Release Date: June 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Pro forma SaaS revenue grew 22% during the first quarter of fiscal 2024.
- Booked SaaS ACV has grown to $15.9 million, with $13.1 million already implemented.
- Significant cost savings achieved through strategic restructuring, reducing total operating expenses.
- Successful implementation of new SaaS contracts offsetting client non-renewals.
- Positive feedback and financial impact from AI model deployments, enhancing client satisfaction and usability.
Negative Points
- Total revenue for the first quarter of fiscal 2024 decreased to $4.3 million from $5.3 million in the same period of fiscal 2023.
- Net loss for the first quarter of fiscal 2024 was $2.7 million, only a slight improvement from a $2.9 million loss in the first quarter of fiscal 2023.
- Increased cash and noncash interest expenses impacted financial results.
- Noncash valuation adjustment expense of $24,000 compared to a valuation adjustment gain of $364,000 in the first quarter of fiscal 2023.
- Dependence on successful implementation of remaining backlog to achieve adjusted EBITDA breakeven run rate.
Q & A Highlights
Q: Could you talk a little bit about the pipeline and how that's developing and your expectations over the course of this year?
A: Benjamin Stilwill, President and CEO: The focus on the Oracle pipeline has started to get some wins, and RevID has matured significantly in the last year. This has translated into easier cross-sell opportunities and positive traction in our sales efforts. We are seeing success in multiple areas, which is encouraging.
Q: What's allowing you to get those implementations done or have a faster turnaround?
A: Benjamin Stilwill, President and CEO: The business we acquired on the RevID side has improved its software model, and our team has gained experience, making the process more repeatable and scalable. Additionally, our partnership with Oracle has provided direct links to tech specs, enhancing our implementation efficiency.
Q: Any update on the AI contribution and its impact?
A: Benjamin Stilwill, President and CEO: AI has been very impactful for our current clients, with rule deployments every two weeks driving meaningful financial impact. We are exploring new models and ensuring our messaging highlights our effective use of AI, which is a significant interest for healthcare systems.
Q: Regarding the new contracts, is there a mix of wins from current and new customers?
A: Benjamin Stilwill, President and CEO: Yes, we have seen wins from both current and new customers. The Oracle partnership has been particularly fruitful, and our service model has proven effective in cross-selling between eValuator and RevID solutions.
Q: What are the financial highlights for the first quarter of fiscal 2024?
A: Bryant Reeves, CFO: Total revenue was $4.3 million, with SaaS revenue at $2.7 million. Operating expenses were $6.6 million, and the net loss was $2.7 million. Adjusted EBITDA improved to a loss of $0.7 million, reflecting our focus on SaaS revenue growth and cost savings from strategic restructuring.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
