Health Catalyst(US:HCAT)2023-05-10 01:18Revenue Performance - Total revenue for Q1 2023 was $73.868 million, an increase of 8.2% compared to $68.087 million in Q1 2022[25] - Technology revenue reached $47.186 million, up from $42.230 million in the same period last year, reflecting a growth of 11.5%[25] - Recurring technology revenue for Q1 2023 was $46.928 million, up from $41.750 million in Q1 2022, representing a 12.5% growth[99] - Technology segment revenue was $47.186 million, up from $42.230 million, while Professional Services segment revenue increased to $26.682 million from $25.857 million[161] - Over 90% of the company's revenue is recurring in nature, providing a high level of revenue predictability[174] Financial Losses - Net loss for Q1 2023 was $33.190 million, compared to a net loss of $22.458 million in Q1 2022, representing a 47.8% increase in losses[25] - The company reported a comprehensive loss of $32.837 million for Q1 2023, compared to a comprehensive loss of $22.654 million in Q1 2022[27] - The net loss for the three months ended March 31, 2023, was $33.19 million, resulting in a basic net loss per share of $0.60, compared to a net loss of $22.46 million and a basic net loss per share of $0.42 for the same period in 2022[128] - Net losses increased to $33.2 million for the three months ended March 31, 2023, compared to $22.5 million in the same period of 2022[39] Operating Expenses - Operating expenses for Q1 2023 totaled $70.478 million, a significant increase of 20.6% from $58.438 million in Q1 2022[25] - General and administrative expenses surged to $23,833,000 in Q1 2023, significantly higher than $8,823,000 in Q1 2022, reflecting a 169.5% increase[218] - The cost of revenue, excluding depreciation and amortization, was $38,304,000 in Q1 2023, compared to $33,996,000 in Q1 2022, an increase of 12.8%[218] - Restructuring costs amounted to $2,055,000 in Q1 2023, with no comparable costs reported in Q1 2022[219] - Litigation costs were recorded at $11,664,000 in Q1 2023, with no costs reported in Q1 2022[220] Assets and Liabilities - Total current assets increased to $434.517 million as of March 31, 2023, compared to $427.795 million as of December 31, 2022[22] - Total liabilities rose to $347.155 million as of March 31, 2023, up from $327.276 million at the end of 2022, indicating a 6.5% increase[22] - Cash and cash equivalents at the end of Q1 2023 were $133.479 million, an increase from $116.312 million at the end of 2022[22] - Total accrued liabilities increased to $23.95 million as of March 31, 2023, compared to $19.69 million as of December 31, 2022[111] Stock and Compensation - The weighted-average shares outstanding for basic net loss per share increased to 55.485 million in Q1 2023 from 53.007 million in Q1 2022[25] - Stock-based compensation expense totaled $13,884,000 in Q1 2023, down from $18,120,000 in Q1 2022, a decrease of 23.8%[218] - As of March 31, 2023, there were 4,735,320 restricted stock units (RSUs) outstanding, an increase from 4,184,519 RSUs as of March 31, 2022[130] - The total grant date fair value of RSUs vested during the three months ended March 31, 2023, was $11.7 million, compared to $11.4 million for the same period in 2022[137] Acquisitions and Investments - The acquisition of ARMUS Corporation on April 29, 2022, involved a total consideration of $9.4 million, including $9.3 million in cash and $0.1 million in common shares[91] - The acquisition of KPI Ninja was completed for $21.4 million, consisting of $18.5 million in cash and $2.9 million in common shares, resulting in total goodwill of $10.365 million[95][97] - The company issued 356,919 shares as part of the KPI Ninja acquisition, with vesting subject to continuous service and 25% vesting every six months[146] Future Outlook and Challenges - The company anticipates that macroeconomic challenges, including high inflation and interest rates, will continue to impact operations and the healthcare system in the near term[170] - The company expects a higher proportion of gross bookings to come from existing clients, driven by upsells and a focus on long-term partnerships[173] - The company anticipates that professional services revenue growth will slightly outpace technology revenue growth for the full year 2023[206] - The company faces challenges from a high inflation and interest rate environment, which may adversely affect client demand and financial performance[198]