Latest news with #HCAT
Yahoo
2 days ago
- Business
- Yahoo
HCAT Q1 Earnings Call: Ignite Platform Drives Client Growth Amid Funding Uncertainty
Healthcare software provider Health Catalyst (NASDAQ:HCAT) met Wall Street's revenue expectations in Q1 CY2025, with sales up 6.3% year on year to $79.41 million. On the other hand, next quarter's revenue guidance of $80.5 million was less impressive, coming in 3.1% below analysts' estimates. Its non-GAAP profit of $0.01 per share was in line with analysts' consensus estimates. Is now the time to buy HCAT? Find out in our full research report (it's free). Revenue: $79.41 million vs analyst estimates of $79.21 million (6.3% year-on-year growth, in line) Adjusted EPS: $0.01 vs analyst estimates of $0 (in line) The company reconfirmed its revenue guidance for the full year of $335 million at the midpoint EBITDA guidance for the full year is $41 million at the midpoint, above analyst estimates of $39.59 million Operating Margin: -25.4%, up from -30.5% in the same quarter last year Market Capitalization: $288.1 million Health Catalyst's first quarter results reflected the company's ongoing transition from its legacy DOS platform to the newer Ignite platform, which management cited as a key driver of both technology revenue growth and improved margins. CEO Dan Burton highlighted that 10 net new platform clients were added in the quarter, with approximately two-thirds expanding from existing application relationships—signaling the success of Health Catalyst's cross-sell strategy. The Ignite platform's modularity and lower entry price point were credited with streamlining the sales process and shortening sales cycles, especially in an environment marked by cautious health system spending and funding uncertainties. Burton noted that Ignite's higher gross margin profile and greater mix of technology revenue versus professional services are central to Health Catalyst's strategy, stating, 'Ignite is a more profitable platform than DOS with approximately 70% gross margins compared to approximately 60% for DOS.' Looking ahead, Health Catalyst's full-year outlook is shaped by continued migration to the Ignite platform, expectations for steady net new client additions, and ongoing market headwinds related to Medicaid and research funding. Management reiterated a target of 40 net new platform clients for the year, anticipating that most Ignite migrations will be completed by mid-2026. CFO Jason Alger acknowledged that delays in Health Information Exchange client implementations and funding uncertainties could shift some revenue recognition into the second half of the year, but expressed confidence in the company's robust pipeline and Ignite's resilience. Burton emphasized that Ignite's flexibility and ability to deliver tangible ROI position Health Catalyst to 'meet clients where they are,' even as some organizations delay purchasing decisions. The company also expects operating leverage improvements from recent cost reductions and offshoring initiatives, contributing to its profit margin targets. Management attributed first quarter performance to Ignite's ability to drive incremental technology revenue, expand cross-sell opportunities, and accelerate client wins, even as funding uncertainties persisted in segments like Health Information Exchanges and Life Sciences. Ignite platform momentum: The Ignite platform enabled Health Catalyst to add 10 net new platform clients, with two-thirds coming from existing application clients. Management highlighted that Ignite's lower entry price and modular design have shortened sales cycles and increased conversion rates, especially in a cautious healthcare spending environment. Shift to technology revenue: New Ignite deals are contributing to a more favorable revenue mix, with approximately 80% of new client spend directed toward technology rather than professional services. This mix shift is expected to support higher gross margins and more predictable recurring revenue. Mid-market expansion via Spark: The company made early progress with Ignite Spark, a solution tailored for mid-sized health systems that have traditionally lacked access to enterprise-grade analytics. Management believes this market segment represents a significant growth opportunity unlocked by Ignite's modularity and pricing flexibility. Client migration impacts: The ongoing migration from DOS to Ignite has led to some clients reducing total spend, as Ignite's lower cost structure enables savings. While this creates a near-term headwind for dollar-based retention, management expects it to subside after most migrations are completed by late 2026. Acquisitions and product integration: Recent acquisitions, including patient engagement and cybersecurity solutions, are being integrated into the Ignite platform, broadening Health Catalyst's offerings and supporting cross-sell opportunities. Early wins combining these assets with Ignite were noted as evidence of the portfolio's growing value proposition. Health Catalyst's forward outlook is anchored in Ignite's continued adoption, the pace of client migrations, and the company's ability to navigate ongoing healthcare funding uncertainties while maintaining margin discipline. Ignite migration pace: Management expects to complete about two-thirds of Ignite platform client migrations by year-end and most by mid-2026. The speed of these transitions will impact technology revenue growth and margin expansion, as Ignite offers higher gross margins than DOS. Funding environment risks: Delays in Health Information Exchange and Life Sciences deals, as well as uncertainties around Medicaid and research funding, could impact the timing of new client wins and revenue recognition. Management has factored these risks into guidance, emphasizing Ignite's lower price point and ROI as mitigating factors. Cost efficiency initiatives: The company is pursuing operating leverage through offshoring, particularly in R&D and SG&A, and recently executed a reduction in force. These actions are expected to lower operating expenses as a percentage of revenue, supporting EBITDA margin improvement over the next several quarters. In the coming quarters, the StockStory team will monitor (1) the pace of Ignite platform migrations and net new platform client additions; (2) resolution of funding uncertainties impacting Health Information Exchange and Life Sciences segments; and (3) the impact of cost efficiency measures on operating margins. Progress on cross-selling recently acquired products and successful mid-market expansion will also be key indicators of execution. Health Catalyst currently trades at a forward price-to-sales ratio of 0.8×. In the wake of earnings, is it a buy or sell? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Cision Canada
13-05-2025
- Business
- Cision Canada
Civil Construction Industry Welcomes Provincial Commitment to Standardize Municipal Construction Practices
TORONTO, May 13, 2025 /CNW/ - The civil infrastructure construction associations welcomed the Ontario government's announcement that consultations will be launched with municipalities and industry to harmonize road building standards as part of the recently introduced Bill 17, Protect Ontario by Building Faster and Smarter Act, 2025. Ontario's municipalities own and manage more public infrastructure than the federal and provincial governments combined, with, on average, more than 50 per cent of their budgets allocated to construction and infrastructure. While provincial standards exist, Ontario's 444 municipalities have discretion in their implementation and have instead amassed hundreds of varying requirements for how to build and procure similar use projects, like roads, bridges, sewers and watermains. These differences cost taxpayers millions of dollars more, while reducing quality and productivity and increasing waste and carbon emissions. The Toronto and Area Road Builders Association (TARBA), Greater Toronto Sewer and Watermain Contractors Association (GTSWCA), and the Heavy Construction Association of Toronto (HCAT) have advocated that following provincial standards, jointly administered by the Ontario Ministry of Transportation and the Municipal Engineers Association, will result in reduced building costs and faster construction timelines through efficiencies and economies of scale. "This announcement builds on the government's ongoing commitment to reduce red tape and build the critical infrastructure our communities need. We look forward to working with the provincial government and the ministry as part of the consultation process," said Raly Chakarova, Executive Director at TARBA. "Breaking down barriers by harmonizing practices across municipal boundaries is a real solution that will bring in faster construction timelines and create significant cost savings for taxpayers, particularly through initiatives such as the standardized and increased use of Recycled Crushed Aggregates." "This is a pivotal moment for infrastructure development in Ontario," said Patrick McManus, Executive Director of the GTSWCA. "By standardizing construction specifications and contracts, we can reign in rising construction costs and lay the groundwork for sustainable growth and cost-effective infrastructure solutions, without fundamentally altering how we design, build, finance, or maintain our critical core infrastructure in the region." "This is the time for the provincial and federal governments to step in and ensure that municipalities have predictable and continuous infrastructure funding to get projects out the door, shovels in the ground, and keep everyone employed," said Peter Smith, Executive Director at HCAT. "But municipalities need to drop their own barriers. There is no reason that a different asphalt type or watermain fitting needs to be used simply because a project crosses over Steeles Ave." About GTSWCA The Greater Toronto Sewer and Watermain Contractors Association (GTSWCA) serves as a collective voice for its members who build water, wastewater, and stormwater infrastructure across the Greater Toronto Area. About HCAT The Heavy Construction Association of Toronto (HCAT) represents contractors in the heavy civil engineering construction sector, including bridge construction and rehabilitation, tunnels, marine construction, and structure foundations. HCAT advocates for best practices in infrastructure development while addressing industry challenges, providing educational opportunities, and promoting safety and sustainability. About TARBA The Toronto and Area Road Builders Association (TARBA) is the collective bargaining agent on behalf of unionized contractors involved in the new construction and maintenance of transportation infrastructure in the Greater Toronto and Simcoe Areas. TARBA advocates for policies and practices that promote safe, efficient, and sustainable infrastructure development.
Yahoo
13-05-2025
- Business
- Yahoo
Civil Construction Industry Welcomes Provincial Commitment to Standardize Municipal Construction Practices
TORONTO, May 13, 2025 /CNW/ - The civil infrastructure construction associations welcomed the Ontario government's announcement that consultations will be launched with municipalities and industry to harmonize road building standards as part of the recently introduced Bill 17, Protect Ontario by Building Faster and Smarter Act, 2025. Ontario's municipalities own and manage more public infrastructure than the federal and provincial governments combined, with, on average, more than 50 per cent of their budgets allocated to construction and infrastructure. While provincial standards exist, Ontario's 444 municipalities have discretion in their implementation and have instead amassed hundreds of varying requirements for how to build and procure similar use projects, like roads, bridges, sewers and watermains. These differences cost taxpayers millions of dollars more, while reducing quality and productivity and increasing waste and carbon emissions. The Toronto and Area Road Builders Association (TARBA), Greater Toronto Sewer and Watermain Contractors Association (GTSWCA), and the Heavy Construction Association of Toronto (HCAT) have advocated that following provincial standards, jointly administered by the Ontario Ministry of Transportation and the Municipal Engineers Association, will result in reduced building costs and faster construction timelines through efficiencies and economies of scale. "This announcement builds on the government's ongoing commitment to reduce red tape and build the critical infrastructure our communities need. We look forward to working with the provincial government and the ministry as part of the consultation process," said Raly Chakarova, Executive Director at TARBA. "Breaking down barriers by harmonizing practices across municipal boundaries is a real solution that will bring in faster construction timelines and create significant cost savings for taxpayers, particularly through initiatives such as the standardized and increased use of Recycled Crushed Aggregates." "This is a pivotal moment for infrastructure development in Ontario," said Patrick McManus, Executive Director of the GTSWCA. "By standardizing construction specifications and contracts, we can reign in rising construction costs and lay the groundwork for sustainable growth and cost-effective infrastructure solutions, without fundamentally altering how we design, build, finance, or maintain our critical core infrastructure in the region." "This is the time for the provincial and federal governments to step in and ensure that municipalities have predictable and continuous infrastructure funding to get projects out the door, shovels in the ground, and keep everyone employed," said Peter Smith, Executive Director at HCAT. "But municipalities need to drop their own barriers. There is no reason that a different asphalt type or watermain fitting needs to be used simply because a project crosses over Steeles Ave." About GTSWCA The Greater Toronto Sewer and Watermain Contractors Association (GTSWCA) serves as a collective voice for its members who build water, wastewater, and stormwater infrastructure across the Greater Toronto Area. About HCAT The Heavy Construction Association of Toronto (HCAT) represents contractors in the heavy civil engineering construction sector, including bridge construction and rehabilitation, tunnels, marine construction, and structure foundations. HCAT advocates for best practices in infrastructure development while addressing industry challenges, providing educational opportunities, and promoting safety and sustainability. About TARBA The Toronto and Area Road Builders Association (TARBA) is the collective bargaining agent on behalf of unionized contractors involved in the new construction and maintenance of transportation infrastructure in the Greater Toronto and Simcoe Areas. TARBA advocates for policies and practices that promote safe, efficient, and sustainable infrastructure development. SOURCE Toronto and Area Road Builders Association (TARBA) View original content to download multimedia: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-04-2025
- Business
- Yahoo
1 of Wall Street's Favorite Stock to Keep an Eye On and 2 to Avoid
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it's worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover. Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here is one stock where Wall Street's excitement appears well-founded and two where analysts may be overlooking some important risks. Consensus Price Target: 979% (130% implied return) Founded by healthcare professionals Tom Burton and Steve Barlow in 2008, Health Catalyst (NASDAQ:HCAT) provides data and analytics technology to healthcare organizations, enabling them to improve care and lower costs. Why Does HCAT Fall Short? Sales trends were unexciting over the last three years as its 8.2% annual growth was well below the typical software company Sky-high servicing costs result in an inferior gross margin of 46.2% that must be offset through increased usage Suboptimal cost structure is highlighted by its history of operating losses At $3.76 per share, Health Catalyst trades at 0.7x forward price-to-sales. Dive into our free research report to see why there are better opportunities than HCAT. Consensus Price Target: 308% (95% implied return) Founder Jack McDonald's second software rollup, Upland Software (NASDAQ:UPLD) is a one stop shop for sales and marketing software, project management, HR, and contact center services for small and medium sized businesses. Why Do We Steer Clear of UPLD? Products and services have few die-hard fans as sales have declined by 3.1% annually over the last three years Sales are projected to tank by 12.2% over the next 12 months as its demand continues evaporating Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low Upland is trading at $2.18 per share, or 0.3x forward price-to-sales. Check out our free in-depth research report to learn more about why UPLD doesn't pass our bar. Consensus Price Target: 16,891% (87.2% implied return) Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ:AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers. Why Does AMD Stand Out? Annual revenue growth of 30.8% over the last five years was superb and indicates its market share increased during this cycle Market share is on track to rise over the next 12 months as its 22.8% projected revenue growth implies demand will accelerate from its two-year trend Earnings growth has trumped its peers over the last five years as its EPS has compounded at 39.7% annually AMD's stock price of $78.06 implies a valuation ratio of 16x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
03-03-2025
- Business
- Yahoo
Health Catalyst Full Year 2024 Earnings: EPS Misses Expectations
Revenue: US$306.6m (up 3.6% from FY 2023). Net loss: US$69.5m (loss narrowed by 41% from FY 2023). US$1.16 loss per share (improved from US$2.09 loss in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 11%. The primary driver behind last 12 months revenue was the Technology segment contributing a total revenue of US$194.9m (64% of total revenue). Notably, cost of sales worth US$164.8m amounted to 54% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Research & Development (R&D) costs, amounting to US$56.8m (27% of total expenses). Explore how HCAT's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 8.9% p.a. on average during the next 3 years, compared to a 9.7% growth forecast for the Healthcare Services industry in the US. Performance of the American Healthcare Services industry. The company's shares are down 6.8% from a week ago. We don't want to rain on the parade too much, but we did also find 2 warning signs for Health Catalyst that you need to be mindful of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
