CERNER (CERN) 29 Apr 202020 Q1 Earnings call transcript

Welcome to the Cerner Corporation First Quarter 2020 Conference Call. Today's date is April 28, 2020, and this call is being recorded.

The company has asked me to remind you that various remarks made here today constitute forward-looking statements including, without limitation, those regarding projections of future revenues or earnings, operating margins, operating and capital expenses, bookings, new solutions, services and offering development and capital allocation plans, cost optimization and operational improvement initiatives, future business outlook including new markets or prospects for the company's solutions and services and the expected benefits of our acquisitions, divestitures and other collaborations and the expected impact of the COVID-19 pandemic.

Actual results may differ materially from those indicated by the forward-looking statements. Please see Cerner’s earnings release, which was furnished to the SEC today and posted to the Investors section of cerner.com and other filings with the SEC for additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements.

non-GAAP be discussed earnings found the call the release. of also can in reconciliation financial in measures earnings A the company's information Cerner forward-looking law. to obligation except or assumes by as update required no statements any

this to Shafer, over At the Cerner CEO Brent I to Chairman would turn time, call of and Corporation. like

begin. may You

you before appreciation very just that like I’d much. and your for Thank and start, being and afternoon you us welcome to healthy express our are we everyone Good the you with call. and And families to hope safe.

the are Like you, if this of challenges remote smooth. best most different any to spend locations, have please we today. us doing with can call the do it we giving about CFO, our bear from Peterzalek; Officer, We’ll technical our minutes it and so make thoughts we Trigg. hand then President, few Services business environment, Naughton; to the the team, first over Don John Chief Client current just leadership and Marc including my I’ll

So all an eventful daily it’d as HIMSS the has was we been the extreme. an virtual community that It’s talked nearly our meeting coronavirus be to Since say canceled, investment we affected week an our quarter. aspects this last understatement of was well at lives. pandemic know,

made mid-March, In we a associates to remote transition workplace. our the decision to

the really with our majority part to of pleased As important our and a we've long-standing step. we taking moved XX,XXX this associates of been environment business the vast performance plans, seamlessly continuity virtual since and productivity

commitments delivering critical mission working tirelessly incredible this like to So home first associates of my dedication time. foremost, all to appreciation express balancing we’re during Cerner on that ensure the would I our and while for

simply impressive, to and in do I’m our our has humbling. for associates weeks of been Cerner grateful but it's drive improved healthcare support always all clients our for past the six that over been associates for The our clients.

to inform immediately we Health the agencies operational and World our regular our decision-making. taskforce Organization a workforce clinical, has continuity CDC, This health activated enacting other COVID-XX to addition the plans, input. taskforce business their and virtual also In with interactions guide to global

and client to protecting never a they Really to is In our before as global more support Cerner's these provide months. been has well our than health associates base. critical paramount life couple brought last being of the in of concern, mission

has engaged respond as the on around support frontlines. to providers healthcare they Cerner rapidly the world

tremendous Health You the read manage been care. the pressure United for of example, demands have may the Service Kingdom, National in ability for there’s to on surging

to NHS innovation worked to the have clients X,XXX-bed digital teams clock and round provide a the temporary with Cerner technology stand hospital. up

Nightingale fully So utilizing convention on sits platform. repurposed is XXX and the center acre millennium Cerner's field hospital

to and also We work efforts. resources our Cerner CEOs ensure who importance the our infrastructure our the many of stability. weeks clients capacity, tireless flexibility to increase We've appreciative by and talked actions recognize supported fortify greater very systems. system have provide prioritized systems health in have of our and Cerner’s frontline client their of uptime hardening swift I’ve witnessed with personally recent

to been data insights. has and effectively, pandemic this vast to responsibly during Cerner for role use provide important our stores Another securely actionable

of data We’re to impact consent working the so surveillance of mitigate COVID-XX, in to scope better given surveillance nearly and far provide de-identified with network to that the can CDC one-third and clients participate the Cerner’s network. have

secure the & demographics, access researchers data on spread to HealtheDataLab researchers organizations, to of Foundation. research and the a AWS researchers sits it and HealtheDataLab. identify systems and health including treatments providing next-generation could query to tool. conditions, platform enables drive and cloud Cerner's a That’s healthcare also Bill We’re underlying Melinda has solution This future trends, by outcomes existing clients, that decisions. been received charitable Gates of well number

organizations need they when on efforts or go-live to simplified a of Affairs it the with streamline partnered information of records that DoD VA and each joint health the systems, a standardized, U.S. through providing of a Last more health and patient’s COVID-XX allows exchange consolidated exchange department's we The successful week combat Department data holistic community sharing them Veterans supports access and from most. partners and providers retrieve view to health. Defense

greater Health This the and is developing interoperability year. advancement outbreak efforts on on will of HIE vision connecting platforms example continued open, This VA Alliance XX,XXX another course Cerner of since the has by which this nationwide interoperability. of to of true its in is advocating yet cognitive COVID-XX. the seamless the via advance crucial of Cerner’s to for and connected deliver world, community providers delivering importance a taken later further CommonWell DoD and

ahead. months clients, traditional work pace work. at innovation, hospitals prepared care settings, an associates strategies support will Cerner’s to challenging field even where Whether prominent in and environment, and many we and has telehealth remote, our or to our analysis be validated in support provide the that communities venues. is technology, Cerner our a of underscores are There crisis This to we’ll and live it’s technology care data need clients. greater across

relationship. as how The will of navigate a as virtual course undoubtedly care beyond future for is change we for around will to Rules this delivered the need of be normal becomes example, reimbursements, physician-patient pandemic. healthcare reevaluated more

continued acute that data need of active network. national of the emphasizes participants our into provider the crisis CommonWell are to are like on than half frameworks we for more Additionally, end, that increasing exchange pleased opt CommonWell. providers telehealth adoption clients also during this To

healthcare nearly approximately pharmacists nurses, today, with More than collective COVID-XX clinical many XXX X,XXX physicians, XXX we have UK. associates to to the makes affiliated volunteer employ anything, other associates, volunteered world’s at therapists. And to response Cerner, at including me serve the during who of proud work technicians many U.S. them over Dozens their and hours as acute clinical paramedics in XXX many heroically professionals. We’ve settings in be Cerner. had off and also so and

impacts stages of a early for quarter only I’m the As results, we minor the pandemic. pleased delivered the with from solid first

As we the the the a will expect discuss, Marc bigger in second of particularly rest do impact year, quarter.

a model, we of other business continue with the positions have companies. technology through solid pandemic many to fortunate less which all and that manage healthcare, relevant for resilient than impact us advance, to to plan we’re a transformation However,

over I’ll to to hand the through now And you take call Marc the numbers.

Brent. the Good and current cover Thanks, on results afternoon, of I’m going our to views COVID-XX. QX everyone. share our impact

but revenue of helped our we quarter the expense delivered some our due bookings control expectations below This COVID-XX, drive ongoing of earnings and high-end impact at to our guidance. slightly

taking and of currently impact mitigate to the be it steps in impact expect of the As for QX. on results we’ll year, the to do discuss, most expect rest our an we we are but several

range, we Now clients results, just volume shifting saw starting with their lower-than-normal I’ll bookings, to signed caring were outbreak. quarter amid a full rightfully as the go contracts for of due through in which and the last focus patients our our QX to guidance two the of below billion weeks X.XX coronavirus

on as Bookings in pipeline will in our the outbreak the above we to stabilizes. global track were or future the we close quarters guidance believe them our business opportunities the and prior to high-end come in remain and range at disruptions. resulting in quarter environment These the

as discussed from a as first of primarily with X% quarter a ended the our a to XX.XX well lower down year the the bookings which We on that due backlog of QX revenue RevWorks in billion, ago call quarter. is level I the termination of agreement

to out, Our revenue able months. combined XXX delays over is excluded revenue being backlog provides backlog work on impact additional revenue, with when contracted this with the backlog current but XX% ASC consistent XX is rolls from of our view. backlog could services that Obviously, other the the approximately definition, visibility next the

revenue Revenue been quarter comfortably if expectations below of QX it crisis. in over would for technology related to COVID-XX and reimbursed the have lower and the This was X% is software our up guidance in slightly but weren’t lower X.XX billion, bookings resale our 'XX. range travel

go business XXX by through to of detail of to primarily model bookings X% and over to the year-over-year attributable to 'XX. now quarter. in in QX decline revenue a QX 'XX license QX growth our million the traditional growth software offset SaaS strong offerings, compared lower grew in in Licensed due software I’ll

in and X% compared to QX bookings, XX Subscriptions XXX million QX revenue offset of to in due in XX by to QX also services was level by X% XX% lower of QX primarily revenue grew services million discussed. revenue outsourcing Professional 'XX. the grew we’ve RevWorks resale partially million. XX of decreasing million, less of to Technology implementation agreement driven impacted the solid growth previously termination in by the

expectation went of Managed travel services flat Support year-over-year is and expectations. and in line and QX to the hardware to attrition of million, X% into range March. due of down And restrictions was reimbursed in in was up travel million million QX XX% and which with place our to down maintenance reduced revenue. our XXX reflects maintenance quarter, XXX that last in finally, was impact in XX X%

Looking from X% geographic X.XX from the quarter. domestic at quarter revenue X% up and up revenue at year-ago revenue the was billion, by year-ago XXX was of million segment, non-U.S.

Moving to margin. gross

travel was XX%, in Our party and XX.X% from the improvement revenue, in margin XX.X% of higher and 'XX reduction up by reimbursed year-over-year, third offset services. the gross for QX outsourcing driven primarily QX slightly by with

net discuss and I’ll earnings. margin Now spending, operating

expenses, that acquisition-related For in we COVID-XX results. GAAP compensation and adjusted are detailed and expense, to restructuring our results provide other adjusted exclude adjustments adjustments, non-GAAP and or The expense, GAAP both these other share-based release. and related items, organizational earnings reconciled

up quarter the at XXX expenses of GAAP were million Looking to X% our spending, million operating year-ago operating in period. XXX first compared

our efforts. compared expenses from operating down to primarily 'XX, adjusted X% optimization were cost QX Our resulting of

line decrease expense primarily expense. the X% by at items client decreased sales and a personnel year-over-year, driven Looking for QX, in service

Software increased and X%. was over in flat, both expenses. 'XX by increased down expense was down of in G&A a essentially QX amortization as and decline development personnel X%, gross was X% R&D QX by X%, capitalized software driven non-personnel expense

XX.X% to Moving margin year-ago operating in the XX.X% to GAAP our in operating period. QX was compared margins,

for our margin in the adjusted of mix. up QX cost of XX.X%, impact and the improved quarter revenue reflecting operating efforts Our optimization from 'XX was XX.X%

As year. for pandemic I do our I’ll of guidance, expect discuss impact results rest we when the the the get to to

remain we fully measures to crisis, track not offset our and do planned on are expect with the implementing the additional efforts optimization While we mitigate impact. of impact cost the to

compared which could to XXX As our that would the points as result, previous margin be year expansion, full a still closer full our this circumstances. expectation below to note basis impressive I’d we year that slightly XX% extreme adjusted to view reflect be around expect of we XX%. margin or operating approximately we given

would operating points we won’t targets For below this QX year, fully with by end of which expect strong the points be reflect XX our year. Similar to going line to that the COVID-XX to currently full was reality compared the of quarter original the target, reflecting of of offset XX.X% basis margin our optimization impact margin strongest even to QX, XXX margin of 'XX, the expansion XXX our we basis the beyond year. approximately our top

also year margins beyond to benefit remains improving for we from additional shared We we at platform efforts opportunity a framework believe margin ongoing expansion we aim expect valid, to our and and longer-term Investor continue Day to optimization the this as implement realize modernization.

were GAAP in were $X.XX and non-GAAP and per down QX compared XXX QX our was earnings Moving our QX quarter. million or $X.XX is rates of XXX from adjusted were and of $X.XX in in million 'XX. $X.XX the GAAP Adjusted to 'XX. share, tax for EPS, Both to earnings net diluted earnings EPS QX net XX% which in diluted net

and to the and tax be continue XX%. we between For of GAAP expect non-GAAP to XX% our remainder XXXX, rates

in and to XXX the Moving our million given with good billion environment. is remain sheet, cash of position, short-term solid after for repurchases a uncertain balance deploying dividends. and million We for investments million XXX we share X.XX and ended XX of QX which debt

X.X% million under XXX Our at agreement. XX years the debt our shelf QX for reflects issued in

support Given remain well low we as allocation strategy. our growth capital needed relatively to leverage, additional access our positioned to and capital

X.XX at essentially the billion QX relative X.XX billion, flat Total receivables of to the ended 'XX. in quarter

of QX was DSO up is XX period. in XX QX days, from Our and year-ago from days down 'XX in the which XX days

to collections timing impact than near our the it expect more it COVID-XX expect on from impact of is we collectability view a materially issue. some not difficult to as intermediate-term. a and measure, We to This issue in operations but impact do currently

as expenditures cash Operating capital and for Free QX was flow software were capitalized less million. software million. XXX defined the quarter. capitalized XX development XXX flow, million XX flow costs, million purchases and was was for cash quarter the cash operating capital

impacted when for is expenditures. believe we flow our be operating QX, and free higher collections For quarter most lower may that expect is also cash our seasonally as capital and cash we a

second based flow free moderate half on We in assumption of QX. expect the that after year the of cash our to the will impact the and pandemic improve operating both

repurchased the the average leaves plan X.X billion an total billion past shares remaining Moving XXX to our our at initial XX current We for brings for us XX our in for to million price X.XX to billion That and repurchased $XX.XX. months capital allocation. first million. repurchase million quarter of of on by authorization. This the of exceeded shares 'XX QX X.XX of end with shares X.X

purposes, uncertain impacted our the acquisitions in activity to continue pause which as used our the by will QX, and to also environment expect level of repurchases investments. nature but Given our the of amount for current or we other for evaluate repurchase may funding of such be significant program, now

a or due QX our paid realize suspended companies their Board but pandemic, I subject the dividend to in we million. program, position some continue program, allows financial us dividend per dividend our XX $X.XX to to our strong dividend share, to of have Moving approval.

activities to transaction made that Cerner million focus and moving Germany in This the in capital discussing non-U.S. with adjustments over assets management we allocation Spain. allow to and consistent I’d February our comment is on purchase core growth closing on XXX we announcement have Medical us to profitable been portfolio working in like CompuGroup ongoing will provide for agreed certain Before the after regions. and other guidance, and capital to

on we cost to have assets profitable, reflect efforts. approximately to we in optimization full certain conditions, this expect are expected million close revenue XX the These guidance less factored to into The closing impact our early transaction and earnings largely subject QX, is to year timing. with in but offset

our as expect portfolio We align active with this continue growth to in to and remain strategy. M&A management we portfolio year our

to Moving guidance.

to going forward, investors full affect to to our which not is second quarter results current pandemic the we provide to expected is and COVID-XX operations believe quantify it it the possible extent precisely business While the our will financial results and of view helpful for year.

business this we is Our the comment amount that given of generally operating. environment subject than but to a elements, significant normal which with recurring guidance would higher resilient risk are is I unprecedented in

the I’ll the Now walk are in some pandemic. how factoring through additional impact commentary we with on guidance expected of the

approximately X.XXX this X.XX of for of we X.XX expect plan billion. than to expected the billion XX our revenue between less million QX, For QX, representing original and midpoint the be biggest The billion range is impact pandemic.

services, QX paused Nearly expected in half of this to utilization impact fully is in that lower to several is remotely. projects and which be worked due professional delayed have can’t

to travel impact of QX We revenue. technology lower levels of in the remaining and reimbursed expect software, QX. expected improve utilization is resale and Most

from closing the QX which is of billion $XX billion, This approximately to a For between the year, QX XXX both X.XX is we QX and expected X.XX reduce X% from full billion of X.XXX XXXX. revenue of reduction down global million. million expect to approximately and decrease by our the expected X.XX midpoint midpoint with this billion. our revenue XX reflecting previous million Approximately due divesture, is

QX. to million of impact We which impact already impact over largely is believe in QX; the spread million breakdown XXX realized XX of QX COVID. The and is and XX this remaining QX, additional reduction million XX rough discussed; I million in expected expected attributable

us revenue contract on exiting in revenue note full impacted One XXXX. our the growth, is late recall RevWorks year also that by large

growth our as all adjust growth inorganic for would are revenue because but as bring out revenue divestiture, pure don’t would expected X%. of from on the AbleVets organic ramps rate VA leveraging we acquisition and we the their the view to you X%, global associates AbleVets contract up. this If our revenue it back be the Adjusting from XXXX

the further portfolio As reset. pandemic M&A the I remains that magnitude activity amplifying our COVID-XX could line, mentioned, impact additional a there this management XXXX year the reset revenue. and addition of unexpected could be for of year Overall, that top with

reflecting Moving range impact than from expected $X.XX pandemic. expect the The lower of per to midpoint adjusted be is this EPS to to share. $X.XX diluted EPS, X% QX 'XX, the we of QX

We adjusted to growth return diluted to expect after QX. EPS

full growth projected diluted of $X.XX, previous midpoint to to and about $X.XX the the to we reflecting to expect to down range EPS of related impact be impact the over of X% from second adjusted the For year, guidance. $X.XX This XXXX. $X.XX $X.XX due the is the with pandemic, with half quarter the

The XXXX, reflecting revenue bookings activity to will this impacted reflects Moving most X second billion guidance, QX range of that X.X year. quarter to with in of later in we the expected a sales be to our in decrease billion. bookings QX XX% expect compared expectation midpoint improvements the of

Now I’d factored the of the how our approaching discuss assumptions we into like and year. are to the guidance rest

impact primarily our occur sales the the result services delays impact activity largest I pandemic expectation current and to utilization resources. As of second that lower expected in the of professional in is pauses will that project mentioned, multiple due from quarter, our and the lower

project begin in pandemic middle in impact We but the quarter, project there expected a the an improving quarters and the the second bookings related on of delays QX and do expect activity and second of lower half through restrictive have as measures sales impact is the flow-through subside year impact assuming quarters. the to future the still during

as in can significant work We’ve impact the to opportunities the doing engagement shifting extent mitigating less with optimization done identified are in services much by also already our had resources as client the We remotely amount we work place. possible. possible backlog that to be other and beyond

our as clients We and aggressive to reengage. project could our deliver our more measures ability impact believe demand meet taking commitments IP

the to much as pick given year. also through reduce activity now capacity we up expectation our that makes will too We sense don’t our move it think

situation. very is unprecedented an fluid and summary, this In

our needed will we but that activity captures year, constantly like range project guidance begins assumptions scenarios. our midpoint The our reflects a feel testing late We in QX. adjust and throughout assumption are reasonable current ramp as the of to

Our where activity clients end reengage low normal project end room high sooner. slower and leaves for our sales and scenario return to captures a a

In conclusion, initial were we able of despite pleased solid quarter are the in that results the deliver impact COVID-XX. we first to

would outlook difficult are very has solid pandemic optimization year, and new that remainder pleased putting implemented in our we projecting and are our still have challenging last decreased environment, margin very expansion the financial of in year. the model we hadn’t operating started growth which a efforts been earnings While the if place we for

to that, over the With I’ll call turn John.

Thanks, Marc. provide Good highlights update an on business. afternoon, everyone. results will I Today, our and Federal

start I’ll with bookings. our

close and prior mentioned, circumstances, on Marc do come the them to stabilizes. range solid we delivered As high-end track to at expect our lost above disruptions. given the and and opportunities outbreak future the guidance believe we resulting in business environment as the very not We bookings were to the quarters or were in we these

client XX large displace business, for two sites. our quarter of sites our an different XX client were to large team from additional care with a Federal EHR purchased a expansion and solutions Highlights purchasing contribution a strong Connect, the investor for competitors, offering, that our owned communications CareAware

We of bookings in the to a year, to contributed decline bookings. had last long-term compared which lower level overall

contracts percent the of in compared coming For from XX% the QX of last was year. XX% quarter, bookings to long-term

our and COVID have projects the had about vast Like clients, Many due majority COVID-XX to they attention pauses in seen DoD you Moving the Federal have shift the to to pandemic. pandemic. VA to headlines a of of update. the

them ensuring they reducing capabilities all time, their with focus the staff, support and frontline technical including to have on enabling patients, need. we during interaction are they to doing them this We can key

work and elements the is technical continue and of both as virtual forward HIE with live activities, and discussed. continued progress management. push deployment programs the The critical including interfaces, program progress on evidence build, actively Further go VA to we recent that Brent DoD

the impact to working and but both to we look we into As are revise accordingly, shared. guidance manageable we believe is currently factored we the future programs have with it Marc timelines deployments,

environment. at in and are marketplace, an unprecedented broader as discussed, the Marc Looking Brent we

I’ve is essential been hearing we message created our strategic are move of pleased disruption clients business that has and Cerner their want this is clear forward plans strategies. the some an in part to to a activity near While they with term, from their

clients various The remain timeframe and work for COVID the stages as they through of surge uncertain some recovery. the

to the advance help However, They their strategy. message clear. and initiatives is need Cerner

focused the clients with our can, are on way in experiencing term, in near we surge supporting supporting a a cases. those any we focus In on COVID-XX

as done the doing willingness be by remotely as we’ve projects much we’ve and work advancing to this, how learned time lot clients’ short also doing a much possible. our are been about can remotely work We engage virtually. In

pandemic, evolve that is rethink forward. financial will only the which these our impact of Not this projects a represent clients’ and presence, Cerner an we travel opportunity time the learnings to requires will we mitigate onsite less going to us approach less and save I helping how believe model and money.

to industry the yet missed era. Not that’s faster realize digitization from to believe More interoperability, level broadly, so the potential realized an base was secure Meaningful established created catalyst need of focus a We our that could information, the this a pandemic to doing access Use would other a be capabilities. on for opportunity. be align heightened the be for during the that analytics, has to move with needs and

with cautiously is we about reason are projects and funding in we new of better recover position the address believe as help a look receive Another from will providers have and the the identified near-term forward CARES they the this to significant Act them from planned crisis. being resume pandemic optimistic that business able during ones them needs activity impact to move to been consider put

believe I long this to in how In pandemic date, technology. embracing will run I’m summary, the further healthcare through lead with managed have to this that and pleased we

turn that, With over call Don. the I’ll to

we COVID and to transform will a framed the work crisis mean our few for our of healthcare systemically his we work afternoon our on impact about minutes believe communities our the this associates comments, where In John. clients, pandemic opening the it. Thanks, talk live. want for what Brent and and I

trends playing XXXXs. regulator The healthcare accelerate is for an macro acceleration of will role. government top Federal any COVID payor became first-order impact The think of growing crisis the We and out. Washington’s already in the

Health to consolidation accelerated The curve. acceleration adoption quarters include has deployment to come. accelerate as multiyear the value existing the We change tele-services will pandemic any crisis. of the a The From been trend. home had already it. behavioral forces health system quickening of has has to cloud, it in believe the venue a known-known the of is of

think about we we set for high the gross requirements, It’s assets, look allocation, main, capital our trend, business durable As and strategies existing in essential for response understood a clearly created to Cerner strategic margin areas for pandemic from recovery. important models are with macro that, regulatory significant growth speed-to-revenue. of and businesses leverage

the comprised System Hospital hospital of four of and are hospital, workforce solutions and communication, Real-Time capacity walls the management. our enterprise operations Within

real-time As workforce, supply, decision-making providers to significant had management. our on drive deliver impacts bed to and Management data additional surge CareAware surfacing equipment and solutions Capacity sets have Clairvia

data. been Outside hospital, HealtheIntent has HealtheIntent core normalizes include to aggregates administrative crisis to response. information platform geospatial the and sets our essential clinical, also EMR-agnostic and

in surveillance Our it and St. HealtheIntent in days. fully Health deployed COVID key syndromic tool in the called ‘a all New Joseph’s teams developed to Jersey clients arsenal’. just

part health network durable how of will reimagine systems tools and clients their models. from restart business critical larger our time, drive to can be health believe these campaigns larger strategies these and As our reactivation recovery, revenue response their We recovery and, clients move health crisis help over networks. same

cybersecurity. virtual networks and tailwind will these We physical a health also believe for be medium-term

For and of will disruptive all liquidity, alternative protection new to of health the care venues of information promise be like data support staffing paramount. the home of them, models secure

cyber as elevated. healthcare will policymakers infrastructure increasingly And as further national security, critical view be for

Fortified announcement solid is with a and Health Our year. for us gives business the solution offering, total a latest path compelling on another

The network, business the clients in the momentum. also signed continued legal new quarter. first and Beyond information businesses our data multiple life insurance release of health their

Cerner our and progress. space Health addition, life solid the also Networks in pharmaceutical made In sciences Learning

de-identified Learning strong first over organic drive the leave to data We to team in in XX Health quarter billion confident year-over-year Network clinical ability have lab U.S. sets XX.X and our represent Art his and of the results. million Glasgow the one grown with growth. our largest patients

Finally, network consumer and around David our the drove enterprise, again efforts center bookings team the across and health QX his and economy person. in larger a health in Bradshaw strong QX.

the platform pandemic is helping disruption. Our and deliver amid experience connect clients continuity digital important

digital the consumers Health It consumer a door first built new quarter, health the experience moves In seeking. framework. one and on care the closer for patient launched believe Adventist digital we us step are Cerner front that to

associate. In of letter, you out and time the opportunity accelerate entering has Jamie not existing them. response crisis Dimon Cerner a shareholder is into to It said offers The figure his recent shape crisis what to every the provider Crisis an want organizations trends. be. lead doesn’t just worldwide to had impact on

we durable in to the to front recovery center. its Workforce and and services our what will are the spirit that have once where for of part Cerner technologies again call in come. essential supporting that challenge of directly and forward our businesses opportunity pursuit the caregivers frontline quarters place like seen look We of The been Health We efforts by and we humbled workers.

turn I’ll call for that, over the With questions.

Instructions]. Thank you. [Operator

of the Our line Cowen. comes Charles first question Rhyee from with

Your line is open.

question. Thanks Yes. for the taking

see Act? as you like mitigate Just I those some obviously seen you of are, online. that a they’ll impact spending they looking is ask you’d the your might far do in of companies with back start their be kind wanted in along degree at recovery? timeframe worse terms do impact and report many guess recovering the the thinking terms of to as think we’ve year. of so this them things about funds, Do yourself kind really and when as otherwise? hospitals they But How of helping particularly how XQ about you them as when think business see to you’re get the think CARES through slowdown of about a of of plan sort do sort expect that start the other in they you stimulus a as derivative course and getting we when clients I to the durable of you sort get spending better

currently is a us eager a services is of clients packages And and our run projects. which Act their Certainly, to primary on our those operate is clients Marc. financially stimulus CARES project. operations important that’s were their I and Many be likely this our think are more forced for Yes, that start project everything get on going how and to these are business defer to that with going subsequent go are of able impact efficiently. The lot ahead for an on projects emphasizing implementation businesses. or to help them to pause is the

the is think fact facilities. really and how have adequate in and that we adequate seen adequate healthcare beds the how many important of that number – we’ve healthcare and how I it’s critical U.S.

advantage So things. opportunities have some and the what the looking, funding in of think be is recover and respond only such as strengthened as are to Don going are other sort next or them and take be of also that likely them something we our healthcare to maintained clients we believe opened, not comments, mentioned of for health helped his than then but wouldn’t tele

Don. is This

us structural that deployed when aligned we’re And that are put systems dialogue our best think and advantage has are clients. of in center strategies heavily front around because our I and have business critical. that’s we with our this clients and at mission our We’re with a terms

of recovery. the having the so our be great with CareAware now are used parallel is clients use COVID response, can And a to that talking it’s can many strategies they to conversation part relevant how that about around example, I really begin an think about how we Solutions And response, suite of around as a solutions we’re but we’re what case.

what labor like medium-term capacity they search same at to terms at about rates. Medicaid are on to in those looks working of We’re workforce about manage and side, of the about think and their and think and the to Medicare supply strategies expense relevant they going line make and be management are how money think how but and to it to capabilities them strategies tools that

response, we’re strategies smart, those strategies efforts COVID be to around play to clients we’re business going multiyear relevant And revenue larger we’ll of central into and rethink our a recovery – on those to the strategies. we’re think I to strategies if economic basis. their So recovery

the sales of us how in what post to X in new real quarter, of maybe pandemic business maybe X.X is business your for it response, that your mix start for And more just of to year? billion possible to guidance might on COVID have at Thanks. is give say, bookings of to much the planning versus follow next Thanks. how billion sense quick expectations let’s of more expected, shifting you realign a the to a

Marc. This is

So, John, do want you to --

terms billion the that you Yes, are see. in a bookings, see in geographically start, normal clients little looking where just depending the world, X And normally the on I’ve they’re X.X are in a but of any frankly depending It’s and we’d off it see on mix It’s we are isn’t what their you in different you on terms at billion what to from volumes we’re in when engage in where different quarter. bit much the little commented doing the we a of strategy. our bit U.S. when normally than much quarter. what than willing are by in isn’t in to in

you. Great. Thank

you. Thank

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

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on Thank we might with be beyond a experience. we the to what on manage purchasing you. you’ve I think the start of a will recessions; through helpful XXXX Could experience activity goes COVID is and how couple want through maybe continue as different that? been hospitals XXXX, tack, about assumption which

remember access 'XX, timeframe, Sure. guy didn’t [indiscernible]. I healthcare shutdown, those. back 'XX period room, the of capital That Clearly Marc. the in markets of all old This have shut time. to an Being the just for in is cash extended

much you’re this doing what think is this believe help now economically those I will okay seeing environment. environment. their of We on that get packages back feet to healthcare stimulus is post prior them

providing believe mind this much those relatively advantage – and taking they’re don’t the in projects on to different their infrastructure. be and their get from dissipate with my start they go of kind flight of event work defined in is patients. will have think already out that rolling They QX, we and passion cycles going many We reengaged higher as short-term opportunities. a on will we out even slowed. care and is I So be to to this where level of an were lot these of so A

of services coming revenue we’re Some you XX% of QX, another and that delivering amount still on. we’re of working the remote still for if a we’re Because way. really look about significant working them, still you that impact growth through at in our it’s revenue look we’re if – is talking at

the So see we in them stopping 'XX, don’t saw as from our timeframe. 'XX I expectation that

it’s We coming project is finish bit I to be people are My pretty engage ready nature. this. would contract activity. really in me. to discussions, more think out reengage this once short-term that strong should of a experience And different little in in

say would other to tend to Yes, the is only orientations sector-specific see thing previous I you downturn.

points And and enable. government material and the post too on one a technology help and thinking a it’s as sector of and way mean be focus side think our the will will in of provider’s critical supply describe we strategies about probably perspective, 'XX, transportation in their meaningful that’s provider of emphasis from focus approach, I and feature will that particular to focal of our a clients side sort the supply here but way, sort in early that thinking 'XX, we terms So sector in share what for a perspective X/XX, it will government think infrastructure. financial

services there were to take not the for of the or today is helpful. up And be want you need that some may and element, cycles to reinvent now? the don’t primarily ground really attention, on That’s delivered that always and model services a that is the

of both. bit little a it’s So, John?

Yes, to I through now, both different think normal at it’s I services. right the as are a looking we’re different and us clients our deliver think working ways point good new because a

the have of clients that our majority previous in the question, note it’s to important mentioned we As not stopped projects. their

make we’re realities those evolve, and of ways I and We progress new gradually and as we the believe continue do to new and today normal working see [ph] impact on both back deliver we’ll a innovative to of come I work become that clients but our to lot how think and that very some new effectively a with I to And clients credit we our has give able work, work the we’ve virtual. of to been normal. services

you. Thank

Thank you.

Our the Steven next question of line Barclays. Valiquette from with comes

Your line is open.

And pandemic. efficiently here. keep Couple work me of afternoon, to Good just everyone. commend you on running does during that Thanks. hospitals the questions let Cerner the

that their the still of end guess for some there’s your if on that with for fiscal in given I budgets hospitals have a First, I see fiscal that to across flow it year variables more of this guess could reset volume guidance is you’re lot X that, the of years to that results I’m curious XX, related hospital in December of care year full rebound 'XX hospital any XQ the or some starting tied base? October the overall calendar customer acute just

going completed we engaged the of None We think didn’t changes Marc. has been tied or any client We’ll through processes. our process. concept, around see the are thoughts contract. lot of forecasting opportunity is when obviously to each budget processes when This or our guidance in go is a on a based result to

are very people busy Our to providing care in need. clients

for and we pull provide data, is into range guidance baked always done where a it So forecast little just a wider what to and our what them purchasers their we But anything upside do at point. could and out that’s we’ve projection purchasing laid isn’t healthcare We behavior the their on. downside relative give us to to what that’s view room as this changing inside there happen. relative some to the

any about be see in I enough stimulus overall liquidity that that big the from do hospitals think setting one’s think amounts provided your I either strong is you of in environment? this sort perspective, one, stimulus liquidity from to of Federal view that a you quick tough other or general our to to there being customer picture little also very answer in clients avoid base. this relation concern But there’s in solvency about bit, or One How and kind of ambulatory just risk? relief ask you your Okay. but guess to there of and/or in Federal to guess do seems

think Yes, is incredibly can’t view. I having. that is I to current that it’s there think difficult environment that, an that your think Having the said we accelerating – do point so to I impact speculate, share

the I accelerate of think of to the is one hospital going things that level is consolidation.

the our and extend space. that network is out vernacular, so And health going to the into ambulatory

And over to for kinds well health key purpose think landscape clinically need HealtheIntent thinking and platform enabling network. as platform to need be an meaningful acquisitions the strategies strategies of months. that EHR-agnostic you’re larger of required consolidation as those integrated XX It So what to was technology feature a work very approaches. be practice inside the feature HealtheIntent a around larger see what like and to looks I system next going practice as we trends has integration a about the those XX and doing our in built to will make suited acquisition to is that the

to We terms of we trend smart HealtheIntent and effective capabilities trend in that need positioning it is a there. there think accelerates think it’s probably work. be we So make and to

I right. Thanks. the all color. Okay, appreciate extra

Instructions]. Thank you. [Operator

Wells line from question Stockton next with Fargo. the of comes Our Jamie

open. is line Your

the kind done, I Thanks weak is since are work with evening. touch this possible to really my the could Good just the to maybe coming some are for on I services it’s the seems remotely not some front to qualitatively activities down them if of on taking area and know that, having guess or that great? the client relatively up question. already be you would with things to available staffing question pro or what’s of people do a solutions be been work get there is that where your doubling this where just of but incrementally, asked, creative

John. a Yes, that is do virtually. really can’t that little there expand I’ll you this bit. on Yes, things are

think So tend aspects you of activation people-heavy lives, type you of be so or and of things, likely to those everything those if can’t because virtually the large about type things. do patient go safety and type those of a

possibility you are as those working on go pretty closer. do project, site along, as able on primary back and on you’re get of where to mid see being and things, you if may the challenges the to virtually. So tend see activation, you come is of the you continue of closer That’s depending that’s to to live being pushes and of type course you some did where you difficult issue go

However, gone done actually I well. that some activations have projects will in they’ve we some smaller of virtual and say our

everything virtual. So combination can’t but the will is you expectation of a do it be both,

you. Okay. Thank

you. Thank

comes next Our from question the Windley Dave with line of Jefferies.

Your line open. is

you. Thank

upside or follow the there, conversion maximum would in reflective to activity you. today remote but be, second there Is is employed that your and low mix Thank the employees of Does decision – then we’re calculating of of kind up on the So margin services services or be question the XXs. more a keep revenue is fully incremental that And professional maybe part would decremental of to that’s out? there? guidance professional coming of amount your guidance. another reflect of

margin the In world, impact the out relatively in is lot a services our impact, contribution of because adjust would this we Marc. we we would near-term case, of and away, been our missing those there. the service business. match a to know which are not In basically revenue go have that from by we workforce reducing is of demand nature professional workforce. on the might This The realized some investors then normal the there’s you be not that when fully demand that think

that ramping up. contracts government have We are

We have commercial contracts up. ramping

to need be client going and ready is have trained we to So those they’re ready. when the people

duplicating that we’re means $X basically we not it’s are of and revenue of get, don’t that that operating So we which earnings $X getting. every workforce,

working in will reflected a how higher going on one projects, think are that efficiencies those there a is some get important a to our point reduced out an we’re through there. learning Keep effective users to more rate as fixed to perhaps is of to our go we’re do most they’re that I do to time because we And believe will going people will way. are back on lives techniques, going onsite, consultants and from their it be go and meet do things be that travel, I we the this. our projects that’s utilization There come percent and for are ideally make. we’re I here interfacing perhaps these we efficient of we in see to bounce drive have absolutely and nature. the mind prices. of we expectation able with those think So just every fee actually in meaningful higher in But be from

So us the implementing any efficiencies bottom drive line. benefit to can those relative can we on

But range. – once the continue longer, think to opportunity. down, tried we going guidance what to our wide we’re opening right given downside that’s efficient, last I to before fairly this a give to we Certainly back from again reflects something we more we an think up, then our think guidance fall can be there���s slows now best if upside if get get work. a that’s project perspective, can start in If the virtually we’ve us we potential when expand view, that upside. for do

Okay. Marc. you. Thank Thanks,

you. Thank

Piper next question the Sandler. line comes Wieland with of from Sean Our

open. is line Your

you very Thank Hi. much.

perspective product your is any making a perspective, help this I become and go-to-market a like many which normal add? to but telemedicine perspectives to with, mentioned to part you changes course the So going clients with of and from think specifically are what would you’d other you from agree workflow transition

is great Yes. a question. Don. Sean, That’s this

telehealth high acuity means first it thing attempted we’ve the but with outside means to our our services also setting patient effective in hospital then predominantly capability, AML. a relationship provide strategies to hospital server and the have with our through and capabilities to strategy what tried to and it thinking virtual think enterprise for clients have actually to an what about we’ve our health, I do think as So

And the so what’s capabilities it end-to-end look like across them enterprise. to give

and look dynamics the the around it capabilities with and think they We strategy. to want how and in the physical business another normalization think becomes change for looks in relative really regulatory I of mix about about sort what’s this see then think to required digital think as And fee-for-service, interesting like been way those patient probably think relationship. [indiscernible] impediments payment provider around fall we provider way that which secondly, conversation of think fee-for-value. of one have landscape, we looks some as sort back, you there to to optimize the we see it

the And emerging about see things in very strategic there’s I’d solutions And sensitivity VA so in elevated we think to net the our new growth some offerings where interesting be areas helping of there say businesses opportunities that mix. around then to levels in thing in how we and think of like support think some group pretty technically there’s business. do going I security, the where like we clients is need final interesting through space know conversations say, the terms

to So us trends. some a to I it have business look through perspective model strategy, niche support look see think and from really the we capitalize you’ll enterprise think on think macro then that areas

Thank very much. you

you. Thank

Our next question Davis Stephanie of SVB Leerink. Demko comes the line from with

Your line is open.

questions. for Hi, got on I’ve guys. health. my another one taking virtual Thank you

up economic we few date could these only that, think as integrated some like to as to at quick expand Amwell. a we as on You’ve care further aligned with virtual solutions? remaining should go adjacencies with the players only virtual to Do few players And about or how fair you this plan you follow a [ph]? for look a virtual

in support of across strategies of couple our in a things tele on major so space. integration multiple Yes, the One, clients we Stephanie. that, players all our

large with and going that support successful. strategy So if we’re it a has to Demand, make or or with on help a Teladoc MDLive relationship Doctor client them

with of – think able think trend how thing we B, as about some there’s like thing, provide provider it clients. we so expectation relative mobile, against will I second do an business large around the to market their economics to we services our commodity to our the some A, is The strategy technology, to is think view become those yes, be strategy. the I The final to of say inclusive fairly have key and that’s the market, with to strategies enterprise preferred go particularly would the partnership Amwell

the the think think a kinds the tele mix impact relative first services? think of and just And we’re to how about we things ourselves tele is manage and like going Medicare are are to channel we how about think up question more dollar do helping space and we market ends Advantage questions be the clients going differentiating we for that interesting push the venue as to what so strategies us about the home around bigger that Those perspective. business around from activating So and the and risk? of we’re think through the mobility model service the how a to being that longer-term

for Understood. you Thank that.

Thank you.

next of of Cherny comes with Securities. from Our Bank question Michael line America the

is line Your open.

they’re data for points many going is question. of given continue Good back thanks the for way appreciate and when see so cash flow customers to are all far. operations, said, to essentially them picture no so the you’ve pathway having being That the we take can. they back, to want going us doing cetera. step et regarding of your I another afternoon forward best that I make conversations that idea their come electives dynamics, what sure that with all the to big and commentary as to your out point color

client so So think business, a understanding operations, running get allows straightforward, slower a it thought local as back terms variability normal does is still mentioned, business going to Marc, their of least geographies, to some of process clients of as own massive parts guidance as forward, into of essentially terms dip you play back? your of in lack their guidance you their rather for how in than of are your many at about in necessity the of your that or come key about the them volumes they about participants if even how within to think

a Clearly of it, right? Marc. has durable. is visibility lot fairly It’s this Yes, our business to

So we a revenues. lot have recurring of

lot visible We relatively have a revenues. highly of

revenues year of So when being category. in of that XX% kind point you’re a we the getting we into our see of can go – to

you that of time the a go in, period further up of have end get can get year. to the you shorter as As even to

very which is their that from we on look opportunities I client So work hearing is to the XX majority – handicap continue look [indiscernible] the individual tried we’re back knowledge through focus how from But business going interested of what up. we clients at each it’s certainly we’ve in XX they then pipeline, those as the through is gone of backlog, a and think The next days. all where as our be and started of to getting we’ve to project going our at are think what the we recurring based new elements.

broad when starting conversations a I because going We’re of for they’re to those realize to lot to services if queue the be and a to those that get services. line I be you into in the to restart, that they’re make bids, can in our think be get will, there’s client of for demand able clients want going by group, on getting to sure

do procedures going that all do I to the done? are all the analyze appointments are they space in of trying them the that is we we think elected got that can that address help many them didn’t to of get space, clearly, that So things of in some out canceled. how figure how

there facilities. their to of those an And rescheduling tools the – our of manage have we start them way procedures. is of using tools help them that One help effective some

to help workforce. We manage tools their have them

that’s in high-quality more tools are use procedures? help us So those recover, that’s Don care. problems. things, into, to we their they do now all I agree business think that them can deferred they’re was of But solve sure maximize going opportunities for clients, address they’re making I what elective to people talking looking those our these right and go But to business how quickly about the So right, talk to problems their And earlier. as safe. all all to I now how delivering pretty

I beds when normal that are open we convert get activity, comment, surge. were considered add post it you’d call activity, that would that they in plans for it, to clients. say this don’t mean a Many vast I mentioned your as you back. when would I We’ve of work be they majority understand use. And them be but of doing of to that probably can pandemic terms been thinking didn’t they have specific converted our believe what think back in all way I’ll would they the They up. to can unsurge the already

means, it as there’s isn’t an some for There’s close can back we but planning a get And to they how the come has to to by back, certain when think idea any preparing of when address I normal volume – them. back as to So that’s begun. came they they’re going to this can.

way So think uncertain getting the and less I preparations uncertainty every under day. is are

John, just this that. Brent. to is I’d add

demand points. made one, you made both Marc, Marc these gone, a right? important which is It’s is very not delayed. think that important elective I procedures,

elective you lot ahead reasons. to ahead people the out demand about So hospital of as CEOs, or various think it, if elective if systems demand, move you want talk to And a with come where trying for they’re there’s accommodate it figure how back? to do move procedures delayed does they need that

So help plan everything that key management. that we is can to do

the all really for color. you I appreciate it. Thank

you. Thank

Our with Garro Jeff next the William line Blair. from question comes of

Your line open. is

afternoon. for Thanks Good taking question. the

think little but a the Cerner I little I’ll to one maybe to up model. on follow a that bit, translate last business try

Just would of areas that business And areas catch-up element business you go XXXX what to would as a outlook. the expecting of trying you to COVID-XX a more what ahead growth to due to in new then off is revenue a And better looking in XXXX? normalized understand and in the higher out impact of call base XXXX? expect

the in that services up occur, are I that it’s procedures. element don’t the there’s clients size not some to workforce. revenue of But all catch going first same QX. but address It would periods that Marc. to us, indicate Certainly, our is is – to Cerner. have those we’re This able going for we for elective I a certainly be to occur looking be as in of future catch-up going will with to know

see expand continue But I of higher meet demand. We’ll a to go We’re organization. in per order ideally workforce just drive surge going it XXXX short-term revenue into way work associate might we our that necessarily. don’t more to as not a which through to in out effective demand more of

think perspective. that’s my So from I

Don of relative want I start really see growth opportunities out some coming to businesses. we those a those some might think to address strategic and the how jumpstart from perspective of that to things of helping kind

Yes.

five-year you basis, that’s the where COVID create business model our certainty if see clients. just think the that response, a their with that think for to about spot sweet really process recovery durable chance of for and on elevated got we of levels I we’ve engagement folks around

in the around become like And also looks taking opportunity line. around HealtheIntent network bottom same of Marc’s to say, about engagement risk an to seniors orthopedics. my what the I case, service so let’s thinking to I’m to top hospital basis is line through like part that’s line, them capability EV the about I’m procedures the that with dollar and strategies it that on capacity that of that need to elderly model payment out the surge using on start and shift manage a start to capabilities, then overlay, to strategy to – And a multiyear and key service recovery use think same keep first utilizing think if those strategy,

big noise, to traction client things a area absolutely I degree that to the virtual in about think on bets strategies, see something of including may love about what of consumer going being trend hospital and the set we’ve you’re John’s shift to elevated that trend. area the around a to I then our from work, has around multi-quarter being engagement an as signal a about real-time We health perspective areas think going that going given base return things of have of with but revenue continue believe, watching mix we on are growth the think traction to well-being strategic to and bookings you of an been has a that we the see we headwind/tailwind a it’s somehow a areas a now dynamics, where think are to material space. business. to out-year significant clients seeing in centrality the believe our you there’s in around and There have in that think that’s it’s terms are end employer like LTPAC We fair trend. Behavioral our we right out-year that about focus mix, there’s the dialogue We’ll consistently that made think the big us basis. up to you’re Amwell with point, talked more would I you in data, and employer it. have And could So in the some that of the piece I the going BH trend finally, trend. create I be that on basis employer-employee And see and are that We one other with space. see. talked dynamic be actively a quarter thinking in how have is rates in sophistication of think but progression. lot market. There’s

growth main, playing so and we think long-term about across I mix feel near-term we’re But through think and I medium-term And businesses, dynamics. the very potential. all good the in strategic

where add how one timeframe the you tools I them. certain data. is Don’s we’ve thing some held kind what this are learned the the is us pandemic list predict of – can help to can -- of where going be one areas, And docking Yes. – use valuable would in and is are That’s hotspots of to how things it where

quickly So we’ve I if want on announced to know -- the that. Don, don’t of you activity some

a it’s point. great Yes,

ton this insurance, think work when services. virtual purposeful plays explore in and trend ROI just narrative professional the the of it we’re around opportunity we’ve key you think a if strategy, way a put kind and discovery set doing strategies. Similarly, pharma. to for about larger of you a researchers is together talked to and a been and perspective, relates So So interactions allow life about data around COVID set the the business. ton that interestingly, about really around there legal current to protocols of life trend a situational core make deals around main having Again, the to had reality? academic information success part the dialogue of data the businesses with Brent sciences do How same we’ve that the that up into

a net in the think of this that we lot terms in point have focal of what’s up being we ends that for positive unquestionably playing out So space areas business.

Great. Thanks much. very

Bank. Our line of Hill next with Deutsche comes George from question the

is line open. Your

guys, for if know the has XXXX a provided question. I but remember taking don’t old, I Marc, and XXXX. here. and XXXX, thanks color lot count afternoon, of been XXXX, Good Hi. as I

much for? I so year’s much this on bookings how can persists I’m contracted is guide, thinking recurring is and – revenue crisis I guess about And longer I guess the is given I the question much And than you that of guys if already expected. revenue of talk can risk high the how guidance what or my guess about at a earnings about revenue the is in on how hand? guide talk guess so bookings you you visibility model, And have

is Marc. revenue can key have be already working the Yes, with services with things key to to in a clients back It’s for services and how a are really we That’s key get model thing in is today already the backlog. element through lot demands The that. Clearly the we’re all to able going meet and to question us live is is this the of certainly the revenue our deliver that that on is revenue. side virtual contracted. ability that when normal the

them of is contracted. lot a So already

me what projects, next that’s something we’re that’s really and back a have be but the to visibility, QX the know don’t strategies are while in to the to that get overview will the of lower impact of we the impact on this amount on be for. it’s Whenever deliver. a another impact looking going quarter, the QX field. into need bookings to we and we from thus bookings or lower a certain expected lot and exact two while So backlog year quarters guide standpoint, not for timing a that’s or that’s but we going But we it’s is three in significant normal the business those lower a QX, contracted, or working deliver exact give new following had able than is the to

to very clients they deliver on but very do, on safety associates. our We’re the first of focused our being need what able to

We’re if safe not doing to work. send be going associates it them and the to be be out absolutely able not to onsite there for

So will back work. those we certainly our but expectation get we’re are to is things two balancing,

we there want [indiscernible] plane Our clients Actually do to helping buying are started be already out it to our clients. eager tickets.

be of has point, of this [indiscernible] the backlog. it's things There’s that was It's delivering during key in lot at actually [indiscernible] the not lot done year. backlog. the to on happens the a So signed. a contracting But that that revenue of

you. Okay. Thank

Sure.

about more take question? we How one

Thank you.

with of comes question Jones the from Sachs. line Our next Robert Goldman

Your line open. is

been curious me government the a lot expect, work guidance for pause appreciate I’m government guess answered I on. a in. specifically that to point. questions relative I what and sneaking maybe, obviously could the for this share Thanks business, update asked just of be still if going maybe the John, there. on at have Great. work you more bit I to know year? was any, you a if little in the on VA, revenue do this there the

think XXX increase you about then a Just catch you what, And had that this curious is year’s million year guys roughly contemplated next year? the in work? how do of if that shared any, up playing previously

done is the this contracts. VA revenue we Marc. work government a they position site. Certainly from of of a to or specific and right? our do to There’s clients, on VA some get is We to phase, any be can work go-live are the into needs similar from disclose that specific but many don’t virtually, starting in Rob,

for to kind the In tend project a going projects. not waterfall. than are a be different of is those time, these right, bit, they to similar that lot a our clients. initial isn’t delayed a be there And projects a line. on These come many of time then necessarily if So catch-up way, little –

which and is fall and live opportunity this come the up get VA, in Now the we expected deliver to then the get just would would relative us XXXX, that an we’ve perhaps work to haven’t back more normally depending which originally talked that on mean to to of on to go back back allow obviously point. do at process. we’re track, and would get where that to be caught revenue But in about in when the able get us there kind to we we’ve

at So of But in the we that opportunity by year. that there specific can’t that. us to really could work many you multiple some end sequential are. get the to to as give to our perhaps any on get more projects let clients working caught an up one-time guidance have the opposed doing than they’re But do just boat say same as of

Thank you.

this be afternoon. safe yourselves time Good take thank of Well, to for you your all and afternoon. families. Please your care

Thank today’s this and conference. Ladies you gentlemen, participation. for your concludes

a day. wonderful You may now Everyone, disconnect. have