Ontrak Inc Reports Second Quarter 2024 Financial Results
Ontrak, Inc. Reports Second Quarter 2024 Financial Results
Ontrak, Inc. (NASDAQ:OTRK), a leading AI-powered behavioral healthcare company, has announced its expected financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
Financial Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimate |
---|---|---|---|---|
Revenue | $2.5M | $3.0M | -17% | $2.6M |
EPS | -$0.19 | -$1.84 | N/A | -$0.1 |
Operating Loss | -$4.0M | -$4.6M | +13% | N/A |
Adjusted EBITDA | -$3.3M | -$3.1M | -8% | N/A |
Interpretation: The financial performance of Ontrak in Q2 2024 shows a decline in revenue by 17% YoY and an EPS that underperforms against the consensus estimate. Despite the poorer revenue, the operating loss improved by 13% compared to the same quarter last year. However, Adjusted EBITDA declined by 8% YoY, indicating mixed results in financial efficiency.
Revenue Performance by Segment
Segment | Q2 2024 | Previous Guidance | Deviation |
---|---|---|---|
WholeHealth+ Program | $2.5M | N/A | N/A |
Interpretation: Revenue entirely attributed to the WholeHealth+ program. There was no comparative guidance provided for this breakdown.
Key Operational Data
Operational Metric | Q2 2024 | Q1 2024 | Q2 2023 |
---|---|---|---|
Total Enrolled Members (WholeHealth+) | 1,752 | 1,521 | 1,889 |
Total Callable Outreach Pool (WH+) | 7,511 | 5,057 | 10,879 |
Total Callable Outreach Pool (Engage) | 589 | N/A | N/A |
Interpretation: The data shows a quarter-over-quarter increase in total enrolled members and callable outreach pool for WholeHealth+. However, there is a year-over-year decrease indicating potential challenges in long-term member retention.
Comments from Company's Officers
Brandon LaVerne, CEO and COO, stated, "The contract with our newest customer could approximately double our current outreach pool for our WholeHealth+ solution. This partnership signifies a pivotal moment for Ontrak in our quest for sustained growth. Our innovative initiatives like the Mental Health Digital Twin and Comprehensive Healthcare Integration framework solidify our commitment to delivering high-quality, personalized behavioral healthcare."
Dividends/Share Repurchase Program
The report did not mention any announced dividends or share repurchase program.
Forward Guidance
For the quarter ending September 30, 2024, Ontrak provides revenue guidance in the range of $2.4 million to $2.8 million.
Stock Price Movement
Following the earnings release, Ontrak's stock experienced a 6.75% increase in value.
Conclusion
Ontrak, Inc. reported mixed financial results for the second quarter of 2024, with significant improvements in operational efficiency but notable declines in revenue and Adjusted EBITDA. The new partnership with a northeast regional health plan and forward-looking initiatives suggests potential for future growth. The company's forward guidance remains cautious but optimistic, aligned with strategic enhancements in their healthcare solutions.
For more information, visit www.ontrakhealth.com .
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