Slide 1: Third Quarter 2023 Results
Third Quarter 2023 Results 11.09.2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Industry, Market and Other Data Litigation Reform Act of 1995, particularly those regarding our 2023 Financial Guidance. Such forward-looking Certain infor
Slide 3: Risk Factors
Risk Factors The following factors, among others, could cause our business, prospects, financial condition, operating results and cash flows to be materially adversely affected: • Our fax and healthcare interoperability solutions constitute substantially all of our revenue and operating income. • Re
Slide 4: Business Overview
Business Overview
Slide 5: Q3 2023 Operations Update
Q3 2023 Operations Update • ECFax • Major Health System Wins • VA Rollout – additional facilities have adopted the solution • Combined 65 hospitals, 450 clinics, 25 urgent care centers • Roll-out pace is stabilizing and 107 SNFs • Initiated planning for larger roll-out in 2024 • Roll out throughout
Slide 6: Third Quarter 2023 Results
Third Quarter 2023 Results
Slide 7: Corporate Revenue – Driven By Customer Count, Declining ARPA and Slow Decision Cycles
Corporate Revenue – Driven By Customer Count, Declining ARPA and Slow Decision Cycles Corporate Revenue ($ in M) Quarter Ended Q3’22 (1) Q3’23 YoY 13% Accounts (1) ‘21/’22 YoY Growth 3.0% (000’s) 47 54 14.1% YoY Growth $49.0 $50.4 ARPA (1) (2) $348.94 $312.45 (10.5%) Paid Adds 4 3 (18.6%) (000’s) ~4
Slide 8: SoHo Revenue – Anticipated Decline Amid End of Price Increase Cycle
SoHo Revenue – Anticipated Decline Amid End of Price Increase Cycle SoHo Revenue ($ in M ) Quarter Ended Q3’22 Q3’23 YoY Accounts -6.2% (000’s) 978 859 (12.2%) YoY $42.8 $40.1 ARPA(1) $14.41 $15.31 6.2% Paid Adds 86 64 (25.6%) (000’s) ~40% Monthly Account 3.60% 3.49% +11 bps Churn ~60% ~51% Q3'22 Q3
Slide 9: Q3 2023 Results
Q3 2023 Results (in $M, except Adjusted EPS) Revenue Adjusted EBITDA Adjusted EPS(1) $91.8 $49.1 $90.6 $47.5 $1.43 $1.51 53.5% 52.5% Margin Margin Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3 2023 Reported Consolidated Revenue down ($1.2M) or (1.3%) YoY Adjusted EBITDA down ($1.6M) or (3.2%) YoY, Adju
Slide 10: Q3 2023 – Record Free Cash Flow Quarter
Q3 2023 – Record Free Cash Flow Quarter Cash and Cash Equivalents • 9/30/23 is a record cash balance of $156M vs. $104M over the prior comparable quarter • Excess cash is invested in money market funds and yielded $1.5M interest income in the quarter Free Cash Flow • Q3 2023 free cash flow of ~$50M(
Slide 11: 2023 Financial Guidance
2023 Financial Guidance
Slide 12: Q4 and FULL YEAR 2023 Guidance Range
Q4 and FULL YEAR 2023 Guidance Range In Millions, except EPS Q4 Guidance Range 2023 Full Year Guidance (Adj) GUIDANCE Low Midpoint High Low Midpoint High Revenue $87.5 $89.0 $90.5 $362 $364 $365 Adj. Non-GAAP EBITDA $46.3 $47.4 $48.2 $186 $187 $188 (1) Adj. Non-GAAP EPS $1.15 $1.17 $1.19 $5.13 $5.15
Slide 13: Appendix
Appendix
Slide 14: Consensus Consolidated Metrics
Consensus Consolidated Metrics 2022 2023 Consensus Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenue by Type |--------(in '000s)--------| Fixed Revenues 64,423 65,998 66,474 66,001 65,653 66,789 64,836 Variable Revenues 24,874 25,096 25,301 24,226 25,784 26,001 25,723 Fax Revenues 89,297 91,094 91,775 90,227 91,
Slide 15: Consensus Metrics – Corporate and SoHo
Consensus Metrics – Corporate and SoHo 2022 2023 Corporate Fax Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenue by Type |--------(in '000s)-----| Fixed Revenues 25,279 27,230 26,851 26,615 26,852 27,600 27,963 Variable Revenues 21,240 21,638 22,125 21,223 22,556 22,760 22,468 Total Corporate Revenues 46,519 48,