UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-41992 TRUBRIDGE, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 74-3032373 (State or Other Jurisdiction of Incorporatio ...

Exhibit 99.1 TRUBRIDGE ANNOUNCES FIRST QUARTER 2025 RESULTS MOBILE, ALA. (May 7, 2025) – TruBridge, Inc. (NASDAQ: TBRG), a healthcare solutions company, today announced financial results for the first quarter ended March 31, 2025. First Quarter 2025 Highlights* All comparisons are to the quarter ended March 31, 2024, unless otherwise noted *As of the third quarter of 2024, TruBridge is now reporting two segments in its financial statements representing the two business units. Financial Health represents the ...

Financial Performance - The company reported a significant increase in revenue, with a year-over-year growth of 15% to $1.2 billion[7] - The company anticipates a revenue growth of 10% for the next fiscal year, projecting revenues of approximately $1.32 billion[7] - Operating margins improved to 30%, up from 28% in the previous quarter[7] User Growth - User data showed a 20% increase in active users, reaching 5 million by the end of the quarter[7] Market Expansion - The company is expanding its market presence in Europe, targeting a 25% increase in market share by 2025[7] Product Development - New product launches are expected to contribute an additional $200 million in revenue over the next year[7] - The company is investing $30 million in research and development for new technologies in the upcoming year[7] Strategic Initiatives - A strategic acquisition of a smaller tech firm was completed for $50 million, aimed at enhancing product offerings[7] - The company plans to implement a subscription-based revenue model, expecting it to account for 40% of total revenue by 2025[7] Demand Indicators - The backlog of orders increased by 18%, indicating strong future demand for products[7]

Revenue Performance - Revenue for 2024 was $339.2 million, with Q4 revenue at $87.4 million, representing a slight decrease from $339.4 million in 2023[5]. - TruBridge expects total revenue for Q1 2025 to be between $85 million and $88 million, and for the full year 2025, total revenue is projected to be between $345 million and $360 million[11]. - Total Patient Care revenues for the twelve months ended December 31, 2024, were $123,098,000, down from $145,506,000 in 2023, indicating a decline of about 15.4%[32]. - Total recurring revenues from Patient Care for the three months ended December 31, 2024, were $28,193,000, compared to $32,122,000 in 2023, a decrease of approximately 12.1%[32]. Profitability and Loss - Net loss for 2024 was $23.1 million, with a Q4 net loss of $5.7 million, compared to a net loss of $45.8 million in 2023[11]. - TruBridge reported a net loss of $23,084,000 for the twelve months ended December 31, 2024, an improvement from a net loss of $45,789,000 in 2023, representing a 49.6% reduction in losses[19]. - For the three months ended December 31, 2024, the company reported a Non-GAAP net income of $715,000, compared to $5,129,000 in the same period of 2023, representing a decrease of approximately 86%[30]. - Non-GAAP EPS for the twelve months ended December 31, 2024, was $0.24, compared to $1.79 in 2023, reflecting a decrease of approximately 86.6%[30]. Adjusted EBITDA - Adjusted EBITDA for 2024 was $53.1 million, with Q4 adjusted EBITDA at $17.2 million, an increase from $47.6 million in 2023[11]. - Adjusted EBITDA for the twelve months ended December 31, 2024, was $53,090,000, compared to $47,576,000 in 2023, reflecting an increase of 11.8%[28]. - The company’s Adjusted EBITDA margin improved to 15.7% in 2024 from 14.0% in 2023[28]. - The Financial Health segment generated $10,792,000 in Adjusted EBITDA for Q4 2024, compared to $6,596,000 in Q4 2023, a 63.4% increase[26]. - The Patient Care segment's Adjusted EBITDA was $6,448,000 for Q4 2024, up from $5,388,000 in Q4 2023, representing a 19.7% increase[26]. Financial Health and Assets - Financial Health revenue for 2024 was $216.1 million, representing 63.7% of total revenue, up from $193.9 million in 2023[11]. - Total current assets decreased to $90,274,000 in 2024 from $111,455,000 in 2023, a decline of 19%[17]. - Cash and cash equivalents increased significantly to $12,324,000 in 2024 from $3,848,000 in 2023, marking a 220% increase[19]. - Total liabilities decreased to $225,737,000 in 2024 from $247,804,000 in 2023, a reduction of 8.9%[17]. Operational Efficiency - The company successfully transitioned approximately 30% of its Financial Health Complete Business Office client base offshore, enhancing operational efficiency[5]. - TruBridge achieved total annual bookings of $82.1 million, compared to $80.2 million in 2023[11]. - Total bookings for the twelve months ended December 31, 2024, reached $82,074,000, up from $80,239,000 in 2023, indicating a growth of 2.3%[21]. - The leverage ratio improved from 4x at the end of 2023 to approximately 3x at the end of 2024 due to significant debt repayment[5]. Strategic Initiatives - The company rebranded as TruBridge to pursue a more focused marketing strategy under one brand, aiming to enhance customer satisfaction and retention[5]. - The company plans to continue using non-GAAP financial measures to evaluate operating performance and make strategic decisions, emphasizing their importance in understanding financial trends[39]. Other Financial Metrics - The company reported a significant increase in accounts payable, which rose to $15,040,000 in 2024 from $10,133,000 in 2023, an increase of 48.5%[17]. - Amortization of acquisition-related intangible assets for the twelve months ended December 31, 2024, was $12,505,000, down from $16,426,000 in 2023, a reduction of about 23.5%[30]. - The company incurred a goodwill impairment charge of $35,913,000 in 2023, which was excluded from Non-GAAP financial measures[30]. - The weighted average shares outstanding, diluted, for the twelve months ended December 31, 2024, was 14,300,000, compared to 14,187,000 in 2023, an increase of about 0.8%[30].

Financial Performance - Total revenues for the first nine months of 2024 were $251.8 million, a decrease of 1% from $253.6 million in the same period of 2023[170]. - Financial Health segment revenues increased by $18.4 million, or 13%, compared to the first nine months of 2023, primarily due to the acquisition of Viewgol[192]. - Net loss for the first nine months of 2024 increased to $17.4 million from $3.3 million in the prior-year period[170]. - Recurring Financial Health revenues were $53.1 million, representing 98% of total Financial Health revenues[174]. - Patient Care segment revenues decreased by $20.2 million, or 19%, compared to the third quarter of 2023, primarily due to customer attrition and the sale of AHT[178]. - Total Patient Care revenue for the first nine months of 2024 was $90.4 million, down from $110.6 million in the same period of 2023, representing a decrease of $20.2 million, or 18%[212]. - Net loss for the third quarter of 2024 was $9.8 million, or $(0.66) per share, compared to a net loss of $3.6 million, or $(0.24) per share, for the third quarter of 2023[191]. - Net loss for the first nine months of 2024 increased by $14.1 million to $17.4 million, or $(1.17) per basic and diluted share, compared to a net loss of $3.3 million, or $(0.23) per share, for the same period in 2023[208]. Revenue Sources - Financial Health revenues comprised 57% of the consolidated revenue for 2023[149]. - SaaS license models accounted for 100% of annual new acute Patient Care installations in 2023, up from 12% in 2018[162]. - The company achieved a retention rate of 92.1% in 2023, with annualized retention at 96.0% for the first nine months of 2024[156]. - Recurring Patient Care revenues decreased by $18.3 million, or 18%, compared to the first nine months of 2023, primarily due to the sale of AHT in January 2024[196]. - Non-recurring Patient Care revenues decreased by $1.9 million, or 17%, compared to the first nine months of 2023, also driven by the sale of AHT[197]. Cost Management - Total costs of revenue (exclusive of amortization and depreciation) decreased to 51% of revenues during the third quarter of 2024, down from 53% in the third quarter of 2023[180]. - Product development expenses decreased by $2.0 million, or 21%, compared to the third quarter of 2023, primarily due to labor force optimization[183]. - General and administrative expenses decreased by $1.6 million, or 8%, compared to the third quarter of 2023[186]. - Total costs of revenue decreased by $4.7 million compared to the first nine months of 2023, with costs of revenue as a percentage of total revenues decreasing to 51% from 52%[198]. - General and administrative expenses increased by $3.2 million, or 6%, compared to the first nine months of 2023, mainly due to increased stock compensation and the acquisition of Viewgol[203]. Strategic Initiatives - The company aims to achieve long-term revenue growth by cross-selling Financial Health services into the existing Patient Care customer base[154]. - The company plans to grow through acquisitions of businesses, technologies, or products that align with strategic goals[154]. - Margin optimization efforts include organizational realignment and expanded use of offshore resources, with expectations of improved cost efficiencies[167]. - The company anticipates additional pressure on margins due to the integration and ramp-up of Viewgol, acquired in October 2023[167]. - Financial Health's gross margins are under pressure from wage inflation and inflation-indexed price adjustments in contracts with suppliers[169]. Cash Flow and Debt - As of September 30, 2024, the company had $177.7 million in principal amount of indebtedness outstanding under credit facilities, with cash and cash equivalents of $8.6 million[219]. - Total other expense increased to $11.2 million during the first nine months of 2024, compared to $7.8 million during the same period in 2023, primarily due to increased interest expense[205]. - The company drew $41.0 million from its revolving credit facility for the Viewgol acquisition, leaving $40.6 million available as of October 16, 2023[220]. - Net cash provided by operating activities increased by $8.5 million to $21.8 million for the nine months ended September 30, 2024, compared to $13.3 million for the same period in 2023[221]. - Net cash provided by investing activities increased by $24.1 million to $5.8 million during the nine months ended September 30, 2024, primarily due to the sale of AHT, which resulted in a net cash inflow of $21.4 million[222]. - Financing activities resulted in a net cash use of $22.9 million during the nine months ended September 30, 2024, compared to a net cash use of $0.5 million in the same period of 2023[223]. - As of September 30, 2024, the company had $57.3 million in principal amount outstanding under the term loan facility and $120.4 million under the revolving credit facility, with an average interest rate of 8.40%[225]. Bookings and Backlog - The company reported a twelve-month backlog of approximately $8 million for non-recurring system purchases and approximately $320 million for recurring payments as of September 30, 2024[232]. - Total bookings for the third quarter of 2024 increased by $5.973 million, or 40%, compared to the third quarter of 2023, reaching $20.95 million[234]. - Financial Health bookings increased by $3.4 million, or 38%, in the third quarter of 2024, driven by a 39% increase in net-new bookings[235]. - Patient Care bookings increased by $2.6 million, or 43%, in the third quarter of 2024, with acute Patient Care bookings rising by 59%[237]. Interest Rate Sensitivity - A one hundred basis point change in interest rates on borrowings outstanding as of September 30, 2024, would result in a change in interest expense of approximately $1.8 million annually[241].

Financial Performance - Total bookings for Q3 2024 reached $21.0 million, up from $15.0 million in Q3 2023, representing a 40% increase[1] - Total revenue for Q3 2024 was $83.8 million, slightly up from $82.7 million in Q3 2023, indicating a 1.3% growth[1] - Financial Health revenue accounted for $54.3 million, which is 64.7% of total revenue, compared to $46.6 million in Q3 2023[1] - GAAP net loss for Q3 2024 was $(9.8) million, compared to a net loss of $(3.6) million in Q3 2023[1] - Adjusted EBITDA for Q3 2024 was $13.8 million, an increase from $9.7 million in Q3 2023, reflecting a 42% growth[1] - TruBridge, Inc. reported a net loss of $17,374,000 for the nine months ended September 30, 2024, compared to a net loss of $3,315,000 for the same period in 2023[12] - TruBridge, Inc. reported a net loss of $9,809,000 for the three months ended September 30, 2024, compared to a net loss of $3,562,000 for the same period in 2023, reflecting an increase in loss of 175.5%[16] - Non-GAAP net income for the three months ended September 30, 2024, was $(2,963,000), compared to $6,348,000 for the same period in 2023, indicating a significant decline[17] - The company reported a net income margin of (11.7%) for the three months ended September 30, 2024, compared to (4.3%) for the same period in 2023[16] Revenue Projections - For Q4 2024, TruBridge expects total revenue between $83.5 million and $85.5 million[5] - For the full year 2024, total revenue is projected to be between $335 million and $337 million, narrowed from previous guidance of $330 million to $340 million[5] Operational Changes - The recently launched analytics offering is gaining traction with initial customers, contributing to the growth strategy[3] - The company is focused on optimizing operations and realizing margin improvements over time following the Viewgol integration[2] - Executive leadership changes include the retirement of COO David Dye, effective December 31, 2024, with general managers now reporting directly to the CEO[4] Asset and Liability Management - Total current assets decreased to $91,621,000 as of December 31, 2023, down from $111,455,000 at the end of 2022, reflecting a decline of approximately 17.8%[11] - Total liabilities decreased to $228,886,000 as of December 31, 2023, compared to $247,804,000 at the end of 2022, representing a reduction of about 7.6%[11] - The company’s long-term debt decreased to $173,343,000 as of December 31, 2023, down from $195,270,000 at the end of 2022, a decline of about 11.2%[11] - The total stockholders' equity decreased to $172,647,000 as of December 31, 2023, down from $186,618,000 at the end of 2022, reflecting a decline of approximately 7.5%[11] Cash Flow and Investments - Cash and cash equivalents increased to $8,586,000 at the end of the period, up from $1,473,000 at the end of September 30, 2023[12] - The company invested $13,666,000 in software development during the nine months ended September 30, 2024, compared to $17,981,000 for the same period in 2023[12] Patient Care Revenue - The company reported a significant increase in patient care bookings, reaching $8,454,000 for the three months ended September 30, 2024, compared to $5,897,000 for the same period in 2023, a growth of approximately 43.5%[13] - Total recurring revenues from Patient Care for the three months ended September 30, 2024, were $26,584,000, down 18.3% from $32,662,000 in the same period of 2023[18] - Total Patient Care revenues for the nine months ended September 30, 2024, were $90,389,000, down 18.4% from $110,594,000 for the same period in 2023[18] Non-GAAP Financial Measures - The company plans to continue evaluating its operating performance using non-GAAP financial measures to provide a clearer understanding of its financial trends and operational performance[19] - Management emphasizes the importance of non-GAAP financial measures as indicators of operational strength and performance[23] - Adjusted EBITDA, Non-GAAP net income, and Non-GAAP EPS are used to measure performance objectives under the Company's incentive programs[23] - Non-GAAP financial measures do not provide a measure of cash flow or liquidity, and are not alternatives to GAAP measures[23] - Limitations of non-GAAP measures include not reflecting all amounts associated with results of operations as per GAAP[23] - There is uncertainty regarding future expenses that may be similar to those excluded in non-GAAP calculations[23] - Investors are encouraged to review the "Unaudited Reconciliation of Non-GAAP Financial Measures" for more clarity[23]

Revenue Performance - Revenue cycle management (RCM) revenues comprised 57% of the company's consolidated revenue for 2023[130]. - Total revenues for the first six months of 2024 were $168.0 million, a decrease of 2% from $170.9 million in the same period of 2023[147]. - RCM revenues increased by $10.8 million, or 11%, in the first six months of 2024, primarily due to the acquisition of Viewgol, which contributed $9.9 million[166]. - Total EHR revenue for the first six months of 2024 was $60.831 million, down from $74.464 million in the same period of 2023, representing a decrease of $13.633 million, or 18%[183]. - RCM segment revenues increased by $10.755 million, or 11%, to $107.146 million for the first six months of 2024 compared to $96.391 million in the same period of 2023[183]. Customer Retention and Growth - The company achieved a retention rate of 92.1% for its Acute Care EHR customers in 2023, with rates consistently in the mid-to-high 90th percentile since 2019[136]. - The annualized retention rate for the first half of 2024 was reported at 95.0%[136]. - The company aims to enhance its recurring revenue base to stabilize revenues and cash flows, focusing on customer retention and demand for subscriptions[137]. - The transition to a subscription-based recurring revenue model is a key component of the company's long-term growth strategy[127]. Financial Performance and Costs - Net loss for the first six months of 2024 was $7.6 million, a decrease of $7.8 million compared to the prior-year period[147]. - Net loss for the second quarter of 2024 was $5.0 million, compared to a net loss of $2.8 million in the second quarter of 2023[165]. - General and administrative expenses decreased by $0.2 million, or 1%, compared to the second quarter of 2023, driven by reductions in non-recurring severance costs[160]. - General and administrative expenses increased by $4.8 million, or 14%, compared to the first six months of 2023, driven by stock compensation and the acquisition of Viewgol[175]. - Total costs of revenue (exclusive of amortization and depreciation) decreased to 51% of revenues during the second quarter of 2024, down from 52% in the second quarter of 2023[155]. Tax and Cash Flow - The effective tax rate for the three months ended June 30, 2024, decreased to 29.6% from 36.8% in the same period of 2023[164]. - Effective tax rate for the first six months of 2024 improved to 32.9% from 141.2% in the same period of 2023, largely due to the R&D tax credit[179]. - Net cash provided by operating activities increased by $1.5 million, from $10.2 million for the six months ended June 30, 2023, to $11.7 million for the six months ended June 30, 2024, primarily due to improved working capital management[190]. - Net cash provided by investing activities increased by $23.3 million, with $11.1 million provided during the six months ended June 30, 2024, compared to $12.2 million used during the same period in 2023, mainly due to the sale of AHT which resulted in a net cash inflow of $21.4 million[191]. Debt and Financing - As of June 30, 2024, the company had $181.5 million in principal amount of indebtedness outstanding under credit facilities, with cash and cash equivalents of $7.7 million[188]. - The company made a draw of $41.0 million on the revolving credit facility for the Viewgol acquisition, leaving a remaining borrowing capacity of $40.6 million[189]. - As of June 30, 2024, the company had $58.1 million in principal amount outstanding under the term loan facility and $123.4 million under the revolving credit facility, with an average interest rate of 8.42%[195]. - The company had $181.5 million of outstanding borrowings under credit facilities as of June 30, 2024, with a potential annual interest expense change of approximately $1.9 million for a 100 basis point change in interest rates[207]. Market and Strategic Initiatives - The healthcare IT sector is anticipated to continue attracting investment due to its potential to improve safety, efficiency, and compliance with regulatory requirements[139]. - The company is implementing margin optimization initiatives, including organizational realignment and expanded use of offshore resources[144]. - The company expects additional pressure on margins due to the integration and ramp-up of Viewgol, acquired in October 2023[145]. - RCM bookings increased by $2.1 million, or 8%, in the first six months of 2024 compared to the same period in 2023, while cross-sell bookings decreased by $3.9 million, or 24%[203]. - EHR bookings increased by $2.5 million, or 34%, during the second quarter of 2024 compared to the second quarter of 2023, with Acute Care EHR bookings increasing by $3.1 million[204]. Regulatory and Legislative Risks - The company faces risks related to significant legislative and regulatory uncertainty in the healthcare industry[126]. - The company is required to maintain a minimum fixed charge coverage ratio of 1.25:1.00, which was amended to 1.15:1.00 for fiscal quarters ending March 31, 2024, through December 31, 2024[199].

Financial Performance - Total bookings for Q2 2024 reached $23.3 million, a 10.95% increase from $21.0 million in Q2 2023[2] - Total revenue for Q2 2024 was $84.7 million, slightly up from $84.6 million in Q2 2023[2] - Revenue Cycle Management (RCM) revenue was $54.1 million, representing 63.9% of total revenue, compared to $47.8 million in the same quarter last year[2] - GAAP loss per diluted share was $(0.34), compared to $(0.20) in Q2 2023[2] - Non-GAAP earnings per diluted share decreased to $0.16 from $0.40 year-over-year[2] - Adjusted EBITDA for Q2 2024 was $12.6 million, an increase from $11.2 million in Q2 2023[2] - TruBridge reported a net loss of $7,565,000 for Q2 2024, compared to a net income of $247,000 in Q2 2023[12] - Non-GAAP net income for Q2 2024 was $2,318,000, compared to $5,701,000 in Q2 2023, a decline of 59.3%[17] - Non-GAAP EPS for Q2 2024 was $0.16, down from $0.40 in Q2 2023, a decrease of 60.0%[17] - The company reported a net income margin of (6.0%) for Q2 2024, compared to (3.4%) in Q2 2023[16] Revenue Guidance - For Q3 2024, total revenue is expected to be between $82 million and $85 million[4] - Full year 2024 revenue guidance is reiterated at between $330 million and $340 million[4] - Adjusted EBITDA for the full year 2024 is expected to be between $45 million and $50 million[4] Asset and Liability Management - Total current assets decreased to $91,583,000 as of June 30, 2024, down from $111,455,000 at the end of 2023, reflecting a decline of approximately 18%[11] - Total liabilities decreased to $231,185,000 as of June 30, 2024, down from $247,804,000 at the end of 2023, representing a reduction of about 7%[11] - The total stockholders' equity decreased to $181,102,000 as of June 30, 2024, down from $186,618,000 at the end of 2023, reflecting a decline of approximately 3%[11] Cash Flow and Investments - Cash and cash equivalents increased to $7,709,000 at the end of Q2 2024, compared to $3,848,000 at the beginning of the period, marking a rise of about 100%[12] - The net cash provided by operating activities was $11,730,000 in Q2 2024, an increase from $10,190,000 in Q2 2023[12] - The company invested $9,324,000 in software development during Q2 2024, compared to $12,143,000 in Q2 2023[12] Segment Performance - Adjusted EBITDA for the RCM segment was $7,804,000 in Q2 2024, up from $5,682,000 in Q2 2023, indicating a growth of approximately 37%[15] - Total recurring revenues from EHR for Q2 2024 were $26,666,000, down from $33,742,000 in Q2 2023, representing a decrease of 20.9%[18] - Total EHR revenues for the first six months of 2024 were $60,831,000, compared to $74,464,000 for the same period in 2023, a decrease of 18.3%[18] Expenses - Interest expense for Q2 2024 was $4,151,000, up from $2,586,000 in Q2 2023, an increase of 60.5%[16] - Stock-based compensation for Q2 2024 was $1,501,000, compared to a negative $123,000 in Q2 2023[16] - Severance and other non-recurring charges for Q2 2024 were $4,586,000, down from $6,819,000 in Q2 2023, a decrease of 32.4%[16] Margins - Total adjusted EBITDA margin for Q2 2024 was 14.8%, compared to 13.3% in Q2 2023, an improvement of 1.5 percentage points[16] - The company emphasized a strong pipeline and positive outlook for the remainder of the year[3] - The company reported a significant gain on the sale of business amounting to $1,250,000 in Q2 2024[12]

Financial Performance - Total revenues for the three months ended March 31, 2024, were $83.247 million, a decrease of 3.4% compared to $86.233 million for the same period in 2023[193]. - Adjusted EBITDA for the three months ended March 31, 2024, was $9.454 million, down 35.4% from $14.643 million in the same period of 2023[194]. - The company recorded a net loss of $2.516 million for the three months ended March 31, 2024, compared to a net income of $3.084 million for the same period in 2023[194]. - Operating income for Q1 2024 was a loss of $1.458 million, compared to an operating income of $6.295 million in Q1 2023[230]. - Total expenses for Q1 2024 increased to $84.705 million, or 101.8% of total revenues, compared to $79.938 million, or 92.7% of total revenues in Q1 2023[230]. - Net loss for the first quarter of 2024 was $2.5 million, a decrease of $5.6 million from a net income of $3.1 million in the first quarter of 2023[267]. Revenue Segments - Revenue Cycle Management (RCM) segment generated $53.038 million in revenue, accounting for 57% of total consolidated revenue for 2023[201]. - RCM revenues increased by $4.4 million, or 9%, compared to the first quarter of 2023, driven by the acquisition of Viewgol, which contributed $4.7 million[247]. - Recurring EHR revenues decreased by $5.0 million, or 16%, in Q1 2024 compared to Q1 2023, driven by the sale of American HealthTech, Inc. and customer migration to SaaS arrangements[234]. - Acute Care EHR revenues decreased by $1.7 million in Q1 2024, attributed to a decline in support revenues due to customer migration and attrition from the Centriq platform[234]. - Non-recurring EHR revenues decreased by $2.1 million, or 58%, compared to the first quarter of 2023, reflecting a strategic shift towards increasing recurring revenues[260]. Strategic Initiatives - The company aims to enhance its recurring revenue base, which is crucial for stabilizing revenues and cash flows[206]. - The company plans to expand RCM services beyond its existing EHR customer base to drive long-term revenue growth[206]. - The company changed its corporate name to TruBridge, Inc. on March 4, 2024, reflecting its strategic shift towards RCM services[201]. - The shift towards a SaaS license model has increased from 12% of annual new acute care EHR installations in 2018 to 100% in 2023 and Q1 2024, impacting short-term revenue growth but benefiting long-term profitability[209]. Cost Management - Costs associated with EHR revenues decreased by $5.1 million, or 31%, in Q1 2024 compared to Q1 2023, due to payroll and software cost reductions following the sale of American HealthTech[236]. - The company plans to enhance margins through cost containment measures and increased operational efficiencies, despite anticipated margin pressure from the transition to SaaS arrangements[221]. - General and administrative expenses increased by $4.9 million, or 34%, compared to the first quarter of 2023, influenced by the acquisition of Viewgol and increased severance costs[252]. - Product development expenses increased by $2.3 million, or 28%, compared to the first quarter of 2023, due to increased costs related to migrating to a public cloud environment[263]. Cash and Debt Management - Cash and cash equivalents as of March 31, 2024, were $4.1 million, up from $3.8 million as of December 31, 2023, with remaining borrowing capacity under the revolving credit facility at $36.6 million[257]. - As of March 31, 2024, the company had $63.0 million in principal amount outstanding under the term loan facility and $123.4 million under the revolving credit facility[293]. - The average interest rate for the revolving credit facility was 8.42% as of March 31, 2024[293]. - A 100 basis point change in interest rate on borrowings would result in a change in interest expense of approximately $1.9 million annually[302]. - The required consolidated fixed charge coverage ratio was decreased from 1.25:1.00 to 1.15:1.00 for each fiscal quarter ending March 31, 2024, through December 31, 2024[294]. Market Trends - The healthcare industry is increasingly pressured to adopt value-based reimbursement models, which may boost demand for healthcare IT solutions[207]. - The company achieved a retention rate of 92.1% in 2023, with a slight decline to 91.1% in Q1 2024 due to increased attrition from non-flagship products[220]. Bookings and Backlog - Total bookings for the three months ended March 31, 2024, were $23.569 million, an increase from $19.847 million in the same period of 2023[299]. - RCM bookings increased by $2.3 million, or 19%, in Q1 2024 compared to Q1 2023, while cross-sell bookings decreased by $0.5 million, or 9%[283]. - As of March 31, 2024, the company had a twelve-month backlog of approximately $11 million for non-recurring system purchases and approximately $321 million for recurring payments under support and maintenance and RCM services[282]. Stock Activity - The company repurchased 41,000 shares of common stock at an average price of $8.33 during March 2024[324].

Financial Performance - Bookings for the first quarter of 2024 reached $23.6 million, an increase from $19.8 million in the same quarter of 2023[16] - Total revenue for the first quarter of 2024 was $83.2 million, down from $86.2 million year-over-year[16] - Revenue Cycle Management (RCM) revenue was $53.0 million, representing 63.7% of total revenue, compared to $48.6 million in the previous year[16] - GAAP loss per diluted share was $(0.17), a decrease from earnings of $0.21 per diluted share in the prior year[16] - Non-GAAP earnings per diluted share were $0.19, down from $0.58 year-over-year[16] - Adjusted EBITDA for the first quarter was $9.5 million, compared to $14.6 million in the same quarter of 2023[16] - Total revenues for Q1 2024 were $83,247 million, a decrease of 3% from $86,233 million in Q1 2023[22] - Revenue from RCM (Revenue Cycle Management) increased to $53,038 million, up 9.9% from $48,631 million in the previous year[22] - EHR (Electronic Health Records) revenue decreased to $28,022 million, down 20.5% from $35,191 million in Q1 2023[22] - Net loss for Q1 2024 was $(2,516) million, a significant decline from a net income of $3,084 million in Q1 2023[22] - Non-GAAP net income for Q1 2024 was $2,707 million, compared to $8,232 million in Q1 2023, with a non-GAAP EPS of $0.19[53] Guidance and Expectations - For the full year 2024, the company expects total revenue to be between $330 million and $340 million, revised from a previous range of $340 million to $350 million[17] - The adjusted EBITDA guidance for 2024 remains unchanged at $45 million to $50 million[17] - Adjusted EBITDA for Q2 2024 is expected to be between $8.0 million and $10.0 million[31] Expenses and Losses - Total expenses for Q1 2024 were $84,705 million, an increase of 6.5% compared to $79,938 million in Q1 2023[22] - Operating loss for Q1 2024 was $(1,458) million, compared to an operating income of $6,295 million in Q1 2023[22] - Total cash used in operating activities was $(2,034) million, compared to $9,473 million in the previous year[37] - The company reported a provision for credit losses of $500 million in Q1 2024, compared to a benefit of $(352) million in Q1 2023[37] Assets and Equity - Total current assets decreased to $91,904 million from $111,455 million at the end of 2023[36] - Total liabilities decreased to $231,744 million from $247,804 million at the end of 2023[36] - Stockholders' equity decreased to $184,673 million from $186,618 million at the end of 2023[36] - Cash and cash equivalents at the end of Q1 2024 were $4,115 million, down from $6,816 million at the end of Q1 2023[37] Strategic Focus - The company noted a strong position in profitability due to effective expense management despite the revenue guidance revision[16] - The company is focusing on capturing larger deals in its RCM business, which may introduce timing complexities in revenue recognition[16] - Subscription revenue increased to $5,532 million in Q1 2024, compared to $3,207 million in Q1 2023, marking a growth of 72%[39] - Total recurring revenues from EHR decreased to $26,492 million in Q1 2024 from $31,519 million in Q1 2023, a decline of 16%[43] - The company made a significant investment of $21,410 million in the purchase of a business during Q1 2024[37]