• Q4 Revenue: $87.4 million, an increase of 2% year-over-year.
• Q4 Adjusted EBITDA: $17.2 million, a 44% increase over last year.
• Q4 Margins: Improved from 11.4% in Q1 to 20% in Q4.
• Q4 Cash Flow from Operations: $10.3 million, a $23 million improvement compared to the previous year.
• Full-Year Revenue: $339 million.
• Full-Year Adjusted EBITDA: $53 million.
• Full-Year Cash Flow from Operations: $32 million, up from just over $1 million last year.
• Leverage Ratio: Reduced from 4x to 3x.
• Q4 Bookings: $14.3 million.
• Full-Year Bookings: $82 million.
• Financial Health Revenue (Q4): $54.7 million, up 7.3% year-over-year.
• Patient Care Revenue (Q4): $32.7 million, decreased 6.3% year-over-year.
• Total Gross Margins (Q4): 53%, up 390 basis points year-over-year.
• Operating Expenses (Q4): $40.6 million, representing 46.5% of total revenue.
• Cash Balance (End of Q4): $12.3 million.
• Net Debt (End of Q4): $159 million.
• 2025 Revenue Guidance: $345 million to $360 million.
• 2025 Adjusted EBITDA Guidance: $59 million to $66 million.
• Q1 2025 Revenue Guidance: $85 million to $88 million.
• Q1 2025 Adjusted EBITDA Guidance: $14 million to $16 million.

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

Release Date: March 10, 2025

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

Positive Points

• TruBridge Inc (NASDAQ:TBRG) reported a 44% increase in adjusted EBITDA for Q4 2024, reaching $17.2 million.
• The company achieved a significant improvement in cash flow from operations, with a $23 million increase compared to the previous year.
• TruBridge Inc (NASDAQ:TBRG) successfully reduced its leverage ratio from 4 times to 3 times, indicating improved financial stability.
• The integration of Viewgol, an ambulatory offering acquired in Q4 2023, is on track, contributing positively to the company's growth.
• The nTrust offering showed strong market traction with 24 unique deals in 2024, up from 18 in 2023, demonstrating its growing acceptance.

Negative Points

• Bookings for Q4 2024 were lower than expected at $14.3 million, with some deals delayed into 2025.
• There is uncertainty regarding healthcare funding due to changes in Washington, which could impact deal timing.
• The company faces potential short-term volatility in bookings due to larger deal concentrations.
• Patient Care revenue decreased by 6.3% in Q4 2024 compared to the previous year, partly due to the impact of sunsetting Centriq.
• TruBridge Inc (NASDAQ:TBRG) has approximately 60 key CBO customers up for renewal in the next 24 months, posing a retention challenge.

Q & A Highlights

Q: Can you speak to the visibility you have on closing the remaining deals that were expected to close at the end of 2024? A: Christopher Fowler, President and CEO, explained that while some deals have been delayed due to factors outside their control, such as administrative changes in state governments, they remain confident these deals will close in the first half of 2025.

Q: On the sales and marketing initiatives, do you expect those to increase in tandem with revenue increases? A: Christopher Fowler noted that they are making substantial investments, particularly in marketing, to increase brand exposure, especially among 100 to 400 bed hospitals. This is expected to lead to revenue expansion into 2026.

Q: Can you quantify the visibility you have into 2025 revenue guidance based on current bookings and pipeline? A: Christopher Fowler and Vinay Bassi, CFO, emphasized that the guidance reflects learnings from 2024 and a close alignment between operations, sales, and finance teams to accurately translate bookings into revenue.

Q: How should we think about growth among the two segments, Financial Health and Patient Care, for 2025? A: Vinay Bassi indicated that Financial Health is expected to have higher growth, while Patient Care is anticipated to see low single-digit growth, driven by new product offerings.

Q: Regarding the 60 renewals over the next 24 months, how does this compare to a typical year, and are there any outsized clients in this group? A: Christopher Fowler stated that the 60 renewals are spread over 24 months and do not include any outsized clients. The focus is on ensuring customer satisfaction and retention.

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