Good day and welcome to Q2 Investor Summit Virtual. We appreciate your participation in today's virtual event. Up next, we are pleased to introduce Performant Healthcare. If you would like to ask a question during the webcast, you may click the Q&A icon button on the right side of your screen. Please type your question into the box and click Send to submit it. At this time, it is my pleasure to hand over the session to Rohit Ramchandani, CFO at Performant Healthcare, who will lead the presentation. Sir, the floor is yours. Thank you. This is actually Jon Bozzuto from Performant. I'm the Head of Investor Relations, and I'm just going to take it quickly before Rohit proceeds with the presentation. I would first like to thank everybody for joining this session, and I would also like to encourage everybody to go look at the forward-looking statements that are in our presentation that are on our investor website. With that, I'm going to turn it over to our CFO, Rohit Ramchandani. Thanks, Jon. Really excited to be with everyone today and go over Performant Healthcare. What are we? Who are we? Where do we operate? What are our financial goals or some of the things that we're hitting today? In terms of our industry, we operate in what's called the healthcare payment integrity industry. It's an industry with very few players and a pretty sizable space. If you think about healthcare spend in the U.S., the $4 trillion plus coming on $5 trillion of spend, it's estimated that about $1 trillion is waste. Now, that's more waste than the entire U.S. K through 12 education budget. These days, probably not a surprise to folks, but it is a staggering number. Within that, it's estimated that $300 billion plus is payment integrity waste. What that is, is it's related to the actual processing of the claim. That is the industry in the area that Performant looks to solve. Importantly, we sit in between payers and providers. The insurance plans or the payers are our clients. We are delivering them real savings against this waste without directly interacting with patients. We offer our services through two distinct buckets. We group them as our claims-based and our eligibility-based. Our claims-based servicings are essentially audit offerings that are answering the question, should this claim have been paid or not? Our eligibility-based work, sorry, is answering the question at a core of who should have paid the claim in terms of coordinating those benefits among multiple payers. We have built this up since the mid-2010s, early 2010s. Our legacy is a company as a call center debt recovery provider. We found our way into healthcare in 2009 with a single CMS contract. CMS is the Centers for Medicare and Medicaid. It's essentially the government payer, as you think about it, managing the Medicare Advantage lives. We saw the benefits in that and decided to turn that into a proper business line and acquired technology in 2012 that really still remains the backbone of our company today in terms of processing through the claims, housing our algorithms, and really driving competitive advantage. Our CEO and my partner, Simeon Kohl, has built up a very good team over the last number of years, people that have come from some of our competitors, some payers that truly understand the healthcare space, that then couple with our technologists and our data scientists that are working on our platforms and our algorithms. I think that combination of technology and client-centric team approach that we take to the market is truly what continues to win us business. It's a market, as I mentioned, where when we first got into it, we probably had 10-15 direct competitors, and we now have two or three. They've largely consolidated, acquiring one another, creating fewer but sizable competitors. At the same time, the moat around this industry has grown in terms of the need for certain infosecurity standards, compliance standards, performance abilities to show that you've done this before. Our clients are increasingly more and more risk-averse in an ever-changing cybersecurity and technology landscape. We've largely been successful in growing in this market. Our current size is that that has strong federal relationships with CMS on both our auditing and eligibility side. In the commercial plan space, we have relationships with five of the top seven national payers. Think of a United, a Humana. We've got about 20 relationships at the mid-market plans. Rounding it out, when you think of state government, we won our first direct Medicaid fee-for-service contract with the state of New York to do auditing work. That is a contract that we're currently implementing and hoping to parlay into more state wins as well. Notably, while we have all these relationships, land and expand is a big part of our growth strategy. It is a big part of how we have succeeded to date in terms of entering a client with maybe a given statement of work or two. Over the years, continuing to upsell our access to increased services and increased scope of lives, increased geographies are all major keys in terms of the way we continue to grow. We focus on a partnered go-to-market approach between business development, sales, and executives in terms of landing some of the new logos in that mid-market space and continuing to expand our relationships with both commercial and government clients. In terms of the actual financial results, we do have a very high degree of visibility into future results. This industry does operate on a very lengthy sales cycle. Following a contract win, there's then a lengthy implementation that's planned with the client and ultimately a revenue and margin ramp. It's important to note that it's often two to three years from the day of a contract win until you're seeing a steady state revenue or margin. While this is a patient game, what it does do is provide us a very high degree of visibility into a given and future year's results. We often say internally a mantra of, "It's not if, it's when," in terms of us ramping up these contracts and not having a ton of pipeline reliance. For the current year, we've currently guided to $133 million-$135 million in healthcare revenues with $9 million-$10 million in Adjusted EBITDA. We do have our sights on a 20%+ Adjusted EBITDA margin target as we continue to mature and scale. What's exciting about Performant today is we currently have visibility into all the revenue gains and technology initiatives needed to hit those margin goals. It's largely a path of execution versus new market wins from here on out. We've additionally shown a consistent double-digit growth rate in our top-line revenue. As we look forward, we anticipate to continue those trends. It is that combination of continued scale and efficiency gains that are going to get us to those 20%+ Adjusted EBITDA margins. Something that, between finishing our technology initiatives and reaching that, call it $150 million-$160 million revenue mark in healthcare revenues, is when we believe we can be showing that to the broader public. I think, as we sit here thinking about the wins we have had against our competitors in an industry that is not something net new in the last year or two, but one that has been existing, solving a large pain point for healthcare payers that continue to feel more and more financial pressures. Something that we also feel is that we have an aligned macro environment in terms of really focusing on reducing fraud, waste, and abuse, not just in healthcare, but in the broader systems to help us deliver higher quality products and services to patients at the end of the day from our plans. We feel that all of these have coalesced to a very exciting time for Performant. We are excited to keep executing and delivering for both our clients, our employees, and all of our stakeholders. I thank you for your time, and I am open to any questions. It does not look like we have any questions right now. It looks like we could wrap it up. Thank you, everybody, for your time. Thanks, everyone. That concludes Performant Healthcare's presentation. You may now disconnect. For details on upcoming presentations, please refer to the conference agenda. Thank you for your participation, and we look forward to welcoming you to the next session.
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