Core Viewpoint - CareCloud, Inc. has declared monthly cash dividends for its Series A and Series B Preferred Stocks for March and April 2025, reflecting the company's commitment to returning value to shareholders [1][2]. Dividend Details - The monthly dividend for Series A Preferred Stock is $0.18229 per share for both March and April 2025, with an additional payment of $0.04688 per share [2]. - The monthly dividend for Series B Preferred Stock is also $0.18229 per share for both March and April 2025 [2][3]. - The ex-dividend and record dates for both series are March 31, 2025, and April 30, 2025, respectively, with payment dates set for April 15, 2025, and May 15, 2025 [2][4]. Preferred Stock Information - Series A Preferred Stock has a cumulative cash dividend rate of 8.75% per annum based on a $25.00 liquidation preference, equating to $2.1875 per annum per share [2][3]. - Series B Preferred Stock also has a cumulative cash dividend rate of 8.75% per annum based on a $25.00 liquidation preference, equating to $2.1875 per annum per share [3]. - The Series A Preferred Stock was converted into common stock on March 6, 2025, leading to its voluntary delisting from the Nasdaq Global Market [5]. Redemption Options - The company has the option to redeem Series A Preferred Stock at a price of $25.00 per share, plus any accumulated and unpaid dividends, with a notice period of 30 to 60 days [5]. - For Series B Preferred Stock, the redemption prices vary based on the date, starting at $25.50 per share for redemptions on or after February 15, 2025 [6].

Financial Performance - The company reported net revenue of $110.837 million for the year ended December 31, 2024, a decrease of 5.2% from $117.059 million in 2023[261] - Adjusted EBITDA for 2024 was $24.057 million, significantly up from $15.429 million in 2023, representing a year-over-year increase of 55.5%[261] - The company achieved a GAAP net income of $7.851 million in 2024, compared to a net loss of $48.674 million in 2023[261] - Adjusted operating income for 2024 was $11.455 million, up from $5.967 million in 2023, resulting in an adjusted operating margin of 10.3% compared to 5.1% in the previous year[264] - Non-GAAP adjusted net income for 2024 was $10.520 million, compared to $4.801 million in 2023, indicating a substantial improvement in profitability[264] - The company reported a non-GAAP adjusted earnings per share of $0.65 for 2024, an increase from $0.30 in 2023[266] - The company’s GAAP operating margin improved to 8.2% in 2024 from a negative 40.2% in 2023[264] - Operating income for 2024 was $9,121,000, compared to an operating loss of $47,115,000 in 2023[267] - Net income for 2024 was $7,851,000, a significant improvement from a net loss of $48,674,000 in 2023[267] - Net income attributable to common shareholders was a loss of $4,459,000 in 2024, an improvement from a loss of $64,348,000 in 2023[267] Expenses and Cost Management - The company’s offshore operations accounted for approximately 15% of total expenses in 2024, up from 9% in 2023, with personnel-related costs making up about 75% of these expenses[256] - Total operating expenses decreased to $101,716,000 in 2024 from $164,174,000 in 2023, reflecting a reduction of 38%[267] - Direct operating costs represented about 13% of total costs in 2024, compared to 11% in 2023, indicating a slight increase in operational efficiency[282] - General and administrative expenses accounted for approximately 22% of total expenses in 2024, up from 17% in 2023, suggesting increased administrative costs[284] - Selling and marketing expenses decreased by $3.4 million or 35% to $6.2 million in 2024 from $9.7 million in 2023[314] - General and administrative expenses decreased by $5.3 million or 25% to $16.1 million in 2024 from $21.5 million in 2023[315] - Research and development expenses decreased by $955,000 or 20% to $3.8 million in 2024 from $4.7 million in 2023[316] - Total operating expenses for 2024 were $101.7 million, a decrease of $62.5 million or 38% from $164.2 million in 2023[313] Cash Flow and Financial Position - Cash balance increased to $5,145,000 in 2024 from $3,331,000 in 2023[268] - Positive cash flow from operations increased to $20.6 million in 2024 from $15.5 million in 2023, representing a 34% increase[331] - Cash used in investing activities decreased to $7.4 million in 2024 from $11.6 million in 2023, a reduction of $4.2 million[336] - Cash used in financing activities was $11.3 million in 2024, down from $13.3 million in 2023, including the full repayment of a $10 million credit line[337] - The company recorded a net increase in cash of $1.8 million in 2024, compared to a decrease of $8.9 million in 2023, marking a turnaround of $10.8 million[331] Client and Revenue Metrics - The company served approximately 40,000 providers across about 2,600 practices as of December 31, 2024, maintaining a stable client base[275] - Customer renewal rates improved to 95% in 2024 from 91% in 2023, reflecting strong client retention[276] - Revenue from technology-enabled business solutions accounted for approximately 67% of total revenues in 2024, up from 65% in 2023[277] - Revenue from technology-enabled business solutions was $73.7 million in 2024, down from $76.6 million in 2023[310] - Professional services revenue decreased by $4.8 million in 2024 compared to 2023, primarily due to the winding down of services for two large accounts[311] Goodwill and Impairment - Goodwill impairment charges in 2023 amounted to $42,000,000, reflecting a significant write-down related to the Healthcare IT reporting unit[287] - Goodwill impairment of approximately $2 million was recorded in October 2023, with an additional impairment of approximately $40 million recorded in December 2023[305] - Goodwill impairment charge of $42 million was recorded in 2023, resulting in the reversal of the entire deferred tax liability at December 31, 2023[325] Shareholder Information - The total fully diluted shares increased to 16,498,736 in 2024 from 16,614,000 in 2023[266] - The weighted average common shares outstanding increased to 16,146,975 in 2024 from 15,669,472 in 2023[267] - Shareholders' equity increased to $49,774,000 in 2024 from $41,717,000 in 2023[268] Tax and Interest - The income tax provision for 2024 was $160,000, contrasting with a tax benefit of $364,000 in 2023[323] - Interest income decreased by $66,000 or 43% to $88,000 for the year ended December 31, 2024, compared to $154,000 in 2023[320] - Interest expense decreased by $294,000 or 25% to $900,000 for the year ended December 31, 2024, from $1.2 million in 2023[321] - Other expense - net improved to $298,000 in 2024 from $883,000 in 2023, primarily due to a foreign exchange gain of $130,000 compared to a loss of $790,000 in 2023[322] Future Outlook - The company plans to continue leveraging its offshore operations to maintain competitive cost advantages in the healthcare IT sector[256] - The company expects to achieve further economies of scale as it grows, potentially reducing direct operating costs as a percentage of revenue[282] - The company has a total federal NOL carry forward of approximately $265 million, with $187 million expiring between 2031 and 2038[328]

Financial Data and Key Metrics Changes - Free cash flow reached record levels of $13.2 million, a year-over-year increase of nearly 250% [11] - Adjusted EBITDA rose to $24.1 million, a 56% increase year-over-year [11] - Net income surged to an all-time high of $7.9 million, compared to a net loss of $48.7 million in 2023 [39][43] - Revenue for Q4 2024 was $28.2 million, slightly down from $28.4 million in Q4 2023 [40] - GAAP net income for Q4 2024 was $3.3 million, compared to a net loss of $43.7 million in the same period last year [39] Business Line Data and Key Metrics Changes - Recurring technology-enabled business solution revenues were $24.8 million, essentially flat with Q4 2023 [40] - Non-recurring professional services revenues from medSR declined by approximately $400,000 [40] Market Data and Key Metrics Changes - The company anticipates revenue growth in the range of $111 million to $114 million for 2025, indicating a shift towards positive growth after previous declines [17] - Adjusted EBITDA for 2025 is projected to be between $26 million and $28 million [17] Company Strategy and Development Direction - The conversion of Series A preferred shares into common stock was a significant strategic move, aimed at optimizing the capital structure and enhancing shareholder value [13][15] - The company is focused on leveraging AI-driven solutions to improve provider efficiency and reduce administrative burdens [19] - CareCloud plans to expand specialty-based EHR solutions, targeting distinct needs of various medical specialties [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive earnings per share for the first time since going public in 2014, reflecting the strength of the business transformation [11][18] - The company remains focused on strategic growth, efficiency, and expansion, with a commitment to innovation [17][35] Other Important Information - The company has fully repaid its Silicon Valley Bank line of credit and is now bank debt-free [38] - The removal of dividend obligations tied to preferred shares will free up additional resources for reinvestment into key growth areas [16] Q&A Session Summary Question: Revenue and EBITDA guidance for the year - Management indicated that they expect revenue growth in 2025, with a range of $111 million to $114 million, and adjusted EBITDA between $26 million and $28 million, reflecting a disciplined approach to cost management and innovation [54][55] Question: Insights on M&A pipeline and valuations - Management confirmed a re-entry into the acquisition market, focusing on smaller and mid-sized medical billing companies, with a disciplined approach to ensure any deals pursued are accretive and align with long-term objectives [60][64] Question: User base expansion and offerings - The user base is diversified, with a significant portion in primary care, and management sees opportunities to upsell various solutions to existing clients [70][72] Question: 2025 guidance and customer attrition - The 2025 revenue guidance does not factor in any material acquisitions, focusing instead on organic growth and small tuck-in opportunities [77][78] Question: Preferred stocks and dividends - Management clarified the Series A conversion details and ongoing obligations for the remaining preferred shares, indicating that dividends will continue to be paid on the outstanding shares [96][98]

Financial Data and Key Metrics Changes - In 2024, the company achieved record-breaking profitability with adjusted EBITDA rising to $24.1 million, a 56% increase year over year, and net income reaching an all-time high of $7.9 million despite a modest decline in revenue [8][26] - Free cash flow reached $13.2 million, a year-over-year increase of nearly 250%, reinforcing the company's ability to drive sustained profitability [8][27] - Revenue for the fourth quarter of 2024 was $28.2 million, compared to $28.4 million in the same period of 2023, indicating a slight decline [25] Business Line Data and Key Metrics Changes - Recurring technology-enabled business solution revenues during the fourth quarter of 2024 were $24.8 million, essentially flat compared to the fourth quarter of 2023, while non-recurring professional services revenues from Medisar declined by approximately $400,000 [25] - The company anticipates revenue growth in the range of $111 million to $114 million for 2025, supported by market demand for integrated AI-driven solutions [12] Market Data and Key Metrics Changes - The specialty EHR market represents a multibillion-dollar opportunity driven by the need for tailored solutions that enhance clinical efficiency, regulatory compliance, and patient care [21] - The company is expanding its specialty-based EHR solutions and launching new AI-driven products, addressing distinct needs across various medical specialties [20][22] Company Strategy and Development Direction - The company is focused on strategic growth, efficiency, and expansion, leveraging AI-driven automation and innovations to enhance provider workflows and optimize patient outcomes [12][22] - The conversion of Series A preferred shares into common stock was a significant strategic move, aimed at simplifying the capital structure and enhancing shareholder value [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive earnings per share for the first time since going public in 2014, reflecting the strength of the business transformation and operational discipline [9][12] - The company remains committed to financial strength, innovation, and sustainable growth, reinforcing its position as a leader in AI-driven healthcare solutions [28] Other Important Information - The company has fully repaid its Silicon Valley Bank line of credit and is now bank debt-free, which has significantly improved its financial position [24][27] - The company has not completed an acquisition in almost four years, but a recent small acquisition marks its reentry into the acquisition market [15] Q&A Session Summary Question: Revenue and EBITDA guidance for the year - Management indicated that they expect revenue in the range of $111 million to $114 million, reflecting a strategic shift back into growth while maintaining responsible spending [33][35] Question: Insights on M&A pipeline and valuations - Management noted a gradual return to lower multiples seen in the pre-COVID era, with a focus on pursuing value-driven acquisitions that align with long-term objectives [39][40] Question: User base expansion and offerings - The user base is diversified, with a significant portion in primary care, and the company aims to upsell various solutions to existing clients [46][47] Question: 2025 guidance and customer attrition - The 2025 guidance does not factor in any material acquisitions, focusing instead on organic growth and small tuck-in opportunities [48][49] Question: Preferred stocks and dividends - Management explained the conversion of Series A preferred shares and the ongoing obligations related to Series B preferred shares, with expected annualized dividends of about $5.5 million [64][66]

Q4 2024 RESULTS Nasdaq Global Market: CCLD, CCLDP, CCLDO March 13, 2025 A leading provider of technology-enabled services and solutions that redefine the healthcare revenue cycle © CareCloud, Inc. 2025 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 term ...

Financial Performance - GAAP net income for full year 2024 was $7.9 million, a significant turnaround from a net loss of $48.7 million in 2023[5] - Adjusted EBITDA for full year 2024 increased by 56% to $24.1 million, up from $15.4 million in 2023[5] - Free cash flow for full year 2024 reached $13.2 million, representing a 244% increase from $3.8 million in 2023[5] - Fourth quarter 2024 GAAP net income was $3.3 million, compared to a net loss of $43.7 million in Q4 2023[8] - Adjusted EBITDA for Q4 2024 was $7.1 million, or 25% of revenue, up from $4.1 million in the same period last year[9] - Operating income for the year ended December 31, 2024, was $9,121, compared to a loss of $47,115 in 2023, indicating a significant turnaround[31] - Net income for the year ended December 31, 2024, was $7,851, compared to a net loss of $48,674 in 2023, reflecting improved financial performance[31] - GAAP net income for Q4 2024 was $3,296,000, a significant improvement compared to a loss of $43,692,000 in Q4 2023; for the year, net income was $7,851,000 compared to a loss of $48,674,000 in 2023[41] - Non-GAAP adjusted operating income for Q4 2024 was $3,940,000, up from $1,191,000 in Q4 2023, with a non-GAAP adjusted operating margin of 14.0% compared to 4.2% in the same quarter last year[39] - Non-GAAP adjusted net income for Q4 2024 was $3,871,000, compared to $835,000 in Q4 2023, resulting in a non-GAAP adjusted net income per share of $0.24 versus $0.05[41] Revenue and Cash Flow - Revenue for full year 2024 was $110.8 million, a decrease from $117.1 million in 2023[6] - Total net revenue for the year ended December 31, 2024, was $110,837, a decrease of 5.2% from $117,059 in 2023[31] - Net revenue for Q4 2024 was $28,239,000, a slight decrease from $28,416,000 in Q4 2023, while total revenue for the year decreased from $117,059,000 in 2023 to $110,837,000 in 2024[39] - Free cash flow for Q4 2024 was $2,967,000, an increase from $1,449,000 in Q4 2023, while annual free cash flow rose to $13,236,000 from $3,848,000[45] - Cash at the end of the year increased to $5,145 from $3,331, marking a 54.4% increase[33] - Net cash provided by operating activities for Q4 2024 was $5,229,000, up from $3,740,000 in Q4 2023[45] Cost Management and Liabilities - Total operating expenses for the year decreased to $101,716 in 2024 from $164,174 in 2023, a reduction of 38.0%[31] - Total liabilities decreased significantly to $21,840 in 2024 from $36,109 in 2023, a reduction of 39.4%[29] - The company’s accumulated deficit improved to $(66,630) in 2024 from $(74,481) in 2023, showing a reduction of 10.4%[29] - The conversion of 3.5 million Series A Preferred Stock into common stock will reduce annual dividend burden by $7.7 million[5] - The company reported a preferred stock dividend of $12,310 for the year ended December 31, 2024, down from $15,674 in 2023[31] - The company incurred goodwill impairment charges of $42,000,000 in Q4 2023, which did not recur in Q4 2024[39] Future Projections - The company expects 2025 revenue to be between $111 million and $114 million, based on growth from existing clients and new acquisitions[15] - Adjusted EBITDA for 2025 is projected to be between $26 million and $28 million, reflecting cost reduction efforts[16] Shareholder Information - The total number of end-of-period shares increased to 16,256,236 in Q4 2024 from 15,880,092 in Q4 2023[41] Financial Metrics - Free cash flow is considered an important financial measure for evaluating the Company's performance[61] - Free cash flow does not account for payments required for debt service and other contractual obligations[61] - The Company views free cash flow as supplemental information to its condensed consolidated statements of cash flows[61]

Core Viewpoint - CareCloud, Inc. has achieved a significant turnaround in its financial performance for the year ended December 31, 2024, returning to GAAP profitability, generating record cash flow, resuming dividends, and strengthening its balance sheet [1][4][9] Financial Performance - Full year 2024 revenue was $110.8 million, down from $117.1 million in 2023 [4][6] - GAAP net income for 2024 was $7.9 million, a recovery from a net loss of $48.7 million in 2023 [4][6] - Adjusted net income for 2024 was $10.5 million, or $0.65 per share [4][8] - Adjusted EBITDA for 2024 was $24.1 million, an increase of 56% from $15.4 million in 2023 [6][9] Fourth Quarter Performance - Fourth quarter 2024 revenue was $28.2 million, slightly down from $28.4 million in Q4 2023 [5][6] - GAAP net income for Q4 2024 was $3.3 million, compared to a net loss of $43.7 million in Q4 2023 [6][7] - Adjusted EBITDA for Q4 2024 was $7.1 million, a 73% increase from $4.1 million in the same period last year [6][7] Operational Improvements - The company has successfully transformed its cost structure, enhancing operational efficiency through AI-driven innovations [2][4] - Free cash flow for 2024 was $13.2 million, a substantial increase of 244% from $3.8 million in 2023 [6][9] Shareholder Actions - In January 2025, CareCloud increased the number of authorized common shares from 35 million to 85 million and declared two months of Preferred Stock dividends [3] - The conversion of 3.5 million shares of Series A Preferred Stock into common stock resulted in the issuance of 26 million additional common shares, reducing the annual dividend burden by $7.7 million [3][6] 2025 Guidance - For the fiscal year ending December 31, 2025, CareCloud expects revenue between $111 million and $114 million [12][13] - Adjusted EBITDA is anticipated to be between $26 million and $28 million, with net income per share projected at $0.10 to $0.13 [12][13]

Core Viewpoint - CareCloud, Inc. intends to voluntarily delist its 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock from the Nasdaq Global Market due to non-compliance with listing requirements following a mandatory conversion of shares [1] Group 1: Delisting Announcement - The company will notify Nasdaq of its intent to delist the Series A Preferred Stock and expects to file a Form 25 with the SEC around March 21, 2025 [1] - The delisting is expected to be effective on or about March 31, 2025 [1] - The mandatory conversion involved converting each share of Series A Preferred Stock not held by a "material shareholder" into 7.3358 shares of common stock [1] Group 2: Company Overview - CareCloud specializes in healthcare information technology and generative AI solutions for medical practices and health systems [2] - The company offers a suite of technology-enabled solutions aimed at improving financial and operational performance, streamlining clinical workflows, and enhancing patient experience [2] - Over 40,000 providers rely on CareCloud for improving patient care while reducing administrative burdens and operating costs [2]

Core Viewpoint - CareCloud, Inc. has announced the mandatory conversion of its 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock into Common Stock, which is expected to eliminate approximately $7 million in annual dividend obligations and improve the company's capital structure [1][2]. Group 1: Conversion Details - The conversion will be effective at 4:01 p.m. Eastern Time on March 6, 2025, with each share of Preferred Stock converting into 7.3358 shares of Common Stock, including all accumulated and unpaid dividends [2][3]. - Shareholders holding at least 100,000 shares of Preferred Stock will retain the right to object to the conversion if their shares are held by the company's transfer agent [3]. Group 2: Financial Implications - The conversion is anticipated to free up capital for reinvestment in growth initiatives, enhancing the company's ability to create shareholder value [2]. - The elimination of dividend obligations is expected to provide greater flexibility in managing the company's financial resources [2]. Group 3: Company Overview - CareCloud specializes in healthcare information technology and generative AI solutions, serving over 40,000 providers to improve patient care while reducing administrative burdens and operating costs [5].

Core Viewpoint - CareCloud, Inc. is resuming its acquisition strategy to enhance its position in the healthcare technology and revenue cycle management sectors, starting with the acquisition of Mesa, LLC, which was finalized on February 28, 2025 [2][3]. Group 1: Acquisition Strategy - The acquisition of Mesa, LLC marks CareCloud's first step in a renewed aggressive expansion strategy, aiming to reinforce its leadership in the healthcare billing industry [2][3]. - CareCloud has a history of successful acquisitions, having completed over 20 deals between 2012 and 2022, achieving a compound annual growth rate (CAGR) of over 30% during that period [3]. - The company is shifting back into high gear for acquisitions after a pause since Q2 2021, with MesaBilling being the starting point for this new phase [3]. Group 2: Market Context - The renewed focus on acquisitions aligns with a growing demand from medical practices for streamlined, technology-enabled financial management solutions [4]. - CareCloud plans to leverage its proprietary technology, including AI-powered revenue cycle management and automation tools, to expand its platform and serve a broader network of healthcare providers [4]. Group 3: Company Overview - CareCloud provides a suite of AI and technology-enabled solutions aimed at improving financial and operational performance, streamlining clinical workflows, and enhancing patient experiences [5]. - The company serves over 40,000 providers, helping them reduce administrative burdens and operating costs while improving patient care [5].