UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ FORM 10-Q ________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 Or ☐ 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: 001-38993 HEALTH CATALYST, INC. (Exact name of registrant as specified in its cha ...

Health Catalyst, Inc. (NASDAQ:HCAT) Q2 2020 Earnings Conference Call August 11, 2020 5:00 PM ET Company Participants Adam Brown - SVP, IRn Dan Burton - CEO Patrick Nelli - CFO Conference Call Participants Robert Jones - Goldman Sachs Anne Samuel - JPMorgan Ryan Daniels - William Blair Sean Wieland - Piper Sandler Sandy Draper - Truist Securities Elizabeth Anderson - Evercore Stephanie Davis - SVB Leerink Richard Close - Canaccord Genuity David Grossman - Stifle Daniel Grosslight - Citi David Larson - Verity ...

[Part I. Financial Information](index=5&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements show total assets increased to **$466.4 million** by June 30, 2020, with a **23% revenue increase** to **$88.4 million** but a **net loss of $44.7 million** for the six months Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2020 (unaudited) | December 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $104,185 | $18,032 | | Short-term investments | $248,932 | $210,245 | | Total current assets | $396,953 | $264,239 | | Goodwill | $18,419 | $3,694 | | **Total assets** | **$466,396** | **$302,360** | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $50,185 | $48,217 | | Long-term debt | $163,480 | $48,200 | | **Total liabilities** | **$232,434** | **$101,716** | | **Total stockholders' equity** | **$233,962** | **$200,644** | | **Total liabilities and stockholders' equity** | **$466,396** | **$302,360** | Condensed Consolidated Statements of Operations Statement of Operations Summary (in thousands) | Metric | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | **$43,259** | **$36,804** | **$88,375** | **$72,017** | | Technology Revenue | $25,487 | $20,085 | $50,186 | $40,233 | | Professional Services Revenue | $17,772 | $16,719 | $38,189 | $31,784 | | Loss from operations | $(15,640) | $(9,363) | $(33,745) | $(20,457) | | Loss on extinguishment of debt | $(8,514) | $— | $(8,514) | $(1,670) | | **Net loss** | **$(27,183)** | **$(10,694)** | **$(44,673)** | **$(24,414)** | | Net loss per share, basic and diluted | $(0.71) | $(21.98) | $(1.19) | $(38.29) | Condensed Consolidated Statements of Cash Flows Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net cash used in operating activities | $(17,520) | $(13,641) | | Net cash used in investing activities | $(56,684) | $(30,214) | | Net cash provided by financing activities | $160,366 | $36,243 | | **Net increase (decrease) in cash** | **$86,153** | **$(7,612)** | - Financing activities in H1 2020 were primarily driven by **$222.5 million** in net proceeds from convertible senior notes, offset by a **$57.0 million** repayment of credit facilities and a **$21.7 million** purchase of capped calls[36](index=36&type=chunk)[37](index=37&type=chunk) Notes to the Condensed Consolidated Financial Statements The notes detail significant accounting policies, recent business combinations, and financial instrument specifics, including the **Able Health acquisition**, **convertible senior notes issuance**, and subsequent acquisitions of **Healthfinch** and **Vitalware** - On February 21, 2020, the company acquired Able Health, Inc. for total consideration of **$21.5 million**, comprising **$15.2 million** in cash, **$3.3 million** in common stock, and **$3.0 million** in contingent consideration, resulting in **$14.7 million** of goodwill[99](index=99&type=chunk)[103](index=103&type=chunk) - In April 2020, the company issued **$230.0 million** of 2.50% Convertible Senior Notes due 2025, receiving net proceeds of **$222.5 million**, and purchased capped calls for **$21.7 million** to reduce potential dilution[117](index=117&type=chunk)[126](index=126&type=chunk) - Proceeds from the new notes were used to prepay the OrbiMed term loan in full, resulting in a loss on debt extinguishment of **$8.5 million** in Q2 2020[132](index=132&type=chunk) - Subsequent to quarter-end, the company acquired Healthfinch, Inc. on July 31, 2020, for approximately **$45 million** and entered an agreement on August 11, 2020, to acquire Vitalware LLC for approximately **$120 million**[180](index=180&type=chunk)[181](index=181&type=chunk)[183](index=183&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **23% revenue increase** to **$88.4 million** for H1 2020, the mixed impact of COVID-19, and strategic financial actions including issuing **$230 million** in convertible senior notes COVID-19 Impact The COVID-19 pandemic is expected to have a muted impact on total revenue due to the recurring revenue model, but led to temporary discounts and fewer new customer additions - The company's highly recurring revenue model (over **90%**) is expected to mute the overall impact of COVID-19 on 2020 total revenue[190](index=190&type=chunk) - To support customers, the company provided temporary discounts on Professional Services, which lowered revenue growth and gross margin for that segment in Q2 2020[191](index=191&type=chunk) - Net new DOS subscription customer additions in H1 2020 were lower than anticipated due to the pandemic's impact on health systems[192](index=192&type=chunk) Results of Operations Revenue Comparison (in thousands) | Period | 2020 | 2019 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Three Months Ended June 30** | | | | | | Total Revenue | $43,259 | $36,804 | $6,455 | 18% | | *Technology* | *$25,487* | *$20,085* | *$5,402* | *27%* | | *Professional Services* | *$17,772* | *$16,719* | *$1,053* | *6%* | | **Six Months Ended June 30** | | | | | | Total Revenue | $88,375 | $72,017 | $16,358 | 23% | | *Technology* | *$50,186* | *$40,233* | *$9,953* | *25%* | | *Professional Services* | *$38,189* | *$31,784* | *$6,405* | *20%* | Operating Expenses Comparison for Six Months Ended June 30 (in thousands) | Expense Category | 2020 | 2019 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Sales and marketing | $25,989 | $20,858 | $5,131 | 25% | | Research and development | $25,149 | $19,732 | $5,417 | 27% | | General and administrative | $17,814 | $12,320 | $5,494 | 45% | | **Total operating expenses** | **$74,923** | **$57,438** | **$17,485** | **30%** | - The increase in operating expenses for H1 2020 was primarily driven by higher stock-based compensation (**$14.7 million** increase YoY), acquisition-related costs (**$1.3 million**), and increased salary costs from higher headcount[260](index=260&type=chunk)[261](index=261&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk) Liquidity and Capital Resources The company strengthened its liquidity with **$353.1 million** in cash and investments as of June 30, 2020, primarily from **$222.5 million** in net proceeds from convertible senior notes used to prepay existing debt - As of June 30, 2020, the company had **$353.1 million** in cash, cash equivalents, and short-term investments[276](index=276&type=chunk) - In April 2020, the company raised **$222.5 million** in net proceeds from a private offering of **$230.0 million** in 2.50% Convertible Senior Notes due 2025[278](index=278&type=chunk) - The company used **$57.0 million** of the note proceeds to prepay all outstanding debt under its Credit Agreement with OrbiMed and terminated the agreement[285](index=285&type=chunk) Contractual Obligations as of June 30, 2020 (in thousands) | Obligation | Total | Less than 1 Year | 1 to 3 Years | 3 to 5 Years | More than 5 Years | | :--- | :--- | :--- | :--- | :--- | :--- | | Convertible senior notes | $258,750 | $5,750 | $11,500 | $241,500 | $— | | Operating lease obligations | $37,611 | $3,392 | $6,845 | $6,714 | $20,660 | | Acquisition-related consideration | $3,250 | $3,250 | $— | $— | $— | | **Total** | **$299,611** | **$12,392** | **$18,345** | **$248,214** | **$20,660** | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=71&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate fluctuations on its **$353.1 million** in cash and investments, with foreign currency and inflation risks currently deemed immaterial - The company's main market risk is interest rate risk on its **$353.1 million** portfolio of cash, cash equivalents, and short-term investments[314](index=314&type=chunk) - Foreign currency exchange risk is currently limited due to the small size of international operations, with most sales contracts denominated in U.S. dollars[318](index=318&type=chunk)[319](index=319&type=chunk) - Inflation is not believed to have had a material effect on the business[320](index=320&type=chunk) [Item 4. Controls and Procedures](index=72&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2020, with no material changes to internal control over financial reporting during the quarter - As of June 30, 2020, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[322](index=322&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2020[323](index=323&type=chunk) [Part II. Other Information](index=73&type=section&id=Part%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=73&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to legal proceedings in the normal course of business but reports no significant outstanding claims as of the reporting date - The company is subject to legal proceedings in the normal course of business, but reports no significant outstanding claims[326](index=326&type=chunk) [Item 1A. Risk Factors](index=73&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from intense competition, the COVID-19 pandemic, data security breaches, regulatory compliance (HIPAA, CCPA, GDPR, FDA), and financial challenges including a history of net losses - The company faces intense competition from industry-agnostic analytics companies, EHR vendors like Epic and Cerner, and large, well-resourced entities such as Optum and IBM[329](index=329&type=chunk)[330](index=330&type=chunk) - The COVID-19 pandemic poses a significant risk, potentially decreasing healthcare spending, lengthening sales cycles, and impacting customer renewals and collections[335](index=335&type=chunk) - The business is highly dependent on customer satisfaction and contract renewals; failure to renew or renewing at lower fee levels could materially harm financial results[339](index=339&type=chunk) - Security breaches or unauthorized access to customer data, including Protected Health Information (PHI), could lead to significant liabilities, reputational damage, and loss of customers[344](index=344&type=chunk) - The company is subject to extensive and evolving healthcare regulations, including HIPAA, anti-kickback laws, and potential FDA regulation of its software as a medical device, which could create significant compliance costs and liabilities[441](index=441&type=chunk)[442](index=442&type=chunk)[443](index=443&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=111&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In April 2020, the company raised **$222.5 million** in net proceeds from convertible senior notes, used for capped call transactions, debt repayment, and general corporate purposes - In April 2020, the company raised net proceeds of **$222.5 million** from a private placement of **$230.0 million** in convertible senior notes[497](index=497&type=chunk)[498](index=498&type=chunk) - The company used **$57.0 million** of the proceeds to prepay its credit agreement with OrbiMed and **$21.6 million** for capped call transactions[498](index=498&type=chunk) [Item 6. Exhibits](index=112&type=section&id=Item%206.%20Exhibits) This section lists key exhibits, including the Indenture for the 2.50% Convertible Senior Notes due 2025 and CEO/CFO certifications - Key exhibits filed include the Indenture and form of Global Note for the 2.50% Convertible Senior Notes due 2025[501](index=501&type=chunk) - Certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are included as exhibits[501](index=501&type=chunk)

Health Catalyst, Inc. (NASDAQ:HCAT) Q1 2020 Earnings Conference Call May 12, 2020 8:30 AM ET Company Participants Adam Brown - SVP, IR Dan Burton - CEO Patrick Nelli - CFO Conference Call Participants Robert Jones - Goldman Sachs Anne Samuel - JPMorgan Ryan Daniels - William Blair Sean Wieland - Piper Sandler Mike Newshel - Evercore Stephanie Davis - SVB Leerink Sandy Draper - SunTrust Richard Close - Canaccord Genuity Sean Dodge - RBC Capital Markets Operator Ladies and gentlemen, thank you for standing by ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ FORM 10-Q ________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 Or (Address of principal executive offices, including zip code) (801) 708-6800 ☐ 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: 001-38993 ...

Health Catalyst, Inc. (NASDAQ:HCAT) Q4 2019 Earnings Conference Call February 27, 2020 5:00 PM ET Company Participants Adam Brown - SVP, IR Daniel Burton - CEO & Director Patrick Nelli - CFO Conference Call Participants Robert Jones - Goldman Sachs Group Anne Samuel - JPMorgan Chase & Co. Ryan Daniels - William Blair & Company Sean Wieland - Piper Sandler & Co. Michael Newshel - Evercore ISI Stanislav Berenshteyn - SunTrust Robinson Humphrey Operator Ladies and gentlemen, thank you for standing by, and welc ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2019 was $39.4 million, representing a 20% year-over-year increase [25] - Adjusted gross margin for Q3 2019 was 54%, up from 50% in Q3 2018 [7] - Adjusted EBITDA loss for Q3 2019 was $8.4 million, an improvement from a loss of $11.3 million in Q3 2018 [31] Business Line Data and Key Metrics Changes - Technology revenue was $21.2 million, a 16% increase year-over-year [25] - Professional services revenue was $18.3 million, a 25% increase year-over-year [25] - Adjusted gross margin for technology was 68%, an increase of approximately 190 basis points year-over-year [27] Market Data and Key Metrics Changes - The company reported that over 90% of its revenue is recurring, with greater than 100% dollar-based retention [44] - The healthcare analytics summit hosted over 1,600 professionals, achieving an overall satisfaction rating of greater than 99% [12] Company Strategy and Development Direction - The company is focused on enabling measurable improvements for customers while maintaining high satisfaction [8] - There is a strong emphasis on digital transformation within healthcare, with the company positioning itself as a partner to facilitate this transition [14] - The company plans to continue investing in core markets and new markets, including Life Sciences and international expansion [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the robustness of the sales pipeline moving into Q4 2019 and beyond [41] - The acquisition of Medicity is seen as a headwind, but management anticipates cross-sell opportunities to materialize in 2020 [43] - The company does not expect significant impacts from the political environment on its sales efforts [71] Other Important Information - The company appointed two new board members effective January 1, 2020, enhancing its leadership team [21][22] - The company ended Q3 2019 with $241.4 million in cash and short-term investments, compared to $33.2 million at the end of 2018 [34] Q&A Session Summary Question: How to think about headwinds and tailwinds looking into 2020? - Management highlighted investments in core and new markets as tailwinds, while the Medicity acquisition represents a revenue headwind [41][43] Question: How does the start of 2020 look regarding the sales pipeline? - Management feels good about the current pipeline supporting projections for Q4 and the full year 2019 [48] Question: Feedback from this year's summit compared to previous ones? - This year's summit had the highest attendance and provided significant feedback on the need for foundational analytics support [51][52] Question: Update on professional services gross margin and hiring? - Management reported progress in hiring and maintaining a sustainable pace for the professional services team [57] Question: Thoughts on the Google-related news and competition? - Management believes that cloud companies will play a significant role in the healthcare ecosystem, but the company focuses on higher-level healthcare-specific solutions [85]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ FORM 10-Q ________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (State or other jurisdiction of incorporation or organization) Delaware 45-3337483 (I.R.S. Employer Identification Number) For the quarterly period ended September 30, 2019 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period fr ...

Health Catalyst, Inc. (NASDAQ: HCAT) Q2 2019 Earnings Conference Call August 22, 2019 5:00 PM ET Company Participants Adam Brown - Senior Vice President of Investor Relations Dan Burton - Chief Executive Officer Patrick Nelli - Chief Financial Officer Conference Call Participants Jack Rogoff - Goldman Sachs Anne Samuel - J.P. Morgan Ryan Daniels - William Blair Sean Wieland - Piper Jaffray Susy Tibaldi - Evercore ISI Daniel Grosslight - SVB Leerink Sandy Draper - SunTrust Robinson Humphrey Operator Good day ...