• Total Revenue: $4.4 million for Q3 2024, compared to $6.1 million in Q3 2023.
• SaaS Revenue: $2.9 million for Q3 2024, 66% of total revenue, compared to $3.9 million, 64% of total revenue in Q3 2023.
• Net Loss: $2.5 million for Q3 2024, compared to a net loss of $11.9 million in Q3 2023.
• Adjusted EBITDA: Loss of $0.3 million for Q3 2024, compared to a gain of $0.4 million in Q3 2023.
• Booked SaaS ACV: $14.1 million as of October 31, 2024, with $12 million implemented.
• Cash on Hand: $0.8 million as of October 31, 2024.
• Total Debt: $12.3 million as of October 31, 2024.

• Warning! GuruFocus has detected 7 Warning Signs with STRM.

Release Date: December 17, 2024

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

Positive Points

• Streamline Health Solutions Inc (NASDAQ:STRM) successfully closed new contracts with an aggregate SaaS ACV of $700,000 during the third quarter.
• The company debuted a new quality module for its eValuator platform, which has been rapidly adopted by clients.
• Streamline Health Solutions Inc (NASDAQ:STRM) has accelerated its expectations for achieving an adjusted EBITDA positive run rate to the first half of fiscal 2025.
• The company has made significant progress in developing best practice manuals and leveraging client data to demonstrate the financial impact of its solutions.
• Streamline Health Solutions Inc (NASDAQ:STRM) has renegotiated key terms of its senior term loan, indicating strong support from its lender, Bridge Bank.

Negative Points

• Total revenue for the third quarter of fiscal 2024 decreased to $4.4 million from $6.1 million in the same quarter of fiscal 2023.
• The company reported a net loss of $2.5 million for the third quarter of fiscal 2024.
• SaaS revenue for the third quarter of fiscal 2024 decreased to $2.9 million from $3.9 million in the third quarter of fiscal 2023.
• Streamline Health Solutions Inc (NASDAQ:STRM) experienced previously announced client nonrenewals, impacting total revenue.
• The company had only $0.8 million of cash on hand as of October 31, 2024, compared to $3.2 million at the beginning of the fiscal year.

Q & A Highlights

Q: Can you expand on the 835 analysis and its implications for your clients? A: The 835 file is a correspondence between providers and payers. By incorporating 835 data into our solutions, we can pre-emptively address payer behaviors like denials and underpayments, which is increasingly important to our clients. This integration helps ensure accurate billing and enhances client satisfaction. - Benjamin Stilwill, CEO

Q: How does the incorporation of 835 data affect the ROI for eValuator? A: It allows us to replace standard CMS reimbursement rates with actual cash impact, enabling leaders to compare us with other vendors. By focusing on higher reimbursement rates, we can drive ROI higher than current levels. - Benjamin Stilwill, CEO

Q: What factors contributed to pulling forward the breakeven guidance? A: We've had success in getting clients live and renewing, which stabilizes our client base. Our focus on client success stories, like the RevID webinar, has generated significant interest and pipeline growth, positively impacting our financial forecast. - Benjamin Stilwill, CEO

Q: What are the near-term expectations for the pipeline and interest in the new module? A: We have a strong backlog and client success stories that are generating significant interest. By celebrating our leaders and reemphasizing our go-to-market strategy, we expect to see contracts coming through and a positive impact on our financial forecast. - Benjamin Stilwill, CEO

Q: What is the current financial position and outlook for Streamline Health Solutions? A: As of October 31, 2024, we had $0.8 million in cash and $12.3 million in total debt. We anticipate significant revenue growth in fiscal 2025 and achieving persistent adjusted EBITDA profitability. - BJ Reeves, CFO

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