Uphealth, Inc. · OTC:UPHL
Uphealth — Q1 2022 Earnings Presentation
34 slides from Uphealth's earnings presentation, May 12, 2022
Slide 1: Reshaping Healthcare
RESHAPING HEALTHCARE UPHEALTH Q1 2022 EARNINGS NYSE UPH MAY 12, 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
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 Ramesh Martin Balakrishnan Beck Chief Executive Officer Chief Financial Officer 4
Slide 5: Samuel J. Meckey to join UpHealth as CEO in July
Samuel J. Meckey to join UpHealth as CEO in July § Currently Executive Vice President and Head of Healthcare at EXLService, an industry leading digital intelligence company with $1.2 billion in annual revenues and 37,000 employees. § Prior to EXLService, spent 14 years at UnitedHealth Group’s Optum
Slide 6: Table of contents
Table of contents Part I: Business Overview Part II: Case Studies Part III: Q1 2022 Financial Performance Part IV: Q&A 6
Slide 7: Business Overview
SPHealth. BUSINESS OVERVIEW
Slide 8: Investment summary
Investment summary Unique and differentiated set of advanced technology products and services focused on managing and improving population health Solid operating performance across three business units, all of which are in massive markets Strong revenue growth; $36m in Q1 2022, compared to $33.9m in
Slide 9: Q1 Highlights
Q1 Highlights Integrated Care Virtual Care Services Management Infrastructure 8m lives now being managed via 4 large and long-term contracts with Ascension Texas, Indiana, Michigan and 3 New network provider contracts • Florida Blue Wellstar • 27% increase in consultation • New Directions Went live
Slide 10: 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 11: 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 8m lives on platform
Slide 12: 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 13: 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 14: Our customers span the healthcare spectrum
Our customers span the healthcare spectrum ACADEMIC SPECIALTY COMMUNITY PAYER / GOV’T / OTHER 14
Slide 15: 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 16: Case Studies
CASE STUDIES 16 16
Slide 17: New language interpretation wins across the U.S.
New language interpretation wins across the U.S. “I’ve seen MARTTI™ grow in my time here. And seeing what you’re doing and the programs that you’re spearheading–it’s going beyond a provision of services. You actually understand what diversity and inclusion looks like.” - N. Chineye Anako, Regional D
Slide 18: Significant consultation growth in India
Significant consultation growth in India “I came to get my check up and found out that there is a digital facility of telemedicine, through which I now have access to a gynecologist, pediatrician and a general physician. I got myself checked by a female doctor. I tell my neighbors about the great te
Slide 19: Next phase of Alameda County SyntraNet contract
Next phase of Alameda County SyntraNet contract “As the executive director of the agency, I’ve had to do direct service due to staff shortages. When assigned a new case, I could see the complete history of the patient in one place. It saved me time and let me jump right into problem solving.” – Jami
Slide 20: Increasing access for veterans and first responders
Increasing access for veterans and first responders The focus on trauma is salient during the pandemic when practitioners are seeing more severe levels of mental illness, addiction and drug overdose. New payer contracts allow for high-quality in-network curriculum-based substance abuse and mental he
Slide 21: Transformation Progress
TRANFORMATION PROGRESS UpHealth has made substantial progress on its transformation. Full implementation is on time and on target. 21
Slide 22: Transformation executing our strategic priorities
Transformation executing our strategic priorities § Focus on highest growth businesses: § Enhance comprehensive care management solutions to managed care organizations, healthcare providers, and counties § Grow and expand Martti™ to become leading tele-consult provider § Scale and optimize HelloLyf
Slide 23: Transformation accomplishments to date
Transformation accomplishments to date § Concluded robust initiative planning process § Re-structured organization aligned with strategic priority areas § Launched new go-to-market approach to rapidly scale SyntraNet solutions § Awarded 9 Martti RFPs over leading competitors in the last 3 quarters.
Slide 24: 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-
Slide 25: Q1 2022 Financial Performance
Q1 2022 FINANCIAL PERFORMANCE 25 25
Slide 26: Q1 2022 financial summary
Q1 2022 financial summary Q1 2022 Summary Strong revenue growth: 18% from Q1 PF 2021 to Q1 2022 Revenue $36.0 • 44% growth in Virtual Care Infrastructure driven by excellent performance of U.S. telehealth business Gross Profit $15.3 Gross margin improvement from Q4 2021 to Q1 2022 in all three segme
Slide 27: Strong year-over-year revenue growth
Strong year-over-year revenue growth Revenue in $m +28% 148.9 +18% 116.5 31.9 36.0 30.6 2.6 17.5 52.2 6.3 15.6 38.1 10.8 35.9 30.6 60.9 64.8 6.3 2.6 17.7 13.5 10.8 15.6 13.5 17.8 2020 PF 2021 PF Q1 2021 PF Q1 Q12022 2022 27
Slide 28: Preliminary revenue and margins by business line
Preliminary revenue and margins by business line Three Months Ended Three Months Ended December 31, 2021 March 31, 2022 Revenue GAAP GAAP Integrated Care Platform $2.5 $2.6 Virtual Care infrastructure 13.7 15.6 Services 17.7 17.7 Total $33.9 $36.0 Gross profit Integrated Care Platform $(4.2) $1.6 Vi
Slide 29: Financial targets (Non-GAAP)
Financial targets (Non-GAAP) FY2022 Long-Term Q4 2021 Q1 2022 Outlook Goals Revenue Growth 6%1 18%2 38-56% 35% Gross Margins 22% 43% 42-43% 45-50% Loss from Operations $(337.0) $(25.0)-$(33.0) N/A N/A Adjusted EBITDA N/A N/A 7-8% 15-20% Margin Guidance for 2022 Revenue: $205-$233m Adjusted EBITDA: $
Slide 30: Investment summary
Investment summary Unique and differentiated set of advanced technology products and services focused on managing and improving population health Solid operating performance across three business units, all of which are in massive markets Strong revenue growth; $36m in Q1 2022, compared to $33.9m in
Slide 31: Q&A
SPHealth. Q&A
Slide 32: Thank you
THANK YOU SPHealth.
Slide 33: Appendix
APPENDIX SPHealth.
Slide 34: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Three Months Ended Three Months Ended March 31, 2021 March 31, 2022 GAAP GAAP Adjustments (1) Pro Forma (2) Loss from operations $(25,000) - $(33,000) (2,838) (991) (3,829) Depreciation and amortization 5,000 – 6,000 922 1,837 2,759 Stock-based c