Uphealth, Inc. · OTC:UPHL
Uphealth — Q2 2022 Earnings Presentation
29 slides from Uphealth's earnings presentation, Aug 15, 2022
Slide 1: Reshaping Healthcare
RESHAPING HEALTHCARE UPHEALTH Q2 2022 EARNINGS NYSE UPH AUGUST 15, 2022 1
Slide 2: Disclaimer
Disclaimer Presentation This presentation (this “Presentation”) is provided for informational purposes only. The information contained herein does not purport to be all-inclusive or to contain all of the information that may be required to make a full analysis of UpHealth or any investment in UpHeal
Slide 3: Disclaimer: Financial Information; Non-GAAP Financial Measures
Disclaimer Financial Information; Non-GAAP Financial Measures The financial information and data contained in this Presentation are unaudited and do not conform to Regulation S-X promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Some of the financial information and data contai
Slide 4: Presenters
Presenters Sam Martin Meckey Beck Chief Executive Officer Chief Financial Officer 4
Slide 5: Table of contents
Table of contents I: Business Overview II: Wins & Transformation Progress III: Q2 2022 Financial Performance IV: Q&A 5
Slide 6: I. Business Overview
SPHealth. . BUSINESS OVERVIEW
Slide 7: Investment summary
Investment summary Solid operating performance across three business units, all of which are in massive markets Strong revenue growth; $44m in Q2 2022, compared to $36m in Q1 2022 (a sequential 22% increase), combined with margin expansion from 43% in Q1 2022 to 51% in Q2 2022 Year-to-date revenue a
Slide 8: Strengthening the integrated model of care
Strengthening the integrated model of care Cloud-based platform with innovative workflows and analytics. Language interpretation, advanced virtual care (digital clinics) with remote monitoring, diagnostics, labs and medications. Virtual care teams. Transformations | Summit | Olympus | Recovery BHS M
Slide 9: Overview: Integrated Care Management
Overview: Integrated Care Management Customers § Managed care organizations § Healthcare providers Integrated Care § Counties and governmental agencies Management County of Alameda Business § High growth healthcare segment § Cloud-based platform with § Targeting growth on top of 8.29m lives on the i
Slide 10: Overview: Virtual Care Infrastructure
Overview: Virtual Care Infrastructure Virtual Care Infrastructure Customers § Health systems § Governments § Employers State of Madhya Pradesh (India) § Language interpretation, advanced virtual care (digital clinics) with remote monitoring, Business § Martti™ is a leading, established brand diagnos
Slide 11: Overview: Services
Overview: Services Services Customers § Healthcare providers § Managed care organizations U.S. Department of Veterans Affairs § Serves patients across all 50 U.S. states § Medications and pharmacy services Business § Significant opportunity to expand behavioral § Comprehensive behavioral health oppo
Slide 12: Our customers span the healthcare spectrum
Our customers span the healthcare spectrum ACADEMIC SPECIALTY COMMUNITY PAYER / GOV’T / OTHER 12
Slide 13: UpHealth is unique
UpHealth is unique Virtual Care Infrastructure $342B 37% Global Market annual growth in 2021(2) for telehealth software(6) Integrated Care Platform $49.5B 21% Global Market annual growth in 2021(1) for disease management Services $338B $ 56B $77B Pharmacy spend Global Language Behavioral Health in t
Slide 14: II. Case Studies
SPHealth. Il. CASE STUDIES
Slide 15: Martti contracts grow year-over-year revenue by 36%
Martti contracts grow Y-o-Y revenue by 36% "Interpretation by Martti™ further personalizes our patient care, allowing patients and their loved ones to be heard and understood in the languages they prefer.” – Darcy McConnell, Senior Director of Medical Affairs at Parsley Health $13.2m 46 new Q2 2022
Slide 16: Integrating behavioral health providers for L.A. County Department of Mental Health
Integrating behavioral health providers for L.A. County Department of Mental Health "Integrating information across school-based providers is an important step to address an urgent need to coordinate behavioral health services for children and youth.”– Dr. Ramesh Balakrishnan 12 mo. $7.9m Expanded s
Slide 17: Transformation Progress
TRANFORMATION PROGRESS UpHealth has made substantial progress on its transformation. Full implementation is on time and on target. 17
Slide 18: Transformation accomplishments to date
Transformation accomplishments to date ■ Concluded robust bottom-up initiative planning process to meet growth and profitability targets ■ Expanded contracts with existing SyntraNet customers driving an additional ~$7.5M of 2022 in-year revenue, and identified other expansion opportunities to pursue
Slide 19: Transformation program initiatives
Transformation program initiatives Deliver growth, profitability, cash flow, operating performance and discipline to create organizational structure and the culture of a market leader Revenue Growth Operating Performance Talent & Culture Development ■ Accelerate sales of SyntraNet ■ Create company-w
Slide 20: III. Q2 2022 Financial Performance
III. Q2 2022 FINANCIAL PERFORMANCE 20 20
Slide 21: Q2 2022 financial summary
Q2 2022 financial summary Q1 2022 Q2 2022 Summary Strong revenue growth: 22% from Q1 2022 to Q2 2022 • Revenue growth across all three business Revenue $36.0 $43.7 segments with largest revenue growth in highest margin Integrated Care Management segment Gross Profit $15.3 $22.4 Gross margin improvem
Slide 22: Strong revenue growth
Strong revenue growth Revenue in $m +14% +22% 79.6 43.7 69.8 39.2 10.4 36.0 7.8 11.3 2.6 17.6 11.3 32.4 16.8 15.6 23.2 12.4 36.8 17.7 17.7 19.0 29.1 15.5 H1 2021 PF H2 2022 H1 2022 Q2 2021 PF Q1 2022 Q2 2022 22
Slide 23: Preliminary revenue and margins by business line
Preliminary revenue and margins by business line Three Months Ended Three Months Ended Six Months Ended March 31, 2022 June 30, 2022 June 30, 2022 Revenue Integrated Care Platform $2.6 $7.8 $10.4 Virtual Care infrastructure 15.6 16.8 32.4 Services 17.7 19.0 36.8 Total $36.0 $43.7 $79.6 Gross profit
Slide 24: Financial targets (Non-GAAP)
Financial targets (Non-GAAP) Q1 2022 Q2 2022 Long-Term Goals Revenue Growth 18%1 22%2 35% Gross Margins 43% 51% 45-50% Loss from Operations $(17.9) $(10.0) N/A Adjusted EBITDA Margin N/A 9% 15-20% (1) Growth from Q1 2021 (combined pro forma) to Q1 2022 (2) Growth from Q1 2022 to Q2 2022 24
Slide 25: Investment summary
Investment summary Solid operating performance across three business units, all of which are in massive markets Strong revenue growth; $44m in Q2 2022, compared to $36m in Q1 2022 (a sequential 22% increase), combined with margin expansion from 43% in Q1 2022 to 51% in Q2 2022 Year-to-date revenue a
Slide 26: IV. Q&A
SPHealth. IV. O&A
Slide 27: Thank you
THANK YOU SPHealth.
Slide 28: Appendix
APPENDIX SPHealth.
Slide 29: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Three Months Ended Three Months Ended June 30, 2022 June 30, 2021 GAAP GAAP Adjustments (1) Pro Forma (2) Loss from operations $(10.0) $(35.5) $(4.6) $(40.1) Depreciation and amortization 6.2 3.6 0.9 4.5 Stock-based compensation 1.1 - - - Acquisi