Financial Data and Key Metrics Changes - Q1 revenue reached $483.6 million, impacted by two offsetting items, with an adjusted revenue estimate of approximately $450 million without these items [22][24] - The company ended the quarter with cash of $247 million and total liquidity exceeding $300 million, resulting in a net leverage ratio of 4.1 times the last twelve months adjusted EBITDA [27] Business Line Data and Key Metrics Changes - The company added five new revenue agreements in Q1, expanding its reach in surgical management, medical oncology technology services, and musculoskeletal services, expected to generate approximately $10 million in annualized revenue [6][8] - Renewals with existing customers remain strong, with one of the top 10 customers renewing through 2030 [8] Market Data and Key Metrics Changes - The selling environment across Technology and Services and the Performance Suite is reported to be very favorable, with the Performance Suite pipeline being the largest in the firm's history [9] - The company remains less than 5% penetrated in its broader revenue opportunity across all products, indicating significant growth potential [9] Company Strategy and Development Direction - The company focuses on three pillars for shareholder value creation: organic growth, expanding profitability, and optimal capital allocation [5] - Plans for 2025 include balance sheet management, debt paydown, and purchasing oncology navigation assets to accelerate oncology strategy [11][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding long-term growth targets, citing strong demand for specialty condition management solutions [5] - The company anticipates positive operating cash flow for the remainder of the year and plans to continue investing in organic growth [11] Other Important Information - The company reported an employee engagement rate of 89%, indicating strong internal morale which is seen as a leading indicator of performance [19] - The company is not currently expecting any new M&A transactions in the near term but views it as an attractive long-term strategy [11] Q&A Session Summary Question: Is the PMPM level a good baseline going forward? - Management indicated that the current PMPM level is a good baseline, with expectations for a slight increase due to a large new performance suite go-live later in the year [36] Question: What is the visibility on the oncology trend? - Management provided insight that leading indicators show a slight decrease in authorizations, with claims completion for Q1 being about 55-60% complete [40][41] Question: Can you elaborate on the expansion of oncology products? - Management highlighted that the navigation solution is expected to increase value or savings opportunities by 10% to 20%, enhancing the overall oncology management approach [46] Question: What was the growth reduction from recontracting? - Management noted that approximately 600,000 lives converted out of performance suites into technology and services, offset by growth in other areas [49] Question: How has the competitive environment evolved? - Management stated that the competitive environment has not changed significantly, with consistent win rates and a strong pipeline indicating ongoing demand [75] Question: How would potential tariffs impact the model? - Management indicated that performance suite arrangements contain clauses allowing for updates to capitation rates in response to significant changes in unit costs, minimizing potential impacts on profitability [80]

Financial Data and Key Metrics Changes - Q4 revenue was $109.7 million, up 15% year over year [5] - Q4 adjusted EBITDA was $16.4 million, up from $19.9 million year over year, with an adjusted EBITDA margin of 15% [5] - Average healthcare services clients reached $4,341, an increase of $104 from the prior quarter and $379 from the prior year [5] Business Line Data and Key Metrics Changes - Strong growth was noted in network solutions, with management indicating that underlying market conditions for 2026 are expected to be similar to 2025 [10] - Total revenue per AhSE metric grew by 5% year over year, and 7% when excluding the clearinghouse impact, but was flat sequentially [16] Market Data and Key Metrics Changes - Management acknowledged that calendar factors, such as business days and holidays, significantly impacted Q4 performance [17] - The company is closely monitoring macroeconomic factors, including consumer confidence and Medicaid changes, but has not seen significant impacts on business yet [46] Company Strategy and Development Direction - The company aims to leverage AI and automation to improve internal productivity and enhance network solutions [19] - Management emphasized the importance of capital allocation for durable growth, balancing organic and inorganic opportunities [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining financial outlook and visibility in network solutions, indicating no changes since previous assessments [42] - The company is positioned to benefit from larger entrants in the market, with improved close rates noted [26] Other Important Information - The company celebrated its 20th anniversary, reflecting on its mission to make care easier every day [4] - Management highlighted the value of new products like appointment readiness and patient bill pay, which are expected to enhance client engagement and revenue [32][33] Q&A Session Summary Question: Comments on gross margin expansion and expense leverage - Management noted that mix is a significant driver of gross margin improvements, with payment processing associated with lower margins [9] Question: Market conditions for network solutions in 2026 - Management indicated that conditions are expected to be similar to 2025 [10] Question: Insights on postscript engagement product - Management described the product as impression-based, similar to other offerings [13] Question: Impact of calendar on revenue per AhSE metric - Management acknowledged that calendar factors and external events like the LA fires affected Q4 performance [17] Question: Progress on leveraging AI and automation - Management shared positive feedback on AI applications used internally, indicating valuable results [19] Question: Critical mass for new products in pharma customer base - Management stated that products are designed with scale in mind and are often ready for market upon announcement [24] Question: Competitive dynamics in the market - Management noted improved close rates and a beneficial impact from larger market entrants [26] Question: Update on patient bill pay rollout - Management expressed excitement about the product's value and its potential to generate additional revenue [33] Question: Capital deployment priorities for fiscal 2026 - Management reiterated a consistent approach to capital allocation focused on durable growth [48]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $87.4 million, an increase of 2% year-over-year, and adjusted EBITDA of $17.2 million, which was a 44% increase compared to the previous year [8][10]. - The full year revenue for 2024 was $339 million, with adjusted EBITDA of $53 million, exceeding the high end of guidance ranges [10][56]. - Cash flow from operations improved to $10.3 million in Q4, a $23 million increase compared to the previous year, and full year cash flow from operations reached $32 million, up from just over $1 million in 2023 [9][38]. Business Line Data and Key Metrics Changes - Financial Health revenue for Q4 was $54.7 million, up 7.3% year-over-year, representing approximately 63% of total revenue, driven by core CBO offerings and Viewgol [49]. - Patient Care revenue decreased by 6.3% year-over-year to $32.7 million, impacted by the divestiture of AHT and the sunsetting of Centriq, although excluding these, revenue was higher year-over-year [50]. - Total bookings for the year were $82 million, with Financial Health bookings flat year-over-year at $49 million and Patient Care bookings up 6% to $33 million [54][56]. Market Data and Key Metrics Changes - The company noted that 75% of the time, no decision remains the reason for not closing a deal, rather than losing to a competitor, indicating a potential market opportunity [17]. - The market for hospitals with 100 to 400 beds grew from 5% to over 20% of financial health opportunities in the pipeline from 2023 to 2024 [16]. Company Strategy and Development Direction - The company plans to continue focusing on improving customer satisfaction, retention, and profitability while expanding its presence in the 100 to 400 bed hospital market [18][34]. - A new leadership was brought in for the financial health business unit to enhance customer satisfaction and pipeline expansion [19][20]. - The company aims to double the percentage of CBO clients supported by the global workforce from 30% to 60% by the end of 2025 [24]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, despite some uncertainty regarding healthcare funding changes from the government, which could impact deal timing [13][106]. - The company expects to achieve mid-single digit revenue growth and EBITDA margins in the mid-20s over the next few years [32][60]. - Management highlighted the importance of improving forecasting and accounting processes to enhance predictability and control [46][47]. Other Important Information - The company reduced its leverage ratio from over 4 times to 3 times and plans to continue de-levering [11][40]. - Total gross margins improved to 53% in Q4, up 390 basis points year-over-year, with Financial Health gross margins at 49.1% and Patient Care gross margins at 59.6% [51][52]. Q&A Session Summary Question: Can you speak to the visibility on closing remaining deals expected to close in Q4? - Management indicated that some deals were delayed due to uncontrollable factors but remain optimistic about closing them in the first half of 2025 [64][66]. Question: What are the expectations for sales and marketing initiatives in 2025? - The company plans to increase investments in marketing to enhance brand exposure and drive cross-sell opportunities, particularly targeting hospitals that do not currently use their EHR [68][70]. Question: How does the company view the growth among its two segments for 2025? - Financial Health is expected to be the primary growth driver, while Patient Care is anticipated to see low single-digit growth [85][87]. Question: Can you provide insights on the demand environment and metrics like pipeline and win rate? - The company noted that about 40% of bookings come from opportunities opened and closed within the same quarter, and the win rate is above 50% when excluding no-decision outcomes [89][95]. Question: How does the company plan to handle the 60 renewals in 2025? - The renewals are spread throughout the year, and the company is focused on ensuring customer satisfaction to retain these clients [99][103].