Tabula Rasa HealthCare, Inc. (NASDAQ:TRHC) Q3 2018 Earnings Conference Call Transcript
Nov 06, 2018 • 06:00 pm ET
Good day, ladies and gentlemen, and thank you for standing-by. Welcome to the Q3 2018 Tabula Rasa HealthCare Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. Following management's prepared remarks, we will host a question-and-answer session and instructions will be given at that time. (Operator Instructions) As a reminder, this conference call is being recorded for replay purposes.
It is now my pleasure to hand the conference over to Mr. Kevin Dill, General Counsel. Sir, you may begin.
Thank you, and good morning. I'm Kevin Dill, Corporate Counsel and Chief Compliance Officer for the Tabula Rasa HealthCare.
(Forward-Looking Cautionary Statement)
These risks and uncertainties include the developing nature of the market for technology-enabled healthcare products and services and potential changes to laws and regulations that may impact our clients. For additional information on the risks facing Tabula Rasa HealthCare, please refer to our filings with the SEC, including the Risk Factors section of our most recent annual report on Form 10-K filed on March 14, 2018. A recording of this call is accessible through a link on the IR page of our website, and it will be available for 90 days.
I'll turn the call over to Dr. Calvin Knowlton, CEO, Chairman and Founder of Tabula Rasa HealthCare.
Thank you, Kevin. Good evening, and thank you for joining us for our third quarter 2018 earnings call. With me today are Dr. Orsula Knowlton, Co-Founder and Chief Marketing and Business Development Officer; and Mr. Brian Adams, our CFO.
I'm pleased to report that we exceeded our expectations across the board in the third quarter. Our revenue of $54.4 million increased 66% from $32.7 million in third quarter of 2017, and our adjusted EBITDA for the quarter came in at $9.3 million, a 125% increase over last year. Beyond the numbers, this was a quarter in which we further demonstrated our ability to deliver real results to our customers and to our members.
In PACE, we continue to see our medication risk identification and mitigation science yield substantial reduction in falls, ER visits and hospitalizations. This builds on the success we announced last quarter in the first year of a five-year CMS Enhanced Medication Therapy Management pilot whereby applying our medication risk identification and mitigation platform. We exceeded CMS goal of reducing medical expenses by at least 2% for Part D members.
In addition, Landmark Health was one of our first partners to license our MedWise platform to manage their members using their own physicians and pharmacists. Landmark conducted a study of 1,000 of their members and recently shared their preliminary findings with us. They segregated their members into two groups, a control group and an intervention group utilizing MedWise. In the study, Landmark found that they were able to realize approximately $2 million of annualized savings due to a reduction in ER visits and hospitalizations, while using MedWise. This translates to a roughly 4,000 reduction per person in annual medical expenses in the intervention group.