Health Catalyst(US:HCAT)2024-05-09 20:11Q1 2024 Financial and Operational Highlights Health Catalyst reported strong Q1 2024 financial results, exceeding guidance for revenue and Adjusted EBITDA, and reaffirmed full-year 2024 outlook - CEO Dan Burton highlighted the strong financial performance in Q1 2024, beating guidance for both revenue and Adjusted EBITDA, and reaffirmed the full-year 2024 outlook3 Q1 2024 Key Financial Metrics (vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | GAAP Measures | | | | | Total Revenue | $74.7M | $73.9M | 1% | | Gross Profit | $29.3M | $28.2M | 4% | | Gross Margin | 39% | 38% | +1 ppt | | Net Loss | $(20.6)M | $(33.2)M | 38% improvement | | Non-GAAP Measures | | | | | Adjusted Gross Profit | $38.3M | $38.4M | 0% | | Adjusted Gross Margin | 51% | 52% | -1 ppt | | Adjusted EBITDA | $3.4M | $4.2M | (19)% | Financial Outlook The company projects Q2 2024 revenue between $73.5M and $76.5M, with full-year revenue expected to range from $304.0M to $312.0M Q2 2024 Financial Guidance | Metric | Guidance Range | | :--- | :--- | | Total Revenue | $73.5M - $76.5M | | Adjusted EBITDA | $5.0M - $7.0M | Full Year 2024 Financial Guidance | Metric | Guidance Range | | :--- | :--- | | Total Revenue | $304.0M - $312.0M | | Adjusted EBITDA | $24.0M - $26.0M | Condensed Consolidated Financial Statements This section presents the unaudited condensed consolidated financial statements for Q1 2024, including Balance Sheets, Statements of Operations, and Cash Flows Condensed Consolidated Balance Sheets Total assets were $695.1 million as of March 31, 2024, with cash and cash equivalents significantly increasing to $201.4 million Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $201,370 | $106,276 | | Short-term investments | $126,415 | $211,452 | | Total current assets | $397,136 | $393,397 | | Total assets | $695,112 | $701,814 | | Total current liabilities | $92,208 | $89,034 | | Total liabilities | $337,902 | $334,895 | | Total stockholders' equity | $357,210 | $366,919 | Condensed Consolidated Statements of Operations Q1 2024 total revenue increased 1% to $74.7 million, with net loss significantly reduced to $20.6 million due to lower operating expenses Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Technology Revenue | $46,966 | $47,186 | | Professional Services Revenue | $27,757 | $26,682 | | Total Revenue | $74,723 | $73,868 | | Loss from operations | $(22,812) | $(34,914) | | Net loss | $(20,587) | $(33,190) | | Net loss per share | $(0.35) | $(0.60) | - General and administrative expenses decreased significantly from $23.8 million in Q1 2023 to $14.6 million in Q1 2024, largely due to $11.7 million in litigation costs in Q1 2023 that did not recur1518 Condensed Consolidated Statements of Cash Flows The company generated $10.3 million in cash from operating activities in Q1 2024, with cash and cash equivalents increasing to $201.4 million Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $10,266 | $(5,580) | | Net cash provided by investing activities | $83,984 | $22,649 | | Net cash provided by financing activities | $863 | $93 | | Net increase in cash and cash equivalents | $95,094 | $17,167 | | Cash and cash equivalents at end of period | $201,370 | $133,479 | Reconciliation of GAAP to Non-GAAP Financial Measures This section reconciles GAAP to non-GAAP financial measures, including Adjusted Gross Profit, Adjusted EBITDA, and Adjusted Net Income, for performance evaluation - The company uses non-GAAP measures to supplement its GAAP financial information, believing they provide consistency and comparability with past performance by excluding certain non-cash and non-recurring expenses2223 Adjusted Gross Profit and Adjusted Gross Margin Q1 2024 Adjusted Gross Profit was $38.3 million, with Adjusted Gross Margin slightly decreasing to 51% year-over-year Reconciliation of Gross Profit to Adjusted Gross Profit (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Gross profit (GAAP) | $29,321 | $28,158 | | Add: Depreciation and amortization | $6,885 | $7,406 | | Add: Stock-based compensation | $1,697 | $2,190 | | Add: Acquisition-related costs, net | $156 | $172 | | Add: Restructuring costs | $260 | $446 | | Adjusted Gross Profit (Non-GAAP) | $38,319 | $38,372 | Adjusted EBITDA Adjusted EBITDA for Q1 2024 was $3.4 million, a decrease from $4.2 million in Q1 2023, after adjusting for various non-recurring costs Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net loss (GAAP) | $(20,587) | $(33,190) | | Add: Interest and other (income) expense, net | $(2,338) | $(1,793) | | Add: Income tax provision | $113 | $69 | | Add: Depreciation and amortization | $10,525 | $10,994 | | Add: Stock-based compensation | $10,838 | $13,884 | | Add: Acquisition-related costs, net | $813 | $481 | | Add: Litigation costs | — | $11,664 | | Add: Restructuring costs | $1,813 | $2,055 | | Add: Non-recurring lease-related charges | $2,200 | — | | Adjusted EBITDA (Non-GAAP) | $3,377 | $4,164 | Adjusted Net Income and Adjusted Net Income Per Share Q1 2024 Adjusted Net Income was $2.7 million, with Adjusted Net Income per diluted share remaining constant at $0.05 year-over-year Reconciliation of Net Loss to Adjusted Net Income (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net loss (GAAP) | $(20,587) | $(33,190) | | Add: Stock-based compensation | $10,838 | $13,884 | | Add: Amortization of acquired intangibles | $7,251 | $7,780 | | Add: Restructuring costs | $1,813 | $2,055 | | Add: Acquisition-related costs, net | $813 | $481 | | Add: Litigation costs | — | $11,664 | | Add: Non-recurring lease-related charges | $2,200 | — | | Add: Non-cash interest expense | $379 | $377 | | Adjusted Net Income (Non-GAAP) | $2,707 | $3,051 | Adjusted Net Income Per Share | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Adjusted Net Income per share, basic | $0.05 | $0.05 | | Adjusted Net Income per share, diluted | $0.05 | $0.05 |