Latest news with #HealthCatalyst
Yahoo
3 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
Yahoo
27-05-2025
- Business
- Yahoo
Health Catalyst, Steven Madden, Astronics, Wayfair, and Robinhood Shares Are Soaring, What You Need To Know
A number of stocks jumped in the pre-market session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Data Analytics company Health Catalyst (NASDAQ:HCAT) jumped 8.5%. Is now the time to buy Health Catalyst? Access our full analysis report here, it's free. Footwear company Steven Madden (NASDAQ:SHOO) jumped 5.1%. Is now the time to buy Steven Madden? Access our full analysis report here, it's free. Aerospace company Astronics (NASDAQ:ATRO) jumped 5.3%. Is now the time to buy Astronics? Access our full analysis report here, it's free. Online Retail company Wayfair (NYSE:W) jumped 8.4%. Is now the time to buy Wayfair? Access our full analysis report here, it's free. Financial Technology company Robinhood (NASDAQ:HOOD) jumped 5.2%. Is now the time to buy Robinhood? Access our full analysis report here, it's free. Health Catalyst's shares are extremely volatile and have had 45 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 10 months ago when the stock gained 40.1% on the news that the company reported strong second-quarter 2024 results that narrowly topped analysts' revenue expectations, while EPS beat by a more convincing margin. Adjusted EBITDA and free cash flow also beat Wall Street's estimates during the quarter. On the other hand, its revenue guidance for the next quarter missed analysts' expectations, and its gross margin shrank. Overall, this was a mixed, yet decent quarter for the company. Health Catalyst is down 48.7% since the beginning of the year, and at $3.76 per share, it is trading 58.3% below its 52-week high of $9.02 from December 2024. Investors who bought $1,000 worth of Health Catalyst's shares 5 years ago would now be looking at an investment worth $136.73. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. 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
08-05-2025
- Business
- Yahoo
Health Catalyst (NASDAQ:HCAT) Posts Q1 Sales In Line With Estimates, Stock Soars
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 Health Catalyst? Find out in our full research report. Health Catalyst (HCAT) Q1 CY2025 Highlights: 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) Adjusted EBITDA: $6.28 million vs analyst estimates of $4.15 million (7.9% margin, 51.3% beat) 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 Free Cash Flow was -$5.05 million compared to -$8.36 million in the previous quarter Market Capitalization: $278.7 million 'For the first quarter of 2025, I am pleased by our strong financial results, including total revenue of $79.4 million and Adjusted EBITDA of $6.3 million, with these results beating our quarterly guidance on each metric,' said Dan Burton, CEO of Health Catalyst. Company Overview 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. Sales Growth A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, Health Catalyst grew its sales at a weak 7% compounded annual growth rate. This fell short of our benchmark for the software sector and is a rough starting point for our analysis. Health Catalyst Quarterly Revenue This quarter, Health Catalyst grew its revenue by 6.3% year on year, and its $79.41 million of revenue was in line with Wall Street's estimates. Company management is currently guiding for a 6.1% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 10.2% over the next 12 months, an acceleration versus the last three years. This projection is above average for the sector and indicates its newer products and services will spur better top-line performance. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories.
Yahoo
06-05-2025
- Business
- Yahoo
Health Catalyst (HCAT) Reports Earnings Tomorrow: What To Expect
Healthcare software provider Health Catalyst (NASDAQ:HCAT) will be reporting earnings tomorrow after the bell. Here's what you need to know. Health Catalyst met analysts' revenue expectations last quarter, reporting revenues of $79.61 million, up 6% year on year. It was a mixed quarter for the company, with full-year EBITDA guidance exceeding analysts' expectations. Is Health Catalyst a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Health Catalyst's revenue to grow 6% year on year to $79.21 million, improving from the 1.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0 per share. Health Catalyst Total Revenue Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Health Catalyst has missed Wall Street's revenue estimates three times over the last two years. Looking at Health Catalyst's peers in the data and analytics software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Palantir delivered year-on-year revenue growth of 39.3%, beating analysts' expectations by 2.5%, and Commvault Systems reported revenues up 23.2%, topping estimates by 4.8%. Commvault Systems's stock price was unchanged following the results. Read our full analysis of Palantir's results here and Commvault Systems's results here. There has been positive sentiment among investors in the data and analytics software segment, with share prices up 15% on average over the last month. Health Catalyst is up 1.8% during the same time and is heading into earnings with an average analyst price target of $8.23 (compared to the current share price of $4.06). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Yahoo
02-05-2025
- Business
- Yahoo
Microsoft (NasdaqGS:MSFT) Enhances Secure Authentication With Entra ID And YubiKeys
Microsoft experienced an 11% rise over the last month, aligning closely with broader market trends driven by strong economic signals such as robust U.S. employment data and optimistic trade discussions between the U.S. and China. Concurrently, Microsoft's recent developments, including solid Q3 earnings and ongoing share buybacks, likely reinforced investor confidence. Additionally, the company's collaboration with partners like Health Catalyst, and the launch of new products, might have added positive sentiment toward its innovation in AI and cloud solutions. Overall, these developments, along with favorable market conditions, likely supported Microsoft's strong performance. Buy, Hold or Sell Microsoft? View our complete analysis and fair value estimate and you decide. Trump's oil boom is here — pipelines are primed to profit. Discover the 22 US stocks riding the wave. Microsoft's recent developments, including Q3 earnings and share buybacks, have reinforced investor confidence, contributing to the company's 11% increase in share price over the last month. Over a longer-term period, Microsoft's total shareholder return, including dividends, was 142.06% over five years, demonstrating significant growth. Compared to the industry, Microsoft's performance over the past year did not match the US Software industry's 15% return, highlighting a varied growth pace relative to its peers. The integration of AI technologies and strategic partnerships has been identified as a key revenue driver for Microsoft. The company's AI initiatives, such as Copilot in Microsoft 365, are expected to accelerate revenue growth and enhance enterprise adoption. This aligns with analyst revenue forecasts, predicting annual growth of 13.6% over the next three years. Earnings per share are expected to grow to $18.72 by April 2028, with profit margins projected to increase slightly. These growth prospects have contributed to the consensus price target of US$490.38, representing a 19.6% potential upside from the current share price of US$394.04. Investors should consider these expectations in the context of their own assumptions about Microsoft's future performance. Our comprehensive valuation report raises the possibility that Microsoft is priced higher than what may be justified by its financials. This 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. Companies discussed in this article include NasdaqGS:MSFT. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
