CareCloud, Inc. Q3 FY2024 earnings call

• Fully paid down $10 million credit line, demonstrating strong financial management. - On track to resume monthly dividend payments on Series A and Series B preferred shares starting March 2025. - Q3 adjusted EBITDA was $6.8 million, up 111% year-over-year. - Focused on advancing CareCloud CirrusAI, an AI solution streamlining administrative tasks and clinical documentation. - Reduced reliance on third-party contractors, leveraging in-house experts. - Series A preferred shareholder proposal passed with 89% support, providing protections, equalizing dividends, and introducing an exchange feature.

In Q3 2024, CareCloud generated revenue of $28.5 million. Recurring technology enabled business solution revenues were $24.2 million, while non-recurring professional services revenues from medSR were $4.3 million. Adjusted EBITDA for Q3 was $6.8 million, a 111% increase year-over-year. Year-to-date, revenue was $82.6 million, adjusted EBITDA was $16.9 million, an increase of 50% from the same period in 2023. Free cash flow for the nine months ended September 30, 2024, was $10.3 million, a 328% improvement over the prior year.

• Updated adjusted EBITDA guidance for full year 2024 to $23 million to $25 million, an increase from initial guidance. - Reaffirmed revenue guidance of $109 million to $111 million for full year 2024. - Expect to use free cash flow to increase cash balance and build working capital cushion in Q4.

• Forward-looking statements are subject to risks and uncertainties beyond control that could materially affect actual results. - Market uncertainties related to healthcare technology adoption and competition could impact performance.

Q: Can you provide more color on life science partnerships?

A: We have a partnership with [Docuread] for medicine adherence, using clinical, medicine, and financial data. Revenue from this is not separately identified yet but expected to contribute to future revenue.

Q: Where is CareCloud on rolling out AI services and early indications?

A: CirrusAI notes launched with trial periods, some converted to paying clients. Features like chart summary added, with some AI features included in regular flow without separate charging, while some have modest revenue from charging.

Q: What's the outlook for medSR revenue?

A: MedSR faced challenges with APIC clients, leading to revenue decline. It's a challenge to predict future revenue, but entering 2025 with similar book and backlog as last year.

Q: Update on expense cuts?

A: Still comfortable with $26 million expense cut target, expecting to hit $20 million in 2024 with remaining in 2025. Achieved through using AI, bringing work in-house, and leveraging global business model.

Q: Color on remote patient monitoring?

A: Launched in-house RPM solution recently. For the nine months in 2024, chronic care management was $2.2 million and RPM was $544,000. Excited about margins and ability to meet client needs.