Health Catalyst Reports Fourth Quarter and Year End 2024 Results

SALT LAKE CITY, Feb. 26, 2025 (GLOBE NEWSWIRE) -- Health Catalyst, Inc. ("Health Catalyst," Nasdaq: HCAT), a leading provider of data and analytics technology and services to healthcare organizations, today reported financial results for the quarter and year ended December 31, 2024. “For the full year 2024, I am pleased to share that we achieved strong performance across our business, including total revenue of $307 million and Adjusted EBITDA of $26 million. Additionally, I am encouraged with our Technology segment, which had revenue of $195 million for full-year 2024 and $52 million for the fourth quarter of 2024, which represents 10% growth year-over-year. I am pleased with this progress and excited that we anticipate a continued reacceleration of topline growth for full year 2025, with our Tech segment growing faster than the total business. Likewise, I am pleased with our profitability progress and excited that we have raised our target for 2025 Adjusted EBITDA by $2 million, to approximately $41 million.” said Dan Burton, CEO of Health Catalyst. "As part of our annual planning process, we’re grateful to share a few governance and leadership updates. First, we are thrilled to welcome Dr. Jill Hoggard Green to the Health Catalyst Board of Directors as of December 1, 2024. Jill is the former Chief Executive Officer of The Queens Health System and has been an extraordinary leader throughout her career. We are excited for Jill to be a member of our Board. Next, we wanted to take a moment to thank Anita Pramoda for her dedicated service as a member of our Board. After nearly a decade, she will complete her service on March 1, 2025. We are deeply grateful for her meaningful contributions. Finally, I’m excited to announce recent promotions to our leadership team. Dr. Daniel Samarov has been promoted to Chief AI Officer. In addition, Allie Coronis, Senior Vice President of Tech-Enabled Managed Services, and Dan Heinmiller, Senior Vice President of Implementation Services, have been appointed to our company-wide leadership team. We’re looking forward to the meaningful impact these leaders will have in their new roles." Financial Highlights for the Three and Twelve Months Ended December 31, 2024 Key Financial Measures Three Months EndedDecember 31, Year over Year Change Twelve Months EndedDecember 31, Year over Year Change 2024 2023 2024 2023 GAAP Financial Measures:(in thousands, except percentages) (in thousands, except percentages) Revenue$79,606 $75,084 6% $306,584 $295,938 4% Gross profit$28,618 $23,902 20% $114,503 $104,002 10% Gross margin 36% 32% 37% 35% Net loss$(20,673) $(30,312) 32% $(69,502) $(118,147) 41% Non-GAAP Financial Measures:(1) Adjusted Gross Profit$37,121 $34,693 7% $149,533 $144,060 4% Adjusted Gross Margin 47% 46% 49% 49% Adjusted EBITDA$7,911 $1,352 485% $26,105 $11,021 137% ________________________(1) These measures are not calculated in accordance with generally accepted accounting principles in the United States (GAAP). See the accompanying "Non-GAAP Financial Measures" section below for more information about these financial measures, including the limitations of such measures, and for a reconciliation of each measure to the most directly comparable measure calculated in accordance with GAAP. Other Key Metrics As of December 31, 2024 2023 2022 Platform Clients(1)130 109 98 Year Ended December 31, 2024 2023 2022 Dollar-based Retention Rate (legacy)(2)100% 100% 100%Dollar-based Retention Rate (Tech + TEMS)(3)102% __________________ (1) We have updated the name and definition of this key metric to Platform Clients from DOS Subscription Clients to better reflect the deep, long-standing, multi-faceted relationships we strive to build with the entities we serve. Platform Clients have historically been defined as clients who directly or indirectly access our platform via a technology subscription contract. Direct access to our platform has included access to our DOS platform, Ignite platform, or Ninja Universe. Indirect access to our platform has included platform module components such as Ignite connectors, Healthcare.AI, Pop Analyzer, IDEA, and other platform components. Given the modularity of our Ignite platform, we anticipate Ignite infrastructure will be included in all of our technology Solutions in the near future and many of our Solutions already include Ignite components. Accordingly, beginning in 2025, Platform Clients will be defined as: (i) all Platform Clients as of December 31, 2024 under our historical definition (i.e., these clients will be included in our Platform Client count going forward until they cease to have an active subscription as of the end of the period), and (ii) going forward in 2025 and beyond, any technology client that signs contracts with at least $100,000 of incremental total annual recurring revenue (ARR) and non-recurring revenue in a given calendar year, inclusive of clients that come through acquisition if we first begin recognizing revenue for the client post-acquisition and that total ARR and non-recurring revenue exceeds $100,000 in that calendar year, so long as such client maintains an active subscription as of the end of the period. Once a client is designated as a Platform Client, it will continue to be a Platform Client unless it is no longer a client with an active subscription as of the end of the period. Please see our Annual Report on Form 10-K for the year ended December 31, 2024 expected to be filed with the SEC on or about February 26, 2025 for additional information.(2) Dollar-based Retention Rate (legacy) is calculated as of a period end by starting with the sum of the technology and professional services ARR from our Platform Clients as of the date 12 months prior to such period end and then calculating the sum of the ARR from these same clients as of the current period end. Please see our Annual Report on Form 10-K for the year ended December 31, 2024 expected to be filed with the SEC on or about February 26, 2025 for additional information.(3) Dollar-based Retention Rate (Tech + TEMS) is calculated as of a period end by starting with the sum of the technology ARR and Tech-Enabled Managed Services (TEMS) ARR from our Platform Clients as of the date 12 months prior to such period end (this calculation excludes professional services ARR and non-recurring revenue), calculating the sum of the ARR from these same clients as of the current period end (which includes any upsells and also reflects contraction or attrition over the trailing twelve months but excludes revenue from new Platform Clients added in the current period who were not clients at the beginning of such period; this current period ARR may include acquired ARR from clients that overlap with the Platform Clients in a given calendar year), and then dividing the current period ARR by the prior period ARR. Please see our Annual Report on Form 10-K for the year ended December 31, 2024 expected to be filed with the SEC on or about February 26, 2025 for additional information. Financial Outlook Health Catalyst provides forward-looking guidance on total revenue, a GAAP measure, and Adjusted EBITDA, a non-GAAP measure. For the first quarter of 2025, we expect: Total revenue of approximately $79 million, and Adjusted EBITDA of approximately $4 million For the full year of 2025, we expect: Total revenue of approximately $335 million,Technology revenue of approximately $220 million, and Adjusted EBITDA of approximately $41 million We have not reconciled guidance for Adjusted EBITDA to net loss, the most directly comparable GAAP measure, and have not provided forward-looking guidance for net loss, because there are items that may impact net loss, including stock-based compensation, that are not within our control or cannot be reasonably forecasted. Quarterly Conference Call Details We will host a conference call to review the results today, Wednesday, February 26, 2025, at 5:00 p.m. E.T. The conference call can be accessed by dialing (800) 343-5172 for U.S. participants, or (203) 518-9856 for international participants, and referencing conference ID “HCATQ424.” A live audio webcast will be available online at https://ir.healthcatalyst.com/. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days. About Health Catalyst Health Catalyst (Nasdaq: HCAT) is a leading provider of data and analytics technology and services that ignite smarter healthcare, lighting the path to measurable clinical, financial, and operational improvement. More than 1,000 organizations worldwide rely on Health Catalyst's offerings, including our cloud-based technology ecosystem Health Catalyst Ignite™, AI-enabled data and analytics solutions, and expert services to drive meaningful outcomes across hundreds of millions of patient records. Powered by high-value data, standardized measures and registries, and deep healthcare domain expertise, Ignite helps organizations transform complex information into actionable insights. Backed by a multi-decade mission and a proven track record of delivering billions of dollars in measurable results, Health Catalyst continues to serve as the catalyst for massive, measurable, data-informed healthcare improvement and innovation. Available Information Our investors and others should note that we announce material information to the public about our company, products and services, and other matters related to our company through a variety of means, including our website (https://www.healthcatalyst.com/), our investor relations website (https://ir.healthcatalyst.com/), press releases, SEC filings, public conference calls, and social media, including our and our CEO's social media accounts (including on LinkedIn), in order to achieve broad, non-exclusionary distribution of information to the public and to comply with our disclosure obligations under Regulation FD. Forward-Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding our future growth and our financial outlook for Q1 and fiscal year 2025. Forward-looking statements are subject to risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) changes in laws and regulations applicable to our business model; (ii) changes in market or industry conditions, regulatory environment, and receptivity to our technology and services; (iii) results of litigation or a security incident; (iv) the loss of one or more key clients or partners; (v) macroeconomic challenges (including high inflationary and/or high interest rate environments, or market volatility caused by bank failures and measures taken in response thereto) and any new public health crisis; and (vi) changes to our abilities to recruit and retain qualified team members. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024 that was filed with the SEC on November 7, 2024 and the Annual Report on Form 10-K for the year ended December 31, 2024 expected to be filed with the SEC on or about February 26, 2025. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update or revise this information unless required by law. Consolidated Balance Sheets(in thousands, except share and per share data) As of December 31, 2024 2023 Assets Current assets: Cash and cash equivalents$249,645 $106,276 Short-term investments 142,355 211,452 Accounts receivable, net 57,182 60,290 Prepaid expenses and other assets 16,468 15,379 Total current assets 465,650 393,397 Property and equipment, net 29,394 25,712 Intangible assets, net 86,052 73,384 Operating lease right-of-use assets 12,058 13,927 Goodwill 259,759 190,652 Other assets 6,016 4,742 Total assets$858,929 $701,814 Liabilities and stockholders’ equity Current liabilities: Accounts payable$11,433 $6,641 Accrued liabilities 26,340 23,282 Deferred revenue(1) 53,281 55,753 Operating lease liabilities 3,614 3,358 Current portion of long-term debt 231,182 — Total current liabilities 325,850 89,034 Long-term debt, net of current portion 151,178 228,034 Deferred revenue, net of current portion 249 77 Operating lease liabilities, net of current portion 16,291 17,676 Other liabilities 154 74 Total liabilities 493,722 334,895 Stockholders’ equity: Preferred stock, $0.001 par value per share; 25,000,000 shares authorized and no shares issued and outstanding as of December 31, 2024 and 2023 — — Common stock, $0.001 par value per share, and additional paid-in capital; 500,000,000 shares authorized as of December 31, 2024 and 2023; 64,043,799 and 58,295,491 shares issued and outstanding as of December 31, 2024 and 2023, respectively 1,552,714 1,484,056 Accumulated deficit (1,186,672) (1,117,170)Accumulated other comprehensive (loss) income (835) 33 Total stockholders’ equity 365,207 366,919 Total liabilities and stockholders’ equity$858,929 $701,814 Consolidated Statements of Operations(in thousands, except per share data, unaudited) Three Months EndedDecember 31, Twelve Months EndedDecember 31, 2024 2023 2024 2023 Revenue: Technology$51,598 $47,100 $194,852 $187,583 Professional services 28,008 27,984 111,732 108,355 Total revenue 79,606 75,084 306,584 295,938 Cost of revenue, excluding depreciation and amortization: Technology(1)(2)(3) 18,821 16,719 67,812 62,474 Professional services(1)(2)(3) 26,094 27,857 97,993 101,631 Total cost of revenue, excluding depreciation and amortization 44,915 44,576 165,805 164,105 Operating expenses: Sales and marketing(1)(2)(3) 11,242 17,271 54,387 67,321 Research and development(1)(2)(3) 15,002 20,288 57,950 72,627 General and administrative(1)(2)(3)(4)(5) 15,681 15,430 56,817 76,559 Depreciation and amortization 10,266 10,304 41,431 42,223 Total operating expenses 52,191 63,293 210,585 258,730 Loss from operations (17,500) (32,785) (69,806) (126,897)Interest and other expense, net (2,548) 2,616 637 9,106 Loss before income taxes (20,048) (30,169) (69,169) (117,791)Income tax provision 625 143 333 356 Net loss$(20,673) $(30,312) $(69,502) $(118,147)Net loss per share, basic$(0.33) $(0.53) $(1.15) $(2.09)Net loss per share, diluted$(0.33) $(0.53) $(1.15) $(2.09)Weighted-average shares outstanding used in calculating net loss per share, basic 62,377 57,476 60,185 56,418 Weighted-average shares outstanding used in calculating net loss per share, diluted 62,377 57,476 60,185 56,418 _______________(1) Includes stock-based compensation expense as follows: Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023Stock-Based Compensation Expense:(in thousands) (in thousands)Cost of revenue, excluding depreciation and amortization: Technology$494 $458 $1,700 $1,866Professional services 1,759 1,687 6,041 7,369Sales and marketing 3,123 4,933 12,120 20,982Research and development 2,305 2,536 7,696 11,213General and administrative 3,131 3,397 12,571 14,326Total$10,812 $13,011 $40,128 $55,756 (2) Includes acquisition-related costs, net as follows: Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023Acquisition-related costs, net:(in thousands) (in thousands)Cost of revenue, excluding depreciation and amortization: Technology$74 $65 $320 $273Professional services 103 93 433 391Sales and marketing 53 393 791 697Research and development 91 200 703 787General and administrative 4,012 1,904 7,817 3,609Total$4,333 $2,655 $10,064 $5,757 (3) Includes restructuring costs, as follows: Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023Restructuring costs:(in thousands) (in thousands)Cost of revenue, excluding depreciation and amortization: Technology$— $484 $79 $496Professional services — 1,398 181 1,832Sales and marketing — 1,210 449 2,415Research and development — 3,051 443 3,337General and administrative — 624 936 742Total$— $6,767 $2,088 $8,822 (4) Includes litigation costs, as follows: Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023Litigation costs:(in thousands) (in thousands)General and administrative$— $— $— $21,279 (5) Includes non-recurring lease-related charges, as follows: Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023Non-recurring lease-related charges:(in thousands) (in thousands)General and administrative$— $1,400 $2,200 $4,081 Consolidated Statements of Cash Flows(in thousands) Year Ended December 31, 2024 2023 Cash flows from operating activities Net loss$(69,502) $(118,147)Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Stock-based compensation expense 40,128 55,756 Depreciation and amortization 41,431 42,223 Investment discount and premium accretion (4,757) (9,720)Impairment of long-lived assets 2,200 4,081 Non-cash operating lease expense 2,685 2,990 Provision for expected credit losses 1,202 1,821 Amortization of debt discount, issuance costs, and deferred financing costs 3,256 1,511 Deferred tax provision (benefit) 77 8 Change in fair value of contingent consideration liabilities (1,642) — Other 141 67 Change in operating assets and liabilities: Accounts receivable, net 4,281 (13,663)Prepaid expenses and other assets (50) 164 Accounts payable, accrued liabilities, and other liabilities 5,581 4,868 Deferred revenue (7,012) (1,487)Operating lease liabilities (3,460) (3,552)Net cash provided by (used in) operating activities 14,559 (33,080)Cash flows from investing activities Proceeds from the sale and maturity of short-term investments 242,067 336,801 Purchases of short-term investments (168,307) (290,836)Capitalization of internal-use software (14,274) (11,957)Acquisition of businesses, net of cash acquired (80,277) (11,392)Purchases of property and equipment (1,616) (1,236)Purchases of intangible assets (508) (1,118)Proceeds from the sale of property and equipment 13 31 Net cash provided by (used in) investing activities (22,902) 20,293 Cash flows from financing activities Proceeds from issuance of long-term debt, net of issuance costs 152,277 — Payment of deferred financing costs (2,152) — Repayment of debt (959) — Proceeds from employee stock purchase plan 2,411 3,588 Proceeds from exercise of stock options 169 950 Repurchase of common stock — (1,808)Net cash provided by (used in) financing activities 151,746 2,730 Effect of exchange rate changes on cash and cash equivalents (34) 21 Net increase (decrease) in cash and cash equivalents 143,369 (10,036)Cash and cash equivalents at beginning of period 106,276 116,312 Cash and cash equivalents at end of period$249,645 $106,276 Non-GAAP Financial Measures To supplement our financial information presented in accordance with GAAP, we believe certain non-GAAP financial measures, including Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per share, basic and diluted, are useful in evaluating our operating performance. For example, we exclude stock-based compensation expense because it is non-cash in nature and excluding this expense provides meaningful supplemental information regarding our operational performance and allows investors the ability to make more meaningful comparisons between our operating results and those of other companies. We use this non-GAAP financial information to evaluate our ongoing operations, as a component in determining employee bonus compensation, and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP financial measures differently or may use other measures to evaluate their performance. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business. Adjusted Gross Profit and Adjusted Gross Margin Adjusted Gross Profit is a non-GAAP financial measure that we define as revenue less cost of revenue, excluding depreciation and amortization, adding back stock-based compensation, acquisition-related costs, net, and restructuring costs as applicable. We define Adjusted Gross Margin as our Adjusted Gross Profit divided by our revenue. We believe Adjusted Gross Profit and Adjusted Gross Margin are useful to investors as they eliminate the impact of certain non-cash expenses and certain other non-recurring operating expenses, and allow a direct comparison of these measures between periods without the impact of non-cash expenses and certain other non-recurring operating expenses. The following is a reconciliation of our Adjusted Gross Profit and Adjusted Gross Margin, in total and for technology and professional services, to gross profit and gross margin, the most directly comparable financial measures calculated in accordance with GAAP, for the three and twelve months ended December 31, 2024 and 2023: Three Months Ended December 31, 2024 (in thousands, except percentages) Technology ProfessionalServices TotalRevenue$51,598 $28,008 $79,606 Cost of revenue, excluding depreciation and amortization (18,821) (26,094) (44,915)Amortization of intangible assets, cost of revenue (3,455) — (3,455)Depreciation of property and equipment, cost of revenue (2,618) — (2,618)Gross profit 26,704 1,914 28,618 Gross margin 52% 7% 36%Add: Amortization of intangible assets, cost of revenue 3,455 — 3,455 Depreciation of property and equipment, cost of revenue 2,618 — 2,618 Stock-based compensation 494 1,759 2,253 Acquisition-related costs, net(1) 74 103 177 Adjusted Gross Profit$33,345 $3,776 $37,121 Adjusted Gross Margin 65% 13% 47% __________________(1) Acquisition-related costs, net include deferred retention expenses attributable to the Lumeon, Carevive, ARMUS, and KPI Ninja acquisitions. Three Months Ended December 31, 2023 (in thousands, except percentages) Technology ProfessionalServices TotalRevenue$47,100 $27,984 $75,084 Cost of revenue, excluding depreciation and amortization (16,719) (27,857) (44,576)Amortization of intangible assets, cost of revenue (4,370) — (4,370)Depreciation of property and equipment, cost of revenue (2,236) — (2,236)Gross profit 23,775 127 23,902 Gross margin 50% —% 32%Add: Amortization of intangible assets, cost of revenue 4,370 — 4,370 Depreciation of property and equipment, cost of revenue 2,236 — 2,236 Stock-based compensation 458 1,687 2,145 Acquisition-related costs, net(1) 65 93 158 Restructuring costs(2) 484 1,398 1,882 Adjusted Gross Profit$31,388 $3,305 $34,693 Adjusted Gross Margin 67% 12% 46% ___________________(1) Acquisition-related costs, net include deferred retention expenses following the ARMUS and KPI Ninja acquisitions.(2) Restructuring costs include severance and other team member costs from workforce reductions. Twelve Months Ended December 31, 2024 (in thousands, except percentages) Technology ProfessionalServices TotalRevenue$194,852 $111,732 $306,584 Cost of revenue, excluding depreciation and amortization (67,812) (97,993) (165,805)Amortization of intangible assets, cost of revenue (16,150) — (16,150)Depreciation of property and equipment, cost of revenue (10,126) — (10,126)Gross profit 100,764 13,739 114,503 Gross margin 52% 12% 37%Add: Amortization of intangible assets, cost of revenue 16,150 — 16,150 Depreciation of property and equipment, cost of revenue 10,126 — 10,126 Stock-based compensation 1,700 6,041 7,741 Acquisition-related costs, net(1) 320 433 753 Restructuring costs(2) 79 181 260 Adjusted Gross Profit$129,139 $20,394 $149,533 Adjusted Gross Margin 66% 18% 49% __________________(1) Acquisition-related costs, net include deferred retention expenses attributable to the Lumeon, Carevive, ARMUS, and KPI Ninja acquisitions.(2) Restructuring costs include severance and other team member costs from workforce reductions. Twelve Months Ended December 31, 2023 (in thousands, except percentages) Technology ProfessionalServices TotalRevenue$187,583 $108,355 $295,938 Cost of revenue, excluding depreciation and amortization (62,474) (101,631) (164,105)Amortization of intangible assets, cost of revenue (18,742) — (18,742)Depreciation of property and equipment, cost of revenue (9,089) — (9,089)Gross profit 97,278 6,724 104,002 Gross margin 52% 6% 35%Add: Amortization of intangible assets, cost of revenue 18,742 — 18,742 Depreciation of property and equipment, cost of revenue 9,089 — 9,089 Stock-based compensation 1,866 7,369 9,235 Acquisition-related costs, net(1) 273 391 664 Restructuring costs(2) 496 1,832 2,328 Adjusted Gross Profit$127,744 $16,316 $144,060 Adjusted Gross Margin 68% 15% 49% ___________________(1) Acquisition-related costs, net include deferred retention expenses following the ARMUS, KPI Ninja, and Twistle acquisitions.(2) Restructuring costs include severance and other team member costs from workforce reductions. Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure that we define as net loss adjusted for (i) interest and other (income) expense, net, (ii) income tax provision (benefit), (iii) depreciation and amortization, (iv) stock-based compensation, (v) acquisition-related costs, net, including the fair change in value of contingent consideration liabilities for potential earn-out payments, (vi) litigation costs, (vii) restructuring costs, and (viii) non-recurring lease-related charges. We view acquisition-related expenses when applicable, such as transaction costs and changes in the fair value of contingent consideration liabilities that are directly related to business combinations, as costs that are unpredictable, dependent upon factors outside of our control, and are not necessarily reflective of operational performance during a period. We believe that excluding restructuring costs, litigation costs, and non-recurring lease-related charges allows for more meaningful comparisons between operating results from period to period as this is separate from the core activities that arise in the ordinary course of our business and are not part of our ongoing operations. We believe Adjusted EBITDA provides investors with useful information on period-to-period performance as evaluated by management and a comparison with our past financial performance and is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. The following is a reconciliation of our net loss, the most directly comparable GAAP financial measure, to Adjusted EBITDA, for the three and twelve months ended December 31, 2024 and 2023: Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 (in thousands) (in thousands)Net loss$(20,673) $(30,312) $(69,502) $(118,147)Add: Interest and other (income) expense, net 2,548 (2,616) (637) (9,106)Income tax provision 625 143 333 356 Depreciation and amortization 10,266 10,304 41,431 42,223 Stock-based compensation 10,812 13,011 40,128 55,756 Acquisition-related costs, net(1) 4,333 2,655 10,064 5,757 Litigation costs(2) — — — 21,279 Restructuring costs(3) — 6,767 2,088 8,822 Non-recurring lease-related charges(4) — 1,400 2,200 4,081 Adjusted EBITDA$7,911 $1,352 $26,105 $11,021 __________________(1) Acquisition-related costs, net includes third-party fees associated with due diligence, deferred retention expenses, post-acquisition restructuring costs incurred as part of business combinations, and changes in fair value of contingent consideration liabilities for potential earn-out payments. For additional details refer to Notes 1, 2, and 7 in our consolidated financial statements.(2) Litigation costs include costs related to litigation that are outside the ordinary course of our business. For additional details, refer to Note 16 in our consolidated financial statements.(3) Restructuring costs include severance and other team member costs from workforce reductions, impairment of discontinued capitalized software projects, and other miscellaneous charges. For additional details, refer to Note 11 in our consolidated financial statements.(4) Non-recurring lease-related charges includes lease-related impairment charges for the subleased portion of our corporate headquarters. For additional details refer to Note 9 in our consolidated financial statements. Adjusted Net Income and Adjusted Net Income Per Share Adjusted Net Income is a non-GAAP financial measure that we define as net loss adjusted for (i) stock-based compensation, (ii) amortization of acquired intangibles, (iii) acquisition-related costs, net, including the deferred tax valuation allowance release from acquisitions, (iv) litigation costs, (v) restructuring costs, (vi) non-recurring lease-related charges, and (vii) non-cash interest expense related to our convertible senior notes. We believe Adjusted Net Income provides investors with useful information on period-to-period performance as evaluated by management and comparison with our past financial performance and is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. The following is a reconciliation of our net loss, the most directly comparable GAAP financial measure, to Adjusted Net Income, for the three and twelve months ended December 31, 2024 and 2023: Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Numerator:(in thousands, except share and per share amounts)Net loss$(20,673) $(30,312) $(69,502) $(118,147)Add: Stock-based compensation 10,812 13,011 40,128 55,756 Amortization of acquired intangibles 7,029 7,243 28,654 29,636 Acquisition-related costs, net(1) 4,333 2,655 10,064 5,757 Litigation costs(2) — — — 21,279 Restructuring costs(3) — 6,767 2,088 8,822 Non-recurring lease-related charges(4) — 1,400 2,200 4,081 Non-cash interest expense related to debt 1,178 379 3,256 1,511 Adjusted Net Income$2,679 $1,143 $16,888 $8,695 Denominator: Weighted-average number of shares used in calculating net loss per share, basic 62,376,784 57,476,187 60,184,920 56,418,397 Non-GAAP weighted-average effect of dilutive securities 536,029 283,805 305,370 666,488 Non-GAAP weighted-average number of shares used in calculating Adjusted Net Income per share, diluted 62,912,813 57,759,992 60,490,290 57,084,885 Net loss per share, basic and diluted$(0.33) $(0.53) $(1.15) $(2.09) Adjusted Net Income per share, basic$0.04 $0.02 $0.28 $0.15 Adjusted Net Income per share, diluted$0.04 $0.02 $0.28 $0.15 ______________(1) Acquisition-related costs, net includes third-party fees associated with due diligence, deferred retention expenses, post-acquisition restructuring costs incurred as part of business combinations, changes in fair value of contingent consideration liabilities for potential earn-out payments, and the deferred tax valuation allowance release from acquisitions. For additional details refer to Notes 1, 2, 7, and 15 in our consolidated financial statements.(2) Litigation costs include costs related to litigation that are outside the ordinary course of our business. For additional details, refer to Note 16 in our consolidated financial statements.(3) Restructuring costs include severance and other team member costs from workforce reductions, impairment of discontinued capitalized software projects, and other miscellaneous charges. For additional details, refer to Note 11 in our consolidated financial statements.(4) Includes the lease-related impairment charge for the subleased portion of our corporate headquarters. For additional details refer to Note 9 in our consolidated financial statements. Health Catalyst Investor Relations Contact:Jack KnightVice President, Investor Relations+1 (855)-309-6800ir@healthcatalyst.com Health Catalyst Media Contact:Amanda FlandersSVP, Marketing and Communicationsmedia@healthcatalyst.com To view this slide as a PDF, please click here: http://ml.globenewswire.com/Resource/Download/a81b2084-e98b-4a71-8d9c-2fd3534b3a42

Health Catalyst Reports Fourth Quarter and Year End 2024 Results

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