CareCloud(US:CCLD)2025-03-13 14:41Financial Data and Key Metrics Changes - Free cash flow reached record levels of $13.2 million, a year-over-year increase of nearly 250% [11] - Adjusted EBITDA rose to $24.1 million, a 56% increase year-over-year [11] - Net income surged to an all-time high of $7.9 million, compared to a net loss of $48.7 million in 2023 [39][43] - Revenue for Q4 2024 was $28.2 million, slightly down from $28.4 million in Q4 2023 [40] - GAAP net income for Q4 2024 was $3.3 million, compared to a net loss of $43.7 million in the same period last year [39] Business Line Data and Key Metrics Changes - Recurring technology-enabled business solution revenues were $24.8 million, essentially flat with Q4 2023 [40] - Non-recurring professional services revenues from medSR declined by approximately $400,000 [40] Market Data and Key Metrics Changes - The company anticipates revenue growth in the range of $111 million to $114 million for 2025, indicating a shift towards positive growth after previous declines [17] - Adjusted EBITDA for 2025 is projected to be between $26 million and $28 million [17] Company Strategy and Development Direction - The conversion of Series A preferred shares into common stock was a significant strategic move, aimed at optimizing the capital structure and enhancing shareholder value [13][15] - The company is focused on leveraging AI-driven solutions to improve provider efficiency and reduce administrative burdens [19] - CareCloud plans to expand specialty-based EHR solutions, targeting distinct needs of various medical specialties [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive earnings per share for the first time since going public in 2014, reflecting the strength of the business transformation [11][18] - The company remains focused on strategic growth, efficiency, and expansion, with a commitment to innovation [17][35] Other Important Information - The company has fully repaid its Silicon Valley Bank line of credit and is now bank debt-free [38] - The removal of dividend obligations tied to preferred shares will free up additional resources for reinvestment into key growth areas [16] Q&A Session Summary Question: Revenue and EBITDA guidance for the year - Management indicated that they expect revenue growth in 2025, with a range of $111 million to $114 million, and adjusted EBITDA between $26 million and $28 million, reflecting a disciplined approach to cost management and innovation [54][55] Question: Insights on M&A pipeline and valuations - Management confirmed a re-entry into the acquisition market, focusing on smaller and mid-sized medical billing companies, with a disciplined approach to ensure any deals pursued are accretive and align with long-term objectives [60][64] Question: User base expansion and offerings - The user base is diversified, with a significant portion in primary care, and management sees opportunities to upsell various solutions to existing clients [70][72] Question: 2025 guidance and customer attrition - The 2025 revenue guidance does not factor in any material acquisitions, focusing instead on organic growth and small tuck-in opportunities [77][78] Question: Preferred stocks and dividends - Management clarified the Series A conversion details and ongoing obligations for the remaining preferred shares, indicating that dividends will continue to be paid on the outstanding shares [96][98]