Stanislav Berenshteyn's questions to Health Catalyst (HCAT) leadership • Q1 2025
Question
Stanislav Berenshteyn from Wells Fargo asked if the pricing pressure from DOS clients migrating to Ignite would be more pronounced in 2025 than 2026, and also inquired about the difference in sales win rates between Ignite and DOS.
Answer
CEO Dan Burton agreed that the dollar-based retention headwinds from migrations would be felt more in 2025, as two-thirds of the process is expected to be complete by year-end. Regarding win rates, he emphasized that Ignite's lower price point unlocks a massive cross-sell opportunity with over 900 app-layer clients, an opportunity that was largely inaccessible with the expensive DOS platform. He noted a 2-to-3x higher conversion rate when cross-selling to an existing client versus pursuing a new one.