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Streamline Health® Reports Fiscal Fourth Quarter and Full Year 2022 Financial Results
- Fiscal 2022 SaaS revenue up 53% vs fiscal 2021
- Total contract value of fiscal 2022 SaaS bookings was
$22.4 million compared to$5.6 million in fiscal 2021 - Reported
$17.2 million of Booked SaaS ACV as ofJanuary 31, 2023 , compared to$10.6 million as ofJanuary 31, 2022 - Executed strategic alignment of eValuator and Avelead operations
Fiscal Fourth Quarter and Full Year 2022 Financial Results
The following financial results have been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”). Fiscal 2022 financial results reflect the consolidation of the Company with Avelead
Total revenues for the fourth quarter of fiscal 2022 were
The Company is focused on the growth of its SaaS solutions. During the fourth quarter of fiscal 2022, SaaS revenue grew
Net loss for the fourth quarter of fiscal 2022 was
Net loss for fiscal 2022 was
Full Year 2022 Pro Forma and Non-GAAP Metrics
The following financial results for Fiscal 2021 are pro forma and have not been prepared in accordance with GAAP. These pro forma financial results represent the consolidation of the Company with Avelead as if Avelead’s operations were fully recognized during the comparable period.
Consolidated revenue for fiscal 2022 was
Adjusted EBITDA for the fourth quarter of fiscal 2022 was a loss of
As of
Management Commentary
“We were pleased to achieve our bookings targets in fiscal 2022 and believe the strategic alignment we undertook in the fourth quarter will enable to us to maintain this level of execution going forward,” stated Tee Green, Chief Executive Officer,
Conference Call
The Company will conduct a conference call on
A replay of the conference call will be available from
About
Non-GAAP Financial Measures
Streamline reports its financial results in accordance with
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, non-cash valuation adjustments, gains and losses on early extinguishments of debt, significant non-recurring operating expenses, and transactional related expenses including: associate severances and related restructuring expenses, transaction-related bonuses, associate inducements, and professional and advisory fees. A table reconciling this measure to “loss from continuing operations” 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
Company Contact
Director, Investor Relations and FP&A
303-887-9625
Jacob.goldberger@streamlinehealth.net
CONSOLIDATED STATEMENTS OF OPERATIONS
(rounded to the nearest thousand dollars, except share and per share information)
| Three Months Ended |
Twelve Months Ended |
|||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenues: | ||||||||||||||||
| Software as a service | $ | 3,169,000 | $ | 2,767,000 | $ | 12,326,000 | $ | 8,077,000 | ||||||||
| Maintenance and support | 1,135,000 | 1,097,000 | 4,483,000 | 4,323,000 | ||||||||||||
| Professional fees and licenses | 2,441,000 | 2,182,000 | 8,080,000 | 4,979,000 | ||||||||||||
| Total revenues | 6,745,000 | 6,046,000 | 24,889,000 | 17,379,000 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Cost of software as a service | 1,587,000 | 1,141,000 | 6,358,000 | 3,417,000 | ||||||||||||
| Cost of maintenance and support | 207,000 | 111,000 | 427,000 | 334,000 | ||||||||||||
| Cost of professional fees and licenses | 1,618,000 | 1,829,000 | 6,610,000 | 4,826,000 | ||||||||||||
| Selling, general and administrative expense | 3,646,000 | 3,424,000 | 16,134,000 | 11,931,000 | ||||||||||||
| Research and development | 1,515,000 | 1,502,000 | 6,042,000 | 4,782,000 | ||||||||||||
| Acquisition-related costs | 8,000 | 146,000 | 149,000 | 2,856,000 | ||||||||||||
| Total operating expenses | 8,581,000 | 8,153,000 | 35,720,000 | 28,146,000 | ||||||||||||
| Operating loss | (1,836,000 | ) | (2,107,000 | ) | (10,831,000 | ) | (10,767,000 | ) | ||||||||
| Other expense: | ||||||||||||||||
| Interest expense | (230,000 | ) | (129,000 | ) | (749,000 | ) | (236,000 | ) | ||||||||
| Loss on early extinguishment of debt | — | — | — | (43,000 | ) | |||||||||||
| Acquisition earnout valuation adjustments | (117,000 | ) | 2,268,000 | 71,000 | 1,851,000 | |||||||||||
| Other | 50,000 | 64,000 | 201,000 | 60,000 | ||||||||||||
| PPP loan forgiveness | — | — | — | 2,327,000 | ||||||||||||
| Income/(Loss) from continuing operations before income taxes | (2,133,000 | ) | 96,000 | (11,308,000 | ) | (6,808,000 | ) | |||||||||
| Income tax expense | (49,000 | ) | (100,000 | ) | (71,000 | ) | (109,000 | ) | ||||||||
| Loss from continuing operations | (2,182,000 | ) | (4,000 | ) | (11,379,000 | ) | (6,917,000 | ) | ||||||||
| Income from discontinued operations: | ||||||||||||||||
| Income from discontinued operations | — | — | — | 401,000 | ||||||||||||
| Income tax expense | — | (26,000 | ) | — | (26,000 | ) | ||||||||||
| Income from discontinued operations, net of tax | — | (26,000 | ) | — | 375,000 | |||||||||||
| Net loss | $ | (2,182,000 | ) | $ | (30,000 | ) | $ | (11,379,000 | ) | $ | (6,542,000 | ) | ||||
| Basic Earnings Per Share: | ||||||||||||||||
| Continuing operations | $ | (0.04 | ) | $ | (0.00 | ) | $ | (0.23 | ) | $ | (0.16 | ) | ||||
| Discontinued operations | — | (0.00 | ) | — | 0.01 | |||||||||||
| Net loss | $ | (0.04 | ) | $ | (0.00 | ) | $ | (0.23 | ) | $ | (0.15 | ) | ||||
| Weighted average number of common shares – basic | 55,309,665 | 46,764,335 | 49,324,858 | 42,815,239 | ||||||||||||
| Diluted Earnings Per Share: | ||||||||||||||||
| Continuing operations | $ | (0.04 | ) | $ | (0.00 | ) | $ | (0.23 | ) | $ | (0.16 | ) | ||||
| Discontinued operations | — | (0.00 | ) | — | 0.01 | |||||||||||
| Net loss per common share – diluted | $ | (0.04 | ) | $ | (0.00 | ) | $ | (0.23 | ) | $ | (0.15 | ) | ||||
| Weighted average number of common shares - diluted | 55,309,665 | 46,764,335 | 49,324,858 | 43,273,574 | ||||||||||||
CONSOLIDATED BALANCE SHEETS
(rounded to the nearest thousand dollars, except share and per share information)
| 2023 | 2022 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 6,598,000 | $ | 9,885,000 | ||||
| Accounts receivable, net of allowance for doubtful accounts of |
7,719,000 | 3,823,000 | ||||||
| Contract receivables | 960,000 | 843,000 | ||||||
| Prepaid and other current assets | 710,000 | 568,000 | ||||||
| Total current assets | 15,987,000 | 15,119,000 | ||||||
| Non-current assets: | ||||||||
| Property and equipment, net of accumulated amortization of |
79,000 | 123,000 | ||||||
| Right-of use asset for operating lease | 32,000 | 218,000 | ||||||
| Capitalized software development costs, net of accumulated amortization of |
5,846,000 | 5,555,000 | ||||||
| Intangible assets, net of accumulated amortization of |
14,793,000 | 16,763,000 | ||||||
| 23,089,000 | 23,089,000 | |||||||
| Other | 1,695,000 | 948,000 | ||||||
| Total non-current assets | 45,534,000 | 46,696,000 | ||||||
| Total assets | $ | 61,521,000 | $ | 61,815,000 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 626,000 | $ | 778,000 | ||||
| Accrued expenses | 3,265,000 | 1,803,000 | ||||||
| Current portion of term loan, net of deferred financing costs | 750,000 | 250,000 | ||||||
| Deferred revenues | 8,361,000 | 5,794,000 | ||||||
| Current portion of operating lease obligation | 35,000 | 204,000 | ||||||
| Current portion of acquisition earnout liability | 3,738,000 | 4,672,000 | ||||||
| Total current liabilities | 16,775,000 | 13,501,000 | ||||||
| Non-current liabilities: | ||||||||
| Term loan, net of current portion and deferred financing costs | 8,964,000 | 9,654,000 | ||||||
| Deferred revenues, less current portion | 167,000 | 136,000 | ||||||
| Operating lease obligations, less current portion | — | 33,000 | ||||||
| Acquisition earnout liability, less current portion | — | 4,161,000 | ||||||
| Other non-current liabilities | 104,000 | 286,000 | ||||||
| Total non-current liabilities | 9,235,000 | 14,270,000 | ||||||
| Total liabilities | 26,010,000 | 27,771,000 | ||||||
| Commitments and contingencies: | ||||||||
| Stockholders’ equity | ||||||||
| Common stock, |
576,000 | 478,000 | ||||||
| Additional paid in capital | 131,973,000 | 119,225,000 | ||||||
| Accumulated deficit | (97,038,000 | ) | (85,659,000 | ) | ||||
| Total stockholders’ equity | 35,511,000 | 34,044,000 | ||||||
| Total liabilities and stockholders’ equity | $ | 61,521,000 | $ | 61,815,000 | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
(rounded to the nearest thousand dollars)
| Fiscal Year | ||||||||
| 2022 | 2021 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (11,379,000 | ) | $ | (6,542,000 | ) | ||
| LESS: Income from discontinued operations, net of tax | — | (375,000 | ) | |||||
| Loss from continuing operations, net of tax | (11,379,000 | ) | (6,917,000 | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 4,313,000 | 3,697,000 | ||||||
| Acquisition earnout valuation adjustments | (71,000 | ) | (1,851,000 | ) | ||||
| Loss on early extinguishment of debt | — | 43,000 | ||||||
| Provision for deferred income taxes | 9,000 | 95,000 | ||||||
| Share-based compensation expense | 1,680,000 | 2,216,000 | ||||||
| Provision for accounts receivable allowance | 189,000 | 11,000 | ||||||
| Forgiveness of PPP loan | — | (2,327,000 | ) | |||||
| Changes in assets and liabilities: | ||||||||
| Accounts and contract receivables | (4,202,000 | ) | (129,000 | ) | ||||
| Other assets | (1,197,000 | ) | (346,000 | ) | ||||
| Accounts payable | (152,000 | ) | 17,000 | |||||
| Accrued expenses and other liabilities | 1,069,000 | 533,000 | ||||||
| Deferred revenues | 2,598,000 | 1,074,000 | ||||||
| Net cash used in operating activities – continuing operations | (7,143,000 | ) | (3,884,000 | ) | ||||
| Net cash provided by operating activities – discontinued operations | — | 380,000 | ||||||
| Cash flows from investing activities: | ||||||||
| Investment in Avelead, net of cash acquired | — | (12,470,000 | ) | |||||
| Purchases of property and equipment | (10,000 | ) | (41,000 | ) | ||||
| Proceeds from sale of ECM Assets | — | 800,000 | ||||||
| Capitalization of software development costs | (1,925,000 | ) | (1,458,000 | ) | ||||
| Net cash used in investing activities – continuing operations | (1,935,000 | ) | (13,169,000 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuance of common stock | 8,316,000 | 16,100,000 | ||||||
| Payment of acquisition earnout liabilities | (2,012,000 | ) | — | |||||
| Payments for costs directly attributable to the issuance of common stock | (52,000 | ) | (1,313,000 | ) | ||||
| Repayment of bank term loan | (250,000 | ) | — | |||||
| Proceeds from term loan payable | — | 10,000,000 | ||||||
| Payments related to settlement of employee shared-based awards | (197,000 | ) | (464,000 | ) | ||||
| Payment of deferred financing costs | (20,000 | ) | (168,000 | ) | ||||
| Other | 6,000 | (6,000 | ) | |||||
| Net cash provided by financing activities – continuing operations | 5,791,000 | 24,149,000 | ||||||
| Net (decrease) increase in cash and cash equivalents | (3,287,000 | ) | 7,476,000 | |||||
| Cash and cash equivalents at beginning of period | 9,885,000 | 2,409,000 | ||||||
| Cash and cash equivalents at end of period | $ | 6,598,000 | $ | 9,885,000 | ||||
| Supplemental cash flow disclosures: | ||||||||
| Interest paid, net of amounts capitalized | $ | 651,000 | $ | 153,000 | ||||
| Income taxes paid | $ | 23,000 | $ | 21,000 | ||||
NEW BOOKINGS
(rounded to the nearest thousand dollars)
| Three Months Ended |
Twelve Months Ended |
|||||||
| Software as a service | 8,325,000 | 22,447,000 | ||||||
| Maintenance and support | 656,000 | 712,000 | ||||||
| Professional fees and licenses | 1,595,000 | 3,303,000 | ||||||
| Q4 2022 Bookings | $ | 10,576,000 | 26,462,000 | |||||
| Q4 2021 Bookings | $ | 7,053,966 | 13,253,236 | |||||
*Bookings are presented on a total contract value basis, and include Avelead from the acquisition date, August 16, 2021
RECONCILIATION OF LOSS FROM CONTINUING OPERATIONS TO NON-GAAP ADJUSTED EBITDA
(rounded to the nearest thousand dollars)
| Three Months Ended |
Twelve Months Ended |
|||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Loss from Continuing Operations | $ | (2,182,000 | ) | $ | (4,000 | ) | $ | (11,379,000 | ) | $ | (6,917,000 | ) | ||||
| Interest expense | 230,000 | 129,000 | 749,000 | 236,000 | ||||||||||||
| Income tax benefit | 49,000 | 100,000 | 71,000 | 109,000 | ||||||||||||
| Depreciation and amortization | 1,021,000 | 1,104,000 | 4,233,000 | 3,646,000 | ||||||||||||
| EBITDA | (882,000 | ) | 1,329,000 | (6,326,000 | ) | (2,926,000 | ) | |||||||||
| Share-based compensation expense | 468,000 | 557,000 | 1,680,000 | 2,216,000 | ||||||||||||
| Non-cash valuation adjustments | 117,000 | (2,268,000 | ) | (71,000 | ) | (1,851,000 | ) | |||||||||
| Acquisition-related costs, severance, and transaction-related bonuses | 139,000 | 147,000 | 1,149,000 | 2,856,000 | ||||||||||||
| Forgiveness of PPP Loan and accrued interest | - | - | - | (2,327,000 | ) | |||||||||||
| Other non-recurring operating expenses | (49,000 | ) | (64,000 | ) | (189,000 | ) | (48,000 | ) | ||||||||
| Loss on early extinguishment of debt | - | - | - | 43,000 | ||||||||||||
| Adjusted EBITDA | (207,000 | ) | (299,000 | ) | (3,757,000 | ) | (2,037,000 | ) | ||||||||
Source: Streamline Health Solutions, Inc.