SALT LAKE CITY - Health Catalyst , Inc. (Nasdaq: NASDAQ:HCAT), a prominent data and analytics technology service provider for healthcare organizations, has announced the completion of its acquisition of Carevive Systems, an oncology-focused health technology company. This strategic move aims to enhance the quality and impact of cancer care and research.
Carevive is known for its comprehensive platform used by oncology providers and researchers for various aspects of patient care, including treatment planning, clinical trial screening, and remote patient monitoring.
The integration of Carevive's capabilities with Health Catalyst's existing services is expected to provide improved insights into patient-reported outcomes and expand the understanding of oncology registry data.
Dan Burton, CEO of Health Catalyst, expressed enthusiasm for the acquisition, emphasizing the critical role of quality data in successful oncology programs. He highlighted the alignment of missions between the two companies, both dedicated to leveraging data and analytics to advance patient care.
Bruno Lempernesse, CEO of Carevive, also commented on the acquisition, noting the significance for patients and clients. He stressed the shared commitment to healthcare advancement through technology and data analytics. Lempernesse anticipates that the combined expertise of both companies will lead to more innovative solutions for cancer centers and provide researchers with valuable real-world data.
Health Catalyst is recognized for its cloud-based data platform, which processes data from over 100 million patient records and trillions of facts. The company's customers utilize this platform, along with analytical software and professional services, to inform decisions and achieve measurable improvements in clinical, financial, and operational areas.
The acquisition of Carevive by Health Catalyst is based on a press release statement and represents a notable development in the healthcare technology sector, particularly within oncology care and research.
In other recent news, Health Catalyst Inc. reported an increase in its Q1 2024 financial results with total revenue of $74.7 million and an adjusted EBITDA of $3.4 million. The company has also reiterated its full-year 2024 guidance, which includes projected revenues ranging from $304 million to $312 million, adjusted EBITDA between $24 million and $26 million, and a dollar-based retention rate of 104% to 110%.
Piper Sandler revised the price target for Health Catalyst to $14, maintaining an Overweight rating on the stock. The firm's financial model for the company now forecasts FY24 revenues at approximately $306.1 million, with adjusted EBITDA at $24.6 million.
In other recent developments, the company is actively exploring potential acquisitions and has expanded its partnership with Saudi German Health to improve health outcomes in the United Arab Emirates. Health Catalyst's technology revenue remained flat, while professional services revenue grew by 4%. The company anticipates Q2 2024 revenue to be between $73.5 million and $76.5 million.
InvestingPro Insights
Health Catalyst's strategic acquisition of Carevive is set to bolster its data analytics capabilities in the oncology sector. As the company navigates this enhancement, it's worth noting that Health Catalyst (Nasdaq: HCAT) has a market capitalization of $395.53 million, reflecting its position in the healthcare technology market.
Despite not being profitable over the last twelve months, analysts are optimistic, predicting that the company will turn a profit this year, as per InvestingPro Tips. This forward-looking sentiment is underscored by the fact that Health Catalyst holds more cash than debt on its balance sheet and has liquid assets that exceed its short-term obligations, which could provide financial flexibility as it integrates Carevive's operations.
From a financial performance standpoint, Health Catalyst reported revenue growth of 5.24% over the last twelve months as of Q1 2024. While the company's gross profit margin stands at a healthy 45.58%, its operating income margin was -28.38%, indicating that operational efficiencies may be an area of focus moving forward. Additionally, the firm's stock has experienced volatility, with a 1-year price total return of -45.35%, potentially presenting a buying opportunity for investors who believe in the long-term value proposition of the combined entity.
For those considering an investment in Health Catalyst, especially in light of its recent acquisition, there are more InvestingPro Tips available to guide your decision-making. With a comprehensive analysis, including 5 additional analyst revisions and insights into future profitability, InvestingPro offers a deeper dive into the company's prospects. To access these valuable insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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