boxes. guidance, to out on development look, that we an experience transition in be those of range And forming you. range reason, the year. excellent platform, We our EBITDA checked thank about for Charles, Sure, in request the that through process. gave happy a be. or the like focus a the strategic

the the being range one we model. to we're we're in pleased that confident today. So, are the That performance sitting coming out. we where environment to in that the a right long-term set to our said, with And approach here environment was drive we're the market, that different very here's

not. -- our would that's did in tell control. like our I the really doing that And feel are the So, are what a I puts takes some you, think very ones in especially and control, with are job, good we're I some we

next question Craig of from Your line Hettenbach with Stanley. comes the Morgan

Craig, we you. can’t hear

is line Hettenbach Your open, Mr.

me you Sorry. hear now? Can

Yes.

Well, perfect. Apologies.

versus that plans. and on So the the between and we're the into the spending health the and overall you can technology then maybe dichotomy just environment, they're tie particularly means future of some systems and question also, a the point backdrop today? And of health proofing what of in pressures under type

Sure, thank you, Craig.

to no macro to everybody health be health really and we of and tight type speak. environment with seem That plans on is customers question seeing no requires value our that more as there's the also ROI. focus us there's trends even very now. So systems right much question And

in we cases, them and find needs. diversifying with retention, more some obviously, compete better business and to a top other financial priorities as and creating sticky, platform relationship about government. In the that try much system, the the So customers to improving and efficiency expand and member whether the of as key the serve allow with experience, the clinical trend and meaningful staff the our increase leaders, health as outcomes, similar it's members line revenue our and to relate customers, or term improving really stand can payers when understand a we of we case talk short that our we that, we our migrate, their, way

more platform. important ever. I relates the modularity of think to, In it you alluded our this environment, type The than it's second point, even to of

bought Daniel is the partner was for mid is part for the the the very two after the going benefit Today, it really you component first today. And year market use But the changing. next either You can it when the day smaller one growingly, really And so you platform can that didn't. we a the to fact And only in are based. how few of end utilization down and the That you really should really years. that. proud the have redness importance less saw on you a it expand past, market, way But to overstate in the frequency much remember, giant much in or need is United from of platform, our difficult and But measure of the also organizations Initially, offering way do. when ready cannot Select that the realize future really sophistication I we going you're lower in the foremost, the of or appreciation this that and buy market, a even of not of and very States there of it's to had may we the it's pan a was pain to that in some scope of but is across significant. is the clients of customers. switching the is they price services. not use, exactly out. size, scale strategic largest the lost, can more cases,

So a we see for argument buying. is that an

That appreciate the color.

comes of line from the question Stan with next securities. Wells Your Bernstein Fargo

made the to maybe remarks. of couple back want I to are go prepared Thanks that a my taking in questions. comments for

year, just then in certain environment, health you referred Bob, pressure market them you Ido, are I'm migrations or as mentioned to any think, there systems. I certain systems seeing trying giving that track. actual I any maybe to you are health on next think understand module without on you seeing Are think And operates I guidance about of next pressures? types us actual contemplating of for year? buying as maybe types

trend. are I people a financial. clear a with why is staff I But is That's one many Amwell, fairly mentioned there number stay common buy think retention. expand Amwell, there for today a many, as health their Well, reasons comprehensive earlier, The platform. systems or

fully So and that that improving integrated personalized the is ability expand in fast, a very experience patients, fact EMRs seems highly to context modern, very really providers work The the the number growing not a in sensitive. are number be reach of with helping of but staff. provider ways is your key, retain interface we only it's other and to very with also your important in

our We anything see are platform many in is on of technologies else the helpful. enormous processing than area really very of that more features There's AI, providers other also very really Because of using very, other tired. automation those pressure natural and today. data in that good relationship with help them collection, envelope, And so reminders of the if them appreciated fairly you a they some them be kind seems with can by managing longitudinal our patients -- reminding providing manage to can better, customers.

So are levers. common the overall, these

management are use readmission, today, of the the to some large of avoidance cases bottlenecks, as relates open, rediscovering are that go. it room, we stroke all way examples of we your of create examples of health, regularly behavioral giant see very when literally clients a list integration them hundreds and as to very a just specific emergency management very is there those comes course, to the the very of Of it that to

here. Thanks. Maybe a quick one

XXXX? to the in to to get changing sales On that drive on I year you. next go be great a cycle. market Thank kind this most of Is Converge upgrade your all hands how indicated may just strategy, year, a evolve strategy an think sense would of that deck

Sure.

we more the the about a mentioned was year number all for one than I effort and in the good are was That really shape. company this else. anything So Bob deals earlier, and as

by soon, behind We very development our lion's year. have the the us share plans of end the of

about and all year as our obviously we improving, doing really this that never It's offering our further Next to is customers. part going refining completing that stop of migration. about forward will

that and talked public, to So providers we we with early plan clearly, defense going nap. January pairs. very be which quite continue hurting now our into customers, about the to that they first line successful to and a their protect the did our of segment was to CBS we our that had on it X. immigration well. were are are the obviously was announced which of would Then they're offering we last low component And turning payer offering, and very a moved do end our live

example. other The

So also lot next a of we see definitely plan migrations to year.

segments, for customers the was for and development of in migration, it market market. the if will migration very a create and the year close strengthening is importantly, very really retention. this And that an will year, opportunities initial So is our generate focus growth, this on opportunity our same-store with focus strategic relationship next

Newcomers looking their And existing that more customers. when a ways, more are caution time we we heavy I'd the customers then various only to much that when also counties not people trend and we growth at be clients and strong very very a is and takes the very signed and the there. revenue, move. is agreements. of this other demonstrating go to it implement encouraging. the And But deal, in of trend it's length then We we recognize that tailwind success. like believe have through a will live effect that network we for really in

the line on Your with with BTIG. question comes David next Larsen

getting Without a congratulations specific. too Hi, on quarter. good

to like can that Thanks XQ objectives revenue of that expectations signed pace trending January newly expectations? the they of at You for going roll of Or XXXX? now? to deployment much. sort high revenue CVS we're in start EBITDA 'XX? Is calendar level? the are sort drivers of any relative are did does around deals on be to growth being very of in Given margin. economic environment the somewhat and CVS challenging the give progressing for long-term in, a is color you What X? relative And previously terms some of recognized to provide How positive

nice maybe confident first I'll Dave attention very So, the of question appetite are will if to the just relates your have market. we as question see we large and take about that part it in share. healthy, will growth, a trend fairly continue, there's of The the people a mix market no is same-store it, paying appetite

yet. answer. share Bob some others let But think see So incredibly to the the overall, commerce, the new of them, what But I that's shared we important. complete I encouraging. a didn't is also we we

So, but kind heart the doing been the behind customers holding our But goodness fantastic handicap, or in to operation from to able is to they've in I same with we've difficult haven't so, of hand to And new obviously on with here next force and months a upgrades. I our of last say that been, year, functionality. business, And platform where's they the a with customer -- the we've as been replatforming signing, is this. XX come job been customers, a finding logos, back the to present think, want don’t while one would of question done that better say sales is I your for is, tied going think I setup. fighting our has

into migration, next how relative over We quarters, we've customers positioned more we're ramp, prior really being on existing to people to the that position, active for services. our the the done buying and both, have we the to in that full seen selling about are feel a and credit the and in folks bookings up happen going But comfortable network with once year a good and the those while, rate vision making several the for future. obviously,

So it terrific customized folks strategic guess here, some Converge go add wanting those I remarks, in -- incremental those. the we're And would solutions functionality. thing. and of forward our that we prepared deploy our demand as that and to will referenced services revenue customers and more that, drive, as I more to more are That's I a hopefully, professional we seeing

very the which similarly, drive the are you And migrated realize the see, Converge, to but is throttle certainly whether drive the which other buying I on SilverCloud, year, lives, migration build from there. visits in as a going going year. be growth with are you're for percentage We've of it, of reflecting this the -- this of specific driving to really see to modules, would as going next year. our are to of going get quantum, next also half look progress, or off first go power implementations, that to revenue. I take drive But bit platform seen beginning the that. want will Conversa, good we'll but numbers the buying for more, customers, hope So, don't coming that's over of they're bookings, demand the a and I and helpful. do that that it's comfortable up certainly those of some of or of some see or and quarters momentum, we'll

in the much. very hop I'll back queue. thanks Great,

question Your Jailendra line from the next Truist with of Securities. Singh comes

decision, decision to the is making about your to I'm on that they Converge, the else mentioned Hi, offering those or Jalindera. either don't, for we're obviously hear update actually that Ron within what but module just that the thoughts a particularly that Eduardo just up you and the this are offering? feedback, -- something those looking delay drives to client for you're that curious ones one

So market clients I'm are fine. have again, which is obviously some the we that and penetrance sure don't a question. great a XXX% competition in with go they

in see, good rate we the it with excited really to far macro should make people Those confused some That the decision influenced we by are getting what priorities about ways have As two as decision. offering. the implement influenced the our very success or by and organization. readiness be not of the factors a in

have to organizations, our something matters. urgency. we nature, is it the beyond that and ones, commit. or eventually are that go comes more future. actually to push understand have that by even on these of it's connected timeline, is may original clear our systems. we much two, material a We our And don't impact that faster they jump and a things is when healthy dramatic it have by of and the you truly people, Others that deliver. are queue always sense challenges availability, staff to larger especially they So the that a that the ours, like the quarter to than platform And the on fair, can ready be challenges, we of offerings, a going realization control. month especially that and there not plan to impact to then feel But a we of feel when they some venue of very many much want But them factors see to obviously in thanks implementation

the Jack from line comes question Wallace of Next with the Guggenheim Securities.

Jack. embedded any to this those And season? from you. terms the the negative of volumes, any see John guidance you wanted are are is Hi, guidance? Thank for ask seeing XQ I flu if on within impacts impact or to visit on

business It The it's impact But New that And, just ground negative for in that. of the the seeing are we on it negative -- level heightened I our anecdotally certainly, the flu. are guess with it's activity folks It's seeing that's for we're in. getting positive the York associated business. I'm City.

certainly -- But hemisphere. is come specific from flu early get clearly the respiratory want about volumes. the think northern the to seeing I And we viruses. other volumes and So flu I are don’t impact are, to an

Nephron Research. Your, the from line comes next Eric with Percher question of

go Eric. in of I make [indiscernible] more step on gross XQ? just forward to Thank supposed margin, that to that want we that reverses sure earlier a pull to understand for back than rebounds expected? dilutive Just you. and this came low Hi, of clarify is to business is that understand, a margin this something as Or point. are up I the want margin to so

quarter the it see we This an acceleration -- of [indiscernible], quarter. expected executed marketing one former in is and typically third rather the The we programs. in large fourth

forward So, is that a expect big otherwise quarter had have the would the we I impact. in And anticipated. I expected It's not would that a of to the see dilutive revenues fourth wouldn't have a we better a -- expect fourth would performance some it pull quarter. number, than but in result, as margin

Okay, ask just costs AMT on Thank the could in labor great. weighing I might at seeing be one visits margins temporarily you. you follow-up, point? that within or whether are If of anything kind this

quarter, far kind so. in the going right kind through third it to and I hold say whether, that know as what for process business next we what a now XX think year. the No, of wouldn't going was I as We're from we're as now. I cost. seeing don't don't saw usual But is of that

Your line next question of with comes Piper Jessica from Sandler. the Tassan

Hi, my thanks taking questions. for

payer too? Converge more sort us So to is step have Are what percent if just accepted customers of I of provide a either payer, have you And same missed the provider then sense helpful may to point. able of at this know nascent. able a for guys you're upgrade be this. that'd or give completed But I

number in suggest you're also first, that and we beginning thank and system segments, our I report Just possible, see and following see migration to the what release. the good don't not in migration health voice. very nice think, I reporting. we you And them to healthy segments, on really try right your payer of and being but healthy as for of the really focus a some expand we the hear as metrics would much We

maybe roll you Thanks. or, could that are capabilities of supplemental to you think give add-on and do you asking out Okay, capabilities just within examples some Converge? the us some of customers

payment of services, the really the and the amount you Sure, scheduling balancing, really and load regulations, requires first everything enormous systems, payer realize dynamic of provider experience touches integration, rules many, many organizations, when it or element digital and and clinical others. workflow,

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very that is of very, significant. the doing So ROI

those investments. shy So they're not really or shy, making gun in

Motz from a line with Next Cindy Goldman of comes Sachs. question

taking for back numbers, to some make go sure my of just I the Hi, them. want question. I to thanks understand

ramp revenues, X.X% a just strong of some good, of next I we on like pull because the very So we guidance other of higher off around the it's just of need revenues definitely sort 'XX. lower your had when quarter than to And were sounds look, sort through fourth probably expecting. quarter, CarePoint the a this it of assume is like get to which end X% to quarter,

revenue I even maybe with from want quarter have then visit, per sequentially because like that. bumps little to year, the last check some a it And visit like was Bob, see I I to So, said is $XX, next And we down might is you which then just XX. think revenue, more.

follow So there be expectation was revenue going carry us then up. guess to I there. it? really you the just And on subscription wondering And if Thanks. as quarter, is have that see then would the a fourth going I something in

your sequential if and Thanks, changed so run period think about the revenue per right. it's that had methodology too, I ago that I is it's business. we number been our the visit, you on from think, Amwell use say $X we -- to -- $X Cindy. would down think about about year the down I It's on site

$X So $X. if number, you think Or within about all that it's proforma

it per urgent think consistent So revenue the in care, my have to a rather within And was, that it $X during I it's remarks or we because been go it's point of relative the where tends visit high when $X. percentage periods carries prepared the lower specialty. with down to

services So strategic I remarks, helpful other made was prepared in on around I some quarter. the revenue driving in the incremental and point fourth implementations Cindy that's that. professional And there the then hope

I in talked the about. across strength line items fourth range revenue for shipped the we'll the think quarter we to see get So, to that

have going arms would back pretty Is up, ahead. follow this but of you expecting. year a and And good, to were hard you're is system, lower but think steam behind kind on as marketing the still clients just they're working because and then new would year, see we curious that not tied because, ramp. I the just definitely then full and next we are it like that that were platform sales basically than they costs and to stuff I'm their like, that and go the mentioned had that because with salespeople had Okay, things that the the when their

with waiting on like out. maybe guidance, just You're sort Thanks, of EBITDA to you comfortable loss? do with to broad then giving I that path in getting questions, R&D for feel up of articulated know, following not sense just but again, profitability other work one the you're still your And the the down

anatomy our and you the changing and a service SaaS sales changing. and level, including touches more -- that Cindy, of in sale year. It's during we deep, we marketing. much from more we're every ways, enterprise party focus changes high in technology based not in the company only changing a are a much company, continue What platform, the DNA is company So with to our it's of and many technical have really advisory, of make made this and need sale, the a to those single

this very need grow. you on really And really a getting So our would the working and were ball. with new did not scheming we differentiated responsible but engineers great in caution, ready what hard growth to catch solution, emerge on while our organization to was way, this to operating that in time,

typically, different most army You an deals don't enterprise they sell the the and DNA, very, larger very to clients. it's solutions, longer, sophisticated cater to are these bigger need

less, do So with changing forward. very don't that you you see much more can going

that completely both is provided this pathway positive, framework the to also behind we something today, cash the year. So of were following and profitability stand flow

to about term long feel way Yes, that laid good the we very Cindy, out. just path laid on profitability I out, framework Agree, the we the was that

over years, the than gross going down seeing line year-over-year, low and subscription to Our driving mid-XXs, profitability, to profit that's across and leverage XXs growing our up drive in revenue term. the R&D margins overall faster being the other few incremental business items the from near operating the the meaningfully, next

same market strategic really beginning the on we very of time, the we're getting opportunity being see feel so, the concerns we've at like customers, Converge quality year, we it's of from strong the lot delivering. time. we the a And risked we de well, working on delivered saw we and are existing that feel, And because still around feedback and

EBITDA for share the and feel leverage to market that drive time, us very over delivering on to ability period of our get to breakeven. about good operating gains we So

the and what guidance, reflect February term We estimates seeing specific of lot a term for in will near more revenue markets our profitability. guidance on kind our be our we're in very And obviously that's and to near today. going

of comes Our the Lutz Allen with line America. Bank final from question of

questions. you. for I for taking Thanks Bob, guess the one

mentioned You that taking wage seeing kind charging opportunity that about behavioral relatively kind I Obviously, not of there's which good, it the you're care you're you about angle. the the Can like prices if AMG have is think, you occurring a raise been I but guess, for flattish. And maybe is been inflation of urgent different looks over visit, Thanks. talk price some the pressure place. and in AMG? average volatility, from per all to business, in prices think

our of basis. Allen I It's of on provider we and approach region very state couple And for for kind market. important. accomplish AMG that's meet set by to availability, One region to a by are prices we really state competitive we is do strategic our things. this a think SLAs, customers,

So well. But sure as return we want we make of are level wait for reasonable a we that to have generate to looking the also right times. availability on obviously

the in building in us, drive not in categories to on quarters I any have may opportunity same pricing as I volume the -- just lot that the be specialty we be we will degree but penetrated do here, -- can, once provider and are in love to we'll or wouldn't a care that but do I'm of to we some customers, building competitive a think overall, the I would And on several that of able strategic next further of market. we some increase some So, we the to urgent price well. side, are over our with for see. take but

it. Got

that at doctor putting those which if And to for the payers and trust brands current much add and models, patients be is really everyone. a It the participate one and so. share I There thing, of the platform. XX opportunity an to from both providing have looking managing our in will to opportunity specialty traditional a counter net would just Converge is reality they where market for on hospitals services same we're large providers do also would Unlike a and is the very capacity therefore providers other they to providers, positive Allen. an recruiting recognize cost see know to of they lower. the offers the

services a enabling. variable are that we are by we role for arranging is supply and our can long the actually we the orchestrating seeing and So more than these matchmaking paying actually services, it much margin, we defend the brokering because selling term are not

Ido. Thank,

At would to back call for this no any questions. there are I to over further Ido time, turn closing the like remarks.

look Thank forward time you, to support for I interest operator want We continue and really to everyone great our thank your appreciate dialogue. questions. your and in and

conference. This concludes today's

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