CareCloud(US:CCLD)2021-02-27 22:55Financial Data and Key Metrics Changes - The company reported record revenue of $32 million for Q4 2020, representing a 103% increase year-over-year, and full-year revenue of $105.1 million, a 63% increase over 2019 [6][18] - Adjusted EBITDA for Q4 2020 reached a record $5.7 million, up 105% year-over-year, while full-year adjusted EBITDA was $10.9 million, a 34% increase compared to 2019 [6][20] - GAAP net loss for 2020 was $8.8 million, or $1.79 per share, while non-GAAP adjusted net income was $8.5 million, or $0.63 per share, marking an improvement of $1.7 million from the previous year [19][20] Business Line Data and Key Metrics Changes - The company experienced significant growth in its base business, with strong client retention and increased commitment from existing clients [7] - The acquisitions of CareCloud and Meridian were pivotal, contributing to revenue growth and expanding the product portfolio [7][12] - Organic bookings contributed 9% to revenue growth in 2020, with a focus on upselling existing clients and expanding into new markets [19][30] Market Data and Key Metrics Changes - The company noted a small decline in patient volumes due to COVID-19, averaging approximately 5% below historic levels in Q4 2020, which was less significant than in Q2 2020 [21] - The gross margin for Q4 was reported at 43%, with expectations to return to 45% to 50% over the next few quarters [23][24] Company Strategy and Development Direction - The company plans to increase its investment in sales and marketing by 40% to 60% in 2021, aiming to double its organic growth rate by Q4 2021 [30][46] - A rebranding initiative is set to take place, changing the company name to CareCloud, Inc., to better reflect its market position and unify its brand [9][61] - The company aims to leverage its acquisitions to enhance its product offerings and expand its total addressable market [15][57] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, expecting revenue growth of 27% to 30% in 2021, with guidance of $133 million to $137 million [13][26] - The company anticipates generating adjusted EBITDA of $22 million to $25 million in 2021, representing growth of 102% to 130% over 2020 [13][26] - Management acknowledged the challenges posed by COVID-19 but emphasized the company's strong position and record-breaking performance [28] Other Important Information - The company raised net proceeds of $44.5 million by issuing 1.9 million shares of non-convertible Series A preferred stock, some of which was used for acquisitions [25] - As of December 31, 2020, the company had approximately $20.9 million in cash and positive working capital of about $16 million [25] Q&A Session Summary Question: Areas of growth in revenue cycle management, practice management, and electronic health records - Management highlighted that organic growth came from upselling existing clients, with a focus on larger groups and enterprise sales [29][30] Question: Expected growth sources for 2021 - Growth is anticipated from new clients signed in 2020 and recovery in patient volumes as COVID-19 impacts lessen [38][39] Question: Cost rationalizations from Meridian acquisition - Management confirmed that cost-cutting measures are on track, with some challenges due to prior management efforts before acquisition [40][41] Question: Cadence of activity in 2021 - The company expects typical Q1 seasonality but anticipates a back-end loading of revenue due to COVID-19 impacts [42][43] Question: Bookings in Q4 and future expectations - Total bookings for the full year were approximately $15 million, with expectations to double that by Q4 2021 [45][46] Question: Efficiency of sales and marketing ROI - Management indicated that the customer acquisition cost is favorable, allowing for strategic acquisitions while maintaining organic growth [48][49] Question: Acquisition pipeline and COVID-19 impact - The acquisition pipeline remains robust, with COVID-19 potentially increasing opportunities for strategic acquisitions [51][57]