Number of medical practices under management (count)

Percentage of total expenses from offshore operations (percent)

Percentage of foreign expenses that are personnel-related (percent)

Estimated client life (years)

7d7a5517e6b931aca3068b251588786c48e6d12dbe9eff0915b11147fe2bfe5e

299f7e625acf38cd4a7b7838a14a8e81f3feb477bd0ca11e2de0af039a9c991f

9f4b3a8ed3f3dc4acc716b1b8bdb647ae39ee1ec496fa044354e12cba76f1e07

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

df74db0c0d2a3a6a205048908974bb73ba49b73ec1db8d21bba9be11c26e8c22

Healthcare IT

- Technology-enabled business solutions

- Professional services

- Printing and mailing services

- Group purchasing services

Medical Practice Management

- Medical practice management services

Ancillary services

Clearinghouse and EDI services

Enrollment Plus

Total Revenue

d82afa017886e6c2c054ab646fa8367f05ec9c4cb13f4b2dbc3103b37e5b4786

Net Revenue (USD, thousands)

Direct Operating Costs (USD, thousands)

Selling and Marketing Expenses (USD, thousands)

General and Administrative Expenses (USD, thousands)

Research and Development Expenses (USD, thousands)

Depreciation and Amortization (USD, thousands)

Loss on Lease Terminations, Unoccupied Lease Charges and Restructuring Costs (USD, thousands)

Total Operating Expenses (USD, thousands)

Operating Income (Loss) (USD, thousands)

Interest Income (USD, thousands)

Interest Expense (USD, thousands)

Other Income (Expense) - Net (USD, thousands)

Income (Loss) Before Provision for Income Taxes (USD, thousands)

Income Tax Provision (USD, thousands)

Net Income (Loss) (USD, thousands)

Preferred Stock Dividend (USD, thousands)

Net Loss Attributable to Common Shareholders (USD, thousands)

6b609788821f5f9dc51ae2cd725e4153d84b2dd46b89409c0176d3cf9a01ef62

Accounts receivable - net (USD, thousands)

Contract asset (USD, thousands)

Inventory (USD, thousands)

Current assets - related party (USD, thousands)

Prepaid expenses and other current assets (USD, thousands)

Total current assets (USD, thousands)

Property and equipment - net (USD, thousands)

Operating lease right-of-use assets (USD, thousands)

Intangible assets - net (USD, thousands)

Goodwill (USD, thousands)

Other assets (USD, thousands)

TOTAL ASSETS (USD, thousands)

Accounts payable (USD, thousands)

Accrued compensation (USD, thousands)

Accrued expenses (USD, thousands)

Operating lease liability (current portion) (USD, thousands)

Deferred revenue (current portion) (USD, thousands)

Notes payable (current portion) (USD, thousands)

Dividend payable (USD, thousands)

Total current liabilities (USD, thousands)

Notes payable (USD, thousands)

Operating lease liability (USD, thousands)

Deferred revenue (USD, thousands)

Total liabilities (USD, thousands)

Additional paid-in capital (USD, thousands)

Accumulated deficit (USD, thousands)

Accumulated other comprehensive loss (USD, thousands)

Less: 740,799 common shares held in treasury, at cost (USD, thousands)

Total shareholders’ equity (USD, thousands)

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (USD, thousands)

46e6e793700e5373d91d5bfaaaa094d98361f9aeb21c9d422db13e493198fa25

Operating cash flow in Q4 2023 was notably low due to several factors. The company reported a significant net loss of **$48.7 million** compared to a net income in the previous period, which greatly impacted its cash flow. Additionally, there was a substantial **$42 million non-cash goodwill impairment charge** that adversely affected the operating cash results. Increased depreciation and amortization expenses, along with unfavorable changes in operating assets and liabilities (including a rise in accounts receivable), further contributed to the lower operating cash flow in this period.  **[0001493152-24-010726_ex99-1.htm:7]** **[0001493152-24-010800_form10-k.htm:78]** **[0001493152-24-010726_ex99-1.htm:0]** 

Why was Operating Cash Flow so low in Q4 2023?

The decline in operating cash flow in FY 2023 was primarily driven by a **significant net loss** that resulted from a **$42,000 thousand goodwill impairment charge** and a **16% decline in revenue** (a drop of **$21,767 thousand**). These factors outweighed increases in non-cash adjustments and favorable changes in certain working capital items, leading cash flow from operations to fall from **$21,151 thousand in FY 2022** to **$15,461 thousand in FY 2023**.  **[0001493152-24-010800_form10-k.htm:78]** **[0001493152-24-010800_form10-k.htm:112]** **[0001493152-24-010726_ex99-1.htm:0]** **[0001493152-24-010726_ex99-1.htm:6]** 

What contributed to the decline in Operating Cash Flow in FY 2023?

The significant jump in Q3 2024 operating cash flow was driven by a combination of factors. **Improved profitability** played a major role, with the company turning around its GAAP net income to **$3.1 million** from a net loss in the previous year, which provided a stronger cash flow basis.  **[0001493152-24-044505_ex99-1.htm:0]** **[0001493152-24-044794_form10-q.htm:5]**  Additionally, there was a **reduction in operating expenses**—dropping from **$31,250 thousand** to **$25,281 thousand**—further boosting cash flow.  **[0001493152-24-044794_form10-q.htm:5]**  Important non-cash adjustments, notably **depreciation and amortization expenses** of **$3.2 million**, also supported the improvement.  **[0001493152-24-044794_form10-q.htm:42]** **[0001493152-24-044794_form10-q.htm:5]**  Moreover, beneficial **working capital changes** and a **net decrease in stock-based compensation expense** of **$4.0 million** complemented these factors, culminating in the overall cash flow increase.  **[0001493152-24-044794_form10-q.htm:42]** **[0001493152-24-044505_ex99-1.htm:7]** 

What drove the significant jump in Operating Cash Flow in Q3 2024?

f918319dcbab51fb76004907bee39ef607961382656c1b70ae03050df1e274e9

Operating income was so low in Q4 2023 primarily because the company recorded a **$42 million goodwill impairment charge**, which significantly increased its operating expenses. In addition, a **decline in revenue to $28.4 million** (from $32.5 million year-over-year) further pressured margins, and **$675,000 in restructuring costs** added to the losses. Although cost reduction measures were implemented, their full benefits were not expected until 2024, leaving the operating results heavily impacted this quarter.  **[0001493152-24-010726_ex99-1.htm:6]** **[CCLD_3378706_4]** **[0001493152-24-010726_ex99-1.htm:0]** 

Why was Operating Income so low in Q4 2023?

The steep decline in **Net Income in Q4 2023** was mainly driven by several factors: a **$42 million goodwill impairment charge** that significantly impacted overall earnings, a **revenue decline of 13%** (from **$32.5 million** in Q4 2022 to **$28.4 million** in Q4 2023), a substantial increase in **operating expenses** (rising from **$31.6 million** in Q4 2022 to **$72.0 million** in Q4 2023), and **preferred stock dividends** of **$3.9 million** that further reduced the net income.  **[CCLD_3378706_4]** **[0001493152-24-010726_ex99-1.htm:0]** **[0001493152-24-010726_ex99-1.htm:6]** **[0001493152-24-010726_ex99-1.htm:1]** 

What led to the steep decline in Net Income in Q4 2023?

FY 2023 turned to a significant net loss due to several key factors. First, there was a **16% decline** in net revenue—from **$138.8 million** in FY 2022 to **$117.1 million** in FY 2023—driven by a reduction in project-based professional services revenue and the loss of revenue from two major clients.  **[0001493152-24-010726_ex99-1.htm:0]** **[0001493152-24-010800_form10-k.htm:74]**  Additionally, the company incurred **$42.0 million** in goodwill impairment charges in FY 2023, a cost that was not present in FY 2022.  **[0001493152-24-010726_ex99-1.htm:7]** **[0001493152-24-010800_form10-k.htm:67]** **[0001493152-24-010800_form10-k.htm:110]**  This, combined with a **24% increase** in operating expenses (rising from **$132.2 million** to **$164.2 million**), and a substantial hike in interest and other expenses contributed further to the net loss.  **[0001493152-24-010800_form10-k.htm:110]** **[0001493152-24-010800_form10-k.htm:74]** **[0001493152-24-010800_form10-k.htm:76]** 

Why did FY 2023 turn to a significant net loss compared to FY 2022?

CareCloud’s turnaround in Q2 2024 was driven by a notable reduction in operating expenses and strategic cost management. Despite a **$1.3 million (4%) decline** in net revenue, the company reduced total operating expenses by **$4.8 million (16%)**, which outweighed the revenue headwind. This expense reduction across areas such as direct operating costs, selling and marketing, general and administrative, and research and development expenses contributed significantly to shifting from an operating loss of **$1.3 million** in Q2 2023 to a positive operating income in Q2 2024.  **[0001493152-24-031462_ex99-1.htm:0]** **[0001493152-24-031462_ex99-1.htm:5]** **[0001493152-24-031637_form10-q.htm:38]** 

What factors contributed to the turnaround in Operating Income for Q2 2024?

The marked improvement in **Operating Income** in Q3 2024 is primarily due to a **reduction in operating expenses**—with expenses dropping from **$31,250 thousand** in Q3 2023 to **$25,281 thousand** in Q3 2024—and an improvement in **profitability**, as reflected by a swing from a GAAP net loss of **$2,749 thousand** in Q3 2023 to a net income of **$3,122 thousand** in Q3 2024. Additionally, the significant growth in **adjusted EBITDA** (an increase of **111%**, from **$3,245 thousand** to **$6,840 thousand**) indicates stronger operational efficiency, which further supported the improvement despite a slight revenue decline. This combination of cost reduction and improved profitability metrics is the key driver behind the sharp increase in operating income for Q3 2024.  **[0001493152-24-044794_form10-q.htm:5]** **[0001493152-24-044794_form10-q.htm:33]** 

How did Operating Income improve so markedly in Q3 2024?

bf5d1f002dd194dfc4ad80959a8af7e5c81b6e00c35e0964d254965400f49775

The **cash balance declined to 6,406 (USD, thousands) in Q3 2023** because a combination of factors resulted in a **net cash decrease of 1,260 (USD, thousands)**. **Operating activities** contributed negatively owing to a drop in net income and changes in working capital, including accounts receivable and accounts payable. Further, **investing activities** used cash primarily for capital expenditures and capitalized software development costs, while **financing activities** also consumed cash through repayments of borrowings and preferred stock dividends. Although the effect of exchange rate changes added a small positive amount (253), the overall impact was a significant cash drop.  **[0001493152-23-039155_form10-q.htm:39]** 

Why did Cash drop to 6,406 in Q3 2023?

The decline in **total assets** to **125,921 thousand** in Q3 2023 primarily resulted from a **reduction in cash**, a decrease in **accounts receivable**, significant **amortization of intangible assets**, and a reduction in **prepaid expenses and other current assets**. Specifically, cash fell from **12,299 thousand** to **6,406 thousand**, accounts receivable decreased from **14,773 thousand** to **12,310 thousand**, and there was a notable amortization impact on intangible assets, along with a drop in prepaid expenses and other current assets.  **[0001493152-23-039155_form10-q.htm:4]** **[0001493152-23-039076_ex99-1.htm:6]** 

Why did Total Assets fall to 125,921 in Q3 2023?

The documents do not provide a specific reason for the increase. However, they note that the company’s revolving line of credit with Silicon Valley Bank was increased to **$25 million** in February 2023 and had an **interest rate adjustment** in August 2023, which may have facilitated the increase in borrowings from **$8 million** as of FY 2022 to **$12 million** in Q3 2023.  **[0001493152-23-039155_form10-q.htm:4]** **[0001493152-23-039155_form10-q.htm:11]** **[0001493152-23-039076_ex99-1.htm:6]** 

Why were borrowings increased to 12,000 in Q3 2023?

The documents note that the **current portion of notes payable** increased from **$319 (December 31, 2022)** to **$490 (September 30, 2023)**. However, they do not provide specific details about what caused the surge. It is suggested that the increase is **likely related to the company's financing activities, such as repayments or reclassifications of debt**, but there is no explicit explanation provided in the available information.  **[0001493152-23-039155_form10-q.htm:4]** **[0001493152-23-039076_ex99-1.htm:6]** 

CareCloud Inc (CCLD)

Financials