CareCloud Q1 2024 Earnings Call Transcript

There are 10 speakers on the call.

Operator

ladies and gentlemen, and welcome to the CareCloud, Inc. 1st Quarter 2024 Results Conference Call. At this time, all lines are in a listen only mode. Following the presentation, we will conduct a question and answer session. Also note that this call is being recorded on Tuesday, May 14, 2024.

Operator

I would like to turn the conference over to Liz Ferrer, Vice President of Human Resources. Please go ahead.

Speaker 1

Good morning, everyone. Welcome to CareCloud's Q1 2024 Conference Call. On today's call are Mahmood Haak, our Founder and Executive Chairman Hadi Chaudhry, our Chief Executive Officer and Director Stephen Snyder, our President and Norman Roth, our Interim Chief Financial Officer Officer and Controller. Before we begin, I would like to remind you that certain statements made during this conference call are forward looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. All statements other than statements of historical facts made during this conference are forward looking statements, including without limitation, statements regarding our expectations and guidance for future financial and operational performance, expected growth, business outlook and potential organic growth and acquisition.

Speaker 1

Forward looking statements may sometimes be identified with words such as will, may, expect, plan, anticipate, upcoming, believe, estimate or similar terminology and the negative of these terms. Forward looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties, many of which are beyond our control, which would cause actual results to differ materially from those contemplated in these forward looking statements. These statements reflect our opinions only as to the date of this presentation, and we undertake no obligation to revise these forward looking statements in light of new information or future events. Please refer to our press release and our reports filed with the Securities and Exchange Commission, where you will find a more comprehensive discussion of our performance and factors that could cause actual results to differ materially from these forward looking statements. For anyone who dialed into the call by telephone, you may want to download our Q1 2024 earnings presentation.

Speaker 1

Please visit our Investor Relations site, ir. Carecloud.com, click on News and Events, then click IR Calendar, click on Q1 2024 results conference call and download the earnings presentation. Finally, on today's call, you may refer to certain non GAAP financial measures. Please refer to today's press release announcing our Q1 2024 results for a reconciliation of these non GAAP performance measures to our GAAP final results. With that said, I'll now turn the call over to our CEO, Hadi Chaudhry.

Speaker 1

Hadi?

Speaker 2

Thank you, Liz, and thanks to all of you for joining our Q1 2024 earnings call. As we discussed in our most recent earnings call, this year we will continue to remain steadfastly focused on increasing profitability and free cash flow. To achieve this overarching objective, our team will leverage our proven technology expertise and AI, our integrated global workforce and our core competencies related to integration and cost rationalization. Our Q1 results demonstrate that we are making progress on our objective. In particular, since October of 2023, we have identified approximately $22,000,000 of annualized cost reduction measures that we are working to implement.

Speaker 2

The early results of these cuts are beginning to be seen as our cash from operations increased to $4,100,000 as compared to $1,000,000 during the Q1 of last year. And our adjusted EBITDA was $3,700,000 This increase in cash enabled us to pay down $2,000,000 of our credit facility, dollars 1,000,000 during Q1 and another $1,000,000 so far in the 2nd quarter. These improvements in profitability are in spite of the fact that our revenue, which was $26,000,000 for the Q1, was lower than Q1 last year, primarily due to the lower non recurring revenue for Med SR. Year over year, we saw improvements in our digital health offering with revenue growing nearing 4 times. We continue to remain confident that the cross selling opportunity of higher margins, tech enabled RCM to our nonrecurring professional services clients will continue to represent a significant opportunity for growth.

Speaker 2

We continue to align our expenses with our revenue and are focusing on the opportunities that generate the best return on investment. Our primary objective will remain centered on profitability and free cash flow supported by a company wide commitment to operating leverage and improving our competitive position. Norm will cover these results in more details later in the call. Turning to our products, as our investors know, our proprietary end to end platform is fully integrated and designed with the flexibility to be adapted across markets and to meet the evolving needs of our clients, the overwhelming majority of whom utilize more than 1 CareCloud solution. We continue to see rising demand for our digital health and generative AI solutions as we are eager to meet this demand with our scalable solutions and specialized workforce.

Speaker 2

In Q4 of 2023, we were thrilled to introduce our groundbreaking suite of generative AI solutions, AirCloud Cirrus AI. This innovative platform has empowered our revenue cycle management team with our generative AI based appeals product, revolutionizing the appeal generation process with unparalleled effectiveness and cost efficiency. Additionally, we have seamlessly integrated a virtual support assistant into our offerings, ensuring our valued customers receive enhanced and timely support. The KCloud Serus AI Guide represents a significant leap forward in leveraging AI to deliver clinical decision support by streamlining data input processes and providing real time evidence based recommendations. It assists clinicians in their workflow, ultimately enhancing diagnostic accuracy and treatment planning.

Speaker 2

By analyzing past medical and social histories alongside current symptoms, it generates suggestive patient charts facilitating informed decision making. Since its launch, we have seen tremendous interest in the CareCloudSirius AI Guide with over 400 customers signing up or expressing interest in this transformative tool. We remain committed to providing this product free of charge to our existing clientele as we continue to refine our AI technology and improve outcomes. In just the past several months, Cirrus AI Guide has facilitated thousands of recommendations, underscoring our dedication to delivering actionable insights and exceptional service. Continuing our commitment to advancing healthcare technology, we are proud to introduce our latest offering, Cerus AI Nodes.

Speaker 2

This solution revolutionizes the transcription process of provider patient interactions, delivering precise clinical notes in real time within a secure HIPAA compliant environment. Operating seamlessly during patient consultations, CareCloud's Syrris AI notes using ambient AI technology intelligently identifies crucial dialogue and medical terminology, compiling them into comprehensive clinical notes for immediate review by physicians. Upon approval, these notes are securely archived within the patient's electronic health record, ensuring seamless continuity of care. We are currently evaluating and testing this solution with our initial pilot group. Over the next 30 days, we plan to introduce it to our existing customer base at market competitive pricing.

Speaker 2

Additionally, we are implementing a risk free trial period to ensure customer satisfaction and confidence in the product. Finally, I'm pleased to welcome back Steve Snyder to our executive team as President, whether it has been a General Counsel, Chief Strategy Officer, President or CEO, he has partnered with me and our broader team over the last 2 decades and we have all worked together to build a world class game changing company. I will now turn the floor over to Stephen.

Speaker 3

Steve? Thanks, Hadi, and thank you to our investors for joining today's call. As Hadi explained, we are very pleased to see early signs that the fruit of the company's hard work is beginning to come to fruition. In particular, we've seen year over year increases of more than 200% in our free cash flow. Our cash from operations has increased by nearly 300% and we posted $129,000 of GAAP operating income versus a loss last year during this quarter of $223,000 We believe that these numbers are not mere aberrations.

Speaker 3

Instead, they are the direct result of decisive actions taken by the company that are starting to be seen in our financial statements. They are snapshots of a trend line that we believe is moving strongly in the right direction. Between October 2023 today, we have identified approximately $22,000,000 in annualized cuts that we plan to execute before the end of 2024. Additionally, we have identified and taken preliminary steps on other material cuts that will not be seen until 2025 due to contract term requirements. As to the 2024 reductions, we have already taken action on approximately 75% of the $22,000,000 in reductions.

Speaker 3

That's why we expect an in year impact during 2024 loan of approximately $15,000,000 in reduced expenses. But let's focus for a minute on a specific example. Prior to 2024, we continue to rely on 3 different partners who provided R and D resources at a combined annualized cost of approximately $3,000,000 We inherited these partnerships in conjunction with various acquisition closings. As part of our cost rationalization assessment, we developed an action plan for transitioning this work to our internal R and D team members and expect to realize net annualized savings of approximately $1,900,000 within your savings of $1,400,000 Better yet, as we leverage our team, we are able to more tightly control and accelerate the development efforts without the operational risks associated with relying on 3rd parties. By focusing on doing more with less, we are becoming a stronger, more effective and more nimble company.

Speaker 3

Since our founding, competitive advantage has always been centered around our cost efficient global team, our core technology strength and our unique integration capabilities. The more we lean to these strengths, the more we are able to reduce costs and the stronger our platform becomes. These are about a small number of the multitude of expense reductions that have already occurred or will soon occur, but some of which will save us $15,000,000 during 2024 and far more as we move forward. I'll now turn the floor over to our Interim CFO, Norm Ross.

Speaker 4

Norm? Thanks, Steve, and thank you all for joining our call today. I would like to start by reiterating Heidi and Steve's sentiment that we are pleased to report that our Q1 results were in line with our expectations and we are on track to achieve our full year goals of returning to profitability and positive cash flow. In the Q1, we reported revenue of nearly $26,000,000 While down year over year, the bulk of the decline, dollars 2,000,000 was due to Med SR, which is a project based professional services business that tends to fluctuate. Med SR had softness in the second half of last year, which is continuing.

Speaker 4

So our expectation is that our 2nd quarter professional services revenue will be similar to Q1, but we are hopeful that we will see some growth in the second half of twenty twenty four. More importantly, our direct operating costs decreased by almost $3,000,000 from Q1 2023 and our operating expenses including G and A, R and D and sales and marketing expenses decreased by $2,400,000 We reported positive GAAP operating income of $129,000 for the first time since Q4 2022 and our GAAP net loss decreased from $401,000 in Q1 2023 to $241,000 We reported adjusted EBITDA of $3,700,000 in the first quarter. Our GAAP earnings per share was negative 0 point compared to negative $0.28 in Q1 2023. This improvement in profitability translated into an improvement in cash flow. Our net cash provided by operating activities was $4,100,000 almost 4 times Q1 2023 and our free cash flow was $2,200,000 compared to negative $2,000,000 last year.

Speaker 4

Please note that free cash flow is a measure of cash we generate from operating and investing activities and does not take into account the use of cash during Q1 of 2023 for our preferred stock dividends. Our free cash flow allowed us to pay down $1,000,000 on our SVB line of credit during Q1 and still end the quarter with $4,100,000 of cash, an increase of $800,000 from December 31, 2023. We paid down another $1,000,000 on the SVB credit line during April, reducing our SVB line of credit balance by generating positive free cash flow is a top priority for us and is a prerequisite to being able to restart the dividends on preferred stock. I'll close my comments by reiterating our 2024 guidance. We continue to expect revenue of $120,000,000 and adjusted EBITDA of $21,000,000 to $23,000,000 We expect to see steady quarterly revenue growth throughout the year and as we hold the line on expenses, this means that our adjusted EBITDA and cash flows will grow even faster than revenue.

Speaker 4

The first quarter results puts us on a good footing for the year ahead. We're happy with our progress toward returning to profitability and look forward to updating you later in the year. With that, I'll turn the call over to Mahmood for closing remarks. Mahmood?

Speaker 5

Thank you, Norm. Our primary focus is on disciplined operational improvements, setting the stage for profitable and sustainable growth, ultimately creating long term value for our shareholders. I would like to thank our employees, customers and shareholders for their continuous support in furthering CareCloud's mission. Operator, please open the floor for questions.

Operator

Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session And out of considerations for the other callers today, And your first question will be from Jeffrey Cohen at Ladenburg. Please go ahead.

Speaker 6

Hey, good morning. Thanks for taking our questions. I guess,

Speaker 3

firstly, could you talk

Speaker 6

about yesterday's press release and give us a little flavor on that as far as the capital structure update and the announcement yesterday?

Speaker 7

Sure. Good morning, Jeff. Thanks for the question. Maybe, Jeff, if we kind of step back for a minute, as you know, it's pretty common for public companies to receive these sorts of inbound expressions of interest in one format or another. And as a general rule, they don't necessarily publicly disclose them all.

Speaker 7

And we're no different in that regard. But for this particular indication of interest, the Board thought that it was important to provide disclosure, as context to explain, to your point, why we selected Citizens JMP to analyze the overall capital structure and to provide guidance with regard to potential changes to the capital structure. And those changes, of course, would be changes to ensure and to protect the best interest of the company and also the best interest of all the shareholders. So by providing some more granular details, at least on a high level with regard to that indication of interest, we thought that was helpful again to point out the differentiation, at least this particular party was making with regard to the treatment of the preferred A's and the B's in the context of a change of control. The context of course being that in change of control with regard to Series B, in effect the buyers of the common stock would ultimately pay the accrued dividends and the liquidation value of $25 in conjunction with any transaction.

Speaker 7

And at least this particular indication of interest was silent as to the Series A. And again, the Board thinks it's important to receive some guidance from bank like Citizens JMP with regard to any possible modifications of the certificate of designation that could address this disparity.

Speaker 6

That's helpful, Steve. Could you give us a sense, was that a PE fund or a competitive company in the space or any color there is appreciated?

Speaker 7

Sure, sure. It was a leading PE fund.

Speaker 6

Got it. Okay. And then secondly for us, any comments on the line of credit? Where does it stand now? And what would you expect it to look like throughout 2024?

Speaker 8

Thank you for the question, Jeff. So right now, the credit line is $8,000,000 And let me just give you a little background, if I could, just on the credit line and on the dividend. So we have the $25,000,000 line of credit with SVB. And then last December, we had about $10,000,000 we had $10,000,000 drawn on the line. And the bank made it clear that if we continued paying the dividends, we wouldn't see any relaxation in the covenants in order for us to access the remaining $15,000,000 on the line either for business needs or pay preferred dividends.

Speaker 8

So we made the painful decision to suspend the preferred stock dividend last December. Same time, we continue with our plan to reduce expenses across the company, and our focus became achieving positive free cash flow and profitability. And as of today, as we previously said on the call, we've identified approximately 20.20 22,000,000 dollars in annualized cost reductions. And 2024, there will be savings approximately $15,000,000 approximately equal to our annual dividend. Our free cash flow was $2,200,000 We currently plan to continue repaying the line from our cash flow.

Speaker 8

We want to see several more months of positive cash flow that would cover the dividends before we have a specific discussion about reinstating the dividend. We paid down $2,000,000 on the dividend to date. The balance is $8,000,000 And of course, the Board and the management are very confident about the future of the company, which is reflected by the 38% insider ownership. Mahmud Haq, our company's founder, has increased his ownership to over 5,000,000 shares compared with the approximately 4,800,000 shares he had at the IPO. So with such a large inside ownership interest, our founder, the rest of the company's office and directors have best interest ensuring that the company's efforts will be successful.

Speaker 8

Hopefully, that answers your question.

Operator

Did that answer your question, Jeffrey?

Speaker 6

Yes. Thank you very much.

Operator

Thank you. Next question is from Allen Klee at Maxim Group. Please go ahead.

Speaker 9

Yes. Hi. Congrats on the profitability improvement. A question on your guidance, you commented that you expect revenue to increase each quarter for the rest of the year. We know that first quarter is seasonally low, so we would expect a jump up in 2Q.

Speaker 9

But could you kind of give us the playbook for why you expect 3Q and 4Q to continue to grow after that? Thank you.

Speaker 2

Thanks, Alan. So as you rightfully said, the Q1 typically has a seasonality and that those numbers are comparatively will be down compared to the rest of the quarters into the year. Where we see and I mentioned during our prepared remarks that if you look at our digital health offering as an example, the revenue year over year has increased by roughly 4x. So we do see the increase in the revenue coming from whether it's the digital health offering, whether it's our the sales that our team has made for our technology enabled solutions. So it's a combination of our entire suite of proprietary solutions, RCM solution, digital health solutions.

Speaker 2

And towards the second half, there could be some contribution from different AI, the products and services we are offering.

Speaker 9

Thank you. I have one other follow-up question on the expression of interest. You noted, one of the series has to be redeemed, the other one to be left outstanding. If it was left outstanding, I'm assuming though it's still a liability of the acquiring company, right? Is that true?

Speaker 7

That's correct, Alan. Yes, they would still in the context of a transaction would still have all the same obligations that we would have relative to the A's.

Speaker 9

Thank you.

Operator

Thank you.

Speaker 7

Thank you.

Operator

And your next question will be from Bill Sutherland at Benchmark. Please go ahead.

Speaker 9

Hey, thanks. Hello, everybody. Welcome back, Steve. I was thinking on the cost takeouts, maybe 1 or 2 other important examples that you're going to be counting on for the target?

Speaker 7

For sure. Thanks a lot for your question, Bill. Again, if we kind of step back for a minute and we think kind of big picture in terms of where we're at, since we initially discussed the overall reduction in expenses as a project back in Q4 of last year. We've identified $22,000,000 roughly in annualized cost savings. And if we kind of think about what our competitive advantage as a company has always been, it's really been the ability to leverage kind of our cost efficient fully integrated team.

Speaker 7

1, kind of a second core part of that competitive advantage has been our technological capabilities, so our IT, R and D team. And then 3rd has been our ability from an integration perspective to integrate additional solutions that we're launching and also the context of growth to leverage those capabilities to fully integrate new clients, both in organic growth and also historically in inquisitive growth. So if we kind of think about that those kind of core competitive advantages, as we really lean into those advantages, frankly, the more we lean into those, the more we're capable of reducing costs and candidly, the stronger the company and the platform becomes. And in terms of specific advantages, I had mentioned one of them, which was the reduction of handful of R and D vendors who we've been working with as a result of acquisitions in the past. That's one example.

Speaker 7

But even from the perspective of kind of if we kind of zoom out in terms of IT, we have about out of that $22,000,000 there are about $7,000,000 roughly in annualized savings that directly relate to this IT and R and D capabilities. Again, the ability to leverage our team very effectively with regard to IT and R and D solutions. And as we're looking for cuts, we're looking to eliminate redundancies, both in terms of vendors and personnel. And in particular, we're highly focused on doing this in a way that doesn't impact clients. So we're looking specifically and strategically for cuts that are not client facing.

Speaker 7

And that also won't have any that shouldn't have any impact in terms of near term and long term revenue generation.

Speaker 9

Okay. Will you have additional restructuring or yeah one time charges to realize the cost saves?

Speaker 7

Yes. Good question. And in terms I'll hand the floor over to Norm to jump in on that.

Speaker 8

Thank you, Bill. So we're estimating about another $400,000 for the remainder of the year in restructuring charges.

Speaker 9

Yes, I've been thinking about your revenue trajectory. And to what degree do you kind of see it in the sales pipeline at this point since you're just launching these AI products?

Speaker 2

Right. So I think, Bill, you should look at it from the overall, I would say, the new revenue or the growth perspective. Let's look at it from the net new revenue perspective. We are doing much better so far into the year when it comes down to attrition as an example. Annualized attrition at this point is much better than what we did last year.

Speaker 2

So we are focusing extensively on making sure we retain the existing revenue. The second, in terms of the from the top line, the revenue is we see the increase in the revenue from digital health quarter last year, that seems to be we are doing as good quarter last year, that seems to be we are doing as good as we did last year or slightly better than that on the RCM and technology neighborhood side. So between this RCM, digital health and improving on the attrition, we see the net new revenue growth into the upcoming quarters in addition to the initial seasonality impact in

Speaker 9

Q1. So I guess you're saying not as reliant as I thought on the new products. And are you looking for the chronic care and the other remote monitoring to

Speaker 2

Correct. The CCM RPM will be, which is our digital health solution. There is a revenue growth as the clients have continue to ramp up, and they are more in the onboarding process and going live in the upcoming quarters. Yes, there will be a growth coming from there, growth coming from RCM. The AI solution, if you think about it there, so one of the product, which is since we are still reliant on which is our SITAS AI guide on our partners, Google Cloud and using their LLMs.

Speaker 2

And as we know that more technically speaking, the AI hallucination needs to be reduced and significantly improved before we can put those in production with a price point. So we are working through those things. For this recently launched ambient AI technology solutions, the Cirrus AI nodes, this technology seems to be pretty much more mature compared to this other one. And that's why we believe once we are done with our initial pilot group testing and optimization, we are going to put a price tag to it and then we'll share it over the next 30 days. So we do see some revenue coming out of these products towards the second half of the year.

Speaker 2

It's hard to predict at this point that how much in terms of the dollar that's going to be, But that's the but you should think about it in terms of just the top line in our guidance that it's part of that guidance.

Speaker 9

Right. And I know it's very competitive space now, the documentation side. Okay. Thanks, everybody.

Speaker 2

Thank you. Thanks, Bill.

Operator

Next is a follow-up from Allen Klee. Please go ahead.

Speaker 9

Yes. Just a couple housekeeping of when the 10 Q might be filed and what your share count currently is? And then I had one follow-up after that. Thank you.

Speaker 8

Thanks, Alan. So the 10 Q will be filed tonight at 4:30 right after the market close. And our current our common share count right now is about 16,100,000 shares outstanding.

Speaker 9

I'm sorry, could you say that again?

Speaker 8

I'm sorry. We're going to file the 10 Q tonight, 4:30 after market close, and our common shares outstanding is 16,100,000.

Speaker 9

Okay. And then one follow-up question on the unsolicited offer. The 3rd party bank that was hired to evaluate it was to look at the offer and you wrote in the press release to also make recommendations that that might be beneficiary to yourselves. Is the way I read this that that means that they're that they recommended that the terms of both of the preferred stock should be changed related to the redemption provisions?

Speaker 7

Good question, Alan. And we've just recently retained Citizens JMP. So they're just starting their work right now. But again, the core part of their focus is really on kind of the issues that you're alluding to, which is the Series A and the Series B and really analyzing the certificate of designation, in particular, with regard to changes of control as it relates to Series A in particular. So we'll have to see what guidance they provide ultimately, but that will be a core part of their overall focus.

Speaker 9

Thank you. Last on last quarter's call, I think you might have mentioned something about launching CareCloud Prime. Any update on that?

Speaker 2

Yes. And Alan, we moved that in production and we continue to onboard and transition more and more clients from our existing platform to this new platform. So that process

Speaker 9

continues. And any commentary on CareCloud Wellness?

Speaker 2

Right. So the benefit, as I mentioned, if you look at it from the Q1 2023 to Q1 2020 4, the revenue, you can see that has increased by almost 4x. And we continue to see the momentum. And it's though it took us little more time initially to ramp this thing up, but now with more patient onboarded, more practices onboarded, we continue to see the increase in that revenue.

Speaker 9

Okay. And then finally with Med SR, you mentioned that you kind of think that revenue that it was a little sluggish in 1Q and probably stays at that level in 2Q. Last quarter, you talked a little about opportunities with Meditech. Any commentary on what opportunities might be there to improve this in the second half?

Speaker 2

Yes, sure. So Bill, the overview sorry, Adam, if you look at it there, basically, there is a health system space related project revenue, which is, as we know, the highest share is EPYC, then it's between number of other players, but we work closely with Meditech. And then there is an RCM play. And then there could be different other staff org, CIOs and the training and the like. So these are the major revenue drivers of MedAssar.

Speaker 2

RCM, the last year, the revenue was flat compared to the 2022. But 2022, we were able to increase the RCM revenue by roughly 300% compared to its acquisition level. So I think we see either the same or some growth in the RCM related revenue through MedAssar relationships. The Meditech or the Epic, so first of all, with Epic, we don't do any large projects since the time they considered us to be in the competitive position. So there is a very small piece of the overall EPIC related projects we could have done or Medisar could have done compared to prior to the acquisition.

Speaker 2

So Meditech, we continue to work closely and the revenue continuously grow over the last 2 years on the Meditech side, but there is at the same time a dependency on the Meditex own growth for the year, how many sales they have made, how many projects they have implemented because there is a direct correlation in terms of the growth from the Meditech or EPIC and the like. I think we continue to believe it's going to be either the Meditech OR RCM OR maybe some work from an Epic side that we have room for. And Alan, maybe one

Speaker 7

sorry to interrupt. I was going to say to Hany's point, maybe one thing to think about is, especially on the Med SR side, of course, we're talking primarily about nonrecurring project revenue. So in terms of the overall revenue mix, and as Norm alluded to, there's some softness in that. And while we see lots of exciting opportunities to really expand revenue and especially on the especially in terms of the overall products, in terms of generative AI, we're excited about that. I think as a team, we're really focused this year primarily on generating cash flow.

Speaker 7

And that's kind of step 1 in our overall kind of thought process is how do we get to on an annualized basis $20,000,000 in free cash flow? How do we get to $21,000,000 $22,000,000 How do we achieve that? And secondarily, an important aspect of that will be, of course, expanding revenue and growing revenue. But I think as you think about and kind of watch us this year, I think really test us and judge us in particular by our ability to generate free cash flow, primarily. And then secondarily, really be thinking about the long term ability to grow revenue.

Speaker 7

Revenue growth will come and will be a key part of our overall kind of what we bring to the market in this year and the years to come. But I really think the emphasis I think if you focus on free cash flow that would be the place to focus.

Speaker 9

That's helpful. I'll ask one more question. Siris notes, which sounds pretty exciting. I'm trying to understand how that would be positioned in the market. Is my understanding that this is an all software solution that then gets approved by the clinician, the doctor.

Speaker 9

Does that mean that this might competitively, is this trying to go after like just the pure transcription users that are out there described, but which is kind of the lower end of the Ambient solutions or is it somewhere else that you would say that it's focused within the choices? And just to follow-up, does it create the note like instantaneously or is it or is there a time delay and someone has to look at it?

Speaker 2

Good question, Aaron. No, and I think you understand this competitive space very well. So our product basically is so in the real time, it listens to the patient as we will roll it out, so it could be just a pure technology play where the doctors can use it and can edit the notes if they feel necessary and can save it as is. And in addition to that, it could be a technology plus resource where our let's say, the doctors or our team members, they can look at it can make the edits after listening to the recorded conversation as well. So it will be a technology plus a service play as we continue to roll this out.

Speaker 2

And like any other product, our first target market is over existing client base. We would like to roll it out to all of our existing client base before going after the market for new sales.

Speaker 9

Okay, great. Thank you so much.

Speaker 2

Thank you.

Operator

And at this time, Mr. Roth, we have no other questions registered. Please proceed.

Speaker 8

Yes. Thank you, everyone, for attending the call. Have a great day.

Operator

Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we ask that you please disconnect your lines.

Earnings Conference Call
CareCloud Q1 2024
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