Health Catalyst (HCAT) Raymond James & Associates’ 46th Annual Institutional Investors Conference summary

Key milestones and business evolution

• Revenue has tripled since 2019, reaching $335 million in 2024, with over 90% recurring revenue.

• Client base expanded 10x, now exceeding 1,000, driven by organic growth and a dozen acquisitions.

• Shifted business mix to two-thirds technology and one-third services, increasing profitability.

• Growth slowed post-pandemic but is reaccelerating, with 9%+ year-over-year growth in 2024.

• Focus on converting app layer clients to platform clients as the main growth driver for the next five years.

Strategic acquisitions and Upfront deal

• Acquired Upfront, a leader in patient engagement, despite investor concerns about dilution.

• Upfront expected to deliver strong ROI and reach meaningful adjusted EBITDA quickly.

• Acquisition led to a 10% dilution but contributed to a 5% increase in EBITDA guidance for 2024.

• Upfront’s technology excels at patient activation using psychographics and analytics, driving measurable revenue for clients.

Technology platform transition: DOS to Ignite

• Ignite replaces the heavier, costlier DOS platform, leveraging cross-industry tech for efficiency.

• Ignite offers modularity, lower price points, and easier integration with clients’ existing cloud infrastructure.

• Enabled a significant increase in new client additions, with projections of 40 new logos in 2024.

• Sales focus shifted to converting existing app layer clients, with a 2x higher conversion rate than new clients.