Ontrak(US:OTRK)2021-08-06 01:39Financial Data and Key Metrics Changes - Total revenue for Q2 2021 was $26.5 million, representing a 54% increase compared to the same period in 2020, driven by strong growth in government lines of business [8][38] - Deferred revenue decreased to $14.5 million in Q2 2021 from $24.9 million in Q1 2021 [38] - Gross margin for Q2 2021 was 67.8%, up from 55.6% in Q1 2021 and 42.7% in Q2 2020 [44] - Cash flow from operations was a negative $3.3 million, an improvement from a negative $6.2 million in Q2 2020 [48] Business Line Data and Key Metrics Changes - The average revenue per enrolled member per month increased to $687 in Q2 2021 from $558 in Q2 2020 [39] - Enrollment decreased to 10,818 members by the end of Q2 2021 from 14,868 at the beginning of the quarter, with a total of 3,066 members enrolled during the quarter, down from 6,723 in Q2 2020 [39][41] - The disenrollment rate averaged approximately 11% per month during the quarter, with a total of 5,070 members disenrolled [41] Market Data and Key Metrics Changes - The average outreach pool for Q2 2021 was approximately 23,000, leading to an annualized enrollment rate of 53%, compared to 21% in Q1 2021 [40] - The company noted a shift in utilization patterns, with commercial populations recovering more quickly than government programs [83] Company Strategy and Development Direction - The company is focused on expanding its addressable market and enhancing its value proposition through a consumer-centric approach [7][50] - Plans to invest in machine learning models to better identify and engage high-cost individuals with behavioral health conditions [14] - The strategy includes deepening partnerships with healthcare providers and enhancing the integration of behavioral health with social needs [15][17] Management's Comments on Operating Environment and Future Outlook - Management reiterated revenue guidance for the year at $80 million to $85 million, despite challenges from lost contracts [8][49] - There is optimism for a rebound in eligibility pools and utilization in the second half of the year, driven by a mix shift towards government programs [81][86] - The company is building a world-class executive team to support growth initiatives [36] Other Important Information - The company is actively working on enhancing its product and service capabilities in the latter half of the year [33] - A significant expansion with a large healthcare system was announced, indicating ongoing growth and relationship development [34] Q&A Session Summary Question: How long are Aetna members expected to stay on the platform? - Management indicated that Aetna members will gradually transition off the platform throughout the year, with most expected to graduate by year-end [54][55] Question: What is the average rate for enrolled members in Q2? - The average rate for Q2 was reported as $687 per enrolled member per month [63] Question: How does the company view its growth trajectory heading into 2022? - Management noted a growing and balanced pipeline with major national companies, but did not provide specific guidance for 2022 [89]