Company Reports 36% Revenue Growth
SOMERSET, N.J., May 06, 2021 (GLOBE NEWSWIRE) — CareCloud, Inc. (the “Company” or “CareCloud”) (Nasdaq: MTBC) (Nasdaq: MTBCP), a leader in healthcare technology solutions for medical practices and health systems nationwide, today announced financial and operational results for the first quarter ended March 31, 2021. The Company’s management will conduct a conference call with related slides today at 8:30 a.m. Eastern Time to discuss these results and management’s outlook.
- Revenue of $29.8 million, 36% growth over Q1 2020
- GAAP net loss declined to $2.0 million, compared to a net loss of $2.5 million in Q1 2020
- Adjusted net income of $2.9 million, or $0.20 per share
- Adjusted EBITDA of $3.7 million, 381% increase from Q1 2020
“We are pleased to report a strong start to 2021, including a 36% year-over-year increase in first quarter revenue to $29.8 million, driven in large part by integration of our 2020 acquisitions,” said A. Hadi Chaudhry, CareCloud’s Chief Executive Officer and President. “We are also proud to report a 381% increase in adjusted EBITDA year-over-year, representing our sixteenth consecutive quarter of positive adjusted EBITDA.”
“This is our first financial report since we officially changed our name from MTBC, Inc. to CareCloud, Inc.,” said Chaudhry. “The CareCloud name reflects both our legacy and our future as a technology-first leader in the industry. As we look ahead into the future, we are excited to continue to make bold moves in pursuit of our growing customer base and expansive addressable market.”
First Quarter 2021 Financial Results
Revenue for the first quarter 2021 was $29.8 million, an increase of $7.9 million or 36% from the first quarter of 2020. Bill Korn, CareCloud’s Chief Financial Officer noted: “First quarter results always include an element of seasonality due to the early-year impact annual patient deductibles have on the 65% of our revenues tied to the money collected by the doctors who are our clients. The increasing contribution from organic revenue growth in the first quarter included revenue from new clients as well as additional revenue from cross-selling existing clients, both of which will provide a boost to coming quarters as well.”
The first quarter 2021 GAAP net loss was $2.0 million, as compared to a net loss of $2.5 million in the same period last year. The GAAP net loss reflects $2.8 million of non-cash depreciation and amortization expenses and $1.3 million of stock-based compensation. The GAAP net loss was $0.36 per share, based on the net loss attributable to common shareholders, which takes into account the preferred stock dividends declared during the quarter.
Non-GAAP adjusted net income for first quarter 2021 was $2.9 million, or $0.20 per share, and is calculated using the end-of-period common shares outstanding. Non-GAAP adjusted diluted net income per share is $0.17, using end-of-period shares outstanding plus common shares issuable upon exercise of in-the-money warrants and vesting of outstanding restricted stock units.
Adjusted EBITDA for first quarter 2021 was $3.7 million, or 12% of revenue, compared to $767,000 in the same period last year. CareCloud’s adjusted EBITDA increased by approximately $2.9 million from Q1 2020, in large part due to the cost savings after integrating the businesses the Company acquired during 2020.
Cash Balance and Capital
As of March 31, 2021, the Company had approximately $21.0 million of cash.
2021 Full Year Guidance
CareCloud previously provided the following forward-looking guidance for the fiscal year ending December 31, 2021:
|For the Fiscal Year Ending December 31, 2021|
|Revenue||$133 – $137 million|
|Adjusted EBITDA||$22 – $25 million|
Bill Korn noted that “our first quarter revenue is in line with our projections to achieve full year 2021 revenue of approximately $133 to $137 million, which represents growth of 27% to 30% over 2020 revenue. This includes organic growth from new clients as well as cross-selling new services to existing clients. The year-over-year guidance also reflects the fact that revenue from the Meridian acquisition did not start until mid-June 2020.”
“We anticipate this will be our fifth consecutive year with annual revenue growth of 25% or more, a record few public companies have been able to achieve,” Bill Korn continued. “Revenue guidance is based on management’s expectations regarding revenues from existing clients and new clients acquired through organic growth and/or tuck-ins, but excludes the effects of any additional, material acquisitions.”
“Adjusted EBITDA is still expected to be $22 to $25 million for full year 2021, growth of 102% to 130% over 2020 adjusted EBITDA, as the Company realizes the benefits of cost-savings and a full-year of additional scale from the CareCloud and Meridian acquisitions in 2020,” said Bill Korn. “Between the revenue seasonality and the cost reductions which are in place, we are comfortable reaffirming our $22 to $25 million full year adjusted EBITDA guidance.”
Conference Call Information
CareCloud management will host a conference call today at 8:30 a.m. Eastern Time to discuss the first quarter 2021 results. The live webcast of the conference call and related presentation slides can be accessed under Events & Presentations at ir.carecloud.com/events/. An audio-only option is available by dialing 323-289-6581 and referencing “CareCloud First Quarter 2021 Earnings Call.” Investors who opt for audio only will need to download the related slides at ir.carecloud.com/events/.
A replay of the conference call with slides will be available approximately one hour after conclusion of the call at the same link. An audio replay can also be accessed by dialing 412-317-6671 and providing access code 6820470.
CareCloud (Nasdaq: MTBC) (Nasdaq: MTBCP) brings disciplined innovation to the business of healthcare. Our suite of technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care while reducing administrative burdens and operating costs. Learn more about our products and services including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, telehealth and patient experience management (PXM) at www.carecloud.com.
For additional information, please visit our website at www.carecloud.com. To view CareCloud’s latest investor presentations, read recent press releases, and listen to interviews with management, please visit ir.carecloud.com.
Use of Non-GAAP Financial Measures
In our earnings releases, prepared remarks, conference calls, slide presentations, and webcasts, we use and discuss non-GAAP financial measures, as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the condensed consolidated financial statements. Our earnings press releases containing such non-GAAP reconciliations can be found in the Investor Relations section of our web site at ir.carecloud.com.
This press release contains various forward-looking statements within the meaning of the federal securities laws. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “should,” “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue” or the negative of these terms or other comparable terminology.
Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management’s expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, the impact of the Covid-19 pandemic on our financial performance and business activities, and the expected results from the integration of our acquisitions.
These forward-looking statements are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry’s) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to the Company’s ability to manage growth, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, and other important risks and uncertainties referenced and discussed under the heading titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission. In addition, there is uncertainty about the spread of the Covid-19 virus and the impact it may have on the Company’s operations, the demand for the Company’s services, and economic activity in general.
The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
Chief Financial Officer
Matt Kreps, Managing Director
Darrow Associates Investor Relations