Augmedix, Inc. (NASDAQ:AUGX) Q2 2023 Earnings Call Transcript

Manny Krakaris: Sure. Hi, Neil. So – what was, what’s new, with respect to notes is that prior to this quarter, and actually, it started happening sometime during the first quarter, we had been precluded from selling to some of our major, our biggest customers, because we had to go through new data security and compliance requirements, given the nature of that particular product. And that took some time, because we had to negotiate those new contracts with those entities. And there’s, you know, the standard bureaucracy that goes along with all of that. But we managed to get through most of them. And that’s unlocked our ability to sell that particular product into those organizations. And that’s what you see, now we’re seeing the fruits of that effort.

As some of those enterprise customers are seeing that, you know, one size fits all is not the right, necessarily solution for them and having the ability to pick and choose what best suits their particular physicians. Is the right way to go?

Neil Chatterji: Got it. Thanks for that color. Maybe one follow-up here, just kind of flipping Augmedix Go. Just kind of curious on the feedback that you’re getting on the ambulatory care setting side, and I guess how you see that evolving upon launch?

Manny Krakaris: Sure. So, we’re getting feedback all the time, every day, from the physicians who are testing it right now. And we’re incorporating the feedback into the design and development of that particular product. It’s still on track to be released commercially this year. So, we feel very confident about that. All we’re doing right now is really making it better and better based on the feedback we’re getting. So like I said, we feel very good about our ability to release this commercially this year.

Neil Chatterji: I mean, maybe just – any nuance there as far as – versus the acute care setting and kind of the progress with HCA just on that ambulatory sorry care side?

Manny Krakaris: Well. Okay. We do anticipate commercially releasing ambulatory version of Go, before the acute version, acute care setting version of Go. It’s not going to be a big gap. But maybe a few weeks, maybe a month or so. But there will be a staggered release between the two versions of Go.

Neil Chatterji: Got it. Thanks. I’ll hop back in queue.

Manny Krakaris: Sure.

Operator: Thank you. Our next question comes from the line of Brooks O’Neil with Lake Street Capital Markets. Please go ahead.

Aaron Wukmir: Hi. Good afternoon, everyone. This is Aaron Wukmir on the line for Brooks. Congrats on the print. So just curious sort of the reaction that you guys have been getting from other customers and potential products as a result of the relationship with HCA?

Manny Krakaris: Hi, Aaron, sorry, could you repeat that? You broke up a little bit.

Aaron Wukmir: Sure. Apologies. So just curious about the reaction that you’ve been seeing from other customers and potential prospects as a result of the relationship with HCA?

Manny Krakaris: Well, as you would suspect, it’s been pretty positive. The HCA partnership just adds another level of credibility to the company and our approach to how we go about incorporating Generative AI into our technology stack. So as far as the people who are making the purchasing decisions at these big enterprises, they are aware of it, and they applaud it. And we’re just – at this point, they’re waiting to see how that – the release goes for Go, and then we’re poised to sell to those organizations.

Paul Ginocchio: I think the only – Aaron, the only thing I would add is that the launch of Go was a fully tech solution has really probably elevated the conversations, we have with most of our existing customers. And probably brought us into the higher level with potentially new customers. So it’s been having that on the road map, that’s coming out in the back half of the year, has been really good for our overall conversations with clients.