Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you discuss the uptake of your advanced products, particularly Clarity, and how AI is being used to convert written data into structured data? A: Johnny Hecker, Chief Revenue Officer, explained that Clarity is in full production and uses AI to extract data from unstructured documents, converting it into structured data for systems like EHRs. There is significant demand, with several systems in production and ongoing proof of concepts to fine-tune solutions for customers.
Q: What are your expectations for corporate revenue growth going forward, and have you turned the corner in terms of demand? A: Scott Turicchi, CEO, noted that while Q4 2024 showed a 7.1% growth, a more normalized growth rate is about 5.5%. The company expects a 6.5% growth in corporate revenue for 2025, with a smooth progression anticipated throughout the year. Johnny Hecker added that the market has normalized post-pandemic, and the company is on an upward path with ambitions for double-digit growth in the future.
Q: How will the 2025 go-to-market investments be allocated, and is there a ramp-up period for these investments? A: James Malone, CFO, stated that investments will focus on expanding sales headcount and marketing efforts, with most effects seen in 2026 and beyond. The company is also reallocating marketing funds from SoHo to corporate marketing, including trade shows and digital advertising.
Q: Why isn't there more acceleration in the 2025 guidance despite the investments and demand turning the corner? A: Adam Varon, Senior VP of Finance, explained that while there is acceleration compared to last year, the majority of investments target upmarket customers with longer sales and ramp cycles. This results in a slower visible impact on revenue growth.
Q: How much of the corporate growth in 2025 is derived from the VA rollout, and do you expect any disruptions from federal bureaucracy? A: Scott Turicchi, CEO, mentioned that the VA rollout is expected to contribute about $5 million in 2025, with no anticipated disruptions from federal bureaucracy affecting the VA contract or the larger healthcare space.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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