Ontrak(US:OTRK)2023-05-10 22:06Financial Data and Key Metrics Changes - In Q1 2023, the company recorded revenue of $2.5 million, representing a 52% year-over-year decrease primarily due to a reduction in total average enrolled members compared to the same period in 2022 [33] - The average revenue per health plan enrolled member per month was approximately $528, compared to $501 in Q1 2022 and $552 in Q4 2022 [34] - The gross margin for Q1 was 66.5%, an increase from 61.3% sequentially and from 45.9% year-over-year [45] Business Line Data and Key Metrics Changes - The company expanded its active outreach pool for the Wholehealth+ program to over 9,000 members, doubling the size compared to the previous quarter [17] - A total of 825 members were enrolled during Q1 2023, up from 446 in Q1 2022 and 754 in Q4 2022, with a gross enrollment rate of 62% [43] - The average monthly disenrollment rate remained at 11%, consistent with Q4 2022 [43] Market Data and Key Metrics Changes - The company is experiencing increased interest from potential clients, including national consulting firms seeking behavioral health solutions [20] - There is a strong demand for the company's new product portfolio, which aligns with the specific goals of health plans and value-based providers [39] Company Strategy and Development Direction - The company is focusing on a modular product suite to better serve health plan payers, value-based providers, and self-insured employers, aiming to support 20% to 30% of their membership [4] - The Ontrak Wholehealth product suite is positioned to address the shortage of qualified behavioral health providers by helping customers identify members with undiagnosed issues [24] - The company is working towards NCQA accreditation, which will allow customers to delegate credentialing to Ontrak, enhancing service value [28] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing challenges in accessing qualified behavioral health services, despite increased telehealth options [8] - The company reaffirmed its revenue guidance for the year, expecting revenues between $12 million and $14 million from its current customer base [48] Other Important Information - The company has implemented AI solutions to improve operational efficiencies, resulting in a nearly 50% increase in coaching caseload capacity [15] - Cash flow from operations was negative $5 million in Q1 2023, an improvement from negative $10.5 million in Q1 2022 [47] Q&A Session Summary Question: What is the status of the engagement with the Medicare advantage plan? - The company is close to securing a signature on a BAA with a large Medicare advantage plan, which has shown strong interest in the Ontrak Engage coaching program [38] Question: How is the company addressing the outreach and engagement initiatives? - The company participated in a West Coast Medicaid health plan RFP seeking solutions to improve member health outcomes, indicating that its new product portfolio is a good fit [39] Question: What are the expansion opportunities with existing customers? - The company is in discussions with existing customers about potential expansions for new populations and lines of business [40]