TruBridge (TBRG) Q3 2024 earnings summary

Executive summary

• Achieved fourth consecutive quarter with over $20 million in bookings, reflecting strong demand and sales momentum.

• Q3 2024 revenue rose to $83.8M from $82.7M year-over-year, with Financial Health revenue up to $54.3M from $46.6M.

• Net loss increased to $17.4 million for the nine months, mainly due to higher amortization and interest expense; Q3 GAAP net loss widened to $(9.8)M.

• Integration of Viewgol progressing, with over 30% of CBO/EBO customers now supported by the India team; plans to double this by end of 2025.

• Leadership changes include the retirement of COO David Dye, elimination of the COO role, and direct reporting of business unit GMs to the CEO.

Financial highlights

• Q3 revenue was $83.8 million, up just over 1% year-over-year; excluding divestitures and sunsetting products, revenue grew 9%.

• Financial Health revenue (including Viewgol) was $54.3 million, up 17% year-over-year; organic growth (excluding Viewgol) was 5.3%.

• Patient Care revenue was $29.6 million, down 18% due to divestitures and product sunsets.

• Adjusted EBITDA for Q3 was $13.8 million, up 42% year-over-year; margin expanded to 16.5% from 11.8%.

• Net cash from operations for the nine months was $21.8M, up from $13.3M in the prior year.

Outlook and guidance

• Q4 revenue expected between $83.5 million-$85.5 million; adjusted EBITDA between $13.5 million-$14.5 million.

• Full-year 2024 revenue guidance narrowed to $335 million-$337 million; adjusted EBITDA to $49 million-$50 million, at the high end of previous guidance.

• 2025 outlook targets mid- to high-single-digit revenue growth and EBITDA margin improvement, aiming for 20% margin by Q3/Q4 2025.

• Management expects continued growth in Financial Health through cross-selling and new contracts, with recurring revenue as a key focus.

• Margin optimization efforts include organizational realignment, offshore expansion, and automation, though near-term margin pressure is expected from Viewgol integration.