Core Insights - Health Catalyst reported strong financial results for Q1 2025, with total revenue of $79.4 million, exceeding guidance, and Adjusted EBITDA of $6.3 million, reflecting an 86% increase year-over-year [2][38] - The company added 10 net new Platform Clients in Q1 2025, contributing to confidence in achieving the target of 40 net new Platform Client additions for the year [2][38] - The financial outlook for Q2 2025 includes expected total revenue of approximately $80.5 million and Adjusted EBITDA of around $8 million [4][38] Financial Performance - Total revenue for Q1 2025 was $79.4 million, a 6% increase from $74.7 million in Q1 2024 [3][38] - Gross profit decreased slightly to $28.7 million, with a gross margin of 36%, down from 39% in the previous year [3][38] - The net loss for the quarter was $23.7 million, compared to a net loss of $20.6 million in Q1 2024, indicating a 15% increase in losses [3][38] - Adjusted Gross Profit was $39.0 million, with an Adjusted Gross Margin of 49%, down from 51% year-over-year [3][38] Client Growth and Market Position - The addition of 10 net new Platform Clients in Q1 2025 is significant, especially as Q1 is typically a quieter period for bookings [2][38] - The company anticipates achieving approximately halfway to the target of 40 net new Platform Clients by the end of Q2 2025 [38] Future Guidance - For the full year 2025, total revenue is projected to be around $335 million, reflecting a 9% increase [4][38] - The technology business unit is expected to generate approximately $220 million in revenue, a 13% increase [4][38] - Adjusted EBITDA for the full year is forecasted to be approximately $41 million, representing a 57% increase [4][38] Operational Insights - Health Catalyst's Ignite platform continues to gain traction, with recent client wins highlighting its momentum in the market [38] - The company remains confident in its ability to drive profitability despite a dynamic macroeconomic environment, with expectations for improved stock-based compensation as a percentage of revenue by 2026 [38]