FALSE000163642200016364222024-08-072024-08-07

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________________________________
FORM 8-K
__________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 7, 2024
__________________________________________________________
HEALTH CATALYST, INC.
(Exact name of registrant as specified in its charter)
________________________________________________________________
Delaware001-3899345-3337483
(State or other jurisdiction of
incorporation)
(Commission File Number)(IRS Employer
Identification No.)
10897 South River Front Parkway #300
South Jordan, UT 84095
(Address of principal executive offices, including zip code)

(801) 708-6800
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)
______________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: 
☐     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 
☐     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 
☐     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 
☐     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
______________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of exchange on which registered
Common Stock, par value $0.001 per shareHCATThe Nasdaq Global Select Market
________________________________________________________
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 ((§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐







Item 2.02. Results of Operations and Financial Condition.

On August 7, 2024, Health Catalyst, Inc. (the Company) issued a press release relating to its financial results for the quarter ended June 30, 2024. A copy of the press release and the Q2 2024 earnings release summary are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are each incorporated herein by reference.

The foregoing information (including the exhibits set forth in Item 9.01 hereto) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.
Exhibit No.Description
104Cover page Interactive Data File (embedded within the Inline XBRL document)

* Furnished herewith.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
HEALTH CATALYST, INC.
Date: August 7, 2024
By:/s/ Jason Alger
Jason Alger
Chief Financial Officer



Exhibit 99.1
healthcatalystlogo1aa.jpg

Health Catalyst Reports Second Quarter 2024 Results


SALT LAKE CITY, UT, August 7, 2024 — 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 June 30, 2024.

“For the second quarter of 2024, I am pleased by our strong financial results, including total revenue of $75.9 million and Adjusted EBITDA of $7.5 million, with these results exceeding the mid-point of our quarterly guidance on each metric. I am also pleased with our bookings performance through Q2 2024, especially as it relates to our net new Platform Subscription Clients. In the first half of 2024 we signed more net new Platform Subscription Clients than in all of 2023, and our updated expectations of low-20s net new Platform Subscription Clients would represent the strongest year in the company’s history for this metric.” said Dan Burton, CEO of Health Catalyst.

Financial Highlights for the Three Months Ended June 30, 2024

Key Financial Metrics
Three Months Ended June 30,Year over Year Change
20242023
GAAP Financial Measures:
(in thousands, except percentages, unaudited)
Total revenue$75,902 $73,213 4%
Gross profit
$28,806 $26,603 8%
Gross margin
38 %36 %
Net loss$(13,516)$(32,613)59%
Non-GAAP Financial Measures:(1)
Adjusted Gross Profit
$37,803 $36,423 4%
Adjusted Gross Margin
50 %50 %
Adjusted EBITDA$7,522 $3,513 114%
________________________
(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 third quarter of 2024, we expect:
•Total revenue between $74.5 million and $77.5 million, and
•Adjusted EBITDA between $6.0 million and $8.0 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, Wednesday, August 7, 2024, at 5:00 p.m. E.T. The conference call can be accessed by dialing (800) 267-6316 for U.S. participants, or (203) 518-9783 for international participants, and referencing conference ID “HCATQ224.” 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 third 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 June 30, 2024 expected to be filed with the SEC on or about August 7, 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 of
June 30,		As of
December 31,
20242023
(unaudited)
Assets
Current assets:
Cash and cash equivalents$201,895 $106,276 
Short-term investments106,361 211,452 
Accounts receivable, net54,898 60,290 
Prepaid expenses and other assets12,913 15,379 
Total current assets376,067 393,397 
Property and equipment, net25,555 25,712 
Intangible assets, net66,763 73,384 
Operating lease right-of-use assets11,627 13,927 
Goodwill206,295 190,652 
Other assets5,413 4,742 
Total assets$691,720 $701,814 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$10,599 $6,641 
Accrued liabilities18,048 23,282 
Deferred revenue56,355 55,753 
Operating lease liabilities3,335 3,358 
Contingent consideration liabilities894 — 
Convertible senior notes, net228,793 — 
Total current liabilities318,024 89,034 
Convertible senior notes, net of current portion— 228,034 
Deferred revenue, net of current portion51 77 
Operating lease liabilities, net of current portion16,540 17,676 
Other liabilities103 74 
Total liabilities334,718 334,895 
Stockholders’ equity:
Preferred stock, $0.001 par value per share; 25,000,000 shares authorized and no shares issued and outstanding as of June 30, 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 June 30, 2024 and December 31, 2023; 60,075,178 and 58,295,491 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively
1,508,437 1,484,056 
Accumulated deficit(1,151,273)(1,117,170)
Accumulated other comprehensive income (loss)
(162)33 
Total stockholders’ equity357,002 366,919 
Total liabilities and stockholders’ equity
$691,720 $701,814 



Condensed Consolidated Statements of Operations
(in thousands, except per share data, unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(in thousands)(in thousands)
Revenue:
Technology$47,635 $47,324 $94,601 $94,510 
Professional services28,267 25,889 56,024 52,571 
Total revenue75,902 73,213 150,625 147,081 
Cost of revenue, excluding depreciation and amortization:
Technology(1)(2)(3)
16,067 15,859 31,382 30,586 
Professional services(1)(2)(3)
23,993 23,579 47,195 47,156 
Total cost of revenue, excluding depreciation and amortization40,060 39,438 78,577 77,742 
Operating expenses:
Sales and marketing(1)(2)(3)
12,745 16,397 31,803 34,966 
Research and development(1)(2)(3)
13,884 17,590 28,755 34,672 
General and administrative(1)(2)(3)(4)(5)
14,363 23,671 28,927 47,504 
Depreciation and amortization10,657 10,735 21,182 21,729 
Total operating expenses51,649 68,393 110,667 138,871 
Loss from operations(15,807)(34,618)(38,619)(69,532)
Interest and other income, net
2,361 2,090 4,699 3,883 
Loss before income taxes(13,446)(32,528)(33,920)(65,649)
Income tax provision
70 85 183 154 
Net loss$(13,516)$(32,613)$(34,103)$(65,803)
Net loss per share, basic and diluted
$(0.23)$(0.58)$(0.58)$(1.18)
Weighted-average shares outstanding used in calculating net loss per share, basic and diluted
59,304 55,977 58,948 55,732 
_______________
(1)Includes stock-based compensation expense as follows:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Stock-Based Compensation Expense:(in thousands)(in thousands)
Cost of revenue, excluding depreciation and amortization:
Technology$391 $495 $756 $911 
Professional services1,349 1,981 2,681 3,755 
Sales and marketing2,452 5,458 6,442 10,900 
Research and development1,676 3,077 3,520 5,750 
General and administrative3,098 3,618 6,405 7,197 
Total$8,966 $14,629 $19,804 $28,513 



(2)    Includes acquisition-related costs (benefit), net, as follows:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Acquisition-related costs (benefit), net:(in thousands)(in thousands)
Cost of revenue, excluding depreciation and amortization:
Technology$104 $71 $169 $142 
Professional services117 101 208 202 
Sales and marketing523 101 587 202 
Research and development228 195 430 389 
General and administrative2,459 27 2,850 41 
Total$3,431 $495 $4,244 $976 

(3)    Includes restructuring costs as follows:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Restructuring costs:(in thousands)(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 administrative275 — 936 118 
Total$275 $— $2,088 $2,055 

(4)    Includes litigation costs as follows:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Litigation costs:(in thousands)(in thousands)
General and administrative$— $9,591 $— $21,255 
Total$— $9,591 $— $21,255 

(5)    Includes non-recurring lease-related charges as follows:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Non-recurring lease-related charges:(in thousands)(in thousands)
General and administrative$— $2,681 $2,200 $2,681 
Total$— $2,681 $2,200 $2,681 





Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
Six Months Ended June 30,
20242023
Cash flows from operating activities
Net loss$(34,103)$(65,803)
Adjustments to reconcile to net loss to net cash provided by (used in) operating activities:
Stock-based compensation expense19,804 28,513 
Depreciation and amortization21,182 21,729 
Impairment of long-lived assets2,200 2,681 
Non-cash operating lease expense1,434 1,537 
Amortization of debt discount and issuance costs759 754 
Investment discount and premium accretion(3,148)(3,999)
Provision for expected credit losses3,438 1,527 
Deferred tax provision16 4 
Other12 31 
Change in operating assets and liabilities:
Accounts receivable, net2,047 (5,936)
Prepaid expenses and other assets1,922 321 
Accounts payable, accrued liabilities, and other liabilities(2,380)(1,295)
Deferred revenue501 4,554 
Operating lease liabilities(1,806)(1,772)
Net cash provided by (used in) operating activities
11,878 (17,154)
Cash flows from investing activities
Proceeds from the sale and maturity of short-term investments158,200 188,600 
Purchase of short-term investments(50,197)(165,188)
Acquisition of businesses, net of cash acquired(18,659)— 
Capitalization of internal-use software(6,287)(6,389)
Purchase of intangible assets(365)(968)
Purchases of property and equipment(498)(832)
Proceeds from the sale of property and equipment7 11 
Net cash provided by investing activities
82,201 15,234 
Cash flows from financing activities
Proceeds from employee stock purchase plan1,431 2,206 
Proceeds from exercise of stock options130 897 
Repurchase of common stock— (1,808)
Net cash provided by financing activities
1,561 1,295 
Effect of exchange rate changes on cash and cash equivalents(21)2 
Net increase (decrease) in cash and cash equivalents95,619 (623)
Cash and cash equivalents at beginning of period106,276 116,312 
Cash and cash equivalents at end of period$201,895 $115,689 


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 June 30, 2024 and 2023:

Three Months Ended June 30, 2024
(in thousands, except percentages)
TechnologyProfessional ServicesTotal
Revenue$47,635 $28,267 $75,902 
Cost of revenue, excluding depreciation and amortization(16,067)(23,993)(40,060)
Amortization of intangible assets, cost of revenue(4,583)— (4,583)
Depreciation of property and equipment, cost of revenue(2,453)— (2,453)
Gross profit
24,532 4,274 28,806 
Gross margin
51 %15 %38 %
Add:
Amortization of intangible assets, cost of revenue
4,583 — 4,583 
Depreciation of property and equipment, cost of revenue
2,453 — 2,453 
Stock-based compensation391 1,349 1,740 
Acquisition-related costs, net(1)
104 117 221 
Adjusted Gross Profit$32,063 $5,740 $37,803 
Adjusted Gross Margin67 %20 %50 %
___________________
(1)Acquisition-related costs, net include deferred retention expenses attributable to the Carevive, ARMUS, and KPI Ninja acquisitions.

Three Months Ended June 30, 2023
(in thousands, except percentages)
TechnologyProfessional ServicesTotal
Revenue$47,324 $25,889 $73,213 
Cost of revenue, excluding depreciation and amortization(15,859)(23,579)(39,438)
Amortization of intangible assets, cost of revenue(4,875)— (4,875)
Depreciation of property and equipment, cost of revenue(2,297)— (2,297)
Gross profit24,293 2,310 26,603 
Gross margin51 %9 %36 %
Add:
Amortization of intangible assets, cost of revenue4,875 — 4,875 
Depreciation of property and equipment, cost of revenue2,297 — 2,297 
Stock-based compensation495 1,981 2,476 
Acquisition-related costs, net(1)
71 101 172 
Adjusted Gross Profit$32,031 $4,392 $36,423 
Adjusted Gross Margin68 %17 %50 %
___________________
(1)Acquisition-related costs, net include deferred retention expenses attributable to the ARMUS and KPI Ninja acquisitions.




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 June 30, 2024 and 2023:
Three Months Ended June 30,
20242023
(in thousands)
Net loss$(13,516)$(32,613)
Add:
Interest and other (income) expense, net(2,361)(2,090)
Income tax provision70 85 
Depreciation and amortization10,657 10,735 
Stock-based compensation8,966 14,629 
Acquisition-related costs, net(1)
3,431 495 
Litigation costs(2)
— 9,591 
Restructuring costs(3)
275 — 
Non-recurring lease-related charges(4)
— 2,681 
Adjusted EBITDA$7,522 $3,513 
__________________
(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 June 30,
20242023
Numerator:(in thousands, except share and per share amounts)
Net loss$(13,516)$(32,613)
Add:
Stock-based compensation
8,966 14,629 
Amortization of acquired intangibles7,535 7,549 
Restructuring costs(1)
275 — 
  Acquisition-related costs, net(2)
3,431 495 
Litigation costs(3)
— 9,591 
Non-recurring lease-related charges(4)
— 2,681 
 Non-cash interest expense related to convertible senior notes 380 377 
Adjusted Net Income
$7,071 $2,709 
Denominator:
Weighted-average shares outstanding used in calculating net loss per share, basic and diluted, and Adjusted Net Income per share, basic
59,303,791 55,976,870 
Non-GAAP dilutive effect of stock-based awards
165,226 731,945 
Non-GAAP weighted-average shares outstanding used in calculating Adjusted Net Income per share, diluted
59,469,017 56,708,815 
Net loss per share, basic and diluted
$(0.23)$(0.58)
Adjusted Net Income per share, basic
$0.12 $0.05 
Adjusted Net Income per share, diluted
$0.12 $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 Knight
Vice President, Investor Relations
+1 (855)-309-6800
ir@healthcatalyst.com

Health Catalyst Media Contact:
Tarah Neujahr Bryan
Chief Marketing Officer
media@healthcatalyst.com


© Health Catalyst. • In 1H 2024 we signed more net new Platform Subscription Clients than in all of 2023, and our updated expectations of low-20s net new Platform Subscription Clients would represent the strongest year in the company’s history for this metric. • We announced multiple client wins including: SingHealth, the largest group of healthcare organizations in Singapore, and Adena, a 4-hospital system in Ohio, as new clients and an expansion with South Dakota Health Link, a longstanding Health Information Exchange client. As a note, we typically see Health Information Exchange and international contracts take longer to fully ramp into revenue due to lengthier implementation timelines. • We are pleased to have announced in July that we entered into a new Credit Facility for up to $225 million with Silver Point Finance, providing us with dry powder to fuel inorganic growth that enables us to continue to be a consolidation platform for our clients. • We announced the acquisitions of Carevive and Lumeon and these acquisitions provide additional cross-sell opportunity within our expanding client base. • With the combination of growth from new clients, expansions with existing clients, additional non-recurring revenue, and momentum from acquisitions, we have renewed confidence in our expectation that we will return to double digit topline growth and achieve ~50% Adjusted EBITDA growth in 2025. Health Catalyst Q2 2024 Financial Highlights & Key Themes 1 • Q2 2024 Total Revenue: $75.9M; above guidance midpoint (range of $73.5M to $76.5M) • Q2 2024 Net Loss: $13.5M; no guidance was previously provided • Q2 2024 Adjusted EBITDA(1): $7.5M; above guidance midpoint (range of $5.0M to $7.0M) Q2 2024 Revenue, Net Loss and Adjusted EBITDA 2024 Guidance and Forward-Looking Commentary • Reiterating FY 2024 Revenue guidance of $304M to $312M • Guiding to Q3 2024 Revenue of $74.5M to $77.5M • Reiterating FY 2024 Adjusted EBITDA(2) guidance of $24M to $26M • Guiding to Q3 2024 Adjusted EBITDA(2) of $6.0M to $8.0M • We are updating our FY 2024 bookings expectations for both net new Platform Subscription Clients(3) and Dollar-Based Retention Rate. • For FY 2024, we anticipate net new Platform Subscription Clients(3) in the low 20s with an average ARR + non-recurring revenue falling between $400,000 and $1 million. • For FY 2024, we anticipate Dollar-Based Retention of 100% - 106%. This Dollar-Based Retention Rate range excludes an additional expected ~3-4 pts of 2025 revenue growth from non-recurring expansions. Key Themes and Recent Wins Note: This summary 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 third quarter and full year 2024. See press release dated August 7, 2024 furnished as Exhibit 99.1 on a Current Report on Form 8-K filed with the Securities and Exchange Commission on August 7, 2024 for additional information about our forward-looking statements. (1) See "Non-GAAP Financial Measures--Adjusted EBITDA" in the press release dated August 7, 2024 furnished as Exhibit 99.1 on a Current Report on Form 8-K filed with the Securities and Exchange Commission on August 7, 2024. (2) We have not reconciled guidance for Adjusted EBITDA to net loss, the most directly comparable measure calculated in accordance with GAAP, and have not provided forward-looking guidance for 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. (3) Platform Subscription Clients (also referred to as DOS Subscription Clients) include clients who directly or indirectly access our DOS platform or Health Catalyst Ignite via a technology subscription contract. Indirect access may include platform module components such as Healthcare.AI, Pop Analyzer, IDEA, and other platform components.

 
v3.24.2.u1
Cover Page
Aug. 07, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 07, 2024
Entity Registrant Name HEALTH CATALYST, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-38993
Entity Tax Identification Number 45-3337483
Entity Address, Address Line One 10897 South River Front Parkway
Entity Address, Address Line Two #300
Entity Address, City or Town South Jordan
Entity Address, State or Province UT
Entity Address, Postal Zip Code 84095
City Area Code 801
Local Phone Number 708-6800
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol HCAT
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001636422
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