{"id":25135,"date":"2023-04-04T05:17:01","date_gmt":"2023-04-04T09:17:01","guid":{"rendered":"http:\/\/www.carecloud.com\/continuum\/?p=25135"},"modified":"2025-10-24T14:35:13","modified_gmt":"2025-10-24T14:35:13","slug":"carecloud-q4-and-full-year-2022-earnings-call","status":"publish","type":"post","link":"https:\/\/carecloud.com\/continuum\/carecloud-q4-and-full-year-2022-earnings-call\/","title":{"rendered":"Everything That Went Down in CareCloud\u2019s Fourth Quarter and Full Year 2022 Earnings Call"},"content":{"rendered":"

This guide will provide a comprehensive overview of the fourth quarter and full year 2022 earnings call. But that’s not all. To give you a clearer insight into how the company achieved these numbers, it is essential that you take a dive into CareCloud’s key achievements and prominent client acquisitions in the fourth quarter, along with other efforts that positioned it for a better future ahead.<\/span>\u00a0<\/span><\/p>\n

So, without further ado, let’s get started!<\/span>\u00a0<\/span><\/p>\n

Kimberly Blanche, CareCloud\u2019s General Counsel and Vice President of Compliance, commenced the call and gave a brief introduction about the other hosts. She then handed the call to A. Hadi Chaudhry, CareCloud\u2019s Chief Executive Officer and President.\u00a0<\/span>\u00a0<\/span><\/p>\n

Mr. Chaudhry welcomed everyone in the fourth quarter and full-year 2022 earnings call. He said 2022 was a big year for the company on several fronts, including recurring bookings and redefining technology-enabled Revenue Cycle Management (RCM) solutions.\u00a0<\/span>\u00a0<\/span><\/p>\n

Besides, the CareCloud Wellness suite, which includes Chronic Care Management (CCM) and Remote Patient Monitoring (RPM), is rapidly gaining traction in the company’s user base, showing another record recurred booking in the fourth quarter of 2022, ending the year with $8 million bookings.<\/span>\u00a0<\/span><\/p>\n

A First Full Year of medSR Operations<\/span><\/b>\u00a0<\/span><\/h2>\n

2022 was also the first full year operating the medSR division, and it delivered a strong performance from a revenue and margin contribution perspective.<\/span>\u00a0<\/span><\/p>\n

One of the key considerations of the acquisition was leveraging medSR’s 200+ hospital relationships into cross-sale RCM-related services.<\/span>\u00a0<\/span><\/p>\n

\u201cWe acquired medSR in 2021, which generated an annualized revenue of $27 million during that year, while last year, it recorded $30 million in revenue.\u201d<\/span><\/i>\u00a0<\/span><\/p>\n

A. Hadi Chaudhry, CEO & President<\/span><\/i><\/b><\/p>\n

But that’s not the full story. The company has redeveloped and re-strengthened its relationship with several leading health system software vendors in the last year. It confirmed the cross-selling by increasing medSR RCM-related revenue by approximately 300%.\u00a0<\/span>\u00a0<\/span><\/p>\n

The leadership team plans on continuing to leverage the relationship for recurring revenue tech-enabled RCM, which will help overall growth.<\/span>\u00a0<\/span><\/p>\n

\u201cShareholders will appreciate the improvement in medSR’s contribution margin, increasing from 3% in 2021, the year we acquired it, to 14% in 2022, ending 2022 with a 24% run rate directly resulting from cross-selling and realizing anticipated cost synergies.\u201d<\/span><\/i>\u00a0<\/span><\/p>\n

A. Hadi Chaudhry, CEO & President<\/span><\/i><\/b><\/p>\n

Revolutionized Revenue Cycle Management with CareCloud\u2019s Tech-Enabled Solution<\/span><\/b>\u00a0<\/span><\/h3>\n

Mr. Chaudhry highlighted the impact of CareCloud\u2019s Revenue Cycle Solution over the company\u2019s revenue and how this one solution alone is vendor agnostic, as well as caters to the specific administrative and financial needs of physicians.<\/span>\u00a0<\/span><\/p>\n

CareCloud Hosted Its First Virtual Analyst and Investor Day 2022<\/span><\/b>\u00a0<\/span><\/h3>\n

The company held its <\/span>first Virtual Analyst and Investor day<\/span><\/a> during the fourth quarter on Monday, December 12th, 2022. During this event, the leadership team shared details about robust solutions, the value they provide, the depth and experience of the leadership team, and the perks of having a global workforce. Moreover, participants were also able to hear from two of its clients.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

This event was very beneficial in educating the investor community and the potential user base about the company’s comprehensive capabilities.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cWe also used this event as an opportunity to announce that we were changing our common stock ticker symbol from MTBC to CCLD to better align with our corporate brand.\u201d<\/span><\/i>\u00a0<\/span><\/p>\n

A. Hadi Chaudhry, CEO & President<\/span><\/i><\/b><\/p>\n

CareCloud started trading as CCLD on January 10th this year.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Driving Business Strategy- Successful Execution of Organic Growth Strategy\u00a0<\/span><\/b>\u00a0<\/span><\/h3>\n

Moving forward, Mr. Chaudhry discussed the success of the organic growth strategy, initiated in 2020, which resulted in the record highest organic growth bookings of 94% over the past two years.\u00a0<\/span>\u00a0<\/span><\/p>\n

Moreover, the company has expanded its sales team from 13 to 50 employees, a significant factor driving this growth.\u00a0<\/span>\u00a0<\/span><\/p>\n

By taking a closer look, it can be realized that the company has nearly doubled the level of bookings from the recurring revenue opportunities from 2021 to 2022.\u00a0<\/span>\u00a0<\/span><\/p>\n

Besides, new sales and marketing leadership was appointed in 2022 to better capitalize on the opportunities ahead, while the leadership anticipates these trends will continue into 2023.\u00a0<\/span>\u00a0<\/span><\/p>\n

Envisioning the Future- A Positive Outlook for 2023 and Beyond<\/span><\/b>\u00a0<\/span><\/h3>\n

CareCloud is laser-focused on converting its 2022 bookings success into revenue in 2023, excluding revenue from two large healthcare system customers that were acquired and migrated to their acquirer systems, forecasting 12% organic growth in 2023.\u00a0<\/span>\u00a0<\/span><\/p>\n

The goal is to produce double-digit organic growth revenue, and the team is confident they have a path to achieve that.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

The 2023 outlook is driven exclusively by organic growth, and any acquisitions will be incremental to the forecast.<\/span>\u00a0<\/span><\/p>\n

therapyEHR \u2013 Tapping into the Matured Rehabilitation Market with Innovation<\/span><\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span>At the American Physical Therapy Association (APTA) annual meeting, CareCloud\u2019s therapy-specific solution, CareCloud Remote, was launched, which is tailored specifically to meet the demanding needs of the rehabilitation market.\u00a0<\/span>\u00a0<\/span><\/p>\n

It includes comprehensive, easy-to-use, end-to-end tools for managing patient information and tracking progress.\u00a0<\/span>\u00a0<\/span><\/p>\n

In terms of the market dynamics in software solutions, the rehabilitation market is fairly mature and dominated by a couple of vendors. But innovation has not been at the forefront for some time. Identifying the biggest opportunity, CareCloud introduced therapyEHR.\u00a0<\/span>\u00a0<\/span><\/p>\n

The therapyEHR, named Remote, has already been used by a leading rehab practice of over 2,500 clinicians.\u00a0<\/span>\u00a0<\/span><\/p>\n

It is an example of CareCloud challenging the sharks in the healthcare industry with a solution that it believes to be technologically superior.<\/span>\u00a0<\/span><\/p>\n

Emerging Opportunities \u2013 A Path Leading to Scalability<\/span><\/b>\u00a0<\/span><\/h3>\n

Looking into 2023, the current industry has set up CareCloud incredibly well to capitalize on the new era of growth, as they identify an abundance of emerging opportunities in the future, including its first non-US customers.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

With the government making EHR mandatory in UAE, the adoption of EHR solutions poses an exceptional opportunity for CareCloud to penetrate the UAE healthcare industry, going into 2023. It parallels the US meaningful use (MU) initiative that the company benefited from a decade ago.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Besides, CareCloud realizes these opportunities in the healthcare space through its medSR division. Its propriety ambulatory EHR for the private practice space will need to be certified with the ministry of health and prevention in technology-enabled RCM space and various other digital health initiatives.<\/span>\u00a0<\/span><\/p>\n

The leadership team hopes to enter this new market in the coming year and assures to update on their progress.\u00a0<\/span>\u00a0<\/span><\/p>\n

The company’s solid operational results in 2022 can be attributed largely to its powerful combination of technology and services, redefining the next generation of RCM solutions for the ambulatory setting.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

To summarize, CareCloud is optimistic about its organic growth initiative that is starting to take hold.\u00a0<\/span>\u00a0<\/span><\/p>\n

Its Wellness Digital Health offering; medSR hospital offering; workforce augmentation offering, CareCloud Force; and expansion to the non-US market where it feels to have a distinct competitive advantage are all playing a role in garnering this confidence in the future.<\/span>\u00a0<\/span><\/p>\n

Secondly, one of its top priorities in 2023 is onboarding new clients, and converting record bookings into revenue; its work in 2022 has left it well-positioned in the industry to deliver continuous growth moving forward.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Mr. Chaudhry then turned the call over to Bill Korn, Chief Financial Officer, to offer a closer look at the fourth quarter and full year 2022 results.\u00a0<\/span>\u00a0<\/span><\/p>\n

But before we dive into the technicalities of the company’s financial side, let’s first take a quick tour of all the key milestones and prominent client acquisitions in the fourth quarter of 2022.<\/span>\u00a0<\/span><\/p>\n

Celebrating Success: A Preview of CareCloud’s Fourth-Quarter Achievements\u00a0<\/span><\/b>\u00a0<\/span><\/h2>\n