Hello everyone, sorry for the delayed start here. Good morning and welcome to the Claritev Corporation Investor Presentation at the Wells Fargo 2025 Healthcare Conference. Before we begin, I would like to remind the audience that our comments will include some forward-looking statements. These statements involve a number of risks and uncertainties, and actual results could differ materially from those projected in the forward-looking statements. Please refer to the disclaimer slide of the presentation for further information. Next, please. Our agenda for this presentation includes our vision, products and offerings, technology, a financial overview, and strategic growth initiatives. With that, I'll turn the call over to Travis Dalton, our President and CEO, and Doug Garis, our EVP and CFO. Travis?
Yeah, thanks, thanks Jason, appreciate it. Thanks to those of you that are here, we appreciate your time. I'm Travis, President and CEO of Claritev. This is Doug, our CFO. We appreciate the opportunity to be here and share what we're doing. We're actually pretty excited and enthusiastic about the progress we've made. Hopefully, you've seen some of that. We think this is the beginning of what's going to be a really interesting journey. Next slide. You know, kind of the why are we here? Our goals and objectives are pretty clear. First and foremost, building a great company. We're focused on our clients, obviously our associates. We're really proud of the talent we've been able to attract here in the last year or so, remaking the management team. Ultimately, a renewed purpose for the company, which I think creates maximum shareholder value when those things line up.
That's what I came to do, was create that and ultimately express itself in financial value. Doug will talk about it, but we clearly are looking to deleverage, de-risk the business, and accelerate our growth thesis. We've had a year and a half now. I started March 1st the last year . It's been an interesting year. We're very pleased, like I said, with the ability to reset our capital structure at the end of last year and the progress we've made. I think we're in the top 10 in the Russell 2000 this year. Our performance has been very good. We actually think that that's just really not even the beginning of this journey. We're just getting started. We're very excited about the potential. Why now? We've had some appreciation in the value. We have some tax benefit from some recent regulatory.
The big beautiful bill was beneficial for us on the cash flow basis. Ultimately, we have a management team that all came here because they saw a purple unicorn, if you will, of potential for clients, but also personal value and wealth. The team's highly motivated to be successful. Next slide. Overview of the company, if you're sitting here, we have an overflow massive crowd here. They're all super excited if you can't see them on the webcast. If you're here, you probably know something about the company. Reframing the story a little bit, we are, I don't think the story was actually told exactly the way that it should have been. I mean, we have a network, we have a massive swath of healthcare that we cover from 1.4 million providers to 700 payers and, you know, millions of members inside of employer plans. Not many cover that ground.
I came from Cerner and Oracle, and we were really heavily on the provider side. We had no employers or payer customers. We saw one part of healthcare. The reason I came here was I saw solutions that worked, technology value, a committed purpose. I view this company much differently than the prior management team. I viewed it as a health technology company that could serve a much broader continuum. I'll talk about that. We're starting to see the expression of that. This is kind of what we do. Network is some of what people know us for. I think we've undervalued and under-delivered the network in terms of what we can do, especially in networks, curated networks. I think that's a growth opportunity for us. Payment revenue integrity, we're seeing tremendous growth in fraud, waste, and abuse protection. We expect that to continue.
Analytics and transparency, what I think we do is we bring publicly available data and insights to an opaque market. Others may not see it that way, but that's how we see it. This idea of understanding, healthcare is the only thing you buy, or you don't know the price, you don't know the outcome, you're not sure what you bought until they send you a bill and tell you if you healed or not. What we're trying to do is bring price transparency to that. Ultimately, data and decision sciences, which is a big growth area for us, which we'll talk about. We've added a, we've hired a Chief AI Officer. We've added a lot of talent in that area, and we're investing heavily in data and decision sciences. Next. Some people may not get excited by this slide. I do. This is, but we're doing the hard thing.
We didn't just come in and, you know, come up with a few tricks, launch a couple of marketing campaigns. We're literally transforming the company from the bottom up. We're actually, just this week, we went live on the Oracle Cloud Infrastructure. Our solutions are now fully cloud-enabled. Before they were all on-prem, and now we're in the Oracle Cloud. That allows us to move faster, see more claims, process more data, improve our turnaround times, deliver NSA better, and it's a client benefit in addition to over time cost and operating leverage improvements. Ultimately, the other thing that's fascinating about that, we can now resell through the Oracle Partner Network. Not only are we using the cloud infrastructure, but Oracle badge sellers can sell our products into their direct-to-employer base, meaning Ben Insights can now be sold through the platform.
Furthermore, we're going to integrate natively our capabilities inside of Oracle Human Capital Management system. That is a massive opportunity for us to get scale and use our products to positive benefit. I mentioned the platform, we're going to create publicly available APIs off of our platform. We have an AI team as well that we've got 67 use cases identified for AI that will drive internal automation and improvement and external value to our clients. The thing you'll hear me talk about, and if you leave here with nothing else, we have horizontal products that we can drive into more vertical markets. That's how we think we get exponential growth, and that's starting to show up. Doug will give specific examples of what some of those are as we go forward. Next slide. We're on a journey. Last year was the foundation.
You've heard our earnings calls, you may be tired of hearing about it, but I'm not going to stop. Clarity, you know, clarity of purpose, alignment of our talent, and focus on what's most important. Discerning the critical few from the many things that we have to do will be important for us. We're doing that. We coined last year the foundation, this year is the turn. We're actually turning faster than we thought we might. Our results, we're happy with our results. The way up and the way forward. We think we're moving into a time of year over year and sustainable diversified growth. We're very happy with that. We feel very good about it. We're making real progress. That's showing up in our financial results over time. Next. This is an example of what I was saying. We have five market segments.
When I joined in March of last year, we basically had one vertical market, which was payers and TPAs. We dabbled with brokers. We did a few deals here and there. Ultimately, that red box was the company. 90% of our revenue would have basically been inside of that. We now have launched six market verticals. Every one of those, broker-employer, provider, government, channel partners like Oracle I just mentioned, we're also in the athenahealth network now, and International, which we recently launched, has a clear charter, quota, white space, green field, go do it. That's off of existing products. We don't have to make new things to serve a broader set of the market. Those red Xs you'll see if you go to the next slide, we've completely changed the nature of our addressable market.
Not only is our, you know, TAM, SAM, SOM, we could throw a bunch of big numbers out there, but the net is our pipeline is growing. You look at our bookings pipeline, it's grown significantly in the last three quarters. That's because we're standing up these new vertical markets. We've got way more at bats now than we had a year ago. That's pretty significant. I'll just say we feel very good about our foundation, our core. We've been able to renew our largest clients for a multi-year period at current yields. That's a good thing for us inside of the core of the business. While we work on additional offerings, our data and decision science business, and other offerings around VDHP where we're putting more sellers. We've increased our sales capacity dramatically as well. We got more sellers out there, more motivated.
As my future role used to say, this bird chirps for seed. Sellers chirp for seed. We're putting more seed out there. You do that, you get more action, you get more pipeline, you get more deals, you get more volume, you get bigger deals that are more encompassing. Next slide. Look, I think I've been very happy with the good news about, you know, leaning in, starting a new gig. You think it's going to be one thing and it's something totally different. That was partially my experience. Crisis also yields consensus in some cases. I haven't had a hard time getting our associates to follow because we had a lot to do in the last year. We have a lot of followership of our longtime associates that are here and believe in what we're doing. We have a big role to play in healthcare.
We've got scale that we can bring. An example of that is our international business where we now can use Oracle Cloud Infrastructure in any part of the world in order to scale our solutions. We have the platform I mentioned, recurring, durable, proven revenue basis with high margin business. Ultimately, we think we can drive new growth and a renewed leadership team. Next slide. This is some of the team. I think, you know, you're looking at the fundamentals, but you're also betting on the people. My job is to create that purpose and vision, but also bring great people to the table that are highly motivated and capable. This is the team we've been able to assemble, a highly diverse group from different backgrounds, major logos and labels, all wildly successful. We've been able to entice them with the journey, the story, long-time working relationships.
I know almost everyone on the page for a long time. They're all coming on this journey and joining in it because they believe that we have something really important to do here. They also see a high potential individually. This is a big part of the team. Recently, too, we've added our Chief Medical Officer who also serves as our Chief Product Officer. That's a unique blend and mix. We've added a CPO, which is Dr. Patel, who worked for me at Cerner and Oracle for 15 years. Brilliant guy who's adding a lot of insights to the company. Fernando Schwartz joined us, who's previously at ADP and Merck, who's now running our AI group. Those were big additions for us in our next piece of transformation. With that, we'll go into a few products and offerings. I want to leave some time for Doug.
I mentioned, you know, what would you say you do around here? To quote one of the great movies of all time, what would you say you do? This is what we do around here. We have a network and an analytics business that, as I said, provides access to care and provides transparency to an opaque market in the out-of-network space. We think that's super important for employers, employees, and patients. Others might disagree with us. We're going to keep doing it because it's good for healthcare. We believe in that. Payment and revenue integrity, I mentioned, it's growing dramatically. We see that as a huge opportunity, particularly with some opportunities in the government. CMS and others are starting to look at this more aggressively. We think they should. Our discussions have been positive.
We think we have the best solution in that space for the opportunities that are ahead. I mentioned the other two businesses that I talked about. We are very excited about our Ben Insights business. We are starting to see more sales coming for that in Plan Optix, which is essentially the ability to take lots of data and information and look at it to manage risk, create not only a data platform, but prescriptive analytics. We have 200 smart cards that sit off of Ben Insights that ultimately tell you not just what's happened, but what to do about it. We can actively look at a health plan performance for an employer while it's happening and also help them drive dramatic improvements in renewal activities over time against what their opportunities might be on the network side. That is a huge, huge thing for us to do. Next slide.
We are going to publish a roadmap. Imagine that. Turns out that's what technology companies do. I asked for one when I got here. It was in the brains, the beautiful mind of a few. We are not going to operate like that. We are going to have a rolling four-quarter roadmap that we publish. We put it out publicly. We take it to our clients proactively. We tell them what's coming and we sell that stuff to them. That is how we are going to operate the company. You see, we've got new products and market entry in blue. We've got new features and enhancements coming and we've got what we would call blue sky initiatives. Those are things we're thinking about. I don't know if we'll do them or not, but we think we should be thinking about them. Factoring in healthcare is one.
If you can control risk, you can control denial management. Why couldn't you provide factoring around it? We think that's a huge opportunity. Our clients are asking us for that. Maybe we'll do that. Maybe we won't. We'll look at it. There are a few others as well that we are going to, our view is we should be a thought leader because we have capable, knowledgeable people who have been doing this for 40 years. We are going to approach the market with a point of view, not just show up and hope for savings on the other side of a solution. Different way of doing business. Next slide. Another example that I showed you, this is by product. You will see all the red exes are new opportunities. The things in blue, we were doing something with two years ago. Everything in the red is open opportunities.
An interesting one would be something like we have a solution called ValuePoint. We hadn't sold that in 10 years. Not one time. We actually did a $4 million deal on that last quarter with a provider that needed a network and they wanted a point solution. We offered that to them. Now they're using that in order to basically pre-qualify and allow people to enter cruise ships. It's an interesting business. They contacted us. We said, "Hey, we could be a good partner for you." One of the things we did is we used that solution. If you look at that, there's now four more opportunities in other markets behind it. It's one example. It wasn't even, it had dust on it.
One of our enterprising new salespeople that was thinking differently, that came from a different industry, said, "That's what I'm going to sell." The point being, all of those things are at bats, existing products. I would put international in the same space. We're not pivoting the company. We're expanding the capability. Advanced code editing works in the UAE because they have the exact same coding standards that we use here in the U.S. We're now seeing claims for Burjeel. That took us less than a quarter to complete. It's on. We're seeing their claims. We think we can drive their denial management down by half. We think we should see a percentage of that, which we will. That's the deal we signed with Burjeel. That's one client over there. I was there last week and I saw five more.
That was not a heavy lift for us to go put ACE coding in. Now we have the opportunity to move to the left, which we're going to, we've signed a licensing agreement with another company where we're going to provide an AI-based solution that sits inside of the RCM. We're now not just serving here on the right side of healthcare. We're moving into the clearinghouse. We're moving into the RCM space with the same set of solutions and some innovation. Totally different open space for us versus where we've been. We view that again as a great opportunity and an expression of the company we're trying to create. Not trying to just sell some stuff. I'm trying to create something that can live and breathe and create, which is what we're doing.
Next, I won't kill a lot of time because I want to give Doug at least some of the time. We've completely restructured how we function as a company. We've implemented product lifecycle management. We have plan, build, deliver, run. We now have a product organization. We've realigned the resources internally. We've added capacity. We've improved our product team dramatically. We've brought talent to that team and resources. We're now focused and structured. This would look like a Cerner and Oracle in terms of how you operate. That's what we're trying to create versus, you know, one solution that sits inside of a few big clients and you hope it comes out the other side. We're going to make products that matter to the market. We're listening. We've got the feedback loop going. I'm very happy with our progression here and the progress we've made.
That's a little bit of the overview of how we're thinking. I'll turn it to Doug to do some technology and some of the financial view for it.
Great. Thanks, Travis. I will go pretty quickly through these because I wanted to make sure we spent some time at the end to focus on our strategic growth initiatives, which is why I think why Travis and I both came to Claritev. If you look at the importance of our technology transformation, Travis announced that we successfully migrated our entire data platform and assets to Oracle Cloud Infrastructure this week. It was slightly ahead of what we communicated externally, but I want to underscore that that is a big deal. When we announced our Vision 2030 transformation, it was predicated on three fundamental tacits. It was our digital transformation, which the Oracle lift and shift was a big component of that.
Business realignment, which you see we have go-to-market channels with actual business units or business segments to support. Then business process optimization, which every large company should do. When you look at transforming the tech to deliver growth, a big milestone was achieved with a lift and shift. By the numbers, when you look at it, we have over 1,000 technology professionals. We moved our headquarters to DC, and we're probably one of the only companies in the DC area that's net hiring people right now. From a scaling perspective, we have over 15 PB of data with 5.5 billion records and claims that we process on an annual basis. We ingest over 500 billion records on a monthly basis. Our data and technology foundry is going to get a whole lot better with Oracle Cloud Infrastructure.
We're very happy with the successful completion of the lift and shift that we completed over the holiday weekend. Next slide. When you think about the benefit of the Oracle partnership, it was really threefold. One, we're getting out of the data center business. There's, you know, half a dozen companies that are going to successfully run compute in cloud for the foreseeable future. We're using their balance sheet to grow our business, which is, I think, a very smart thing. Second, we pointed out on our vision slide, we're actually opening new sales and distribution channels. There is a world when you're an independent software vendor or an ISV, you get a network effect from partnering with other technology companies to go through their distribution channels.
The unit economics are actually quite good because we don't have to hire thousands of badged employees to sell our products in different markets. We announced the partnership with Oracle. We recently announced that we joined the athena Marketplace. We're going to continue to focus on technology partnerships that allow us to bring our horizontal products to new vertical markets with scale and efficiency. Finally, Travis mentioned that we're integrating our products within side technology like Human Capital Management. Why is that important? As a company, my second largest P&L item is my employee health plan cost. What I pay to my insurance carrier behind what I pay in W2 wages, as a CFO, it's my second largest expense item.
The reason why we're super excited about the Oracle partnership and going to market through HCM is we think our Ben Insights product and our data assets and the technology we're developing eventually becomes the use case for human capital management. If you think about most companies have self-insured plans. They take risk and assume risk to provide value through benefits plans to their organizations. Buying benefits and managing your benefits, your second largest P&L item, shouldn't be a once-a-year event. When you look at the Oracle partnership, it's kind of a threefold cost optimization makes a whole lot of sense, go-to-market channel, and product integration. We're very excited about the recent progress we've made in that space. If you want to go to the next slide, just a quick highlight on the performance.
From what we've seen going through development and out into production, we've seen nearly an order of magnitude in performance improvement in our core products and technologies. The main benefactor for that is our clients because we're able to develop and bring products to market that perform much better than in a traditional on-prem or a multi-cloud environment. The most important part about this performance is we're able to deploy our products and technology seamlessly wherever there is an Oracle public data cloud region, which, by the way, there's over 70 going to over 100. Wherever there's a public cloud region or wherever we can actually step into a multi-cloud environment, we can do it with scale and efficiency and basically turning a light switch on it and plugging into new markets.
If you want to go to the next slide, here's an illustration of why Ben Insights is so important and why we're dead focused on it. I mentioned second largest cost for most companies is your health plan cost. If you look at the left, it's the current buying behavior right now. It's a very fragmented space where you're making a purchasing decision once a year. We happen to be in the middle end part of the benefits renewal season. We're seeing anywhere between 10%- 52% increase in premiums for employers. That is a humongous number. For us, we spend about $35 million a year on benefits. Imagine getting an updated quote from your carrier for a $5 million- $15 million increase to your benefits plan.
That is a significant cost increase that as an employer and as an executive, Travis and I have to discuss whether or not we want to manage some of that burden or pass it on to our associates who are already being hammered by the recent inflation environment. You look at the right side of the graph. That's where we view a future where we're partnering not only with brokers, but we're partnering with a technology company like Oracle to bring our solutions directly to employers to allow them to very predictively and prescriptively manage their second largest P&L item on a recurring basis. You want to go to the next slide? We are going to build our own enterprise data platform and marketplace. We are a, make no mistake, we're a technology company.
Most of our business right now is based on a percentage of savings that we capture in the out-of-network space. In the future, we're going to have hundreds, if not thousands, of new clients. We will be selling software as a service, data and models as a service, and innovation as a service. What enables us to do that, step one with the Oracle Cloud Infrastructure, the lift and shift. As we continue to innovate and bring new products to market, there will be new ways for us to monetize our data assets, which we feel very strongly that we have an incredible set of data assets to monetize. We are going to give a formal update on our AI vision and strategy, but here are a few proof points.
Travis mentioned we have five dozen plus internal use cases of how we're going to be using AI to make our stuff run better. Out in the market, we have over three dozen AI models in production right now. Over three dozen AI models in production that we're using or our clients are using to maximize value for affordability, transparency, and quality in what we deliver. The final point is we are not only investing in this area, but we got a pretty humongous tailwind from the big beautiful bill. Most of our development and R&D is onshore. This is an actual area that we've hired a new Chief AI Officer. Fernando's hired a new leadership team. We have over 30 data scientists. We're going to continue to accelerate investment in R&D in this space because we think it unlocks multiple avenues of growth for us in the future.
Briefly onto the financials. This was a print of our Q2. We returned to growth this quarter, a quarter ahead of what we had previously committed to. Business has world-class margins and unlevered free cash flow. We expect that to continue. We also went live with a new ERP, which dramatically improves our ability to deliver insights into the business. We expect to book mid-single-digit ACV growth, which will largely turn into revenue next year. What we're trying to do is provide our investors and our covers the confidence that we have what we view as a company that's turning into a growth company. We're going to continue to go on offense with the proof points, including a return to growth. Quickly, growth by progress and vertical. We signed 10 new logos this quarter. On a quarterly basis, we're going to continue to provide updates by channel.
We have a ton of white space. We have over $200 million of funnel. Over half of that is in our payer and TPA space with existing clients. When we think about our core business, we think that there's a ton of strength in the core business left to be had. In the growth area, specifically in new markets and new channels, we have over $100 million of funnel and pipeline that we're continuing to activate and hopefully will turn on to bookings and revenue. If you want to go to the next slide, we did update our guidance. We expect revenue to grow this year. We had mentioned we're managing towards the higher end of our internal guide range. We're going to continue to accelerate investment and take advantage of the free cash flow position that we found our way into.
If we do a good job, we migrate to the turn. We actually returned a positive levered free cash flow this year as well. This is a little bit of a reveal, but we've had our capital allocation priorities pretty standard for the last, I would say, two or three years. We've updated our priorities. We filed an S-3 shelf in conjunction with our earnings. We're going to continue to prioritize investments in the business and delevering. As we mentioned, our three core strategic principles are delever, diversify, and accelerate growth. Over the next period of time, we're actually going to start looking for strategic tuck-in acquisitions for us to help diversify the business and accelerate growth. With that, I'll turn it back over to Travis to cover our strategic growth initiatives.
Yeah, I'll do two minutes on this in respect to time and happy to take some discussion post the session. Our objectives are going to be clear. One, we're going to grow our core. Not only is it not shrinking, it's growing. We've mentioned we've had, we've announced a positive renewal for a multi-year term in our last two or three earnings calls. We expect to announce more in the coming up quickly. We think we can sell more into that significant white space, which Doug just mentioned. Advancing VDHP, which is our network and RBP solution, there just weren't enough sellers on that bag, period. We're focused on it. We've got more sellers selling into that market. We're seeing positive growth as a result because we have a great product. We're better aligned to the market to deliver value. New market verticals we've talked about dramatically.
I'll talk one here in a minute. Accelerating product innovation. I mean, I don't know. Imagine a world where you actually make something new. That's what we're going to do. We are going to bring new products to the market on top of existing capabilities that we have over time. The next couple of quick ones. You know, when I came, I was like, we are going to go into the provider market. If you go to the next slide, everyone's like, never happened. It has happened. We signed an agreement with the National Rural Health Association where they have 2,000 members, and we are actively selling into those 2,000 members, our Ben Insights products, and our Complete Vue transparency platform. We are now inside of the athenahealth network. Turns out I know some people that used to be at Cerner as part of the Oracle network around the world.
We had 30,000, we had 17,000 clients in 32 countries. I think all of them could use some of what we have. Ultimately, we have closed some specific opportunities here recently with new logos that are actively using our products and services. The next one, I have been asked some questions about it. On the next slide, we signed an agreement with Burjeel Holdings, who was my prior client. I was there last week with Burjeel. We also had meetings with KSA, Ministry of Health, and others who are interested in our solutions. Turns out costs are too high around the globe. It is not just a U.S.-based problem. We think we could use those solutions. Burjeel, for example, has about a 7% denial rate. We think we can cut that in half by using our coding tools and some of our other capabilities.
That results in material revenue potential for them, and we would expect to be compensated for a percentage of that improvement. We believe we can dramatically impact denial management in the MENA market. We are seeing that play out, not just our belief, but actually we are seeing it in the data now that we are seeing claims flows, that we are catching a lot of things that they would not have caught otherwise. Very, very important for them. We are getting a lot of inbound calls from clients in that region. That is a very specific example that we think is we can replicate that model without a lot of additional cost associated. That was the point of the entry into the MENA region, which is a new vertical market. I think our last bit, as I mentioned, our focus is going to be on our current investments roadmap.
We've got some big swings we'll take with government and claims optimizer, we're calling it, which is moving into the RCM. Ultimately, we've got some blue sky opportunities around prior auth factoring, looking at how pricing plays out. There I'd say dynamic pricing could be a thing. Why not? It's done in a lot of other industries. These aren't technical problems. These are market alignment problems. It's all technically possible. The question is, who can market align in a way that makes it more useful and meaningful? We think that there's an opportunity to really change and disrupt how pricing works in its entirety across healthcare. Are we the people to do it? I don't know. It's a blue sky idea, and we're sure going to think about it and have a point of view. That's where we're at.
Again, you take it back, the summary, you know, we think we have sustainable growth potential. We think we can grow much higher than some of what we may have communicated. We believe that if we execute, we'll be a more diverse company with great people that are highly motivated. That's what we're going to do. We hope you come along with us.
With that, that completes our prepared presentation. Appreciate your attendance. Thank you.
Thank you.
Thank you.