Change Healthcare (CHNG) 14 Feb 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to the Change Healthcare Inc. Q3 Fiscal Year 2020 Earnings Conference Call. At this time, all participants lines are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. aware today’s be being call Please recorded. Instructions] [ph] conference that is [Operator Instructions] [Operator

like conference I Smith, hand would to now the Investor Please Vice Relations. over proceed, sir. President, Evan to

Change Financial Eliasson, Good Change and and Chief third operator. President Healthcare's of which I'm President XX, XXXX, Change CEO, Vice on fiscal call and Neil joined you, Thank today quarter welcome to by Healthcare's for Healthcare's Executive morning, Officer. the December XXXX. Fredrik ended and earnings de Crescenzo,

will by Neil update, that, Fredrik from First, call a provide then for After the will business results financial for the review your we'll Neil. closing the open up quarter questions. followed remarks

forward-looking I Before which differ that to may in included suggested statements. materially would from everyone SEC the include in these discussed remind the reasons, Actual like several we company's comments for filings. results results in begin, detail comments more by are call today's conference

update no appendix are required by the appropriate, refer as Except measures measures supplemental note to financial that business. for our measures non-GAAP financial this Please release to we earnings non-GAAP to law, accompanying statements GAAP to where will Reconciliations financial in Healthcare the assumes or presentation. information. our also evaluate included obligation and any Change slides forward-looking of

website accompanying our to want of call conference this are slides www.changehealthcare.com. release remind Relations available supplemental section I everyone the the that earnings copies our and in Investor of at

Neil. With turn that, over I'll call Neil? the to

million, quarter. report million adjusted revenue $XXX Good Evan. and strong third pleased morning, $XXX quarter of you, everyone. Solutions to Thank I'm EBITDA of another

to continue our Imaging improve strategic to the margins free transform RCM leading XX,XXX flow. deliver focus excellence team organic cash and further and Healthcare to on execute our across quarter, initiatives and operational Services During franchises, our on growth businesses members of the Change

efficiently commitment of an our to additional improve in line during we $XXX our our of how As it. the healthcare with debt we, delivered, The we opportunities across can leverage. how strength performance, to consumers pay major quarter, of dimensions; be million a can as in result need healthcare how reduce and the our paid down outcomes, for three

of a Change role will the we in market, center the sits key at to of the healthcare play ecosystem, digital continue the these delivering address solutions innovative Given areas. critical transformation Healthcare U.S. to new,

excellence invest in, in to continue with our areas adjustment deliver price risk reach expand experience. of consumers, as address will and solutions empower needs solutions information accuracy, new overall We them revenue with affordability to like the advanced as and and and quality, healthcare improve payment well and that their transparency,

new The and interface standards efficiently recent and open, effectively. API existing our which growth based is and potential providing customers, services marketplace advanced them are our with of by or programming proven interoperability both a API application for expands connection, products, and services launch analytics

Now provide you our and growth and how me innovation we're let embedding our perspectives across initiative, platform. with some executing

wins during and existing opportunity our quarter, fiscal base, we As the have stated the strong past, we up-sell evidenced in in a and year-to-date. our client cross-sell by have

and us to accuracy payment segment, payers, across as well with continue several franchise as portfolio. with with our In wins gain adjustment solution their and large market expand across quality franchises, business risk we our analytic to continue our leading our work software their traction key and with who unit,

reimbursement. understand to they Recent appropriately help see our our significant from to which enables their drive innovative financial risk adjustment and wins value risk insurers view, derive better risk the can results trends, score software platform, include optimize Customers risk continue solutions. adjusted

of that are suite satisfaction. and providers modules deploy create earlier have enable automated Through of the the flexible payers provider of payment our and to multiple solutions. continue to flow, thereby cash workflow saving also we improving significant modular cost, We in rules payment increasing accuracy success with integrated process, accuracy, into

new, imaging gain enterprise annual meeting, with collectively hospitals new of provider XXX We to volume we momentum continued Society million imaging our America's platform. announced cloud partners over at In have several North that annual native X.X studies. the with manage early Radiological an of December,

This calendar customers XX these is expect migrate imaging network, these live We with to half over to studies to Change X.X platform customers imaging the than totaling first Healthcare expected year more the million XXXX. go enterprise of enterprise petabytes. in cloud-native

creates includes see data imaging packs, strategy, and which management, care migration in interest the to built coordination. and cardiology our native data for which strong network vendor a and market continue we services, radiology team enterprise ecosystem, and So scalable and cloud technology collaboration is on consolidation

network, customer enterprise and certain least a expense health XX%. optimize eliminating investments, IT and Change Healthcare’s reducing their overall requirements, can record operating with capital electronic its imaging With imaging at associated by including

Let in data to well. contracts sold And an increase and network. we medical volumes dental on me network move this of in segment, our payments, as solutions, segment. in Solutions a new Network our We experience number

healthcare building In across large life our momentum see and to our we the continuing data sciences in sector services and financial services, solutions media life while are markets. healthcare demand business, we are

web find, easy continue announced AWS securely Data use that worldwide third We service and for believe, party to, a data innovation the we subscribe it customers data makes to healthcare leader services. the it's cloud. be In Amazon Exchange, in in services to mid-November, a

highlighted in securely abstracts exchange, and Change provide providers participating Healthcare our the a offerings. data de-identified unique analytics data where as was inaugural we of data to access one

bring companies, stages early to also want the are this we to to highlight in only realizing opportunity. I a sciences of that moment take where value the life we

life concerned to with help including effectiveness to health of companies real space, outcomes turn access. which our Within measure partners us world improving and both sciences with the improvement, or health commercial research, downstream, economics are

including being others see emergence denied. my Our customers prescribed insurers? and given drug the prescriptions particularly is new help, for paid PBM’s daily and are drugs want And and being being to by to know, of we well-placed we paid

companies doctor be to optimize us partners meeting to most to protocol, trials patients receptive, our or modeling the selection, likely space, turn Within persistency sites is etcetera. patient what site determining have a desired clinical what

recruitment process is our customers. our save trial for data time can and money and clinical very intensive, labor The significant

We our including of seeing relationship with in continued also in business, are payments largest expanding United two BXB growth payers the our the States.

doing As their a these of of millions we payors while ROI provide provider our expanding can so, flow per of of significant deployment additional networks. saving them, they result across the year. settlement dollars improve solution the their segments advocate cash large-scale By are

groups although within aggregators, Services progress net customer In in overall TES. into on continue move new shift Technology-Enabled unit our TES, customer or see attrition and historical we as winning we to are our Healthcare in our Change and logos. business the making hospital-based Let well base, me base, our to selling leveraging existing services RCM business as to physician significant

in we Year-to-date, well initial size over of new rate, the and this transform This the deals, we average is an our improvement next as success indicative in increase saw of win couple years. our business as as business opportunities. of

the a Change for in consolidate center largest expansion a leaders Healthcare. the contract, of include significant wins set, for and the vendors a existing like Massachusetts, our new regional payment with systems an health consumer as Services, broader solution medical they leveraging Notable dollar and of RCM in with multi-million with eligibility large relationship contract enrollment quarter, one a services

data moment some patient the with our to initiatives organizations conform ways market solutions waste increase me past access, and Let interoperability. down costs, to Healthcare take of look around discuss quarter. regulations now new a continue and to for reduce drive over efficiencies, and

delivered One standards-based increase via these way this capabilities, simple needs API, manner. and the need, our and this API’s address to digital software partners easy To created meet that portfolio to services do of can connection, API a our targeted in to simple a where of and access a is products launched customers from buy discover, recently the manner. we on-demand in comprehensive and marketplace, and availability

and developers, us solutions, to for for allows interoperability our engage time the market testing time, innovation existing costs fostering companies. promoting while Dramatically ecosystem. expanding payor application This and opportunity speeding segments, digital capabilities to and new development provider while new reduce customers, across API’s health our including in and with

customers ability of to use to In marketplace easily existing their enhance cross-sell to provides addition, products. the looking our our and up-sell

customers already and through innovation and API increase services Amazon, our distribution expand year We other calendar marketplace. expect beyond XXXX including Azure throughout seeing accessing our connection this as the through more marketplaces APIs API and online to new are add Microsoft the we

solution such as During the cost, enable workflows. vastly their electronically and quarter, to to a documents fraction claims we industry's announced data, of providers and attachments, payers first the submit at current streamlined also nationwide with to

a of our kind the our offered to that This value Change our ability uniquely bring first built to is of and driven by our offering scale upon another and customers. network pervasiveness network Healthcare innovation because of is

on documents claims and adjudication attachments manually. network submit attachment payment some claim of for adjudication this that That's submitted require that an the enable clinical situation, With through can new any right. Affordable Quality you the of in and background reach and has give country. the stated payer XX% country. data providers in required Any the Council Health Care payer To this Healthcare capability, Change are claim and for to XX% currently

as is opportunity delays is claim for $XXX annually. million and and be by providers. The causes payers manually delayed as creates providers attachments costly, and to to estimated electronic frustration high savings which national Handling attachments adjudication, claims payments total adopting

finally, pay we brings Shop, and a Microsoft. technologies at healthcare shop, gave Healthcare pay solution. capabilities engagement our Conference, with collaboration book and and And peak sneak our the consumer in JPMorgan partners, and book at Adobe world-class to

over responsibility deal are payment as spending low around and healthcare. Consumer payment, confusing The is year, transparency growing several affordability. payer to with is in they the fastest points and U.S. consumers care cost, limited for pain bills, out-of-pocket $XXX options health per increased result for address billion consumers

their shop will consumer-friendly patients for Change size time, relevant comprehensive e-commerce allows scheduling doctor's offices Healthcare price to and offer for down through and just to than any care, organizations pay solution bundles, service the transparency, first capabilities to book availability. patients. small More to procedure it providers healthcare shop, of allow recommendations

bundle the pay these We patient, today providers fraction typically shop, provide a basis, cost book providers are per spending to at for basic year capabilities. services of and on a per will of the

today e-commerce providers hospitality the the banking powers thousands the best to love healthcare industries. same Hundreds retail, across experiences and U.S. of opportunity the in in that of consumer engagement technology leverage

In and our introduction solutions market our of closing, the our recent with the and us long-term provides initiatives strong growth platform, in potential. execution of our new strategic reach, that value-added growth the wins across expand enhance confidence

the for detail turn Fredrik? year. on to Fredrik, our and quarter the financial over review with outlook the let you Now provide who for call our me performance more will financial

in three all segments Good successful very by we're of quarter, I Neil. actions, morning, strategic continue continued for to you, the growth to everyone. Connected Analytics services impact we business, and am of as to our offset assets. another disclosed Thank value yet taking businesses well opportunities, report our maximize delivering review those across previously the to RCM Imaging reposition growth, underlying are as where pleased

are toward technology we Networks our Solutions growth segment. driven of improved Software an fiscal As and business phase, of end and segments enabled the RCM Services by in poised build the continued our repositioning to in primarily we progress and growth deliver XXXX, move our a year revenue acceleration services in in Analytics

and We long focusing of operational to term, core line initiatives excellence profitability confident drive remain strategy sustainable on sight have our growth, and a cash of growth clear flow. and in

then financial results XXXX, provide fiscal our for year the review me guidance fiscal and XXXX. for full quarter year our quarter, let and fourth Now

Xst here accounting you a recognition revenue can on modified I've and six, retrospective XXXX standard Healthcare ASC quarters in on outlined a adopted As XXX see Change April as effective new slide basis. prior

and our new XXXX, our fiscal we'll a Xst results this the percentage recognition conformity In the revenue prior results recognition from financial April XXX. reporting use with Historical in standard. for year prior periods revenue financial going to forward, ASC standard year

For a we XXXX, for fiscal ASC to provide however, comparative bridge year will purposes. XXX results

excludes on which postage focus it is merely In presentation revenue, a our addition, revenue solutions as will passthrough. we

revenue was strong Solutions performance $XXX in Network of given Analytics the the XXXX, Solutions XXX, in line was quarter with segment. expectations third million under our For our and Software fiscal which ASC

year in change than results million software was was impact $XX of standards. million anticipated. $X include and includes higher These was certain primarily first analytics of less ASC of which Solutions, revenue periods. as certain into This and XXX million primarily the Decision to a $XX quarter acceleration and fiscal revenue a extension Support future result to the of previously The the accounting related the revenue

structure, $X amounts accounting was not the services, services continuing standard customers behalf as were are collected For ASC technology on revenue the versus to enabled from delivered new prior fee negative the quarter for when accounting these the the the of million XXX the under recognized is impact under standard. due in services

million solid solution, XXX $XXX a to the EBITDA data and sales which negatively financial us imaging year from ASC our outlined in impacted Adjusted our AI, initiatives. meet line was and previously EBITDA Adjusted the the objectives. by previously drops impact enterprise support enterprise bottom was placing position to directly to mentioned investment full revenue

million partially was This commissions of the up contracts costs and by offset a new result impact set [Indiscernible] favorable as new on accounting standard. of

quarter, a expense commission approximately on to fourth expect $X impact For million. positive we the be

unit and income per Adjusted net was net million, income diluted was adjusted $XXX $X.XX.

comparative seven. our purposes to on Slide XXX, moving ASC the Now results for on

to compared prior For $XXX in the revenue quarter, year. same total million the of the million $XXX under ASC third period XXX, was

for $XXX $XX was our was Solutions the and negative revenue fiscal included services technology X.X% connected revenue optimization of to which related enabled million, in XXXX. planned contract third our year-over-year growth $XXX analytic of impact impact business. to million in solutions quarter business, the of eliminations compared Overall from the

$XXX with margin compared last the EBITDA million the fiscal XXXX Solutions compared same as a $XXX percentage XX.X% year. million in year. for period XX.X% of was the quarter Adjusted EBITDA for of of Adjusted the revenue quarter third with prior was

$XX Improvement diluted net net adjusted the the synergies. XXXX. unit million third the related reflect revenue in quarter Net of fiscal with income income for and income $X.XX margin of and resulting was million per net of diluted $X.XX improvement compared growth $XX of per quarter income incremental operational in unit respectively and EBITDA for

adjusted $XX million was for income fiscal $X.XX third in income net year. Adjusted of adjusted quarter per net of $XXX net million diluted with unit $X.XX unit resulting or last income of compared the per diluted respectively

by million in in integration to amortization and higher improvement and and the the income period. EBITDA, strategic and CapEx, in reflects reduction related was offset income higher interest net [ph] expenses. expenses lower This related the integration expense, Adjusted adjusted $X partially expense tax strategic current

results to prior the in give fiscal fully third same the units outstanding year. unit fully the XXXX, units IPO, effect diluted quarter $XXX The also the period $XXX million of to per diluted million fiscal with in compared of

standard are XXX let's look meaningful Now the year-over-year take segments slide prior detail using of on provide a at again, to a our more performance more in Once accounting we eight. ASC a comparison.

the Software in and revenue, adjustment. grew accuracy, X.X% risk our Software driven was strong leading segment Starting in Analytics with year-over-year. decision segment Analytics support, by payment and our Growth performance and franchises like

impacted partially optimization imaging assessment a was and Results our previously Connected enterprise cloud disclosed strategic imaging business to transition based a in our and solution. of by Solution, Analytic

the and disclosed by and previously In for quarter the impact ramp of year. impacted Analytics guidance large slower was which contract, a the addition, our Software up fourth will quarter full

customers by volumes. of Our Data Network new network combined X% with in implementation stronger drivers Solutions payments increase revenue included Solutions, and dental, Key medical year-over-year.

for on well data expansion all make distribution expanded to continue all of like shop, progress Neil market early we opportunities like reviewed growth adding for channels areas and solutions his as addition, In use and in new payer book pay, remarks. cases, in which attachments, new as opportunities

our segment, planned, eliminations. overall declined In This million Services Technology X.X%. includes Enabled revenue of $XX contract

attrition, Excluding growth this revenue was planned X.X%.

growth was attrition attrition and year-to-date, X.X%. revenue $XX was planned Fiscal excluding the planned million

and systems better our wins aggregated reposition potential. to and continue Neil and improve long-term to and address continue enhance to markets to we the and additional expand to dynamics, drive As mentioned, in efficiency market health growth solutions

EBITDA. adjusted to Turning

our growth, results transformation. grew were AI Analytics to enterprise Analytics X.X% to by the imaging operational cost by and Connected initiatives partially investments related and revenue along initiatives support offset with The Solutions, and synergies driven Software year-over-year.

EBITDA by markets, our data dental increased data business a quarter, volume Network to in increased network our including increased offset X.X% Solutions across adjusted networks continued driven of the solutions and BXB integration growth again network and in of the new expansion of solutions, the growth the and and investments dental medical into payment network capabilities. by support expansion in the

cycle of services, the the and and million In business. EBITDA approximately payment solutions to the due revenue $X adjusted technology repositioning services enabled by decreased communication

will We margin related intelligence impact excellence EBITDA our initial sequential as expect initiatives. this a operational adjusted quarter growth the automation initiatives, including of stronger fourth and year-over-year segment show in result of and improvement and artificial our

the expense $X ability decreased for the our goals Last, being to support to lower public million year. by corporate which company increased expenses SG&A the offset by expenses. continued our more achieve across business Overall, than results

to flow compared ended sheet this for months for three Moving our year. $XX was cash the to and XXst million on flow Free prior million three year, the negative nine. December same in balance slide the $XXX months cash

cash flow XXXX Fiscal $XX compared flow prior was free cash ended for in to three million million the $XXX the million months free versus the period. Adjusted $XXX million was $XX period. December year-to-date year prior XX, in year

$XXX flow cash year period. the in versus was prior $XXX free fiscal Adjusted million million year-to-date

the million debt. we During in paid down quarter, $XXX

was including result, short-term credit net total X.X. slightly $X.X over loan of billion agreement a from debt ratio portion As the with leverage

down is prior quarter. the from This in X.X

the liquidity revolver. with $XX a remained of undrawn ending Our quarter over cash fully strong and cash million equivalent, and

ton pay by remains half leverage year, including Our debt down objective operating and performance. to a reduce approximately improved a

guidance Slide Now XX. on key and our moving onto assumptions financial

guidance, our As important but company, public as for we being I in given get clear do our of view of ASC was quarterly intend and to a quarters, prior investors term longer a felt provide year stated the not to we quarterly first this expectations. XXX it impact

million net the to XXX. quarter includes Solutions to million negative with the revenue $XXX ASC million $XXX impact of an from $XX is year for expectations this fiscal be range in Our which estimated fourth

compared line revenue. is reported connected with quarter continued Analytics year-over-year and Software guidance of provided than we be and the with and the last the to of analytics. assessment ASC large Analytics the This prior Software our impact revenue slower of in to a and anticipated guidance year assumes rollout essentially related flat Revenue contract for XXX strategic

In year. range the and million Adjusted EBITDA overall of to with improvement partially XXX for addition, we quarter mentioned. is $XXX continued margins to eliminations corporate the $XXX already also a sequentially the remain result as to ASC be flat the third expect remainder in million of year-over-year impact by of the offset expected and revenue in

be in net million addition, to million. we income $XXX of In expect the range to adjusted $XXX

to For two our Including impact year full for we the is the revenue to ASC accounting materially standards. the $X the year. incremental guidance, differ year not between approximately prior quarter, XXX in impact third be revenue the decrease million in full expected anticipate

this revenue ASC disclosed and not a the our growth of Analytics, to of previously X% the XXX expected lower in ramp slower end anticipated incremental Software in contract be As and result the guidance X% impact, up than year. for to is

growth EBITDA We be to X% fiscal of our with year adjusted XXXX. X% in continue to XX% net to income the to the adjusted for in of expect to be range range X% the

full back free adding to year million be in as will to temporary the of above $XXX In previously flow million, million expected the flow $XXX for and $XXX fiscal year the cash range guided. is free OpEx, our be addition, integration CapEx cash XXXX

of the CapEx minimum to which of XXX.X million for $XXX key effective fiscal XX%. of million, million like range the for of CapEx basic million for of X% units, provide of supports million that $XX I'd $XXX million, this to million even guidance. units fiscal integration approximately integration for outstanding adjusted year To to revenue, Interest TEUs. year related includes excluding expense and further shares approximately $XXX solutions the in highlight the the expense to $XXX $XX number rate XX% full assumptions of transparency investors, of the to following tax

approximately with Fully TEU. to assuming the no diluted shares be are delusion expected third quarter additional flat the from

fiscal to XXXX turning Now guidance.

For expect previously to Software continue and of Network our Analytics as X% to and growth segment, both X% revenue guided. Solutions we strong

in by assumes our new payment including in supported transformation. the leading continued in as adjustment demand the is momentum solutions imaging well and our solutions FY from XX risk growth the enterprise Analytics continued launched for our Connected accuracy, and value-added support headwind business. also as It Analytics decision Software

is new growth supported including well data rollout our continued a of Solutions solution. as the Network continued momentum by in solutions our businesses attachment and as nationwide solutions all-payer payment

services value make the With segments RCM respect focusing current significant recent in year But bookings hospital impact of groups customers revenue in million a driven the fiscal technology-enabled services, segment, physician on to portion primarily $XX second the decision and with growth A aggregators. by have higher of contracts of expectations. one to of the XXXX, for is our year. in half insource pivoting an line growth affiliated to continue of progress business approximately the we our anticipated with impact to year-to-date market, are to on

continue our RCM to the use network new to to our value-added This can relationship diversity high after a access to integrated include This with capabilities because patient the scope them value also is delivery a good that system We're advanced provide services. of change software, of connectivity we will we how expand discussions of needs in and customers our example of portfolio. offer. even

this know note would our RCM RCM as I our after customer of limited. business. more serves concentration our We accounting contract, representing than risk is X% our also for remaining

for be to not flat we're technology revenue to services enables year-over-year. fiscal growth up result, expecting XXXX a year As X% to

trends on to overall aforementioned to fiscal the of revenue growth company X% we our continue range XX within segments, based to be X%. for expect for the in So three target our

expect services. the to to additional for technology-enabled of that growth lower impact execute continue adjusted EBITDA also initiatives of we growth as productivity revenue We X% offset X% on will expectations

it with me let his turn that, to over Neil closing Now for remarks.

Fredrik. Thank you,

deliver new, healthcare, to improve opportunities that value critical to the we've our strength As high we our to customers. demonstrated, meet and address the of of the continue major leverage solutions platform needs

and our further & ability our of our will our the accelerate potential. The our recent customers data in AWS exchange, growth Services API support participation and Connection to bring launch to innovation

track deliver in to purposeful on our remain focused on commitments our journey. and are on We continuing

clinical helping and customers value waste, members them team administrative our outcomes, and access consumers. XX,XXX to Our to performance, financial day engagement optimize for improve healthcare enhance every eliminate deliver

the questions. Now, the to operator Operator? over I'll call turn to take

comes from Jones And Instructions] with Robert our first Sachs. Goldman [Operator question

You may proceed.

in Thanks year. just growth of is questions on to this big very RCM to think maybe to to sizable top this this just made. X% seems like And to fairly next like the of context the back this that in achieving how headwind that IBM your decision, all get we overall detail. ability I'm it for that to a change guess Great. trying that prior just sounds How curious relative obviously, has comments X% about still it the should I but confident the and line a just Fredrik, you in that, go you to guys expectations. context this was made. your are given

occurred, here and we the we next We business can and really this about services very see next year. good you Solutions room to quarter technology-enabled that year meet our mean, meeting grow of felt and software had still about growth to I obviously the feel We the had Well, this good plenty before expect Network our guidance. between still business.

we the momentum So in marketplace. our a the strength a portfolio underlying testament solutions that and the fact the to that have of the good is great diversity here such have

is we perspective one line this And business you some the earnings make the point the that XX%. things can will without to our done that that is that's changes, not productivity improve So because say, that things of even obviously is and our baked overall, IPO to news we've make you vibrancy in we're of with we obviously the these know connected of we sure our on That's of if sure changing we a the we've can sight this and where further that that deliver why drag, since analytics key be that have an efforts us. -- absorb of heading. difficult one at But whatever initiative. good also from that we continued will

story doesn't at we be And this get line still a So, to all. the really to will X%. from X% perspective, to bottom our able change

Bob, it’s Neil.

remain build strength through in bookings We rate to fiscal for the very to foundation year. accelerating gone relative as growth continues expectations, and our also to the continue by year, encouraged the we've which next sales the

helpful. guess follow Now, just up. that, quick a that's I

being from the a years. we in to As there some was pursue the analytics a or divesting the part you that SX mentioned, continue few connected your a play certain that certain couple years? of ability Does drag, language assets in restrictions next businesses the over noticed to the sales around for of removal

outlined part restrictions of intent he Change some going are we that that not core really relate have assets no two absolutely S-X to of being in Healthcare forward.

So, for assessment Connect that Analytics of be there. continue as the that sense example we would of part makes not what most

doesn't make the change It practical on implications makes and will portfolio, it sense sense. not the that across have So some direction. doesn't really journey what any of really looking we're our to repositioning of strategic what assets our

much. Great. Thanks so

you. Thank

next with And our Gill JPMorgan. from Lisa comes question

You may proceed.

much. very Thanks Good morning.

you that providing what's data? healthcare As could and the think that that role maybe about about going talk you the can of see amount at we surprise potential we about you around change think you data potential billing we have, all around think legislation, as do on billing play look

from And then kinds at about secondly, engaging these going side? think back your conference the announce did products? come be what shop, to how that just you is to of going Is in be pay, Or provider to to patients member do going going their engagement? you our that book that's around and

very think I Those Lisa. important are thanks Yes, areas. two

data think on the I side.

been government. optimize to greater directed the healthcare all in data active utilization liquidity As you long know, call that's participants the we've by we transparency system, for proponents including very and data, utilization of by its the

healthcare. data And as I So to the well supported all to our provide to to do continue ability the all provide perspective agencies, and been investment further excited continue as so. payor the provider security, the continue is think constituents over to very and by and will customers scalability parties we've around in make government very made we'll U.S. to to system, and privacy, including and the that pleased it optimize we've many years to

regarding second your question, On engagement.

a been great and think U.S. perspective as providers, these be flows, the as maybe payers long. because that's know customers. really XX,XXX others. changing. of to think these at well very bring And payers, We agencies, has between I I it historically, being And business to the our benefit I from think, epicenter fortunate balance healthcare you it's and involved of could a extent There bodies industry up, our collaboration relationships across for stopped among the feel government all to of regulatory and so has lack data providers.

And with and these that on kind initiatives book members evolving the ones so looking our many including loyalty payer we've is retailing, and the engage and as that of leverage establish we they've for such ease with the doing can participants industries kind see have so, years. which built frankly patients financial done whether the solutions like of it's parlance, what provider they many shop, pay business that entities frankly services, in other to or side all the of including on others

gives these us many So be which engagement across very think constituencies, able great a needs to we a also fortunate market we opportunity. feel to serve

and exchange correct, towards I Fredrik, up the and comments think is make transaction sure follow just a historically, XXXX that as as this I that's we XXXX the going talked I to that about XX%. fourth quarter just day to have all the moving rate made think when on the think we complete? And Great. that or happen about McKesson, as want tax back that about you've with you

and the we positive tax behind simplifying point, the in biggest Yes. And partnerships. right that beneficiary probably for Obviously, very half profit the the across split exits having us coming of our is that terms a of us of rate. at earnings that end structure, that spin board is have now, through

purposes, rate short the we But about little around be the they this might rate of on at So XX% XXXX that XX% period tax move is the be fiscal and said we all we think for XX%. said tax XX% timing, year. Based what as We intents should a essentially stub forward. XXXX. current year as you end think of starting to should year fiscal is around

great. you. Okay, Thank

Lisa. Thanks,

question next Manav with from Barclays. comes our And Patnaik

proceed. may You

is Leonard This for on Ryan Manav.

the I moving if I Just sure XXXX. into that. curious wasn't on pieces got

you million to that in $XX new to client sourcing, to plans currently they're that contract sales have Or order that in requires offset the in RCM that? offset? So

taxes about we're and be that that And that That that. now I to the end earlier business. why Neil's offset rate growth see about that to zero I absolutely, also right bookings that the at point help which to us in is for gave we No growth think in X%. a significant of expecting the amount we're will fact

our X% we next have expect in still line with even year. next headwind and to why that to we grow comfortable is very also though X% So still year, feel we growth that we segment top

framework you've the And you to upside? X% one Thanks. How this data that your of incorporate penetration we comments it. know like kind mean, of is that out, I think data. increases this in mentioned seems of about more Got longer X% long-term laid some should utilizing there you term? kind of new exchanges or does and that ways

how we've overall talked of above factor to previously, rate we in parts have are that do guidance. about our well as think Ryan we confidence growing in the I our and business growth our we targeted develop Yes, that

does growth our at this of being also of across have our capital, unique these terms as leverage we'll overtime think ones the we've areas been I position growth deploy continue accretive that and to scale we of we're really areas deployed revenue healthcare. where epicenter are as sort to that both capital and enhance can U.S. so rate company, that are in our well continue in, and margin overall the accretive our

you. Thank

from question Jailendra Credit And Singh with comes next Suisse. our

You may proceed.

your your first market? Maybe My you about growth of business. the is what imaging around talk that gaining think kind marketplace. company comments up question in following around on in lot. we a Thanks had the with business? last quarter. your that resonating should nice market Or return to wins some share Are enterprise The about how

them time And to perspective, or health is like, also for systems you that disruptive area? in can switch how vendors some spend from easy

costs. great investment IT really as from a imaging. a the as reminder, the comments about first excited enterprise very doing industry's this it burden benefits we're previously, on capital background, enterprise you probably our the reducing And from operational really cloud-native both That's time and SaaS And solution the just is their Yes. could in what question. as we're and this tell well

and it for And easier about engagement. improved provides access, that allows provides the also migration, per your and data, point distribution of images patient and to caregivers collaborate

as going. meet where for as point aligns imaging really CIOs it is the does the it So pain well of hospital

And about additional is over have when think industries years, can and of function this step improvement that something how growth. evolved sort the you power

of benefit we've from from native expect images service, cloud in previous advances massive the old thing just of with be the about volume that migration vendors remarks ask six migrated big the other process that on-premise, from we have new these of when migration services, made and calendar to mentioned, we first as cloud months to that that architecture optimizing you are migration my solutions this the year infrastructures. in the indicative I frankly the The established this

So in very that leverage what doing able we're to to imaging. we're fortunate enterprise with be

made M&A? my mean, you talk Okay. level feel Corporate about I in over Miller last more up, mean, getting what Senior can and aggressive And at your on spend follow Ryan time you past comfortable leverage. around focus comfort of Development about guys you hire Maybe some I then do around forward? going his the as months, of new VP quarter. couple a

Yes.

to been We've point, like, around at of look deleveraging and we've because said We X. a here one. year set ton get is see we very out what a half number coming the a target IPO to deleverage the frankly don't that will clear base shareholder that to capital McKesson based exit environment as capital know the see a see the And well. based like looks what now it's like going the markets. have like of what the we a looks structure on what on course, fact look bit M&A little the of optimal dialogue there, have that we So about and really priority

the update recurring revenue because free of at leverage, a of year flow. heading next We'll probably to we we're fact that higher But later there. in market cash and journey. the operate So very high such level of that's a such terms we're as comfortable fiscal strong the have where

to continue but sense In terms where we along build makes probably the purchase of of that do M&A prioritization some add more make way we that specifically, sense it term can smaller, ourself, our the capabilities, of short will because for be lever. us to versus

be that forward, to going extended they also sure Healthcare of it is move become makes core economic bigger, and who to be but you is. into sense will making fits As it the Change

whatever just times, stated acquisitions it's very think our to So, make have most low that provides in partnerships, in as of started and disciplined. disciplined, I terms that to work risk and very that expect. many M&A, that the going would the to of put we're towards be is capital And past do that, as we we've sort of we sure that very returns

Great. Thanks a lot.

next with question from Piper And comes our Sean Sandler. Wieland

You may proceed.

you. morning. Good Thank

Protection net, this go-to-market thing the CCPA in your for with good And Consumer Act. to I the out wanted bad affecting regulatory you and California, a the market How or I is California landscape about respect positioning ask strategy? guess thing net here you? in So particularly privacy, do a data see to your data, around

state regulations. with of meaningfully efforts and infrastructure developed in CCPA all we not Well to have state since Sean, the as the may it's level sure new think the thing. specific engaging existing HIPAA. in laws new our procedures the don't any for further beyond I legislations for as state just is yes, understand the infrastructure we're make patient needs level at know. make the state it's mechanisms reality, HIPAA the question. that federal of order end we state change that's legislation up But number etcetera. the us, are to any Patient these too compliance all I the In of at I an first to guess, been expertise and that identity as data sure potentially a fortunately of complexity the with with say, with that really not you unintended way the consequences around as company. even sure to and need regulation involved existing we've both of federal given the of think But complicates and would so the laws dealing done make we operating I at advance regulatory of a sort many federal there's take level state federal well some There's we also, to special advantage inception in of CCPA. that how well such a in regulation great extraordinary a and obviously aspects federal of very and now, level

EBITDA? up Okay. do why Thanks that for impact a two loss RCM And million that. million what's got insourcing. follow guess, as impact, $XX And did One think the And I run the we is about on a client’s that insource? is, two, rate? $XX question. questions. on Two-part I or they

I the balance able having well things. to these is our handle Fredrik diversity Yes, to think of as the and mentioned, one be business of strengths

to ramifications continue our network that software, is you're integrated think, to correctly, services. we thinking access RCM of the and that one of variety our things I going about a use is this and financial our delivery the connectivity, network patient mentioned

So change, as different perspectives own develop our strategies. customers they needs, and their have strategic as their

an of think, the of how us meet I continue important a it's with those and handle relationships example and to have it, we to allows customers, strategic our its and business balance objectives from perspective. our still financial diversity

Okay, you. thank

comes with question from America. next Michael Bank the Cherny of our And

proceed. may You

for morning the and taking thanks questions. Good

guidance. about the the versus bit X% across to worse there XXXX roughly seeing It's $XX anything So, Connected on million I to you outside just out to place more or absorbing changed loss -- the of hang X% little that total revenue I that it's loss, think fiscal want the X% sticking is business as that's hit a according that what's a that with keeping range beyond guess, to in you're or one better you're gotten customer with insourcing? and growth. Analytics

to what with the say do to which really well, payment solutions there's pleased in to we business look continues we're more at the probably the is solutions. positively very I of data the not the continue network, also business. pleased. each terms network seeing just that that but one fast-growing show be which continues If highlight, should If different of strength I core is I area would medical and across of very a business,

so, integrity But payment And business. by software within that. to very our a we're then continue business even see excited we

Our across there we're support great vibrancy. seeing the really decision business, board,

And this for we with know next we've think you that next the just what guidance, would over I last XXXX now say comfortable there, same to the we're thing year more say detail this, planning word gave today, that I and year we're going three the I seen a you've guidance, with out before comfortable do we the FY we as it do. quarters, decision, put holds used We gone So little it very process. extremely would guidance. true through wouldn't bit have

from doubt expect color, live more to on, purposeful is up we very specifically to talked to repositioning we're areas growth, for services, imaging, And which a is just perspective journey but we and that continue we journey very that about strategic with and and no the you the to to connected. bit the guidance transform our of then we're RCM we provided, quarter the give every and a assessments comfortable there each very

to of we to is things again, of we business, longer we do three get those and once in that. how know in do do term, that the we communicate core four six ahead growth than target the market. we right, really innovate should to If better interim the want But to terms ourselves continue an and

how expected separate dead of you on had the out. guidance shook to Was Fredrik. in terms specifically question, terms XXX gave came not out there numbers any conversion any revenue you middle. you in impacts in guidance, guidance? had relative when XXX that your XXX, on XXX XXX terms talking that on the for the about solutions I expected technical then one side, smack Thanks quarter, in of the needed just where of your of what Not impact you in shook that XQ conversion. quick a and And

we did now. more see That about we to has spill highlight XXX anticipated over do Yes, we implementations $X million. we make question. than understand that into I going that quarter and the renewals sure We the impact and had had with

Our impact that best year the about negative a million will estimate for we have for XXX. $X

portfolio. impact quarter If portfolio, back But more would and than our in the out XXX you strip you the the pretty there of it minuses expect. strength always our diversity as was But It the I of pluses the the some was were XXX that think quarter. anything goes else to consistent. impacted overall that

the high basically, end the change. unexpected that guidance. of almost So Absent XXX

Yes, much right. that's pretty

Fredrik. thanks Awesome,

And SBV with your Grosslight next comes question Leerink. from Daniel

You may proceed.

on your rules how at you how the new out any watered-down privacy read Hi level. if proposed some concerns. to guys. around coming love rule the D.C. your get or constituents shake very of There's Thanks lot been in situation for more powerful federal a Sean's, against a HHS, and but on rule to it's new or out and would to noise think taking the the interoperability on business? the going question question. there The is I'd impact rules similar

Yes. a No, question. it's great

more As question federal bit on side from Sean. California say, little a you the versus the

in Washington, continue of our others and our think in the discussions for look customers, that continuously NC is patients. in the with I with in at been one we've things regulators, to best what's including HHS perspective,

that U.S. hopefully, think healthcare. stakeholders perspective the impact that's -- in I really different everybody's

I large and vendors but forces, to worked continuing just those committees that HHS from with task to everybody EMR fact providers we collaboratively providers not claims software that payers, all the only major while etcetera, integrators, to and decades systems think participate you adjudication with including mentioned, that now the have on virtually for party, shape and of stakeholders, but providers, particularly really in only that others provide this. by not to of and more how consumers really is believe transparency be our or a could Washington sort is have trying ONC meaning third approach approached these we've or payers sort data to importantly utilized, regulations, I neutral

certainly continues is going expect, data up digital are there of more balanced end while the something anybody's benefit have with efficiency that of I dominate, think end the a healthcare, perspective U.S. work everybody and number and one the that concerned I of we'll day. to at together, can is as improving participants And that that's to we effectiveness

Got it. perspective. that then thanks on Thanks just for one -- And segment. for S&A the

to mentioned to around fiscal you X% You 'XX. that expect grow year X% in

those accuracy, the and specifically, You've risk through adjustment, looks fast core products of had decision or growth adjustment and S&A, profiles support product decision of the think continued of, those some Can to lines accuracy, of your just support. you and growing overall some dimensionalize are in help margin how rate risk payment strength relative with us payment like? products,

know you of software in Those have the integrity, there businesses would profile, is big one this margin accuracy we payment overall of obviously a with our say payment are software. that biggest businesses very business I part And margins. that attractive

X%, When feel Connected picture, it that, comes revenue to comfortable Analytics even the absolutely to headwind. with continued X% with

significantly going So if than you be strip more to that out, that. it's

keeping not in occur business has because here, we it every And just of so And there's you see period. individual as try business a lot get of to to changes that pieces from three to units, our reconciliation quarter-to-quarter. into the

high, least grow is that. Analytics one But and them our if say each I a very business, single-digits would at main components high in above look to main at that the that the I Software -- of at

the obviously of very connectors, kind and repositioning shift around of get So that. of growth them. communicating across through we we the a of will some highlight the attractive as more it's more these go all and we And assets through toward

these we holding some back growth the we'll, grow other more the things more and now, still be us we transparent fix the fixing focus the is And have our on of of these to. about are right need ones addressing that in are that reposition other of right sight things over to now, you see and line a Eventually, But of much clear well. we ones. highlight of rate. will But really face to time, some as

guys. Thanks, Understood.

Research. Eric with Nephron question from Percher Our next comes

proceed. may You

how the early element and that AI like are of improvement, to productivity drive elements flows get understand into QX P&L? that and on understand it some I and you Question expected you. automating it to AI Can initiatives. me automation in will exactly Thank into is margin productivity what of as sounds you're fiscal expansion year the through that and where come and help we XXXX.

Yes.

of let thinking you take bit I how the half Neil broader this automation. organizational A estimated think first we about that synergies But of optimization done about I had around the $XXX AI million years question synergies two it. done let can So synergies so me that we we're from and immediately. were little and transaction add a ago. was and the lot

now have we Healthcare, the functioning Change organization more additional synergies. like see we our opportunities As for

we Healthcare ERP example, two in -- for one drives we versus Change -- have and For before implemented system synergies. now that

one R&D IT would and of how our place that kind organization Second and now also terms legacy say Change versus our operating piece, with structure as is disciplined I in that before. in much resources Healthcare are targeted was we data-driven of more allocate

new to us our more opportunities. allocate efficiency capture And to rethink that this to how we resources drive and allows and really adding solutions faster-growing way resources

AI, efficiency. we're drive still, Neil. also net, in over So able is to to of this turn that, within saving, me but But the terms let it

automating our Eric, including service we thanks. process some more administrative of elements businesses, of when really particularly particularly from workflow, automation, it's our intelligent we business. across automation, the largely and standardized robotic think Yes, process about call workflow

that of of perform to software being the tools a technology, done and decrease than and we interacting tasks lot human processing with work, are tasks a just in faster frankly, cycle reliability time common there's the So can. manual with greater humans by it virtue even use by these often,

access, areas and utilization are services, claims, coding, patient our reimbursement. So charges like these

by what that's nine months, process From complicated processes AI taking analytics new participants an offerings continue it's be that around out we've really and think our understanding analytics ability to come embed really the perspective, into announcements data, these I and expertise because as the to data last with by So around we'll have don't and broad, is intelligent have deploying or really provided over and three do providing to they these exhibited to in other the workflow. the the unique possible not that assets the we automation.

our So would particularly support as the and I payment business. RCM been decision prevalent accuracy that's as and say area well

you that doing process color AI. some automation what gives intelligent on around hopefully So we're in

to of And contract toward? that. refocusing. nature staying I for on this client course that a I maintain you And there's the want likely of that the in sure you. make to Is going guess, I would you the to understand margin software and TES, service be element. type be move Is you're the then Thank the overall with departure. that second lower of service, relative and relationship part understand, to segment? And trying the they're than where of to are I

has their to the as of example to think, as when of first lot needs than our change, good this is with know, value I the long-term Well, with network And a them. our get innovate software, we I part back to you mean margins them of think our I which a generally client, continue segment segment. your to Services question, a continue as lower is provide frankly, well relationship

strategies again portfolio kind our change. their irrespective how customers serve grow continue think, I So a and us allows innovative of can of occasionally and of having having to them, really broad to balance that XX,XXX and with customers offerings

Thank you.

John our And Ransom from James. Raymond question with comes next

may You proceed.

at Hey. Thanks Good morning. end. the me in here for squeezing

imaging back questions two Just the to going there. business,

data will globally a how take? versus that just needs be of if migrated what's penetration migrated much cloud, been of kind So, First the all, today? question, to you long to look how

And workflow before then, the that we work? the once start with what how pack, AI overlay the from secondly, workflow? then for long before so into more implementing do into And AI would Thanks. an really the your does there's radiologist that some gets P&L And how that integrate the you image help. AI

with current have first bet. first as of even I XXXX. we just on on half this, the imaging to customers migrations, X.X million mentioned, the working think, comments with petabytes you data, migrate on calendar Sure, all, XX and studies, we Well this in of initial of I expect

transfers for to that that in In happens to DICOM-compliant means companies that of moved now investment variety really out I large it, that means years, won't get images migration kind the So optimize of gorp these I sorts one you have movement. cloud historically other quite five fact case, investing historically -- of vendors versus have been about figuring in mentioned I just cloud, by the optimize from while the as think the response were [ph] I right, in think ideas even to daunting, been of around all questions, the to how years now things very last, cloud-based to that these when very, overall a be the in the platform. imaging this two, benefits it from think three, fact of is the the what direction, moving to a the other technical

into now capabilities that's the imaging So, I of taking the these we've benefits think space. gotten one

AI, the where the we department. we workflow focus AI. to should solutions AI provide to I on that question improve Then about be your focus clear, second the and benefits imaging our on

our ability the We just the integrate months, the certainly areas potentially some very they make to of pertaining treatment and research promising. that out determinations have solutions literally of studies on six that the users you mentioned, come of to can clinical that in AI diagnosis have whatever around last for system the both and and some plans have would

access And effectiveness improve there's Congress to in coming up going use to how be about continue to reading. and fact, in of radiology testimony to AI

one And attractive And around already process reasons be been that. platform imaging. have of the AI-integrated of use continues that's to optimizing doing is frankly, customers. AI to the more this of far that we elements Our

to Do you we back question. any are migration in sense of going just initial phase have data? So, where the imaging globally my for

AI think around that about when last so being year asked cloud-native capabilities, around about that this just started since that I teams, the you capabilities. care think collaboration this I talking the Well is in really native or integrates early. platform you we've we're mean, care the industry's built about this migration capability, only both we've file, something these

these still overall becoming the increasingly in really cloud-based think So I think aligned but it's early with it architectures do confidence is stages, I the industry -- attractive, too.

So, this patient is all about care.

measured happen to So, it's pace. going at a

fascinated Right. of guys have the postage that And you you still just one mail have you follow-up. still I'm typically pass-through revenue. fact -- by kind and claims, know -- I

world them has them ago? to Just printing sticking in moved a the question, stamp Why mailing XXXX office? post and why in and still not been on claims years out a are electronic that the we through

around Yes. some of think mail perception to really Well it's claims. less you I have, correct just may maybe the

While down is printed the for comes Really, lot whether there it patients. health to of or circumstances. members communications, it claims, really around still are a low-volume plans very

frankly. been checks. EOBs. kind more growth the paper then of why to we're of in what our business The has the think turn we're is historically ability payments, seeing seeing that reason versus payments distribution means So And into electronic

the It's So where the wouldn't are is attachments we've areas, you help those as bit solution, decade done claims, these just just of industry electronic medical increased continue over some the frankly, quite a say, penetration really with because there over claims two. manually. done to things last attachment which, to as much so mentioned, in decade. [Indiscernible] other aspect do mailing take of to the applied We're this the or I these I as that past going with electronically still claims body industry claims

you So it's To got this, looking in at mail. physical enrollment point, we're still funny just mentioned annual in I'm our sitting mail, mail, doing the -- package that. I here the your

with your payer feel us give help that. to call free recommend and So a to to

Okay. so Thanks Appreciate. much.

RBC with Markets. next our And Capital from Sean comes question Dodge

proceed. may You

the morning. back time. more good XXXX one fiscal going to guide Thanks. Maybe Guys,

then of the a certainly mentioned departure. year, You've effort you got but and half the the far Fredrik, movement in the the offset back booking then this thus success is to

and of to the be start we versa? X% over that X% should vice to the about then expect how guess, the acceleration a of revenue kind Do I year slower cadence course an the or you growth thinking of year?

quarter views will of quarter. the impact second of and into of obviously Obviously, to that's of of terms impact software that think our historically We'll plans we'll that terms into some terms quarter of going half as most I it what million view a saying you earnings have earnings say. to as get it's the an better think to we we finalizing more in release. provide the to release. the get are the year rest get business here that, seen working splits should beyond the give goes have But that we path more of cadence. without and to I the in just business, through fourth you the in up $XX the the quarter, too early It you fourth network how

And cross-sell large Neil, you clients. remains opportunity Okay. that in then mentioned your the existing

is You Can to new existing sign sense able couple the of also last the current give footprint? coming a you about the new from from you've business things been What new signed your API through business of offering. the talked you outside outside proportion base us versus like over quarters?

the Well, it's partners been ability sales capability for the innovation, and now digital for and our buy And channel companies a with balance. focusing what really health example, and new to done I them API on a we've think over past. let's probably from, people the new thing of truly increase the us in this business single bought logos, haven't through see continued We'll coming our in time a from marketplace. net-net-net who percentage say, enterprise

Those tend lot earlier their frankly, in customers, to therefore, the With of entrants sell to a industry, just the smaller newer be because some development. we something people. of stage they're of and XX,XXX into

marketplace. API sales into up-sell So on these enterprise and the new as continue growth online customer through to into from distribution we've mechanisms well is capabilities cross-sell we benefit as there to our But improve highly the entrants develop base predominantly focusing like including these we'll opportunity still have. very we market, and to large efficient continued the think the new

you. That's great. Okay. Thank

from with SunTrust. Instructions] [Operator And next Sandy comes our question Draper

proceed. may You

talked and to a for little very Maybe question. about and just Neil, thanks it me the -- Thanks I'd bit We'll strategy. much out. sales enterprise to squeezing keep one you have in like

that's But an force, and you grow think where that of in changes? further lot helpful. about product great? Thanks. Do to need are update terms strategy, You've enterprise the sales you talked would a be sales when you innovation, products of adoption the that's how working about and the on but just

question. for Great, Thanks Yes. Sandy. the

I the strategy. pleased kind our frankly also continued of the having about we're in the with exhibited, bookings stuff, in think advances we're but as really in customers discussions

in discussed past. that's building the of experienced very it having and so leadership these an in sales from enterprise kinds started we having doing coming as large other been successful in previously, objective have So with having forces companies

and discussions. really we we've harbinger our supported customers really how one, I really having you with going relationship. a think, the by design, portfolio, to work that these and together started breadth down the of as are an sit And quality of to as two, And now enterprise-level over next me, have starting And years. to is three strategic whether

We're we're in you value. confident saying, parties add the sitting down of the Are can quality confident two your solutions. look, and

relationship understand been where pleased So we're at to caused very and have base level customers. receptivity in you strategic be take let's thinking business in people us who case have past. know to future. about the way with bring among the to optimize instead the those of But customer together how might that going it discussions are in not in as future, business And equally in to in level C-suite that I've comfortable whether really together been operating the we're to the our our that the

the pleased successfully. indications So moving that gets day, into that early and we're Fredrik translating at the with of that some end the as proven revenue growth the have out journey then we're growth mentioned, the but it has down all of in we sales

Appreciate Thanks. it.

next our Baird. from comes question with Gillmor Matthew And

You may proceed.

the Hey, thanks. buy-up Exchange. wanted I ERX to the ask light about and of McKesson

And long the in maybe exchange implications EBITDA the out you're So can buy-up? are you the looking some of can not? execute before is as what how XXXX? And that after included or then the remind you guidance ERX to transaction us --

Sure.

economically. intending is that said that's McKesson's certainly disclosed because we exercise we've And have once point X%, we exercise it ownership at have to that an option a contractual right option. to are below sense So the we some makes previously

that we what We shared And exercise the will we is. option. if have do number not so

organic the guidance. in growth purely it exercising that of is included that terms In include does guidance, we've our not option. It

based try out when it's once So to sure we on to able that again -- it things going to we within we're that because that something make is control. deliver set there, be and our

enough. Got you. it. Fair Thank

from comes question William Blair. next with Ryan our Daniels And

You may proceed.

Hey for thanks question. guys, the taking

a like high-deductible one pay. shop, well the expectations growth very in the well-positioned Just quick the it's plans. on consumerism consumer a increase and book and new It the product, in given as seems as

I on etcetera? Or So then I use multipart sold actually the bookings, that is has of and PMPM kind it's via engage actively And assume but of to two, number number the a market? the recurring ahead to guess, of it number the it practice? on platform launched priced searches number one, patients of model, patients who is

Sure, Ryan.

as working going Because It's partners be first right quite that So may working imaging imagine. we've we're as some to if scale. you has on our been something something the beta it and with time, we're all, industry, on offer it effort, at to of such have we for now. been needs to proven with operate

early is it So days.

weeks HIMS, next as you say you to in up coming that, few is so. more on as might which have we'll or imagine, think I So know at the

your flexible And other then exploring in to back this. value been in question. with they the see people. We've How best

the tied it time, more well pricing it. from are usage, to mechanism you think around getting that I that their the value customers latter over will will in so and our really it's -- be mentioned, be more customers

those sophistication it's own I days with players. been still is be given And So, particularly of larger customers, trying And in in this as We're market the in trying what discussions, in really but to their this area. our having doing they've what evolving. do flexible think, whole to cases, area. size some this they're early on,

Thank the for Okay. details. you

bet. You

from comes question next Deutsche our And George Bank. Hill with

may You proceed.

for brief. here. in I'll Thanks be guys. Hey squeezing me

from guys business technology a solutions perspective. think the risk-facing you As and about payer

space? the risk payers, that demand to volatility acute of as the guys care any Do the a it volatility your to related technology, HIF. see Given for little we of see domain bit relates you services in or

need either how And to mentioned. as Well. their improve efficiency. the engagement well Ryan's revenue good to one George. understanding their new like ways It's is continue continue are as with they we're payers The by But with cost, you thing question, all improve just gain to I hearing question, their these to to a reducing circumstances their think finding as members. they're per dealing

And be growth we've the of customers, the including seen our balance board. is our of offerings. of mentioned those Fredrik diversity to as demand of think, of again, I businesses, our the a advantage needs So think pretty payer take that it's and across steady the it I because

cost-effective challenges do continue quality. the cost And is in in of But improve access improve in is it they're do the everybody of more frankly how ever indexed but because an grappling really, of country. in not the the then, fact healthcare kind really core field these with, to which sheer we which only and payers basis

sort the that itch to given we continue of scratch. So

including that We demand, among continue see the payers. to

Thank That's you. helpful.

George. Thanks,

today's would remarks. call for over gentlemen, Crescenzo Neil closing now turn of to to, this de call. Ladies I Q&A concludes portion like and the our

Thank you very operator. much,

providers, and investors, we're strong purposeful quarter payers, every kind we every call, at and internal Healthcare, partners really customers, this this day XX,XXX stakeholder to had to as our again very in channel across have that growth, our are So providing we've of fuels pleased that team began the value our customers members healthcare XX,XXX over articulated the really on industry. that another to journey Change

So, of the continued continuing support investors. look And thanks dialogue for to the you. with forward everyone's company. Thank our we

today’s this participating. gentlemen, Thank for call. Ladies concludes conference and you

may You disconnect. now