Financial Performance - Revenue for Q1 2025 was $27.6 million, an increase from $26 million in Q1 2024, reflecting ongoing demand for integrated AI-enabled RCM solutions [6][29] - GAAP net income for Q1 2025 was $1.9 million, a significant turnaround from a net loss of $241,000 in Q1 2024 [6][30] - Adjusted EBITDA rose to $5.6 million, up 52% year over year, representing 20% of revenue [7][30] - Free cash flow for Q1 2025 was $3.6 million, with a reduction in quarterly dividend obligations from approximately $3.9 million to $1.5 million following the conversion of Series A preferred stock [10][30] Business Lines and Market Data - Recurring technology-enabled business solution revenue was $17.7 million in Q1 2025, up approximately $400,000 from the previous year [29] - Non-recurring professional services revenue from MSR increased by approximately $1.5 million [29] - Remote Patient Monitoring (RPM) and Chronic Care Management (CCM) revenue grew by approximately 30% year over year, although it still represents a small portion of overall revenue [66] Company Strategy and Industry Competition - The company has launched an AI Center of Excellence, targeting a team of 500 AI professionals by the end of 2025, focusing on automating various healthcare processes [11][16] - Two strategic acquisitions were completed in early 2025, marking a return to M&A after nearly four years, aimed at disciplined accretive growth [12][14] - The company aims to leverage AI for operational efficiency and long-term product innovation, positioning itself as a leader in intelligent healthcare automation [20][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive sustainable value for shareholders and clients, reaffirming guidance for 2025 revenue of approximately $111 million to $114 million [32][34] - The company does not anticipate significant pressure on demand for its services due to external economic factors such as tariffs or inflation [31][32] Other Important Information - The company has improved its financial position significantly over the past year, returning to profitability and reducing dividend commitments [34] - A Form S-3 shelf registration statement has been filed and is now effective, providing flexibility for future capital needs [33] Q&A Session Summary Question: Key factors for revenue growth and quarter performance - Management noted that the revenue growth was driven by a large project in MedSR and emphasized a focus on existing client sales and new opportunities facilitated by specialty-specific EHRs [36][38] Question: Timeline for AI product development - Management indicated that over 50 employees have been hired for the AI initiative, with regular updates on project progress and performance metrics to be communicated quarterly [41][42] Question: Seasonality of the business - Management acknowledged that Q1 is typically lower due to deductibles but expressed optimism about achieving overall revenue targets for the year [44][45] Question: Capital allocation priorities - The company plans to prioritize reinvestment in AI while also pursuing tuck-in acquisitions that align with existing capabilities [49][51] Question: Sustainability of cost efficiencies - Management believes that the reduction in cost of goods sold as a percentage of revenue is sustainable and will continue to seek further efficiencies [68][70] Question: Tax rate expectations - The company expects its low tax rate to remain consistent due to sufficient net operating losses [73]