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TruBridge, Inc. (CPSI)·Q1 2024 Earnings Summary

Executive Summary

  • Q1 2024 revenue was $83.2M and non-GAAP EPS was $0.19; GAAP diluted EPS was $(0.17) and Adjusted EBITDA was $9.5M (11.4% margin). Bookings were $23.6M, with RCM at $53.0M (63.7% of revenue) and EHR at $28.0M .
  • Management revised FY 2024 revenue guidance to $330–$340M (from $340–$350M) while maintaining Adjusted EBITDA at $45–$50M; Q2 revenue guidance is $81–$83M and Adjusted EBITDA $8–$10M .
  • CEO highlighted “continued momentum in bookings,” larger-deal pipeline, and expense management enabling profitability resilience; CFO discussed transformation efforts underpinning improved forecasting and capital allocation .
  • Against public consensus reported by Seeking Alpha, Q1 non-GAAP EPS of $0.19 beat by $0.04 and revenue of ~$83.25M beat by ~$0.22M, suggesting modest outperformance; note S&P Global consensus was unavailable via our tool .

What Went Well and What Went Wrong

What Went Well

  • Bookings strength: $23.6M total bookings, with wins across RCM and EHR and growing larger-deal pipeline; RCM revenue up YoY to $53.0M .
  • Expense discipline: Management emphasized expense management and operational transformation enabling maintained Adjusted EBITDA guidance despite revenue-range revision .
  • Segment resilience: RCM represented 63.7% of total revenue; adjusted EBITDA by segment showed contribution across RCM ($6.4M) and EHR ($2.9M) .

Quotes:

  • “We were pleased with the continued momentum in bookings this quarter… wins in both our RCM and our EHR business… growth in our pipeline especially in the larger deals…” — CEO Chris Fowler .
  • “The work we have done on expense management… allows us to maintain our previous adjusted EBITDA outlook this year.” — CEO Chris Fowler .

What Went Wrong

  • Top-line pressure and mix: Total revenue declined YoY to $83.2M from $86.2M; EHR revenue fell to $28.0M from $35.2M, driving the YoY decline .
  • Profitability compression: Adjusted EBITDA fell to $9.5M from $14.6M YoY; non-GAAP EPS declined to $0.19 from $0.58 .
  • Guidance revision: FY 2024 revenue guidance lowered to $330–$340M due to variability in converting larger deals from bookings to revenue .

Financial Results

MetricQ3 2023Q4 2023Q1 2024
Total Revenue ($M)$82.7 $85.9 $83.2
GAAP Diluted EPS ($)$(0.24) $(2.92) $(0.17)
Non-GAAP Diluted EPS ($)$0.45 $0.36 $0.19
Adjusted EBITDA ($M)$9.7 $12.0 $9.5
Adjusted EBITDA Margin (%)Not disclosed Not disclosed 11.4%
Operating Income (Loss) ($M)$(5.2) Not disclosed $(1.5)
Net Income (Loss) ($M)$(3.6) Not disclosed $(2.5)

Segment revenue breakdown:

Segment Revenue ($M)Q3 2023Q4 2023Q1 2024
RCM / Financial Health$46.6 $51.0 $53.0
EHR / Patient Care$34.5 $34.9 $28.0
Patient Engagement$1.6 Not disclosed separately in Q4 PR $2.2

Segment Adjusted EBITDA:

Segment Adjusted EBITDA ($M)Q3 2023Q4 2023Q1 2024
RCM$4.6 Not disclosed $6.4
EHR$5.7 Not disclosed $2.9
Patient Engagement$(0.6) Not disclosed $0.1

KPIs:

KPIQ3 2023Q4 2023Q1 2024
Total Bookings ($M)$16.2 $26.0 $23.6
RCM Bookings ($M)$9.1 Not disclosed $14.4
EHR Bookings ($M)$6.5 Not disclosed $8.6

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($M)Q2 2024Not previously provided in Q1 PR $81–$83 New
Adjusted EBITDA ($M)Q2 2024Not previously provided in Q1 PR $8–$10 New
Total Revenue ($M)FY 2024$340–$350 (Q4 2023 PR) $330–$340 Lowered
Adjusted EBITDA ($M)FY 2024$45–$50 (Q4 2023 PR) $45–$50 Maintained

Other relevant Q1 2024 press releases:

  • “TruBridge to Webcast its First Quarter 2024 Conference Call” (call logistics) .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2023)Previous Mentions (Q4 2023)Current Period (Q1 2024)Trend
Transformation/expense disciplineFocus on efficiency; CFO change to Vinay Bassi; pipeline visibility Rebrand to TruBridge; improved top-line momentum Expense management enabling EBITDA guidance maintenance Improving operational rigor
RCM pipeline and larger dealsChallenging environment but opportunity; Viewgol acquisition to expand resources Continued RCM growth; Financial Health focus Larger deals add timing variability for conversion; bookings strong Moving to larger, more complex deals
EHR performance/retentionEHR retention strong; bookings softer YoY Patient Care steady; rebrand and consolidation EHR revenue down YoY; non-recurring EHR revenue lower Mixed; recurring stable, non-recurring down
Portfolio actions (AHT divestiture)N/A in Q3 PRAHT sale closed in Jan 2024 referenced across filings Gain on sale of AHT included in non-GAAP reconciliation Portfolio streamlined
Guidance stance2023 guide cut (Q3) 2024 initial guide set FY 2024 revenue guide lowered; EBITDA maintained Conservative top-line outlook, profitability stable

Management Commentary

  • “The refinement of our financial operations gives us enhanced capabilities in regard to accurate forecasting, an improved capital allocation strategy and identification of cost savings opportunities and provides us a more stable foundation from which to grow.” — Chris Fowler, CEO .
  • “Our success in capturing these larger deals in our RCM business does bring an added layer of timing complexity… we feel it’s prudent to slightly revise our full-year revenue range… [but] expense management… allows us to maintain our previous adjusted EBITDA outlook.” — Chris Fowler, CEO .

Q&A Highlights

  • Analysts focused on bookings-to-revenue timing for larger RCM deals, implications for quarterly revenue cadence, and confidence behind maintaining EBITDA guidance despite a lower revenue range; management emphasized operational improvements, cost control, and pipeline conversion expectations .
  • Clarifications around non-GAAP adjustments included severance and transformation costs, amortization, and the AHT divestiture impact in reconciliations .

Estimates Context

  • S&P Global consensus estimates were unavailable via our tool for Q1 2024. However, public reporting indicated EPS of $0.19 beat consensus by ~$0.04 and revenue of ~$83.25M beat by ~$0.22M, implying modest outperformance; investors should treat these as directional until SPGI data is obtained .

Key Takeaways for Investors

  • Revenue mix shift toward RCM (63.7% of Q1 revenue) supports medium-term margin resilience; EHR non-recurring revenue softness weighed on YoY growth .
  • Strong bookings ($23.6M) and larger-deal pipeline are positives, but conversion timing creates quarterly revenue variability—expect more volatile top-line prints near term .
  • FY 2024 revenue guide cut to $330–$340M while EBITDA held at $45–$50M reflects disciplined expense control; monitor execution on offshoring and transformation to protect margins .
  • Non-GAAP EPS compression (to $0.19 from $0.58 YoY) and EBITDA down YoY underscore the need for EHR stabilization and timely RCM ramp .
  • Near-term trading: modest “beat” vs publicly reported consensus, but guidance reduction could cap upside; watch Q2 delivery ($81–$83M revenue, $8–$10M EBITDA) as the next catalyst .
  • Medium-term thesis: portfolio focus (AHT divestiture), transformation, and larger RCM deals can expand EBITDA if conversion improves; EHR non-recurring recovery would de-risk revenue trajectory .
  • Continue to track bookings composition and segment EBITDA trends; improvements in Patient Care and sustained RCM momentum are key drivers for re-rating .