Yahoo Finance Streamline Health Solutions Inc (STRM) Q4 2023 Earnings Call Transcript Highlights: Navigating ...
Total Revenue (FY 2023): $22.6 million, down from $24.9 million in FY 2022.
Q4 Revenue (FY 2023): $5.4 million, down from $6.7 million in Q4 FY 2022.
SaaS Revenue Growth (FY 2023): Increased by $1.7 million year-over-year.
Operating Expenses (FY 2023): $42 million, up from $35.7 million in FY 2022.
Net Loss (FY 2023): $18.7 million, increased from $11.4 million in FY 2022.
Adjusted EBITDA (FY 2023): Loss of $1.4 million, improved from a loss of $3.8 million in FY 2022.
Cash on Hand: $3.2 million as of January 31, 2024, down from $6.6 million the previous year.
SaaS ACV: $15.6 million, above the $15.5 million breakeven point for adjusted EBITDA.
Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Good morning. Thank you for taking the questions. Maybe first off you noted that last year was a very challenging year from hospitals for a spending perspective. But I'm just curious, how is that environment evolved? It sounds like maybe things are getting a little bit better. I know the Change Healthcare situation last quarter kind of put a rank on things, but it does sound like things are getting a little bit better. Maybe if you could provide a little color on what you're seeing right now? A: Benjamin Stilwill - Streamline Health Solutions Inc - President, Chief Executive Officer, Director: Sure. Thanks, Matt. Yeah so I think there's a lot of health systems who are understanding that they need to straighten out their technology priorities and understand how to integrate some of the technology solutions that are out there into the problems that they're having change. Healthcare certainly had a momentary hopefully disruption into those buying cycles. But I think people have returned to saying all right, how can I solve some minor issues? As we talked about in the prepared remarks, I think the dynamic of some health systems are looking at fully outsourced solutions and others are waking up to say we can't outsource these outcomes. We need to find some of these technology vendors who can help us what are specific problems.
Q: Got it. All right. Thank you. And then maybe secondly, and this is pretty current. You've got a couple of wins on the tape here in the past week or so and that those are both cross-selling opportunities. Maybe talk a little bit more about the opportunities there on maybe what's helping drive some of those wins and where you see that going over the course of the year and going forward. A: Benjamin Stilwill - Streamline Health Solutions Inc - President, Chief Executive Officer, Director: So we mentioned that combined with one that was earlier in the calendar year that we've had to enterprise clients where they have an existing solution that and they bought our other flagship solution. In both cases, it was an example of they they've trusted us as a partner for several years, and they saw the service model that we put on top of our technology. And so when they reached out and said, hey, we're also having issues in the other areas of our revenue cycle. We know you guys have a solution as long as it's the same service model we're in. And so there was a level of trust and understanding that we have a commitment to their outcomes that really helps with the the overall selling to an enterprise client. We anticipated having some more of them if we were to do that across the client base. It's something like a $30 million total addressable ARR, which is double what our current SaaS number is today. So definitely substantial We also see consolidation of health systems. We see entities trying to expand within the footprint that they have, whether it's buying prophy or expanding to other facilities or building other facilities we're seeing a fair amount of that as well. So so we do we're very happy with the service model that we have. And if it turns out, it can turn into some material bookings as well.
Q: Got it. And just just to be clear, that $30 million ARR, that's incremental or that's the total opportunity? A: Benjamin Stilwill - Streamline Health Solutions Inc - President, Chief Executive Officer, Director: That would be the total incremental opportunity Yes, from what we had not incrementally sold. So if we sold all the solutions all the clients, that's what that would look like.
Q: Okay. Got it. And then maybe one last one. I'll hop back into queue. But with the AI. opportunity, obviously you've got the new rules for eValuator if that's a real big opportunity for you guys. But as you look out over the coming years, where else could you take that on the AI. model? Is there other opportunities on either current portfolio or on new opportunities beyond that? Thank you? A: Benjamin Stilwill - Streamline Health Solutions Inc - President, Chief Executive Officer, Director: Yes, I think so today we're using it in a very specific case. It's obviously creating a lot of value the way that we built it as we refer to it as a scaffolding. So we're looking at things that humans are doing that, not necessarily noticed by our solution and then feeding that back end so that the solution notices it in the future. We're doing it on our current data as we get more data elements from our clients, things like denials, things that we can bring in with additional data feeds. We can incrementally improve that model in a meaningful way. We see that opportunity as well. On the revenue side, probably more in the automation and the automation focus on the user always does this task whenever they're trying to reconcile a charge, the model is able to observe that and then trying to make it so that the next time they see that automatically creates the task. There is a lot of them things for a company of our size where we're trying to use tools that are out there that are democratized, but there's also just now that we've had one project that we've been able to do, we have a little bit better understanding we had to educate our subject matter experts who are medical subject-matter experts on how as digital technology works and now that we've kind of been able to do that, at least once it feels like we're going to be able to deploy this in other other areas. And we have a lot of associates who have great ideas on how we can do that in a very modular fashion. So we're excited about it. I mean there's no doubt that there's current value on it, but there's a roadmap as well for questions.
Q: That's great. I'm looking forward to hearing more about that. Thank you. A: Benjamin Stilwill - Streamline Health Solutions Inc - President, Chief Executive Officer, Director: Yes.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
