HCAT Earnings Prediction
The chart below shows how HCAT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HCAT sees a +9.03% change in stock price 10 days leading up to the earnings, and a +0.88% change 10 days following the report. On the earnings day itself, the stock moves by -1.79%. This data can give you a slight idea of what to expect for the next quarter's release.
HCAT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
76.35M
3.50%
0.59%
Gross Margin
31.88%
7.16%
-4.98%
Operating Margin
-15.98%
-47.43%
0.25%
Net Margin
-19.29%
-35.40%
8.31%
EPS
-0.24
-38.46%
4.35%
No Data Available
HCAT Earnings Analysis
Health Catalyst, Inc Common Stock Corporation (HCAT.O) Earnings Conference Call
Positive
Revenue Performance Improvement: 1. Strong Revenue Growth: Health Catalyst reported total revenue of $76.4 million for Q3 2024, exceeding the midpoint of their previous guidance and representing a 3% year-over-year increase.
Adjusted EBITDA Surge: 2. Increased Adjusted EBITDA: The company achieved an adjusted EBITDA of $7.3 million in Q3 2024, which is an increase of $5.3 million compared to the same period last year, reflecting strong operational performance.
Client Subscription Growth: 3. Positive Client Expansion: Health Catalyst anticipates adding net new platform subscription clients in the low 20s for 2024, which would mark the best year in the company's history for this metric, indicating strong client demand.
Cash Position Improvement: 4. Improved Cash Position: The company ended Q3 2024 with $387.2 million in cash, cash equivalents, and short-term investments, up from $308.3 million in Q2 2024, providing significant financial flexibility.
2024 Revenue Guidance Increase: 5. Raising 2024 Guidance: Health Catalyst raised its revenue expectations for 2024 to a range of $305 million to $311 million and adjusted EBITDA expectations to between $25 million and $27 million, reflecting confidence in continued growth.
Negative
Stagnant Professional Services Revenue: 1. Declining Professional Services Revenue: Professional services revenue for Q3 2024 was $27.7 million, which was roughly flat year-over-year, indicating stagnation in this segment despite overall revenue growth.
Technology Gross Margin Decline: 2. Decreased Technology Gross Margin: The adjusted technology gross margin for Q3 2024 was 65%, a decrease of approximately 330 basis points compared to the same period last year, primarily due to upfront costs associated with the deployment of the Ninja Universe platform.
Operating Expenses Analysis: 3. Increased Operating Expenses: Adjusted total operating expenses for Q3 2024 were $29 million, representing 38% of revenue, which, while improved from 44% in Q3 2023, still indicates a significant portion of revenue consumed by operating costs.
TEMS Bookings Decline: 4. Lower TEMS Bookings: The company reported lower bookings performance in Technology-Enabled Managed Services (TEMS) than initially forecasted, which is expected to impact Q4 and 2024 revenue negatively.
Revenue Recognition Delays: 5. Complex Implementation Delays: The company noted that contracts signed with international and health information exchange clients generally take longer to ramp into revenue, which could delay revenue recognition into early 2025.
HCAT FAQs
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HCAT Earning Call Sentiment
Health Catalyst, Inc. (HCAT) Q3 2024 Earnings Call Transcript
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00:00
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HCAT.O
0.73%Positive
The earnings call summary and Q&A session reveal several positive indicators: a slight revenue increase, improved EBITDA, successful client acquisitions, and optimistic 2025 growth expectations. Despite some integration risks and lack of shareholder return plans, the company's strong pipeline, international growth, and strategic acquisitions bolster the outlook. The positive sentiment is supported by management's confidence in achieving double-digit growth and significant EBITDA growth in 2025. The lack of negative guidance adjustments or major financial disappointments further supports a positive stock price movement prediction.
