SALT LAKE CITY, Aug. 08, 2023 (GLOBE NEWSWIRE) -- Health Catalyst, Inc. ("Health Catalyst," HCAT), a leading provider of data and analytics technology and services to healthcare organizations, today reported financial results for the quarter ended June 30, 2023.
“For the second quarter of 2023, we are encouraged by our financial results, including total revenue of $73.2 million and Adjusted EBITDA of $3.5 million, with these results beating the mid-point of our quarterly guidance on each metric. Additionally, given that we are tracking slightly ahead of our previous full year revenue and Adjusted EBITDA guidance, we are raising our 2023 revenue and Adjusted EBITDA guidance. We are pleased with our strong first half bookings performance and continued pipeline growth. As a result, we are reiterating our full year 2023 bookings expectations, inclusive of dollar-based retention rate and net new DOS subscription client additions. We are also encouraged to have received multiple additional external recognitions related to our team member engagement once again this quarter,” said Dan Burton, CEO of Health Catalyst.
Financial Highlights for the Three Months Ended June 30, 2023
Key Financial Metrics
| Three Months Ended June 30, | Year over Year | |||||||||
| 2023 | 2022 | Change | ||||||||
| GAAP Financial Data: | (in thousands, except percentages, unaudited) | |||||||||
| Technology revenue | $ | 47,324 | $ | 45,397 | 4 | % | ||||
| Professional services revenue | $ | 25,889 | $ | 25,236 | 3 | % | ||||
| Total revenue | $ | 73,213 | $ | 70,633 | 4 | % | ||||
| Loss from operations | $ | (34,618 | ) | $ | (33,192 | ) | (4 | )% | ||
| Net loss | $ | (32,613 | ) | $ | (33,428 | ) | 2 | % | ||
| Other Non-GAAP Financial Data:(1) | ||||||||||
| Adjusted Technology Gross Profit | $ | 32,031 | $ | 31,968 | — | % | ||||
| Adjusted Technology Gross Margin | 68 | % | 70 | % | ||||||
| Adjusted Professional Services Gross Profit | $ | 4,392 | $ | 6,696 | (34 | )% | ||||
| Adjusted Professional Services Gross Margin | 17 | % | 27 | % | ||||||
| Total Adjusted Gross Profit | $ | 36,423 | $ | 38,664 | (6 | )% | ||||
| Total Adjusted Gross Margin | 50 | % | 55 | % | ||||||
| Adjusted EBITDA | $ | 3,513 | $ | 1,999 | 76 | % | ||||
________________________
(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 2023, we expect:
- Total revenue between $70.2 million and $74.2 million, and
- Adjusted EBITDA between $0.0 million and $2.5 million
For the full year of 2023, we expect:
- Total revenue between $290.5 million and $295.5 million, and
- Adjusted EBITDA between $10.0 million and $12.0 million
We have not reconciled guidance for Adjusted EBITDA to net loss, the most directly comparable GAAP measure, 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.
Quarterly Conference Call Details
The company will host a conference call to review the results today, Tuesday, August 8, 2023, 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 Q223.” 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 Q3 and fiscal year 2023. 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, 2023 expected to be filed with the SEC on or about August 8, 2023 and the Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 28, 2023. 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, | ||||||
| 2023 | 2022 | ||||||
| (unaudited) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 115,689 | $ | 116,312 | |||
| Short-term investments | 228,140 | 247,178 | |||||
| Accounts receivable, net | 52,378 | 47,970 | |||||
| Prepaid expenses and other assets | 14,744 | 16,335 | |||||
| Total current assets | 410,951 | 427,795 | |||||
| Property and equipment, net | 26,121 | 25,928 | |||||
| Intangible assets, net | 79,041 | 92,189 | |||||
| Operating lease right-of-use assets | 15,725 | 16,658 | |||||
| Goodwill | 185,982 | 185,982 | |||||
| Other assets | 5,083 | 3,734 | |||||
| Total assets | $ | 722,903 | $ | 752,286 | |||
| Liabilities and stockholders’ equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 7,974 | $ | 4,424 | |||
| Accrued liabilities | 15,791 | 19,691 | |||||
| Deferred revenue | 59,526 | 54,961 | |||||
| Operating lease liabilities | 3,468 | 3,434 | |||||
| Total current liabilities | 86,759 | 82,510 | |||||
| Convertible senior notes | 227,277 | 226,523 | |||||
| Deferred revenue, net of current portion | 94 | 105 | |||||
| Operating lease liabilities, net of current portion | 18,781 | 18,017 | |||||
| Other liabilities | 125 | 121 | |||||
| Total liabilities | 333,036 | 327,276 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity: | |||||||
| Preferred stock, $0.001 par value per share; 25,000,000 shares authorized as of June 30, 2023 and December 31, 2022; no shares issued and outstanding as of June 30, 2023 and December 31, 2022 | — | — | |||||
| Common stock, $0.001 par value per share, and additional paid-in capital; 500,000,000 shares authorized as of June 30, 2023 and December 31, 2022; 56,541,641 and 55,261,922 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | 1,454,897 | 1,424,681 | |||||
| Accumulated deficit | (1,064,826 | ) | (999,023 | ) | |||
| Accumulated other comprehensive loss | (204 | ) | (648 | ) | |||
| Total stockholders’ equity | 389,867 | 425,010 | |||||
| Total liabilities and stockholders’ equity | $ | 722,903 | $ | 752,286 | |||
| Condensed Consolidated Statements of Operations (in thousands, except per share data, unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| (in thousands) | (in thousands) | ||||||||||||||
| Revenue: | |||||||||||||||
| Technology | $ | 47,324 | $ | 45,397 | $ | 94,510 | $ | 87,627 | |||||||
| Professional services | 25,889 | 25,236 | 52,571 | 51,093 | |||||||||||
| Total revenue | 73,213 | 70,633 | 147,081 | 138,720 | |||||||||||
| Cost of revenue, excluding depreciation and amortization shown below: | |||||||||||||||
| Technology(1)(2)(3) | 15,859 | 13,996 | 30,586 | 27,323 | |||||||||||
| Professional services(1)(2)(3) | 23,579 | 20,611 | 47,156 | 41,280 | |||||||||||
| Total cost of revenue, excluding depreciation and amortization | 39,438 | 34,607 | 77,742 | 68,603 | |||||||||||
| Operating expenses: | |||||||||||||||
| Sales and marketing(1)(2)(3) | 16,397 | 20,922 | 34,966 | 41,740 | |||||||||||
| Research and development(1)(2)(3) | 17,590 | 18,148 | 34,672 | 35,296 | |||||||||||
| General and administrative(1)(2)(3)(4)(5) | 23,671 | 17,536 | 47,504 | 26,359 | |||||||||||
| Depreciation and amortization | 10,735 | 12,612 | 21,729 | 24,261 | |||||||||||
| Total operating expenses | 68,393 | 69,218 | 138,871 | 127,656 | |||||||||||
| Loss from operations | (34,618 | ) | (33,192 | ) | (69,532 | ) | (57,539 | ) | |||||||
| Interest and other income (expense), net | 2,090 | ||||||||||||||
