Streamline Health(US:STRM)2021-09-09 18:19Financial Data and Key Metrics Changes - Total revenue for Q2 2021 was $2.9 million, consistent with Q2 2020, while SaaS revenue grew by 59% year-over-year [10][22] - Recurring revenue accounted for 84% of total revenue in Q2 2021, up from 71% in Q2 2020 [10] - Adjusted EBITDA for Q2 2021 was a loss of $800,000, compared to a loss of $400,000 in Q2 2020 [10][25] - Cash on hand as of July 31, 2021, was $15.8 million, with no bank debt [10][26] Business Line Data and Key Metrics Changes - SaaS revenue increased by $0.5 million, approximately 59% compared to the same quarter a year ago [22] - Avelead's SaaS ARR run rate was $5.7 million as of June 30, 2021, with total revenue for the trailing 12 months at $10.2 million [12] Market Data and Key Metrics Changes - The company experienced decision-making delays in healthcare providers due to the Delta variant, impacting elective procedures and revenue generation [19][40] - The sales pipeline for eValuator contracts remains strong, with approximately $1.5 million in contracts sold in Q2 2021 [19] Company Strategy and Development Direction - The acquisition of Avelead is seen as a major milestone, expected to nearly double consolidated revenue and enhance the product portfolio [12][28] - The company aims to achieve a gross margin of 80% for SaaS revenue by fiscal 2023 [26][27] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about growth despite the challenges posed by the pandemic, focusing on technologies that improve financial performance for healthcare providers [28][29] - The company is confident in its ability to generate cash flow by Q2 or Q3 2022 following the acquisition of Avelead [27] Other Important Information - The company has made significant strides in cleaning up its capital structure, including eliminating preferred stock and raising $16 million in March 2021 [11] - The leadership team is focused on expanding sales and marketing efforts, with new hires to support growth initiatives [20][21] Q&A Session Summary Question: Feedback from Avelead customers and cross-selling opportunities - Management confirmed positive feedback from Avelead customers and identified opportunities for cross-selling between eValuator and Avelead solutions [33][34] Question: Potential to add eValuator to Cerner distribution agreement - Management expressed interest in introducing eValuator to Cerner teams at the appropriate time, highlighting the complementary nature of their solutions [36] Question: Triggers for customers to finalize contracts - Management noted that the backlog in legal departments and the urgency of revenue loss are key factors that will drive contract signings [38][41] Question: Avelead's market position before acquisition - Avelead was exploring growth opportunities and had engaged in discussions with Streamline prior to the acquisition [44][46]