Inventurus Knowledge Solutions

“I have always said that business, the industry is growing at 12%. We will continue to do better than that on a constant currency basis.”

“If I were you, I would not be modeling any significant growth in the TruBridge business this fiscal year.”

“So I wouldn't model too much growth, at least for FY 2028 and FY 2029, in the TruBridge system of record business, because the idea is that's the platinum mine.”

“I've always maintained that at the other side of this acquisition, we should be able to get back to our traditional margins of early to mid-30s. I reiterate that we should be able to get that.”

“by FY 2030, we hope to bring both books of business to healthy margin levels, which is the early to mid-30s.”

“Happy to report four wins in the legacy IKS business, one of which was a major cross-sell into Augusta Health, which is part of the broader Mayo Clinic network.”

“White-Wilson and Evolve being multi-specialty and single-specialty freestanding medical groups. Then, of course, UMass Memorial being the big health system in the greater Massachusetts area.”

“Then, of course, TruBridge added a new customer called MISH, which is a specialty surgical hospital.”

“Year-on-year, the growth in the IKS business was a little over 13% in U.S. dollar terms, coming in at about $101 million.”

“on the legacy TruBridge business, we came in right around $68 million.”

“I think our thesis that we will be able to transform TruBridge from a steady to declining revenue asset to eventually a highly profitable growth asset still has merit”

“But starting fiscal 2028, I think we should start to see significant green shoots of growth.”

“It creates a pretty significant revenue growth opportunity, and that's why we are looking at this TruBridge acquisition not just as something that creates very significant margin synergies, but eventually it's a growth acquisition that we want to drive growth, and industry-leading growth at that, into the TruBridge customer base through the IKS system of action.”

“Very happy to report that I think the business is even stickier than we had imagined.”

“Remember, there are 600+ hospitals on the EHR, and probably not more than 200 of them have the financial health offering in there. There's a huge white space”

“we have now launched already two extensive customer assessments of legacy TruBridge customers where they have indicated interest to take our full platform system of action.”

“You might see some spikes like that going forward of one-time revenue in the upcoming quarters.”

“Think about, there are seasonal projects that come up around value-based cares, for example, HCC coding and retrospective review of patient charts before you submit them to CMS with a certain code.”

“IKS's underlying margins remains at very similar healthy levels as you saw in Q1, around the 34.5%-35% mark.”

“Mayank, when you take that up, the number is going to be 21, 22.”

“nothing material has been realized yet. The bulk of the synergies lie ahead of us.”

“Then obviously, as we integrate the two G&A organizations, there will be some synergies realized for that. So all those three vectors will start playing out second half of Q3 onwards.”

“our early analysis on synergies is that we have the opportunity to beat our own expectations on synergies from the acquisition than meet them.”

“The net debt number at the end of the quarter stands at INR5,280 crores, or approximately $550 million. With continued extraction of synergies and cash generation, we hope to be able to continue to pare this down in the future quarters.”

“we had assumed a gross debt of about $611 million at the time of TruBridge acquisition.”

“adjusted OCF that came in at INR393 crores, which represents a very healthy conversion of up to 90% of EBITDA.”

“Adjusting for both of these items, cash conversion remains at 90%, and this, we hope, will only keep going up in the future as well.”

“What we have in the facility agreement is it's a five-year loan.”

“I do want to call out that this deal, as discussed in the last quarter, is EPS accretive.”

“we would have access to about 5 million patient records. Very happy to note that actually the access to patient records is even greater. I think the number is 3.5x- 4x of that.”

“No cross-sell of EHR into the legacy customer base, but acute RCM could sell into the legacy customer, IKS customer base that owned hospitals.”

“TruBridge also has a fantastic product called Encoder, which is an automated coding tool. We do believe that there is significant cross- sell potential into the IKS's customer base”

“This is PAT accretive this quarter and will continue to remain so as we continue to work and improve on the TruBridge business model.”

“Second half of Q3. There will be a disclosure that will come out when the grant is actually approved.”

“Three of the top five executive leaders of TruBridge have now assumed executive leadership roles in the combined entity.”

“Chris Fowler, who is one of their senior most executives, was CEO of TruBridge, has been there 25+ years. Now is the Chief Strategy Officer of the combined IKS”

“Amaris, who now is our Global CHRO, was the CHRO of TruBridge”

“David Harse, who used to run the TruBridge EHR business, which I think is the crown jewel of this acquisition for many reasons, has continued to assume the role of the GM of the EHR business, which also sits in our acute business unit.”

“Q1 FY 2027 legacy IKS had hit an EBITDA of about 34.5%. I am happy to report that we are able to maintain those margins in spite of significant acquisition expenses, of which there were about nearly INR25 crores of acquisition expenses in this quarter.”

“The EBITDA does have one-time integration expenses of INR25 crores”

“we also ended up paying slightly higher tax to the tune of about INR30 crores this quarter. Again, this is only a timing issue.”

“we had a short-term project from one of our top five customers, and that's why you see the decline quarter-on-quarter.”

“the INR96 crores appears in my operating cash flow. As you can imagine, this is fully covered by the cash that we got, which is sitting in my financing activities, and this is, of course, a non-recurring item.”

“The MSO is loss-making. However, the losses continue to shrink as we scale up our implementation of the platform and the productivity of the doctors continue to increase.”

“even as we are stabilizing the current churn in the TruBridge financial health customer base, we start to build the engines that will actually drive growth.”

“But again, these are very incremental numbers, and between what you're going to face in incremental price compression, competitive intensity, it's very hard to model that out as an additional significant growth vector.”

“we are going to see that there will be, in general, incremental price compression. We are bracing ourselves for that price compression, but that price compression is more than offset by our ability to drive productivity benefits”

“as it relates to our overall performance with INR1,592 crores odd in revenue, and about INR442 crores odd in EBITDA, which, coming out of the gate is already a 28% EBITDA.”

“All that resulted in, like I was saying, INR1,592 crores of revenue, which is about 104% year-on-year growth in rupee terms. Obviously, and at about a 78% growth QoQ in rupee terms.”

“the constant currency revenue or the U.S. dollar revenue was about $169 million.”

“the legacy IKS business is, give or take, about a $385 million run rate business, and the legacy TruBridge business, after eliminating the things that we don't want to keep, is about a run rate $300 million business.”

“we are nearly a $700 million annual run rate company, and we have gone to this number from, what were we, just three years ago in October 2023, prior to our IPO, we were about $150 million run rate company, right?”