Financial Data and Key Metrics Changes - The company reported a 29% growth in healthcare revenue compared to Q1 2024, with adjusted EBITDA of over $3 million, a significant improvement from an adjusted EBITDA loss of $1.2 million in the same quarter last year [5][6][26] - Total company revenues reached $33.3 million, reflecting a year-over-year growth of 22%. Excluding $1.5 million of customer care revenue from the prior year, revenue grew almost 30% [18][19] - Adjusted EBITDA for the quarter was $3.3 million, compared to a loss of $1.2 million in Q1 2024, indicating strong revenue growth and efficiency gains [26][27] Business Line Data and Key Metrics Changes - Claims-based business revenue was $17.1 million, showing a 38% year-over-year growth, while eligibility revenue was $16.1 million, representing a 20% increase compared to last year [19][20] - The company implemented 13 commercial programs in the quarter, expected to contribute $4.5 million to $5 million in annualized revenue at steady state [9][21] Market Data and Key Metrics Changes - The commercial market remains a significant opportunity, with a robust pipeline of both existing and new client opportunities [9][22] - The company is seeing a rebound in government revenue, indicating a positive trend in the healthcare payment integrity market [12][20] Company Strategy and Development Direction - The company is focused on strategic investments to drive sustainable, profitable long-term growth, with a commitment to technology advancements and client-centric partnerships [7][15] - The implementation of the New York State Medicaid RAC contract is a key focus, with expectations of double-digit annualized revenue at steady state [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth strategy and the alignment of its mission with the current administration's focus on reducing fraud, waste, and abuse in healthcare [12][13] - The company anticipates each quarter to be EBITDA positive moving forward, with expectations of achieving positive free cash flow by the end of 2025 [26][27][28] Other Important Information - Operating expenses were approximately $33 million, driven by spending to operationalize new implementations and technology investments [24] - The company is well insulated from tariff pressures, with 100% domestic revenue and expense structure [23] Q&A Session Summary Question: What was the main driver for the faster growth in claims-based services revenue compared to eligibility-based revenue? - The main driver was the mix of implementations, with a stronger focus on claims-based business in recent years [31] Question: What should be expected regarding adjusted EBITDA guidance and potential declines in the middle of the year? - Management does not anticipate losses but expects a slight decline due to investments in the New York RAC implementation and the wind down of Region 5 [33] Question: Can an update on project turning and tech initiatives be provided regarding ROI expectations? - Initial product integrations are expected to start operationalizing this quarter, leading to higher efficiency and expanded EBITDA margins [34]