NantHealth (NHIQ) 6 Nov 222022 Q3 Earnings call transcript

Welcome everyone and thank you for joining us today to discuss NantHealth's 2022 Third Quarter Financial Results.

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

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

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

Thanks, to third financial NantHealth's conference and everyone quarter Robert. call. XXXX afternoon results Good welcome

gross performance. XXXX. financial has Turning of briefly our revenue top million, of been $XX.X fourth quarter reported to our since fourth consecutive growth. margin margin We XX%, for highest was the total Gross the the line of quarter the quarter

dividends. efforts we for broaden over offerings the particularly our pleased that quarters, paying our have customers positive We several to is existing are are we generated pleased that last momentum, product

three-year commercial extension October, beginning provides million with to insurer we over their with Services a discuss let's secured Eviti client our Utilization through business URAC national announced members again Now business. this for XXXX. Medicaid Software that Connect platform of Health two coverage large our and redirection add formulary In contract a Eviti used period multiple Management the accreditation once earned solution. has Eviti full We renewal to This Connect states. across our has

two-year Our new renewal with for tailored to we existing solution autoimmune a receive seamlessly state-mandated payer auto it a unique member its customer, to continues with preferred feature allows are drug members This capability with it reviews processing preferred that ensuring need and eliminates from to signed prescribed. diseases its comply when a drugs agreement, Maryland list. clients Connect, Eviti added and Physicians and secondary -- Care for those annual the

members existing the processes. agreement to and which new outs secured designed to manual added one Turning organizations, to This an authorization Prior of We This fourth customer. in data enables process. went Authorization more enable deployment with live NaviNet with engagement. functionality platform added further XXX,XXX payer initial automated for We current reduce This new customer, decisions planned is we insurance patient with roll a completed an capability NaviNet. leading been health collection America's care. workflows speed and key quarter, to for has to streamline Open prior timely up

marks shipment strategically of quarter let for completed since OpenNMS form made and hardware reliable fourth was appliances that development of component. the quarter scalable infrastructure XXXX. capability our To monitoring position distributed milestone We SD-WAN. provider. via consecutive customers VMware IT Clients These up, significant of MSP delivered And user the Services entertainment the support included business, for as significant a a engagements This service small initiative organizations. clients' chain, optimized streaming a and the increased Minion within toward we significant sum using high of service an the testing. progress fourth around and a top OpenNMS will margin built secure, the wireless gross highly large national OpenNMS we the program. are OpenNMS monitor in several Managed OpenNMS to Monitoring factor Turning for Group, Network Minion appliances Provider, finally, retail communication that revenues XX%

Eviti utilization XXXX. through full Connect platform accreditation URAC management Our for are health in

quarter them results During fourth, I'll we and services. contract the the of renewal and our that products detail. far to multiple thus additional extensions, more Bob? some discuss Bob include signed over call agreements overview With our into third the turn and business, of financial to in

Thank you Ron.

the quarter. same This XXXX result year-on-year same a of QX period increase million, is to growth XXXX was XX% technology $XX.X the tied this the services in compared versus $X.X in the from last XX.X% was which due operating are with the continued period same period million for to portfolios up quarter. an third total from last into year Gross million was the $XX.X revenue increased prior XX.X% quarter from profit the same to in $X.X the in increase last increased Year-to-date was quarter structure Total last operating was build-out. in was million approximately revenue mostly expenses year. year. gross For is million product we're for approximately from profit X% and is up $XX.X year. $XX.X from expenses Gross in the at prior for third last Year-to-date the $XX.X our XXXX Eviti XXXX, up million, the revenue. XX%, which increase year, for mostly investments previous quarter million million. approximately up percent year year. Year-to-date from making the The margin $XX.X year X% the from

For compared year a to basis per attributable On prior million, XXXX, million, per approximately the $XX.X QX million, the million, is last in or Year-to-date year share loss compared from quarter last was per attributable of for period $X.XX $XX non-GAAP same at $X.XX per loss operations $X.XX or QX in million. share quarter. continuing net to net share $XX third XXXX year. the to This similar are loss with $XX.X third NantHealth $XX.X NantHealth was or net or $X.XX with share.

$X.X normal working equivalents at capital million cash turn million is which compared cash to Finally, that, call cash XX, by driven was which million, $X.X now with $X.X XX, back September needs. approximately at the With approximately was I June will Robert. over of Usage XXXX. and were

Thanks our open to we're remarks, call to prepared up we'd now questions. the and we've like Thanks. to Bob. open completed -- Operator,

Thanks Have thank you today. for operator. to our forward sharing everyone good And joining planned on us call. progress night. our We conference look next a

you for thank conclude does your the participation for conference lines. you We That that disconnect ask call and your please today.