Streamline Health(STRM) - 2025 Q3 - Quarterly Results

Financial Performance - Net loss for Q3 fiscal 2024 was ($2.5 million), a significant improvement from a net loss of ($11.9 million) in Q3 fiscal 2023[6]. - Total revenue for Q3 fiscal 2024 was $4.4 million, down from $6.1 million in Q3 fiscal 2023, attributed to client non-renewals offset by new SaaS contracts[4]. - SaaS revenue for Q3 fiscal 2024 was $2.9 million, representing 66% of total revenue, compared to $3.9 million (64%) in Q3 fiscal 2023[5]. - Adjusted EBITDA for Q3 fiscal 2024 was a loss of ($0.3 million), compared to a gain of $0.4 million in Q3 fiscal 2023[8]. - Total revenues for the three months ended October 31, 2024, were $4,419,000, a decrease of 28% compared to $6,133,000 for the same period in 2023[21]. - Net loss for the nine months ended October 31, 2024, was $8,018,000, compared to a net loss of $17,327,000 for the same period in 2023, representing a 54% improvement[23]. - For the three months ended October 31, 2024, the net loss was $2,476,000, compared to a net loss of $11,911,000 for the same period in 2023, representing an improvement of 79%[24]. - The company’s total adjusted EBITDA for the nine months ended October 31, 2024, was $(1,331,000), an improvement from $(1,817,000) in the same period last year[24]. Cash and Liquidity - Cash and cash equivalents as of October 31, 2024, were $0.8 million, a decrease from $3.2 million as of January 31, 2024[7]. - Cash and cash equivalents decreased to $754,000 as of October 31, 2024, down from $3,190,000 at the beginning of the period[22]. - The Company had no outstanding balance on its revolving credit facility as of October 31, 2024, compared to $1.5 million as of January 31, 2024[7]. Operating Expenses and Cost Management - The strategic restructuring at the end of fiscal 2023 resulted in reductions in cost of sales, SG&A, and R&D expenses of $1.9 million and $5.3 million, respectively[6]. - Total operating expenses for the nine months ended October 31, 2024, were $19,670,000, down from $35,776,000 for the same period in 2023, a reduction of 45%[21]. - The company incurred $1,134,000 in research and development expenses for the three months ended October 31, 2024, compared to $1,304,000 for the same period in 2023[21]. - The company incurred interest expenses of $496,000 for the three months ended October 31, 2024, compared to $266,000 in the prior year, reflecting an increase of 86%[24]. - Depreciation and amortization expenses were $1,187,000 for the three months ended October 31, 2024, slightly up from $1,105,000 in the same period last year[24]. - The company reported acquisition-related costs of $16,000 for the three months ended October 31, 2024, down from $213,000 in the same period last year[24]. - Restructuring charges amounted to $749,000 for the three months ended October 31, 2023, with no charges reported in the current period[24]. Revenue and Contract Value - Total Booked SaaS Annual Contract Value (ACV) as of October 31, 2024, was $14.1 million, down from $15.0 million as of January 31, 2024[9]. - The Company expects to achieve an adjusted EBITDA breakeven run rate of $15.5 million in implemented SaaS ARR by the first half of fiscal 2025[11]. Balance Sheet and Equity - The company has a total stockholders' equity of $13,914,000 as of October 31, 2024, down from $18,814,000 as of January 31, 2024[22]. - Total liabilities as of October 31, 2024, were $22,052,000, a slight decrease from $22,921,000 as of January 31, 2024[22]. - Accounts receivable decreased to $2,824,000 as of October 31, 2024, from $4,237,000 as of January 31, 2024[22]. Goodwill and Impairment - The impairment of goodwill was recorded at $9,813,000 for the nine months ended October 31, 2023, with no impairment recorded in the current period[24].