$MTBC #SeeThruEquity Issues Update

NEW YORK, NY / November 30, 2016 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has issued an update on Medical Transcription Billing, Corp. (NASDAQ CM: MTBC).

The report is available here: MTBC November Update Note.

Based in Somerset, NJ Medical Transcription Billing, Corp. (NASDAQ CM: MTBC) is a healthcare information technology company that provides a fully integrated suite of web-based solutions and related business services to hospital-based and private healthcare providers. MTBC became a public company in July 2014, after several years of strong growth through both acquisitions and organic means as a private healthcare technology company. Through its flagship software-as-a-service (SAAS) platform Practice Pro, MTBC “brings big practice solutions” to over 750 small and medium sized medical practices, helping more than 1,700 providers grow and track sales, streamline operations, and use data to facilitate better business and clinical decision making. MTBC recently reported 3Q16 results, with highlights as follows:

• Revenues came in at $5.3mn and were $15.7mn for the first nine months of the year.
• Management-defined adjusted EBITDA was positive $0.13mn and $0.20mn for the quarter and first nine months of the year, respectively.
• GAAP EPS was a loss of $0.17 per share.

MTBC announces 3Q16 results, expands on MediGain deal

On November 11, 2016, MTBC held a conference call with investors and stakeholders to discuss 3Q16 results and the recent acquisition of MediGain LLC, a Texas-based medical billing specialist, which MTBC management expects to be its largest acquisition. Management clarified its expectations for MediGain on the call. MediGain is expected to add nearly 200 new customers, and is expected to be accretive to adjusted EBITDA in 2017E. MTBC also indicated that MediGain will add to its sales resources, since there were no US sales and marketing employees prior to the acquisition. MediGain also adds low cost operations based in Asia. Management also predicted $10mn in revenues from MediGain in 2017, at the high end of its prior estimate of $8mn- $10mn.

Revenue rises, MTBC generates adjusted EBITDA

During 3Q16, MTBC revenues rose sequentially to $5.3mn in 3Q16 from $5.1mn in 2Q16. Revenues did fall on a YoY basis, as the company continues to emerge from the impact of customer churn at the end of 2015. For the first nine months of 2016, MTBC recorded revenues of $15.7mn, versus $17.7mn in the comparable year-ago period. Notably, MTBC generated management-defined, adjusted EBITDA for the fourth consecutive quarter, with adjusted EBITDA coming in at $0.13mn in the quarter and $0.2mn for the first nine months of the year.

Updating estimates; maintaining price target

We are updating our 2016 estimates following recent results. Although 4Q16 is seasonally strong for MTBC, and management guided for record revenues during the quarter, the company’s last public guidance for 2016 had assumed the closing of a large acquisition earlier in the year. Consequently, we now expect 2016 revenues of $23.7mn and GAAP EPS of ($0.83). We are maintaining 2017E revenue estimate of $35mn. Our price target remains $3.85.

About MTBC

MTBC is a healthcare information technology company that provides a fully integrated suite of proprietary web-based solutions, together with related business services, to healthcare providers practicing in ambulatory care settings. Our integrated Software-as-a-Service (or SaaS) platform helps our customers increase revenues, streamline workflows and make better business and clinical decisions, while reducing administrative burdens and operating costs. MTBC’s common stock trades on the NASDAQ Capital Market under the ticker symbol “MTBC,” and its Series A Preferred Stock trades on the NASDAQ Capital Market under the ticker symbol “MTBCP.”

www.mtbc.com

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry’s most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.

For more information visit www.seethruequity.com.