Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $79.4 million, representing a 6% year-over-year increase [26] - Adjusted EBITDA for Q1 2025 was $6.3 million, exceeding guidance [26] - Technology revenue for Q1 2025 was $51.5 million, reflecting a 10% year-over-year growth [27] - Professional services revenue for Q1 2025 was $27.9 million, a 1% increase compared to Q1 2024 [27] - Total adjusted gross margin was 49%, a decrease of approximately 210 basis points year-over-year [27] - Adjusted technology gross margin was 67%, a decrease of approximately 120 basis points year-over-year [27] - Adjusted professional services gross margin was 16%, a decrease of approximately 630 basis points year-over-year [27] Business Line Data and Key Metrics Changes - The technology segment showed strong performance with a 10% revenue growth year-over-year [27] - Professional services revenue growth was modest at 1% year-over-year [27] - The shift to the Ignite platform is expected to enhance profitability, with Ignite clients showing an 80/20 revenue mix favoring technology over services [52] Market Data and Key Metrics Changes - The company added 10 net new platform clients in Q1 2025, with two-thirds coming from existing app clients [6] - The average total ARR and non-recurring revenue per net new platform client was around the midpoint of $300,000 to $700,000 [6][23] - The company anticipates achieving approximately 40 net new platform clients for the full year 2025 [23] Company Strategy and Development Direction - The strategic shift to the Ignite platform is aimed at providing a more flexible, modular, and cost-effective solution compared to the legacy DOS model [8] - Ignite's lower entry price point is expected to accelerate sales cycles and enhance cross-selling opportunities [8] - The company is focusing on organic growth and capital allocation, with a recent $5 million share repurchase [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of Ignite in the face of macroeconomic challenges, including potential funding cuts [20] - The company expects to complete the majority of Ignite migrations by mid-2026, with two-thirds expected by the end of 2025 [11] - Management noted that the operating margins remain strong and stable, despite some uncertainties in the market [19] Other Important Information - The company ended Q1 2025 with $342 million in cash and short-term investments [30] - The face value of the term loan is $162 million, and the convertible notes were paid off in full on April 14, 2025 [30] - The company expects total revenue of approximately $80.5 million and adjusted EBITDA of approximately $8 million for Q2 2025 [31] Q&A Session Summary Question: Can you provide more color on the decision-making process with the modular strategy versus DOS? - The modularity and lower price point of Ignite allow for quicker decision-making and shorter sales cycles, making it easier to provide tangible value to clients [38][39] Question: Should we expect a different cadence in customer additions? - There may be a smoothing of customer additions throughout the year due to the flexibility of the offering, rather than being strictly aligned with budget seasons [44] Question: What is driving the higher weighting of tech versus services in Ignite? - The lower price point and specific use cases associated with Ignite lead to a higher technology-driven solution, requiring less service delivery compared to DOS [49][52] Question: How is the average starting ARR accounted for? - The $300,000 to $700,000 average applies to new net platform clients, with existing clients migrating to Ignite potentially reflecting a headwind in dollar-based retention metrics [57][59] Question: What is the expected timing for tech margins to improve? - An uplift in tech adjusted gross profit margins is expected in the second half of the year as the migration process progresses [80][81]

Health Catalyst Reports First Quarter 2025 Results SALT LAKE CITY, UT, May 7, 2025 — Health Catalyst, Inc. ("Health Catalyst," Nasdaq: HCAT), a leading provider of data and analytics technology and services to healthcare organizations, today reported financial results for the quarter ended March 31, 2025. "For the first quarter of 2025, I am pleased by our strong financial results, including total revenue of $79.4 million and Adjusted EBITDA of $6.3 million, with these results beating our quarterly guidance ...

Core Insights - Health Catalyst reported strong financial results for Q1 2025, with total revenue of $79.4 million, exceeding guidance, and Adjusted EBITDA of $6.3 million, reflecting an 86% increase year-over-year [2][38] - The company added 10 net new Platform Clients in Q1 2025, contributing to confidence in achieving the target of 40 net new Platform Client additions for the year [2][38] - The financial outlook for Q2 2025 includes expected total revenue of approximately $80.5 million and Adjusted EBITDA of around $8 million [4][38] Financial Performance - Total revenue for Q1 2025 was $79.4 million, a 6% increase from $74.7 million in Q1 2024 [3][38] - Gross profit decreased slightly to $28.7 million, with a gross margin of 36%, down from 39% in the previous year [3][38] - The net loss for the quarter was $23.7 million, compared to a net loss of $20.6 million in Q1 2024, indicating a 15% increase in losses [3][38] - Adjusted Gross Profit was $39.0 million, with an Adjusted Gross Margin of 49%, down from 51% year-over-year [3][38] Client Growth and Market Position - The addition of 10 net new Platform Clients in Q1 2025 is significant, especially as Q1 is typically a quieter period for bookings [2][38] - The company anticipates achieving approximately halfway to the target of 40 net new Platform Clients by the end of Q2 2025 [38] Future Guidance - For the full year 2025, total revenue is projected to be around $335 million, reflecting a 9% increase [4][38] - The technology business unit is expected to generate approximately $220 million in revenue, a 13% increase [4][38] - Adjusted EBITDA for the full year is forecasted to be approximately $41 million, representing a 57% increase [4][38] Operational Insights - Health Catalyst's Ignite platform continues to gain traction, with recent client wins highlighting its momentum in the market [38] - The company remains confident in its ability to drive profitability despite a dynamic macroeconomic environment, with expectations for improved stock-based compensation as a percentage of revenue by 2026 [38]

Core Insights - Health Catalyst has announced a strategic partnership with Microsoft to enhance operational, clinical, and financial performance in healthcare through AI-driven innovation [1][2] - The collaboration leverages Health Catalyst's expertise with Microsoft Azure and Azure AI Foundry to provide advanced AI solutions for healthcare organizations [2][4] - The partnership aims to transform data and analytics into actionable insights, driving sustainable performance improvements for healthcare providers [4][5] Company Overview - Health Catalyst is a leading provider of data and analytics technology and services, serving over 1,000 organizations globally [5] - The company offers a cloud-based technology ecosystem, Health Catalyst Ignite™, and AI-enabled data and analytics solutions to improve clinical, financial, and operational outcomes [5] - Health Catalyst has a proven track record of delivering billions of dollars in measurable results, emphasizing its commitment to data-informed healthcare improvement [5] Product Offerings - Healthcare.AI™ and Health Catalyst Ignite™ are currently available on the Azure Marketplace, with additional solutions to be introduced [3] - These offerings enable healthcare organizations to address challenges in data analytics, cybersecurity, financial, and operational improvements [3] Strategic Goals - The partnership is designed to help healthcare organizations achieve their goals for 2025 and beyond by moving from data analytics to reliable actions and sustained outcomes [4] - The collaboration combines machine intelligence with healthcare expertise to accelerate AI-driven outcomes and optimize decision-making [4]

Core Insights - Health Catalyst, Inc. will release its first quarter 2025 operating results on May 7, 2025, after market close [1] - A conference call will be held at 5:00 pm ET on the same day to review the results [1] Conference Call Details - The conference call can be accessed by dialing 800-343-5172 for U.S. participants or 203-518-9856 for international participants, referencing conference ID "HCATQ125" [2] - A live audio webcast will be available online and a replay will be accessible for approximately 90 days [2] Company Overview - Health Catalyst is a leading provider of data and analytics technology and services aimed at improving healthcare outcomes [3] - The company serves over 1,000 organizations globally, utilizing its cloud-based technology ecosystem, Health Catalyst Ignite™, and AI-enabled solutions [3] - Health Catalyst has a proven track record of delivering billions of dollars in measurable results, focusing on transforming complex healthcare data into actionable insights [3]

Core Insights - Health Catalyst, Inc. has launched Health Catalyst Ignite Spark™, a data and analytics solution specifically designed for community health systems, regional hospitals, and multi-site practices [1][2] - Ignite Spark aims to address the challenges faced by smaller community health systems, including shrinking margins and the need for efficient data management [2][3] - The solution is built to integrate with existing systems, providing enterprise-grade analytics while reducing IT burdens and costs [3][4] Company Overview - Health Catalyst is a leading provider of data and analytics technology and services, serving over 1,000 organizations globally [5] - The company focuses on transforming complex healthcare data into actionable insights, leveraging AI-driven solutions to enhance clinical, financial, and operational outcomes [5][6] - Health Catalyst has a proven track record of delivering billions of dollars in measurable results, emphasizing its commitment to improving healthcare through data-informed strategies [5]

Core Insights - Health Catalyst (NASDAQ: HCAT) is highlighted as a valuable addition to the Bio Boom Portfolio, indicating its potential for growth and investment opportunity [1]. Company Overview - The article emphasizes the author's long-term investment in Health Catalyst, suggesting confidence in the company's future performance [2]. - The author has a background in healthcare investment, focusing on innovative companies that develop breakthrough therapies and pharmaceuticals [1]. Investment Strategy - The investment strategy includes a focus on companies with catalysts for potential acquisitions, which may enhance their market value [1].

Group 1 - The stock of Health Catalyst, Inc. (HCAT) is experiencing significant attention due to high implied volatility in the options market, particularly the Apr 17, 2025 $12.50 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in Health Catalyst's stock price, potentially due to an upcoming event [2] - Health Catalyst currently holds a Zacks Rank 3 (Hold) in the Medical Info Systems industry, which is in the top 17% of the Zacks Industry Rank, with no analysts increasing their estimates for the current quarter and two revising them downwards [3] Group 2 - The recent high implied volatility for Health Catalyst may indicate a trading opportunity, as options traders often seek to sell premium on options with high implied volatility, hoping the stock does not move as much as expected by expiration [4]

SALT LAKE CITY, March 11, 2025 /PRNewswire/ -- Health Catalyst, Inc. ("Health Catalyst,"Nasdaq: HCAT), a leading provider of data and analytics technology and services to healthcare organizations, today announced it has repurchased shares of its common stock ("Common Stock") in an aggregate amount of approximately $5 million.These repurchased shares were acquired between March 3, 2025, and March 10, 2025, as part of Health Catalyst's existing share repurchase program approved by its board of directors on Au ...

Health Catalyst (HCAT) Q4 2024 Earnings Call February 27, 2025 06:40 AM ET Company Participants Jack Knight - VP - Investor RelationsDan Burton - CEODan Lesueur - COOJason Alger - Chief Financial OfficerJared Haase - Equity Research AssociateAnne Samuel - Executive DirectorSameer Patel - VP - Equity ResearchScott Schoenhaus - Managing DirectorGabrielle Ingoglia - Equity Research Associate Conference Call Participants Jessica Tassan - Senior Equity Research AnalystJohn Pinney - AnalystDaniel Grosslight - Sen ...