• Adjusted EBITDA: $24.1 million, a 56% increase year-over-year.
• Net Income: $7.9 million, an all-time high for the company.
• Free Cash Flow: $13.2 million, a year-over-year increase of nearly 250%.
• Revenue: $110.8 million for the year 2024, compared to $117.1 million in 2023.
• Fourth Quarter Revenue: $28.2 million, compared to $28.4 million in the same period last year.
• Fourth Quarter Adjusted EBITDA: $7.1 million, a 73% increase year-over-year.
• GAAP Net Income for Q4 2024: $3.3 million, compared to a net loss of $43.7 million in the same period last year.
• Cash from Operations: $20.6 million for the year 2024.
• Cash Balance as of December 31, 2024: Approximately $5.1 million.
• Working Capital: $5.2 million, compared to a deficit of $57,000 in the prior year.
• Guidance for 2025 Revenue: Expected to be between $111 million and $114 million.
• Guidance for 2025 Adjusted EBITDA: Projected to be between $26 million and $28 million.
• Guidance for 2025 Earnings Per Share: Expected to range between $0.10 and $0.13.

• Warning! GuruFocus has detected 6 Warning Signs with CCLD.

Release Date: March 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• CareCloud Inc (NASDAQ:CCLD) achieved record-breaking profitability in 2024, with adjusted EBITDA rising by 56% year-over-year to $24.1 million.
• The company reported a significant increase in free cash flow, reaching $13.2 million, a year-over-year increase of nearly 250%.
• CareCloud Inc (NASDAQ:CCLD) successfully converted Series A preferred shares into common stock, simplifying its capital structure and eliminating dividend obligations.
• The company anticipates positive earnings per share in 2025 for the first time since going public in 2014, reflecting strong business transformation and operational discipline.
• CareCloud Inc (NASDAQ:CCLD) is leveraging AI-driven solutions to enhance provider efficiency, reduce administrative burdens, and optimize patient outcomes, positioning itself for sustained innovation and growth.

Negative Points

• Despite achieving record profitability, CareCloud Inc (NASDAQ:CCLD) experienced a modest decline in revenue for 2024.
• The company has not completed a significant acquisition in almost four years, which may impact growth opportunities.
• There is a natural attrition in the client base due to consolidation of practices and provider retirements, which needs to be offset by new client acquisitions.
• Some sellers in the acquisition market continue to have inflated expectations, which could pose challenges for CareCloud Inc (NASDAQ:CCLD) in pursuing value-driven acquisitions.
• The company faces the challenge of maintaining profitability while investing in innovation and expanding its offerings in a competitive market.

Q & A Highlights

Q: Can you provide insights into the revenue and EBITDA guidance for 2025, and what are the key growth drivers? A: Stephen Snyder, Co-CEO: We anticipate revenue growth between $111 million and $114 million, marking a shift back to growth after previous declines. Key drivers include upselling RCM and digital health solutions to existing clients, leveraging specialty-specific EHR products, and potential acquisitions. Adjusted EBITDA is projected to be between $26 million and $28 million, reflecting disciplined cost management and innovation investments.

Q: What is the current status and future outlook for mergers and acquisitions (M&A)? A: Stephen Snyder, Co-CEO: We have re-entered the acquisition market, signaling our readiness to pursue strategic opportunities. The focus is on acquiring smaller and mid-sized medical billing companies that can benefit from our technology and operational infrastructure. We aim for value-driven acquisitions with rational pricing, avoiding aggressive multiples.

Q: How is CareCloud expanding its user base and offerings? A: Stephen Snyder, Co-CEO: Our user base is diverse, with about one-third in primary care and the rest across various specialties. Most clients use our integrated platform, and we see opportunities in upselling digital health solutions and AI-driven tools. We aim to expand our specialty-based EHR solutions to enhance clinical efficiency and patient care.

Q: Can you explain the Series A preferred stock conversion and its impact? A: Stephen Snyder, Co-CEO: The conversion involved 3.5 million shares of Series A preferred stock into common stock at a premium, aligning interests with common shareholders and eliminating $10 million in annual dividend obligations. Approximately 1 million shares remain, which continue to pay dividends. This move simplifies our capital structure and enhances shareholder value.

Q: What are the expected preferred dividend payments for the upcoming quarters? A: Stephen Snyder, Co-CEO: Going forward, annualized preferred dividend payments will be about $5.5 million. For the first quarter, payments will be adjusted due to the timing of the conversion. The remaining Series A and B shares will continue to receive dividends, with potential for future adjustments or redemptions.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.