TruBridge(TBRG) - 2024 Q2 - Quarterly Report

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$170.9 million in the same period of 2023[147]. - RCM revenues increased by $10.8 million, or 11$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$10.755 million, or 11%, to $107.146 million for the first six months of 2024 compared to$96.391 million in 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 shift towards Software as a Service (SaaS) license models increased from 12% of annual new acute care EHR installations in 2018 to 100% in 2023[141]. - The company plans to enhance its recurring revenue base to stabilize revenues and cash flows, focusing on customer retention and subscription demand[137]. - RCM revenues are expected to grow as the company cross-sells services to its existing EHR customer base and expands market share[135]. Financial Performance and Costs - Net loss for the first six months of 2024 was $7.6 million, a decrease of$7.8 million from the prior-year period[147]. - General and administrative expenses decreased by $0.2 million, or 1$4.8 million, or 14%, compared to the first six months of 2023, driven by stock compensation and the acquisition of Viewgol[175]. - 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]. Strategic Initiatives - The transition to a subscription-based recurring revenue model is a key component of the company's long-term growth strategy[127]. - Margin optimization efforts include organizational realignment and expanded use of offshore resources, with expectations of improved cost efficiencies[144]. - The company anticipates additional pressure on margins due to the integration of Viewgol, acquired in October 2023[145]. Market and Regulatory Environment - The healthcare IT sector is projected to continue receiving investment due to its potential to improve efficiency and meet regulatory requirements[139]. - The company faces risks related to significant legislative and regulatory uncertainty in the healthcare industry, which may impact operations[126]. Cash Flow and Debt Management - 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]. - As of June 30, 2024, the company had$181.5 million in principal amount of indebtedness outstanding under credit facilities[188]. - The company had cash and cash equivalents of $7.7 million as of June 30, 2024, compared to$3.8 million as of December 31, 2023[188]. - The company made a draw of $41.0 million on the revolving credit facility in connection with the Viewgol acquisition on October 16, 2023[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$2.1 million, or 8%, in the first six months of 2024 compared to the same period in 2023, driven by strong performance from Viewgol[203]. - EHR bookings increased by $2.5 million, or 34$3.1 million[204]. - As of June 30, 2024, the company had a twelve-month backlog of approximately $10 million in non-recurring system purchases and approximately$318 million in recurring payments under support and maintenance and RCM services[201].