Ontrak(US:OTRK)2025-05-20 21:30Financial Data and Key Metrics Changes - In Q1 2025, the company's revenue was $2 million, reflecting a 25% decrease compared to the same period last year due to the loss of a customer [15] - The average revenue per enrolled member per month was approximately $254, down from $500 in Q4 2024 and $504 in Q1 2024 [17] - Gross margin for Q1 was 37%, a decrease from 61% in Q4 2024 and 63.6% in Q1 2024, primarily driven by the loss of a customer and a shift in member mix [20] Business Line Data and Key Metrics Changes - The total enrolled members reached 3,165 at the end of Q1, nearly doubling year over year, with over 1,150 members in the Engage program [6][16] - The company added 2,039 new members during the quarter, the highest since Q3 2021, contrasting with 1,641 in Q4 2024 and 925 in Q1 2024 [18] - The average monthly disenrollment rate was 10%, down from 19% in Q4 2024 and 22% in Q1 2024 [19] Market Data and Key Metrics Changes - The company has achieved state Medicaid provider approval in two states and is working to expand its footprint [8] - The outreach pool averaged 27,204 for the quarter, leading to a 30% enrollment rate, down from 50% in Q4 2024 [18] Company Strategy and Development Direction - The company aims to double its run rate revenue in 2025 compared to 2024, driven by successful conversions of prospective customers [6] - The Engage solution is expanding market reach by serving members who may not require the full Whole Health Plus program [7] - The company is focused on converting its strong pipeline into signed contracts while nurturing relationships with existing customers [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about converting prospective customers, particularly a large Midwestern Medicaid plan [5][10] - The overall reaction from prospects to the enhanced solution suite has been extremely positive, with health plans acknowledging the need for more intensive behavioral health support [12] - The company anticipates revenues for Q2 2025 in the range of $2.2 million to $2.6 million, representing an 8% to 22% sequential increase [22] Other Important Information - The company reported cash flow from operations for Q1 was negative $2.7 million, an improvement from negative $3.3 million in the same period last year [21] - Cash reserves stood at $4.1 million at the end of the quarter, down from $5.7 million at the end of 2024 [21] - The company has secured up to $10 million of additional financing available as needed in the short term [22] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call may have concluded without a formal Q&A session.