SALT LAKE CITY, Feb. 26, 2025 (GLOBE NEWSWIRE) -- 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 and year ended December 31, 2024.
"For the full year 2024, I am pleased to share that we achieved strong performance across our business, including total revenue of $307 million and Adjusted EBITDA of $26 million. Additionally, I am encouraged with our Technology segment, which had revenue of $195 million for full-year 2024 and $52 million for the fourth quarter of 2024, which represents 10% growth year-over-year. I am pleased with this progress and excited that we anticipate a continued reacceleration of topline growth for full year 2025, with our Tech segment growing faster than the total business. Likewise, I am pleased with our profitability progress and excited that we have raised our target for 2025 Adjusted EBITDA by $2 million, to approximately $41 million.” said Dan Burton, CEO of Health Catalyst.
"As part of our annual planning process, we're grateful to share a few governance and leadership updates. First, we are thrilled to welcome Dr. Jill Hoggard Green to the Health Catalyst Board of Directors as of December 1, 2024. Jill is the former Chief Executive Officer of The Queens Health System and has been an extraordinary leader throughout her career. We are excited for Jill to be a member of our Board. Next, we wanted to take a moment to thank Anita Pramoda for her dedicated service as a member of our Board. After nearly a decade, she will complete her service on March 1, 2025. We are deeply grateful for her meaningful contributions. Finally, I'm excited to announce recent promotions to our leadership team. Dr. Daniel Samarov has been promoted to Chief AI Officer. In addition, Allie Coronis, Senior Vice President of Tech-Enabled Managed Services, and Dan Heinmiller, Senior Vice President of Implementation Services, have been appointed to our company-wide leadership team. We're looking forward to the meaningful impact these leaders will have in their new roles."
Financial Highlights for the Three and Twelve Months Ended December 31, 2024
Key Financial Measures
| Three Months Ended December 31, | Year over Year Change
| Twelve Months Ended December 31, | Year over Year Change
| ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
| GAAP Financial Measures: | (in thousands, except percentages) | (in thousands, except percentages)
| |||||||||||||||||||||||
| Revenue | $ | 79,606 | $ | 75,084 | 6% | $ | 306,584 | $ | 295,938 | 4% | |||||||||||||||
| Gross profit | $ | 28,618 | $ | 23,902 | 20% | $ | 114,503 | $ | 104,002 | 10% | |||||||||||||||
| Gross margin | 36 | % | 32 | % | 37 | % | 35 | % | |||||||||||||||||
| Net loss | $ | (20,673 | ) | $ | (30,312 | ) | 32% | $ | (69,502 | ) | $ | (118,147 | ) | 41% | |||||||||||
| Non-GAAP Financial Measures:(1) | |||||||||||||||||||||||||
| Adjusted Gross Profit | $ | 37,121 | $ | 34,693 | 7% | $ | 149,533 | $ | 144,060 | 4% | |||||||||||||||
| Adjusted Gross Margin | 47 | % | 46 | % | 49 | % | 49 | % | |||||||||||||||||
| Adjusted EBITDA | $ | 7,911 | $ | 1,352 | 485% | $ | 26,105 | $ | 11,021 | 137% | |||||||||||||||
(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.
Other Key Metrics
| As of December 31, | ||||||||
| 2024 | 2023 | 2022 | ||||||
| Platform Clients(1) | 130 | 109 | 98 | |||||
| Year Ended December 31, | ||||||||
| 2024 | 2023 | 2022 | ||||||
| Dollar-based Retention Rate (legacy)(2) | 100 | % | 100 | % | 100 | % | ||
| Dollar-based Retention Rate (Tech + TEMS)(3) | 102 | % | ||||||
(1) We have updated the name and definition of this key metric to Platform Clients from DOS Subscription Clients to better reflect the deep, long-standing, multi-faceted relationships we strive to build with the entities we serve. Platform Clients have historically been defined as clients who directly or indirectly access our platform via a technology subscription contract. Direct access to our platform has included access to our DOS platform, Ignite platform, or Ninja Universe. Indirect access to our platform has included platform module components such as Ignite connectors, Healthcare.AI, Pop Analyzer, IDEA, and other platform components. Given the modularity of our Ignite platform, we anticipate Ignite infrastructure will be included in all of our technology Solutions in the near future and many of our Solutions already include Ignite components. Accordingly, beginning in 2025, Platform Clients will be defined as: (i) all Platform Clients as of December 31, 2024 under our historical definition (i.e., these clients will be included in our Platform Client count going forward until they cease to have an active subscription as of the end of the period), and (ii) going forward in 2025 and beyond, any technology client that signs contracts with at least $100,000 of incremental total annual recurring revenue (ARR) and non-recurring revenue in a given calendar year, inclusive of clients that come through acquisition if we first begin recognizing revenue for the client post-acquisition and that total ARR and non-recurring revenue exceeds $100,000 in that calendar year, so long as such client maintains an active subscription as of the end of the period. Once a client is designated as a Platform Client, it will continue to be a Platform Client unless it is no longer a client with an active subscription as of the end of the period. Please see our Annual Report on Form 10-K for the year ended December 31, 2024 expected to be filed with the SEC on or about February 26, 2025 for additional information.
(2) Dollar-based Retention Rate (legacy) is calculated as of a period end by starting with the sum of the technology and professional services ARR from our Platform Clients as of the date 12 months prior to such period end and then calculating the sum of the ARR from these same clients as of the current period end. Please see our Annual Report on Form 10-K for the year ended December 31, 2024 expected to be filed with the SEC on or about February 26, 2025 for additional information.
(3) Dollar-based Retention Rate (Tech + TEMS) is calculated as of a period end by starting with the sum of the technology ARR and Tech-Enabled Managed Services (TEMS) ARR from our Platform Clients as of the date 12 months prior to such period end (this calculation excludes professional services ARR and non-recurring revenue), calculating the sum of the ARR from these same clients as of the current period end (which includes any upsells and also reflects contraction or attrition over the trailing twelve months but excludes revenue from new Platform Clients added in the current period who were not clients at the beginning of such period; this current period ARR may include acquired ARR from clients that overlap with the Platform Clients in a given calendar year), and then dividing the current period ARR by the prior period ARR. Please see our Annual Report on Form 10-K for the year ended December 31, 2024 expected to be filed with the SEC on or about February 26, 2025 for additional information.
Financial Outlook
Health Catalyst provides forward-looking guidance on total revenue, a GAAP measure, and Adjusted EBITDA, a non-GAAP measure.
For the first quarter of 2025, we expect:
- Total revenue of approximately $79 million, and
- Adjusted EBITDA of approximately $4 million
- Total revenue of approximately $335 million,
- Technology revenue of approximately $220 million, and
- Adjusted EBITDA of approximately $41 million
Quarterly Conference Call Details
We will host a conference call to review the results today, Wednesday, February 26, 2025, at 5:00 p.m. E.T. The conference call can be accessed by dialing (800) 343-5172 for U.S. participants, or (203) 518-9856 for international participants, and referencing conference ID "HCATQ424.” 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 (Nasdaq: HCAT) is a leading provider of data and analytics technology and services that ignite smarter healthcare, lighting the path to measurable clinical, financial, and operational improvement. More than 1,000 organizations worldwide rely on Health Catalyst's offerings, including our cloud-based technology ecosystem Health Catalyst Ignite™, AI-enabled data and analytics solutions, and expert services to drive meaningful outcomes across hundreds of millions of patient records. Powered by high-value data, standardized measures and registries, and deep healthcare domain expertise, Ignite helps organizations transform complex information into actionable insights. Backed by a multi-decade mission and a proven track record of delivering billions of dollars in measurable results, Health Catalyst continues to serve as the catalyst for massive, measurable, data-informed healthcare improvement and innovation.
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 (including on LinkedIn), 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 Q1 and fiscal year 2025. 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) macroeconomic challenges (including high inflationary and/or high interest rate environments, or market volatility caused by bank failures and measures taken in response thereto) and any new public health crisis; 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 September 30, 2024 that was filed with the SEC on November 7, 2024 and the Annual Report on Form 10-K for the year ended December 31, 2024 expected to be filed with the SEC on or about February 26, 2025. 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.
| Consolidated Balance Sheets (in thousands, except share and per share data) | |||||||
| As of December 31, | |||||||
| 2024 | 2023 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 249,645 | $ | 106,276 | |||
| Short-term investments | 142,355 | 211,452 | |||||
| Accounts receivable, net | 57,182 | 60,290 | |||||
| Prepaid expenses and other assets | 16,468 | 15,379 | |||||
| Total current assets | 465,650 | 393,397 | |||||
| Property and equipment, net | 29,394 | 25,712 | |||||
| Intangible assets, net | 86,052 | 73,384 | |||||
| Operating lease right-of-use assets | 12,058 | 13,927 | |||||
| Goodwill | 259,759 | 190,652 | |||||
| Other assets | 6,016 | 4,742 | |||||
| Total assets | $ | 858,929 | $ | 701,814 | |||
| Liabilities and stockholders' equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 11,433 | $ | 6,641 | |||
| Accrued liabilities | 26,340 | 23,282 | |||||
| Deferred revenue(1) | 53,281 | 55,753 | |||||
| Operating lease liabilities | 3,614 | 3,358 | |||||
| Current portion of long-term debt | 231,182 | - | |||||
| Total current liabilities | 325,850 | 89,034 | |||||
| Long-term debt, net of current portion | 151,178 | 228,034 | |||||
| Deferred revenue, net of current portion | 249 | 77 | |||||
| Operating lease liabilities, net of current portion | 16,291 | 17,676 | |||||
| Other liabilities | 154 | 74 | |||||
| Total liabilities | 493,722 | 334,895 | |||||
| Stockholders' equity: | |||||||
| Preferred stock, $0.001 par value per share; 25,000
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