Healthcare Triangle, Inc (HCTI) Reports Results for the Third Quarter of 2022

Rhea-AI Summary

Healthcare Triangle, Inc (HCTI) reported a 48% revenue increase in Q3 2022, achieving $11.9 million compared to $8.1 million in the same period last year. The gross margin stood at 29%, with R&D costs of $1.5 million. The company raised $6.5 million via private placement and launched services in Singapore. Despite the growth, HCTI posted a net loss of $2.3 million or $(0.06) per share, while cash on hand was $4.1 million as of September 30, 2022.

Positive

• Revenue increased by 48% year-over-year to $11.9 million.
• Launched new services in Singapore to expand market presence.
• Successfully raised $6.5 million through a private placement.
• Gross margin maintained at a healthy 29%.

Negative

• Net loss of $2.3 million or $(0.06) per share.
• Increased SG&A expenses to $3.2 million from $2 million, raising concerns over financial management.

PLEASANTON, Calif., Nov. 10, 2022 (GLOBE NEWSWIRE) -- Healthcare Triangle, Inc (HCTI), a leading provider of cloud and digital transformation, managed services and data analytics platform for healthcare and life sciences industry reported results for the quarter ended September 30, 2022. All comparisons are to the same year ago period unless otherwise noted.

Q3 2022 Financial Highlights

• Revenue increased 48% to $11.9 million YoY
• Gross margin at 29%
• R&D costs at $1.5 million
• Cash $4.1 million

Q3 2022 Operational Highlights

• Healthcare Triangle Inc, raised USD 6.5M through private placement 
• Launched our services in Singapore to grow digital healthcare in the Asia Pacific region
• Implemented MEDITECH Expanse for Chronic Care Management for a Primary Healthcare Centre
• Standardized cloud platform using IaC (Infrastructure as Code) for a genomics-based drug discovery enterprise
• Upgraded cloud platform for an Illinois based health insurer
• Executed data management services deal with multispecialty healthcare group
• Initiated AI based benchmarking services for a Fortune 100 technology company
  
  

Management Commentary

We remain excited by the opportunities we see in front of us. “Focusing on advanced cloud and AI driven data analytics for healthcare and life sciences industry; we expect our platforms and neutral zone offering to propel our revenues while significantly enhancing customer experience,” said Suresh Venkatachari, Chairman and CEO.

Thyagarajan Ramachandran, CFO of Healthcare Triangle, commented “We are benefiting from the momentum in healthcare business and reaffirming our commitment to consistently improve our EBITDA; and expect to be positive cash flow in fiscal year 2023”.

Q3 2022 Financial Summary

• Revenue in the third quarter of 2022 totalled $11.9 million, up 48% from $8.1 million. The increase was primarily due to increase in cloud adoption and cloud transformation services.
• Gross profit was $3.4 million at 29% margin.
• Selling, general and administrative expenses increased to $3.2 million compared to $2 million mainly due to additional investments in Sales & Marketing.
• Net loss was $2.3 million or $(0.06) per share.
• Cash and cash equivalents were $4.1 million on September 30, 2022

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 Prospectus filed with the SEC on October 7, 2021, previous filings, subsequent filings and future periodic reports filed with the SEC. All of 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 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.

Healthcare Triangle, Inc. www.healthcaretriangle.com

Contact: Michael Campana: michael.c@healthcaretriangle.com

 

FAQ

What was Healthcare Triangle's revenue in Q3 2022?

Healthcare Triangle reported revenue of $11.9 million in Q3 2022.

What was the net loss for HCTI in the third quarter of 2022?

Healthcare Triangle recorded a net loss of $2.3 million or $(0.06) per share.

How much did HCTI raise in private placement?

HCTI raised $6.5 million through a private placement.

What was the gross margin for HCTI in Q3 2022?

The gross margin for Healthcare Triangle was 29% in Q3 2022.

In which country did HCTI launch new services?

Healthcare Triangle launched new services in Singapore.