PLEASANTON, Calif., May 16, 2022 (GLOBE NEWSWIRE) -- Healthcare Triangle, Inc (NASDAQ:HCTI), a leading provider of Healthcare and Life Sciences cloud transformation, managed services and data analytics platform reported results for the quarter ended March 31, 2022. All comparisons below are to the same year-ago period unless otherwise noted.
Q1 2022 Financial Highlights
Revenue increased 39% to $11.1 million
Gross profit increased 33% to $2.9 million
Gross margins at 26%.
Achieved first quarterly positive cash flow from operations.
Q1 2022 Operational Highlights
Achieved HITRUST Risk-based, 2-year certification to manage risk, improve security posture, and meet compliance requirements.
Executed a contract with a major pharma company to build a Neutral Zone to collaborate globally across multiple datasets by employing end-to-end data governance and security controls using HITRUST certified environment.
Signed a blockchain deal with a large pharma company
Signed a deal with a large hospital for MEDITECH implementation and support
Secured a Cloud Backup and DR (disaster recovery) with one of the largest medical centres in the country
Closed a cloud and data transformation deal with an existing life sciences enterprise customer
Participated in Chime ViVE 2022, a leading Healthcare technology conference in Miami, Florida
We are happy to announce that Healthcare Triangle obtained HITRUST certification for our Cloud and Data Platforms; this demonstrates our commitment to highest standards of data, information security and places us in an elite group of organizations worldwide that have earned this certification, stated Suresh Venkatachari, CEO of Healthcare Triangle.
In Q1, we accelerated our revenue growth and achieved first quarter of positive cash flow from operations. The strong operational performance reflects the customer adoptions and strength of our offerings. The pipeline for new business is stronger than it has ever been, and we expect new customer wins to increase our revenues and consolidate our position as one of the fastest growing companies in the Healthcare Technology industry.
Thyagarajan Ramachandran, CFO of Healthcare Triangle, said: “We are pleased with our Q1 revenue growth of 39%. We continue to make progress across several key operational priorities and remain confident in the long-term opportunities and growth as we drive towards profitability.”
Q1 2022 Financial summary
Revenue in the first quarter of 2022 totaled $11.1 million, up 39% from $7.9 million. The increase was primarily due to increase in enterprises adopting Cloud and data transformation services.
Gross profit totaled $2.9 million, up 31% from $2.2 million. The increase in gross margin was primarily due to increase in revenue.
Selling, general and administrative expenses increased to $3.1 million compared to $1.9 million mainly due to higher investments in Sales & Marketing.
Net loss totaled $2 million or $(0.06) per share compared to a net loss of $0.8 million or $(0.03) per share due to additional investments in Sales & Marketing and ongoing efforts on innovation and R & D on our cloud and data platforms.
Cash and Net AR as on March 31, 2022, was $6.3 million.
Subsequent to the first quarter of 2022, we obtained working capital line of $10 million from Seacoast Business Funding, a division of Seacoast National Bank on May 2, 2022, which will accelerate our growth. We also repaid the short-term borrowing of $1.7 million towards the seller note from Devcool Inc., acquisition.
Forward-Looking Statements and Safe Harbor Notice
All statements other than statements of historical facts included in this press release are "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include our expectations and those statements that use forward-looking words such as "projected," "expect," "possibility" and "anticipate." The achievement or success of the matters covered by such forward-looking statements involve significant risks, uncertainties and assumptions. Actual results could differ materially from current projections or implied results. Investors should read the risk factors set forth in the Company's Prospectus filed with the SEC on October 7, 2021, previous filings, subsequent filings and future periodic reports filed with the SEC. All of the Company's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.
The Company cautions that statements and assumptions made in this news release constitute forward-looking statements and make no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. The information set forth herein speaks only as of the date hereof. The Company and its management undertake no obligation to revise these statements following the date of this news release.
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