Ontrak, Inc. (NASDAQ:OTRK), a provider of healthcare solutions currently trading at $1.80 per share, announced today a significant partnership with Intermountain Health aimed at expanding its Wholehealth+ solution to Medicare Advantage members. This collaboration is expected to bolster Ontrak's annualized revenue from existing customers by an estimated 25%, a crucial development given the company's current revenue of $11.24 million over the last twelve months.
The newly signed agreement positions Ontrak to increase its forecasted annualized revenue to between $14 million and $16 million, a notable rise from the previously projected range of $11 million to $13 million. The deal with Intermountain Health represents a strategic move for Ontrak as it continues to grow its customer base and enhance its service offerings to the healthcare market. According to InvestingPro data, this growth is particularly important as analysts had previously anticipated a 15% sales decline for the current year.
Ontrak, which has undergone several name changes in its history, with the most recent being from Catasys (NASDAQ:OTRK), Inc., is headquartered in Miami, FL, and operates under the healthcare and allied services industry. The collaboration with Intermountain Health is part of Ontrak's ongoing efforts to provide comprehensive healthcare services to a broader demographic.
The company's stock, trading under the symbol OTRK on The NASDAQ Capital Market, may see investor interest following this announcement as it reflects the company's growth trajectory and potential for increased revenue streams. InvestingPro analysis indicates the stock is currently undervalued, though investors should note its volatile price movements, with the stock down nearly 67% over the past year and trading well below its 52-week high of $16.05.
This development is based on an 8-K filing with the Securities and Exchange Commission, as reported by Ontrak, Inc. on January 8, 2025. The company's Chief Financial Officer, James J. Park, signed off on the report, ensuring compliance with the regulatory requirements of the SEC.
Investors and stakeholders in the healthcare services sector will be watching Ontrak's progress closely as it implements its Wholehealth+ solution with Intermountain Health and works to realize the anticipated revenue growth from this and other customer engagements. For deeper insights into Ontrak's financial health and growth prospects, including 8 additional ProTips and comprehensive valuation metrics, investors can access the full analysis through InvestingPro's detailed research report.
In other recent news, Ontrak Health announced its Q3 2024 financial results, revealing a revenue of $2.6 million, a 31% decrease compared to the same period last year. This drop in revenue is attributed to the loss of a customer earlier in the year. However, the company reported new customer acquisitions and expansions, including a significant partnership with Sentara Health Plans. Ontrak's AI-driven engagement system has achieved more than double the industry standard outreach success rate.
In light of these recent developments, the company anticipates a 12% to 23% sequential increase in Q4 2024 revenues. Current contracts are expected to generate $11 million to $13 million of annual revenue, and Q4 2024 revenue is projected to be between $2.9 million and $3.2 million. Despite a decline in revenue per health plan enrolled member per month and a negative operating cash flow for Q3 at $1.4 million, Ontrak Health continues to navigate the healthcare market with its specialized programs and AI-driven engagement systems.
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