CareCloud(US:CCLD)2020-11-10 00:08Financial Data and Key Metrics Changes - The company reported record revenue of $31.6 million for Q3 2020, an increase of 88% compared to Q3 2019 [9] - Adjusted EBITDA reached a record $4.2 million, up 68% year-over-year [10] - Adjusted net income for Q3 was $3.5 million, a 58% increase from the previous year [10] - Year-to-date revenue for the first nine months of 2020 was $73.1 million, compared to $48.7 million in the same period of 2019, marking a 50% increase [40] Business Line Data and Key Metrics Changes - The company has significantly increased its sales and marketing investment, growing from 2.2% of revenue in the first nine months of 2019 to 6.5% in the same period of 2020, contributing to revenue growth [40] - The company has closed more than twice as much new organic business compared to all of 2019 [19] Market Data and Key Metrics Changes - The company serves approximately 40,000 providers across the country, with around 12,000 to 13,000 utilizing end-to-end revenue cycle management (RCM) [63] - Patient volumes are currently about 5% below pre-COVID levels, with many providers operating at near pre-COVID capacity [81] Company Strategy and Development Direction - The company is focused on empowering healthcare providers with tech-enabled solutions and has a robust acquisition strategy, having acquired CareCloud and Meridian Medical Management [15][36] - The company aims to achieve annualized revenues of over $130 million and adjusted EBITDA of more than $24 million by the end of 2020 [23][54] - The company is expanding its product offerings, including Precision BI and robotic process automation (RPA), to enhance its competitive position [25][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth of over 60% year-over-year and adjusted EBITDA growth of nearly 50% or more [23] - The company believes it is well-positioned to support healthcare providers during the ongoing COVID-19 pandemic [14] - Management anticipates continued organic growth and is optimistic about the potential for future acquisitions [68] Other Important Information - The company has approximately $22.8 million in cash and has paid 60 consecutive monthly dividends on its preferred stock [52] - The company expects to end 2020 with a historic annualized revenue run rate of $130 million or greater [53] Q&A Session Summary Question: Guidance and Top-Line Growth - Management clarified that the 60% year-over-year growth refers to 2020 compared to 2019, with guidance for 2021 to be provided in Q1 of next year [58] Question: Depreciation and Amortization - The $3.2 million in depreciation and amortization for Q3 includes both CareCloud and Meridian, and is considered a good baseline going forward [60] Question: Priorities for Business Optimization - Management emphasized the importance of both optimizing current business and pursuing new acquisitions, with expectations of 25% to 30% adjusted EBITDA margins in 2021 [61][62] Question: Changes in Customer Base Post-Acquisitions - The company has seen increased involvement with larger hospital clients and multi-specialty groups, enhancing cross-selling opportunities [64] Question: Organic Growth Strategy - Management indicated that a significant portion of organic growth will come from cross-selling and upselling to existing customers, with 20% to 25% of bookings currently from these efforts [87]