Healthcare Triangle, Inc. Reports Fourth Quarter and Full Year 2023 Financial Results

PLEASANTON, Calif., March 15, 2024 (GLOBE NEWSWIRE) -- Healthcare Triangle, Inc. (Nasdaq: HCTI) (“Healthcare Triangle,” “HCTI” or the “Company”), a leader in digital transformation solutions including managed services, cloud enablement, cybersecurity, data analytics and AI data processing for the healthcare and life sciences industries, today announced financial results for its fourth quarter and full year ended December 31, 2023.

Fourth Quarter 2023 Financial Results

• Revenue: Total revenue was $7.1 million, representing a decrease of 37% compared to the fourth quarter of 2022. Revenue from the Software Services and Managed Services segments decreased by 40% and 37%, respectively, partially offset by a 22% increase in Platform Services.
• GAAP loss from operations: GAAP loss from operations was $5.3 million, compared to $4.9 million in the fourth quarter of 2022. The increased loss was primarily due to impairment of intangibles and goodwill. The one-time impact of the impairment was $4.2 million. The normalized GAAP loss from operations was $0.7 million.
• GAAP net loss per share: GAAP basic and diluted net loss per share was $1.26 based on 4.2 million weighted-average shares outstanding, compared to $1.33 based on 3.6 million weighted-average shares outstanding in the year-ago quarter.
  

Full Year 2023 Financial Results

• Revenue: Total revenue was $33.2 million, representing a decrease of 28% compared to 2022. Revenue from Software Services, Managed Services and Support and Platform Services revenue has decreased in the current year.
• GAAP loss from operations: GAAP loss from operations was $12.3 million, compared to $9.6 million in 2022. The increased loss was primarily due to impairment of intangibles and goodwill. The onetime impact of the impairment was $4.2 million. The normalized GAAP loss from operations was $8.1 million.
• GAAP net loss per share: GAAP basic and diluted net loss per share was $2.92 based on 4.2 million weighted-average shares outstanding, compared to $2.63 based on 3.6 million weighted-average shares outstanding in 2022.
• Cash and cash equivalents totaled $1.2 million as of December 31, 2023.

Business Highlights:

• Secured a new $3 million contract to provide HITRUST-certified Cloud DevOps Managed Services for a leading life sciences customer, reinforcing the Company’s position as a top player in the Cloud DevOps Managed Services business.
• Secured a multi-year program expansion contract with a Fortune 500 biopharmaceutical company, securing our position as one of the providers for Cloud DevOps, data engineering and data platform management solutions.
• Announced a multi-year subscription agreement with a long-standing customer for readabl.ai, a medical document automation solution aimed at streamlining patient care and reducing operating costs.
• Launched a new ransomware protection and prevention initiative drawing initial interest and support from numerous health system clients. The Company is servicing multiple contract agreements for cloud backup and disaster recovery, allowing hospitals and health systems to move disaster recovery to the Amazon Web Services (AWS) cloud to secure resources and scale on demand.
• Hosted sessions on digital transformation and ransomware preparedness for healthcare systems at CHIME23 fall forum.
• Hosted roundtable discussion on generative AI and data modernization strategies for healthcare and hosted webinar addressing ransomware preparedness for healthcare.
• Participated in 2023 MUSE Inspire conference as exhibitor and host of best practice sessions and at HIMSS23 conference as a guest speaker for Amazon Web Services.
  

Thyagarajan Ramachandran, Chief Financial Officer of Healthcare Triangle, stated, “Despite experiencing a decline in revenue throughout the year, we achieved significant milestones by launching some key initiatives in ransomware protection and preparedness for our clients. During the year we secured notable multi-year contracts. We believe the steps we have taken will make us a top provider of cybersecurity solutions as well as a leading provider in AI-driven healthcare process and workflow in the future. Because of the work we completed during full year 2023, we have already seen the fruits of our labor lead to many new initiatives in 2024. The Company is in multiple discussions with healthcare companies looking at our AI solutions to bring their existing systems up to date and creating new standards while providing potential cost savings and productivity gains. The healthcare landscape is continually evolving, generating a significant amount of data on a daily basis, driven by patient care, payment systems, regulatory compliance and recordkeeping. HCTI continues to be a leader in innovation as we make improvements to our HITRUST-certified Cloud DevOps managed services and AI adoption. AI in the healthcare market is projected to reach $53 billion by 2024, according to Grand View Research, and this presents many opportunities for documentation AI and generative AI for us and our solutions. A key strategy for both customer acquisition as well as marketing and brand visibility has been educating potential customers and the industry at large by hosting webinars and participating in conferences and guest speaking. We believe we are positioned ideally and have made major strides in 2023.”

About Healthcare Triangle:

Healthcare Triangle, Inc., headquartered in Pleasanton, California, stands at the forefront of healthcare technology, specializing in AI and digital transformation. With a commitment to innovation, collaboration, and excellence, Healthcare Triangle is dedicated to reshaping healthcare delivery for the better. We collaborate with healthcare entities, including hospitals, health systems, payers, and pharma/life sciences organizations, leveraging breakthrough technology and extensive industry expertise to enhance health outcomes through optimized data utilization and cutting-edge information technologies. Holding HITRUST Certification for Cloud and Data Platform (CaDP) – featuring CloudEz^™, DataEz^™, and readabl.ai – our commitment to the highest standards in data protection and information security is unwavering. Healthcare Triangle serves as a beacon for the adoption of new technologies, data enlightenment, business agility, and swift response to evolving business needs and competitive challenges. Thriving in the highly regulated healthcare and life sciences sectors, we excel in digital transformation encompassing the cloud, security and compliance, identity management, data lifecycle management, healthcare interoperability, and clinical and business performance optimization. For more information, visit www.healthcaretriangle.com.

Forward-Looking Statements and Safe Harbor Notice

All statements other than statements of historical facts included in this press release are “forward-looking statements” (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include our expectations and those statements that use forward-looking words such as “projected,” “expect,” “possibility” and “anticipate.” The achievement or success of the matters covered by such forward-looking statements involve significant risks, uncertainties and assumptions. Actual results could differ materially from current projections or implied results. Investors should read the risk factors set forth in the Company's Annual Report on Form 10-K filed with the SEC on March 28, 2023, subsequent filings and future reports filed with the SEC. All the Company's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.

The Company cautions that statements and assumptions made in this news release constitute forward-looking statements and make no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time the statements are made. The information set forth herein speaks only as of the date hereof. The Company and its management undertake no obligation to revise these statements following the date of this news release.

Contacts

Investors:
1-800-617-9550
ir@healthcaretriangle.com