Financial Data and Key Metrics Changes - Bookings in Q3 2024 were $21 million, an increase of 40% year-over-year, marking the fourth consecutive quarter with over $20 million in total bookings [31][41] - Revenue for the quarter was $83.8 million, up just over 1% compared to the previous year, with total year-to-date cash flow from operations reaching $21.8 million, an improvement of $8.5 million from the prior year [32][25] - Adjusted EBITDA for the quarter was $13.8 million, a 42% increase year-over-year, with an adjusted EBITDA margin of 16.5%, up from 11.4% in Q1 and 14.8% in Q2 [38][45] Business Line Data and Key Metrics Changes - Financial Health revenue, including Viewgol, was $54.3 million, representing 65% of total revenue and up approximately 17% year-over-year; excluding Viewgol, organic revenue grew 5.3% [33][34] - Patient Care revenue was $29.6 million, down 18% compared to last year, primarily due to the impact from AHT and Centriq [34] Market Data and Key Metrics Changes - The company reported a decrease in accounts receivable balance by 5% sequentially, with Days Sales Outstanding (DSOs) improving by approximately eight days from Q1 [25] - Total gross margins increased to 49.5%, up 250 basis points year-over-year, with Financial Health gross margins at 46.2%, an increase of 450 basis points [35] Company Strategy and Development Direction - The company is focusing on integrating its Viewgol acquisition and expanding its workforce in India to support customer transitions, aiming to double the number of customers supported by its Indian team by the end of 2025 [10][12] - The management is emphasizing the importance of maintaining customer satisfaction during the transition to offshore services while also aiming for significant margin improvements in 2025 [12][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of bookings and pipeline, indicating a positive outlook for the remainder of the year and beyond [22] - The company is navigating challenges in the labor market and billing complexities, particularly with the shift towards Medicare Advantage plans, which is expected to drive demand for their services [49][60] Other Important Information - The company announced changes to its Board of Directors, with Denise Warren stepping down and Amy O'Keefe being elected to the Board, bringing valuable financial and operational expertise [18][19] - The company is rationalizing its real estate footprint, having sold property in Mobile, Alabama for $2.8 million gross [29] Q&A Session Summary Question: Insights on net new clients and macro demand backdrop - Management noted traction in the 100 to 400 bed hospital space and ongoing labor pressures impacting billing complexity, which is driving demand [48][49] Question: Savings from offshoring and future expectations - Management indicated that net savings from offshoring are expected to increase in Q4, with more robust numbers anticipated in 2025 [51][52] Question: Competitive environment and product announcements - Management acknowledged competition but emphasized their focus on incremental improvements and customer support, which differentiates them in the market [60][61] Question: Revenue cycle cross-sales and client transitions - Management highlighted the importance of consistent cash collections and the integration of EHR and RCM services as key factors in successful cross-sales [72][75] Question: Impact of claim denials from MCOs - Management confirmed that increases in claim denials are a challenge but also an opportunity to enhance their technology and processes to improve acceptance rates [86][87]
TruBridge(TBRG) - 2024 Q3 - Earnings Call Transcript