• Revenue: $28.1 million in Q2 2024, down $1.3 million year-over-year.
• CareCloud Wellness Revenue: Over $1 million in Q2 2024, a 154% year-over-year increase.
• GAAP Net Income: $1.7 million in Q2 2024, first positive quarter since 2022.
• Free Cash Flow: $4.9 million for the first six months of 2024.
• Adjusted EBITDA: $6.4 million in Q2 2024, highest since Q2 2022.
• Operating Expenses: Decreased by $2.9 million in Q2 2024.
• Debt Repayment: $7.5 million repaid on credit facility year-to-date.
• Cash from Operations: $8.3 million for the first six months of 2024.
• Non-GAAP Adjusted Net Income: $3 million or $0.18 per share in Q2 2024.

• Warning! GuruFocus has detected 4 Warning Signs with CCLD.

Release Date: August 13, 2024

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

Positive Points

• CareCloud Inc (NASDAQ:CCLD) reported positive GAAP net income for the first time since 2022, indicating improved profitability.
• The company successfully reduced its line of credit balance from $10 million to $2.5 million, enhancing financial flexibility.
• CareCloud's cirrusAI Notes, a new AI product, has received positive feedback from pilot users, highlighting its efficiency and accuracy in clinical documentation.
• Revenue from the CareCloud Wellness program, including chronic care management and remote patient monitoring, increased by 154% year-over-year.
• The company identified over $26 million in annualized cost savings, contributing to improved free cash flow and reduced operating expenses.

Negative Points

• CareCloud Inc (NASDAQ:CCLD) experienced a year-over-year revenue decline of $1.3 million, primarily due to softness in the medSR professional services business.
• Despite positive feedback, the adoption of CareCloud cirrusAI Notes is still in its early stages, with only a small subset of clients currently using it.
• The company faces challenges in expanding its medSR services due to market dominance by a few large players, limiting growth opportunities.
• CareCloud Inc (NASDAQ:CCLD) is still working on convincing clients of the value of its AI solutions, indicating potential hurdles in widespread adoption.
• The company has not yet resumed dividends on its preferred stock, which may be a concern for some investors.

Q & A Highlights

Q: What percentage of CareCloud's operations is now handled by contractors versus in-house? A: Ata Ul Hadi Chaudhry, CEO, explained that the majority of work is performed by employees, with only a small portion by contractors. Stephen Snyder, CEO, added that they have reduced contractor expenses by 80-85% by transitioning to in-house experts, which also provides greater control over the work.

Q: Is the interest from industry partners largely inbound, or are there outbound efforts as well? A: Ata Ul Hadi Chaudhry, CEO, stated that it is both. CareCloud has multiple channel partners acting as resellers, and there is inbound interest for expansion. They are also investing in outreach to find additional partners.

Q: Can you provide the current value of your pipeline? A: Ata Ul Hadi Chaudhry, CEO, mentioned that the pipeline is over $16 million, excluding cross-sell and upsell opportunities. The focus is on recognized revenue, which is expected to be 50% higher this year compared to last year.

Q: What are the next steps for deploying AI after the initial launch of cirrusAI? A: Ata Ul Hadi Chaudhry, CEO, explained that they have launched two AI products and are working on a new product that combines features of both. This new product will convert patient-doctor conversations into charts and suggest diagnosis and procedure codes.

Q: How does M&A fit into CareCloud's growth strategy for 2025? A: Stephen Snyder, CEO, indicated that most growth will be organic, focusing on expanding existing customer relationships and partnerships. They may engage in quasi-acquisitions with billing companies to leverage their software and workforce without traditional acquisitions.

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