CHANGE HEALTHCARE INC (NASDAQ:CHNG) Q1 2021 Earnings Conference Call - Final Transcript
Aug 06, 2020 • 08:00 am ET
Thank you for standing by, and welcome to the Earnings Conference Call of Chase Healthcare Inc. Q1 Fiscal Year 2021. [Operator Instructions] Thank you.
It is now my pleasure to turn the call over to your first speaker for today, Mr. Evan Smith, Senior Vice President, Investor Relations. Sir, you may begin.
Thank you, operator. Good morning, and welcome to Change Healthcare's earnings call for the first quarter of fiscal 2021 which ended on June 30, 2020. I'm joined today by Neil de Crescenzo, Change Healthcare's President and CEO; and Fredrik Eliasson, Change Healthcare's Executive Vice President and Chief Financial Officer. First, Neil will provide a business update, and then Fredrik will review the financial results for the quarter and outlook followed by closing remarks from Neil. After that, we'll open the call for questions. Before we begin, I would like to remind you that the comments included in today's conference call include forward-looking statements.
Actual results may differ materially from the results suggested by the comments for several reasons which are discussed in more detail in the company's SEC filings. Except as required by law, Change Healthcare assumes no obligation to update any forward-looking statement or information. Please also note that where appropriate, we will refer to non-GAAP financial measures to evaluate our business. Reconciliations for non-GAAP financial measures to GAAP financial measures are included in our earnings release and the appendix of the supplement slides accompanying this presentation. I want to remind everyone that copies of the earnings release and the supplemental slides accompanying this conference call are available in the Investor Relations section on our website at www.changehealthcare.com.
With that, I'll turn the call over to Neil. Neil?
Thank you, Evan. Good morning, everyone. While COVID-19 continues to impact both the U.S. health care system and economic activity, we at Change Healthcare moved decisively to strengthen our long-term position in the market through operational initiatives to improve our cost structure and productivity as well as through new sales initiatives and solution introductions to address current and future customer needs. We are seeing positive indicators with customers across all three segments. First quarter bookings were in line or slightly above our expectations across the board, with a continued increase in our average deal size and steady win rates. Our sales cycles and implementation time lines continue to be slightly extended. However, we are receiving strong lead generation above pre COVID levels as a result of our digital marketing and enterprise sales initiatives across both payers and providers.
Our conviction on the value and innovation we are bringing to payers, providers and consumers is further supported by the findings of the 2020 Change Healthcare Harris Poll Consumer Experience Index which explored the consumer health care journey. Our research established that finding, accessing and paying for health care in America requires so much work that half of consumers surveyed have avoided seeking care. More than 2/3 of consumers said every step of the health care process is a chore and most