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NantHealth, Inc. (NHIQ)·Q4 2021 Earnings Summary

Executive Summary

  • Q4 2021 revenue was $16.0M with gross margin of 57%, up sequentially from Q3 revenue of $14.4M and gross margin of 52%, though down year-over-year from Q4 2020 revenue of $18.6M and gross margin of 61% .
  • GAAP diluted EPS (continuing ops) was -$0.14 vs. -$0.09 in Q3 and -$0.18 in Q4 2020; non-GAAP EPS was -$0.10, flat vs. Q3 .
  • Operations advanced meaningfully: Eviti Connect for Autoimmune went live with Maryland Physicians Care, OpenNMS launched the Minion appliance and Horizon 29 enhancements, and NaviNet AllPayer Advantage delivered 17% YoY revenue growth .
  • Cash and cash equivalents ended at $29.1M, down from $45.5M at Q3 and $52.0M at Q2; management highlighted an “upswing” into year-end and a major refinancing earlier in 2021 .
  • Near-term catalysts include broadened Eviti deployment beyond oncology, OpenNMS platform momentum, and payer integrations (InterQual, PriorAuthNow), supporting potential top-line growth in 2022 per management commentary .

What Went Well and What Went Wrong

What Went Well

  • Sequential revenue recovery: “As expected, our 2021 fourth quarter revenues increased from the third quarter, returning to the average quarterly run rate for the year,” signaling stabilization exiting 2021 .
  • Product expansion and customer wins: Eviti Connect for Autoimmune went live (MPC), oncology services expanded via a key channel partner, and NaviNet integrations (InterQual Connect, PriorAuthNow) enhanced prior auth automation .
  • OpenNMS execution: Minion virtual appliance launched; Horizon 29 improved streaming analytics; rapid response to Log4j vulnerability, demonstrating operational agility and security focus .

What Went Wrong

  • Year-over-year compression: Revenue fell to $16.0M from $18.6M and gross margin to 57% from 61%; SG&A rose to $14.8M from $11.7M, and R&D increased to $5.2M from $4.8M .
  • Profitability headwinds: GAAP net loss from continuing operations was -$16.7M; non-GAAP net loss was -$11.8M, elevated vs. Q3 non-GAAP net loss of -$11.5M and Q4 2020 non-GAAP net loss of -$6.2M .
  • Cash drawdown: Cash declined to $29.1M at year-end from $45.5M at Q3 and $52.0M at Q2, underscoring funding discipline needs amid growth investments .

Financial Results

MetricQ4 2020Q2 2021Q3 2021Q4 2021
Revenue ($USD Millions)$18.642 $16.090 $14.359 $16.030
Gross Profit ($USD Millions)$11.449 $9.081 $7.530 $9.104
Gross Margin %61% 56% 52% 57%
SG&A ($USD Millions)$11.670 $11.837 $12.969 $14.784
R&D ($USD Millions)$4.828 $4.849 $4.648 $5.197
Loss from Operations ($USD Millions)$(6.763) $(8.590) $(11.072) $(11.864)
Net Loss (Continuing Ops, $USD Millions)$(20.218) $(15.450) $(10.908) $(16.705)
Diluted EPS - Continuing Ops ($USD)$(0.18) $(0.13) $(0.09) $(0.14)
Non-GAAP Net Loss (Continuing Ops, $USD Millions)$(6.201) $(8.848) $(11.451) $(11.837)
Non-GAAP EPS - Continuing Ops ($USD)$(0.06) $(0.08) $(0.10) $(0.10)

Segment/Revenue Mix

Revenue ComponentQ4 2020Q2 2021Q3 2021Q4 2021
Software-as-a-Service Related ($USD Millions)$18.201 $15.504 $13.879 $15.262
Maintenance ($USD Millions)$0.378 $0.413 $0.406 $0.515
Professional Services ($USD Millions)$0.024 $0.173 $0.057 $0.250
Other ($USD Millions)$0.039 $0.064 $0.017 $0.003
Total Net Revenue ($USD Millions)$18.642 $16.090 $14.359 $16.030

KPIs

KPIQ4 2020Q2 2021Q3 2021Q4 2021
Cash & Cash Equivalents ($USD Millions)$22.787 $51.993 $45.513 $29.084
Weighted Avg Shares (Basic/Diluted)111,238,540 114,512,542 115,243,671 115,461,629
Gross Margin %61% 56% 52% 57%

Non-GAAP Adjustments (Q4 2021 examples)

  • Intangible amortization $2.234M; Bookings Commitment fair value change $1.190M; stock-based comp $1.346M; noncash interest on convertibles $0.054M .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ4 2021“Expect net revenue to return closer to our average run rate for this year” (directional) Actual reported $16.0M N/A (directional → actual)
Any Quantitative Guidance (Revenue, Margins, OpEx, EPS, Tax)FY 2022Not providedNot providedMaintained “no formal guidance” posture

Notably, the company did not issue explicit numerical guidance ranges for revenue, margins, OpEx, EPS, OI&E, tax rate, or dividends in the Q4 materials .

Earnings Call Themes & Trends

Note: We were unable to retrieve the Q4 2021 call transcript due to a document retrieval error; themes reflect management’s quarter materials.

TopicPrevious Mentions (Q2 2021)Previous Mentions (Q3 2021)Current Period (Q4 2021)Trend
Eviti Connect (Autoimmune/Oncology)Developed Eviti for autoimmune; new CMS library; pilot expected in H2’21 Signed; preparing to launch first autoimmune program; oncology expansion via channel partner Went live at MPC (autoimmune); oncology expansion via largest customer-owned insurer Accelerating
NaviNet (Payer Engagement)AllPayer 8th consecutive growth quarter; pricing/feature upgrades; Medicare API Multi-year TPA agreement; collaborations (Care Continuity, HIPAA One) Partner Portal launch; InterQual Connect integration; PriorAuthNow API; 17% YoY AllPayer Advantage revenue growth Expanding
OpenNMS (Network Monitoring)Meridian 2021 and Horizon 28 releases; appliances in beta Zero-touch appliance preparation; renewals and expansion Minion appliance release; Horizon 29 analytics; proactive Log4j mitigation Strengthening
Financing/CashCompleted $137.5M financing; cash $52M Cash $45.5M Cash $29.1M at year-end Mixed (cash down into Q4)

Management Commentary

  • “As expected, our 2021 fourth quarter revenues increased from the third quarter, returning to the average quarterly run rate for the year.” — Ron Louks, COO .
  • “We believe we have built a strong foundation that positioned NantHealth for meaningful top line growth in the coming year… based on the progress of our… Eviti Connect [autoimmune] and… OpenNMS platform… [and] growing interest in our NaviNet suite.” — Ron Louks, COO .
  • Operational highlights spanned payer, provider, and network monitoring ecosystems (Eviti autoimmune go-live; OpenNMS Minion appliance; NaviNet partner portal and integrations), underscoring cross-portfolio momentum .

Q&A Highlights

We were unable to access the Q4 2021 earnings call transcript due to a retrieval error, so Q&A themes and any guidance clarifications from live discussion are not available in this recap.

Estimates Context

  • Wall Street consensus (S&P Global Capital IQ) for NHIQ Q4 2021 revenue/EPS was unavailable in our environment due to a missing mapping for the ticker; therefore, we cannot benchmark reported results versus SPGI consensus. If needed, we can attempt retrieval once the CIQ mapping is updated.

Key Takeaways for Investors

  • Sequential revenue and margin improvement into Q4 (revenue $16.0M; GM 57%) suggests stabilization following Q3 timing-related contract transitions; year-over-year remained lower vs. Q4 2020 ($18.6M; GM 61%) .
  • Cost pressure evident: SG&A increased to $14.8M and R&D to $5.2M in Q4, reflecting continued investment in product expansion and capabilities .
  • Non-GAAP loss held at -$0.10 EPS, with adjustments driven by intangible amortization, bookings commitment fair value changes, and stock-based comp; investors should focus on loss normalization as product deployments scale .
  • Cash declined to $29.1M at year-end from $45.5M (Q3) and $52.0M (Q2); monitoring liquidity and capital needs is critical as the company invests in growth .
  • Growth vectors are tangible: Eviti autoimmune launch, oncology channel expansion, NaviNet integrations (InterQual, PriorAuthNow), and OpenNMS Minion/Horizon advancements should support 2022 revenue trajectory per management .
  • No formal numerical guidance was provided; absence of SPGI consensus prevents beat/miss analysis, but directional commentary and sequential execution frame an early-year setup to watch .
  • Near-term trading lens: watch contract ramps and payer adoption rates in Eviti/NaviNet and enterprise uptake of OpenNMS Minion; margin progression depends on mix and operating cost control .