Health Catalyst(US:HCAT)2022-03-02 07:30Financial Data and Key Metrics Changes - For the full year 2021, total revenue was $241.9 million, representing a 28% year-over-year growth, outperforming guidance by over $12 million [8][40] - Adjusted EBITDA for the full year 2021 was a loss of $11.2 million, an improvement of $10 million compared to 2020, and also outperforming guidance by over $6 million [9][49] - In Q4 2021, total revenue was $64.7 million, with adjusted EBITDA at a loss of $6.3 million, both metrics beating the midpoint of quarterly guidance [10][48] Business Line Data and Key Metrics Changes - Technology revenue for Q4 2021 was $40.1 million, a 24% year-over-year growth, driven by recurring revenue from new customer additions and the Twistle acquisition [41] - Professional services revenue for Q4 2021 was $24.6 million, representing a 17% growth year-over-year, primarily due to services provided to new DOS subscription customers [42] Market Data and Key Metrics Changes - The dollar-based retention rate for 2021 was 112%, significantly higher than previous years, indicating strong customer retention and growth [22][78] - The company anticipates achieving a dollar-based retention rate between 108% and 111% for 2022, reflecting confidence in customer relationships and growth potential [31][102] Company Strategy and Development Direction - The company focuses on three strategic objectives: improvement, growth, and scale, with a strong emphasis on customer satisfaction and team member engagement [12][18] - The recent acquisition of KPI Ninja is expected to enhance the company's data processing capabilities and accelerate product development [34][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing challenges posed by the COVID-19 pandemic but sees potential tailwinds in the healthcare provider ecosystem's preparedness and demand for data analytics solutions [28][30] - The company expects continued growth in 2022, driven by existing customer expansions and new customer acquisitions, particularly in enterprise analytics and population health [32][56] Other Important Information - The company ended Q4 2021 with $445 million in cash and short-term investments, a significant increase from $271 million at the end of 2020 [51] - For Q1 2022, the company expects total revenue between $64 million and $67 million, with adjusted EBITDA losses between $2.5 million and $0.5 million [52] Q&A Session Summary Question: Details on net new client additions - Most net new DOS subscription clients came from the core market, with some contributions from adjacent markets [66][67] Question: Demand for solutions addressing provider burnout - There is increasing demand for technology-enabled services that reduce manual labor and improve employee satisfaction [68][70] Question: Milestone-based contracts and customer flexibility - Most contracts remain recurring revenue-based, but milestone-based contracts do occur occasionally [74][75] Question: Insights on dollar-based retention rate - The company is optimistic about maintaining a high retention rate but acknowledges some one-time factors influencing 2021 performance [81][84] Question: EBITDA cadence and future profitability - The core business is expected to achieve adjusted EBITDA breakeven for Q1 and the full year 2022, with some seasonality in expenses [88][90]