Greetings, and welcome to CPSI Third Quarter Earnings Conference Call. [Operator Instructions]. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Dru Anderson. Thank you. You may begin.

Good afternoon, and welcome to the CPSI Third Quarter 2022 Earnings Conference Call. During this conference call, we may make statements regarding future operating plans, expectations and performance that constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution you that any such forward-looking statements only reflect management expectations and predictions based upon currently available information and are not guarantees of future results or performance. Actual results might differ materially from those expressed or implied by such forward-looking statements as a result of known and unknown risks, uncertainties and other factors, including those described in our public releases and reports filed with the Securities and Exchange Commission, including, but not limited to, our most recent annual report on Form 10-K. We also caution investors that the forward-looking information provided in this call represents our outlook only as of this date. And we undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this call. At this time, I will now turn the call over to Mr. Chris Fowler, President and Chief Executive Officer. Please go ahead, sir.

Thank you, Dru, and thanks to everyone for joining us today for our Third Quarter Earnings Call. I'm joined by our CFO, Matt Chambless; and also David Dye will be available for Q&A. As you may have read in our recent 8-K, David is transitioning into a new role of Chief Operating Officer, which is designed to help streamline the organization and oversee the function of our business units, which I will talk about shortly. First, let me begin by saying that we are pleased to deliver third quarter results that are broadly in line with consensus and our expectations. Total revenue for the quarter was $83 million, with roughly 60% of that revenue deriving from TruBridge. I would like to call out that 94% of TruBridge's revenue is recurring, demonstrating progress towards our business model weighted towards high visibility and predictability. We generated $13.3 million of EBITDA during the quarter, an increase of 9% over the prior year quarter. Total bookings were $20.5 million with greater than half of those deriving from TruBridge, consistent with our pivot towards greater RCM and patient engagement services. This week marks 100 days since I was appointed CEO of CPSI, and I'd like to take a few minutes to share a few observations. Along with our people, we believe that our client base is our greatest asset. And both customer satisfaction and retention are key elements of our growth story. In the last 100 days, I've held countless meetings with customers. What resonates the loudest for them is CPSI's commitment to streamlining workflows and easing the pressure and stress that often come with managing resources and the financial health of their organizations. By working toward those goals, we allow providers to better engage patients in their own health care and remove distractions so…

Thanks, Chris, and thank you all for your continued interest in our evolving story. Today, I would like to comment on our bookings trends, review our third quarter results and then conclude by addressing our outlook for the remainder of the year. With respect to bookings, total CPSI bookings of $20.5 million were down 30% versus the third quarter of 2021. And the main driver of that decline was acute care EHR bookings that fell by 48%. This wasn't entirely unexpected as we forecasted bookings to be down relative to a tough comp in the year-ago period. And we note that quarterly bookings and system sales are volatile by nature. Offsetting this, we are pleased that the momentum we are seeing in TruBridge sales continued in the third quarter. TruBridge bookings were $11.5 million. And while down sequentially off a very strong second quarter, our third quarter performance was still impressive amid a seasonally weak summer. As we continue to build on the cross-sell opportunity within our CPSI customer base, we're encouraged that cross-sell bookings increased 30% sequentially and greater than 3.5x those of the third quarter of 2021. To provide some more context, trailing 12-month cross-sell bookings were 28% higher than that of pre-pandemic levels, while net new bookings were 31% greater. These metrics are indicative of a highly satisfied and engaged customer base that has an appetite for additional value-added services from CPSI. With respect to the third quarter results, total revenue of $82.8 million increased 18% year-over-year and benefited from our acquisition of HRG in March of this year. TruBridge revenue of $47.9 million increased 39% from the prior year quarter and experienced organic growth of 10%. The overall increase was driven primarily by the HRG acquisition, as mentioned, as well as the organic expansion of our…

[Operator Instructions]. Our first question is from George Hill with Deutsche Bank.

It's [indiscernible] on for George. So we have to hear a lot of discussions with some large vendors trying to hike prices in the market. Can you talk about the pricing environment both for new businesses and renewals considering the inflationary pressure and the pricing action taken by the large vendors?

Yes, , I just want to clarify the question. Did you say hiding pricing and then wanting to understand if we -- what impact we're seeing from an inflation standpoint on new contracts and also renewals?

Oh, I was trying to say that some large vendors are trying to increase price, whether they are trying to increase prices by at least 25% to 50%.

Yes. , David Dye here. Thanks for the question. That's not something that we've seen in our market from -- at least in the electronic health record market. And then on the TruBridge side as well, I would say that we've seen prices hold steady, if not slightly decrease as the competitive vendors and ourselves included, continue to offshore more to be more efficient.

Yes, and this is Matt. I'll hop in on the renewal side of that. One of the things that we prided ourselves on over the years that CPSI has been in existence is being a long-term partner for our customers. And part of that is included in our contracts for recurring revenue streams, some language around auto renewals. And while there are some levers in place for some inflationary-adjusted increases there, in certain of our contracts, those are capped, say, 3% to 5%. So we may not be able to recover all of the full, I guess, inflation now is somewhere north of 9% or north of 8%. But there are measures we can take on the renewal side to reduce that burden.

Our next question comes from Joy Zhang with SVB Securities.

My first question is on the Get Real Health delay side. I understand that you mentioned that it's a customer-driven event for both cases. Just wondering if you can provide any color on what's driving that kind of delay, whether that's something isolated to those specific customers, those 2. And whether -- or whether it's a read through to a sort of broader trends that could be happening in your customer base?

Joy, David here. Yes, I'll comment on both the delays that both Chris and Matt referenced in their comments. The large domestic delay, which has now gone live but in large part was due to integration issues with EHR vendors on both the ambulatory and inpatient side with the health system. And that has now been resolved and largely was not on our end. On the international opportunity had more to do with the delay in the go-to-market and marketing strategy and the timing of rolling that out, which is, again, has now been done but ended up being all told about 6 months behind schedule. Also with the international opportunity was over in Asia Pacific, there was, I would say, COVID was a part of it as well.

Joy, this is Chris. I'll add as well. I think it's important when you're thinking about the segments of business that with the patient engagement and Get Real Health, so obviously, we're selling to the provider or to the organization. And then they're selling to the patient for lack of a better term. And so from an adoption standpoint and revenue recognition, the tail on that is going to be a little bit longer. As we get farther into the business, we'll have a little more visibility there and also thinking about how we can take a more active role in the adoption for the patients for their customers going forward.

Appreciate that color. And definitely appreciate the COVID-related craziness in Asia Pacific as well. So following that, my next question probably is more for Matt. So wondering if you can give more color on this. I don't know if you mentioned on the earlier prepared remarks, but you guys announced a partnership with i2i Population Health earlier, I think this month earlier. Wondering, Matt, if you can give any sort of color around sizing or revenue contribution, whether that's embedded in guidance. Any color on what this partnership entails would be great.

Joy, I'll take a stab at that, too. David again. I think incrementally into 2023, I think the opportunity from a revenue contribution standpoint is negligible, probably a couple of million dollars. It's a rev share agreement. I think long term, it's more significant. They're in -- there are several reasons why we announced the partnership. They were already in about 25 of our hospitals, in particular, in several states that had announced and had begun to execute on Medicaid value-based care pilot programs, in particular, Colorado and Texas. And so -- and we had worked with them and had a great partnership from an integration standpoint and sharing our APIs and being completely integrated with that product. So the next step, obviously, it just made sense from a partnership standpoint. We've had a couple of webinars in a couple of more states the uptake and the amount of follow-on demonstrations has been, I would say, phenomenally well received. So I do think it gives -- and I will also say this, and Chris touched on this in his commentary. And I've been with Chris on a lot of the touring that he's done around the country since he's been CEO and visiting with our customers. They have a need for quality-based reporting and core measures reporting. And our system can certainly handle that to some degree, but what i2i can do from a best-of-breed solution is second to none. And so that's why we went about the partnership.

Yes. And to add to that, I would also say it's just part of our plan is we're thinking about continuing to help these -- our customers and partners be viable financially. They're doing the work already and how can we help them get more credit for the work they're doing. And so finding partners that can facilitate that through the programs with Medicaid and Medicare and even into the commercial payers makes good business sense for us to be able to deliver that. And obviously, we have a broader scale and ability to get that through our customer base than i2i does one at a time.

We have reached the end of our question-and-answer session. I would now like to turn the floor back over to Chris for closing comments.

Thank you, Maria. And thank you all for joining the call today, and thanks for your continued interest in CPSI. Have a great evening.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.