Health Catalyst Inc (HCAT) Reports 8% Revenue Growth in Q3 2023
Health Catalyst Inc (NASDAQ:HCAT) reported Q3 2023 total revenue of $73.8 million, an 8% increase year over year.
The company's Adjusted EBITDA for the quarter was $2.0 million, a significant improvement from a loss of $4.554 million in Q3 2022.
HCAT's net loss decreased by 52% year over year, from $45.735 million in Q3 2022 to $22.032 million in Q3 2023.
The company raised its full-year 2023 revenue guidance and reiterated its full-year 2023 Adjusted EBITDA guidance.
On November 2, 2023, Health Catalyst Inc (NASDAQ:HCAT), a leading provider of data and analytics technology and services to healthcare organizations, released its financial results for the quarter ended September 30, 2023. The company reported strong financial results, including an 8% year-over-year increase in total revenue to $73.8 million and a positive Adjusted EBITDA of $2.0 million.
Financial Performance Overview
The company's technology revenue increased by 4% to $45.973 million, while professional services revenue saw a 14% increase to $27.8 million. The loss from operations was reduced by 46% to $24.58 million, and the net loss decreased by 52% to $22.032 million.
Non-GAAP Financial Data
Adjusted Technology Gross Profit increased by 5% to $31.367 million, with an Adjusted Technology Gross Margin of 68%. Adjusted Professional Services Gross Profit was $3.205 million, a decrease of 36% from the previous year, with an Adjusted Professional Services Gross Margin of 12%. The Total Adjusted Gross Profit was $34.572 million, a slight decrease of 1% from the previous year, with a Total Adjusted Gross Margin of 47%.
Financial Outlook
For the fourth quarter of 2023, HCAT expects total revenue between $70.1 million and $75.1 million, and Adjusted EBITDA between $0.3 million and $2.3 million. For the full year of 2023, the company expects total revenue between $291.0 million and $296.0 million, and Adjusted EBITDA between $10.0 million and $12.0 million.
Balance Sheet Highlights
As of September 30, 2023, HCAT had cash and cash equivalents of $94.971 million and short-term investments of $252.726 million. The total assets were $712.920 million, and total liabilities were $330.526 million. The company's total stockholders' equity was $382.394 million.
CEO of Health Catalyst, Dan Burton, expressed satisfaction with the company's Q3 2023 financial results, stating,
For the third quarter of 2023, I am pleased by our strong financial results, including total revenue of $73.8 million and Adjusted EBITDA of $2.0 million, with these results beating the mid-point of our quarterly guidance on each metric."
He also highlighted the company's commitment to team member engagement, stating,
We as a leadership team continue to maintain a primary, prioritized focus on team member engagement the center of our strategic flywheel because we recognize the central and foundational contributions that our team members make in building the software and providing the services expertise that enable our clients to achieve massive, measurable improvement."
Explore the complete 8-K earnings release (here) from Health Catalyst Inc for further details.
This article first appeared on GuruFocus.
