Ontrak(US:OTRK)2023-03-15 22:42Financial Data and Key Metrics Changes - In Q4 2022, the company recorded revenue of $2.5 million, representing a 76% year-over-year decrease primarily due to the loss of two large customers [36] - The gross margin for Q4 was 61.2%, an increase from 49.5% in Q3 2022 and from 60.4% in Q4 2021 [38] - Cash flow from operations was negative $1.4 million in Q4, an improvement from negative $15 million in the same quarter last year [39] Business Line Data and Key Metrics Changes - The company ended Q4 with 1,333 enrolled members, down from 1,365 at the beginning of the quarter, resulting in a net enrollment decrease of 32 members [36] - The average monthly disenrollment rate increased to 11% in Q4 compared to 8% in Q3 2022 [37] - The company graduated 356 enrolled members during the quarter, equating to about 26% of the enrolled members at the beginning of the quarter [31] Market Data and Key Metrics Changes - The average revenue per health plan enrolled member per month was approximately $552 for Q4, down from $506 in Q4 2021 and $515 in Q3 2022 [30] - The enrollment rate for Q4 annualized to 66%, compared to 51% in Q4 2021 and 53% in Q3 2022 [37] Company Strategy and Development Direction - The company is enhancing its go-to-market strategy by segmenting its product portfolio to provide tailored solutions based on customer needs [21][34] - New product offerings include Ontrak Identify, Ontrak Outreach, Ontrak Engage, and Ontrak Access, aimed at expanding the member population served from 2%-4% to approximately 20%-30% [27][34] - The company is focused on improving health outcomes and reducing emergency room and inpatient utilization through AI-enabled program enhancements [18][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's mission and the dedication of employees to improve health outcomes for members [7][28] - The company anticipates a cash burn rate of approximately $1.5 million per month with the current customer base and provided revenue guidance of $12 million to $14 million for the year [40] Other Important Information - The company completed an amendment of its Keep Well Agreement, extending the maturity date and increasing the available borrowing amount [32] - A partnership with a leading AI natural language processing platform is expected to enhance coaching effectiveness through real-time insights [33] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded with closing remarks from the CEO [42][43]