Brooks O’Neil: Alright. That’s very helpful. Thank you very much, Tee and Tom. I appreciate all the color.
Tee Green: Thank you.
Operator: Thank you. Next question today is coming from Matt Hewitt from Craig-Hallum. Your line is now live.
Matt Hewitt: Good morning and thank you for all the details, the quarter end €“ for taking the questions. Maybe first up, regarding the €“ I guess, there is two different pieces, obviously, that are impacting or creating a little bit of a headwind. One, you’ve got the hospital spending environment; and number two, you’ve got the implementation side. It sounds like the bigger headwind from those two right now is coming from the IT side. But could you provide a little bit of an update on hospital spending? It seems like the CFOs are on board. They want to get the product in or the products in plural. What do you think it’s going to take to kind of maybe just take that next step from a contract signing standpoint? Or have you kind of reached that point now where you’re signing the contracts as you get them presented, now it’s more a function of that IT side?
Tee Green: Yes, Matt, Tee here. Thanks for the question. The hospital spend has certainly changed or pivoted more to what we do. And what I mean by that at the macro level is hospitals coming out of COVID are woefully understaffed, especially in the administrative side of the business we consider the revenue cycle side. And so they have to look at technology that’s going to make them more efficient and use vastly fewer resources, meaning human capital because they are just not there. Billers, auditors, coders, they all €“ many just left, and they are not coming back. And so where CFOs may want to do some advanced clinical purchases. Right now, they have to shorten the revenue. In the way to short the revenue is they have to do things right in the beginning, so they don’t create work downstream on staff that they don’t have anymore, which here come to Streamline with pre built technology like eValuator and RevID.
So we think we’re in the suites and I forgot the most important part is we deliver a tremendous return on investment immediately, almost within a few months of implementation, there is real value. So I think when you look at €“ even take our name out of it, if you just look at what the finance departments are looking at implementing, you have to €“ does it enable us to run our hospital with fewer people? Yes. Does it deliver a tremendous return on investment immediately? Yes. Is it quickly implementable if we have IT resources? That’s the second part of the question, right? Yes. So when you look at stream, we check all those boxes. And so I think that’s pretty encouraging for bookings. Now you get to your other side of the question, the CIO side of the business, they don’t have resources either, unfortunately.
A lot of people left and went and did side consulting jobs and started working with the smaller IT companies. So we do have some work to do in the CIO world, meaning how do we €“ we know we provide tremendous value from a CFO’s perspective. How do we prove we provide tremendous value to the CIO? So what are some of the things that we could do? One, how quickly our platforms can be implemented? How secure they are? How interoperable they are with Cerner and Epic? How much we can do in their environment without their resources? So those are some of the things we’re working on.
Matt Hewitt: That’s really helpful. Thank you. Maybe a question for Tom, you are mentioning the $5.9 million ACV as of 11/30 and implied that basically it’s $4.5 million that’s not implemented yet. How many customers make up that $4.5 million? Is it just a couple that have several facilities or is it multiple? And I guess it just kind of might speak to how quickly you can kind of get those turned on once the resources are available?
Tom Gibson: Yes, there is two Avelead products, RevID and Compare customers, and then there is five eValuator customers. With the eValuator customers, no matter how many facilities they are, they usually only have one HL7 feed, maybe two, that we have to connect to in order to get them live. So if it’s a six facility hospital system or a two-facility hospital system, that is not €“ that doesn’t add a lot of complexity to the implementation. Does that help?
