Ontrak(OTRK) - 2024 Q1 - Quarterly Results

Ontrak Health Q1 2024 Earnings Release Ontrak Health reports Q1 2024 financial results, operational achievements, and future outlook Management Commentary Management highlights new Medicaid customer approval and strong value proposition with improved patient health and reduced medical costs - Ontrak has been approved by the Florida AHCA as a subcontractor for Community Care Plan, a South Florida-based Health Plan, to serve its adult Medicaid population[3] - The company reports strong value and ROI metrics, including an NPS score of 77, 41%-64% improvement in GAD-7 and PHQ-9 scores, a 43% reduction in medical costs, and a 62% reduction in inpatient admissions[3] Financial Performance Q1 2024 revenue increased 6% to $2.7 million, with significant improvements in operating and adjusted EBITDA losses Q1 2024 Financial Highlights Key financial metrics for Q1 2024 show revenue growth and improved profitability compared to the prior year Q1 2024 Key Financial Metrics vs. Q1 2023 (in millions) | Metric | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $2.7 million | $2.5 million | +6% | | Operating Loss | $(4.3) million | $(7.2) million | 41% improvement | | Adjusted EBITDA | $(3.4) million | $(5.4) million | 38% improvement | | Net Loss | $(4.5) million | $(8.4) million | 47% improvement | | Diluted Net Loss per Share | $(0.11) | $(2.26) | 95% improvement | Financial Outlook The company provides revenue projections for the upcoming second quarter of 2024 - For the second quarter ending June 30, 2024, the company projects revenue to be in the range of $2.4 million to $2.8 million[10] Operational Highlights & Corporate Developments Operational achievements include a new Medicaid customer, expanded outreach pool, and significant financing and partnership developments - Total enrolled members in the WholeHealth+ program were 1,521 at the end of Q1 2024, compared to 1,758 at the end of Q4 2023 and 1,526 at the end of Q1 2023[10] - The company's effective outreach pool grew significantly to 5,057 at March 31, 2024, from 2,161 at December 31, 2023[10] - Amended its financing agreement with Acuitas Capital, issuing $3.0 million in senior secured convertible promissory notes and securing the option for up to an additional $12.0 million[10] - Expanded its partnership with a major health system customer, increasing the number of eligible members for the Ontrak WholeHealth+ program by more than 6.5 times[10] Financial Statements Consolidated financial statements for Q1 2024 detail net loss, balance sheet positions, and cash flow activities Consolidated Statements of Operations The income statement provides a detailed breakdown of revenues, expenses, and net loss for Q1 2024 Q1 2024 Income Statement Summary (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $2,680 | $2,529 | | Gross Profit | $1,705 | $1,682 | | Total Operating Expenses | $5,978 | $8,909 | | Operating Loss | $(4,273) | $(7,227) | | Net Loss | $(4,458) | $(8,350) | Consolidated Balance Sheets The balance sheet presents the company's financial position, including assets, liabilities, and equity, as of March 31, 2024 Balance Sheet Summary (in thousands) | Line Item | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash | $6,400 | $9,701 | | Total Assets | $26,723 | $19,846 | | Total Liabilities | $5,476 | $5,575 | | Total Stockholders' Equity | $21,247 | $14,271 | Consolidated Statements of Cash Flows The cash flow statement details cash movements from operating, investing, and financing activities for Q1 2024 Cash Flow Summary for Q1 2024 (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(3,259) | $(4,953) | | Net cash used in investing activities | $(37) | $(25) | | Net cash (used in) provided by financing activities | $(5) | $7,339 | | Net change in cash | $(3,301) | $2,361 | Non-GAAP Financial Measures & Reconciliation Non-GAAP measures, including Adjusted EBITDA and Non-GAAP net loss, provide insights into core business performance by excluding specific items Reconciliation of Operating Loss to EBITDA and Adjusted EBITDA This section reconciles operating loss to EBITDA and Adjusted EBITDA, highlighting key adjustments for Q1 2024 Reconciliation to Adjusted EBITDA (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Operating loss | $(4,273) | $(7,227) | | EBITDA | $(4,014) | $(6,541) | | Adjustments (Stock Comp, Restructuring) | $642 | $1,108 | | Adjusted EBITDA | $(3,372) | $(5,433) | Reconciliation of Net Loss to Non-GAAP Net Loss This section reconciles net loss to Non-GAAP net loss, including per share data, for Q1 2024 Reconciliation to Non-GAAP Net Loss (in thousands, except per share data) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net loss | $(4,458) | $(8,350) | | Adjustments (Stock Comp, Restructuring, etc.) | $644 | $656 | | Non-GAAP net loss | $(3,714) | $(7,694) | | Non-GAAP net loss per share | $(0.10) | $(2.12) |