TruBridge(US:TBRG)2020-11-08 04:26Financial Data and Key Metrics Changes - The company reported total bookings of $21.5 million for Q3 2020, marking a 7% sequential improvement but down 9% year-over-year [11] - Revenues increased nearly $9 million or 15% sequentially, with adjusted EBITDA rising by $4.4 million or 60% [13] - Recurring revenues constituted approximately 83% of total revenues, increasing 7% sequentially but down 1% year-over-year [13][14] Business Line Data and Key Metrics Changes - TruBridge revenues increased 13% sequentially, driven by improved patient volumes, with gross margins improving from 44.6% to 45.3% [14] - System sales and support revenues rose by $5.7 million or 16% sequentially, although they decreased by $600,000 or 1.5% year-over-year [17] - Post-acute segment bookings reached $2.2 million, marking the highest booking period in 15 quarters [11] Market Data and Key Metrics Changes - Patient volumes remain approximately 15% below pre-COVID levels, with some recovery noted in elective procedures [15][36] - The company is experiencing increased adoption of its Get Real Health patient engagement products, with over 0.5 million users engaged in Canada [7] Company Strategy and Development Direction - The company is focusing on long-term recurring revenue growth through SaaS offerings, with over 70% of new Acute Care EHR contracts signed in Q3 being SaaS [11] - A share repurchase program of up to $30 million has been authorized, with the quarterly dividend suspended indefinitely to prioritize capital flexibility [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of patient volumes and the potential for long-term growth despite current challenges [5][8] - The company anticipates providing long-term guidance metrics with the release of full-year 2020 results next quarter [8] Other Important Information - The company has seen a significant increase in TruBridge bookings, up 31% sequentially, although down 24% year-over-year due to tough comparisons [12] - Operating cash flows were $8.1 million, effectively flat year-over-year, with a net reduction in bank debt of $31 million over the past 12 months [20] Q&A Session Summary Question: Can you help us scope the Get Real Health deals in Maryland and Rhode Island? - Management confirmed these are recurring revenues based on a SaaS model, with contracts for a period of 3 years [25] Question: Where are you in terms of consumer strategy using Get Real Health? - The company is working on consolidating patient data from different providers into a single portal, which has received positive feedback [26] Question: Can you remind us about the revenue and margin tied to transactions processed for clients? - Approximately 80% of TruBridge's revenue is transaction-based, with a significant portion also being performance-based [33] Question: What are you seeing in elective procedures across different markets? - Elective services have seen a rebound, particularly in surgical facilities, while ER volumes remain static at 15% to 20% below pre-COVID levels [35] Question: How has the $10 billion targeted to rural hospitals impacted your bookings trends? - The funding has helped build confidence among hospitals to invest in IT and services, which is expected to continue [45] Question: Can you size the Get Real Health business and its U.S. versus international mix? - GRH's contribution was $0.5 million this quarter, with the overwhelming majority of revenue coming from international markets [46][47] Question: What progress has been made on the cloud transition front? - The company expects to finish the year with about 25 net new acute care implementations, with 17 in a SaaS environment, surpassing initial goals [52]