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 and the impact of the AHT sale.

• Adjusted EBITDA increased to $12.6 million in Q2, but for the first half of 2024, it declined to $22.0 million from $25.9 million in the prior year.

• Net loss for H1 2024 was $7.6 million, with a Q2 GAAP net loss of $5.0 million, driven by higher severance, non-recurring charges, and increased amortization.

• The Viewgol acquisition drove RCM segment gains and margin expansion, while EHR performance declined due to the AHT divestiture and customer attrition.

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

Financial highlights

• Q2 bookings reached $23.3 million, up 11% year-over-year, marking the third consecutive quarter above $20 million.

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

• Adjusted EBITDA margin for Q2 improved to 14.8% from 13.3% year-over-year.

• Operating cash flow for H1 2024 was $11.7 million, up from $10.2 million in the prior year.

• Gross margin for H1 2024 was 49%, up from 48% in the prior year.

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 of $45 million to $50 million.

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

• Long-term EBITDA margin target remains above 20%.