Definitive Healthcare (DH) 9 Nov 212021 Q3 Earnings call transcript

Greetings. And welcome to the Definitive Healthcare Third Quarter 2021 Earnings Call. At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. pleasure your my from Brian now ICR. is to host, introduce Denyeau It you. Thank

You may begin.

thank joining you review And afternoon. Good for third XXXX Definitive us quarter financial results. Healthcare to today

Healthcare’s today Jason Booth, call Healthcare’s CFO. CEO; the Joining Definitive Krantz, Definitive and Founder are Rick and

Private related call, the statements our benefits our well healthcare and intelligence our Any this of the XXXX. limited of make industry clients, we on of provisions competitive made generally, Securities our statements, future anticipated COVID-XX the the impact healthcare and solutions, behaviors, statements investments guidance, will our forward-looking pandemic results planned including Litigation During business of market the Reform our to position, environment. operation, not and but as Harbor pursuant forward-looking as Act and to to are opportunities, macroeconomic financial the customer Safe growth commercial to our of

involve Risk undertakes call, differ forward-statements after those any events risks to a results reflect may statements. and materially Forward-looking of of or update conference the revise arise Actual obligation to that including except with company The section this filings as Factors by required forward-looking law. may uncertainties, number SEC. statements the no from in any discussed our

statement For our of website. that cautionary information, posted more please earnings Investor refer Relations portion included release to the in the we the have just

financial for that, call of Jason. during on refer to of Additionally, the With measures on profitability a website discuss the References release our conference this comparable an most the in call directly these Relations the like earnings will adjusted we non-GAAP reconciliation portion to GAAP to measures basis. tables measure. financial on our turn I’d call. over Investor EBITDA Please this

our company. earnings Thanks, Brian. complete welcome publicly-traded for were the which important company. third to We like to our thrilled quarter everyone to IPO is I an successful in milestone as Healthcare’s first call, a September, Definitive would

I our every of you Healthcare of make are have provider all accomplished do investors employees and On will Definitive to one as I competence to thank today’s beginning third the far, quarter. that are to am I success proud I provide on intelligence. to successful. strategy the healthcare of market by they everything to during be want of premier introduction we I delivering call, reviewing roadshow, vision day so IPO However, in start their didn’t as for customers the we and thank our our our our I know opportunity to all a every business, our have at our in commercial that just the of opportunity since we meet Then, the want our brief for targeting.

me Let financial of our quick a with start results. third quarter review

in standpoint, exceptional make to combination tremendous produce represents our million, time, free which growth, of we a a quarter, From our third financial Healthcare growth performance. of which visibility unique investment opportunity, characteristics Definitive deliver high amount continue into high and future that we the For a three the are to deliver the profitability adjusted unlevered cash of of million, $XX.X by EBITDA XX% which a $XX.X the year-over-year into At we as flow margin, profitability, of million. same revenue growth. continue as well XX% indicated $XX.X as total our translates

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as our with help networks important over and a for help importantly, finally, for coming Healthcare then about customers and therapeutic And business physicians therapeutics, customers nurses, and critical industry. identify hospital We engage stakes strengthen multi-billion to day, our we candidates are network talent we use also new is that and problem ways attractive and We understand helps them helping decisions issues the problems every affiliations, with make by customers the markets management. more in constantly even diagnostics by dollar strategy. their right And are acquisition including identifying existing This healthcare these the we how solve roles, executives. this sector. adjacencies physician technologies. time. These for Healthcare the for help solve. their customers Definitive to referral developing physicians high all Our innovate size understand They and business platform and most patterns new Definitive investments better them in our changing are up

we have and If you market, we disrupted at something how that look created highly unique have proprietary. is the

XXX has including advantages the and a insights one-off engagements. full entire integrated available us provide that nowhere to tell Our healthcare market platform view that opposed platform immediate productize long consulting many of customers insights, deep unique modern expensive a expertise, our to else, our as comprehensive degree

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we base. expand within to continue will existing Second, our client

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modules these opportunity leaving existing In grow sell that we a can will customer have a fact, today typical over relationships. to XX and by expand substantial we new to two, customers just and

Third, we will continue to innovate.

innovation this data quickly off new we fact, leverage markets This will our intelligence or new which and our share additional insights and will to more In more expand already customers of our increase it hub continue innovation portfolio, are able to as functions to provides accelerate to within customers. proprietary create wallet new with of product we have. expand existing to opportunities in

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to leading the example, us healthcare deal significant potential capital and help world’s a signed the space. of venture the for firms in For investments them evaluate one market size with

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working their in QX. systems success. team construction their to to of in signed might to HospitalView infrastructure Healthcare of hard leverage customers need some deliver commercial want QX improvements. in demand. partnership Definitive These customer facilities innovations companies also that our product new I these hospital we to thank all response congratulate We had for continues on product the and growing our other on identify just are or many two sign deals to

physicians product understand allows include Some management based target Users the on who made hospital’s easily departments identify intelligence focus. around different these physician of sub-departments searching healthcare the of of their the Monocl many precisely innovations which product recent include claims leverage of we to his be or new based the now to PhysicianView providers users specialties, data areas expansion our an layers out and index product product to to clients can specific product industry people specialty better identify make strategies enhancements we scientific which the to and audience. clinical intelligence may service. exactly enables map and to In quarter, sharpen line, to include more organization expanded In means of right for This charts. sales keywords new their those our individual publications, their medical expert new grants picture HospitalView in to companies expert identify to trials, around to with profiles, -- additions accurately, right development. These assist it including the for professionals payments. to easier adding even affairs and clinical significant can a feature also our medical

turn made has longtime of the minds Booth, healthcare this served he immediately industry. that The President. most Company, joined want call highlight recent Rick Definitive important executive announcement thrilled recently earlier the as the as joined over were I year, Having of team the leadership OptumInsight. as I to Robert a Board Board the take moment Healthcare’s We Healthcare’s of of to CFO, in when Directors Musslewhite Definitive CEO to Before is Advisory where the Robert company. to Robert one and our CEO a brightest our contributions

is finance Financial accomplished market to her at Definitive role. of the and Kathleen on to he also size an our As MSCI a Directors. Robert most take the Kathleen recently to opportunity experience Officer welcome Her will as growing to executive, of more of about wanted experience fast Chief ADP, as like our ADP. I’d well serving Board. the learn and Board as Winters Healthcare appreciated operations prior the our invaluable vision, and at hands be

are all it. to individuals group all creative, hard I Definitive that generating dedicated over our a we solve a combination an Kathleen deliver have will multiple the and attractive valuable issues her through our facing is excellent and To to our benefit foreseeable from to Healthcare. I’d thrilled wrap created and Booth business. are and customers I’d and most delivered are the individuals of to call up, these to increasingly energetic take inclusion long-term recognize of for am walk areas. the high and who it and Rick We like thank is of well-positioned some It their turn quarter amazing decisiveness honesty, third to healthcare leads the individuals future, to across Customers in every talented strong day have Definitive know We the employees and the results as believe value Board culture growth, numbers. moment and of that for working expertise to ability have Rick? us success of significant joined challenging collaboration to we we this these that and momentum predictability that we parts unique it Healthcare and to business. of continue our prospects shareholders. to help profitability is like the confident now reflect transform

basis, non-GAAP the finishing my year on quarter will the third Since all review be I strong detailed with from for today overview brief with results otherwise a discussing rapid company. highlighted our Jason. is before then was I noted. earnings call models growth a and perspective, of therefore strong our unless full revenue financial a quarter, a a our quarter Thanks, remarks, start QX our In results, by and of provide profitability. XXXX. will a our public as business first fourth outlook

best vertical It’s margins, very total the many in into penetration. And me to cash due gross business and addressable $XX development efficient business our flows finally, low with the billion profitably CapEx single-digit to value. high model, product efficiently growth customer subscription software profits operate and of demonstrates business, requirements to selling translate attributes and We into a high engines. us Definitive our help our Turning upfront a acquisition model. market and billings shareholder market

from entirely almost platform. our comes revenue Our to subscriptions

an results and our usage, have rates. excellent annual finally, looking contracts cash net billings flows. basis, through advance forward which commonly retention And multiyear of in are strong predominantly dollar on We visibility high in very most

We multi-tenant our go-to-market to LTV evidenced is model high as engine high our platform. ratio. very an gross CAC due product have finally, delivers efficient, to The of development efficiently margins innovation. ongoing stream by very our And

quarterly free QX results, traditional XX-month basis our plays unlevered margin equals adjusted results XX revenue plus XXXX, include margin, growth to unlevered to revenue a XX-month model EBITDA this of out business growth on the flow Rule relative free QX Highlights trailing illustrate XX% practice. flow and compared the XX. in quarter how Turning of XX% Rule or XX% to of cash cash trailing XX%

Monocl. and of customers, customers in to points quarter Enterprise We customers basis rate growth of growth our you X,XXX detail. The XX% rate ended from in up strong the revenue. recurring the momentum. our with the go-to-market more reflects enterprise of Revenue driven have $XX.X in X,XXX long-term quarter efforts. increase was now from benefit XXX by without XXX,XXX up XXXX. key annual QX a focus third an growth results XXX of define growth our XXX for was smaller Turning was are over with of The sales October Monocl This million, year-over-year. customers organic in ARR we include When targeted customers, was as XXXX. XX% year. revenue prior of the above our This even acquisition from majority

our customer pleased we revenue particular across base enterprise the are entire We consistent strong are growth and in from our with realizing customers.

XXXX. did the from in add to platform, our to within million, we from the over over share a well prescription innovate sciences we Gross these will reflect opportunity Sales million, offerings XX% opportunity get continue was We of XXXX, as upsell QX $XX.X as margin to expect and within time. of time overall their opportunities from due investments from claims our $XX.X to multiple cohort strong profit to XX% have Gross life to was QX represents recent and up investments expand XX% retention rates as value our increase Prescription down up QX revenue information. data our customers the was expect with medical and for us we XX% significant and XXXX. data. claims marketing expand leverage expense this

sales in from in of team our percentage invest continue customer a targeted were as strong we revenue XXXX, sales capabilities, up revenue, marketing to digital efficient success QX marketing XX%, XX% expenses As of and function. insight and

very stages efficient and proven times evidenced we our motion, early CAC go-to-market $XX billion growth in XX a as in market. by ratio to have this We of and LTV are the

up committed development are our XXXX. QX generation building was demand out steadily sales from Product expense We to XX% million, capabilities. $X.X

As a of QX XX% percentage of revenue, revenue, product development XXXX. in expenses X% to compared were

value datasets very leverage products ability expand to us delivers our efficiently of to launch enhance enables the customers. Our existing for or multiple platform to

an list million, G&A and continue our on innovation have roadmap in and XXX% development. invest extensive enhancements $X.X plan underway product we XXXX. We from product to QX was up expense to of

XXXX. company reflected we revenue, million, the public from versus a G&A X% from to public of XXXX. X% these time, costs, costs and G&A from period that down quarter in was into expense will generate percentage as was we operating a grow third leverage up G&A over we full operating quarter QX incremental fixed income quarter. had the XX% expense reflect will As Operating of $XX.X company, expenses related quarter in as partial revenue of this a QX but fourth operating

of was income The operating year-over-year XX% to is revenue, to percentage in XX% investments. XXXX. related margin a in As change key QX compared revenue, of four

was acquisition growth data, drive and which marketing; short-term sold; in to a and the of reflected that as Monocl, of the margins. QX reflected million but bps EBITDA outstanding. help down XX% average are cost required shares and on drag XXXX. second, was in prescription on from QX strategically share will Net increased in XXX.X million, or due was noted has investments public of compared margin a investments to EBITDA weighted in per company to profitability, above. EBITDA income $XX.X based long-term $XX.X in XXXX, in First, $X.XX million continued are goods XX% finally, QX diluted operate $X.X which the costs sales G&A; approximately investments million and X,XXX in third,

Turning use proceeds, balance our of and with cash quarter of with provided to $XXX we sheet to of our $XXX bank cash sheet flow, which and our IPO million the balance strengthen million debt We lower net $XXX ended and cost financing. replace million debt. our

substantial Our of times $XX a asset. QX as is in debt, We from strategic times strong view net X.X X.X million which net this IPO. reduction before leverage, balance resulting in the a sheet

have flow and comfortable generation. this trend margins, that cash substantial at that leverage expect and flow levels, to low free to or end been we provide well needs. and very requirements invoicing M&A operating additional QX capacity of CapEx Historically, other are we in upfront timing QX cash We has continue. current for knowing year due Definitive’s high strongest billing the

from cash result, view trailing into a a provides Operating up ago. $XX.X basis, business. year generating were million consistently a a in the period the XX-month $XX.X the on strong in comparable million cash As capabilities flows believe we XX-month cash flows on best looking at basis trailing

flow operating cash of of in In debt. use due operating $X.X prior our off a quarterly to of million prior the one-time to and of normal interest collection source was the renewals QX, with million point $X.X to Looking cash cash paying in payment $X.X QX at traditionally standalone million low flow seasonality accrued QX a and year due cash associated on year-end our a timing basis, is

benefit flow will $XX.X a cash. with we free lower free of improved from forward, effectively were trailing EBITDA XX-month XX% adjusted facility. unlevered into XXX% the flow both associated million unlevered rates margin was and the converting basis, balances cash new cash Going bank debt our On

reflected of at QX free margin unlevered free $XX.X flow flow standalone cash XX% at the to unlevered cash Looking above. million seasonality basis, a discussed due of

and are the very Cash to XXXX to in taxes term. expected rates than Definitive and profile. any capital below Definitive’s short low to a Turning efficient new a bottoms tax excludes forma based expected M&A structure, be our where structure. operating Guidance less guidance. in are tax is rates model XX%. be the in has management to are to operational remain our Even metric-driven XXX,XXX long up carries Pro to in term. medium changes Guidance over tax philosophy and expected on

revenue. guide will today will over call. quarter fourth general, and in performed extent update the In XXXX QX to XXXX we We we and the next our year full on

this We with growth profitability, to than will although from vary to that guidance, seek to specific will reinvest turn quarter beginning incremental upside and opportunities rather the maximizing fourth I will short-term quarter. now quarter.

period. $X growth income income $XX.X $XX revenue In first EBITDA we quarter the of ago and expect net total reminder, the between QX, and a non-GAAP non-GAAP As the with be million, to we million adjusted of Monocl in acquired Monocl to $XX.X in year at of October XXXX million, from so will $XX.X $XX QX million. rate XX%, to operations for medium $XX.X $X

We expect we to EBITDA $XX days we This $X.XX $XX weighted $XXX total $XX million diluted per million, of share on $XX of revenue $XX Non-GAAP adjusted million. year XXXX average for means $X.XX full are of shares outstanding. income to $XXX to $XXX.X between to shares $XX from In $X.XX million summarize, to to of operations diluted share weighted income outstanding, and opportunity. the and net penetrating non-GAAP a in earnings early average to conclusion, million large of are and market be diluted million, $X.XX attractive $XXX.X per the

with can open on and we I to value highly forward believe on and progress. look for create shareholder executing with And the to a revenue profitable over growth you our come. plans durable We have we a time questions. predictable time to call efficiency clear plan updating long capital horizon will that, multiyear for this combined

first Our question Morgan. to come JP Instructions] Auty [Operator with today going is from Sterling

Yes. guys. Thanks. Hi

added versus seats characterize in quarter growth wonder came actually more if of more from new you upselling you actually for us customers? modules I how the your existing and either the the and that So much could customers

great a question, It’s Sterling.

contributions strong have growth We both. from

things the great about revenue. a model, impact our is predictable on however, the reported in given bookings of One any marginal period business have the only that

So really over the you to those bigger. get as also customers of are relationships seeing time, expansion larger you strong then existing each revenue in and ACV see from

two really biggest the at revenue target. our as are growth what XX% our we drive of So biggest, overall overall and the combined aim

in across examples quarter won within you you centers gave other All I of out experience in base? one maybe a the buying of expanding you your within those follow up. all number customers So industries? within Great. centers expanding types that industries. what you wondering companies right. are in in Are then was because of of different And terms am those words, buying the an into of expanding

Thanks for Appreciate are. the We it. question.

we growing for sell industry cases, as markets innovated XXX,XXX IT, to in is and within then we that and really for that into medical expanding many we our end really and but is but only that’s three into ago, a that clients them know, think sell example, segments we to a four under intelligence. great we biopharma, are key were into, the realize a So, have as they specific that where In providers well. providers about market healthcare selling that you important sciences group devices, that that now us, have diversified expand continue the to sell didn’t like they whole are we market companies of for we we falls all not healthcare total we healthcare sell need to sell companies life years as industries

years for three, medical commercial. affairs sold and sell So in we we access, whereas in ago, mostly four increasingly market the example, biopharma into

is business innovate So that for within us solve continue to our absolutely and more to clients for and our our and problems expand that clients. the to markets continues deeply sell penetrate existing essential we into ability

guys. sense. makes That Thank you,

Hettenbach our with comes And question Morgan from Stanley. next Craig

in terms in the of get you. on some market sales on you you I like that your touch more deeper just as follow commentary to Can how the Thank space. about and Yes. might approach just that providers? momentum Jason, in up of providers change healthcare a into recent wanted healthcare

so different for really we healthcare us it’s providers. are overall, a solving important It’s and for market Yes. problems multiple growing

are And then all them. their think facility might about for do they problem really are for the into them. IDN well as system networks, competitive finally, out patients them and an high-stakes strategic their where is and is as system, physician management and them we just as they which to success helping having keep figure be new patients they so So build incredibly and attract are important within major able where benchmarking fantastic how health referral helping problems they

couple So are see of going what to things. a we is

investing We to continue will needs new product invest sales existing is utilizing the their marketing the we in meet attack to will of to that then, be are going that new that ways invest And to meet so market. and in particular continuing very specific in space we of needs think data to go important. our resources

year and next the deepen relatively to relationships going grow over our within So that market. quickly continue expand provider group to as the we is

Got of or new can for the of tuck-ins, it. modules touch the as the then you rollout perhaps in as two goal to context on pace organic for the modules follow-up, development a you. really one Thank pipeline of kind of well annually? just And just kind as

Yes.

of is that complement So when we and I a it then appreciate is arise. will it. organic combination important with opportunities right and Innovation the inorganic incredibly really

year the side, organic targeting next all that key we market out into. modules year. similar parts the I will we of each a On of mean, sell roll couple that be

within So have we coming sciences. life modules out

we that well. and market within new logos to that creating important mentioned, more be opportunities car and also ACV within raise and expanding also segment on upsell within As as opportunities I provider will

continue planned set years able to else. doesn’t that that of will is and what previous as So in and as because anywhere this proprietary we we exist have built are see intelligence

innovation data extremely candidates, quickly at is are and able very clients, We so are and exciting able organic We new and to different time. techniques reuse problems the a information business solve to important new very are looking all inorganically, we for innovate -- science apply our to

science we making a acquiring disciplined push force with proprietary so is datasets. we provide capability can better and into clients existing so the in just existing know, better, also those instantly existing accelerating platform we new that very data our are for our are and And company our or the that Monocl make to link are that existing we existing We dataset clients. so have approach, a commercial and bought that sell platform that and our to their already companies can already product synergies, We data October have to of into that two that. their great our through take we aggressively growth our and you example then as back and company sales by new in more achieved looking that

Thank you.

And Saket our next from Barclays. with Kalia comes question

maybe Hey, on guys. talk question for you about public feel congrats ones right particularly are modules. for business taking upside which to my now and what for like most Jason, maybe Great. that for here Can feel company. the last conversely, you, that and just have the adoption? on on maybe in questions we tacking modules becoming you important Thanks you a first like room the just Okay. are maybe

healthcare our Sure. Thanks. over changing they is understand Healthcare ecosystem question. more to need time, to fragmented more and the that really Appreciate important is means clients. incredibly of the entire becoming which

as more that’s clients. great we So existing more think sell we penetrate deeply clients can for about ways us where our existing news into

X.X two over new just of buy modules. logo today about will our So,

We have sell. XX to

different sell but key the particular sell including a types, So room lot claims market the to is data want of excitement hospitals, to multiple existing increasingly of continue groups and important physician to important. Areas of our as part facility there’s Monocl The to majority companies Physicians more is are clients. obviously is of then to a our vast becoming clients. well.

insatiable So, expand science the have are sciences big ways can insights these that solving in we that type are the number use the for provide. that we for an we data appetite of that cases life almost companies can of

investing be heavily will experts In we And which data, XX a So, the we added in Asian data. important Monocl, million new just that globe. is addition. across ways now we to really cover utilize

happening innovation different adoption. So, great will across drive products a the deeper all that of lot

for That’s you. for follow-up my great. maybe Rick, it. Got

us on but business, economically the on is here a enterprise touched just couple you touch enterprise that and just from Does customer You is statistics sort roughly for how different the of how about maybe customers of Definitive. make base remind business just broader that big here sense? the could cohort of

growth. customers a engine the powers great really XXX strong they generate are it’s Those more dollar and rates. half enterprise of have our that customers and net recurring than question. retention Those annual Absolutely our revenue very

IPO with terms and seven we as the earlier As revenue of existing sales you of enterprise focus have in in figures well part customers. our may recall on the long process, expand customers are efforts that into way to are discussions of from customers, we some of marketing our a our majority so and

you Very helpful, guys. Thank

Our comes Sachs. with next question Kash Goldman Rangan from

in healthcare the the What have that curious million Hi, chain Jason I read to you good causing to that somewhere headlines. and rising much. pandemic, already that potentially address workers quite hospital Definitive resigned issues you reading get do we Thank in addition these the There have are supply shortage the are costs but that issues so at? to industry and near-term you of some Rick. perspective Congratulations. I systems. also X.X on labor can things your at things to am your everything is then since have

lives, Thanks. that are challenges quality construction market improving so companies or and for whether what costs to more this and creates and ways transforming with companies growing the to working this them problems, invest entire it solve more it ecosystem to help their is the how industry would an try complexity for to are does looking Those share I are healthcare. be affect efficient companies the healthcare, industry that. for They is new in are that those and driving understand changes are IT, continuing our frankly new to and try importance. to deliver new we therapeutics that that so save understand appreciate might down

a So is example great telemedicine.

quickly telemedicine year, try came our to telemedicine is are adopting So their that how and and care. to customers to the clients understand hit most COVID how when change providing exploded going that last -- who way the to is us

we future. had science So most the that showed telemedicine our data one we to propensity of piece up that in to adopting is our use come team and who with and clients who the score telemedicine analyze data likely and is in already information,

put labor help for that happen can clients order solve that ways might resources help problems. shortages innovation in example so where their we that to can in that those type can they -- of identify So it’s our to

so And thank you much.

As so to your hire of How ongoing with that is a to well? you inflation support to part Thank for employees ability be follow-up, your seems as own which how about the to much. and your you the competitive to aspirations? over own fight growth labor wage do plan demand market, how the

and right we that culture we have our done very all within attrition What employee the provide. is tended low base to very the -- It market have about always we now. reason have a competitive is really

be solving interesting and all of is of come they company culture and than that collaboration be employees us to they part healthcare about something and going for are just to our part work impact. our they want actually bigger -- something to to that So problems change, because have want difficult the an

have giving community. also the back to culture of a We

So Definitive we program have we opportunities carries employees. our our provide volunteer where for

row. five year in that have We we and results, and know it’s had every at have of great it been years participation best way a had in get to employees for roles other these we just have to leadership XXX% a all single place employees that and work take to

work in number are one We to we one again in Massachusetts to are number going XXXX. all Hopefully, be this the place year.

you it you like you to a try We at best to the develop are as and very awaiting Company gives the our culture that, find But can a work results. competitive edge real if brightest

Rick. Thanks, Wonderful.

Credit next with Our from Singh comes Jailendra Suisse. question

congrats just Hi. let as the how This today. for quarter. on How is modules that your other of of be traction for base? compare early some you question taking you within project the with me Adam and my even an talk prescription the your on to may big some customer just and can existing claims the Jailendra of have about opportunity data? far pricing seen Thanks Can

for never been is When different important about opportunity the what have different whole a done a for this all creating Sure. of Thanks you solved to I question. the platform company problems in will as where take to together have that us. RX that. is all combine comes a really power before. solve we ways data

healthcare as which the we the a has claims it think just proprietary in last we as view be entire XX XXXX and we tremendous claims. our of years have medical large RX success. We could medical been ecosystem. claims So developed then, XXXX, added And on over in layered

of Like had clients have they So other been when we good just that we we have they are feeds now said problems really before RX adoption to I Rx claims claims. allowing combine pulled already date. to stuff raw you of haven’t able get when solve the to together, solve

data are information -- creates and has where new utilized been just it that innovation science we are with before technologies this So flywheel the moat we that about on top new are building we this and apply you very and create deepens -- that, excited not of continue that on really kind we of that of building new have.

an opportunity. So big important piece it’s for it’s a us,

about take the of the achieve first half top we we that but are the and over in where coming are years. to we it, think excited going inning I can

very continue lead guess on seeing characterize mix of I interest and helpful. a as Thank would levels the you platform, recently? as you modules of Maybe of Great. in expand the to uptake number you. That’s customers follow-up, the on-board new or are any you how generation inbound the

Good question.

XXX,XXX typically and to them we been have marketing, year very so beginning, last come so figuring have focused, So the into us. are these do companies heavily been invested the but we organization a we in how outbound and since sales-driven go out find we have

year. growth So we wells have over significant the last seen inbound in two

to We in are and excited being a opportunity We We company in just think continues that. is increase about further. a of up drive helpful even very that that the our amount tremendous brand -- to think public there’s public market.

We us. are white leadership bring through thought a people of to lot papers now blogs right to and driving

excited have inbound done we we about standpoint where future. the So can further an in are growth drive potentially we and from what

Great. Thank you.

question comes Bank. George Hill Deutsche from next Our with

big and call Jason, Good it. you we the about having modules and as show the evening, with XX to Rick, two. having just welcome the company average talked Jason company over

vendor not a number for that assume customer that have but modules, that. or are what’s new second going recognizing isn’t to average to anything introduce the we to flooring Let’s the right the like by for like going Michael

more of just think So you north from mature number, grow about XXX, right customer penetration? what’s a as the way to

and varies it good are really a that It’s we depending selling on question into. segment the

example, the So within sciences really we next offer. everything and in they several to interested I our certain over years, life that have segments for segments, which providers, are most say important would of two are

to is each them. this of all important data of So

the As that company, you get diversified five are for flooring IT clients us. or of which like outside some a into firms fantastic maybe of market

sell all going necessarily said facility typically groups to and think want as are to but time and company, modules different physician that want surgery they in with to facilities. doesn’t Monacl our of nursing type two-third they you types I speaking of probably fit centers over skilled

So against fragment customer the expand is -- to base. as there the absolutely deeply across healthcare opportunity to continues of the entirety

you about had to that kind kind follow-up, guess, M&A scarcity quick of of you environment valuation, a the if have And can sell a have with pretty good chase competitive at talk equity kind guys looking the people or you they impact, value that are attractive Okay. seen to I fortunate whether created? have debut you the either I could guys environment of, you the

incredibly when guess XX I last the Yes. unique. about the what I over mean have done we think is competitive you environment, years

link claim this a our it We new we and have and applied we it incredible iteration then and pulled have and science of create working And to calls very, takes customers. It with recreate. sources, and difficult information to takes together. together it year, thousands very information is information of to it data have XXX,XXX from made that phone hundreds takes time

a more we B have M&A flexibility public think impact gives seen competitive as any on standpoint I from new think course about So opportunities. don’t us we that. of

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for to opportunities. continue and look great we it So will focus on

Very helpful. you. Thank Great.

with Our next Canaccord. comes question Hynes DJ from

percent the what start is spend think looks any like the top just the Hi, time a look could on taking to am in you the way the Jason do with and customer. customer decile Rick. for look a trying you the what to of like opportunity Jason, terms Thanks and like Congrats here. over like feel there about of good question, mix customer average I ultimately in what get for a maybe versus then sense base might like? top-decile

Yes.

it. -- I mean varies look just about by little a think at you As bit you as segment,

mid-six you clients, into firms we customers multi-million we have over if So dollar within six to sciences, have at of figures. clients be life technology we $X figure clients already so look the these million overall, within well type expect well multiples top decile

push. across kind expand amount how entire continue really our room more modules to is want We for sell about to it. there So of that’s But and we us think of grow tremendous a and to base.

focused to continue growth and We the will continue their as average time saw on by needs over Rick with had of as penetration year enterprise deeper innovating clients more and up products. innovate by we that before existing that mentioned and last tremendous over drive in our are we very to meet ACV

Yes.

latter, extent upside a from should you. public the new the out to I Rick think bottom model markets, beat playing bit for about about have And mean you reinvest we some that spend? mean to that for areas of it’s and flagged how guys assuming about incremental saw line in that you little should the you to follow-up upside the maybe and talk can to expect a continue we you still or are QX, just flow to if the like the we talk Okay. hereon? just potential I we

you question, great it. It’s asking a for Thank DJ.

in the Our we very And we philosophy business. of upside a and overall we have reinvest how and learn is test profitability to do growth are continued that the in philosophy. measured

So begin long-term drive will in see all today and to to turning lever primarily to continue you in extent that marketing the that profitability sales important the and growth. upside product

a So very in revenue predictable single should we are not on given focused model. -- we are not visibility, of optimizing any terms profitability. we quarter our But be

Yes. you, sense. That makes guys. Thank

question next Brian Peterson with Raymond from comes James. Our

the and a on Hi, gentlemen. taking for congrats start. question strong Thanks

on years. pretty Any just of the modules but new color of was build of curious you to me so organically it innovation on M&A. you today, and that? about philosophy the both seen modules XX So, out through from one the have it have Rick, couple on cadence, investment question clear think the kind next cadence over you

Yes. roll we will we a average innovate in On out ways. couple two -- different

those some the over The over price. that’s modules that we of roll packaging per will first been in an two of through new or pretty additional out the sell can average, business. we is way our to through course and steady -- year course the one of On

more features mentioned just We of that that able up that we that throughout in I we before, but important dozens the benefit maybe second and and new of new for had where our example a that significantly platform. way velocity new the are year, new deals. telemedicine great analytics and or equally adding score charging we which to is propensity constantly algorithms science are not of new data ways. drive to we innovations on a bringing innovate, few is are other The is The we

able to are price to a We new charge higher logos.

each into renew with new significant So logos renew that of deals we a have able multiyear higher And as but seen a built we then, to able escalators result them. renew price not into innovation. at we in year clients, rate, we only to are ACV when growth are

which on business. all the that continuing every innovation, has month our is are happening, long-term single product we as to substantial improve benefits So of

Great. Thanks.

David comes question next Our from with Stifel. Grossman

already you. just quick that questions been have to Thank follow-ups I asked. couple have a some of

to to First, maybe levels levels. healthcare continue you speak migrate utilization could activity to as the rates normalized more

in acceleration coming markets, end selling correspond are will of of -- end normal any and back that the markets? into efforts to of healthcare vendors you the more and you their to the kind selling if and would back space seeing normal kind activity to kind Our -- or

is a we a market. giant think little a are I I bit healthcare market, trillion $X that. seeing of mean

population how out continues So in other think always our all the with of always healthcare aggressive to out of market. grow there that the they -- aging coming that clients other Obviously, this market. incredibly new they within I figure ways can is grow happening have to been within new along as tailwinds entrants figuring market that are it to all well and can into grow with lots and as this means

can in anything that? that market a I trying it’s and we help not increase them are our aggressive significant note, data have year this succeed. seen but So, people sure of in am to an particular succeed

it. the sequentially? how quarter, the greater then know at end end Got to perhaps provided have Do third the than that just just for quarter the second of I quarter. trend accounts you and of And see information first that $XXX,XXX the number you of

sitting I here don’t have in of front that me.

you give Let Rick, why me it? don’t see.

XXX we were End XXX. at we end of QX, the of were and QX, at

All right. Great. Thanks much. very

you. Thank

There the over closing Krantz I’d to to like are back for floor questions further at Jason turn no comments time. this

XXX our everybody to personally mission our is of Healthcare. profitable for joining all just as for to for Great. clients contagious. Thank all, support appreciate And I thank very goal of we every want We passion first of call. want today remarkable their healthcare employees investors it. try is our of I to time just their to do we you Definitive we earnings achieve appreciate much. of growth. Well, the durable and of commitment our thank our helping day and what But highly Their the transform first

have to that. want you a just for heartfelt I So thank

time. good a again Thanks the for have it. everyone. appreciate We evening So

This concludes teleconference. today’s

you disconnect may this at Thank lines You your your for participation. time.