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Uphealth (UPH) investor relations material
Uphealth Q1 2024 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
UpHealth completed the sale of Cloudbreak for $180 million, using proceeds to pay down debt and fund operations; the company no longer operates Virtual Care Infrastructure or Integrated Care Management platforms, focusing on Services through TTC, which remains deconsolidated due to bankruptcy proceedings.
UpHealth Holdings and key subsidiaries remain in Chapter 11, with ongoing restructuring and a proposed sale of TTC to fund a plan of reorganization; there is substantial doubt about UpHealth's ability to continue as a going concern.
The company reported no revenues for Q1 2024 due to the sale and deconsolidation of major business units; net income was driven by discontinued operations, primarily the gain on the Cloudbreak sale.
Financial highlights
Q1 2024 total revenues: $0, down from $24.7 million in Q1 2023, due to asset sales and deconsolidations.
Net income for Q1 2024: $25.4 million, compared to a net loss of $8.1 million in Q1 2023, primarily due to a $37.3 million gain from discontinued operations (Cloudbreak sale).
Gross profit for Q1 2024: $0, down from $12.5 million in Q1 2023.
Operating expenses for Q1 2024: $5.4 million, down 72% year-over-year.
Cash and cash equivalents at March 31, 2024: $1.0 million, with $169.4 million in restricted cash.
Outlook and guidance
No revenues, gross profit, or costs of revenues are expected for the remainder of 2024 due to the sale and deconsolidation of operating businesses.
The company anticipates a decrease in operating expenses and interest expense as debt is paid down and operations are further reduced.
UpHealth's future depends on the outcome of the Chapter 11 process and the potential sale of TTC; there may be little to no residual value for shareholders.
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