RCM - R1 RCM Inc. (RCM) Q1 2024 Earnings Call Transcript

2024-05-08 11:29:11 ET

R1 RCM Inc. (RCM)

Q1 2024 Earnings Conference Call

May 8, 2024 08:00 ET

Company Participants

Evan Smith - Senior Vice President, Investor Relations

Lee Rivas - Chief Executive Officer

Jennifer Williams - Chief Financial Officer

Conference Call Participants

Charles Rhyee - TD Cowen

Craig Hettenbach - Morgan Stanley

Elizabeth Anderson - Evercore

Jailendra Singh - Truist Securities

Sean Dodge - RBC Capital Markets

George Hill - Deutsche Bank

Jack Wallace - Guggenheim Securities

Michael Cherny - Leerink Partners

Sarah James - Cantor Fitzgerald

Daniel Grosslight - Citi

Jeff Garro - Stephens

Richard Close - Canaccord Genuity

Allen Lutz - Bank of America

Presentation

Operator

Thank you for standing by and welcome to the R1 RCM First Quarter 2024 Earnings Conference Call. [Operator Instructions] A reminder that this conference is also being recorded. I would now like to turn the conference over to Evan Smith, Senior Vice President, Investor Relations. Please go ahead.

Evan Smith

Thank you, operator and thank you everyone for joining us today. Certain statements made during this call maybe considered forward-looking statements pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, any statements about our future growth plans and performance, including statements about our review of strategic alternatives, our strategic and cost savings initiatives, our liquidity position, our growth opportunities, our future financial performance and the impacts of the Change Healthcare cyber attack and a customer bankruptcy on our business are forward-looking statements. These statements are often identified by the use of words such as anticipate, believe, estimate, intend, design, may, plan, project, would and similar expressions or variations. Investors are cautioned not to place undue reliance on these forward-looking statements. All forward-looking statements made on today’s call involve risks and uncertainties. While we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law.

Our actual results and outcomes may differ materially from those included in these forward-looking statements as a result of various factors, including, but not limited to, the impact that the review of strategic alternatives could have on our business or our stock price, the outcome and timing of the review of strategic alternatives, economic downturns and market conditions beyond our control, including high inflation, the quality of global financial markets, our ability to timely and successfully achieve the anticipated benefits and potential synergies of the acquisitions of Cloudmed and Acclara, our ability to retain existing customers or acquire new customers, the development of markets for our revenue cycle management offering, variability in the lead time of prospective customers, the later unsuccessful implementation of our technologies, including AI, competition within the market and factors discussed under the heading Risk Factors in our most recent annual report on Form 10-K. Certain results that will be referenced on this call maybe rounded to the nearest whole number. We will also be referencing non-GAAP metrics on this call. For a reconciliation of non-GAAP metrics to the most closely comparable GAAP metrics, please refer to our press release.

Now let me turn the call over to Lee. Lee?

Lee Rivas

Thank you, Evan and good morning everyone. Our first quarter 2024 revenue results reflect positive trends in the underlying business as we continue to demonstrate our ability to drive value for our customers. The quarter includes Acclara’s contributions from the closing date in January, investments to onboard Providence, and continued investments in our multiyear technology transformation. We believe these technology investments will enhance our platform and drive innovation with new AI and advanced automation tools and solutions and development. We delivered approximately $604 million in revenue and $152 million in adjusted EBITDA for the first quarter....

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