Health Catalyst(US:HCAT)2022-11-08 23:17Revenue Performance - Total revenue for Q3 2022 was $68.354 million, a 10.5% increase from $61.737 million in Q3 2021[25] - Total revenue for the three months ended September 30, 2022, was $68.4 million, a 10.4% increase from $61.7 million in the same period of 2021[190] - For the nine months ended September 30, 2022, total revenue reached $207.1 million, up 16.9% from $177.2 million in 2021[190] - Recurring technology revenue for the nine months ended September 30, 2022, was $131.144 million, up 22.1% from $107.358 million in 2021[117] - The Technology segment generated $43.997 million in revenue for the three months ended September 30, 2022, compared to $38.262 million in 2021, reflecting a growth of 15.5%[181] - The Professional Services segment reported revenue of $24.357 million for the three months ended September 30, 2022, a slight increase from $23.475 million in 2021[181] Profitability and Losses - Net loss for Q3 2022 was $45.735 million, compared to a net loss of $40.014 million in Q3 2021, reflecting a 14.4% increase in losses[25] - The company reported a comprehensive loss of $46.175 million for Q3 2022, compared to a comprehensive loss of $40.056 million in Q3 2021[29] - For the nine months ended September 30, 2022, the net loss was $101.621 million, compared to a net loss of $104.218 million for the same period in 2021, representing a decrease of 2.6%[36] - Net losses for the three months ended September 30, 2022, were $(45.7) million, compared to $(40.0) million in the same period of 2021[190] - Adjusted EBITDA for the three months ended September 30, 2022, was $(4.6) million, an improvement from $(5.8) million in 2021[190] Assets and Liabilities - Total assets decreased to $776.200 million as of September 30, 2022, down from $832.096 million as of December 31, 2021[21] - Total liabilities increased to $336.234 million as of September 30, 2022, compared to $309.998 million as of December 31, 2021[21] - Cash and cash equivalents decreased to $124.224 million as of September 30, 2022, down from $193.227 million as of December 31, 2021[21] - Total stockholders' equity as of September 30, 2022, was $439.966 million, down from $549.206 million as of September 30, 2021, indicating a decline of 19.9%[34] Operating Expenses - Operating expenses for Q3 2022 totaled $77.735 million, an increase from $70.900 million in Q3 2021[25] - Cash flows from operating activities resulted in a net cash used of $20.449 million for the nine months ended September 30, 2022, compared to $13.348 million for the same period in 2021, reflecting an increase in cash outflow of 53.1%[36] - Advertising costs for the three months ended September 30, 2022, were $4.4 million, compared to $2.3 million for the same period in 2021[77] Stock and Compensation - The weighted-average shares outstanding for calculating net loss per share, basic, was 54.304 million in Q3 2022, compared to 48.999 million in Q3 2021[25] - Total stock-based compensation for the three months ended September 30, 2022, was $17,304,000, slightly down from $17,487,000 in the same period of 2021[154] - The total stock-based compensation expense for the nine months ended September 30, 2022, was $53,356,000, compared to $48,724,000 for the same period in 2021[154] - The company had $114.4 million of unrecognized stock-based compensation expense related to outstanding RSUs expected to be recognized over a weighted-average period of 2.6 years[156] Acquisitions - Health Catalyst acquired ARMUS Corporation for a total consideration of $9.4 million, consisting of $9.3 million in cash and $0.1 million in common shares[98] - Health Catalyst acquired KPI Ninja, Inc. for a total consideration of $21.4 million, which included $18.5 million in cash and $2.9 million in common shares[105] - The acquisition of Twistle, Inc. was completed for $91.9 million, including $46.7 million in cash and $43.1 million in common shares, resulting in goodwill of $62.15 million[113] Financial Instruments and Equity - The fair value of convertible senior notes, with an aggregate principal of $230.0 million, was estimated at $196.0 million as of September 30, 2022[127] - The company recorded a net increase to the convertible senior notes balance of $44.0 million due to the reclassification of the conversion premium from equity to debt following the adoption of the new standard[93] - The company has authorized up to 25,000,000 shares of preferred stock, but none were issued or outstanding as of September 30, 2022[144] Future Expectations - The company expects to recognize $105.0 million of revenue on unsatisfied performance obligations as of September 30, 2022, with approximately 70% expected to be recognized over the next 24 months[177] - The company anticipates additional restructuring costs of at least $2.0 million in the fourth quarter of 2022 as part of its ongoing restructuring initiatives[185] - The company expects Adjusted Technology Gross Margin to fluctuate and potentially decline in the near term due to ongoing customer transitions to third-party hosted data centers[214]