Health Catalyst, Inc. ("Health Catalyst," Nasdaq: HCAT), a leading
provider of data and analytics technology and services to
healthcare organizations, today reported financial results for the
quarter ended March 31, 2024.
“For the first quarter of 2024, I am pleased by
our strong financial results, including total revenue of $74.7
million and Adjusted EBITDA of $3.4 million, with these results
beating the mid-point of our quarterly guidance on each metric.
This financial performance demonstrates our ability to continue to
scale our business as we drive toward our long-term profitability
goals. We are reiterating our full year 2024 total revenue and
Adjusted EBITDA guidance ranges and also reiterating both of our
bookings metrics, inclusive of dollar-based retention rate and net
new DOS Subscription client additions,” said Dan Burton, CEO of
Health Catalyst.
Financial Highlights for the Three
Months Ended March 31, 2024
Key Financial Metrics
|
Three Months Ended March 31, |
|
Year over Year Change |
|
|
2024 |
|
|
|
2023 |
|
|
GAAP Financial
Measures: |
(in thousands, except percentages, unaudited) |
|
|
Total revenue |
$ |
74,723 |
|
|
$ |
73,868 |
|
|
1 |
% |
Gross profit |
$ |
29,321 |
|
|
$ |
28,158 |
|
|
4 |
% |
Gross margin |
|
39 |
% |
|
|
38 |
% |
|
|
Net loss |
$ |
(20,587 |
) |
|
$ |
(33,190 |
) |
|
38 |
% |
Non-GAAP Financial
Measures:(1) |
|
|
|
|
|
Adjusted Gross Profit |
$ |
38,319 |
|
|
$ |
38,372 |
|
|
— |
% |
Adjusted Gross Margin |
|
51 |
% |
|
|
52 |
% |
|
|
Adjusted EBITDA |
$ |
3,377 |
|
|
$ |
4,164 |
|
|
(19 |
)% |
________________________
(1) These measures are not calculated in
accordance with generally accepted accounting principles in the
United States (GAAP). See the accompanying "Non-GAAP Financial
Measures" section below for more information about these financial
measures, including the limitations of such measures, and for a
reconciliation of each measure to the most directly comparable
measure calculated in accordance with GAAP.
Financial Outlook
Health Catalyst provides forward-looking guidance on total
revenue, a GAAP measure, and Adjusted EBITDA, a non-GAAP
measure.
For the second quarter of 2024, we expect:
- Total revenue between $73.5 million and $76.5 million, and
- Adjusted EBITDA between $5.0 million
and $7.0 million
For the full year of 2024, we expect:
- Total revenue between $304.0 million and $312.0 million,
and
- Adjusted EBITDA between $24.0
million and $26.0 million
We have not provided forward-looking guidance
for net loss, the most directly comparable GAAP measure, to
Adjusted EBITDA, and therefore have not reconciled guidance for
Adjusted EBITDA to net loss, because there are items that may
impact net loss, including stock-based compensation, that are not
within our control or cannot be reasonably forecasted.
Quarterly Conference Call Details
We will host a conference call to review the
results today, Thursday, May 9, 2024, at 5:00 p.m. E.T. The
conference call can be accessed by dialing (800) 225-9448 for U.S.
participants, or (203) 518-9708 for international participants, and
referencing conference ID “HCAT Q124.” A live audio webcast will be
available online at https://ir.healthcatalyst.com/. A replay of the
call will be available via webcast for on-demand listening shortly
after the completion of the call, at the same web link, and will
remain available for approximately 90 days.
About Health Catalyst
Health Catalyst is a leading provider of data
and analytics technology and services to healthcare organizations
committed to being the catalyst for massive, measurable,
data-informed healthcare improvement. Its clients leverage the
cloud-based data platform — powered by data from more than 100
million patient records and encompassing trillions of facts — as
well as its analytics software and professional services expertise
to make data-informed decisions and realize measurable clinical,
financial, and operational improvements. Health Catalyst envisions
a future in which all healthcare decisions are data informed.
Available Information
Our investors and others should note that we
announce material information to the public about our company,
products and services, and other matters related to our company
through a variety of means, including our website
(https://www.healthcatalyst.com/), our investor relations website
(https://ir.healthcatalyst.com/), press releases, SEC filings,
public conference calls, and social media, including our and our
CEO's social media accounts, in order to achieve broad,
non-exclusionary distribution of information to the public and to
comply with our disclosure obligations under Regulation FD.
Forward-Looking Statements
This release contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995,
as amended. These forward-looking statements include statements
regarding our future growth and our financial outlook for the
second quarter and full year 2024. Forward-looking statements are
subject to risks and uncertainties and are based on potentially
inaccurate assumptions that could cause actual results to differ
materially from those expected or implied by the forward-looking
statements. Actual results may differ materially from the results
predicted, and reported results should not be considered as an
indication of future performance.
Important risks and uncertainties that could
cause our actual results and financial condition to differ
materially from those indicated in the forward-looking statements
include, among others, the following: (i) changes in laws and
regulations applicable to our business model; (ii) changes in
market or industry conditions, regulatory environment, and
receptivity to our technology and services; (iii) results of
litigation or a security incident; (iv) the loss of one or more key
clients or partners; (v) the impact of the challenging
macroeconomic environment (including high inflationary and/or high
interest rate environments) on our business and results of
operations; and (vi) changes to our abilities to recruit and retain
qualified team members. For a detailed discussion of the risk
factors that could affect our actual results, please refer to the
risk factors identified in our SEC reports, including, but not
limited to the Quarterly Report on Form 10-Q for the fiscal quarter
ended March 31, 2024 expected to be filed with the SEC on or
about May 9, 2024 and the Annual Report on Form 10-K for the
year ended December 31, 2023 filed with the SEC on February 22,
2024. All information provided in this release and in the
attachments is as of the date hereof, and we undertake no duty to
update or revise this information unless required by law.
Condensed Consolidated Balance Sheets(in
thousands, except share and per share data, unaudited) |
|
|
As ofMarch 31, |
|
As ofDecember 31, |
|
|
2024 |
|
|
|
2023 |
|
|
(unaudited) |
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
201,370 |
|
|
$ |
106,276 |
|
Short-term investments |
|
126,415 |
|
|
|
211,452 |
|
Accounts receivable, net |
|
53,874 |
|
|
|
60,290 |
|
Prepaid expenses and other assets |
|
15,477 |
|
|
|
15,379 |
|
Total current assets |
|
397,136 |
|
|
|
393,397 |
|
Property and equipment,
net |
|
24,697 |
|
|
|
25,712 |
|
Intangible assets, net |
|
66,217 |
|
|
|
73,384 |
|
Operating lease right-of-use
assets |
|
12,003 |
|
|
|
13,927 |
|
Goodwill |
|
190,652 |
|
|
|
190,652 |
|
Other assets |
|
4,407 |
|
|
|
4,742 |
|
Total assets |
$ |
695,112 |
|
|
$ |
701,814 |
|
Liabilities and
stockholders’ equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
5,697 |
|
|
$ |
6,641 |
|
Accrued liabilities |
|
19,614 |
|
|
|
23,282 |
|
Deferred revenue |
|
63,550 |
|
|
|
55,753 |
|
Operating lease liabilities |
|
3,347 |
|
|
|
3,358 |
|
Total current liabilities |
|
92,208 |
|
|
|
89,034 |
|
Convertible senior notes |
|
228,413 |
|
|
|
228,034 |
|
Deferred revenue, net of
current portion |
|
81 |
|
|
|
77 |
|
Operating lease liabilities,
net of current portion |
|
17,112 |
|
|
|
17,676 |
|
Other liabilities |
|
88 |
|
|
|
74 |
|
Total liabilities |
|
337,902 |
|
|
|
334,895 |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock, $0.001 par value per share; 25,000,000 shares
authorized and no shares issued and outstanding as of
March 31, 2024 and December 31, 2023 |
|
— |
|
|
|
— |
|
Common stock, $0.001 par value per share, and additional paid-in
capital; 500,000,000 shares authorized as of March 31, 2024
and December 31, 2023; 58,956,132 and 58,295,491 shares issued
and outstanding as of March 31, 2024 and December 31,
2023, respectively |
|
1,495,091 |
|
|
|
1,484,056 |
|
Accumulated deficit |
|
(1,137,757 |
) |
|
|
(1,117,170 |
) |
Accumulated other comprehensive income (loss) |
|
(124 |
) |
|
|
33 |
|
Total stockholders’
equity |
|
357,210 |
|
|
|
366,919 |
|
Total liabilities and
stockholders’ equity |
$ |
695,112 |
|
|
$ |
701,814 |
|
|
Condensed Consolidated Statements of Operations(in
thousands, except per share data, unaudited) |
|
|
Three Months Ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
|
(in thousands) |
Revenue: |
|
|
|
Technology |
$ |
46,966 |
|
|
$ |
47,186 |
|
Professional services |
|
27,757 |
|
|
|
26,682 |
|
Total revenue |
|
74,723 |
|
|
|
73,868 |
|
Cost of revenue, excluding depreciation and amortization: |
|
|
|
Technology(1)(2)(3) |
|
15,315 |
|
|
|
14,727 |
|
Professional services(1)(2)(3) |
|
23,202 |
|
|
|
23,577 |
|
Total cost of revenue, excluding depreciation and amortization |
|
38,517 |
|
|
|
38,304 |
|
Operating expenses: |
|
|
|
Sales and marketing(1)(2)(3) |
|
19,058 |
|
|
|
18,569 |
|
Research and development(1)(2)(3) |
|
14,871 |
|
|
|
17,082 |
|
General and administrative(1)(2)(3)(4)(5) |
|
14,564 |
|
|
|
23,833 |
|
Depreciation and amortization |
|
10,525 |
|
|
|
10,994 |
|
Total operating expenses |
|
59,018 |
|
|
|
70,478 |
|
Loss from operations |
|
(22,812 |
) |
|
|
(34,914 |
) |
Interest and other income,
net |
|
2,338 |
|
|
|
1,793 |
|
Loss before income taxes |
|
(20,474 |
) |
|
|
(33,121 |
) |
Income tax provision |
|
113 |
|
|
|
69 |
|
Net loss |
$ |
(20,587 |
) |
|
$ |
(33,190 |
) |
Net loss per share, basic and diluted |
$ |
(0.35 |
) |
|
$ |
(0.60 |
) |
Weighted-average shares outstanding used in calculating net loss
per share, basic and diluted |
|
58,592 |
|
|
|
55,485 |
|
_______________(1) Includes stock-based
compensation expense as follows:
|
Three Months Ended March 31, |
|
|
2024 |
|
|
2023 |
Stock-Based
Compensation Expense: |
(in thousands) |
Cost of revenue, excluding depreciation and amortization: |
|
|
|
Technology |
$ |
365 |
|
$ |
416 |
Professional services |
|
1,332 |
|
|
1,774 |
Sales and marketing |
|
3,990 |
|
|
5,442 |
Research and development |
|
1,844 |
|
|
2,673 |
General and
administrative |
|
3,307 |
|
|
3,579 |
Total |
$ |
10,838 |
|
$ |
13,884 |
(2) Includes acquisition-related costs (benefit), net, as
follows:
|
Three Months Ended March 31, |
|
|
2024 |
|
|
2023 |
Acquisition-related
costs (benefit), net: |
(in thousands) |
Cost of revenue, excluding depreciation and amortization: |
|
|
|
Technology |
$ |
65 |
|
$ |
71 |
Professional services |
|
91 |
|
|
101 |
Sales and marketing |
|
64 |
|
|
101 |
Research and development |
|
202 |
|
|
194 |
General and
administrative |
|
391 |
|
|
14 |
Total |
$ |
813 |
|
$ |
481 |
(3) Includes restructuring costs as follows:
|
Three Months Ended March 31, |
|
|
2024 |
|
|
2023 |
Restructuring
costs: |
(in thousands) |
Cost of revenue, excluding depreciation and amortization: |
|
|
|
Technology |
$ |
79 |
|
$ |
12 |
Professional services |
|
181 |
|
|
434 |
Sales and marketing |
|
449 |
|
|
1,205 |
Research and development |
|
443 |
|
|
286 |
General and
administrative |
|
661 |
|
|
118 |
Total |
$ |
1,813 |
|
$ |
2,055 |
(4) Includes litigation costs as follows:
|
Three Months Ended March 31, |
|
|
2024 |
|
|
2023 |
Litigation
costs: |
(in thousands) |
General and
administrative |
$ |
— |
|
$ |
11,664 |
Total |
$ |
— |
|
$ |
11,664 |
(5) Includes non-recurring lease-related charges as follows:
|
Three Months Ended March 31, |
|
|
2024 |
|
|
2023 |
Non-recurring
lease-related charges: |
(in thousands) |
General and
administrative |
$ |
2,200 |
|
$ |
— |
Total |
$ |
2,200 |
|
$ |
— |
|
Condensed Consolidated Statements of Cash Flows(in
thousands, unaudited) |
|
|
Three Months EndedMarch 31, |
|
|
2024 |
|
|
|
2023 |
|
Cash flows from
operating activities |
|
|
|
Net loss |
$ |
(20,587 |
) |
|
$ |
(33,190 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
Stock-based compensation expense |
|
10,838 |
|
|
|
13,884 |
|
Depreciation and amortization |
|
10,525 |
|
|
|
10,994 |
|
Impairment of long-lived assets |
|
2,200 |
|
|
|
— |
|
Non-cash operating lease expense |
|
781 |
|
|
|
764 |
|
Amortization of debt discount and issuance costs |
|
379 |
|
|
|
377 |
|
Investment discount and premium accretion |
|
(1,965 |
) |
|
|
(1,979 |
) |
Provision for expected credit losses |
|
2,405 |
|
|
|
1,514 |
|
Deferred tax provision |
|
14 |
|
|
|
2 |
|
Other |
|
4 |
|
|
|
19 |
|
Change in operating assets and liabilities: |
|
|
|
Accounts receivable, net |
|
4,011 |
|
|
|
(15,405 |
) |
Prepaid expenses and other assets |
|
300 |
|
|
|
(420 |
) |
Accounts payable, accrued liabilities, and other liabilities |
|
(5,495 |
) |
|
|
7,709 |
|
Deferred revenue |
|
7,801 |
|
|
|
11,027 |
|
Operating lease liabilities |
|
(945 |
) |
|
|
(876 |
) |
Net cash provided by (used in)
operating activities |
|
10,266 |
|
|
|
(5,580 |
) |
|
|
|
|
Cash flows from
investing activities |
|
|
|
Purchase of short-term
investments |
|
137,000 |
|
|
|
107,100 |
|
Proceeds from the sale and
maturity of short-term investments |
|
(50,197 |
) |
|
|
(81,070 |
) |
Capitalization of internal-use
software |
|
(2,530 |
) |
|
|
(2,864 |
) |
Purchases of property and
equipment |
|
(208 |
) |
|
|
(425 |
) |
Purchase of intangible
assets |
|
(84 |
) |
|
|
(98 |
) |
Proceeds from the sale of
property and equipment |
|
3 |
|
|
|
6 |
|
Net cash provided by investing
activities |
|
83,984 |
|
|
|
22,649 |
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
Proceeds from employee stock
purchase plan |
|
843 |
|
|
|
1,174 |
|
Proceeds from exercise of
stock options |
|
20 |
|
|
|
727 |
|
Repurchase of common
stock |
|
— |
|
|
|
(1,808 |
) |
Net cash provided by financing
activities |
|
863 |
|
|
|
93 |
|
Effect of exchange rate
changes on cash and cash equivalents |
|
(19 |
) |
|
|
5 |
|
Net increase in cash and cash
equivalents |
|
95,094 |
|
|
|
17,167 |
|
|
|
|
|
Cash and cash equivalents at
beginning of period |
|
106,276 |
|
|
|
116,312 |
|
Cash and cash equivalents at
end of period |
$ |
201,370 |
|
|
$ |
133,479 |
|
|
Non-GAAP Financial Measures
To supplement our financial information
presented in accordance with GAAP, we believe certain non-GAAP
measures, including Adjusted Gross Profit, Adjusted Gross Margin,
Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per
share, basic and diluted, are useful in evaluating our operating
performance. For example, we exclude stock-based compensation
expense because it is non-cash in nature and excluding this expense
provides meaningful supplemental information regarding our
operational performance and allows investors the ability to make
more meaningful comparisons between our operating results and those
of other companies. We use this non-GAAP financial information to
evaluate our ongoing operations, as a component in determining
employee bonus compensation, and for internal planning and
forecasting purposes.
We believe that non-GAAP financial information,
when taken collectively, may be helpful to investors because it
provides consistency and comparability with past financial
performance. However, non-GAAP financial information is presented
for supplemental informational purposes only, has limitations as an
analytical tool and should not be considered in isolation or as a
substitute for financial information presented in accordance with
GAAP. In addition, other companies, including companies in our
industry, may calculate similarly-titled non-GAAP measures
differently or may use other measures to evaluate their
performance. A reconciliation is provided below for each non-GAAP
financial measure to the most directly comparable financial measure
stated in accordance with GAAP. Investors are encouraged to review
the related GAAP financial measures and the reconciliation of these
non-GAAP financial measures to their most directly comparable GAAP
financial measures, and not to rely on any single financial measure
to evaluate our business.
Adjusted Gross Profit
and Adjusted Gross Margin
Gross profit is a GAAP financial measure that is
calculated as revenue less cost of revenue, including depreciation
and amortization of capitalized software development costs and
acquired technology. We calculate gross margin as gross profit
divided by our revenue. Adjusted Gross Profit is
a non-GAAP financial measure that we define as gross
profit, adjusted for (i) depreciation and amortization, (ii)
stock-based compensation, (iii) acquisition-related costs, net, and
(iv) restructuring costs, as applicable. We
define Adjusted Gross Margin as
our Adjusted Gross Profit divided by our revenue. We
believe Adjusted Gross Profit
and Adjusted Gross Margin are useful to investors as they
eliminate the impact of certain non-cash expenses, as
well as certain other non-recurring operating expenses, and allow a
direct comparison of these measures between periods without the
impact of non-cash expenses and certain other
non-recurring operating expenses.
We present both of these measures for our
technology and professional services business. We believe these
non-GAAP measures are useful in evaluating our operating
performance compared to that of other companies in our industry, as
these metrics generally eliminate the effects of certain items that
may vary from company to company for reasons unrelated to overall
profitability.
The following is a calculation of our gross
profit and gross margin and a reconciliation of gross profit and
gross margin to our Adjusted Gross Profit and Adjusted Gross Margin
in total and for technology and professional services for the three
months ended March 31, 2024 and 2023:
|
Three Months Ended March 31, 2024 |
|
(in thousands, except percentages) |
|
Technology |
|
Professional Services |
|
Total |
Revenue |
$ |
46,966 |
|
|
$ |
27,757 |
|
|
$ |
74,723 |
|
Cost of revenue, excluding depreciation and amortization |
|
(15,315 |
) |
|
|
(23,202 |
) |
|
|
(38,517 |
) |
Amortization of intangible assets, cost of revenue |
|
(4,371 |
) |
|
|
— |
|
|
|
(4,371 |
) |
Depreciation of property and equipment, cost of revenue |
|
(2,514 |
) |
|
|
— |
|
|
|
(2,514 |
) |
Gross profit |
|
24,766 |
|
|
|
4,555 |
|
|
|
29,321 |
|
Gross margin |
|
53 |
% |
|
|
16 |
% |
|
|
39 |
% |
Add: |
|
|
|
|
|
Amortization of intangible assets, cost of revenue |
|
4,371 |
|
|
|
— |
|
|
|
4,371 |
|
Depreciation of property and equipment, cost of revenue |
|
2,514 |
|
|
|
— |
|
|
|
2,514 |
|
Stock-based compensation |
|
365 |
|
|
|
1,332 |
|
|
|
1,697 |
|
Acquisition-related costs, net(1) |
|
65 |
|
|
|
91 |
|
|
|
156 |
|
Restructuring costs(2) |
|
79 |
|
|
|
181 |
|
|
|
260 |
|
Adjusted Gross Profit |
$ |
32,160 |
|
|
$ |
6,159 |
|
|
$ |
38,319 |
|
Adjusted Gross Margin |
|
68 |
% |
|
|
22 |
% |
|
|
51 |
% |
___________________(1) Acquisition-related
costs, net include deferred retention expenses attributable to the
ARMUS and KPI Ninja acquisitions.(2) Restructuring costs include
severance and other team member costs from workforce
reductions.
|
Three Months Ended March 31, 2023 |
|
(in thousands, except percentages) |
|
Technology |
|
Professional Services |
|
Total |
Revenue |
$ |
47,186 |
|
|
$ |
26,682 |
|
|
$ |
73,868 |
|
Cost of revenue, excluding depreciation and amortization |
|
(14,727 |
) |
|
|
(23,577 |
) |
|
|
(38,304 |
) |
Amortization of intangible assets, cost of revenue |
|
(5,107 |
) |
|
|
— |
|
|
|
(5,107 |
) |
Depreciation of property and equipment, cost of revenue |
|
(2,299 |
) |
|
|
— |
|
|
|
(2,299 |
) |
Gross profit |
|
25,053 |
|
|
|
3,105 |
|
|
|
28,158 |
|
Gross margin |
|
53 |
% |
|
|
12 |
% |
|
|
38 |
% |
Add: |
|
|
|
|
|
Amortization of intangible assets, cost of revenue |
|
5,107 |
|
|
|
— |
|
|
|
5,107 |
|
Depreciation of property and equipment, cost of revenue |
|
2,299 |
|
|
|
— |
|
|
|
2,299 |
|
Stock-based compensation |
|
416 |
|
|
|
1,774 |
|
|
|
2,190 |
|
Acquisition-related costs, net(1) |
|
71 |
|
|
|
101 |
|
|
|
172 |
|
Restructuring costs(2) |
|
12 |
|
|
|
434 |
|
|
|
446 |
|
Adjusted Gross Profit |
$ |
32,958 |
|
|
$ |
5,414 |
|
|
$ |
38,372 |
|
Adjusted Gross Margin |
|
70 |
% |
|
|
20 |
% |
|
|
52 |
% |
___________________(1) Acquisition-related costs, net include
deferred retention expenses attributable to the ARMUS and KPI Ninja
acquisitions.(2) Restructuring costs include severance and other
team member costs from workforce reductions.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure
that we define as net loss adjusted for (i) interest and other
(income) expense, net, (ii) income tax provision, (iii)
depreciation and amortization, (iv) stock-based compensation, (v)
acquisition-related costs, net, (vi) litigation costs, (vii)
restructuring costs, and (viii) non-recurring lease-related
charges. We view acquisition-related expenses when applicable, such
as transaction costs and changes in the fair value of contingent
consideration liabilities that are directly related to business
combinations, as costs that are unpredictable, dependent upon
factors outside of our control, and are not necessarily reflective
of operational performance during a period. We believe that
excluding restructuring costs, litigation costs and non-recurring
lease-related charges allows for more meaningful comparisons
between operating results from period to period as these are
separate from the core activities that arise in the ordinary course
of our business and are not part of our ongoing operations. We
believe Adjusted EBITDA provides investors with useful information
on period-to-period performance as evaluated by management and a
comparison with our past financial performance, and is useful in
evaluating our operating performance compared to that of other
companies in our industry, as this metric generally eliminates the
effects of certain items that may vary from company to company for
reasons unrelated to overall operating performance. The following
is a reconciliation of our net loss, the most directly comparable
GAAP financial measure, to Adjusted EBITDA, for the three months
ended March 31, 2024 and 2023:
|
Three Months Ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
|
(in thousands) |
Net loss |
$ |
(20,587 |
) |
|
$ |
(33,190 |
) |
Add: |
|
|
|
Interest and other (income) expense, net |
|
(2,338 |
) |
|
|
(1,793 |
) |
Income tax provision |
|
113 |
|
|
|
69 |
|
Depreciation and amortization |
|
10,525 |
|
|
|
10,994 |
|
Stock-based compensation |
|
10,838 |
|
|
|
13,884 |
|
Acquisition-related costs, net(1) |
|
813 |
|
|
|
481 |
|
Litigation costs(2) |
|
— |
|
|
|
11,664 |
|
Restructuring costs(3) |
|
1,813 |
|
|
|
2,055 |
|
Non-recurring lease-related charges(4) |
|
2,200 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
3,377 |
|
|
$ |
4,164 |
|
__________________(1) Acquisition-related costs,
net include third-party fees associated with due diligence,
deferred retention expenses and post-acquisition restructuring
costs incurred as part of business combinations.(2) Litigation
costs include costs related to litigation that are outside the
ordinary course of our business. For additional details, refer to
Note 15 in our condensed consolidated financial statements.(3)
Restructuring costs include severance and other team member costs
from workforce reductions. For additional details, refer to Note 19
in our condensed consolidated financial statements. (4)
Non-recurring lease-related charges include the lease-related
impairment charge related to our corporate office space designated
for subleasing. For additional details, refer to Note 9 in our
condensed consolidated financial statements.
Adjusted Net Income and Adjusted Net Income Per
Share
Adjusted Net Income is a non-GAAP financial
measure that we define as net loss adjusted for (i) stock-based
compensation, (ii) amortization of acquired intangibles, (iii)
restructuring costs, (iv) acquisition-related costs, net, including
the change in fair value of contingent consideration liabilities,
(v) litigation costs, (vi) non-recurring lease-related charges, and
(vii) non-cash interest expense related to our convertible senior
notes. We believe Adjusted Net Income provides investors with
useful information on period-to-period performance as evaluated by
management and comparison with our past financial performance and
is useful in evaluating our operating performance compared to that
of other companies in our industry, as this metric generally
eliminates the effects of certain items that may vary from company
to company for reasons unrelated to overall operating
performance.
|
Three Months Ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
Numerator: |
(in thousands, except share and per share
amounts) |
Net loss |
$ |
(20,587 |
) |
|
$ |
(33,190 |
) |
Add: |
|
|
|
Stock-based compensation |
|
10,838 |
|
|
|
13,884 |
|
Amortization of acquired intangibles |
|
7,251 |
|
|
|
7,780 |
|
Restructuring costs |
|
1,813 |
|
|
|
2,055 |
|
Acquisition-related costs, net(1) |
|
813 |
|
|
|
481 |
|
Litigation costs(2) |
|
— |
|
|
|
11,664 |
|
Non-recurring lease-related charges(3) |
|
2,200 |
|
|
|
— |
|
Non-cash interest expense related to convertible senior notes |
|
379 |
|
|
|
377 |
|
Adjusted Net Income |
$ |
2,707 |
|
|
$ |
3,051 |
|
Denominator: |
|
|
|
Weighted-average shares outstanding used in calculating net loss
per share, basic and diluted, and Adjusted Net Income per share,
basic |
|
58,591,514 |
|
|
|
55,484,835 |
|
Non-GAAP dilutive effect of stock-based awards |
|
254,323 |
|
|
|
792,630 |
|
Non-GAAP weighted-average shares outstanding used in calculating
Adjusted Net Income per share, diluted |
|
58,845,837 |
|
|
|
56,277,465 |
|
|
|
|
|
Net loss per share, basic and diluted |
$ |
(0.35 |
) |
|
$ |
(0.60 |
) |
Adjusted Net Income per share, basic |
$ |
0.05 |
|
|
$ |
0.05 |
|
Adjusted Net Income per share, diluted |
$ |
0.05 |
|
|
$ |
0.05 |
|
______________(1) Restructuring costs include
severance and other team member costs from workforce reductions.
For additional details, refer to Note 19 in our condensed
consolidated financial statements. (2) Acquisition-related costs,
net includes third-party fees associated with due diligence,
deferred retention expenses, post-acquisition restructuring costs
incurred as part of business combinations, and changes in fair
value of contingent consideration liabilities for potential
earn-out payments.(3) Litigation costs include costs related to
litigation that are outside the ordinary course of our business.
For additional details, refer to Note 15 in our condensed
consolidated financial statements.(4) Non-recurring lease-related
charges include the lease-related impairment charge related to our
corporate office space designated for subleasing. For additional
details, refer to Note 9 in our condensed consolidated financial
statements.Health Catalyst Investor Relations
Contact:Jack KnightVice President, Investor Relations+1
(855)-309-6800ir@healthcatalyst.com
Health Catalyst Media Contact:Tarah Neujahr
BryanChief Marketing Officermedia@healthcatalyst.com
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