NantHealth (NHIQ) 27 Feb 222021 Q4 Earnings call transcript

Greetings, ladies and gentlemen, and welcome to the NantHealth 2021 Fourth Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. [Operator instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Robert Jaffe, Investor Relations for NantHealth. Thank you, sir. ahead. go Please Mr. ahead. go Jaffe, please

be today harbor will call company’s provisions On on statement the and call could forward-looking Chief aspects information Officer; of to today’s is playback Ron being The NantHealth’s months stated covered website. I’d remind those today company’s the Petrou, our everyone certain Act. are like discussed will A Bob www.nanthealth.com. This the live implied. materially Louks, differ for management’s discussion the of future, reflecting safe include Chief X Litigation information results broadcast of on current Reform the under cautionary Operating from or make at call and available forecast and Financial is actual the all Officer. that of

the earlier measures for In directly measures of including the financial for company’s non-GAAP its followed today. Ron contained from in In the Bob business, Accounting those also discuss course Reconciliation results. its by the non-GAAP U.S. measures to that may press is full this accordance Investors the financial release results issued financial a are and not full results quarter we Principles XXXX comparable earnings review Generally year announcement. by non-GAAP financial release to may financial financial reasons encouraged measures NantHealth’s who announcing and call, with addition, financial during press financial will in most in different measures GAAP prepared company’s used non-GAAP are will other Accepted discuss companies. fourth refer to of the be moment,

that Louks. call will the I call turn open then Ron? over now said, to will questions. the for With Ron We

our call. recent the with And few to everyone. since share hope past, XXXX to safe We call. financial comments a afternoon, all conference year. results fourth about the I’d company’s quarter some Good comments then and start NantHealth’s you well of today and last been like on full year have Robert. the upcoming and Thanks, welcome

where working efforts our NantHealth non-core been and OpenNMS have we complementary These time, continue Services; throughout out in to the the product organization time, however, included capabilities At regularly sustainable and refocusing some and appropriate. we and the acquiring same our to enhanced and when growth. the services. for position reducing business, and development, assets; For build launching new products Group; business costs on divesting Software have invested

completed team. recently, and a financial Importantly, which major more expanded and last flexibility, we also management senior our April, we provided refinancing, strengthened

now and result, believe opportunities positioned are growth As our the for excited across a top-line we portfolio. we about prospects and entire

our to financial briefly results. Turning quarter fourth

As for and QX margins expected, from Revenue approximately in in which run million, rate QX XXXX. QX was gross increased average was our quarterly revenue a levels. to return $XX

which to year Group have short pleased OpenNMS are part note, We high on time recording ended in a the a revenue includes of highest quarterly NantHealth the family. from the as contribution

Maryland fourth development Physician’s is we Services the and let’s Eviti disease application business, with as Eviti said with autoimmune with additional Autoimmune is for went program beyond states. our Eviti the Connect live we Care. And oncology. first and Software In business. signed Now previously, discuss underway our Diseases Connect quarter, The diseases for beginning for

oncology certification Eviti customers for addition U.S. We to Kentucky, utilization states. Connect new Connect include improve product fully offerings largest we end-to-end that in health Eviti expand agreement customer-owned access Florida diseases. and the to provide and a the care And Massachusetts the signed and insurer to now logistics for new chronic high of management continue from We with expanded the X have of partner complex, delegated risk to services. management

plan guide submission supporting NaviNet AllPayer information to with which the an Authorizations, automation services Portal, NaviNet customers. Partner This NaviNet signed through into of the Healthcare alliance workflows, We third-party documentation. helps on-demand We entered that users reporting criteria which solution Open agreement self-insured with our its Open. payer health offers clinical trends, new administrator on payer new integrate Connect Change to and allows InterQual authorization NaviNet customers multi-year InterQual will leverage the which access prior year-over-year to automate direct-to-provider electronic in self-service, to enhanced a And provides prior We for use NantHealth agreement review And with to a customers signed Engagement. interactive Open we NaviNet solution. clients. launched XX% analytics a Payer its workflow. NaviNet-based recorded Advantage, requests streamlined with criteria growth enhance authorization for to to We and PriorAuthNow, insights. Turning their an agreement enables it we medical PriorAuthNow

virtual adjacent Monitoring Network This Fortune networks. we community. global XX Meridian featuring We XXX persisting to address sum to new from of OpenNMS data Autoimmune on in application is vulnerability, with Turning provider remote OpenNMS and to oncology, this managed the for the launched or finally, quickly, Connect more first updates to securely a LogXj Horizon than To Eviti with Eviti deploy service offering with organizations We service live beyond And reliably the strong. private OpenNMS. business, Minion help XXX a Minion customers. for closely streaming customer. for Diseases is our open-source went collaborating flow support to delivered flows Connect appliance We cloud-enabled and for interest collectors basis, monitoring partnered up, improve we released OpenNMS an its customer with CORTEX OpenNMS analytics expedited and offer OpenNMS at to scale. key and signed and

we’re top-line the our our to XXXX be With capabilities, turn our and and in prospects develop I’ll enhanced And we each that results to and overview foundation offering. more detail. launch and Bob? to of discuss over our and continue across the and of for about strong have of growth. businesses. believe invest built for will a business, call year Bob We our excited financial a will company, and expand services products and new our opportunities have We

Thank you, Ron.

million revenue $XX $XX.X quarter. total XXXX, prior was fourth in million compared year with QX For the

Total offerings. to our $XX.X million as increased to year, the prior $X.X For mostly our The decline service quarter-on-quarter million of XXXX, amortization acquisition QX of $XX.X in we in OpenNMS driven XX.X% XX%, as total now XXXX year. get do the the quarter to total million decline that profit year prior operating XXXX. OpenNMS a as expenses million expenses in in our million to compared which $XX.X the X.X% tied operating Gross compared expect to was the for tied from million $XX.X in decrease the margin reduction in the gross grows. a in quarter, full quarter professional million of increased back is by XXXX in and in with to was XX% The fourth of was impacted driven continued full same year-over-year or for past, XXXX. and from the lower from the the Year-over-year, services prior referenced $XX.X in of prior year. in products the normalized is decline year had the million or quarter previous $XX.X is to but investment by year which revenue levels revenue year all revenue $XX.X expenses is

fourth or or continuing operations the as loss $X.XX prior For share year share, QX per quarter. in million was $XX.X net per compared $XX.X XXXX, from million $X.XX with

the compared year. operations which is $XX.X per $X.XX million quarter million in non-GAAP is share, $X.XX was or year last a compared basis, net year. XXXX On $XX.X the from to $X.X share For net was per per continuing with loss fourth $X.XX million $XX.X or full loss share $X.XX XXXX, prior from per or for continuing operations share, in million or QX the which

to was or $XX continuing per or last This $X.XX full non-GAAP a on million compared million net For XXXX in XXXX. per $XX.X loss $X.XX the year, in which our lower year, with in mainly from is revenue share share. the basis, tied operations

the by and Finally, needs. other $XX.X our were $X.X call driven turn and the is $XX cash approximately With which approximately XXXX. million of million now I capital Usage cash at XXXX, working compared equivalents that, then of million September was remaining Robert. which the million, December $XX.X to over back from convertible will XX, XX, at notes payment final to XXXX, was cash

that our portion prepared today’s of completes call. Bob. Operator, Thanks,

– call the questions. up We’re open to please now

showing over for questions back Thank the in you. closing at instructions] queue We’re [Operator this to comments. floor turn no time. like I’d

Well, our on thank We all for you next scheduled look a good progress today. Have us sharing joining forward our call. day. conference to

Ladies and for in your conference. participation you gentlemen, today’s thank

of webcast. And the logoff the rest day. or enjoy lines your your disconnect may You