Augmedix, Inc. (NASDAQ:AUGX) Q2 2023 Earnings Call Transcript

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Aaron Wukmir: Sure. Yes. Okay. Very helpful. And then just a quick follow-up on. How do you feel about the resources you have to advance your technology and products? And do you feel that you need more resources to compete effectively with maybe Google, Amazon or really any other player in your market?

Manny Krakaris: Well, we’re not really competing with Google. They’re our partner. Amazon’s recent announcement about their partnership with 3M and M Modal is an interesting one. We haven’t really seen anything in the market yet from them, but we don’t take that lightly that announcement. So, we feel like we’re on solid ground here based on our positioning, our product portfolio, the strategy we have in place to compete pretty much against anybody. And the testament up to that, of course, is the traction we’re getting with some of the biggest enterprises in the U.S. So we feel – like I said, we feel pretty good about, where we are in the marketplace today.

Paul Ginocchio: Aaron, it’s Paul Ginocchio. Just add – we did guide to growth, cost growth up Q-on-Q, and we continue to make growth investments and investing for the – that we keep growing nicely. And so, we’re investing to continue to be able to grow at that rate, if not better, and to obviously continue to build out the product set. So, you’re going to continue to see us add cost, but certainly not at the level that gross profit grows at.

Aaron Wukmir: Sure. Sure. Okay. Very helpful. Thanks for taking the questions guys.

Manny Krakaris: Sure. Thank you, Aaron.

Operator: Thank you. Our next question comes from the line of Allen Klee with Maxim Group LLC. Please go ahead.

Allen Klee: Good afternoon. Could you talk a little about the AI Advisory Council that you set up of kind of what you’re thinking about some directions that could go into?

Manny Krakaris: Hi Allen, great question. So when we started using Generative AI large language models last year, well over a year ago, we realized that they weren’t a panacea. There’s all sorts of issues that they – that cropped up from their use in our particular use case. And we thought that we’re going to actually need to get some guidance on how we apply that technology in a responsible and thoughtful manner for our customers. So, we started putting together this AI Council a couple of months ago. It’s pretty much set. We’ll make an announcement about the composition of that Council shortly. But the idea is to collect perspectives from different areas of healthcare and from academia, the technology side to learn about the latest developments, number one.

And number two, figure out what some of the challenges are before they hit us to make sure that we reflect those in how we develop, design our products. So it’s just being – us being proactive in terms of how to properly use this technology. And we feel really good about, the people that we’ve been able to attract to join this council.

Allen Klee: That’s great. Thank you.

Manny Krakaris: You bet.

Operator: Thank you. As there are no further questions, I would now hand the conference over to Manny Krakaris, Chief Executive Officer, for closing comments.

Manny Krakaris: Thank you, operator. Well, I just want to thank everybody for jumping on this call. We’re very pleased with the second quarter’s results, building up – building on a momentum we shared with you over the last several quarters. Our goal remains to become cash flow positive, by the end of next year. In so doing, we will also maintain our leadership position in the industry, catering to the varying needs of big healthcare enterprises, because we recognize that one size fits all is not the right approach. So, thank you very much and we’ll keep you updated on our progress. Thank you.

Operator: Thank you. The conference of Augmedix, Inc. has now concluded. Thank you for your participation. You may now disconnect your lines.

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