Health Catalyst Inc (HCAT) reports revenue growth and profit expansion for fourth quarter and full year 2023

• Total income: In 2023, it will increase by 7% from the previous year to $295.9 million.

• Adjusted EBITDA: This was a significant increase to $11 million, an increase of 543% from the previous year.

• Technology income: This was a 6% increase compared to the previous year, driving the company’s growth.

• Professional services revenue: This was an increase of 14% compared to the previous year.

• Net loss: This was a 14% improvement compared to the same period last year, with a 9% decrease in operating loss.

• Dollar-based retention rate: The year ended December 31, 2023 remained strong at 100%.

On February 22, 2024, Health Catalyst Inc (NASDAQ:HCAT) released its 8-K filing, announcing its financial results for the fourth quarter and year ended December 31, 2023. The company, a leader in providing data and analytics technology, reported a 7% increase in annual total revenue to $295.9 million in healthcare services, exceeding the midpoint of guidance. Adjusted EBITDA also showed a significant increase, reaching $11 million. This is in line with the company’s expectations and represents a 543% year-over-year increase.

Health Catalyst operates in two segments. Professional services that combine technology, a primary revenue driver through cloud-based subscription agreements, with analysis, implementation, and advisory services. Technology segment revenue increased 6% to $187.6 million, while Professional Services revenue increased 8% to $108.4 million.

Financial performance and leadership changes

Health Catalyst CEO Dan Burton expressed satisfaction with the company’s performance and progress in adjusted EBITDA margin compared to 2022. The company also announced leadership changes, with Brian Hunt moving from CFO to strategic advisor and Jason Alger becoming CFO. Dan LeSueur has been promoted to Chief Operating Officer and will oversee both the Technology and Professional Services business units.

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Key financial indicators

The company’s GAAP financial metrics showed a 14% improvement in net loss and a 9% decrease in operating loss from the prior year period. Non-GAAP metrics also reflected positive trends, with adjusted technology gross margin increasing 4% year-over-year and adjusted EBITDA increasing 543%. However, adjusted professional services gross profit decreased by 31%, demonstrating the challenge of maintaining profitability in the segment.

Health Catalyst’s balance sheet remains strong, with cash and cash equivalents of $106.3 million and short-term investments of $211.5 million as of December 31, 2023. The company’s dollar retention rate remains strong at 100%, reflecting customer loyalty and product strength. sticky.

Outlook and conference details

Looking forward, Health Catalyst is providing guidance for the first quarter and full year 2024, expecting first-quarter total revenue of $72.5 million to $76.5 million and adjusted EBITDA of $2 million to $4 million. Masu. For the full year, the company expects total revenue to be between $304 million and $312 million and adjusted EBITDA between $24 million and $26 million.

The company will host a conference call to discuss the results and provide an opportunity for investors and analysts to gain further insight into the company’s performance and strategic direction.

Health Catalyst’s commitment to being a data-driven catalyst for large-scale, measurable healthcare improvements is evident in its financial results and operational performance. The company’s focus on data and analytics technology, along with changes in strategic leadership, positions it well for continued growth and operational excellence in the dynamic healthcare industry.

Please see the entire 8-K filing for more detailed financial information and disclosures.

For more information, see Health Catalyst Inc’s full 8-K earnings release here.

This article first appeared on GuruFocus.