Health Catalyst(US:HCAT)2021-05-06 22:32Revenue Performance - Total revenue for Q1 2021 was $55,846,000, representing a 24% increase from $45,116,000 in Q1 2020[22] - Total revenue for the three months ended March 31, 2021, was $55.8 million, an increase of $10.7 million, or 24%, compared to $45.1 million for the same period in 2020[213] - Total revenue for Q1 2021 was $55.8 million, up from $45.1 million in Q1 2020, representing a growth of 23.5%[167] - Technology revenue increased to $33,839,000 in Q1 2021, up 37% from $24,699,000 in Q1 2020[22] - Technology revenue was $33.8 million, representing 61% of total revenue, up from $24.7 million, or 55% of total revenue, in the prior year, reflecting a growth of 37%[214] - Professional services revenue increased to $22.0 million, or 39% of total revenue, compared to $20.4 million, or 45% of total revenue, in the previous year, marking an 8% growth[215] - Recurring technology revenue for Q1 2021 was $33.6 million, compared to $24.7 million in Q1 2020, reflecting a growth of approximately 36.9%[99] Financial Losses - Net loss for Q1 2021 was $28,370,000, compared to a net loss of $17,490,000 in Q1 2020, reflecting a 62% increase in losses[22] - The company incurred a net loss of $28.4 million for the three months ended March 31, 2021, compared to a net loss of $17.5 million for the same period in 2020, resulting in a net loss per share of $(0.65) for 2021[129] - Net losses increased to $(28.4) million in Q1 2021 from $(17.5) million in Q1 2020[167] - The company reported a loss from operations of $24.3 million, compared to a loss of $18.1 million in the prior year[212] Operating Expenses - Operating expenses totaled $52,825,000 in Q1 2021, a 35% increase from $39,153,000 in Q1 2020[22] - Operating expenses totaled $52.8 million, an increase of $13.7 million, or 35%, compared to $39.2 million in the same quarter of 2020[216] - Research and development expenses were $14.3 million, up from $13.1 million in the same quarter of 2020, reflecting a focus on innovation and new product development[216] Cash and Assets - Cash and cash equivalents as of March 31, 2021, were $132,627,000, up from $91,954,000 as of December 31, 2020[18] - Total assets decreased to $571,219,000 as of March 31, 2021, from $577,740,000 as of December 31, 2020[18] - Cash and cash equivalents at the end of the period increased to $132.6 million from $61.0 million[1] - As of March 31, 2021, total cash equivalents and short-term investments amounted to $259.185 million, with money market funds contributing $125.378 million[107] Liabilities and Equity - Total liabilities increased to $302,383,000 as of March 31, 2021, compared to $301,641,000 as of December 31, 2020[19] - Stockholders' equity decreased to $268,836,000 as of March 31, 2021, from $276,099,000 as of December 31, 2020[19] - The net carrying value of the liability component of the Notes as of March 31, 2021, was $171.9 million, after accounting for a principal of $230 million, unamortized debt discount of $53.6 million, and unamortized issuance costs of $4.6 million[124] Acquisitions - Health Catalyst acquired Able Health for a total consideration of $21.5 million, which included $15.2 million in cash and $3.3 million in common shares[88] - The acquisition of Healthfinch was completed for $50.5 million, consisting of $16.9 million in cash and $27.8 million in common shares[91] - Vitalware was acquired for $119.2 million, with $69.6 million in cash and $41.3 million in common shares[94] Revenue Recognition and Deferred Revenue - The company recognized revenue primarily from technology subscriptions and professional services, with a focus on cloud-based solutions[40] - Total deferred revenue as of March 31, 2021, was $52.8 million, up from $49.0 million as of December 31, 2020[50] - The company’s professional services revenue includes data and analytics services, with revenue recognized as the service is provided[45] Market and Strategic Insights - Over 90% of the company's revenue is recurring, indicating strong revenue predictability[169] - The company has seen increased usage of its data platform during the COVID-19 pandemic, shifting focus towards financial recovery and planning analytics[169] - The company anticipates that the pandemic will drive medium-to-long term growth in the adoption of data and analytics solutions in the healthcare industry[172] - The impact of COVID-19 has led to increased market volatility and potential declines in healthcare industry spending, affecting demand for technology and services[44] Stock-Based Compensation - Total stock-based compensation for the three months ended March 31, 2021, was $13.5 million, an increase from $8.7 million in the same period in 2020[137] - The company had $114.1 million of unrecognized stock-based compensation expense related to outstanding restricted stock units expected to be recognized over a remaining weighted-average period of 3.2 years[139] - The company had $10.3 million of unrecognized stock-based compensation expense related to outstanding PRSUs, expected to be recognized over a remaining weighted-average period of 1.0 year[141] Tax and Regulatory Matters - The estimated effective tax rate for the three months ended March 31, 2021, was (0.4)%, compared to 6.6% for the same period in 2020, primarily due to a full valuation allowance on net deferred tax assets[149] - The company evaluates uncertain tax positions regularly, with significant judgment required to assess potential outcomes[76]