Financial Performance - Net revenue for the year ended December 31, 2024, was $110.837 million, a decrease from $117.059 million in 2023, representing a decline of approximately 5.2%[256] - Adjusted EBITDA for 2024 was $24.057 million, significantly up from $15.429 million in 2023, indicating an increase of approximately 55.5%[256] - Adjusted operating income for 2024 was $11.455 million, compared to $5.967 million in 2023, reflecting an increase of approximately 91.5%[259] - The company reported a GAAP net income of $7.851 million for 2024, a substantial improvement from a net loss of $48.674 million in 2023[256] - Non-GAAP adjusted net income for 2024 was $10.520 million, compared to $4.801 million in 2023, marking an increase of approximately 119.1%[259] - The adjusted net income per share for 2024 was $0.65, up from $0.30 in 2023, representing an increase of approximately 116.7%[261] - The GAAP operating margin improved to 8.2% in 2024 from a negative 40.2% in 2023[259] - Operating income for 2024 was $9,121,000, compared to an operating loss of $47,115,000 in 2023[262] - Net income for 2024 was $7,851,000, a significant improvement from a net loss of $48,674,000 in 2023[262] - Net income per common share for 2024 was $(0.28), an improvement from $(4.11) in 2023[262] Expenses and Cost Management - Total operating expenses decreased to $101,716,000 in 2024 from $164,174,000 in 2023, reflecting a reduction of 38%[262] - Direct operating costs for 2024 were $60.8 million, a decrease of $10 million or 14% from $70.8 million in 2023[307] - Selling and marketing expenses decreased by $3.4 million or 35% to $6.2 million in 2024 from $9.7 million in 2023[308] - General and administrative expenses accounted for approximately 22% of total expenses in 2024, up from 17% in 2023, suggesting increased administrative overhead[279] - General and administrative expenses decreased by $5.3 million or 25% to $16.1 million in 2024 from $21.5 million in 2023[309] - Research and development expenses decreased by $955,000 or 20% to $3.8 million in 2024 from $4.7 million in 2023[310] - Total operating expenses for 2024 were $101.7 million, a decrease of $62.5 million or 38% from $164.2 million in 2023[307] Cash Flow and Financial Position - Cash balance increased to $5,145,000 in 2024 from $3,331,000 in 2023[263] - Positive cash flow from operations increased by $5.2 million or 34% to $20.6 million for the year ended December 31, 2024, compared to $15.5 million in 2023[323] - Cash used in investing activities decreased by $4.2 million to $7.4 million in 2024 from $11.6 million in 2023[330] - Cash used in financing activities decreased by $2 million to $11.3 million in 2024 compared to $13.3 million in 2023, including the full repayment of a $10 million credit line[331] Operational Metrics - The company served approximately 40,000 providers across about 2,600 practices as of December 31, 2024, maintaining a stable client base[270] - Customer renewal rates improved to 95% in 2024 from 91% in 2023, reflecting enhanced client retention[271] - Revenue from technology-enabled business solutions accounted for approximately 67% of total revenues in 2024, up from 65% in 2023[272] - Direct operating costs represented approximately 13% of total costs in 2024, compared to 11% in 2023, indicating a slight increase in operational efficiency[277] - The company expects to achieve further economies of scale as it grows, potentially reducing direct operating costs as a percentage of revenue[277] Impairment and Taxation - Goodwill impairment charges in 2023 amounted to $42,000,000, reflecting a significant write-down related to the Healthcare IT reporting unit[282] - The company recorded a goodwill impairment charge of $42 million in 2023, with no such charges in 2024[327] - The income tax provision for 2024 was $160,000, contrasting with a tax benefit of $364,000 in 2023[317] - Total federal NOL carry forward as of December 31, 2024, is approximately $265 million, with $187 million expiring between 2031 and 2038[322] - The company maintained a full valuation allowance on deferred tax assets until sufficient evidence supports the reversal of these allowances[321] Revenue Breakdown - Revenue from technology-enabled business solutions was $73.7 million in 2024, down from $76.6 million in 2023[304] - Professional services revenue decreased by $4.8 million in 2024 compared to 2023, primarily due to the winding down of services for two large accounts[305] - The company generated approximately 1% of its revenue from group purchasing services in both 2024 and 2023, indicating stable performance in this segment[276] - Offshore operations accounted for approximately 15% of total expenses in 2024, up from 9% in 2023, with personnel-related costs making up about 75% of these expenses[251]
CARECLOUD(CCLDO) - 2024 Q4 - Annual Report