In This Article:
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Revenue: $2.5 million, a 17% year-over-year decrease.
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Gross Margin: 65.7%, increased from 63.6% in Q1 2024, decreased from 72.8% in Q2 2023.
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Cash Flow from Operations: Negative $4.5 million, compared to negative $5.1 million in Q2 2023 and negative $3.3 million in Q1 2024.
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Cash Balance: $7.3 million at the end of the quarter.
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Enrolled Members: 1,752 at the end of the quarter, up from 1,521 at the beginning.
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Revenue per Health Plan Enrolled Member: $463 per month, down from $504 in Q1 2024 and $528 in Q2 2023.
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Enrollment Rate: 61% annualized, compared to 108% in Q1 2024 and 43% in Q2 2023.
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Average Monthly Disenrollment Rate: 10%, compared to 22% in Q1 2024 and 12% in Q2 2023.
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Cash Proceeds from Warrant Exercise: $2 million received during the quarter.
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Q3 2024 Revenue Guidance: $2.4 million to $2.8 million.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ontrak Inc (NASDAQ:OTRK) signed a contract with a prestigious regional health plan in the Northeast, expected to double their current outreach pool.
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The company demonstrated significant cost savings with an existing Medicaid customer, showing $721 per member per month in medical cost savings.
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Ontrak Inc (NASDAQ:OTRK) has a strong pipeline with approximately 26 active prospects representing about 15 million members.
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The company successfully launched its Engage program with a new customer, enrolling 58 members.
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Ontrak Inc (NASDAQ:OTRK) has improved operational efficiency with AI integration and other advanced systems, preparing them to operate at scale.
Negative Points
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Revenue for the second quarter decreased by 17% year-over-year, primarily due to a decrease in total average enrolled members.
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The company recorded a negative cash flow from operations of $4.5 million in the second quarter.
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Per member per month revenue decreased from $528 in Q2 2023 to $463 in Q2 2024.
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The enrollment rate dropped to 61% in Q2 2024 from 108% in Q1 2024.
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Ontrak Inc (NASDAQ:OTRK) anticipates lower per member per month revenue for the remainder of the year due to new pricing strategies and an increase in Engage members.
Q & A Highlights
Q: Do you expect quarter-over-quarter revenue growth starting in the fourth quarter? A: James Park, CFO, stated that revenue contribution is expected to start in Q4, but it will still be ramping up, with more significant growth anticipated early next year.
Q: How much of the Keep Well Agreement funds have been drawn, and how much is left? A: James Park, CFO, confirmed that $4.5 million has been drawn from the Keep Well Agreement, leaving $10.5 million available for future draws.