Press Release
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Streamline Health® Reports Fiscal First Quarter 2024 Financial Results
- Net loss of (
$2.7 million ) during the first quarter of fiscal 2024 compared to net loss of ($2.9 million ) during the first quarter of fiscal 2023 - Adjusted EBITDA improved to a loss of (
$0.7 million ) during the first quarter of fiscal 2024 vs. a loss of ($1.3 million ) during the first quarter of fiscal 2023 $15.6 million of Booked SaaS ACV as ofApril 30, 2024 vs.$15.0 million of booked SaaS ACV as ofJanuary 31, 2024 - Company reiterated
$15.5 million implemented SaaS ARR adjusted EBITDA breakeven run rate expectation
Fiscal First Quarter Financial Results
Total revenue for the first quarter of fiscal 2024 was
SaaS revenue totaled
Net loss for the first quarter of fiscal 2024 was (
Cash and cash equivalents as of
Adjusted EBITDA for the first quarter of fiscal 2024 was (
As of
Booked SaaS ACV represents the annualized value of all executed SaaS contracts, including contracts that have not been fully implemented as of the measurement date, assuming any contract that expires during the twelve months following the measurement date is renewed on its existing terms unless the Company has knowledge of the non-renewal.
The Company reiterated that it believes its adjusted EBITDA breakeven run rate is
Management Commentary
“As a result of executing contract implementations while expanding our footprint with new and existing clients we expect to achieve ongoing adjusted EBITDA profitability during the second half of this fiscal year,” stated
Conference Call
The Company will conduct a conference call on
A replay of the conference call will be available from
About Streamline
Non-GAAP Financial Measures
Streamline reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). Streamline’s management also evaluates and makes operating decisions using various other measures. One such measure is adjusted EBITDA, which is a non-GAAP financial measure. Streamline’s management believes that this measure provides useful supplemental information regarding the performance of Streamline’s business operations.
Streamline defines “adjusted EBITDA” as net earnings (loss) plus interest expense, tax expense, depreciation and amortization expense of tangible and intangible assets, share-based compensation expense, significant non-recurring operating expenses, restructuring expenses, impairment of goodwill and long-lived assets and transactional related expenses including: gains and losses on debt and equity conversions, associate severances and related alignment expenses, associate inducements, and professional and advisory fees. A table reconciling this measure to “net loss,” to the extent relevant items were recognized in the periods covered, is included in this press release.
Booked SaaS ACV represents the annualized value of all executed SaaS contracts, including contracts that have not been fully implemented, as of the measurement date, assuming any contract that expires during the twelve months following the measurement date is renewed on its existing terms unless the Company has knowledge of the non-renewal. Booked SaaS ACV should be viewed independently of revenue and does not represent revenue calculated in accordance with GAAP on an annualized basis, as it is an operating metric that can be impacted by contract execution start and end dates and renewal rates. Booked SaaS ACV is not intended to be a replacement for, or forecast of, revenue. There is no GAAP measure comparable to Booked SaaS ACV.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made by Streamline Health Solutions, Inc. that are not historical facts are forward-looking statements that are subject to certain risks, uncertainties and important factors that could cause actual results to differ materially from those reflected in the forward-looking statements included herein. Forward-looking statements contained in this press release include, without limitation, statements regarding the Company’s growth prospects, anticipated bookings, recognition of revenue from contracts included in Booked SaaS ACV, anticipated cost savings from previously announced strategic restructuring, expected improved implementation timelines and lower expenses for our clients, industry trends and market growth, adjusted EBITDA, success of future products and related expectations and assumptions. These risks and uncertainties include, but are not limited to, the timing of contract negotiations and execution of contracts and the related timing of the revenue recognition related thereto, the potential cancellation of existing contracts or clients not completing projects included in the backlog and Booked SaaS ACV, achievement of a breakeven SaaS ARR run rate, the impact of competitive solutions and pricing, solution demand and market acceptance, new solution development and enhancement of current solutions, key strategic alliances with vendors and channel partners that resell the Company’s solutions, the ability of the Company to generate cash from operations, the availability of additional debt and equity financing to fund the Company’s ongoing operations, the ability of the Company to control costs, the effects of cost-containment measures implemented by the Company, availability of solutions from third party vendors, the healthcare regulatory environment, potential changes in legislation, regulation and government funding affecting the healthcare industry, healthcare information systems budgets, availability of healthcare information systems trained personnel for implementation of new systems, as well as maintenance of legacy systems, fluctuations in operating results, effects of critical accounting policies and judgments, changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other similar entities, changes in economic, business and market conditions impacting the healthcare industry generally and the markets in which the Company operates and nationally, the Company’s ability to maintain compliance with the terms of its credit facilities, and other risks detailed from time to time in the Streamline Health Solutions, Inc. filings with the U.
Company Contact
Vice President, Finance
303-887-9625
jacob.goldberger@streamlinehealth.net
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| (rounded to the nearest thousand dollars, except share and per share information) | |||||||
| Three Months Ended |
|||||||
| 2024 | 2023 | ||||||
| Revenues: | |||||||
| Software as a service | $ | 2,723,000 | $ | 3,175,000 | |||
| Maintenance and support | 890,000 | 1,157,000 | |||||
| Professional fees and licenses | 717,000 | 1,000,000 | |||||
| Total revenues | 4,330,000 | 5,332,000 | |||||
| Operating expenses | |||||||
| Cost of software as a service | 1,348,000 | 1,589,000 | |||||
| Cost of maintenance and support | 42,000 | 89,000 | |||||
| Cost of professional fees and licenses | 887,000 | 1,108,000 | |||||
| Selling, general and administrative expense | 3,192,000 | 3,841,000 | |||||
| Research and development | 1,111,000 | 1,701,000 | |||||
| Total operating expenses | 6,580,000 | 8,328,000 | |||||
| Operating loss | (2,250,000 | ) | (2,996,000 | ) | |||
| Other (expense)/income: | |||||||
| Interest expense | (465,000 | ) | (248,000 | ) | |||
| Valuation adjustments | (24,000 | ) | 364,000 | ||||
| Other | - | 32,000 | |||||
| Loss before income taxes | (2,739,000 | ) | (2,848,000 | ) | |||
| Income tax benefit (expense) | - | (53,000 | ) | ||||
| Net loss | $ | (2,739,000 | ) | $ | (2,901,000 | ) | |
| Basic and Diluted Earnings Per Share: | |||||||
| Net loss per share, basic and diluted | $ | (0.05 | ) | $ | (0.05 | ) | |
| Weighted average number of common shares - basic and diluted | 58,224,090 | 55,970,880 | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (rounded to the nearest thousand dollars, except share and per share information) | ||||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,979,000 | $ | 3,190,000 | ||||
| Accounts receivable, net of allowance for credit losses of |
4,706,000 | 4,237,000 | ||||||
| Contract receivables | 294,000 | 780,000 | ||||||
| Prepaid and other current assets | 722,000 | 629,000 | ||||||
| Total current assets | 9,701,000 | 8,836,000 | ||||||
| Non-current assets: | ||||||||
| Property and equipment, net of accumulated amortization of |
76,000 | 88,000 | ||||||
| Capitalized software development costs, net of accumulated amortization of |
5,624,000 | 5,798,000 | ||||||
| Intangible assets, net of accumulated amortization of |
11,662,000 | 12,071,000 | ||||||
| 13,276,000 | 13,276,000 | |||||||
| Other | 1,386,000 | 1,666,000 | ||||||
| Total non-current assets | 32,024,000 | 32,899,000 | ||||||
| Total assets | $ | 41,725,000 | $ | 41,735,000 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,120,000 | $ | 1,253,000 | ||||
| Accrued expenses | 1,777,000 | 2,023,000 | ||||||
| Current portion of term loan | 1,750,000 | 1,500,000 | ||||||
| Deferred revenues | 7,351,000 | 7,112,000 | ||||||
| Acquisition earnout liability | 817,000 | 1,794,000 | ||||||
| Total current liabilities | 12,815,000 | 13,682,000 | ||||||
| Non-current liabilities: | ||||||||
| Term loan, net of current portion and deferred financing costs | 7,089,000 | 7,566,000 | ||||||
| Line of credit | — | 1,500,000 | ||||||
| Notes payable, net of current portion and deferred financing costs | 3,587,000 | — | ||||||
| Warrants - common stock | 746,000 | — | ||||||
| Deferred revenues, less current portion | 185,000 | 173,000 | ||||||
| Total non-current liabilities | 11,607,000 | 9,239,000 | ||||||
| Total liabilities | 24,422,000 | 22,921,000 | ||||||
| Commitments and contingencies – Note 8 | ||||||||
| Stockholders’ equity: | ||||||||
| Common stock, |
617,000 | 590,000 | ||||||
| Additional paid in capital | 135,124,000 | 133,923,000 | ||||||
| Accumulated deficit | (118,438,000 | ) | (115,699,000 | ) | ||||
| Total stockholders’ equity | 17,303,000 | 18,814,000 | ||||||
| Total liabilities and stockholders’ equity | $ | 41,725,000 | $ | 41,735,000 | ||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (rounded to the nearest thousand dollars) | ||||||||
| Three Months Ended |
||||||||
| 2024 | 2023 | |||||||
| Net loss | $ | (2,739,000 | ) | $ | (2,901,000 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 1,120,000 | 1,059,000 | ||||||
| Accrued interest expense - notes payable | 152,000 | — | ||||||
| Valuation adjustments | 24,000 | (364,000 | ) | |||||
| Benefit for deferred income taxes | — | 39,000 | ||||||
| Share-based compensation expense | 499,000 | 572,000 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts and contract receivables | 17,000 | 3,900,000 | ||||||
| Other assets | (100,000 | ) | (15,000 | ) | ||||
| Accounts payable | (161,000 | ) | (327,000 | ) | ||||
| Accrued expenses and other liabilities | (262,000 | ) | (795,000 | ) | ||||
| Deferred revenue | 251,000 | (1,042,000 | ) | |||||
| Net cash (used in) provided by operating activities | (1,199,000 | ) | 126,000 | |||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | — | (29,000 | ) | |||||
| Capitalization of software development costs | (232,000 | ) | (404,000 | ) | ||||
| Net cash (used in) investing activities | (232,000 | ) | (433,000 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Repayment of bank term loan | (250,000 | ) | (125,000 | ) | ||||
| Repayment of line of credit | (1,500,000 | ) | — | |||||
| Proceeds from issuance of common stock | 100,000 | — | ||||||
| Proceeds from notes payable | 4,400,000 | — | ||||||
| Payments of acquisition earnout liabilities | (447,000 | ) | — | |||||
| Payments for deferred financing costs | (16,000 | ) | — | |||||
| Payments related to settlement of employee share-based awards | (67,000 | ) | (179,000 | ) | ||||
| Net cash (used in) provided by financing activities | 2,220,000 | (304,000 | ) | |||||
| Net (decrease) increase in cash and cash equivalents | 789,000 | (611,000 | ) | |||||
| Cash and cash equivalents at beginning of period | 3,190,000 | 6,598,000 | ||||||
| Cash and cash equivalents at end of period | $ | 3,979,000 | $ | 5,987,000 | ||||
| RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED EBITDA | ||||||||
| (Unaudited, rounded to the nearest thousand dollars) | ||||||||
| Three Months Ended | ||||||||
| In thousands, except per share data | ||||||||
| Adjusted EBITDA Reconciliation | ||||||||
| Net Loss | $ | (2,739 | ) | $ | (2,901 | ) | ||
| Interest expense | 465 | 248 | ||||||
| Income tax expense | — | 53 | ||||||
| Depreciation and amortization | 1,017 | 1,031 | ||||||
| EBITDA | $ | (1,257 | ) | $ | (1,569 | ) | ||
| Share-based compensation expense | 499 | 572 | ||||||
| Non-cash valuation adjustments | 24 | (364 | ) | |||||
| Acquisition-related costs, severance, and transaction-related bonuses | 31 | 57 | ||||||
| Other non-recurring charges | — | (33 | ) | |||||
| Adjusted EBITDA | $ | (703 | ) | $ | (1,337 | ) | ||
Source: Streamline Health Solutions, Inc.