Good morning. My name is Joel and I will be a conference operator today. At this time, I would like to welcome everyone to the CareCloud Fourth Quarter 2023 Results Conference Call. [Operator Instructions]. Thank you. I would now like to turn the conference over to Chantelle Melendez, Corporate Counsel. Please go ahead.

Good morning, everyone. Welcome to CareCloud's fourth quarter and full year 2023 conference call. On today's call, our Mahmud Haq, our Founder and Executive Chairman; Hadi Chaudhry, our Chief Executive Officer, President and the Director; and Norman Roth, our Interim Chief Financial Officer. Before we begin, I would like to remind you that certain statements made during this conference call are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. All statements other than statements of historical fact made during this conference are forward-looking statements including without limitation statements recording our expectations and guidance for future financial and operational performance, expected growth, business outlook, and potential organic growth, and acquisition. Forward-looking statements may sometimes be identified with words such as will, may, expect, plan, anticipate, upcoming, believe, estimate, or similar terminology and the negative of this term. Forward-looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. These statements reflect our opinions only as to the date of this presentation and we undertake no obligation to revise these forward-looking statements in light of new information or future events. Please refer to our press release and our reports filed with the Securities and Exchange Commission where you will find a more comprehensive discussion of our performance and factors that could cause actual results to differ materially from these forward-looking statements. For anyone who dialed into the call by telephone, you may want to download our fourth quarter and full year 2023 earnings presentation. Please visit our Investor Relations site, ir.carecloud.com, click on News & Events, then click IR calendar, click on full-year 2023 results conference call, and download the earnings presentation. Finally, on today's call, we may refer to certain non-GAAP financial measures. Please refer to today's press release announcing our fourth quarter and full year 2023 results for a reconciliation of these non-GAAP performance measures to our GAAP financial results. With that said, I'll now turn the call over to our CEO, Hadi Chaudhry. Hadi?

Thank you, Chantelle, and thanks to all of you for joining our fourth quarter and full-year earnings call. I have several important updates to share from the quarter end for CareCloud's path forward. During 2023, we intensified our focus on operational efficiencies with the goal of improving profitability and free cash flow, while challenges to revenue persisted in 2023, we have been aligning our costs with our revenue goals and focusing on the highest return opportunities. This transitional period is expected to continue through 2024. Our primary objective remains centered on profitability and free cash flow. Underpinned by an organization-wide commitment to operating leverage and improving over competitive position, we expect modest top-line growth as we lay the foundation for sustainable long-term expansion and a pathway to a more normalized growth rate in 2025. We remain confident in our mission of empowering physicians to deliver exceptional patient care through our cloud-based technology, while delivering returns for our shareholders. Our proprietary end-to-end platform is fully integrated and designed with the flexibility to be adapted across markets and to meet the needs of our physician partners and the complexity in healthcare administrative evolves. We are seeing rising demand for over tech enabled RCM digital health and generative AI solutions. We remain prepared to deliver scalable outcomes to a global workforce in over 20 years of experience. Turning to our results for the full year. Our revenue of $117 million and adjusted EBITDA of $15 million when in line with our expectations. As to the year ahead, our primary objective during 2024 is to substantially increase positive free cash flow, reducing the balance on our credit line while pursuing the resumption of our preferred dividends. This goal will be achieved through a combination of top-line growth and a concerted effort to optimize our…

Thank you, Hadi. I'm excited in my role as the interim CFO of CareCloud, which started in January of this year. As we navigate through this year of transition, my focus is on enhancing our financial discipline and pulling the appropriate leverage to increase our operating leverage within the business. On October 2nd, 2023, the company announced that it was committed to effectively aligning its resources with business priorities and to improving profitability. Cost reduction measures were implemented during the fourth quarter of 2023 to optimize efficiency, streamline operations, and enhanced financial performance. Once these cost initiatives are complete, we expect to achieve approximately $18 million in annualized cost savings of which approximately $13 million will be realized in 2024. In December, 2023, we suspended the preferred stock dividend resulting in cash savings of $1.3 million per month. This was a difficult decision, but one that we considered necessary. Again, our goal this year is to reduce costs, return the company to profitability, and generate positive free cash flow. Once sufficient cash flow is generated, our initial goal is to reduce the borrowings on the line of credit. Once our monthly free cash flow exceeds the dividend requirement for a few months, management will recommend to the company's Board of Directors to reinstate the preferred stock dividend. The GAAP net loss for 2023 includes a $42 million goodwill impairment charge, which is a non-cash charge. As a result of suspending the preferred stock dividend, it was a decrease in the company's market capitalization, which caused what is known as a triggering event requiring the company to review the carrying value of its goodwill balance. The goodwill balance on our balance sheet has now been reduced by $42 million from the prior year. In the fourth quarter of 2023, we reported…

Thank you, Norm. As discussed, our entire team is focused on increasing profitability and free cash flow, while supporting our sustainable growth. I would like to thank our employees, customers, and shareholders for their continued support. Operator, please open the floor for questions.

[Operator Instructions]. Your first question comes from Allen Klee with Maxim Group. Please go ahead.

Just wanted to go over your guidance for ’24 and where you have the revenue increasing. Could you go into that a little more? And what's your assumption for medSR, which just in general has been somewhat challenged. So, just kind of give us how you think about how conservative the guidance is and what could cause it to end up lower than that? Thank you.

Good morning, Allen, and thank you for the question. So, I think if you, first of all, before getting to specifically towards your answer, I'm just going to -- I will try to reiterate the fact that, if you think about for 2024, we are strategically directing our focus towards enhancing the bottom line profitability. While we do maintain a balanced approach that recognize the significance of top-line growth at the same time but as that remains the key priority for us. But we believe that sharpening our focus on profitability is essential for long term sustainability and value creation for our shareholders. So that's why if you think, if you look at it and our guidance our EBITDA guidance is you can see a significant increase over the last year, that since we are trying to focus on the liquidity and the profitability. From the medSR standpoint, we are in the process of stabilizing and are restrengthening our relationship with the key industry health system players such as APAC, Meditech and the like. We have had some successes, and we look -- it looks like that we probably will have more success as we get into the year. So, for this year for 2024, we think, we believe that the revenue would at least be they stabilize at the same level as it is on -- in 2023, small top-line growth. Having said that, if we are able to pull off some of these relationships, whether it's Apio Meditech and the like, which are the top players, we may see some more growth, but we not accounting that as part of the guidance. From the top-line perspective, this is a combination of our regular sales, our chronic care management and the remote patient monitoring. So, we have recounted that for, and that's why we are not trying to put up to optimistic growth targets on the top line, but the focus will continue to be throughout the year towards the profitability, and that's where you the shareholders will find the true value.

Thank you, very much. And my follow-up question is on, I don't remember what the name of it was, but a product that uses AI to create notes, where is that, could you talk about that a little more and how you're targeting your -- and what the benefits are to the doctors?

And similar to -- and similar to many other current other annual competition, everyone has started to introduce these products. And in our space, I think the way we are looking at it, it's going to be more value towards improving the workflow of the medical practices, how they can serve their patients better. So, so far, there was one product we launched last year and then there is a reason when we demonstrated even. The first one was where we are guiding the provider. We are trying to guide the provider in terms of these could be the potential next medicines or the test that can be prescribed to the patients. And the other one which we recently demonstrated is where the AI can listen to the patient doctor conversation and then convert that into a note. And once the doctor reviews it and can click it and save it into the chart. So, if we want to improve the time, it's going to help the providers serve the patients better. If you think about it for the first one, we are still going through optimizing the results as AI even no matter which AI model that you use over the time, it's continuously being trained and the responses with the prompts are being improved. So, we are going through that optimization, we have over 100 subscription, as you would say, without -- and we haven't yet started charging the per license fee, and we will keep on evaluating the right time when we should introduce our people for this product. But have we started to see the progress made into this product and how it's adding the value to the day-to-day workflow of the medical practices.

[Operator Instructions]. There are no further questions at this time. Please proceed.

Well, there's no more questions then. Thank you everyone for joining our call. Please enjoy the rest of your day. Thank you.

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your line.