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NantHealth, Inc. (NHIQ)·Q1 2022 Earnings Summary

Executive Summary

  • Q1 2022 revenue rose sequentially to $16.37M vs $16.03M in Q4 2021, while gross margin held at 56% (vs 57% in Q4) and GAAP EPS remained at -$0.14; non-GAAP EPS was -$0.11 .
  • Continued product execution: Eviti Connect expansion (autoimmune and radiation oncology delegation), NaviNet HITRUST certification and a MedTech Breakthrough award, and OpenNMS Meridian 2022 release .
  • Operating expenses increased as the company invested in cloud and analytics capabilities; SG&A was $14.98M and R&D was $5.72M, contributing to a loss from operations of -$12.49M .
  • Wall Street consensus estimates via S&P Global were unavailable for NHIQ this quarter; therefore, a beat/miss assessment vs Street cannot be made (estimates unavailable via S&P Global).

What Went Well and What Went Wrong

What Went Well

  • Product momentum: “We are pleased to start the year with positive momentum, with our 2022 first quarter revenue increasing over the previous quarter,” said COO Ron Louks, citing investments in cloud/data analytics and new applications on the cloud platform .
  • Commercial wins and certifications: Multi‑year Eviti renewal with expanded scope and full delegation in radiation oncology; NaviNet received HITRUST certification and won the MedTech Breakthrough Healthcare Insurance Innovation Award .
  • OpenNMS advancement: Meridian 2022 released with enhanced security and analytics; new professional services wins and expanded hardware appliance program delivery .

What Went Wrong

  • Cash drawdown and higher OpEx: Cash fell to $16.08M at quarter‑end (from $29.08M in Q4), while SG&A rose to $14.98M and R&D to $5.72M, reflecting investment intensity .
  • Profitability pressure: Loss from operations widened to -$12.49M (vs -$11.86M in Q4), and non‑GAAP net loss was -$12.24M (vs -$11.84M in Q4), indicating limited operating leverage near‑term .
  • Street context unavailable: S&P Global consensus estimates could not be retrieved for NHIQ, constraining external benchmarking of results and guidance (estimates unavailable via S&P Global).

Financial Results

Quarterly Trend (prior two quarters vs current)

MetricQ3 2021Q4 2021Q1 2022
Total net revenue ($USD Millions)$14.36 $16.03 $16.37
Gross profit ($USD Millions)$7.53 $9.10 $9.19
Gross margin (%)52% 57% 56%
GAAP EPS ($)-$0.09 -$0.14 -$0.14
Non-GAAP EPS ($)-$0.10 -$0.10 -$0.11

Q1 Year-over-Year Comparison

MetricQ1 2021Q1 2022
Total net revenue ($USD Millions)$16.17 $16.37
Gross profit ($USD Millions)$9.13 $9.19
Gross margin (%)56% 56%
GAAP EPS ($)-$0.14 -$0.14
Non-GAAP EPS ($)-$0.09 -$0.11

Revenue Breakdown by Quarter

Revenue Category ($USD Millions)Q3 2021Q4 2021Q1 2022
SaaS-related$13.88 $15.26 $15.77
Maintenance$0.41 $0.52 $0.46
Professional services$0.06 $0.25 $0.14
Total net revenue$14.36 $16.03 $16.37

Operating KPIs and Cash

Metric ($USD Millions unless noted)Q3 2021Q4 2021Q1 2022
SG&A expense$12.97 $14.78 $14.98
R&D expense$4.65 $5.20 $5.72
Loss from operations-$11.07 -$11.86 -$12.49
Cash & cash equivalents (period-end)$45.51 $29.08 $16.08

Non-GAAP Adjustments (Q1 2022 vs Q1 2021)

Adjustment ($USD Thousands)Q1 2021Q1 2022
Stock-based compensation$883 $1,390
Change in fair value of Bookings Commitment$2,463 $94
Noncash interest (convertible notes)$323 $37
Intangible amortization$2,212 $2,232
Tax benefit from noncash items-$43 -$40
Total adjustments$5,834 $3,713
Non‑GAAP net loss-$9,578 -$12,237
Non‑GAAP EPS ($)-$0.09 -$0.11

Guidance Changes

No formal numeric guidance was disclosed in the Q1 2022 8‑K press release; management commentary focused on product execution and sequential revenue improvement without providing specific ranges .

Earnings Call Themes & Trends

(Note: Q1 2022 earnings call transcript could not be retrieved due to a database inconsistency; themes for Q1 draw from press release disclosures.)

TopicPrevious Mentions (Q3 2021)Previous Mentions (Q4 2021)Current Period (Q1 2022)Trend
Eviti Connect expansion (autoimmune, oncology delegation)First autoimmune program signed; licensure in six states Went live with autoimmune (MPC); expanded oncology via channel partner Expanded full delegation to radiation oncology; multi‑year renewal expanding Eviti scope Improving
NaviNet certifications/awardsPartnerships (InterQual, APIs) and new agreements Partner Portal launched; alliances with Change Healthcare & PriorAuthNow HITRUST certification; MedTech Breakthrough award; authorization workflow enhancements Improving
OpenNMS product roadmapRenewals; Horizon 29 enhancements; appliances prep Minion Appliance launch; strong opportunity pipeline Meridian 2022 release; new services wins; global 1U appliance delivery completed Improving
Data/analytics (Quadris)Enhanced reporting in Eviti 8.6 Continued investments; building capabilities New cloud applications launched; expanding cloud/data analytics capabilities Improving
Regulatory/legalUM licensure across states (delegation readiness) Continued certifications enabling delegation HITRUST certification achieved Improving
R&D executionOngoing platform investments R&D increased YoY R&D increased to $5.72M to fund product development Continuing

Management Commentary

  • “We are pleased to start the year with positive momentum, with our 2022 first quarter revenue increasing over the previous quarter,” said Ron Louks, COO .
  • “To help drive further growth, we continue to invest in the development of our products and services, including the expansion of our cloud and data analytics capabilities… Eviti Connect expansion continued with Autoimmune Diseases… NantHealth Partner Portal… continued interest in our data enrichment services… pilot programs for The OpenNMS Group Inc.’s cloud services.”

Q&A Highlights

The Q1 2022 earnings call transcript for NHIQ could not be accessed due to a database inconsistency; Q&A highlights are not available from primary source documents in this analysis window.

Estimates Context

Wall Street consensus estimates via S&P Global were unavailable for NHIQ for Q1 2022, so a beat/miss vs Street cannot be assessed. Values would have been retrieved from S&P Global if available.

Key Takeaways for Investors

  • Sequential top-line improvement with resilient gross margin (56%) underscores product traction across Eviti, NaviNet, and OpenNMS .
  • Elevated OpEx (SG&A and R&D) reflects ongoing investment in cloud/data platforms; near-term profitability remains pressured (loss from operations -$12.49M) .
  • Commercial momentum and certifications/awards (HITRUST, MedTech Breakthrough) support credibility and potential pipeline conversion in payer engagement and decision support .
  • Cash declined to $16.08M; liquidity and capital planning warrant monitoring given continued operating losses .
  • Non‑GAAP loss widened YoY as stock‑based comp and amortization continue; watch for operating leverage from growth initiatives to narrow adjusted losses over time .
  • Lack of formal guidance and unavailable Street estimates limit external benchmarking; focus on booking trends, delegation wins, and OpenNMS monetization as near‑term catalysts .
  • Short‑term: sentiment likely sensitive to contract renewals/expansions and cash trajectory; medium‑term thesis hinges on scaling cloud/data analytics, delegated authorization services, and OpenNMS subscriptions/pro services execution .