Pleasanton, Calif., March 15, 2024 (Globe Newswire) — Healthcare Triangle, Inc. (Nasdaq: HCTI) (“Healthcare Triangle,” “HCTI,” or the “Company”) provides digital transformation solutions including managed services, cloud enablement, cybersecurity, data analytics, and AI data processing for healthcare. is the leader of and Life Sciences industry today announced financial results for the fourth quarter and full year ended December 31, 2023.
Financial results for the fourth quarter of 2023
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Revenue: Total revenue was $7.1 million, a decrease of 37% compared to the fourth quarter of 2022. Software Services and Managed Services segment revenues decreased 40% and 37%, respectively, partially offset by a 22% increase in Platform Services.
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GAAP loss from operations: GAAP operating loss was $5.3 million compared to $4.9 million in the fourth quarter of 2022. The increase in loss was primarily due to impairment of intangible assets and goodwill. The one-time impact of impairment was $4.2 million. Normalized GAAP operating loss was $0.7 million.
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GAAP net loss per share: GAAP basic and diluted net loss per share was $1.26, based on a weighted average number of shares outstanding of 4.2 million. This compares to $1.33 in the prior year period, based on a weighted average number of shares outstanding of 3.6 million.
Full year 2023 financial results
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Revenue: Total revenue was $33.2 million, a decrease of 28% compared to 2022. Revenues from software services, managed services and support, and platform services decreased this year.
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GAAP loss from operations: GAAP operating loss was $12.3 million, compared to $9.6 million in 2022, with the increase in loss primarily due to impairment of intangible assets and goodwill. The one-time impact of impairment was $4.2 million. Normalized GAAP operating loss was $8.1 million.
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GAAP net loss per share: GAAP basic and diluted net loss per share was $2.92, based on a weighted average number of shares outstanding of 4.2 million. That compares to $2.63 based on 2022 weighted average shares outstanding of 3.6 million shares.
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As of December 31, 2023, cash and cash equivalents totaled $1.2 million.
Business highlights:
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Wins new $3 million contract to provide HITRUST-certified cloud DevOps managed services to major life sciences customers, strengthening the company's position as a top player in the cloud DevOps managed services business.
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Signed a multi-year program expansion agreement with a Fortune 500 biopharmaceutical company, securing its position as one of the leading providers of cloud DevOps, data engineering, and data platform management solutions.
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We announced a multi-year subscription agreement with a longtime customer for readabl.ai, a medical document automation solution designed to streamline patient care and reduce operational costs.
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We launched a new ransomware protection and prevention initiative and gained initial interest and support from numerous health system clients. The company has multiple cloud backup and disaster recovery agreements, enabling hospitals and health systems to move disaster recovery to the Amazon Web Services (AWS) Cloud to secure resources and scale on demand. Masu.
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At the CHIME23 Fall Forum, we hosted a session on digital transformation of health systems and ransomware preparedness.
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We hosted a roundtable discussion on generative AI and data modernization strategies for healthcare and hosted a webinar on ransomware preparedness for healthcare.
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I attended the 2023 MUSE Inspire conference as an exhibitor and best practice session host, and the HIMSS23 conference as a guest speaker for Amazon Web Services.
Thiagarajan Ramachandran, Chief Financial Officer of Healthcare Triangle, said: “Despite revenue declines throughout the year, we launched several important initiatives and achieved important milestones in ransomware protection and client preparedness. We believe that our efforts to date will position us not only to be a leading provider of cybersecurity solutions in the future, but also to be a leading provider of AI-driven healthcare processes and workflows. Thanks to the work completed throughout 2023, we are already seeing the results lead to a number of new initiatives in 2024. We are in multiple discussions with healthcare companies considering our AI solutions to realize potential cost savings and productivity gains while creating new standards. The healthcare environment continues to evolve. Patient care, payment systems, regulatory compliance, and records management generate massive amounts of data every day. HCTI is a leader in innovation, improving our HITRUST-certified cloud DevOps managed services and AI implementation. According to Grand View Research, AI in the healthcare market is expected to reach $53 billion by 2024, which creates many opportunities for documentation and production AI for us and our solutions. An important strategy not only for customer acquisition but also for marketing and brand awareness is educating potential customers and the industry at large by hosting webinars and attending conferences and guest speakers. We believe we are in an ideal position and have made significant progress in 2023.”
About Healthcare Triangle:
Healthcare Triangle, Inc., headquartered in Pleasanton, California, is at the forefront of healthcare technology, specializing in AI and digital transformation. Healthcare Triangle is dedicated to innovation, collaboration and excellence, and to reinventing healthcare delivery for the better. We work with healthcare organizations, including hospitals, health systems, insurance companies, and pharmaceutical/life sciences organizations, to leverage breakthrough technology and extensive industry expertise to deliver optimized data usage and cutting-edge Improving health outcomes through information technology.Earned his HITRUST Certification in Cloud and Data Platforms (CaDP) – Powered by CloudEz™data ez™, readabl.ai – Our commitment to the highest standards in data protection and information security is unwavering. The Healthcare Triangle serves as a beacon for new technology adoption, data enlightenment, business agility, and rapid response to evolving business needs and competitive challenges. Successful in the highly regulated healthcare and life sciences space, our expertise includes cloud, security and compliance, identity management, data lifecycle management, healthcare interoperability, and clinical and business performance optimization. Excels at digital transformation. For more information, please visit www.healthcaretriangle.com.
Forward-Looking Statements and Safe Harbor Notice
All statements, other than statements of historical fact, contained in this press release are “forward-looking statements” (as that term is defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include our expectations as well as statements using forward-looking words such as “anticipate,” “anticipate,” “potential,” and “forecast.” The achievement or success of any matter covered by such forward-looking statements involves significant risks, uncertainties and assumptions. Actual results may differ materially from current expectations or implied results. Investors should read the risk factors described in the Company's Annual Report on Form 10-K filed with the SEC on March 28, 2023, subsequent filings and future reports filed with the SEC. Must read. All of our forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.
The Company cautions that the statements and assumptions in this news release are forward-looking statements and are not guarantees of future performance. Forward-looking statements are based on management's estimates and opinions at the date the statements are made. The information contained herein is current only as of the date of this document. Neither the Company nor its management undertakes any obligation to revise these statements after the date of this news release.
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