Financial Data and Key Metrics Changes - Total revenue for Q1 2021 was $55.8 million, representing a 24% increase year-over-year [10][29] - Adjusted EBITDA for Q1 2021 was a loss of $0.8 million, an improvement from a loss of $6 million in Q1 2020 [10][34] - Adjusted gross margin for Q1 2021 was 54.3%, an increase of 540 basis points year-over-year [10][32] - Adjusted net loss per share in Q1 2021 was $0.06, with approximately 43.9 million shares used in the calculation [35] Business Line Data and Key Metrics Changes - Technology revenue for Q1 2021 was $33.8 million, reflecting a 37% growth year-over-year, driven by new client additions and higher fees from existing clients [10][30] - Professional services revenue for Q1 2021 was $22 million, representing an 8% growth year-over-year [31] - Adjusted technology gross margin for Q1 2021 was 69.1%, an increase of 40 basis points year-over-year [32] - Adjusted professional services gross margin for Q1 2021 was 31.5%, an increase of 660 basis points year-over-year [33] Market Data and Key Metrics Changes - The operating environment remains affected by the COVID-19 pandemic, with both headwinds and tailwinds impacting growth [23][24] - The company anticipates continued operational and financial strain in the provider end market due to the pandemic [24] - There is an expectation of a meaningful consolidation opportunity in the applications layer of the solution stack [26] Company Strategy and Development Direction - The company aims to enable clients to achieve measurable improvements while maintaining high satisfaction levels [12][20] - There is a focus on expanding existing client relationships and beginning new ones, with a strong emphasis on data and analytics solutions [23][25] - The company has over $265 million in cash and short-term investments available for acquisitions, indicating a proactive approach to growth through consolidation [26][131] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the pace of vaccine rollout and its potential to serve as a tailwind for the industry [25] - There is a recognition of the need for commercial-grade data and analytics solutions, which has been highlighted by the pandemic [25] - The company expects total revenue for the full year 2021 to be between $228.1 million and $231.1 million, reflecting a positive outlook [38][39] Other Important Information - The company achieved certification for information security by HITRUST, emphasizing its commitment to data protection [22] - Dr. Tim Ferris concluded his service on the Board, with Jack Kane appointed as the new Chair [27][28] Q&A Session Summary Question: Professional services mix improvement - Management noted an uptick in higher-margin professional services in Q1, with expectations for normalization in the remainder of the year [46][47] Question: Technology growth expectations - Management expects continued robust technology growth for 2021, similar to the previous year’s growth rate of approximately 30% [51] Question: Demand for value-based care - There has been an increase in discussions around population health and value-based care, indicating a shift back to these topics post-COVID [53][80] Question: Nonrecurring services impact - Nonrecurring services contributed approximately $1 million in Q1, but this is a small portion of overall services [69] Question: M&A pipeline and strategy - The company has a robust pipeline for acquisitions, focusing on the applications layer and aiming to strengthen its offerings in areas like population health [128][130]

Revenue Performance - Total revenue for Q1 2021 was $55,846,000, representing a 24% increase from $45,116,000 in Q1 2020[22] - Total revenue for the three months ended March 31, 2021, was $55.8 million, an increase of $10.7 million, or 24%, compared to $45.1 million for the same period in 2020[213] - Total revenue for Q1 2021 was $55.8 million, up from $45.1 million in Q1 2020, representing a growth of 23.5%[167] - Technology revenue increased to $33,839,000 in Q1 2021, up 37% from $24,699,000 in Q1 2020[22] - Technology revenue was $33.8 million, representing 61% of total revenue, up from $24.7 million, or 55% of total revenue, in the prior year, reflecting a growth of 37%[214] - Professional services revenue increased to $22.0 million, or 39% of total revenue, compared to $20.4 million, or 45% of total revenue, in the previous year, marking an 8% growth[215] - Recurring technology revenue for Q1 2021 was $33.6 million, compared to $24.7 million in Q1 2020, reflecting a growth of approximately 36.9%[99] Financial Losses - Net loss for Q1 2021 was $28,370,000, compared to a net loss of $17,490,000 in Q1 2020, reflecting a 62% increase in losses[22] - The company incurred a net loss of $28.4 million for the three months ended March 31, 2021, compared to a net loss of $17.5 million for the same period in 2020, resulting in a net loss per share of $(0.65) for 2021[129] - Net losses increased to $(28.4) million in Q1 2021 from $(17.5) million in Q1 2020[167] - The company reported a loss from operations of $24.3 million, compared to a loss of $18.1 million in the prior year[212] Operating Expenses - Operating expenses totaled $52,825,000 in Q1 2021, a 35% increase from $39,153,000 in Q1 2020[22] - Operating expenses totaled $52.8 million, an increase of $13.7 million, or 35%, compared to $39.2 million in the same quarter of 2020[216] - Research and development expenses were $14.3 million, up from $13.1 million in the same quarter of 2020, reflecting a focus on innovation and new product development[216] Cash and Assets - Cash and cash equivalents as of March 31, 2021, were $132,627,000, up from $91,954,000 as of December 31, 2020[18] - Total assets decreased to $571,219,000 as of March 31, 2021, from $577,740,000 as of December 31, 2020[18] - Cash and cash equivalents at the end of the period increased to $132.6 million from $61.0 million[1] - As of March 31, 2021, total cash equivalents and short-term investments amounted to $259.185 million, with money market funds contributing $125.378 million[107] Liabilities and Equity - Total liabilities increased to $302,383,000 as of March 31, 2021, compared to $301,641,000 as of December 31, 2020[19] - Stockholders' equity decreased to $268,836,000 as of March 31, 2021, from $276,099,000 as of December 31, 2020[19] - The net carrying value of the liability component of the Notes as of March 31, 2021, was $171.9 million, after accounting for a principal of $230 million, unamortized debt discount of $53.6 million, and unamortized issuance costs of $4.6 million[124] Acquisitions - Health Catalyst acquired Able Health for a total consideration of $21.5 million, which included $15.2 million in cash and $3.3 million in common shares[88] - The acquisition of Healthfinch was completed for $50.5 million, consisting of $16.9 million in cash and $27.8 million in common shares[91] - Vitalware was acquired for $119.2 million, with $69.6 million in cash and $41.3 million in common shares[94] Revenue Recognition and Deferred Revenue - The company recognized revenue primarily from technology subscriptions and professional services, with a focus on cloud-based solutions[40] - Total deferred revenue as of March 31, 2021, was $52.8 million, up from $49.0 million as of December 31, 2020[50] - The company’s professional services revenue includes data and analytics services, with revenue recognized as the service is provided[45] Market and Strategic Insights - Over 90% of the company's revenue is recurring, indicating strong revenue predictability[169] - The company has seen increased usage of its data platform during the COVID-19 pandemic, shifting focus towards financial recovery and planning analytics[169] - The company anticipates that the pandemic will drive medium-to-long term growth in the adoption of data and analytics solutions in the healthcare industry[172] - The impact of COVID-19 has led to increased market volatility and potential declines in healthcare industry spending, affecting demand for technology and services[44] Stock-Based Compensation - Total stock-based compensation for the three months ended March 31, 2021, was $13.5 million, an increase from $8.7 million in the same period in 2020[137] - The company had $114.1 million of unrecognized stock-based compensation expense related to outstanding restricted stock units expected to be recognized over a remaining weighted-average period of 3.2 years[139] - The company had $10.3 million of unrecognized stock-based compensation expense related to outstanding PRSUs, expected to be recognized over a remaining weighted-average period of 1.0 year[141] Tax and Regulatory Matters - The estimated effective tax rate for the three months ended March 31, 2021, was (0.4)%, compared to 6.6% for the same period in 2020, primarily due to a full valuation allowance on net deferred tax assets[149] - The company evaluates uncertain tax positions regularly, with significant judgment required to assess potential outcomes[76]

| --- | --- | --- | --- | --- | --- | --- | |-----------------------|-------|-------|---------------|-------|-------------|---------------| | | | | | | | | | HealthCatalyst | | | | | | | | | | | | | | | | | | | | | | | | Overview Presentation | | | | | | 1 4 5 . 2 2 4 | | | | | | | | | | | | | 6 6 2 . 3 5 7 | 8 2 7 | 4 5 . 1 3 3 | | | March 2021 | | | | | | 8 6 . 5 2 | Disclaimer This presentation and the accompanying oral presentation, if any, contain forward-looking statements. All statements other than s ...

Financial Data and Key Metrics Changes - Q4 2020 total revenue was $53.3 million, representing a 22% year-over-year increase [24] - Adjusted EBITDA for Q4 2020 was a loss of $4.7 million, an improvement from a loss of $6.5 million in Q4 2019 [30] - Full-year 2020 total revenue was $188.8 million, also reflecting a 22% growth year-over-year [24] - Adjusted net loss per share in Q4 2020 was $0.16, compared to a loss of $0.68 for the full year [31][32] Business Line Data and Key Metrics Changes - Technology revenue for Q4 2020 was $32.3 million, a 43% increase year-over-year; excluding the Vitalware acquisition, it was $28.1 million, representing 24% growth [25] - Professional services revenue for Q4 2020 was $21 million, flat compared to the same period last year [26] - Full-year 2020 technology revenue was $110.5 million, a 32% year-over-year increase, while professional services revenue was $78.4 million, reflecting a 10% growth [26][27] Market Data and Key Metrics Changes - The overall usage of the data platform increased by over 50% since the onset of the COVID-19 pandemic [14] - Full-year 2020 technology dollar-based retention was robust, at the high end of historical performance, expected to continue in 2021 at 107% to 109% [14][36] - Professional services dollar-based retention was in the mid-90s percent for 2020, lower than the historical range of 107% to 109% [15] Company Strategy and Development Direction - The company aims to support healthcare organizations in managing through the pandemic while also focusing on long-term growth opportunities in data and analytics solutions [12][18] - There is an emphasis on cross-selling opportunities from recent acquisitions, including Vitalware and healthfinch, to enhance the existing customer base [50][94] - The company anticipates a return to pre-pandemic growth rates in net new DOS subscription additions, likely in the mid-teens for 2021 [18][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the healthcare provider ecosystem becoming better equipped to respond to ongoing pandemic challenges [13] - There is recognition of the need for robust data and analytics solutions, which may drive future growth as the industry adapts post-pandemic [18][102] - The company expects continued operational distractions related to COVID-19 and vaccine rollout throughout 2021, impacting sales and implementations [60][101] Other Important Information - The company appointed Dr. Tim Ferris as chair of the Board of Directors effective March 1, 2021 [20] - The Vitalware acquisition is expected to contribute low $20 million in revenue for 2021, impacting year-over-year growth rates in Q3 and Q4 [36] Q&A Session Summary Question: Clarification on mid-teens DOS adds in 2021 amidst market distractions - Management acknowledged the mixed dynamics affecting guidance, noting some health systems remain hesitant due to ongoing pandemic uncertainties, while others recognize the need for data solutions [46][47] Question: Upside from cross-sell opportunities - Management confirmed active efforts in cross-selling applications from recent acquisitions to existing customers, with modest contributions included in the 2021 forecast [49][50] Question: Investment priorities beyond integration efforts - Key investment areas include financial optimization and enhancing data analytics capabilities, particularly in response to pandemic-driven market needs [56][57] Question: Changes in professional services post-pandemic - Management noted a shift back to traditional improvement work, alongside increased focus on financial performance and automation in service delivery [75][76] Question: Plans for resuming face-to-face sales activities - Management is monitoring vaccination progress and is optimistic about resuming in-person activities as conditions improve [64] Question: Insights on the Able Health acquisition and competitive landscape - The acquisition enhances capabilities in population health and regulatory measure submissions, positioning the company competitively against larger firms [67][72]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________ Form 10-K _______________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents For the transition period from _____ to _____ Commission File Number: 001-38993 HEALTH CATALYST, INC. (Exact name of registrant as specified in its ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2020 was $47.2 million, with $46.3 million excluding the one-month contribution from the Vitalware acquisition, representing an 18% year-over-year increase [9][45] - Total technology revenue for Q3 2020 was $28 million, or $27.2 million excluding Vitalware, reflecting a 28% growth compared to the same period last year [10][46] - Adjusted gross margin for Q3 2020 was 50.7%, an increase of approximately 170 basis points from Q2 2020, but a decrease of about 300 basis points year-over-year [11][48] - Adjusted EBITDA for Q3 2020 was a loss of $6.4 million, an improvement from a loss of $8.4 million in Q3 2019 [11][52] - Cash and cash equivalents at the end of Q3 2020 were $275 million, up from $228 million at the end of 2019 [54] Business Line Data and Key Metrics Changes - Professional services revenue for Q3 2020 was $19.2 million, representing a 5% growth year-over-year, driven by services provided to new customers and expanded services with existing customers [47] - Adjusted gross margin for professional services was 25.1%, a decrease of approximately 1150 basis points year-over-year [50] Market Data and Key Metrics Changes - The company noted a 40% increase in the usage of foundational analytics applications since the onset of the COVID-19 pandemic [21] - The recurring revenue model accounts for over 90% of total revenue, which has helped mitigate the near-term impact of COVID-19 on top-line performance [20] Company Strategy and Development Direction - The company is focused on leveraging the COVID-19 pandemic as a tailwind for the adoption of data and analytics in healthcare [26][110] - Recent acquisitions, including Vitalware, Healthfinch, and Able Health, are expected to enhance the company's product offerings and market reach [28][99] - The introduction of a new President role aims to oversee growth functions and drive international expansion [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the healthcare provider ecosystem's preparedness to respond to ongoing pandemic challenges [18] - The company anticipates a slower revenue growth rate of approximately 20% in 2021 due to the impact of COVID-19 on 2020 bookings [60][61] - Management emphasized the importance of data and analytics in the current environment, which is expected to drive future growth [84][110] Other Important Information - The company announced leadership promotions, including Patrick Nelli to President and Bryan Hunt to Chief Financial Officer, effective January 1, 2021 [30][36] - The company plans to continue investing in M&A opportunities, leveraging its strong cash position [97] Q&A Session Summary Question: Thoughts on 2021 new DOS adds and pipeline performance - Management noted that the second half of 2020 pipeline performance is similar to pre-COVID levels, but the impact of COVID-19 on new customer additions is still a concern [68][71] Question: International expansion opportunities - The company signed its first Middle East customer and is cautiously optimistic about future international growth, though it may take time to see material impacts [73][74] Question: Margins and revenue growth dynamics - Management expects technology revenue to grow faster than professional services revenue, which will positively impact overall gross margins [76][77] Question: Contribution from recent acquisitions - Vitalware contributed approximately $900,000 in Q3 and is expected to contribute around $4 million in Q4, with a projected $20 million impact in 2021 [78][99] Question: Professional services revenue outlook - Management indicated that professional services dollar-based net retention is expected to be lower than historical levels due to COVID-19, but technology revenue retention remains strong [104][105] Question: Role in vaccine distribution - The company anticipates providing analytics support for vaccine distribution, leveraging existing infrastructure [89]

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 ...