[Music] It's big. It's bold. And it's not to be underestimated.The future of our health is going to be transformed. And it's going to affect you, me, and everyone. For the best part of two decades, I've covered the greatest innovation on Earth.I've been to space agencies, tasted future food, hung out with a load of robots, even been sort of turned into one. It involved an exoskeleton, and been invited to the moon. But this is the ultimate human story, and it needs to be told.Powering it is AI. Not alone, of ...

Healthcare Industry Challenges - The current healthcare system often prioritizes efficiency over human connection, leading to patients feeling unseen during consultations, with an average consultation time of approximately 7 minutes [1][2] - Traditional medicine relies on averages, neglecting the unique biological, genomic, lifestyle, and environmental factors of each individual [12][13] Personalized Medicine & Technology - PMX Health utilizes technology to collect and interpret patient health data, identify early risk markers, and provide doctors with a more complete understanding of the patient's story before the consultation begins [6] - Personalized medicine focuses on individual data, health goals, and stories to design customized treatment plans, moving away from a one-size-fits-all approach [13] - Technology can facilitate a healthcare system that benefits both patients and doctors, enabling doctors to practice medicine with a focus on what matters most: patient care and understanding [15][16] Patient Outcomes & Benefits - Personalized medicine leads to improved patient outcomes, including lifestyle and nutrition plans tailored to individual needs, better management of chronic conditions, and early identification of potential health risks [8][9][11] - Patients feel more understood and in control of their health when healthcare is personalized, leading to increased confidence and improved healing [7][10][14][17]

Core Viewpoint - McKesson Corporation has completed the acquisition of PRISM Vision Holdings for approximately $850 million, enhancing its presence in the ophthalmology and retinal management sector, which aligns with its strategy to expand specialty healthcare services beyond oncology [1] Expansion of Clinical and Distribution Capabilities - The acquisition enhances McKesson's clinical services and distribution offerings by integrating PRISM's established network, allowing for advanced retinal and ophthalmology management solutions [4] - This integration aims to create a differentiated platform for ophthalmology, reinforcing McKesson's leadership in community-based healthcare solutions [4] Strengthening Data, Analytics, and Research - The deal supports McKesson's long-term goal of expanding its data and analytics capabilities, enabling the optimization of patient outcomes and improvement in clinical research methodologies [5] - Increased investment in innovative clinical research is also facilitated, solidifying McKesson's role in advancing specialty care [6] Deepening Biopharma Partnerships - The acquisition allows McKesson to deepen its relationships with biopharma partners in the ophthalmology space, leveraging PRISM's established reputation to enhance research, distribution, and specialty care capabilities [7] Financial Impact and Growth Projections - The acquisition is expected to be accretive to McKesson's earnings, with PRISM projected to contribute 20-30 cents to adjusted earnings per share in the first 12 months, growing to 65-75 cents per share by the end of the third year [8]

Financial Data and Key Metrics Changes - Total revenue for full year 2024 was $307 million, representing a 4% year-over-year growth, while adjusted EBITDA was $26 million, reflecting a 137% increase year-over-year [17][56] - For Q4 2024, total revenue was $80 million, a 6% increase year-over-year, and adjusted EBITDA was $8 million, above the midpoint of guidance [56][61] - Technology revenue for full year 2024 was $195 million, with Q4 2024 revenue at $52 million, marking a 10% growth year-over-year for the quarter [17][56] Business Line Data and Key Metrics Changes - Technology segment revenue for full year 2024 grew by 4% year-over-year, while professional services revenue was $112 million, representing a 3% increase year-over-year [56][58] - Adjusted gross margin for the Technology segment in Q4 2024 was 65%, a decrease of approximately 200 basis points year-over-year, primarily due to initial deployment costs [58][59] - Professional services segment adjusted gross margin for Q4 2024 was 13%, an increase of approximately 170 basis points year-over-year [59] Market Data and Key Metrics Changes - Health system operating margins are stabilizing and approaching pre-pandemic levels, which is expected to positively impact client adoption of the company's applications [33] - The company anticipates approximately 40 net new platform client additions in 2025, with an average range of $300,000 to $700,000 ARR plus nonrecurring revenue [35][39] Company Strategy and Development Direction - The company is focusing on profitable growth, with an emphasis on technology revenue, which is expected to grow approximately 13% year-over-year in 2025 [69] - The company plans to exit unprofitable ambulatory operations TEMS pilots by mid-2025 to prioritize profitable growth [37][69] - The modular and flexible Ignite platform is expected to drive cross-selling opportunities and improve client retention [78][121] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the operating environment, noting improvements in health system operating margins and the potential for increased client adoption of applications [33][78] - The company expects to see improvements in bookings metrics compared to 2024, driven by the strengthening end market and continued momentum from Ignite [34][39] - Management anticipates that dollar-based retention rate will be approximately 103% under the updated definition for 2025 [36][88] Other Important Information - The company ended Q4 2024 with $392 million in cash and cash equivalents, compared to $387 million in Q3 2024 [63] - The company has made several leadership updates, including the appointment of Dr. Jill Hoggard Green to the Board of Directors [47][50] Q&A Session Summary Question: What is driving the acceleration in platform bookings in 2025? - Management highlighted improvements in the end market, the modularity and lower price point of Ignite compared to DOS, and the ability to cross-sell to existing app clients as key factors driving the expected increase in platform bookings [76][78] Question: Can you discuss the differences in the new Ignite platform versus DOS regarding annual escalators? - Management noted that Ignite contracts typically have more modest annual escalators in the low to mid-single-digit range, making them easier for clients to digest [82][84] Question: How do you control the pace of migrations to Ignite? - Management is working closely with clients to manage the migration pace responsibly, aiming to complete the majority of migrations by mid-2026 [90][92] Question: What is the visibility into growth in technology revenue after Q1? - Management indicated good visibility into technology revenue growth, estimating approximately 10% year-over-year growth for Q1 2025 [130]