Uphealth, Inc. · OTC:UPHL
Uphealth — Investor Day (March 2022)
55 slides from Uphealth's investor day presentation, Mar 30, 2022
Slide 1: Reshaping Healthcare: UpHealth Analyst Day
RESHAPING HEALTHCARE UPHEALTH ANALYST DAY NYSE UPH MARCH 30, 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 Andy Balakrishnan Beck Panos Chief Executive Officer Chief Financial Officer EVP Telehealth (US) 4
Slide 5: Table of contents
Table of contents Part I: Overview Part II: Q4 and FY 2021 Performance Part III: Accomplishments and Strategy Part IV: Detailed Financial Results 5
Slide 6: Overview
OVERVIEW 6 6
Slide 7: About us
About us VISION UpHealth is dedicated to taking healthcare to the next level. We envision a world in which everyone, everywhere, can enjoy the best health. MISSION To power the world’s most trusted health institutions and usher in the next phase in healthcare by making connections and providing serv
Slide 8: Q4 and FY2021 Performance
Q4 AND FY2021 PERFORMANCE 8 8
Slide 9: Investment summary
Investment summary Unique and differentiated set of products and service offerings Strong operating performance across the three business units each of which are in massive markets Year over year pro forma revenue growth of 28% Continued shift of revenue mix toward higher margin Integrated Care Mana
Slide 10: Preliminary Q4 and FY2021 financial summary
Preliminary Q4 and FY2021 financial summary Q4 2021 FY2021 GAAP FY2021 Pro Forma Revenue $33.9 $123.9 $148.9 Gross Margin $13.0 $49.3 $58.6 Gross Margin % 38% 40% 39% Adjusted EBITDA ($12.5) ($6.5) ($4.0) Adjusted EBITDA (before ($9.4) ($1.4) $1.1 public company expenses) 10
Slide 11: Preliminary revenue bridge guidance to pro forma
Preliminary revenue bridge guidance to pro forma Revenue in $m 11
Slide 12: Accomplishments & Strategy
ACCOMPLISHMENTS & STRATEGY 12 12
Slide 13: Reshaping Healthcare
RESHAPING HEALTHCARE 13
Slide 14: Healthcare in the U.S. is not working
Healthcare in the U.S. is not working Unsustainable Poor Behavioral health Inadequate costs outcomes challenges access to care Spending will First in spend, Drug overdoses now The U.S. faces a reach last in all kill more than potential shortage measures of of up to $6.2T 100,000 (almost 20% U.S. per
Slide 15: UpHealth's businesses deliver on critical health needs
UpHealth’s businesses deliver on critical health needs Pharmacy UpHealth business segments: ▪ Deliver quality, digital-first infrastructure Behavioral Cloud Health based ▪ Drive data-driven insights, platform better outcomes, and enhanced patient experience ▪ Increase access to affordable care acros
Slide 16: UpHealth addressing macro trends
UpHealth addressing macro trends Telehealth increased 38x from a pre-pandemic baseline 100% of Medicare, 50% of Medicaid payments CMS expanding access to moving to alternative mental/ behavioral health payment models by 2025(1) services $1.5B per year to $4.4B program in California managed care to c
Slide 17: UpHealth solution overview
UpHealth solution overview Care team Patient Services Integrated Care Platform Integrate information, analyze data, coordinate teams manage health to improve outcomes, costs, and quality Existing Infrastructure Virtual Care Infrastructure and Systems End-points, hubs, clinics 17
Slide 18: Overview: Integrated Care Platform
Overview: Integrated Care Platform Customers ▪ Governmental agencies and counties ▪ Healthcare providers ▪ Managed care organizations County of Alameda Integrated Care Platform SyntraNet™ ▪ High growth healthcare segment Business Cloud-based platform with ▪ Targeting growth on top of 8M lives on pla
Slide 19: Deep dive: SyntraNet
Deep dive: SyntraNet Connected Care Community Configure care community with customer as anchor Data Integration and 8.0m 2.3m Analytics and Reporting 1 Interoperability Integrate data across Total Lives New Lives Analyze results and community to develop 360-degree in 2021 measures, refine programs 7
Slide 20: Overview: Virtual Care Infrastructure
Overview: Virtual Care Infrastructure Customers ▪ Health systems ▪ Governments Virtual Care Infrastructure ▪ Employers Martti™ telehealth platform (U.S.) State of Madhya HelloLyf virtual care infrastructure Pradesh (India) (Int’l) Advanced virtual care (digital Business ▪ Martti™ is leading, establi
Slide 21: Deep dive: Martti Interpretation
Deep dive: Martti™ Interpretation 27,000+ installed endpoints on both UPH and provider-owned devices provides meaningful channel expansion opportunity Care Team Interpreter Connect with a care 250+ languages available, team instantly, bringing with more than 50+ vital resources directly to available
Slide 22: Client testimonial
Client testimonial It really is amazing that all this technology came just in time for a world pandemic, where we need to figure out how to keep going and how to provide another level of service for people who are impacted by COVID-19. One of my favorite quotes is “There’s no such thing as luck, jus
Slide 23: Client testimonial
Client testimonial 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 (CHI) ANAKO Regional Director, Diversity Equity a
Slide 24: Deep dive: HelloLyf
Deep dive: HelloLyf All infrastructure leverages proprietary HelloLyf technology for telehealth and clinical decisions support Run Rate Estimated Return Solutions Overview Revenue Model Current Adj EBITDA on Invested Capital Count Margin Acute care hospitals with Revenue mix of Physical ER, ICU, and
Slide 25: Overview: Services
Overview: Services Customers ▪ Healthcare providers ▪ Managed care organizations Services U.S. Department of MedQuest™ pharmacy Veterans Affairs Nutrascriptives™ supplements Behavioral health ▪ Serves patients across all 50 U.S. states Business ▪ Significant opportunity to expand behavioral Language
Slide 26: UpHealth KPIs and success metrics
UpHealth KPIs and success metrics* 8m 1.8m Lives covered by $84m Encounters for Integrated Care with Recurring revenue services 2.3m lives added 466 39% 58% Active digital Total US telehealth clinics and digital Gross margin minute growth hospitals * 2021 26
Slide 27: UpHealth's businesses are highly differentiated
UpHealth’s businesses are highly differentiated Integrated Care Management UpHealth Differentiators ▪ Comprehensive market-leading technology platform ▪ Experienced team with ▪ State of the art architecture global healthcare expertise Virtual Care Infrastructure ▪ Proven ability to deliver solutions
Slide 28: Our customers span the healthcare spectrum
Our customers span the healthcare spectrum ACADEMIC SPECIALTY COMMUNITY PAYER / GOV’T / OTHER 28
Slide 29: 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 2
Slide 30: Healthcare demands are growing in the U.S. and abroad
Healthcare demands are growing in the U.S. and abroad ~$703B TAM ~$160B TAM ~$70B SAM (4) ~$46B SAM (4) US Market : ~$703B TAM Global : ~$160B TAM + $338B annual pharmacy spend + $92B worldwide demand for primary + $250B demand for medical care in care(3) rural areas(1) + $56B global language servic
Slide 31: The opportunity in India is sizeable and growing
The opportunity in India is sizeable and growing The India healthcare market is estimated at $120B+. Increasing focus on public health, a growing and aging population, and new government investment are driving rapid growth in the Indian healthcare market which is well behind other countries. Total p
Slide 32: UpHealth Executive Team
UpHealth Executive Team Dr. Ramesh Martin Beck Balakrishnan Chief Financial & Chief Executive Administrative Officer Officer Edna Johnson Chief Michael Rolla Nashina Asaria Communications Ranjani Chief Chief Product & & Corporate Ramakrishna Revenue Officer Marketing Officer Marketing Officer Chief
Slide 33: Wins
WINS 33
Slide 34: Milestone: Digital clinics surpassed 2m consults
Milestone: Digital clinics surpassed 2m consults UpHealth India took home a coveted “Company of the Year” Award for its outstanding leadership in digital transformation - TV9 Gujarati powered by SAP Surpassed 2m + 600 Clinics expect to reach 7M consults! consults per year 30-minute Average consult t
Slide 35: Product Launch: Martti Translation
Product Launch: Martti™ Translation “Martti™ services allow our care teams to quickly and easily provide medical information to patients in the language of their heart, the language they understand best. Martti™ services have inherent quality assurance processes built-in, so we’re confident patients
Slide 36: Case study: Alameda County Integrated Care
Case study: Alameda County Integrated Care The UpHealth platform has “enhanced communication and care coordination across many sectors that work to improve the health status and quality of life of our most vulnerable consumers“ - Medical Director 1.7M >725K 22K Residents Unique individuals Individua
Slide 37: Case study: Comprehensive Behavioral Health
Case study: Comprehensive Behavioral Health “As a sergeant and single father of 4 kids, I became stretched too thin and developed an addiction to alcohol. I entered the Transformations center for help. The turning point for me was buying into the program. Transformations knows exactly how to handle
Slide 38: Transforming UpHealth
TRANSFORMING UPHEALTH 38
Slide 39: Launching a broad-based transformation of our business
To realize our vision and the combined opportunity across our business lines – we are launching a broad-based transformation of our business. This transformation will position UpHealth to deliver on its growth objectives, and fully realize synergies across our core businesses to achieve the 1+1=3 pr
Slide 40: Transformation program strategic priorities
The transformation program is guided by our strategic priorities: ▪ Focus on highest growth businesses: syntranet ▪ Enhance comprehensive care management solutions to payers and governments ▪ Grow and expand Martti™ to become leading tele-consult provider ▪ Scale and optimize HelloLyf digital hospit
Slide 41: Evolving the SyntraNet business model
Evolving the SyntraNet business model to help providers better manage health and risk CURRENT FUTURE A technology platform that A comprehensive set of supports healthcare providers, technology-enabled capabilities health plans, governments and that allows providers to manage community-based organiza
Slide 42: Transformation program initiatives
Transformation program initiatives The goal of our transformation program is to deliver a strong foundation for growth, financial performance and operational excellence Sample Initiatives Revenue Operating Leverage Talent & Culture Accelerate sales of SyntraNet through Centralize G&A functions to re
Slide 43: Detailed Financial Results
DETAILED FINANCIAL RESULTS 43 43
Slide 44: Preliminary Q4 and FY2021 financial summary
Preliminary Q4 and FY2021 financial summary Q4 2021 FY2021 GAAP FY2021 Pro Forma Revenue $33.9 $123.9 $148.9 Gross Margin $13.0 $49.3 $58.6 Gross Margin % 38% 40% 39% Adjusted EBITDA ($12.5) ($6.5) ($4.0) Adjusted EBITDA (before ($9.4) ($1.4) $1.1 public company expenses) 44
Slide 45: Strong year-over-year revenue growth
Strong year-over-year revenue growth Revenue in $m 148.9 31.9 116.5 17.5 52.2 38.1 45.3 39.2 33.9 30.6 11.9 60.9 11.3 2.5 64.8 6.3 15.4 13.7 10.8 12.4 13.5 15.5 18.0 17.7 2020 PF Q1 PF Q2 PF Q3 Q4 FY 2021 PF 45
Slide 46: Preliminary revenue and margins by business line
Preliminary revenue and margins by business line Three Months Ended Year Ended December 21, 2021 December 31, 2021 Revenue GAAP GAAP Adjustments (1) Pro Forma (2) Integrated Care Platform $2.5 $31.9 $- $31.9 Virtual Care infrastructure 13.7 36.6 15.6 52.2 Services 17.7 55.4 9.4 64.8 Total $33.9 $123
Slide 47: Preliminary revenue bridge guidance to pro forma
Preliminary revenue bridge guidance to pro forma Revenue in $m 47
Slide 48: Preliminary adjusted EBITDA
Preliminary adjusted EBITDA Adj EBITDA in $m 8.2 3.0 3.1 2.4 (4.0) (12.5) 2020 PF Q1 PF Q2 PF Q3 Q4 FY 2021 PF 48
Slide 49: Preliminary adjusted EBITDA bridge to pro forma
Preliminary adjusted EBITDA bridge: guidance to pro forma ex public company costs Adj EBITDA in $m 20.0 (4.0) 49 * FY 2021 pro forma adjusted for public company costs
Slide 50: Financial targets (Non-GAAP)
Financial targets (Non-GAAP) FY2022 Long-Term Q4 2021 FY2021 Outlook Goals Revenue Growth 6%1 28% 38-56% 35% Gross Margins 38% 39% 42-43% 45-50% Adjusted EBITDA N/A N/A 7-8% 15-20% Margin (1) Growth from Q4 2020 (unaudited combined pro forma) to Q4 2021 50
Slide 51: Investment summary
Investment summary Unique and differentiated set of products and service offerings Strong operating performance across the three business units each of which are in massive markets Year over year pro forma revenue growth of 28% Continued shift of revenue mix toward higher margin Integrated Care Mana
Slide 52: Q&A
Q&A 52
Slide 53: Thank you
THANK YOU 53
Slide 54: Appendix
APPENDIX 54
Slide 55: Q4 and FY2021 GAAP to Non-GAAP
Q4 and FY2021 GAAP to Non-GAAP Three Months Ended Year Ended December 21, 2021 December 31, 2021 Adjustments Pro Forma GAAP (1) (2) Revenue $33.9 $123.8 $25.1 $148.9 Gross margin 13.0 49.3 9.3 58.6 Gross margin % 38% 40% 37% 39% Loss from operations (23.2) (66.2) (5.5) (71.7) Depreciation and amorti