Health Catalyst(US:HCAT)2021-05-09 08:45Financial Data and Key Metrics Changes - Total revenue for Q1 2021 was $55.8 million, representing a 24% increase year-over-year [10][29] - Adjusted EBITDA for Q1 2021 was a loss of $0.8 million, an improvement from a loss of $6 million in Q1 2020 [10][34] - Adjusted gross margin for Q1 2021 was 54.3%, an increase of 540 basis points year-over-year [10][32] - Adjusted net loss per share in Q1 2021 was $0.06, with approximately 43.9 million shares used in the calculation [35] Business Line Data and Key Metrics Changes - Technology revenue for Q1 2021 was $33.8 million, reflecting a 37% growth year-over-year, driven by new client additions and higher fees from existing clients [10][30] - Professional services revenue for Q1 2021 was $22 million, representing an 8% growth year-over-year [31] - Adjusted technology gross margin for Q1 2021 was 69.1%, an increase of 40 basis points year-over-year [32] - Adjusted professional services gross margin for Q1 2021 was 31.5%, an increase of 660 basis points year-over-year [33] Market Data and Key Metrics Changes - The operating environment remains affected by the COVID-19 pandemic, with both headwinds and tailwinds impacting growth [23][24] - The company anticipates continued operational and financial strain in the provider end market due to the pandemic [24] - There is an expectation of a meaningful consolidation opportunity in the applications layer of the solution stack [26] Company Strategy and Development Direction - The company aims to enable clients to achieve measurable improvements while maintaining high satisfaction levels [12][20] - There is a focus on expanding existing client relationships and beginning new ones, with a strong emphasis on data and analytics solutions [23][25] - The company has over $265 million in cash and short-term investments available for acquisitions, indicating a proactive approach to growth through consolidation [26][131] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the pace of vaccine rollout and its potential to serve as a tailwind for the industry [25] - There is a recognition of the need for commercial-grade data and analytics solutions, which has been highlighted by the pandemic [25] - The company expects total revenue for the full year 2021 to be between $228.1 million and $231.1 million, reflecting a positive outlook [38][39] Other Important Information - The company achieved certification for information security by HITRUST, emphasizing its commitment to data protection [22] - Dr. Tim Ferris concluded his service on the Board, with Jack Kane appointed as the new Chair [27][28] Q&A Session Summary Question: Professional services mix improvement - Management noted an uptick in higher-margin professional services in Q1, with expectations for normalization in the remainder of the year [46][47] Question: Technology growth expectations - Management expects continued robust technology growth for 2021, similar to the previous year’s growth rate of approximately 30% [51] Question: Demand for value-based care - There has been an increase in discussions around population health and value-based care, indicating a shift back to these topics post-COVID [53][80] Question: Nonrecurring services impact - Nonrecurring services contributed approximately $1 million in Q1, but this is a small portion of overall services [69] Question: M&A pipeline and strategy - The company has a robust pipeline for acquisitions, focusing on the applications layer and aiming to strengthen its offerings in areas like population health [128][130]