Financial Performance - Total revenues for Q1 2025 increased by $3.1 million, or 4%, to $87.2 million compared to $84.1 million in Q1 2024[157][160]. - Net income for Q1 2025 was $0.5 million, or $0.03 per share, compared to a net loss of $1.9 million, or $0.13 per share, in Q1 2024, representing an improvement of $2.3 million[157][174]. - Financial Health segment revenues increased by $2.7 million, or 5%, to $56.1 million, driven by growth in core RCM services[162][177]. - Patient Care segment revenues increased by $0.4 million, or 1%, to $31.1 million, with recurring revenues decreasing by $1.8 million, or 6%[163][177]. - Adjusted EBITDA for Q1 2025 increased by $7.9 million, or 77%, to $18.2 million compared to $10.3 million in Q1 2024[177]. Cost Management - Total costs of revenue decreased by $2.2 million, or 5%, to $39.5 million, representing 45.3% of total revenues in Q1 2025, down from 49.6% in Q1 2024[159][164]. - Product development expenses decreased by $2.4 million, or 23%, compared to Q1 2024, primarily due to cost optimization initiatives[167]. - Sales and marketing costs decreased by $1.2 million, or 18%, compared to Q1 2024, driven by reduced employee travel and commissions[168]. Cash Flow and Financing - Cash and cash equivalents as of March 31, 2025, were $10.1 million, with remaining borrowing capacity under the revolving credit facility of $46.6 million[182]. - Net cash provided by operating activities increased by $7.8 million to $5.8 million in Q1 2025, compared to a net cash used of $2.0 million in Q1 2024[184]. - Net cash used in investing activities decreased by $18.6 million to $2.2 million for the three months ended March 31, 2025, compared to cash provided of $16.4 million for the same period in 2024[185]. - Financing activities resulted in a net cash use of $5.7 million for the three months ended March 31, 2025, compared to a net cash use of $14.1 million for the same period in 2024[186]. - As of March 31, 2025, the company had $55.5 million in principal amount outstanding under the term loan facility and $113.4 million under the revolving credit facility, with an average interest rate of 7.32%[187]. - The company had $168.9 million of outstanding borrowings under credit facilities as of March 31, 2025, with exposure to fluctuations in interest rates[198]. - A 100 basis point change in interest rates on borrowings would result in a change in interest expense of approximately $1.7 million annually[198]. Customer Retention and Growth - The retention rate for Patient Care customers was 94.9%, with the flagship TruBridge EHR product achieving a retention rate of 98.2%[141]. - SaaS license models constituted 100% of annual new Patient Care installations in 2022, a significant increase from 12% in 2018[149]. - The company aims to achieve long-term revenue growth by cross-selling Financial Health services into its existing Patient Care customer base[139]. Strategic Initiatives - The transition to a subscription-based recurring revenue model is a key focus, with an emphasis on maintaining and growing recurring revenues[142]. - Margin optimization efforts include the expanded use of offshore resources and automation, which have provided meaningful efficiencies[154]. - The company has implemented a reduction in force to align resources with business priorities and enhance customer satisfaction[152]. - The company is actively involved in shaping AI governance and controls to ensure safe implementation in healthcare delivery[144]. Backlog and Bookings - The twelve-month backlog as of March 31, 2025, included approximately $3.3 million in non-recurring system purchases and approximately $327.8 million in recurring payments, compared to $10.7 million and $320.7 million, respectively, as of March 31, 2024[190]. - Total bookings for the three months ended March 31, 2025, were $21.981 million, a decrease of 7% from $23.569 million in the same period of 2024[191]. - Financial Health bookings decreased by $1.6 million, or 11%, in Q1 2025 compared to Q1 2024, while Patient Care bookings remained relatively flat[192][193]. - Total bookings at the ACV methodology for Q1 2025 were $17.340 million, with Financial Health at $12.780 million and Patient Care at $4.560 million[195]. - The company will report bookings on an Annual Contract Value (ACV) basis starting January 2025, transitioning fully to ACV reporting in 2026[194].
TruBridge(TBRG) - 2025 Q1 - Quarterly Report