Ontrak(OTRK) - 2024 Q2 - Quarterly Results

Financial Performance - Q2 2024 revenue was $2.5 million, a 17% decrease year over year[3] - Revenue for Q2 2024 was $2,451,000, a decrease of 17.2% compared to $2,960,000 in Q2 2023[17] - Gross profit for Q2 2024 was $1,607,000, down 25.4% from $2,156,000 in Q2 2023[17] - Operating loss for Q2 2024 was $(4,047,000), compared to $(4,628,000) in Q2 2023, representing a 12.5% improvement[17] - Adjusted EBITDA for Q2 2024 was $(3.3) million, an 8% decline year over year[5] - Adjusted EBITDA for Q2 2024 was $(3,332,000), compared to $(3,090,000) in Q2 2023, indicating a decline of 7.8%[22] - Net loss attributable to common stockholders for Q2 2024 was $(12,527,000), compared to $(8,994,000) in Q2 2023, an increase of 39.5%[17] - Net loss for the three months ended June 30, 2024, was $10.289 million, compared to a loss of $6.756 million for the same period in 2023, representing an increase of 52.5%[23] - Non-GAAP net loss attributable to common stockholders for the six months ended June 30, 2024, was $12.223 million, down from $18.042 million in the same period of 2023, showing a 32.5% improvement[23] - Net loss per common share for the three months ended June 30, 2024, was $(0.19), compared to $(1.84) for the same period in 2023, indicating a significant reduction in losses[23] - Non-GAAP net loss per common share for the three months ended June 30, 2024, was $(0.09), compared to $(1.66) in the same period of 2023, reflecting a 94.2% improvement[23] Cash and Assets - Cash and restricted cash at the end of Q2 2024 was $7,292,000, down from $10,094,000 at the end of Q2 2023[20] - Total assets increased to $25,275,000 as of June 30, 2024, compared to $19,846,000 at the end of 2023[19] - Total liabilities rose to $9,862,000 as of June 30, 2024, up from $5,575,000 at the end of 2023[19] Membership and Outreach - Total enrolled members in the WholeHealth+ program increased to 1,752 at the end of Q2 2024, up from 1,521 at the end of Q1 2024[6] - The total callable outreach pool for WholeHealth+ was 7,511 at June 30, 2024, compared to 5,057 at March 31, 2024[6] - A new contract with a large northeast regional health plan is expected to double the outreach pool for the WholeHealth+ solution[2] - The company achieved $721 per member per month cost savings for a Medicaid health plan's members through the WholeHealth+ program[6] Technology and Innovation - The company launched the Mental Health Digital Twin technology to provide personalized insights and recommendations[6] - The company adopted the Comprehensive Healthcare Integration framework to enhance its care delivery model[6] Future Projections - The estimated revenue for the quarter ending September 30, 2024, is projected to be between $2.4 million and $2.8 million[7] Expenses and Costs - Research and development expenses for Q2 2024 were $1,026,000, down 33.1% from $1,537,000 in Q2 2023[17] - Stock-based compensation expense for the three months ended June 30, 2024, was $442,000, down from $892,000 in the same period of 2023, showing a decrease of 50.5%[23] - Debt issuance costs expensed related to Demand Notes for the three months ended June 30, 2024, amounted to $3.262 million, with no comparable expense in the same period of 2023[23] - Restructuring, severance, and related costs for the six months ended June 30, 2024, totaled $290,000, compared to $457,000 in the same period of 2023, indicating a reduction in restructuring costs[23] - Gain on termination of operating lease for the six months ended June 30, 2024, was $(471,000), reflecting a loss compared to no gain in the same period of 2023[23]