In This Article:
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Total Bookings: $21 million in Q3, a 40% increase year-over-year.
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Revenue: $83.8 million in Q3, up just over 1% year-over-year.
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Financial Health Revenue: $54.3 million, up approximately 17% year-over-year.
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Patient Care Revenue: $29.6 million, decreased 18% year-over-year.
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Adjusted EBITDA: $13.8 million in Q3, a 42% increase year-over-year.
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Adjusted EBITDA Margin: 16.5% in Q3, up from 11.4% in Q1.
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Cash Flow from Operations: $21.8 million year-to-date, an improvement of $8.5 million year-over-year.
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Gross Margin: 49.5%, increased 250 basis points year-over-year.
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Financial Health Gross Margin: 46.2%, up 450 basis points year-over-year.
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Patient Care Gross Margin: 55.4%, up 160 basis points year-over-year.
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Operating Expenses: $39.5 million, representing 47.1% of revenue, down from 53.3% a year ago.
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Net Debt: $168 million at the end of Q3.
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Leverage Ratio: Mid-3s, with a goal to reduce to 2.5 to 3x.
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Q4 Revenue Guidance: $83.5 million to $85.5 million.
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Q4 Adjusted EBITDA Guidance: $13.5 million to $14.5 million.
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Full Year Revenue Guidance: $335 million to $337 million.
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Full Year Adjusted EBITDA Guidance: $49 million to $50 million.
Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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TruBridge Inc (NASDAQ:TBRG) reported strong bookings for the fourth consecutive quarter, exceeding $20 million.
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Financial Health revenue grew by 5% organically, with core CBO business up by double digits.
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Adjusted EBITDA increased, with margins expanding to 16.5% this quarter.
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Cash flow from operations improved significantly, reaching $22 million year-to-date, up by $9 million compared to last year.
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The integration of the Viewgol acquisition is progressing well, with plans to double the number of customers supported by the workforce in India by the end of 2025.
Negative Points
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Patient Care revenue decreased by 18% compared to last year, primarily due to the impact of divestitures and sunsetting of certain products.
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There are ongoing challenges with stabilizing operations and achieving significant margin improvements, expected to yield results in 2025.
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The company identified two material weaknesses in internal controls, though plans are in place for remediation.
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There is a need for careful management of customer transitions to offshore services to maintain service quality.
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The competitive environment remains challenging, with peers announcing new products and market entries.
Q & A Highlights
Q: Can you provide insights into the characteristics of new clients in the Financial Health segment? Are these predominantly smaller hospitals, or are you gaining traction with larger institutions? A: We are starting to see momentum in the 100- to 400-bed space, moving beyond our traditional base of critical access and rural hospitals. The macro demand remains consistent, with ongoing labor pressures and billing complexities, particularly with the shift towards Medicare Advantage. - Christopher Fowler, CEO