TruBridge(US:TBRG)2022-11-01 23:03Financial Data and Key Metrics Changes - Total revenue for Q3 2022 was $83 million, with a year-over-year increase of 18% [6][37] - EBITDA for the quarter was $13.3 million, representing a 9% increase compared to the prior year [7][43] - Gross margin decreased to 45.9%, down 440 basis points year-over-year due to the inclusion of lower-margin services from HRG and implementation delays in GRH [41] - Operating expenses as a percentage of revenue improved to 39.9%, down from 43.9% year-over-year [42] Business Line Data and Key Metrics Changes - TruBridge generated $47.9 million in revenue, a 39% increase year-over-year, with 94% of its revenue being recurring [6][37] - Evident, the core EHR business, accounted for about 40% of total revenue, but bookings declined year-over-year due to a shift towards RCM services [19][20] - Get Real Health (GRH) contributed just over $1 million in revenue, with growth expected as the business matures [18][38] Market Data and Key Metrics Changes - The TruBridge pipeline tripled from $5.6 million to $17.3 million year-over-year, indicating strong demand for services [13] - Cross-sell bookings increased by 30% sequentially and were more than 3.5 times those of Q3 2021 [36] - The overall market for RCM services is robust, particularly in a post-COVID environment where hospitals face resource constraints [12] Company Strategy and Development Direction - The company aims to strengthen relationships with partners and customers, focusing on improving client experience and delivering innovative product enhancements [10] - CPSI is committed to growing its core business, operational efficiency, and making key investments in adjacent markets like Get Real Health [28][29] - Leadership changes were announced to align business units with the go-to-market strategy, enhancing operational transparency and excellence [21][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains challenging, with hospitals facing financial pressures and staffing shortages [12] - The company reiterated its revenue guidance for the full year at $320 million to $330 million, despite a slight reduction in EBITDA margin expectations due to delays in GRH implementations [46][47] - Management expressed confidence in the long-term outlook, emphasizing the importance of strategic acquisitions and customer satisfaction [48] Other Important Information - CPSI repurchased $4 million of its shares during the quarter as part of its capital allocation strategy [45] - The company is focused on transitioning to a business model with more predictable and recurring revenue streams [40] Q&A Session Summary Question: Pricing Environment Impact - Management indicated that they have not seen significant price hikes in the EHR market, with prices holding steady or slightly decreasing due to increased efficiency [52][53] Question: Get Real Health Delays - Delays in GRH implementations were attributed to customer-driven issues, including integration challenges and marketing strategy timing [56][57] Question: Partnership with i2i Population Health - The partnership is expected to contribute a negligible revenue increment in 2023 but has long-term significance due to existing integrations and customer needs for quality-based reporting [60][62]