Financial Data and Key Metrics Changes - Total revenue for Q4 fiscal 2024 was $4.7 million, down from $5.4 million in Q4 fiscal 2023 [14] - For the twelve months ended January 31, 2025, revenue totaled $17.9 million, compared to $22.6 million in fiscal 2024 [14] - SaaS revenue for Q4 fiscal 2024 was $3.1 million, representing 66% of total revenue, down from $3.4 million or 64% in Q4 fiscal 2023 [15] - Net loss for Q4 fiscal 2024 was $2.1 million, compared to a net loss of $1.4 million in Q4 fiscal 2023 [16] - Cash and cash equivalents as of January 31, 2025, were $2.2 million, down from $3.2 million a year earlier [17] Business Line Data and Key Metrics Changes - Booked SaaS ACV as of January 31, 2025, was $14 million, increasing to $14.6 million by April 30, 2025 [7][14] - The company experienced $1.4 million in new SaaS ACV bookings, offset by $700,000 in churn due to client acquisitions [7] - SaaS revenue for the twelve months ending January 31, 2025, totaled $11.8 million, down from $14.1 million in the previous fiscal year [15] Market Data and Key Metrics Changes - The company noted a surge in denial activity across the industry, particularly from commercial payers, impacting revenue cycle management [11] - The introduction of denial prevention functionality is expected to significantly enhance the financial impact of the eValuator platform [10] Company Strategy and Development Direction - The company has decided to discontinue selling its quality module as an independent unit to focus resources on more impactful initiatives like denial prevention [9] - The new denial prevention functionality is expected to expand the inpatient financial impact of eValuator by over 15% and potentially double the impact on outpatient cases [10] - The company aims to achieve an EBITDA profitable run rate during the first half of fiscal 2025 [14][13] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of helping healthcare systems succeed in revenue cycle management to ensure they are paid for the care provided [13] - The company is optimistic about future bookings due to increased client engagement and successful user stories shared at conferences [27] Other Important Information - The company amended certain financial covenants related to its senior term loan and revolving line of credit on March 28, 2025 [17] - An additional $1 million was drawn from the revolving line of credit after the fiscal period ended [18] Q&A Session Summary Question: Can you talk about the denials prevention product and its marketability? - Management highlighted the value of the new denial prevention functionality, which helps clients ensure claims are accurate before submission, addressing a significant industry issue [22][23] Question: What changes have enabled quicker implementation timelines? - Management noted improvements in standardizing data and training, resulting in reduced implementation times for eValuator from four to six months to two to three months [25][26] Question: What gives confidence in building momentum for stronger bookings? - Management indicated that increased client engagement and successful case studies shared at events have led to more top-of-funnel activity, suggesting a positive trend in bookings [27][28]

Financial Data and Key Metrics Changes - Total revenue for Q1 was $66.8 million, a 12% increase compared to Q1 2024, and a 25% increase when normalizing for the sale of Amwell Psychiatric Care [23][24] - Subscription software revenue accounted for 48% of total revenue at $32.2 million, up 30% year-over-year [24][29] - Adjusted EBITDA improved to negative $12.2 million from negative $45.6 million in Q1 2024, reflecting ongoing cost reduction efforts [29] Business Line Data and Key Metrics Changes - The company completed approximately 1.3 million visits in Q1, which is about 23% lower than the previous year, but normalized visits were only 21% lower [25] - AMG's visit revenue trended 14.3% lower year-over-year at $26.6 million, but normalized visits were up 6.6% [26] - Average revenue per visit was $71, which is 8% lower compared to last year's Q1, but normalized revenue per visit was 8% higher [26] Market Data and Key Metrics Changes - The company is experiencing a shift towards technology-enabled care, with increasing consumer demand for online healthcare services [15][21] - The military health system is now fully utilizing the platform for virtual visits, positioning the company strongly in the federal market [11][12] Company Strategy and Development Direction - The company aims to achieve positive cash flow from operations by 2026, focusing on increasing the mix of subscription software revenues [6][30] - The recent hire of Dan Zemanski as Chief Product and Technology Officer is expected to enhance the company's technological capabilities and streamline consumer experiences [10][40] - The company is committed to driving efficiencies and optimizing cash flow while expanding its market presence [11][20] Management's Comments on Operating Environment and Future Outlook - Management noted that despite macroeconomic uncertainties, the demand for their platform is increasing as it provides significant ROI for clients [52][63] - The company remains confident in the renewal of its contract with the Defense Health Agency, which is expected to be finalized soon [32][70] - Management expressed optimism about the future, highlighting the potential for growth in technology-enabled care [21][35] Other Important Information - The company ended Q1 with $222 million in cash and marketable securities and zero debt [29] - The guidance for 2025 includes expected revenue in the range of $250 million to $260 million, with subscription revenue anticipated to represent nearly 60% of total revenues [30][31] Q&A Session Summary Question: Can you talk about bookings trends for CONVERGE and the impact of Dan's hire? - Management noted good receptivity to the platform beyond the DHA, with Dan's expertise expected to enhance consumer experience and data infrastructure [37][39] Question: Is the current gross margin rate sustainable for the rest of the year? - Management indicated that gross margins should improve as software revenues increase, with expectations of reaching 75-90% margins [44][45] Question: Have macroeconomic factors impacted sales timelines? - Management acknowledged market uncertainty but emphasized that their platform is seen as a solution to efficiency and revenue growth [51][53] Question: What is the status of the DHA contract and other government opportunities? - Management expects no significant changes in the economics of the DHA contract and highlighted the successful implementation of their platform across the military health system [56][58] Question: What is the company's direct exposure to tariffs? - Management stated that direct exposure to tariffs is minimal, as most hardware is sourced from third parties, and the business primarily focuses on software [62][63] Question: How is churn being managed, and what is the outlook for the selling season? - Management reported lower-than-expected churn and noted increased interest from both health systems and payers in their products [82][84]