Health Catalyst(US:HCAT)2021-03-01 02:10Financial Data and Key Metrics Changes - Q4 2020 total revenue was $53.3 million, representing a 22% year-over-year increase [24] - Adjusted EBITDA for Q4 2020 was a loss of $4.7 million, an improvement from a loss of $6.5 million in Q4 2019 [30] - Full-year 2020 total revenue was $188.8 million, also reflecting a 22% growth year-over-year [24] - Adjusted net loss per share in Q4 2020 was $0.16, compared to a loss of $0.68 for the full year [31][32] Business Line Data and Key Metrics Changes - Technology revenue for Q4 2020 was $32.3 million, a 43% increase year-over-year; excluding the Vitalware acquisition, it was $28.1 million, representing 24% growth [25] - Professional services revenue for Q4 2020 was $21 million, flat compared to the same period last year [26] - Full-year 2020 technology revenue was $110.5 million, a 32% year-over-year increase, while professional services revenue was $78.4 million, reflecting a 10% growth [26][27] Market Data and Key Metrics Changes - The overall usage of the data platform increased by over 50% since the onset of the COVID-19 pandemic [14] - Full-year 2020 technology dollar-based retention was robust, at the high end of historical performance, expected to continue in 2021 at 107% to 109% [14][36] - Professional services dollar-based retention was in the mid-90s percent for 2020, lower than the historical range of 107% to 109% [15] Company Strategy and Development Direction - The company aims to support healthcare organizations in managing through the pandemic while also focusing on long-term growth opportunities in data and analytics solutions [12][18] - There is an emphasis on cross-selling opportunities from recent acquisitions, including Vitalware and healthfinch, to enhance the existing customer base [50][94] - The company anticipates a return to pre-pandemic growth rates in net new DOS subscription additions, likely in the mid-teens for 2021 [18][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the healthcare provider ecosystem becoming better equipped to respond to ongoing pandemic challenges [13] - There is recognition of the need for robust data and analytics solutions, which may drive future growth as the industry adapts post-pandemic [18][102] - The company expects continued operational distractions related to COVID-19 and vaccine rollout throughout 2021, impacting sales and implementations [60][101] Other Important Information - The company appointed Dr. Tim Ferris as chair of the Board of Directors effective March 1, 2021 [20] - The Vitalware acquisition is expected to contribute low $20 million in revenue for 2021, impacting year-over-year growth rates in Q3 and Q4 [36] Q&A Session Summary Question: Clarification on mid-teens DOS adds in 2021 amidst market distractions - Management acknowledged the mixed dynamics affecting guidance, noting some health systems remain hesitant due to ongoing pandemic uncertainties, while others recognize the need for data solutions [46][47] Question: Upside from cross-sell opportunities - Management confirmed active efforts in cross-selling applications from recent acquisitions to existing customers, with modest contributions included in the 2021 forecast [49][50] Question: Investment priorities beyond integration efforts - Key investment areas include financial optimization and enhancing data analytics capabilities, particularly in response to pandemic-driven market needs [56][57] Question: Changes in professional services post-pandemic - Management noted a shift back to traditional improvement work, alongside increased focus on financial performance and automation in service delivery [75][76] Question: Plans for resuming face-to-face sales activities - Management is monitoring vaccination progress and is optimistic about resuming in-person activities as conditions improve [64] Question: Insights on the Able Health acquisition and competitive landscape - The acquisition enhances capabilities in population health and regulatory measure submissions, positioning the company competitively against larger firms [67][72]