On Thursday, March, 2, 2023, CareCloud, Inc. announced its financial and operational results for the year ended December 31, 2022.
CareCloud, Inc. (formerly MTBC) is a publicly traded American healthcare information technology company that offers services to hospitals and healthcare providers. The company’s headquarters are in Somerset, New Jersey, and employs approximately 4,000 people worldwide.
With a range of technology-enabled solutions, they bring methodical innovation to the healthcare industry, assisting clients in boosting financial and operational performance, streamlining clinical workflows, and enhancing patient experiences.
To improve patient care while lowering administrative burdens and operating expenses, about 40,000 providers rely on CareCloud. Let’s look at some of their major achievements of the fourth quarter and some highlights of the third quarter results.
Understanding CareCloud’s Business Strategy and Goals
Technology advancements allowed the healthcare industry to transform how care is provided, and CareCloud quickly realized it could have a big impact on providers by offering tech-enabled solutions. Their goal has always been to provide products that help physicians provide the best possible care to their patients.
To strengthen their capabilities and their ability to contribute to enhancing the way healthcare is provided across the United States, CareCloud has made several strategic acquisitions. Today, they offer a full range of healthcare technology solutions that can be altered to improve the experience of every provider.
CareCloud’s fully integrated solutions, supported by proprietary technology, address the most prevalent issues in the healthcare sector, such as the need for better patient care, lower healthcare costs, and more effective operations. They still provide revenue cycle management solutions; however, they are currently utilizing a global workforce of 4,000 employees that can do so at a much lower price than if they solely relied on American workers.
Historically, CareCloud focused on market consolidation and acquisition-based growth; however, its leadership team has made it clear that they intend to concentrate on organic growth through ongoing investments in sales and marketing, the addition of new clients, and crucial cross-selling opportunities.
CareCloud experienced record organic bookings of $5.5 million in the second quarter of 2022 and $7.1 million in the third quarter, demonstrating the effectiveness of its sales and marketing efforts. These bookings have contributed to reported revenue of $106 million through the nine months that September 30, 2022.
CareCloud is a market-leading supplier of tech-enabled revenue cycle management and all-inclusive SaaS solutions that support operations in the medical industry. Redefining the next generation of technologically enabled revenue cycle solutions is their goal. To achieve this, they devote a lot of capital to enhancing their already-existing products and developing new, cutting-edge solutions that assist in transforming healthcare organizations. Additionally, they have expanded software capabilities and provide more complimentary business services to meet the demands of the US healthcare industry’s dynamic, ever-changing market conditions.
CareCloud uses the following tactics to fulfill its goals and mission:
A Closer Look at CareCloud’s Fourth Quarter Achievements
The revenue for CareCloud’s fourth quarter of 2022 was $32.5 million, a 13% decline from the fourth quarter of 2021, primarily due to the loss of the two major clients. Discussing the same, CareCloud’s Chief Financial Officer, Bill Korn said,
“Our 2021 revenue of $139.6 million would have been $118.1 million excluding these clients, and our 2022 revenue without these clients was $126.7 million. So, excluding these clients from both years, we would have recorded revenue growth of 7% in 2022.”
The company had about $12.3 million in cash as of December 31, 2022. The cash flow from operations for the fourth quarter of 2022 was roughly $6.0 million. On December 31, 2022, CareCloud’s net working capital was about $12.3 million.
Successfully Hosted First Annual Investor Day
CareCloud held its first Virtual Analyst and Investor Day on December 12, 2022. Their leadership team shared with attendees through this virtual event their historic vision to revolutionize the healthcare industry through cutting-edge technology, world-class operations, and intriguing new products.
It presented an excellent opportunity for all investors seeking to overcome economic uncertainty.
CareCloud Attracts More Healthcare Facilities to its Innovative Solutions
CareCloud solutions were in high demand this quarter as they were the first choice of many healthcare facilities. CareCloud’s medSR division partnered with East Tennessee Children’s Hospital (ETCH), which intends to enhance patient experience and increase cost efficiency at the hospital through supply chain improvement.
To help Rocky Mountain Internal Medicine proactively manage the health conditions of its patients, CareCloud partnered with them to implement its remote patient monitoring (RPM) solution. RPM is just one of the many cutting-edge CareCloud solutions that RMIM currently employs to deliver first-rate care to vulnerable populations throughout central Colorado.
For its hospital in East Central Alabama, Russell Medical Center used the expertise of CareCloud’s medSR division to choose and implement Meditech as its electronic health record (EHR) solution.
Several Cornerstone doctors with prior experience with the range of services and solutions provided by CareCloud recommended it to Cornerstone Specialty Hospitals West Monroe which specialises in the acute care for patients with complex medical needs i To support professional billing at the West Monroe location, CareCloud’s RCM services will integrate with the vendor of Cornerstone’s electronic health record system.
Meeting the Demand for Automated Processes
CareCloud detected the surge in demand for automated services; medical practices are looking for answers to post-pandemic critical issues now more than ever. Technology-enabled solutions that can strengthen the healthcare workforce by optimizing workflows are the solution to these problems and the future of the healthcare sector. To help medical office staff members maximize their time, CareCloud provides three different service types, including:
- Solutions that are fully integrated and bring together practice management, patient experience management, revenue cycle management, and electronic health records
- Digital health solutions, such as remote patient monitoring and chronic care management
- Automating repetitive tasks with robotic process automation and extending the workforce for tasks that cannot be fully automated
- CareCloud was recognized in the 2022 Best in KLAS Small Practice Ambulatory EMR/PM category.
- CareCloud Charts and CareCloud Central were named among the Best Medical Software of 2022 by Business News Daily as having the best workflow in medical software.
- CareCloud is a market leader for its revenue cycle management (RCM) software, according to FeaturedCustomers’ Summer 2022 Medical Practice Management Software Customer Success Report.
- Additionally, CareCloud Central was acknowledged by FeaturedCustomers as the best software for medical practice management solutions.
- VertexDR and talkEHR, two of its electronic health record (EHR) solutions, received Office of the National Coordinator for Health Information Technology (ONC) certification, making them 21st Century Cures Act Final Rule compliant.
Third Quarter Recap: Key Findings and Insights
- Revenue of $33.7 million, a 12% decline from Q3 2021
- GAAP net income of $1.1 million, compared to net income of $1.5 million in Q3 2021
- Adjusted net income of $3.3 million, or $0.21 per share
- Adjusted EBITDA of $4.8 million, compared to $6.7 million in Q3 2021
In Q3, CareCloud surpassed the previous record for organic, recurring bookings in Q2. They made significant contract signings in Q3, which are anticipated to result in $7.1 million in recurring annual revenues for $14.3 million in 2022, which will be a record-breaking year for them. They started CareCloud Wellness, a company offering remote patient monitoring and chronic care management services, allowing doctors to improve their patient’s healthcare.
The third quarter of 2022 saw revenue of $33.7 million, down $4.6 million or 12% from the third quarter of 2021. Two sizable hospital clients from their 2020 acquisitions finished integration with bigger health systems in the third quarter. They consequently scaled back their involvement with the company, which reduced CareCloud’s income.
CareCloud had about $4.9 million in cash as of September 30, 2022, of which $1.0 million was restricted cash from the purchase of medSR the previous year. Cash flow from operations for the first nine months of 2022 was about $15.1 million.
Post Announcement Event
To discuss their full-year 2022 results, CareCloud management also held a conference call at 8:30 a.m. Eastern Time. You can access the conference call’s live webcast, and related presentation slides at https://ir.carecloud.com/news-events/ir-calendar
You can also get an audio replay by calling 412-317-6671 and entering the access code 13736125.
The Editorial Team at Healthcare Business Today is made up of skilled healthcare writers and experts, led by our managing editor, Daniel Casciato, who has over 25 years of experience in healthcare writing. Since 1998, we have produced compelling and informative content for numerous publications, establishing ourselves as a trusted resource for health and wellness information. We offer readers access to fresh health, medicine, science, and technology developments and the latest in patient news, emphasizing how these developments affect our lives.