Question · Q2 2025
Charles Reid of TD Cowen inquired about the drivers of the Q2 sequential revenue decline, specifically asking if customer churn was a factor beyond the known health plan scope reduction and slower new client ramps. He also requested details on the discontinued services.
Answer
CEO Erez Raphael clarified that the revenue decline was not due to ARR churn, which maintains an 85% retention rate, but rather a non-recurring Q1 revenue item and the previously disclosed loss of a large health plan contract. CCO Steven Nelson added that the discontinued service was a Medicaid maternity program which the client chose to insource.