CareCloud(US:CCLD)2022-05-09 16:52Financial Data and Key Metrics Changes - Revenue for Q1 2022 was $35.3 million, representing a 19% year-over-year increase and slightly exceeding expectations [8][24] - Adjusted EBITDA was $4.7 million, reflecting a 28% increase compared to $3.7 million in the previous year [27] - Adjusted net income was $3.5 million, or $0.23 per share, marking a 20% year-over-year increase [27] - GAAP net income improved to $1.1 million from a net loss of $2 million in the previous year [27] - Adjusted EBITDA margin increased to 13.4% from 12.4% year-over-year [28] Business Line Data and Key Metrics Changes - Revenue from technology-enabled solutions accounted for 85% of total revenue, with 48% from core technology suite clients, 15% from clients using additional components, and 22% from IT services [24] - Revenue growth was significantly driven by medSR, which achieved record revenue during Q1 and increased its backlog [26] Market Data and Key Metrics Changes - The sales pipeline increased nearly 50% year-over-year to $22 million, with total pipeline standing at approximately $40 million at quarter end [18][19] - Enterprise accounts represented 50% of the pipeline improvement, up from 36% in the previous year [20] - Force program contributed 10% to pipeline growth, a fivefold increase year-over-year [21] Company Strategy and Development Direction - The company aims to become a leading technology and solution supplier to healthcare providers, focusing on innovation and cross-selling opportunities [9] - New products launched include CareCloud Remote and CareCloud Wellness, targeting home health and chronic care management markets [10][12] - The Force initiative is designed to create partnerships rather than acquisitions, enhancing service offerings and revenue potential [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2022 targets, citing strong early results and a healthy sales pipeline [22][21] - The company anticipates a normal seasonal cadence in revenue, with Q2 expected to show increased activity compared to Q1 [40] - Management noted that the enterprise deals, while taking longer to close, offer higher margins and better growth opportunities [62] Other Important Information - The company ended Q1 with $10.1 million in cash and generated $3.1 million in cash flow from operations [29] - Guidance for 2022 remains unchanged, with expected revenue between $152 million and $155 million [30] Q&A Session Summary Question: Size of the commercial team and efficiencies - The U.S. team consists of approximately 32 resources, with an additional 22 on the digital marketing side, and plans to hire more senior positions [34] Question: Growth drivers from CareCloud Force - The Force program has seen a fivefold increase in opportunities, with a significant increase in bookings for Q1 [36][37] Question: Anticipated top line for the year - Revenue is expected to follow a normal seasonal pattern, with Q2 showing more activity and Q3 being the peak [40] Question: Positioning of CareCloud Wellness - CareCloud Wellness is positioned as a risk-free model for existing clients, with no additional operational expenses [45][46] Question: Dynamics of medSR's revenue - medSR had a strong quarter, contributing positively to overall revenue, while the core business remained roughly flat [51] Question: Changes in sales cycles - Enterprise deals may take longer to close but offer better long-term growth opportunities [62] Question: R&D expenditure run rate - R&D expenses are expected to remain constant, with some fluctuations based on product development stages [65] Question: Competitive wins in the university segment - Recent wins in the university segment are expected to lead to broader adoption of CareCloud's platform [53][69]