Carecloud, Inc. ((CCLD)) has held its Q4 earnings call. Read on for the main highlights of the call.
CareCloud, Inc. recently held its earnings call, reflecting a largely positive sentiment with notable achievements in profitability, cash flow, and strategic restructuring. Despite modest revenue declines and ongoing dividend obligations for remaining preferred shares, the company is well-positioned for growth, driven by innovations in AI and strategic market maneuvers.
Record-Breaking Profitability
CareCloud celebrated its strongest year of profitability, with adjusted EBITDA soaring to $24.1 million, marking a 56% increase year-over-year. The company also achieved a net income milestone, reaching an all-time high of $7.9 million, underscoring its robust financial performance.
Significant Increase in Free Cash Flow
The company reported a remarkable increase in free cash flow, generating $13.2 million, which represents a nearly 250% year-over-year growth. This achievement highlights CareCloud’s disciplined cost management and operational excellence.
Series A Preferred Stock Conversion
CareCloud completed the conversion of Series A preferred shares into common stock, aligning the interests of preferred shareholders with those of common shareholders. This strategic move frees up resources previously tied to dividend obligations.
AI-Driven Innovation and Expansion
The company continues to invest in AI-driven solutions, such as cirrusAI Notes, to drive efficiency and innovation. Additionally, CareCloud is introducing specialty-based EHR solutions, further expanding its market reach.
Modest Revenue Decline
Revenue for 2024 slightly declined to $110.8 million from $117.1 million in 2023, indicating a modest dip in business performance. This decline is balanced by the company’s strategic focus on long-term growth.
Non-recurring Professional Services Revenue Decline
CareCloud experienced a decline in non-recurring professional services revenue from medSR, which decreased by approximately $400,000 year-over-year.
Remaining Preferred Shares and Dividend Obligations
Approximately 1 million Series A preferred shares remain outstanding, continuing to incur dividend obligations, alongside ongoing Series B preferred dividends.
Positive Earnings Per Share Guidance for 2025
For the first time since going public in 2014, CareCloud anticipates positive earnings per share for 2025, with EPS expected to range between $0.10 and $0.13. This forecast marks a significant milestone in the company’s financial journey.
Forward-Looking Guidance
CareCloud’s guidance for 2025 projects revenue growth between $111 million and $114 million, signaling a strategic shift towards increasing revenue after previous declines. Adjusted EBITDA is expected to be between $26 million and $28 million, reflecting the company’s focus on maintaining profitability while investing in innovation. The anticipated positive EPS further underscores CareCloud’s strategic focus on operational efficiencies and AI-driven solutions.
In summary, CareCloud’s earnings call paints a picture of a company on the rise, with strong profitability, increased cash flow, and strategic initiatives in place. While facing modest revenue declines and ongoing dividend obligations, the company’s focus on AI-driven innovation and strategic market moves positions it well for future growth. The positive sentiment from the call suggests a promising outlook for CareCloud as it continues to navigate the financial landscape.