Health Catalyst(US:HCAT)2019-11-13 00:02Revenue Performance - Total revenue for Q3 2019 was $39.423 million, a 20% increase from $32.868 million in Q3 2018[21] - Technology revenue reached $21.160 million, up 16% from $18.283 million year-over-year[21] - Professional services revenue increased by 25% to $18.263 million compared to $14.585 million in the same quarter last year[21] - Total revenue for the three months ended September 30, 2019, was $39.423 million, a 20% increase from $32.87 million in the same period of 2018[169] - Revenue for the Technology segment was $21.16 million for the three months ended September 30, 2019, up from $18.28 million in the same period of 2018, representing a growth of 10.1%[169] - Revenue for the Professional Services segment increased to $18.26 million for the three months ended September 30, 2019, compared to $14.59 million in 2018, reflecting a growth of 25.5%[169] - Recurring technology revenue for the nine months ended September 30, 2019, was $61.393 million, up 67.2% from $36.701 million in 2018[102] Financial Position - Cash and cash equivalents increased to $52.059 million as of September 30, 2019, from $28.431 million at the end of 2018[17] - Total assets as of September 30, 2019, were $319.969 million, significantly up from $110.975 million at the end of 2018[17] - Current liabilities increased to $53.047 million as of September 30, 2019, compared to $41.806 million at the end of 2018[17] - Total stockholders' equity as of September 30, 2019, was $206,553,000, up from $206,553,000 as of June 30, 2019, reflecting stability in equity position[28] - As of September 30, 2019, the company had cash, cash equivalents, and short-term investments totaling $241.4 million[285] Losses and Expenses - The net loss for Q3 2019 was $21.416 million, compared to a net loss of $16.876 million in Q3 2018[21] - The company reported a net loss attributable to common stockholders of $39.586 million for Q3 2019, compared to $17.390 million in Q3 2018[21] - The company reported a net loss before income taxes of $21.40 million for the three months ended September 30, 2019, compared to a net loss of $16.87 million in the same period of 2018[169] - Stock-based compensation expense increased to $13,028,000 for the nine months ended September 30, 2019, compared to $2,887,000 for the same period in 2018, indicating increased investment in employee incentives[35] - Total stock-based compensation expense for the three months ended September 30, 2019, was $9.974 million, compared to $933,000 for the same period in 2018[141] Debt and Financing - The term loan balance as of September 30, 2019, was $50 million, with a remaining capacity of $25 million[112] - The OrbiMed debt financing agreement provided an $80.0 million senior term loan commitment, with $50.0 million available and up to an additional $30.0 million contingent upon achieving minimum technology revenues of $60.0 million[116] - The contractual interest rate for the OrbiMed term loan is the higher of LIBOR plus 7.5% or 10.0%, with monthly principal payments starting in February 2023[117] Shareholder Information - The company had a weighted-average share count of 28.223 million for calculating net loss per share in Q3 2019, compared to 4.686 million in Q3 2018[21] - The total number of common shares outstanding as of September 30, 2019, was 36,472,223, an increase from 4,732,780 shares as of September 30, 2018, indicating significant equity growth[32] - Health Catalyst had 45,427,441 shares of redeemable convertible preferred stock authorized, with 22,713,694 shares issued and outstanding as of December 31, 2018[121] - Upon the closing of the IPO, the redeemable convertible preferred stock was converted into 23,151,481 shares of common stock at an IPO price of $26.00 per share, totaling $602.7 million[124] Acquisitions and Investments - The acquisition of Medicity LLC was completed for consideration valued at $2.3 million in Series E redeemable convertible preferred stock, as part of a $15 million capital raise[96] - Total assets acquired from Medicity amounted to $15.222 million, with total liabilities assumed of $12.970 million, resulting in net assets acquired of $2.252 million[98] - Revenue from the acquired business of Medicity amounted to $12.5 million from June 29, 2018, to December 31, 2018[101] Revenue Recognition and Accounting - Health Catalyst's revenue recognition follows ASC Topic 606, with a focus on technology subscriptions and professional services, ensuring compliance with accounting standards[47] - The company reported a deferred revenue of $7,601,000 for the nine months ended September 30, 2019, compared to $7,415,000 for the same period in 2018, suggesting stable revenue recognition[35] - For the three months ended September 30, 2019, 48% of the revenue recognized was included in deferred revenue at the beginning of the period, compared to 36% in 2018[162] - For the nine months ended September 30, 2019, 18% of the revenue recognized was included in deferred revenue at the beginning of the period, up from 13% in 2018[162]