- Q1 2022 Financial Highlights:
- Total net revenue was $16.4 million
- Gross margin was 56% of total revenue
- Post Quarter End:
- NaviNet Open Won MedTech Breakthrough “Healthcare Insurance
Innovation Award.” This is the second year in a row that a
NantHealth product has been recognized for this award
NantHealth, Inc. (NASDAQ-GS: NH), a leading provider of
enterprise solutions that help businesses transform complex data
into actionable insights, today reported financial results for its
first quarter ended March 31, 2022.
“We are pleased to start the year with positive momentum, with
our 2022 first quarter revenue increasing over the previous
quarter,” said Ron Louks, Chief Operating Officer, NantHealth.
“To help drive further growth, we continue to invest in the
development of our products and services, including the expansion
of our cloud and data analytics capabilities. These investments are
delivering results in multiple ways, including the launch of
several new applications on our new cloud platform. Eviti Connect
expansion continued with Autoimmune Diseases and our NantHealth
Partner Portal which added on-demand customer access to interactive
reporting. We are also seeing continued interest in our data
enrichment services, as well as pilot programs for The OpenNMS
Group Inc.’s cloud services.”
Software and Services Q1 Highlights:
- Clinical Decision Support (Eviti®):
- Signed a multi-year renewal with a leading nonprofit,
multi-state health plan serving government sponsored programs. The
agreement significantly expands the scope of Eviti Connect for
Oncology services provided to the plan, including the addition of
full delegation services and evidence-based radiation oncology
care
- Expanded full delegation capabilities to include radiation
oncology services in addition to medical oncology, enabling
customers to assign prior authorization decisions to
NantHealth
- New functionality that allows health plan customers to approve
and assign a prior authorization Eviti code to portions of a
treatment plan, eliminating the need for complete plan resubmission
and speeding up treatment to patients
- Payer Engagement (NaviNet®):
- Received HITRUST certification, a highly stringent benchmark
that ensures NantHealth continues to meet key regulations and
industry-defined security requirements. This places NantHealth and
NaviNet Open in an elite group of organizations worldwide that have
earned this status for information security
- In May 2022, won the MedTech Breakthrough “Healthcare Insurance
Innovation Award,” recognized for the platform’s innovative ability
to break through digital health and technology markets
- Enhanced NaviNet Open Authorizations with new processes for
automating the collection of additional procedure code modifiers
and reducing the need for manual follow-up by the health plan
- Network Monitoring and Management (The OpenNMS Group, Inc.):
- Released OpenNMS Meridian 2022, the optimized and hardened
version of the OpenNMS platform available to annual maintenance
subscribers for use in production environments. Meridian 2022
features enhanced security, improved analytics for NetFlow
processing, simplified Minion communication and enhanced
geolocation with IP addresses
- Signed several new professional services agreements with
customers using the Horizon and Meridian versions of the OpenNMS
platform. This work in collaboration with customers helps to
improve the extensibility, reliability, and scalability of the
platform for the entire user community
- Completed global delivery of 1U hardware appliances, expanding
the existing hardware appliance beta program with a large consumer
electronics retailer
First Quarter Financial Results: 2022 vs 2021
For the 2022 first quarter:
- Total net revenue was $16.4 million compared with $16.2
million.
- Gross profit was $9.2 million, or 56% of total net revenue,
compared with $9.1 million, or 56% of total net revenue.
- Selling, general and administrative (SG&A) expenses
increased to $15.0 million from $12.5 million.
- Research and development (R&D) expenses increased to $5.7
million from $5.0 million.
- Net loss from continuing operations, net of tax, was $16.0
million, or $0.14 per share, compared with $15.4 million, or $0.14
per share.
- On a non-GAAP basis, net loss from continuing operations was
$12.2 million, or $0.11 per share, compared with $9.6 million, or
$0.09 per share.
- At March 31, 2022, cash and cash equivalents totaled $16.1
million.
Conference Call Information and Forward-Looking
Statements
Later today, the company will host a conference call at 1:30
p.m. PT (4:30 p.m. ET) to review its results of operations for the
first quarter ended March 31, 2022. The conference call will be
available to interested parties by dialing 800-920-5526 from the
U.S. or Canada, or 212-231-2907 from international locations. The
call will be broadcast via the Internet at www.nanthealth.com.
Listeners are encouraged to visit the website at least 10 minutes
prior to the start of the scheduled presentation to register,
download and install any necessary audio software. A playback of
the call will be archived and accessible on the same website for at
least three months.
Discussion during the conference call may include
forward-looking statements regarding topics such as the company’s
financial status and performance, regulatory and operational
developments, and other comments the company may make about its
future plans or prospects in response to questions from
participants on the conference call.
Use of Non-GAAP Financial Measures
This news release contains references to Non-GAAP financial
measures, including adjusted net loss and adjusted net loss per
share, which are financial measures that are not prepared in
conformity with United States generally accepted accounting
principles (U.S. GAAP). The Company’s management believes that the
presentation of Non-GAAP financial measures provides useful
supplementary information regarding operational performance,
because it enhances an investor’s overall understanding of the
financial results for the Company’s core business. Additionally, it
provides a basis for the comparison of the financial results for
the Company’s core business between current, past and future
periods. Other companies may define these measures in different
ways. Non-GAAP financial measures should be considered only as a
supplement to, and not as a substitute for or as a superior measure
to, financial measures prepared in accordance with U.S. GAAP.
Non-GAAP per share numbers are calculated based on one class of
common stock and do not incorporate the effects, if any, of using
the two-class method.
About NantHealth, Inc.
NantHealth, a member of the NantWorks ecosystem of companies,
provides enterprise solutions that help businesses transform
complex data into actionable insights. By offering efficient ways
to move, interpret and visualize complex and highly sensitive
information, NantHealth enables customers in healthcare, life
sciences, logistics, telecommunications and other industries to
automate, understand and act on data while keeping it secure and
scalable. NantHealth’s product portfolio comprises the latest
technology in payer/provider collaboration platforms for real-time
coverage decision support (Eviti and NaviNet), and data solutions
that provide multi-data analysis, reporting and professional
services offerings (Quadris). The OpenNMS Group, Inc., a NantHealth
subsidiary, helps businesses monitor and manage network health and
performance. For more information, visit nanthealth.com, follow us
on Twitter, Facebook, LinkedIn and YouTube and subscribe to our
blog.
This news release contains certain statements of a
forward-looking nature relating to future events or future business
performance. Forward-looking statements can be identified by the
words “expects,” “anticipates,” “believes,” “intends,” “estimates,”
“plans,” “will,” “outlook” and similar expressions. Forward-looking
statements are based on management’s current plans, estimates,
assumptions and projections, and speak only as of the date they are
made. Risks and uncertainties include, but are not limited to: our
ability to successfully integrate a complex learning system to
address a wide range of healthcare issues; our ability to
successfully amass the requisite data to achieve maximum network
effects; appropriately allocating financial and human resources
across a broad array of product and service offerings; raising
additional capital as necessary to fund our operations; our ability
to grow the market for our software and data solutions;
successfully enhancing our software and data solutions to achieve
market acceptance and keep pace with technological developments;
customer concentration; competition; security breaches; bandwidth
limitations; our ability to integrate The OpenNMS Group, Inc. into
our operations; our use and distribution of open source software;
our ability to obtain necessary regulatory approvals,
certifications and licenses; dependence upon senior management; the
need to comply with and meet applicable laws and regulations;
unexpected adverse events; and anticipated cost savings. We
undertake no obligation to update any forward-looking statement in
light of new information or future events, except as otherwise
required by law. Forward-looking statements involve inherent risks
and uncertainties, most of which are difficult to predict and are
generally beyond our control. Actual results or outcomes may differ
materially from those implied by the forward-looking statements as
a result of the impact of a number of factors, many of which are
discussed in more detail in our reports filed with the Securities
and Exchange Commission.
NantHealth, Inc.
Consolidated Balance
Sheets
(Dollars in thousands)
March 31, 2022
December 31,
2021
(Unaudited)
Assets
Current assets
Cash and cash equivalents
$
16,078
$
29,084
Accounts receivable, net
5,025
5,810
Related party receivables, net
505
506
Prepaid expenses and other current
assets
4,518
4,010
Total current assets
26,126
39,410
Property, plant, and equipment, net
11,956
12,366
Goodwill
98,333
98,333
Intangible assets, net
36,807
39,039
Related party receivable, net of
current
1,012
1,012
Operating lease right-of-use assets
5,673
6,048
Other assets
1,494
1,620
Total assets
$
181,401
$
197,828
Liabilities and Stockholders'
Equity
Current liabilities
Accounts payable
$
5,288
$
3,204
Accrued and other current liabilities
12,712
16,358
Deferred revenue
2,704
2,440
Related party payables, net
4,302
5,161
Notes payable
—
782
Total current liabilities
25,006
27,945
Deferred revenue, net of current
1,793
2,024
Related party liabilities
40,136
38,278
Related party promissory note
112,666
112,666
Related party convertible note, net
62,285
62,268
Convertible notes, net
74,623
74,603
Deferred income taxes, net
1,680
1,775
Operating lease liabilities
5,711
6,248
Other liabilities
34,098
34,013
Total liabilities
357,998
359,820
Stockholders' deficit
Common stock, $0.0001 par value per share,
750,000,000 shares authorized; 115,550,244 and 115,505,244 shares
issued and outstanding at March 31, 2022 and December 31, 2021,
respectively
12
12
Additional paid-in capital
892,546
891,105
Accumulated deficit
(1,068,847
)
(1,052,897
)
Accumulated other comprehensive loss
(308
)
(212
)
Total stockholders' deficit
$
(176,597
)
$
(161,992
)
Total liabilities and stockholders'
deficit
$
181,401
$
197,828
NantHealth, Inc.
Consolidated Statements of
Operations
(Dollars in thousands, except per
share amounts)
(Unaudited)
Three Months Ended
March 31,
2022
2021
Revenue
Software-as-a-service related
$
15,771
$
15,757
Maintenance
464
383
Professional services
138
27
Total software-related revenue
16,373
16,167
Other
—
3
Total net revenue
16,373
16,170
Cost of Revenue
Software-as-a-service related
5,563
5,535
Maintenance
369
207
Professional services
—
7
Amortization of developed technologies
1,247
1,247
Total software-related cost of revenue
7,179
6,996
Other
—
47
Total cost of revenue
7,179
7,043
Gross Profit
9,194
9,127
Operating Expenses
Selling, general and administrative
14,980
12,502
Research and development
5,715
5,013
Amortization of acquisition-related
assets
985
985
Total operating expenses
21,680
18,500
Loss from operations
(12,486
)
(9,373
)
Interest expense, net
(3,450
)
(3,568
)
Other income (expense), net
6
(2,570
)
Loss from continuing operations before
income taxes
(15,930
)
(15,511
)
Provision for (benefit from) income
taxes
20
(8
)
Net loss from continuing operations
(15,950
)
(15,503
)
Income from discontinued operations, net
of tax attributable to NantHealth
—
4
Net loss
(15,950
)
(15,499
)
Net loss attributable to noncontrolling
interests
—
(91
)
Net loss attributable to NantHealth
$
(15,950
)
$
(15,408
)
Basic and diluted net loss per share
attributable to NantHealth:
Total net loss per share - common
stock
$
(0.14
)
$
(0.14
)
Weighted average shares
outstanding
Basic and diluted - common stock
115,521,243
111,319,061
NantHealth, Inc.
Non-GAAP Net Loss from
Continuing Operations Attributable to NantHealth and
Non-GAAP Net Loss Per Share
from Continuing Operations Attributable to NantHealth
(Dollars in thousands, except per
share amounts)
(Unaudited)
Three Months Ended
March 31,
2022
2021
Net loss from continuing operations
attributable to NantHealth
$
(15,950
)
$
(15,412
)
Adjustments to GAAP net loss from
continuing operations attributable to NantHealth:
Stock-based compensation expense from
continuing operations
1,390
883
Change in fair value of derivatives
liability
—
(4
)
Change in fair value of Bookings
Commitment
94
2,463
Noncash interest expense related to
convertible notes
37
323
Intangible amortization from continuing
operations
2,232
2,212
Tax (benefit) provision resulting from
certain noncash tax items
(40
)
(43
)
Total adjustments to GAAP net loss from
continuing operations attributable to NantHealth
3,713
5,834
Net loss from continuing operations
attributable to NantHealth - Non-GAAP
$
(12,237
)
$
(9,578
)
Weighted average basis common shares
outstanding
115,521,243
111,319,061
Net loss per common share from
continuing operations attributable to NantHealth - Non-GAAP
$
(0.11
)
$
(0.09
)
Reconciliation of Net Loss per
Common Share from Continuing Operations Attributable to
NantHealth
to Net Loss per Common Share
from Continuing Operations Attributable to NantHealth -
Non-GAAP
(Unaudited)
Three Months Ended
March 31,
2022
2021
Net loss per common share from continuing
operations attributable to NantHealth
$
(0.14
)
$
(0.14
)
Adjustments to GAAP net loss per common
share from continuing operations attributable to NantHealth:
Stock-based compensation expense from
continuing operations
0.01
0.01
Change in fair value of derivatives
liability
—
—
Change in fair value of Bookings
Commitment
—
0.02
Noncash interest expense related to
convertible notes
—
—
Intangible amortization from continuing
operations
0.02
0.02
Tax (benefit) provision resulting from
certain noncash tax items
—
—
Total adjustments to GAAP net loss per
common share from continuing operations attributable to
NantHealth
0.03
0.05
Net loss per common share from
continuing operations attributable to NantHealth - Non-GAAP
$
(0.11
)
$
(0.09
)
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version on businesswire.com: https://www.businesswire.com/news/home/20220505006002/en/
Investor Contact: Robert Jaffe rjaffe@rjaffeco.com
424.288.4098
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