TruBridge (TBRG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $84.7 million, nearly flat year-over-year, with RCM revenue growth offsetting EHR declines; H1 2024 revenue was $168.0 million, down 2% year-over-year, mainly due to lower EHR segment revenues and the AHT sale, partially offset by Viewgol acquisition growth.

• Net loss for H1 2024 was $7.6 million, compared to net income of $0.2 million in the prior year, driven by higher severance, non-recurring charges, interest expense, cloud migration costs, and increased amortization; Q2 GAAP net loss was $5.0 million.

• Bookings momentum continued, with Q2 bookings at $23.3 million, up 11% year-over-year, and over 90% of projected 2024 revenue under contract.

• Integrated nTrust solution and Viewgol acquisition drove new client growth and operational improvements, with cross-selling efforts yielding $7 million in signed contracts and Viewgol contributing $9.9 million in H1 revenue.

• A material weakness in internal controls over financial reporting was identified and is being remediated.

Financial highlights

• RCM revenues rose 11% year-over-year to $107.1 million for H1 2024, with Viewgol contributing $9.9 million; EHR revenues fell 18% to $60.8 million.

• Adjusted EBITDA for Q2 was $12.6 million (margin 14.8%), up 12% year-over-year and 33% sequentially; H1 adjusted EBITDA was $22.0 million, down from $25.9 million in the prior year.

• Operating cash flow was $13.8 million in Q2 and $11.7 million for H1, up from $10.2 million year-over-year.

• Gross margin improved to 48.8% in Q2 and 49% for H1, up from 48% in the prior year.

• Net loss per share was $(0.51) for H1 2024; Q2 non-GAAP EPS was $0.16, down from $0.40.

Outlook and guidance

• Q3 2024 revenue expected between $82 million and $85 million; adjusted EBITDA between $11.5 million and $13.5 million.

• Full-year 2024 revenue guidance reiterated at $330 million to $340 million, with adjusted EBITDA between $45 million and $50 million.

• Management expects continued EHR revenue pressure due to Centriq sunset and SaaS migration, but RCM segment to benefit from Viewgol integration and cross-selling.