Claritev Corporation Morgan Stanley 24th Annual Global Healthcare Conference

Good morning, everyone. John Swoboda, Managing Director, Head of Healthcare Technology at Morgan Stanley. Delighted to have you in the room, and importantly, delighted to have Travis Dalton and Doug Garis up here on stage with Claritev. Thanks, guys, for coming. Yeah.

Thanks, John. Beautiful day in New York, and we appreciate everyone that is participating in the Morgan Stanley Global Healthcare Conference.

Figure we kick things off with the easy question, which is, give us a little bit of a thumbnail sketch of what Claritev is today, and what you have seen over the 2 years now that you have been at the company.

Yeah. Thanks, John. Appreciate it. Hey, everybody. I am Travis, CEO. I took over in March of 2024. It has been an interesting ride. Look, healthcare is in an interesting spot. I have been in it for 27 years now, or so. It seems simple. You have plan design. If you are an employee, you enroll, you get service, claim is produced, and payment is made. Seemingly a simple thing to do. Lots of problems inside of that. So, massive amount of complexity. There is cost issues. There is fraud, waste, and abuse. There is lack of transparency in pricing. There is regulatory complexity that is pretty monstrous. There is a tremendous amount of churn inside of that process. Look, on the macro of things, our view is that, we see costs remaining elevated in healthcare. What a revelation that is. But we think costs will continue to remain elevated.

Employers are going to be under a lot of pressure over time. Utilization likely to be stable, yet shifting venues of care. Care is largely shifting, in many ways, outside of what you'd call the four walls into urgent cares, ASCs, behavioral health, at home, different venues of care. Self-funded plans likely to be steady, with unemployment remaining relatively steady, and regulatory complexity high. What do we do? Painting the picture of that kind of environment, the words I'm going to use are not the words most people use to describe us, but I think it's what we actually do. We provide access to care. We do that with a 1.4 million provider network. Employers and employees are covered by our network in a predictable way with access to care.

We provide protection to employees and consumers of care with our out-of-network solutions, including the work we do with NSA. We provide efficiency in an inefficient situation that I've described through payment revenue integrity with fraud, waste, and abuse solutions and capabilities that we detect those things. Then ultimately, we bring back insightful insights into pricing and other transparency so decisions can get made in a reasonable way. At the core, everything the company does is actually aimed at the endpoint of healthcare, which is the consumer, the employee. It's not always framed that way, or it hasn't been, because the channels you have to sell through in healthcare obscure the endpoint of actually the recipient of the product or service. That's how we view what we do, and every day we get up and think about that endpoint and the needs of that.

Really bringing insights to an opaque market is important in that consumer protection. We work across the continuum. We've got 50 million or so members that use some form of our service. We've got a pretty scaled operation. Fundamentally at the core, that's what we do, affordability, transparency, and access.

Makes sense. For decades, you've been embedded in the fabric of the ecosystem as a core infrastructure layer.

Yep. Given that, could you expand a bit on your Vision 2030?

Certainly, it's been great to see what I think you've described as '26 is the way up, leading into the way forward in '27. Where are you and what's on the near-term roadmap on that vision?

Yeah. As I said, I joined in March of 2024. The company had been four or five years of declining revenues. A lot of people said, "Why did you take this job?" I actually viewed a wildly underutilized set of assets that I thought weren't just to serve one single vertical, which would be the payer market, but could be used across other vertical markets. So horizontal assets across multiple vertical markets. To get to a place where we could really accelerate growth, which we're starting to do, we've had five quarters of growth in a row now, year-over-year, we had to have a plan. The plan was, let's embark on what I would say was a multiyear journey. I like to name things. I think narratives work. I think stories are important. I think employees get behind stories.

We came up with this idea of a Vision 2030, but really 2024 was the foundation year for us, and we called it the foundation. So getting our systems in place, getting better insights into the business and the forecasting tools, recruiting a world-class management team, and restructuring a pile of debt for a multiyear basis to give us a little bit of time. So that was foundational. 2025 we called the turn. We said we're going to turn the company, we're going to start that turn. That was really predicated on building new markets. So 2025 was focused on, we launched an international business, the TPA business, services businesses. We moved into the public sector vertical, and direct-to-provider. So we signed a large deal last year with one of the largest health systems in the U.S. direct. Those weren't things the company was associated with prior.

So opening up those new markets were important for us in, quote-unquote, "the turn." We actually returned to growth last year, which was, I would say, at least 18 months sooner than I thought we might. So I was pleased with the execution. This year we called The Way Up, which is aggressive execution of that plan, which includes a massive technology modernization that we started in 2024. We embarked on a transformation plan in 2024 to modernize all of our technology, create a data mesh where we could use data and information to go forward. So you add all that up, foundation's there. We started to make, quote-unquote, "the turn" and build momentum. This year, we've returned to growth, and we think we're really well-positioned against those tailwinds of healthcare that I just mentioned. I know we're well-positioned relevant to an AI future.

We are using AI today. We have got over 30 agents in use. We are performing really well in NSA in certain areas against our competition, and it is because we have got data and knowledge and people to do that. If you add all that up, again, the reasons to believe are many. We said earlier in the year that we had a stretch goal of $100 million of sales. I think we will achieve that by the end of this quarter. We are selling, and the strategy is showing up and working. Doug can go into some of the financial elements, but returning to free cash flow, and really moving forward in new markets, new logos, et cetera. We are pleased with our progress, but it has been done in a structured way. It is not luck. Yeah.