FALSE000163642200016364222025-02-262025-02-26

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________________________________
FORM 8-K
__________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 26, 2025
__________________________________________________________
HEALTH CATALYST, INC.
(Exact name of registrant as specified in its charter)
________________________________________________________________
Delaware001-3899345-3337483
(State or other jurisdiction of
incorporation)
(Commission File Number)(IRS Employer
Identification No.)
10897 South River Front Parkway #300
South Jordan, UT 84095
(Address of principal executive offices, including zip code)

(801) 708-6800
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)
______________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: 
☐     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 
☐     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 
☐     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 
☐     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
______________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of exchange on which registered
Common Stock, par value $0.001 per shareHCATThe Nasdaq Global Select Market
________________________________________________________
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 ((§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐







Item 2.02. Results of Operations and Financial Condition.

On February 26, 2025, Health Catalyst, Inc. (the Company) issued a press release relating to its financial results for the quarter and year ended December 31, 2024. A copy of the press release and the summary of the Company's 2024 Financial Highlights, 2025 Guidance & Key Themes are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and each are incorporated herein by reference.

The foregoing information (including the exhibits set forth in Item 9.01 hereto) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the Securities Act), except as expressly set forth by specific reference in such filing.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On February 20, 2025, Anita Pramoda informed the Board of her resignation from the Board, and on February 20, 2025, the Board accepted her resignation, including her resignation from the compensation committee and transactions committee of the Board, effective March 1, 2025. Additionally, in recognition of her years of extraordinary service, the Board approved accelerating the vesting of 20,807 RSUs held by Ms. Pramoda that would have otherwise vested in June 2025. Ms. Pramoda’s resignation is not the result of any disagreement or conflict with the Company.

Forward-Looking Statements

This Current Report on Form 8-K, including the press release, the summary of the Company's 2024 Financial Highlights, 2025 Guidance & Key Themes, and the summary of the Company’s Updated Growth and Financial Targets furnished herewith as Exhibit 99.1, Exhibit 99.2 and Exhibit 99.3, respectively, contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements concerning or relating to the Company’s expectations regarding its operating performance, including its Platform Client bookings and Dollar-based Retention Rate (Tech + TEMS), and its financial performance, including revenue growth, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA for the technology business unit, and the 'Rule of 30' profile for the Company's technology business unit. Any forward-looking statements contained in this Current Report on Form 8-K, including the press release and the Company's 2024 Financial Highlights, 2025 Guidance & Key Themes furnished herewith, are based upon the Company’s historical performance and its current plans, estimates, and expectations, and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent the Company’s expectations as of the date of this Current Report on Form 8-K, and involve risks, uncertainties, and assumptions. The actual results may differ materially from those anticipated in the forward-looking statements as a result of numerous factors, many of which are beyond the control of the Company, including changes to the Company’s financial performance, including expectations regarding its results of operations, unexpected or otherwise unplanned events, and the risks and uncertainties disclosed in the Company’s reports filed from time to time with the Securities and Exchange Commission, including its most recent Form 10-K and any subsequent filings on Forms 10-Q or 8-K, available at www.sec.gov. Except as required by law, the Company does not intend to update any forward-looking statement contained in this Current Report on Form 8-K to reflect events or circumstances arising after the date hereof.

Item 9.01. Financial Statements and Exhibits.


* Furnished herewith.



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
HEALTH CATALYST, INC.
Date: February 26, 2025
By:/s/ Jason Alger
Jason Alger
Chief Financial Officer



Exhibit 99.1
healthcatalystlogoa.jpg
Health Catalyst Reports Fourth Quarter and Year End 2024 Results
SALT LAKE CITY, UT, February 26, 2025 — Health Catalyst, Inc. ("Health Catalyst," Nasdaq: HCAT), a leading provider of data and analytics technology and services to healthcare organizations, today reported financial results for the quarter and year ended December 31, 2024.
“For the full year 2024, I am pleased to share that we achieved strong performance across our business, including total revenue of $307 million and Adjusted EBITDA of $26 million. Additionally, I am encouraged with our Technology segment, which had revenue of $195 million for full-year 2024 and $52 million for the fourth quarter of 2024, which represents 10% growth year-over-year. I am pleased with this progress and excited that we anticipate a continued reacceleration of topline growth for full year 2025, with our Tech segment growing faster than the total business. Likewise, I am pleased with our profitability progress and excited that we have raised our target for 2025 Adjusted EBITDA by $2 million, to approximately $41 million.” said Dan Burton, CEO of Health Catalyst.

"As part of our annual planning process, we’re grateful to share a few governance and leadership updates. First, we are thrilled to welcome Dr. Jill Hoggard Green to the Health Catalyst Board of Directors as of December 1, 2024. Jill is the former Chief Executive Officer of The Queens Health System and has been an extraordinary leader throughout her career. We are excited for Jill to be a member of our Board. Next, we wanted to take a moment to thank Anita Pramoda for her dedicated service as a member of our Board. After nearly a decade, she will complete her service on March 1, 2025. We are deeply grateful for her meaningful contributions. Finally, I’m excited to announce recent promotions to our leadership team. Dr. Daniel Samarov has been promoted to Chief AI Officer. In addition, Allie Coronis, Senior Vice President of Tech-Enabled Managed Services, and Dan Heinmiller, Senior Vice President of Implementation Services, have been appointed to our company-wide leadership team. We’re looking forward to the meaningful impact these leaders will have in their new roles."


Financial Highlights for the Three and Twelve Months Ended December 31, 2024
Key Financial Measures
Three Months Ended
December 31,		Year over Year ChangeTwelve Months Ended
December 31,		Year over Year Change
2024202320242023
GAAP Financial Measures:(in thousands, except percentages)(in thousands, except percentages)
Revenue$79,606 $75,084 6%$306,584 $295,938 4%
Gross profit$28,618 $23,902 20%$114,503 $104,002 10%
Gross margin36 %32 %37 %35 %
Net loss$(20,673)$(30,312)32%$(69,502)$(118,147)41%
Non-GAAP Financial Measures:(1)
Adjusted Gross Profit$37,121 $34,693 7%$149,533 $144,060 4%
Adjusted Gross Margin47 %46 %49 %49 %
Adjusted EBITDA$7,911 $1,352 485%$26,105 $11,021 137%
________________________
(1) These measures are not calculated in accordance with generally accepted accounting principles in the United States (GAAP). See the accompanying "Non-GAAP Financial Measures" section below for more information about these financial measures, including the limitations of such measures, and for a reconciliation of each measure to the most directly comparable measure calculated in accordance with GAAP.



Other Key Metrics
As of December 31,
202420232022
Platform Clients(1)
13010998
Year Ended December 31,
202420232022
Dollar-based Retention Rate (legacy)(2)
100 %100 %100 %
Dollar-based Retention Rate (Tech + TEMS)(3)
102 %
__________________
(1) We have updated the name and definition of this key metric to Platform Clients from DOS Subscription Clients to better reflect the deep, long-standing, multi-faceted relationships we strive to build with the entities we serve. Platform Clients have historically been defined as clients who directly or indirectly access our platform via a technology subscription contract. Direct access to our platform has included access to our DOS platform, Ignite platform, or Ninja Universe. Indirect access to our platform has included platform module components such as Ignite connectors, Healthcare.AI, Pop Analyzer, IDEA, and other platform components. Given the modularity of our Ignite platform, we anticipate Ignite infrastructure will be included in all of our technology Solutions in the near future and many of our Solutions already include Ignite components. Accordingly, beginning in 2025, Platform Clients will be defined as: (i) all Platform Clients as of December 31, 2024 under our historical definition (i.e., these clients will be included in our Platform Client count going forward until they cease to have an active subscription as of the end of the period), and (ii) going forward in 2025 and beyond, any technology client that signs contracts with at least $100,000 of incremental total annual recurring revenue (ARR) and non-recurring revenue in a given calendar year, inclusive of clients that come through acquisition if we first begin recognizing revenue for the client post-acquisition and that total ARR and non-recurring revenue exceeds $100,000 in that calendar year, so long as such client maintains an active subscription as of the end of the period. Once a client is designated as a Platform Client, it will continue to be a Platform Client unless it is no longer a client with an active subscription as of the end of the period. Please see our Annual Report on Form 10-K for the year ended December 31, 2024 expected to be filed with the SEC on or about February 26, 2025 for additional information.
(2) Dollar-based Retention Rate (legacy) is calculated as of a period end by starting with the sum of the technology and professional services ARR from our Platform Clients as of the date 12 months prior to such period end and then calculating the sum of the ARR from these same clients as of the current period end. Please see our Annual Report on Form 10-K for the year ended December 31, 2024 expected to be filed with the SEC on or about February 26, 2025 for additional information.
(3) Dollar-based Retention Rate (Tech + TEMS) is calculated as of a period end by starting with the sum of the technology ARR and Tech-Enabled Managed Services (TEMS) ARR from our Platform Clients as of the date 12 months prior to such period end (this calculation excludes professional services ARR and non-recurring revenue), calculating the sum of the ARR from these same clients as of the current period end (which includes any upsells and also reflects contraction or attrition over the trailing twelve months but excludes revenue from new Platform Clients added in the current period who were not clients at the beginning of such period; this current period ARR may include acquired ARR from clients that overlap with the Platform Clients in a given calendar year), and then dividing the current period ARR by the prior period ARR. Please see our Annual Report on Form 10-K for the year ended December 31, 2024 expected to be filed with the SEC on or about February 26, 2025 for additional information.


Financial Outlook

Health Catalyst provides forward-looking guidance on total revenue, a GAAP measure, and Adjusted EBITDA, a non-GAAP measure.
For the first quarter of 2025, we expect:
•Total revenue of approximately $79 million, and
•Adjusted EBITDA of approximately $4 million
For the full year of 2025, we expect:
•Total revenue of approximately $335 million,
•Technology revenue of approximately $220 million, and
•Adjusted EBITDA of approximately $41 million
We have not reconciled guidance for Adjusted EBITDA to net loss, the most directly comparable GAAP measure, and have not provided forward-looking guidance for net loss, because there are items that may impact net loss, including stock-based compensation, that are not within our control or cannot be reasonably forecasted.

Quarterly Conference Call Details
We will host a conference call to review the results today, Wednesday, February 26, 2025, at 5:00 p.m. E.T. The conference call can be accessed by dialing (800) 343-5172 for U.S. participants, or (203) 518-9856 for international participants, and referencing conference ID “HCATQ424.” A live audio webcast will be available online at https://ir.healthcatalyst.com/. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.



About Health Catalyst
Health Catalyst (Nasdaq: HCAT) is a leading provider of data and analytics technology and services that ignite smarter healthcare, lighting the path to measurable clinical, financial, and operational improvement. More than 1,000 organizations worldwide rely on Health Catalyst's offerings, including our cloud-based technology ecosystem Health Catalyst Ignite™, AI-enabled data and analytics solutions, and expert services to drive meaningful outcomes across hundreds of millions of patient records. Powered by high-value data, standardized measures and registries, and deep healthcare domain expertise, Ignite helps organizations transform complex information into actionable insights. Backed by a multi-decade mission and a proven track record of delivering billions of dollars in measurable results, Health Catalyst continues to serve as the catalyst for massive, measurable, data-informed healthcare improvement and innovation.

Available Information
Our investors and others should note that we announce material information to the public about our company, products and services, and other matters related to our company through a variety of means, including our website (https://www.healthcatalyst.com/), our investor relations website (https://ir.healthcatalyst.com/), press releases, SEC filings, public conference calls, and social media, including our and our CEO's social media accounts (including on LinkedIn), in order to achieve broad, non-exclusionary distribution of information to the public and to comply with our disclosure obligations under Regulation FD.

Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding our future growth and our financial outlook for Q1 and fiscal year 2025. Forward-looking statements are subject to risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance.

Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) changes in laws and regulations applicable to our business model; (ii) changes in market or industry conditions, regulatory environment, and receptivity to our technology and services; (iii) results of litigation or a security incident; (iv) the loss of one or more key clients or partners; (v) macroeconomic challenges (including high inflationary and/or high interest rate environments, or market volatility caused by bank failures and measures taken in response thereto) and any new public health crisis; and (vi) changes to our abilities to recruit and retain qualified team members. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024 that was filed with the SEC on November 7, 2024 and the Annual Report on Form 10-K for the year ended December 31, 2024 expected to be filed with the SEC on or about February 26, 2025. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update or revise this information unless required by law.


Consolidated Balance Sheets
(in thousands, except share and per share data)

As of December 31,
20242023
Assets
Current assets:
Cash and cash equivalents$249,645 $106,276 
Short-term investments142,355 211,452 
Accounts receivable, net57,182 60,290 
Prepaid expenses and other assets16,468 15,379 
Total current assets465,650 393,397 
Property and equipment, net29,394 25,712 
Intangible assets, net86,052 73,384 
Operating lease right-of-use assets12,058 13,927 
Goodwill259,759 190,652 
Other assets6,016 4,742 
Total assets$858,929 $701,814 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$11,433 $6,641 
Accrued liabilities26,340 23,282 
Deferred revenue(1)
53,281 55,753 
Operating lease liabilities3,614 3,358 
Current portion of long-term debt231,182 — 
Total current liabilities325,850 89,034 
Long-term debt, net of current portion151,178 228,034 
Deferred revenue, net of current portion249 77 
Operating lease liabilities, net of current portion16,291 17,676 
Other liabilities154 74 
Total liabilities493,722 334,895 
Stockholders’ equity:
Preferred stock, $0.001 par value per share; 25,000,000 shares authorized and no shares issued and outstanding as of December 31, 2024 and 2023
— — 
Common stock, $0.001 par value per share, and additional paid-in capital; 500,000,000 shares authorized as of December 31, 2024 and 2023; 64,043,799 and 58,295,491 shares issued and outstanding as of December 31, 2024 and 2023, respectively
1,552,714 1,484,056 
Accumulated deficit(1,186,672)(1,117,170)
Accumulated other comprehensive (loss) income(835)33 
Total stockholders’ equity 365,207 366,919 
Total liabilities and stockholders’ equity$858,929 $701,814 



Consolidated Statements of Operations
(in thousands, except per share data, unaudited)

Three Months Ended
December 31,		Twelve Months Ended
December 31,
2024202320242023
Revenue:
Technology$51,598 $47,100 $194,852 $187,583 
Professional services28,008 27,984 111,732 108,355 
Total revenue79,606 75,084 306,584 295,938 
Cost of revenue, excluding depreciation and amortization:
Technology(1)(2)(3)
18,821 16,719 67,812 62,474 
Professional services(1)(2)(3)
26,094 27,857 97,993 101,631 
Total cost of revenue, excluding depreciation and amortization
44,915 44,576 165,805 164,105 
Operating expenses:
Sales and marketing(1)(2)(3)
11,242 17,271 54,387 67,321 
Research and development(1)(2)(3)
15,002 20,288 57,950 72,627 
General and administrative(1)(2)(3)(4)(5)
15,681 15,430 56,817 76,559 
Depreciation and amortization10,266 10,304 41,431 42,223 
Total operating expenses52,191 63,293 210,585 258,730 
Loss from operations(17,500)(32,785)(69,806)(126,897)
Interest and other expense, net(2,548)2,616 637 9,106 
Loss before income taxes(20,048)(30,169)(69,169)(117,791)
Income tax provision625 143 333 356 
Net loss$(20,673)$(30,312)$(69,502)$(118,147)
Net loss per share, basic$(0.33)$(0.53)$(1.15)$(2.09)
Net loss per share, diluted$(0.33)$(0.53)$(1.15)$(2.09)
Weighted-average shares outstanding used in calculating net loss per share, basic62,377 57,476 60,185 56,418 
Weighted-average shares outstanding used in calculating net loss per share, diluted62,377 57,476 60,185 56,418 
_______________
(1)Includes stock-based compensation expense as follows:
Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
Stock-Based Compensation Expense:(in thousands)(in thousands)
Cost of revenue, excluding depreciation and amortization:
Technology$494 $458 $1,700 $1,866 
Professional services1,759 1,687 6,041 7,369 
Sales and marketing3,123 4,933 12,120 20,982 
Research and development2,305 2,536 7,696 11,213 
General and administrative3,131 3,397 12,571 14,326 
Total$10,812 $13,011 $40,128 $55,756 












(2)    Includes acquisition-related costs, net as follows:
Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
Acquisition-related costs, net:(in thousands)(in thousands)
Cost of revenue, excluding depreciation and amortization:
Technology$74 $65 $320 $273 
Professional services103 93 433 391 
Sales and marketing53 393 791 697 
Research and development91 200 703 787 
General and administrative4,012 1,904 7,817 3,609 
Total$4,333 $2,655 $10,064 $5,757 
(3)    Includes restructuring costs, as follows:
Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
Restructuring costs:(in thousands)(in thousands)
Cost of revenue, excluding depreciation and amortization:
Technology$— $484 $79 $496 
Professional services— 1,398 181 1,832 
Sales and marketing— 1,210 449 2,415 
Research and development— 3,051 443 3,337 
General and administrative— 624 936 742 
Total$— $6,767 $2,088 $8,822 

(4)     Includes litigation costs, as follows:
Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
Litigation costs:(in thousands)(in thousands)
General and administrative$— $— $— $21,279 

(5)     Includes non-recurring lease-related charges, as follows:
Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
Non-recurring lease-related charges:(in thousands)(in thousands)
General and administrative$— $1,400 $2,200 $4,081 







Consolidated Statements of Cash Flows
(in thousands)
Year Ended December 31,
20242023
Cash flows from operating activities
Net loss$(69,502)$(118,147)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Stock-based compensation expense40,128 55,756 
Depreciation and amortization41,431 42,223 
Investment discount and premium accretion(4,757)(9,720)
Impairment of long-lived assets2,200 4,081 
Non-cash operating lease expense2,685 2,990 
Provision for expected credit losses1,202 1,821 
Amortization of debt discount, issuance costs, and deferred financing costs3,256 1,511 
Deferred tax provision (benefit)77 8 
Change in fair value of contingent consideration liabilities(1,642)— 
Other141 67 
Change in operating assets and liabilities:
Accounts receivable, net4,281 (13,663)
Prepaid expenses and other assets(50)164 
Accounts payable, accrued liabilities, and other liabilities5,581 4,868 
Deferred revenue(7,012)(1,487)
Operating lease liabilities(3,460)(3,552)
Net cash provided by (used in) operating activities14,559 (33,080)
Cash flows from investing activities
Proceeds from the sale and maturity of short-term investments242,067 336,801 
Purchases of short-term investments(168,307)(290,836)
Capitalization of internal-use software(14,274)(11,957)
Acquisition of businesses, net of cash acquired(80,277)(11,392)
Purchases of property and equipment(1,616)(1,236)
Purchases of intangible assets(508)(1,118)
Proceeds from the sale of property and equipment13 31 
Net cash provided by (used in) investing activities(22,902)20,293 
Cash flows from financing activities
Proceeds from issuance of long-term debt, net of issuance costs152,277 — 
Payment of deferred financing costs(2,152)— 
Repayment of debt(959)— 
Proceeds from employee stock purchase plan2,411 3,588 
Proceeds from exercise of stock options169 950 
Repurchase of common stock— (1,808)
Net cash provided by (used in) financing activities151,746 2,730 
Effect of exchange rate changes on cash and cash equivalents(34)21 
Net increase (decrease) in cash and cash equivalents143,369 (10,036)
Cash and cash equivalents at beginning of period106,276 116,312 
Cash and cash equivalents at end of period$249,645 $106,276 




Non-GAAP Financial Measures
To supplement our financial information presented in accordance with GAAP, we believe certain non-GAAP financial measures, including Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per share, basic and diluted, are useful in evaluating our operating performance. For example, we exclude stock-based compensation expense because it is non-cash in nature and excluding this expense provides meaningful supplemental information regarding our operational performance and allows investors the ability to make more meaningful comparisons between our operating results and those of other companies. We use this non-GAAP financial information to evaluate our ongoing operations, as a component in determining employee bonus compensation, and for internal planning and forecasting purposes.
We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP financial measures differently or may use other measures to evaluate their performance. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.
Adjusted Gross Profit and Adjusted Gross Margin
Adjusted Gross Profit is a non-GAAP financial measure that we define as revenue less cost of revenue, excluding depreciation and amortization, adding back stock-based compensation, acquisition-related costs, net, and restructuring costs as applicable. We define Adjusted Gross Margin as our Adjusted Gross Profit divided by our revenue. We believe Adjusted Gross Profit and Adjusted Gross Margin are useful to investors as they eliminate the impact of certain non-cash expenses and certain other non-recurring operating expenses, and allow a direct comparison of these measures between periods without the impact of non-cash expenses and certain other non-recurring operating expenses.
The following is a reconciliation of our Adjusted Gross Profit and Adjusted Gross Margin, in total and for technology and professional services, to gross profit and gross margin, the most directly comparable financial measures calculated in accordance with GAAP, for the three and twelve months ended December 31, 2024 and 2023:
Three Months Ended December 31, 2024
(in thousands, except percentages)
TechnologyProfessional
Services		Total
Revenue$51,598 $28,008 $79,606 
Cost of revenue, excluding depreciation and amortization(18,821)(26,094)(44,915)
Amortization of intangible assets, cost of revenue(3,455)— (3,455)
Depreciation of property and equipment, cost of revenue(2,618)— (2,618)
Gross profit
26,704 1,914 28,618 
Gross margin
52 %7 %36 %
Add:
Amortization of intangible assets, cost of revenue3,455 — 3,455 
Depreciation of property and equipment, cost of revenue2,618 — 2,618 
Stock-based compensation494 1,759 2,253 
Acquisition-related costs, net(1)
74 103 177 
Adjusted Gross Profit$33,345 $3,776 $37,121 
Adjusted Gross Margin65 %13 %47 %
__________________
(1) Acquisition-related costs, net include deferred retention expenses attributable to the Lumeon, Carevive, ARMUS, and KPI Ninja acquisitions.



Three Months Ended December 31, 2023
(in thousands, except percentages)
TechnologyProfessional
Services		Total
Revenue$47,100 $27,984 $75,084 
Cost of revenue, excluding depreciation and amortization(16,719)(27,857)(44,576)
Amortization of intangible assets, cost of revenue(4,370)— (4,370)
Depreciation of property and equipment, cost of revenue(2,236)— (2,236)
Gross profit
23,775 127 23,902 
Gross margin
50 %— %32 %
Add:
Amortization of intangible assets, cost of revenue4,370 — 4,370 
Depreciation of property and equipment, cost of revenue2,236 — 2,236 
Stock-based compensation458 1,687 2,145 
Acquisition-related costs, net(1)
65 93 158 
Restructuring costs(2)
484 1,398 1,882 
Adjusted Gross Profit$31,388 $3,305 $34,693 
Adjusted Gross Margin67 %12 %46 %
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(1)Acquisition-related costs, net include deferred retention expenses following the ARMUS and KPI Ninja acquisitions.
(2)Restructuring costs include severance and other team member costs from workforce reductions.

Twelve Months Ended December 31, 2024
(in thousands, except percentages)
TechnologyProfessional
Services		Total
Revenue$194,852 $111,732 $306,584 
Cost of revenue, excluding depreciation and amortization(67,812)(97,993)(165,805)
Amortization of intangible assets, cost of revenue(16,150)— (16,150)
Depreciation of property and equipment, cost of revenue(10,126)— (10,126)
Gross profit
100,764 13,739 114,503 
Gross margin
52 %12 %37 %
Add:
Amortization of intangible assets, cost of revenue16,150 — 16,150 
Depreciation of property and equipment, cost of revenue10,126 — 10,126 
Stock-based compensation1,700 6,041 7,741 
Acquisition-related costs, net(1)
320 433 753 
Restructuring costs(2)
79 181 260 
Adjusted Gross Profit$129,139 $20,394 $149,533 
Adjusted Gross Margin66 %18 %49 %
__________________
(1) Acquisition-related costs, net include deferred retention expenses attributable to the Lumeon, Carevive, ARMUS, and KPI Ninja acquisitions.
(2) Restructuring costs include severance and other team member costs from workforce reductions.


Twelve Months Ended December 31, 2023
(in thousands, except percentages)
TechnologyProfessional
Services		Total
Revenue$187,583 $108,355 $295,938 
Cost of revenue, excluding depreciation and amortization(62,474)(101,631)(164,105)
Amortization of intangible assets, cost of revenue(18,742)— (18,742)
Depreciation of property and equipment, cost of revenue(9,089)— (9,089)
Gross profit
97,278 6,724 104,002 
Gross margin
52 %6 %35 %
Add:
Amortization of intangible assets, cost of revenue18,742 — 18,742 
Depreciation of property and equipment, cost of revenue9,089 — 9,089 
Stock-based compensation1,866 7,369 9,235 
Acquisition-related costs, net(1)
273 391 664 
Restructuring costs(2)
496 1,832 2,328 
Adjusted Gross Profit$127,744 $16,316 $144,060 
Adjusted Gross Margin68 %15 %49 %
___________________
(1)Acquisition-related costs, net include deferred retention expenses following the ARMUS, KPI Ninja, and Twistle acquisitions.
(2)Restructuring costs include severance and other team member costs from workforce reductions.


Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure that we define as net loss adjusted for (i) interest and other (income) expense, net, (ii) income tax provision (benefit), (iii) depreciation and amortization, (iv) stock-based compensation, (v) acquisition-related costs, net, including the fair change in value of contingent consideration liabilities for potential earn-out payments, (vi) litigation costs, (vii) restructuring costs, and (viii) non-recurring lease-related charges. We view acquisition-related expenses when applicable, such as transaction costs and changes in the fair value of contingent consideration liabilities that are directly related to business combinations, as costs that are unpredictable, dependent upon factors outside of our control, and are not necessarily reflective of operational performance during a period. We believe that excluding restructuring costs, litigation costs, and non-recurring lease-related charges allows for more meaningful comparisons between operating results from period to period as this is separate from the core activities that arise in the ordinary course of our business and are not part of our ongoing operations. We believe Adjusted EBITDA provides investors with useful information on period-to-period performance as evaluated by management and a comparison with our past financial performance and is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. The following is a reconciliation of our net loss, the most directly comparable GAAP financial measure, to Adjusted EBITDA, for the three and twelve months ended December 31, 2024 and 2023:

Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
(in thousands)(in thousands)
Net loss$(20,673)$(30,312)$(69,502)$(118,147)
Add:
Interest and other (income) expense, net2,548 (2,616)(637)(9,106)
Income tax provision625 143 333 356 
Depreciation and amortization10,266 10,304 41,431 42,223 
Stock-based compensation10,812 13,011 40,128 55,756 
Acquisition-related costs, net(1)
4,333 2,655 10,064 5,757 
Litigation costs(2)
— — — 21,279 
Restructuring costs(3)
— 6,767 2,088 8,822 
Non-recurring lease-related charges(4)
— 1,400 2,200 4,081 
Adjusted EBITDA$7,911 $1,352 $26,105 $11,021 
__________________
(1)Acquisition-related costs, net includes third-party fees associated with due diligence, deferred retention expenses, post-acquisition restructuring costs incurred as part of business combinations, and changes in fair value of contingent consideration liabilities for potential earn-out payments. For additional details refer to Notes 1, 2, and 7 in our consolidated financial statements.
(2)Litigation costs include costs related to litigation that are outside the ordinary course of our business. For additional details, refer to Note 16 in our consolidated financial statements.
(3)Restructuring costs include severance and other team member costs from workforce reductions, impairment of discontinued capitalized software projects, and other miscellaneous charges. For additional details, refer to Note 11 in our consolidated financial statements.
(4)Non-recurring lease-related charges includes lease-related impairment charges for the subleased portion of our corporate headquarters. For additional details refer to Note 9 in our consolidated financial statements.


Adjusted Net Income and Adjusted Net Income Per Share

Adjusted Net Income is a non-GAAP financial measure that we define as net loss adjusted for (i) stock-based compensation, (ii) amortization of acquired intangibles, (iii) acquisition-related costs, net, including the deferred tax valuation allowance release from acquisitions, (iv) litigation costs, (v) restructuring costs, (vi) non-recurring lease-related charges, and (vii) non-cash interest expense related to our convertible senior notes. We believe Adjusted Net Income provides investors with useful information on period-to-period performance as evaluated by management and comparison with our past financial performance and is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. The following is a reconciliation of our net loss, the most directly comparable GAAP financial measure, to Adjusted Net Income, for the three and twelve months ended December 31, 2024 and 2023:

Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
Numerator:(in thousands, except share and per share amounts)
Net loss$(20,673)$(30,312)$(69,502)$(118,147)
Add:
Stock-based compensation
10,812 13,011 40,128 55,756 
Amortization of acquired intangibles
7,029 7,243 28,654 29,636 
  Acquisition-related costs, net(1)
4,333 2,655 10,064 5,757 
  Litigation costs(2)
— — — 21,279 
 Restructuring costs(3)
— 6,767 2,088 8,822 
  Non-recurring lease-related charges(4)
— 1,400 2,200 4,081 
Non-cash interest expense related to debt1,178 379 3,256 1,511 
Adjusted Net Income$2,679 $1,143 $16,888 $8,695 
Denominator:
Weighted-average number of shares used in calculating net loss per share, basic62,376,784 57,476,187 60,184,920 56,418,397 
Non-GAAP weighted-average effect of dilutive securities536,029 283,805 305,370 666,488 
Non-GAAP weighted-average number of shares used in calculating Adjusted Net Income per share, diluted62,912,813 57,759,992 60,490,290 57,084,885 
Net loss per share, basic and diluted$(0.33)$(0.53)$(1.15)$(2.09)
Adjusted Net Income per share, basic$0.04 $0.02 $0.28 $0.15 
Adjusted Net Income per share, diluted$0.04 $0.02 $0.28 $0.15 
______________
(1)Acquisition-related costs, net includes third-party fees associated with due diligence, deferred retention expenses, post-acquisition restructuring costs incurred as part of business combinations, changes in fair value of contingent consideration liabilities for potential earn-out payments, and the deferred tax valuation allowance release from acquisitions. For additional details refer to Notes 1, 2, 7, and 15 in our consolidated financial statements.
(2)Litigation costs include costs related to litigation that are outside the ordinary course of our business. For additional details, refer to Note 16 in our consolidated financial statements.
(3)Restructuring costs include severance and other team member costs from workforce reductions, impairment of discontinued capitalized software projects, and other miscellaneous charges. For additional details, refer to Note 11 in our consolidated financial statements.
(4)Includes the lease-related impairment charge for the subleased portion of our corporate headquarters. For additional details refer to Note 9 in our consolidated financial statements.


Health Catalyst Investor Relations Contact:
Jack Knight
Vice President, Investor Relations
+1 (855)-309-6800
ir@healthcatalyst.com

Health Catalyst Media Contact:
Amanda Flanders
SVP, Marketing and Communications
media@healthcatalyst.com


© Health Catalyst. Confidential and Proprietary. Note: This summary contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding our future growth and our financial outlook for 2025. See press release dated February 26, 2025, furnished as Exhibit 99.1 on a Current Report on Form 8-K filed with the Securities and Exchange Commission on February 26, 2025 (the “Earnings Release”), for additional information about our forward-looking statements. (1) Growth percentages reference Year over Year performance. (2) See "Non-GAAP Financial Measures--Adjusted EBITDA" in the Earnings Release. (3) See Earnings Release for a description of the definition of Platform Clients for 2025 and future years. (4) See Earnings Release for a description of the calculation of Dollar-Based Retention pursuant to the legacy definition. (5) See Earnings Release for a description of the calculation of Dollar-Based Retention (Tech + TEMS). (6) We have not provided forward-looking guidance for net loss, the most directly comparable GAAP measure, to Adjusted EBITDA, and therefore have not reconciled guidance for Adjusted EBITDA to net loss, because there are items that may impact net loss, including stock-based compensation, that are not within our control or cannot be reasonably forecasted. (7) High-level estimated business unit adjusted EBITDA margin analysis. Estimated business unit contribution profit for Technology and Professional Services based on allocating adjusted gross margin and operating expenses by business unit. Adjusted gross margin segmented by Technology and Professional Services. Operating expenses allocated between Technology and Professional Services based on type of operating expense: Research & Development (R&D) expenses allocated to Technology business unit; Sales & Marketing expenses allocated between Technology and Professional Services by percentage of adjusted gross profit; General & Administrative expenses allocated between Technology and Professional Services by percentage of total cost of revenue (excluding depreciation and amortization) and R&D. Health Catalyst 2024 Financial Highlights, 2025 Guidance & Key Themes(1) 1 Q4 Financials • Revenue of $79.6M (+6%), in prior guidance range, but with a few minor project delays; Tech Revenue of $51.6M (+10%) • Net Loss of $20.7M; no guidance was previously provided • Adj. EBITDA(2) of $7.9M (+480%, 10% Margin), above midpoint of guidance range Full Year Financials • Revenue of $306.6M (+4%), in prior guidance range; Tech Revenue of $194.9M (+4%) • Net Loss of $69.5M; no guidance was previously provided • Adj. EBITDA(2) of $26.1M (+137%, 9% Margin), above midpoint of guidance range; Tech BU Adj. EBITDA of $25M (13% Margin) Growth Metrics • Net New Platform Clients(3): 21 (+91%), with avg. ARR + non-recurring revenue towards the lower end of the targeted range of $400K to $1M • Total Number of Platform Clients(3): 130 (+19%); Number of Platform + App Clients: >1,000 (+>50%) • Dollar-Based Retention legacy definition(4): 100%, which excludes some existing client expansion • Dollar-Based Retention updated definition (Tech + TEMS for Platform Clients)(5): 102%, which still excludes some existing client expansion 2024 Results 2025 Guidance and Bookings Targets • Q1 2025 Revenue: ~$79M (+6%) • Q1 2025 Adj. EBITDA(6): ~$4M (5% Margin) • 2025 Tech BU with ‘Rule of 30’ profile • 2025 Dollar-Based Retention (Tech + TEMS)(5): ~103% • 2025 Net New Platform Clients(3): ~40 (+90%), with average ARR + non-recurring revenue range expected to be $300k to $700k • Health Catalyst has added 6 Platform Clients thus far in 2025, and anticipates ~10 Net New Platform Client(3) additions by the end of Q1 Commentary and Key Themes • Closed previously announced acquisition of Upfront Healthcare, strengthening our patient activation offering • Strategic decision made to exit pilot Ambulatory Operations TEMS offering by mid-2025, representing ~$9M of annual services revenue • Announced recent client wins in Platform Client (Signature Healthcare), Expansion (Valleywise) and adjacent markets (Life Sciences & Payer) • 2025 Revenue: ~$335M (+9%) • 2025 Tech BU Revenue: ~$220M (+13%) • 2025 Adj. EBITDA(6): raised by $2M to ~$41M (+57%, 12% Margin) • 2025 Tech BU Adj. EBITDA(7): raised by $2M to ~$40M (+60%, 18% Margin)

 
v3.25.0.1
Cover Page
Feb. 26, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 26, 2025
Entity Registrant Name HEALTH CATALYST, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-38993
Entity Tax Identification Number 45-3337483
Entity Address, Address Line One 10897 South River Front Parkway
Entity Address, Address Line Two #300
Entity Address, City or Town South Jordan
Entity Address, State or Province UT
Entity Address, Postal Zip Code 84095
City Area Code 801
Local Phone Number 708-6800
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol HCAT
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001636422
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