MTBC : Corporate Presentation

NASDAQ Global Market: MTBC, MTBCP

February 2020

Safe Harbor Statements

This presentation contains forward-looking statements within the meaning of the federal securities laws. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as "anticipate", "believe", "continue", "could", "estimate", "expect", "goals", "intend", "likely", "may", "plan", "potential", "predict", "project", "will" or the negative of these terms or other similar terms and phrases.

Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward- looking statements ultimately prove to be correct. Forward-looking statements in this presentation include, without limitation, statements reflecting management's expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, increased sales and marketing expenses, and the expected results from the integration of our acquisitions.

Forward-looking statements are only current predictions and are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from those anticipated by such statements. These factors include our ability to:

• Manage our growth, including acquiring, partnering with, and effectively integrating CareCloud and other acquired businesses into our infrastructure;
• Retain our clients and revenue levels, including effectively migrating new clients and maintaining or growing the revenue levels of our new and existing clients;
• Maintain operations in Pakistan and Sri Lanka in a manner that continues to enable us to offer competitively priced products and services;
• Keep pace with a rapidly changing healthcare industry;
• Consistently achieve and maintain compliance with a myriad of federal, state, foreign, local, payor and industry requirements, regulations, rules, laws and contracts;
• Maintain and protect the privacy of confidential and protected Company, client and patient information;
• Protect and enforce intellectual property rights;
• Attract and retain key officers and employees, and the continued involvement of Mahmud Haq as executive chairman, all of which are critical to our ongoing operations, growing our business and integrating of our newly acquired businesses;
• Comply with covenants contained in our credit agreement with our senior secured lender, Silicon Valley Bank and other future debt facilities;
• Pay our monthly preferred dividends to the holders of our Series A Preferred Stock;
• Compete with other companies developing products and selling services competitive with ours, and who may have greater resources and name recognition than we have; and;
• Keep and increase market acceptance of our products and services.

Although we believe that the expectations reflected in the forward-looking statements contained in this presentation are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements.

In our earnings releases, prepared remarks, conference calls, slide presentations, and webcasts, we may use or discuss non-GAAP financial measures, as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in the Appendix to this presentation. Our earnings press releases containing such non-GAAP reconciliations can be found in the Investor Relations section of our web site at ir.mtbc.com.

The statements in this presentation are made as of the date of this presentation, and the Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

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MTBC Overview

MTBC is a healthcare IT leader delivering the industry's most comprehensive suite of cloud-based solutions and business services.

70+	10M+	15,000+	$7B+	2,800+
Specialties	Patient Lives	Providers	A/R Under Management	Employees

			#1 Cloud-Based EHR
			#1 Practice Management Software
Practice Management	Electronic Health Records	Revenue Cycle Management	Patient Experience Management
Telemedicine	Group Purchasing Organization	Business Intelligence	App Ecosystem

* Details reflect MTBC family of companies as of 2/28/2020, including CareCloud. For additional details, please see appendix.	2

Revenue Growth: 2013 - 2019 plus 2020 guidance

($ in millions)

							$100‐102	Range
								Guidance
				$31.8		$64.4	2020:-2019 Growth58%‐	Actual
					$50.5
	$18.3	$23.1	$24.5				55%
$10.5
2013	2014	2015	2016	2017	2018	2019	2020
	IPO						Guidance

Investors are cautioned that such statements involve risks and uncertainties that could cause actual results to differ materially from anticipated results

3

Adjusted EBITDA: 2013 - 2019 plus 2020 guidance

($ in millions)

$8.1

$4.8

$2.3

$1.1

		($0.7)	($0.6)
2013	($1.7)	2015	2016	2017	2018	2019
2014
	IPO

$12‐13

			Range
2020:-2019 Growth60%‐
		Guidance
48%			Actual

2020

Guidance

Investors are cautioned that such statements involve risks and uncertainties that could cause	See reconciliations of non‐GAAP results in the Appendix	4
actual results to differ materially from anticipated results

Experienced Leadership Team

Mahmud Haq

Founder and Executive Chairman

• Former CEO of Compass International Services Corporation (Nasdaq: CMPS). Completed 14 acquisitions in 18 months, growing revenue to ~$180 million rate. Acquired by NCO Group, Inc.
• Various senior positions at American Express Company (NYSE: AXP) for 12 years including VP of Global Risk Mgmt.
• B.S. in Aviation Management, Bridgewater State College. M.B.A. in Finance, Clark University

1. Hadi Chaudhry

President and Director

• Joined MTBC in 2002. Formerly served as Manager of IT, General Manager, Chief Information Officer, and VP of Global Operations
• Extensive healthcare IT experience
• Various roles in the banking and IT sector prior to MTBC
• BS in Mathematics and Statistics and holds numerous information technology certifications

Stephen Snyder

Chief Executive Officer and Director

• Joined MTBC in 2005. Formerly served as VP / General Counsel, COO and President
• Attorney for 17 years with M&A and healthcare law experience
• Writings on healthcare industry, law and policy have been published by American Bar Association
• J.D. Rutgers School of Law - senior editor of law journal

Bill Korn

Chief Financial Officer

• Joined MTBC in 2013
• CFO of Antenna Software, Inc. from 2002 - 2012. Completed 5 acquisitions and grew the business at a CAGR of 87%
• Former executive at IBM (NYSE: IBM) for 10 years.
• A.B. in Economics magna cum laude, Harvard College. M.B.A. Harvard Business School

Howard Clark, Jr.

Vice Chairman

• Former CFO of American Express Company (NYSE: AXP)
• Former CEO, Chairman and Vice Chairman of Shearson Lehman and Vice Chairman of Barclays Capital

Anne Busquet

Director

• Board member of Pitney Bowes Inc. (NYSE: PBI), Intercontinental Hotels Group plc (LSE: IHG) and Provista Diagnostics, Inc.
• Former President of American Express Interactive

John Daly	Cameron Munter
Director	Director
• Former EVP and	•	Sr. Advisor, Agora
Director of E.F. Hutton		Strategy Group AG
& Company		(Berlin)
• Former Head of Private	• Former President of the
Client Division and Int'l	•	East-West Institute
Equity Capital Markets	Former U.S. Ambassador
at Salomon Brothers		to Pakistan
		5

Healthcare Providers Facing Unprecedented Challenges

Transition to

Consumerism &

More Complex

Patient Obligation

Payment Models

Administrative &	Consolidation &
Regulatory Burden	Rollups

6

A Uniquely Comprehensive Value Proposition

Electronic

Health Records

	Revenue Cycle
Practice Management	Management

Patient Experience

Management

Analytics

Mobile Apps	Telehealth	Full Billing
Services

MIPS &

MACRA

Prior Authorization &

Referral Management

Credentialing

Coding Services

Group

Purchasing

Organization

We believe that we have the most comprehensive software & services offering in the market

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A Multi-faceted Growth Strategy

Organic Growth	Partnerships	Acquisitions
Increased spending on	Turn smaller competitors into	Acquire RCM companies and
marketing & sales, historically	customers	complementary businesses
<4% of revenue
	Leverage MTBC's technology	Leverage efficiency and lower
Focus on cross-selling and	and/or offshore team	costs to grow adjusted EBITDA
expanding share-of-wallet

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Acquisitions: CareCloud

A Transformative Market Opportunity

• Acquired January 8, 2020
• Proprietary, integrated, highly rated, cloud-based SaaS platform
• ~750 practices, ~4,500 providers
• Continuing annualized recurring revenues > $30 M
• Purchase price: ~$36 M plus $3 M potential performance earn-out and warrants
• Aggressive R&D spending historically with resulting net losses*
• Accretive to earnings for 2020

Comprehensive Software Solutions for Physician Practices

Central	Charts
PM Software	EHR Software
Breeze	Concierge
PXM Software	RCM Software & Services

*Estimated net loss of $26.3 million during 2018, the most recent year with audited financial results

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Telehealth

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MTBC's Competitive Advantages

Technology Platform

Global Team

ISO 27001 certified / HIPAA compliant

Proven Integrator/Operator

• U.S.-basedteam with deep healthcare industry knowledge and expertise
• Significantly lower labor costs via over 2,000 English- speaking, college educated employees in Pakistan and Sri Lanka
• Approximately 300 dedicated technology professionals

• Scalable model with recurring revenue
• Completed 15 acquisitions since July 2014 IPO
• Track record of operating cost reductions and platform enhancements
• Positive adjusted EBITDA every quarter since Q2 2017

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2019 Results

Revenue
	+27%
	$64.4
$50.5
2018	2019

Net loss

+$1.3 M
(4%)	(1%)
margin	margin
	($0.9)
($2.1)
2018	2019

Adjusted net income

	+94%
	$6.7
$3.5
7%	10%
margin	margin
2018	2019

Adjusted EBITDA

+69%
	$8.1
$4.8
9%	13%
margin	margin
2018	2019

($ in millions. Percent change reflects 2018 to 2019)

See reconciliations of non‐GAAP results in the Appendix

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Capitalization and Balance Sheet after acquiring CareCloud

$ Millions

$90

$80

$70

$60

$50

$40 $30

$20

$10

‐

Cash

AR

PP&E

Right of use asset

Goodwill & intangibles Other assets

A/P

Accruals

Lease liability

Div. payable and other liabilities ST debt

LT debt

Equity

Highlights

• Acquisition paid in cash plus Series A Preferred Stock, without tapping Silicon Valley Bank line of credit or issuing additional common equity

Common Stock (Nasdaq: MTBC)

• 12,335,930 shares outstanding
• Current price: $6.64 (as of February 25, 2020)
• Market cap: $81.9 million
• Insiders own approx. 49% of common stock

Series A Preferred Stock (Nasdaq: MTBCP)

• 3,326,151 shares outstanding after acquisition
• Current price: $27.61 (as of February 25, 2020)
• Equity value: $91.8 million
• Dividend: 11% of par value ($25.00), paid monthly
• Non-convertible
• Optionally redeemable at Company's choice after Nov. 2020

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Why MTBC

A proven healthcare IT operator focused on creating shareholder value

through further revenue growth and increased operating cash flow

• Proprietary healthcare IT platform streamlines workflow, increases revenue and decreases expenses for customers
• Successful consolidator in highly fragmented industry
• Scalable operating cost structure
• Highly respected cloud-based platform
• 2020 revenue guidance: $100-102million
• 2020 adjusted EBITDA guidance: $12-13million

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Thank You

Corporate Website

www.mtbc.com

Investor Relations page

ir.mtbc.com

Investor Inquiries	Bill Korn, CFO
	[e-mail]
	Matt Kreps, Darrow IR
	[e-mail]
	[phone]

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Appendix

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Proven & Repeatable Acquisition Integration Expertise

October 2016

July 2018

April 2019

•

Acquisitions Expenses Reduction

100%
				•
80%
60%
				MediGain
40%				Orion ‐ RCM
20%				ETM
0%				•
Q0	Q1	Q2	Q3
(Prior to acquisition)

For Orion, the practice management segment and group purchasing organization were profitable before acquisition, so expense reductions focused on RCM business only

Reduction of expenses by over 60% in the first 3 quarters after closing

Standard procedure:

• Replace offshore subcontractors with MTBC's global team
• Use MTBC's technology to streamline workflows
• Reduce administrative burden of U.S. team so they can focus on client experience

Acquisitions typically reduce adjusted EBITDA for 1-2 quarters, and are accretive by the 3rd or 4th quarter

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Non-GAAP Financial Measures Reconciliation and Definitions

($000s)	Adjusted EBITDA		2014		2015		2016			2017			2018			2019				Q4 2019
Net (loss) income	$	(4,509)	$	(4,688)	$	(8,797)	$	(5,565)	$	(2,138)	$	(872)		$	332
Provision (benefit) for income taxes		176			138		197		68		(157)		193			91
Net interest expense		157			262		646		1,307		250			121			39
Foreign exchange / other expense		135			(170)			53		(249)		(435)		827			419
Stock‐based compensation expense		259			629		1,928		1,487		2,464			3,215			891
Depreciation and amortization		2,791		4,599		5,108		4,300		2,854			3,006			598
Transaction, integration, restructuring & impairment cost		1,076			341		976		791		1,891			1,955			416
Change in contingent consideration		(1,811)		(1,786)		(716)		152		73			(344)			‐
Adjusted EBITDA		$	(1,726)	$		(675)	$	(605)	$	2,291	$	4,802		$	8,101		$	2,786
	($000s)	Adjusted Net Income			2014		2015		2016			2017		2018				2019		Q4 2019
		Net (loss) income		$		(4,509)	$		(4,688)	$		(8,797)	$		(5,565)	$		(2,138)		$		(872)	$	332
		Foreign exchange / other expense				135			(170)			53			(249)			(435)				827		419
		Stock‐based compensation expense				259			629			1,928			1,487			2,464				3,215		891
		Amortization of purchased intangible assets				2,503			4,119			4,397			3,393			1,828				1,877		328
		Transaction, integration, restructuring & impairment cost		1,076			341			976			791			1,891				1,955		416
		Change in contingent consideration				(1,811)			(1,786)			(716)			152			73				(344)		‐
		Income tax expense (benefit) related to goodwill				‐			172			175			27			(208)				80		50
		Non‐GAAP Adjusted Net Income		$		(2,347)	$		(1,383)	$		(1,984)	$		36	$		3,475		$		6,738	$	2,434

Definitions:

• Number of providers includes all providers using any offerings
• Patient lives are patients serviced by RCM and SaaS clients during 2019
• Annualized AR under management is the annualized charges for RCM and SaaS clients as of February 2020

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