Veradigm Investor Update Conference Call Summary Company Overview - **Company**: Veradigm - **Industry**: Healthcare Technology and IT Services Key Points Financial Performance - **Revenue Stability**: Revenue for Q2 2025 is estimated between $145 million and $148 million, reflecting a slight decrease of 2% year-over-year at the midpoint, and a year-to-date decrease of 1% at the midpoint [8][9] - **Recurring Revenue**: Approximately 79% of total revenue is recurring, consistent with the prior year [9] - **Provider Segment**: The largest segment, Provider revenue is estimated between $115 million and $117 million, down 3% year-over-year at the midpoint [9] - **Payer and Life Sciences Segment**: Revenue estimated between $30 million and $31 million, up 3% year-over-year at the midpoint [10] - **Cash Position**: As of June 30, 2025, cash on hand was $350 million, with debt at $283 million, resulting in a net cash positive position [13][17] Strategic Focus and Outlook - **2025 Outlook**: Revenue is expected to remain approximately flat compared to 2024, with a commitment to remain net cash positive throughout 2025 [19] - **SEC Filing Status**: The company aims to regain current filing status with the SEC by 2026, with ongoing audits for fiscal years 2023 and 2024 [20][21] - **Leadership Transition**: Don Trigg, the new CEO, emphasizes improving profitability, reigniting growth, and becoming current with SEC filings as top priorities [29][36] Growth Initiatives - **Revenue Cycle Management**: Recent contracts indicate momentum in revenue cycle services, with a three-year deal valued at $2.7 million signed in the Southeast [32] - **Payer Insights**: The company has deployed its gap in care closure solution, Veradigm Payer Insights, across 10,000 practices and over 35,000 providers [33] - **Life Sciences Data**: Veradigm offers a significant ambulatory patient data set for pharmaceutical research, enhancing its collaboration with organizations like the American College of Cardiology [34][35] Challenges and Opportunities - **Operational Challenges**: The company acknowledges challenges but also sees advantages in its established client base and strategic data assets [29][49] - **Market Position**: Veradigm's reputation in the marketplace is seen as an opportunity to enhance operational value for clients, particularly in practice operations and financial management [48][49] Future Plans - **Capital Investment Discipline**: Increased discipline around capital investment is planned to maximize returns [30][38] - **Operational Improvements**: The company is reviewing its product portfolio and operational systems to enhance growth and profitability [31][36] Closing Remarks - **Commitment to Progress**: The leadership expresses excitement about the future and the strategic potential of Veradigm, aiming for a relisting of common stock in 2026 [54] This summary encapsulates the key insights from the Veradigm Investor Update Conference Call, highlighting the company's financial performance, strategic focus, growth initiatives, challenges, and future plans.

Financial Data and Key Metrics Changes - The company reported a record revenue of $40.8 million, representing a 10% increase compared to the prior period [9][21] - Annual recurring revenue (ARR) reached $28.5 million, up 31% year-over-year, marking the first time the company provided ARR at a specific point in time [10][23] - The company achieved a record underlying EBITDA of $5.1 million, an improvement of $8.5 million over the previous year [12] - Positive operating cash flow of $5.8 million was generated during the year, a turnaround of $12.9 million from the prior year [13][29] Business Line Data and Key Metrics Changes - The company signed new total contract value (TCV) of $73.8 million, more than doubling the previous year's figures [12][30] - The UK market contributed 63% of total revenue, surpassing the ANZ region for the first time [25] - The modular architecture of the Mya Precision platform allows for incremental sales without extensive implementation efforts, enhancing customer flexibility [5][39] Market Data and Key Metrics Changes - The company operates in three main geographies: Australia, New Zealand, and the United Kingdom, with plans for potential expansion into Canada, Saudi Arabia, and the UAE [6][42] - The company has seen significant investment and attention in patient flow solutions, which are critical for hospital administrators [34] Company Strategy and Development Direction - The company aims to scale existing core products and markets, particularly in EPR flow and virtual care opportunities [42] - There is a focus on leveraging Mya Precision capabilities in other health verticals such as aged care and community care [42] - The company is exploring mergers and acquisitions that are strategic and synergistic in nature [43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory, highlighting the importance of customer referenceability and the modular sales strategy [34][39] - The company anticipates continued growth in contracted revenue and expects EBITDA and positive operating cash flow for FY 2026 [41] Other Important Information - The company appointed new directors with extensive healthcare executive experience to strengthen its leadership team [15][17] - The North Cumbria contract, valued at over $39 million over ten years, is a significant milestone for the company [35] Q&A Session Summary Question: Can you provide more detail on the structure of capital license purchases? - The capital license includes an upfront component for a ten-year period, with ongoing support and maintenance fees that are annually recurring [46][47] Question: What does the pipeline look like for new contracts? - The pipeline continues to build due to customer deployments and market opportunities, but specific contract timelines cannot be predicted [48][49] Question: What are the expectations around staffing and expenses moving forward? - Staffing levels are expected to remain stable, with investments in sales and marketing capabilities [52][53] Question: How does the company plan to ensure future M&A activities deliver value to shareholders? - The company evaluates M&A opportunities based on valuation, expected returns, and support for future growth [55] Question: Should we expect gross margin expansion in FY 2026? - Gross margin expansion is expected to continue as ARR increases, barring any significant changes in product mix [57] Question: What is the opportunity in the UK market? - The UK market presents significant opportunities for digitization and modular solutions, although exact dollar values are uncertain [59][60] Question: Can the company offer trial software to new markets? - The company has successfully used trial software in the past to enter new markets and may consider similar approaches in the future [61][63]

Core Viewpoint - The company is focusing on developing integrated solutions in the fields of low-altitude rescue and health care robotics, leveraging its proprietary technology and addressing market challenges. Group 1: Company Developments - The company has launched a fully autonomous AED drone rescue solution, achieving a 4-minute emergency response time, which is an improvement over the traditional 15-minute response time with ambulances [2][4]. - The company is not manufacturing drones but providing comprehensive low-altitude rescue solutions, including software and control systems [2][4]. - The company is currently not involved in the brain-computer interface sector but is monitoring advancements in this area for potential applications in rehabilitation and human-computer interaction [2]. Group 2: Market Position and Challenges - The health care robotics industry is still in its early stages, facing challenges such as low public awareness, high costs, and a lack of standardized regulations [3]. - The company aims to build a smart health management platform that integrates intelligent interaction and health management, focusing on deep integration of software and hardware [3]. - The company is positioning itself as a leading player in low-altitude medical rescue, with plans to enhance urban emergency medical systems through its innovative solutions [3][4]. Group 3: Financial Insights - On August 8, the company’s stock closed at 15.05 yuan, down 1.51%, with a trading volume of 131,300 shares and a turnover of 198 million yuan [1]. - The net outflow of main funds on August 8 was 33.96 million yuan, accounting for 17.18% of the total turnover, while retail investors showed a net inflow of 31.15 million yuan, representing 15.76% of the total turnover [5][7].

Financial Data and Key Metrics Changes - Doximity reported revenue of $146 million for Q1 2026, representing a 15% year-on-year growth and a 4% beat from the high end of guidance [5][18] - Adjusted EBITDA margin was 55%, amounting to $80 million, which was 11% above the high end of guidance [5][6] - Free cash flow grew by 52% year-on-year, reaching $60.1 million [21] - Non-GAAP gross margin was 91%, slightly down from 92% in the prior year [20] Business Line Data and Key Metrics Changes - Unique active users across all engagement metrics hit record highs, with a significant increase in the use of workflow tools [7] - The Doximity AI Scribe launched, with over 10,000 healthcare professionals participating in beta testing, indicating strong initial adoption [8][9] - The Pathway acquisition is expected to enhance clinical reference tools, although no immediate revenue contribution is anticipated this fiscal year [22] Market Data and Key Metrics Changes - The company reported a net revenue retention rate of 118% on a trailing twelve-month basis, with the top 20 customers showing a higher retention rate of 119% [18] - The agency partners contributed to over 100% year-on-year bookings growth in the SMB customer segment [25] Company Strategy and Development Direction - Doximity is focusing on integrating AI tools into its offerings, with the Scribe and Pathway acquisition seen as pivotal for long-term growth [26][17] - The company aims to enhance physician productivity through its AI suite, which includes tools for note-taking and clinical question answering [17][26] - The strategy includes making clinical reference tools free to users, thereby increasing engagement and adoption [22][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's strength despite ongoing policy uncertainties, noting that client budgets remain robust [35][112] - The outlook for the full fiscal year is revenue guidance of $628 million to $636 million, reflecting an 11% growth at the midpoint [24] - Management remains cautious about the second half of the year, taking a measured approach to unbooked revenue due to policy uncertainties [35][112] Other Important Information - The company ended the quarter with $841 million in cash and equivalents, and repurchased $122.3 million worth of shares [21][22] - The Pathway acquisition cost $26 million in cash and up to $37 million in equity grants, with minimal impact on expenses expected this fiscal year [22][23] Q&A Session Summary Question: How can investors frame the opportunity with Scribe and Pathway? - Management highlighted that AI tools could represent a significant growth opportunity, potentially as large as previous product launches [28][32] Question: What insights are there regarding customer budgets for the second half of the year? - Management noted that while Q1 was strong, it is the smallest bookings quarter, and they are taking a cautious approach due to policy uncertainties [33][35] Question: Can you elaborate on the upsell cycle and the role of the client portal? - Management indicated that all business segments are performing well, with the client portal providing valuable insights that have driven significant growth in SMB customers [40][42] Question: What are the drivers of increased utilization of Doximity's products? - Management pointed to strong growth in workflow tools and telehealth products, with AI enhancing the newsfeed's relevance and engagement [46][50] Question: How does the Pathway acquisition fit into Doximity's overall strategy? - Management confirmed that Pathway's integration is progressing well, with plans to offer its tools for free to enhance user engagement [82][84]

Financial Data and Key Metrics Changes - CareCloud achieved GAAP net income of $2,900,000, a 73% improvement from $1,700,000 in the same period last year [6] - The company reported its first positive GAAP earnings per share at $0.04 compared to a loss of $0.14 per share in 2024 [6] - Year-to-date GAAP net income reached $4,900,000, more than tripling the amount reported in 2024 [7] - Adjusted EBITDA stood at $12,100,000, a 20% increase year over year [7] - Free cash flow reached $9,000,000, up 85% over the same period [7] - Revenue for the second quarter was $27,400,000, down approximately $700,000 year over year due to a one-time non-recurring revenue item in Q2 2024 [26] - Non-GAAP adjusted net income for the second quarter was $3,300,000 or $0.07 per share [27] Business Line Data and Key Metrics Changes - CareCloud Wellness generated approximately $1,000,000 in revenue for the quarter and approximately $1,800,000 for the first six months of the year [26] - The company reported positive GAAP operating income of $3,000,000 compared to $2,300,000 in Q2 2024 [26] Market Data and Key Metrics Changes - CareCloud has received ONC Health IT certification for its Talk EHR platform tailored specifically for critical access hospitals, opening access to a market of over 1,500,000,000 across more than 1,300 rural hospitals [22][23] Company Strategy and Development Direction - The company is focused on AI-driven innovation, operational discipline, and sustainable growth, marking a continuation of the transformation initiated in 2024 [5] - CareCloud is actively using AI to enhance provider and patient experiences while improving internal operations and cost structures [8][9] - The company has returned to a more active posture in M&A, completing two acquisitions this year aligned with its focus on specialty AI-powered revenue cycle management [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver profitability at scale and to lead the next wave of intelligent healthcare delivery [12] - The management team emphasized the importance of maintaining financial discipline and shareholder alignment, having declared nine consecutive months of preferred dividend payments funded entirely from free cash flow [10] - The company anticipates continued positive EPS and modest revenue increases in the second half of the year [75] Other Important Information - The AI Center of Excellence is fully operational, with 100 full-time AI professionals and 100 interns onboarded [13][14] - The company is embedding intelligence into its platform to improve operational efficiency and scalability [24] Q&A Session Summary Question: How does the company view the spend on the AI Center of Excellence relative to potential revenue opportunities? - Management indicated a threefold focus: generating incremental revenue, enhancing product competitiveness, and optimizing back-office operations [35] Question: How is the company approaching sales for new offerings targeting specialized practices? - The company sees opportunities in providing end-to-end solutions for specialty practices, particularly in areas where existing EHRs lack next-generation capabilities [39][41] Question: How did MedAssar Remote Patient Monitoring and Chronic Care Management perform? - Management reported stable revenue for MedAssar, with RPM expected to contribute about 5% or less to overall revenue [45][46] Question: What is the company's outlook on M&A and funding capacity? - The company is seeing an active M&A environment and believes it is well-positioned to pursue strategic acquisitions funded through internally generated cash flow and an untapped credit facility [54][56]

Group 1 - The core point of the article highlights the emergence of Healthcare Triangle Inc. as a new meme stock, experiencing a significant price surge of 115% to just over $0.05 without any apparent positive news [1][3] - On the trading day, Healthcare Triangle saw a trading volume exceeding 3 billion shares, accounting for approximately 15% of the total stock trading on U.S. exchanges that day [1] - The total trading value for Healthcare Triangle reached about $150 million, nearly seven times its market capitalization, indicating a stark contrast between trading activity and the company's size [3] Group 2 - The recent surge in meme stocks, including Healthcare Triangle, reflects a broader trend of speculative trading driven by social media discussions, short squeezes, and technical breakouts, despite a lack of fundamental support for these companies [6] - Analysts have noted a consensus regarding the speculative nature of the market, suggesting that the question is not if a correction will occur, but rather when it will happen [6] - Barclays has warned that certain areas of the market exhibit clear bubble characteristics, indicating a potential for a significant market correction [6]

Group 1 - The U.S. stock market showed mixed results with the Dow Jones down by 0.7%, while the Nasdaq rose by 0.18% and the S&P 500 increased by 0.07%. This was influenced by former President Trump's visit to the Federal Reserve, where he urged Chairman Powell to lower interest rates, marking the first visit by a sitting president in 20 years [1] - The Healthcare Triangle (HCTI.US) stock became a focal point in the U.S. market with a trading volume of 30.6 billion shares, accounting for approximately 15% of the total trading volume that day. The stock surged by 138% at the open and closed with a 115% increase at $0.051, with a total trading volume of $150 million, nearly seven times its current market capitalization [1] Group 2 - The Swift report indicated that in June 2025, the Renminbi ranked as the sixth most active global payment currency, with a share of 2.88%. The payment amount in Renminbi increased by 2.57% compared to May 2025, while the overall payment amount for all currencies rose by 2.85% [2] - The Shanghai Pudong New Area government released a plan to enhance the biopharmaceutical industry park from 2025 to 2027, focusing on attracting foreign investment and supporting the local production of innovative drugs [2] - The National Healthcare Security Administration reported that over 100 drug varieties have been submitted for inclusion in the innovative drug directory through single and dual directory applications [3] - The stock market index continued to show strong upward momentum with a trading volume around 1.9 trillion, indicating a robust trend that is likely to recover quickly even after adjustments [3] - The market is experiencing rapid sector rotation, with a recommendation to focus on the pharmaceutical and healthcare sectors for stability, while also considering rare earths, military, and technology sectors [3] - The main board stocks are facing high volatility, making it challenging for participation, thus suggesting a focus on the ChiNext and STAR Market based on trends [3]

Group 1 - Healthcare Triangle (HCTI.US) stock became a focal point in the U.S. stock market with a trading volume of 3.06 billion shares, accounting for approximately 15% of the total trading volume on that day [1] - The stock surged 138% at the opening and closed with a 115% increase at $0.051, with a total trading volume of $150 million, nearly seven times its current market capitalization [1] - This unusual volatility is seen as the latest case of the "Meme stock" craze, which has spread to several companies, including KSS.US, GPRO.US, DNUT.US, and OPEN.US, indicating a growing enthusiasm among retail traders for high-risk stocks [4] Group 2 - Market analysts note that retail investors are increasingly influenced by online opinion leaders rather than company fundamentals or long-term value, highlighting the role of social media in driving investment decisions [4] - The number of stocks involved in this speculative trading and the frequency of volatility are increasing, raising questions about whether these companies can replicate the capital-raising success seen by AMC.US and GME.US in 2021 [4] - Healthcare Triangle has not yet responded to the unusual market activity, which continues to test the boundaries of traditional market rules driven by social media [5]

Financial Performance - Revenue for the first quarter of fiscal 2026 was $115.9 million, representing a 15% year-over-year increase [10] - Adjusted EBITDA was $20.8 million, an increase of 16.7% year-over-year, with an adjusted EBITDA margin of 18% [11] - Cash and cash equivalents at the end of the quarter were $90.9 million, up from $84.2 million in the prior quarter [11] - Positive operating cash flow of $14.9 million, up $15.6 million year-over-year, and positive free cash flow of $7.5 million, up $13.7 million year-over-year [12] Business Lines Performance - Average healthcare services clients increased to 4,411, up 70 from the prior quarter and 346 from the prior year [10] - Total revenue per average healthcare services client was $26,283, up 6% year-over-year and 4% quarter-over-quarter [10] Market Data - The company is maintaining its revenue outlook for fiscal 2026 at a range of $472 million to $482 million [13] - The adjusted EBITDA outlook for fiscal 2026 has been updated to a range of $85 million to $90 million, an increase of $4.5 million from the previous guidance midpoint [13] Company Strategy and Industry Competition - The company focuses on delivering valuable and scalable products that drive meaningful outcomes for patients and providers, with an emphasis on AI integration across all aspects of the organization [8] - The company aims to grow its network through product-led growth and is well-positioned to allocate capital for long-term shareholder value [8] Management Commentary on Operating Environment and Future Outlook - Management noted that conversations with customers remain strong, with no significant hesitancy in decision-making despite macroeconomic conditions [19][25] - The company continues to see strong demand for its network solutions and is focused on building and delivering products that provide value [25] - Management expressed confidence in the company's ability to adapt to changing market conditions and maintain growth [8][25] Other Important Information - The company has approved a share repurchase plan for up to 2.5 million shares of common stock, aimed at being opportunistic in response to market conditions [81] - The company is optimistic about the potential of its Medifine platform, viewing it as a long-term contributor to revenue [93][95] Q&A Session Summary Question: Insights on network solutions growth and customer conversations - Management highlighted strong growth in network solutions and emphasized the importance of product development and delivery in driving results [19][20] Question: Provider market conversations and outlook - Management indicated that conversations with providers remain focused on delivering value through products, with no significant changes in the competitive landscape [25] Question: ROI visibility for network solutions customers - Management explained that clients can adjust campaigns based on performance, with a strong emphasis on delivering results [31] Question: Sales and marketing performance - Management noted that previous investments in sales and marketing are yielding returns, with expectations for continued growth [36] Question: Capital deployment opportunities - Management stated that while the cash position is improving, the approach to evaluating opportunities remains consistent, focusing on buy, build, or rent strategies [40][42] Question: Impact of proposed legislation on pharma advertising - Management acknowledged ongoing legislative discussions but emphasized the differentiated value of their platform [58] Question: Seasonality in network solutions revenue - Management clarified that fluctuations in revenue are more related to program pacing rather than strict seasonality [62] Question: Labor strategy and expense trajectory - Management explained that recent headcount changes were due to consolidation rather than new hiring strategies [54] Question: Cash conversion rates and payment processing revenue - Management indicated that cash conversion rates are expected to resemble first-quarter performance for the rest of the year [86] Question: Monetization of Medifine offering - Management described Medifine as still in early stages but showing positive revenue contributions [93][95]

Financial Performance and Key Metrics - Revenue for Q1 2026 was $115.9 million, representing a 15% year-over-year increase [9] - Adjusted EBITDA was $20.8 million, an increase of 16.7% year-over-year, with an adjusted EBITDA margin of 18% [10] - Average healthcare services clients increased to 4,411, up 70 from the prior quarter and 346 from the prior year [9] - Total revenue per average healthcare services client was $26,283, up 6% year-over-year and 4% quarter-over-quarter [9] - Cash and cash equivalents at the end of the quarter were $90.9 million, compared to $84.2 million in the prior quarter [10] - Positive operating cash flow of $14.9 million, up $15.6 million year-over-year, and positive free cash flow of $7.5 million, up $13.7 million year-over-year [11] Business Line Performance - The company is focused on delivering scalable products that drive meaningful outcomes for patients and providers, with AI integration across all aspects of the organization [6] - The company is maintaining its revenue outlook for fiscal year 2026 at a range of $472 million to $482 million, with an updated adjusted EBITDA outlook of $85 million to $90 million [12] Market Data and Key Metrics - The company is reiterating its outlook on average healthcare services clients (AHSCs) to reach approximately 4,500 in fiscal year 2026 [12] Company Strategy and Industry Competition - The company emphasizes product-led growth and aims to allocate capital to drive long-term shareholder value [6] - Management highlighted the importance of delivering products that provide value, which is crucial in a competitive market [23] Management Commentary on Operating Environment and Future Outlook - Management noted that conversations with customers remain strong, and the company has been resilient amid macroeconomic volatility [15] - The company is optimistic about its ability to grow its network and expand offerings, driven by a strong balance sheet and growing free cash flow [6][11] Other Important Information - The company has a share repurchase plan for up to 2.5 million shares, aimed at being opportunistic in response to market conditions [80][82] - The Medifine acquisition is still in its early stages, but it is expected to contribute to revenue growth in the future [94][96] Q&A Session Summary Question: Insights on network solutions growth and customer conversations - Management indicated that strong product development and a capable network solutions team are driving growth, with no significant hesitancy reported from customers [15][18] Question: Provider market conversations and outlook - Management noted that conversations with providers remain focused on delivering value through products, with no significant changes in the competitive landscape [22][23] Question: ROI visibility for network solutions customers - Management explained that campaigns can be adjusted based on client needs, and the company has a strong ROI, which drives continued investment from clients [27][29] Question: Sales and marketing performance - Management highlighted that previous investments in sales and marketing are yielding returns, with expectations for consistent expense trends moving forward [34][35] Question: Capital deployment opportunities - Management stated that while the cash position is improving, the evaluation of inorganic opportunities remains consistent, focusing on the best approach to growth [39][41] Question: Impact of flu season on performance - Management clarified that while there are seasonal factors, the introduction of new products like the patient bill pay product is contributing to volume growth [50][51] Question: Labor strategy and expense trajectory - Management explained that recent headcount changes were due to consolidation rather than new hiring, and the expense trajectory is expected to remain stable [53][54] Question: Proposed legislation on drug advertisements - Management indicated that while legislation is always a topic, the focus remains on the value proposition of their platform, which is differentiated [56][58] Question: Network solutions seasonality - Management noted that fluctuations in revenue are more related to program pacing rather than strict seasonality [60][61] Question: Subscription revenue growth - Management confirmed that the growth in revenue per provider client reflects successful product introductions and expansion within existing clients [65][67] Question: AI's impact on competitive landscape - Management observed that AI is enhancing their product offerings and driving value for clients, with a shift towards being a trusted partner in the market [74][76] Question: Share repurchase plan motivation - Management described the share repurchase plan as a means to be opportunistic in response to market volatility, without indicating a change in capital allocation strategy [80][82] Question: Cash conversion rates and payment processing revenue - Management indicated that cash conversion rates are expected to resemble Q1 performance for the rest of the year, with payment processing revenue following historical trends [86][88] Question: Monetization of Medifine offering - Management stated that Medifine is in the early stages of monetization but is expected to grow as the network expands [94][96]