CareCloud(US:CCLD)2025-05-06 20:30Financial Performance - For the three months ended March 31, 2025, net revenue was $27,632,000, an increase of 6.4% from $25,962,000 in the same period of 2024[161] - Adjusted EBITDA for the same period was $5,595,000, up 51.8% from $3,687,000 in 2024[161] - GAAP net income for Q1 2025 was $1,948,000 compared to a loss of $241,000 in Q1 2024[161] - The adjusted operating margin improved to 8.5% in Q1 2025 from 2.3% in Q1 2024[161] - Non-GAAP adjusted net income for Q1 2025 was $2,290,000, compared to $220,000 in Q1 2024[164] - The GAAP operating margin for Q1 2025 was 7.3%, significantly higher than 0.5% in Q1 2024[161] - Non-GAAP adjusted earnings per share for Q1 2025 was $0.05, compared to $0.01 in Q1 2024[164] - Net income for the three months ended March 31, 2025, was $1.96 million, compared to a net loss of $0.23 million in the same period of 2024[179] - The company recorded net income of $7.9 million for fiscal year 2024, a significant improvement from a net loss of $48.7 million in fiscal year 2023[195] Revenue Composition - Revenue for the three months ended March 31, 2025, was $27.6 million, an increase of $1.7 million or 6% from $25.9 million in the same period of 2024[180] - Technology-enabled business solutions accounted for approximately 64% of total revenue for the three months ended March 31, 2025[167] Expenses - Direct operating costs increased by $287,000 or 2% to $15.5 million for the three months ended March 31, 2025, compared to $15.2 million in 2024[182] - Selling and marketing expenses decreased by $639,000 or 36% to $1.1 million for the three months ended March 31, 2025[183] - General and administrative expenses increased by $611,000 or 16% to $4.3 million for the three months ended March 31, 2025[184] - Research and development expenses increased by $322,000 or 35% to $1.2 million for the three months ended March 31, 2025[185] Cash Flow and Capital Expenditures - As of March 31, 2025, the company had total cash of $6.8 million and net working capital of $11.7 million[194] - Net cash provided by operating activities increased to $5.1 million for the three months ended March 31, 2025, up 26% from $4.1 million in the same period of 2024[199] - Net cash used in investing activities decreased to $1.5 million in Q1 2025 from $1.9 million in Q1 2024, reflecting a 19% reduction[201] - Net cash used in financing activities increased to $1.9 million in Q1 2025, compared to $1.4 million in Q1 2024, representing a 41% increase[202] - Capital expenditures for Q1 2025 were $624,000, up from $298,000 in Q1 2024, primarily for computer equipment and leasehold improvements[201] - Software development costs capitalized were $846,000 in Q1 2025, down from $1.6 million in Q1 2024[201] Operational Insights - The company served approximately 40,000 providers as of March 31, 2025, maintaining the same level as in 2024[166] - The company has approximately 290 experienced health industry experts in the U.S. and a specialized offshore workforce of about 3,400[154] - Offshore operations in Pakistan and Sri Lanka accounted for approximately 17% and 15% of total expenses for Q1 2025 and 2024, respectively[156] Financial Strategy and Outlook - Management expects to continue enhancing liquidity and financial position over the next twelve months[196] - The company maintained a revolving line of credit with an unused borrowing base of $10 million as of March 31, 2025[198] - The company has been able to monitor and mitigate the impact of inflation through pricing strategies and productivity improvements[197] - The interest rate on the company's line of credit is based on the prime rate, which has shown slight fluctuations in 2023 and 2024[197]