Company Increases Full-Year Revenue Guidance

SOMERSET, N.J., Aug. 05, 2021 (GLOBE NEWSWIRE) — CareCloud, Inc. (the “Company” or “CareCloud”) (Nasdaq: MTBC) (Nasdaq: MTBCP), a leader in healthcare technology solutions for medical practices and health systems nationwide, today announced financial and operational results for the second quarter ended June 30, 2021. The Company’s management will conduct a conference call with related slides today at 8:30 a.m. Eastern Time to discuss these results and management’s outlook.

Second Quarter 2021 Highlights

• Record revenue of $34.1 million, 74% growth over Q2 2020
• GAAP net loss declined to $227,000, compared to a net loss of $4.8 million in Q2 2020
• Adjusted net income of $4.5 million, or $0.31 per share
• Adjusted EBITDA of $5.7 million, an increase of $5.5 million compared to $191,000 in Q2 2020

Year-to-date 2021 Highlights

• Revenue of $63.8 million, a 54% increase from YTD 2020
• GAAP net loss declined to $2.2 million, compared to a net loss of $7.3 million in the same period last year
• Adjusted net income of $7.4 million or $0.51 per share
• Adjusted EBITDA of $9.3 million, an increase of $8.4 million from $958,000 in the same period last year

“We are pleased to report record revenue of $34.1 million in the second quarter, a 74% year-over-year increase,” said A. Hadi Chaudhry, CareCloud’s Chief Executive Officer and President. “We are also proud to report $5.7 million in adjusted EBITDA, representing our seventeenth consecutive quarter of positive adjusted EBITDA.”

“In June we completed the medSR tuck-in acquisition, which provides specialty consulting services to hospitals and large healthcare groups, further expanding our addressable market growth opportunities,” said Hadi Chaudhry. “The businesses which became medSR (MedMatica Consulting Associates, Inc. and Santa Rosa Staffing, Inc.) have worked with over 100 hospitals and large practices over the last two years, and we now have employees with strong relationships with these potential clients to cross sell our SaaS healthcare solutions such as PrecisionBI and our revenue cycle management services.”

Second Quarter 2021 Financial Results

Revenue for the second quarter 2021 was a record $34.1 million, an increase of $14.5 million or 74% from the second quarter of 2020.

Bill Korn, Chief Financial Officer, commented “Revenue was a new record for the Company, 6% above our previous all-time high. Our annual revenue run rate is now $136 million, which is 29% above our 2020 revenue and 111% above our 2019 revenue. This is proof that our strategy of growing through a combination of organic growth and acquisitions continues to increase revenue significantly faster than the industry.”

The second quarter 2021 GAAP net loss was $227,000, as compared to a net loss of $4.8 million in the same period last year. The 2021 GAAP net loss reflects $3.1 million of non-cash depreciation and amortization expenses and $1.7 million of stock-based compensation. The GAAP net loss was $0.27 per share, based on the net loss attributable to common shareholders, which takes into account the preferred stock dividends declared during the quarter. “Our revenue grew by 74% from second quarter 2020, and our total operating expenses grew at a lower rate, 41% year-over-year, enabling us to reduce our GAAP net loss by 95% from second quarter 2020 to second quarter 2021,” noted Bill Korn.

Non-GAAP adjusted net income for second quarter 2021 was $4.5 million, or $0.31 per share, and is calculated using the end-of-period common shares outstanding. Non-GAAP adjusted diluted earnings per share is $0.26, using the end-of-period shares outstanding plus common shares issuable upon exercise of in-the-money warrants and the vesting of outstanding restricted stock units.

Adjusted EBITDA for second quarter 2021 was $5.7 million, or 17% of revenue, compared to $191,000 in the same period last year. CareCloud’s adjusted EBITDA increased by approximately $5.5 million from Q2 2020, in large part due to the cost savings resulting from integrating the businesses the Company acquired during 2020. “Adjusted EBITDA was our second best quarter ever, and just $50,000 less than our record adjusted EBITDA set in fourth quarter of 2020,” stated Bill Korn.

Six Month 2021 Financial Results

Revenue for the first six months of 2021 was $63.8 million, an increase of 54% compared to $41.4 million in the first six months of 2020.

Bill Korn remarked, “Approximately 81% of our revenue for the first half of 2021 involved the use of our technology, including clients using our core technology suite, one component of our technology, or clients where we are providing IT services utilizing our technology processes and know-how. Another 8% of revenue came from clients where we are providing solely revenue cycle management services, 9% of revenue is from clients where we are managing their entire medical practice, and approximately 2% of revenue comes from other services.”

For the first six months of 2021, the Company’s GAAP net loss was $2.2 million, or $0.63 per share, compared to a GAAP net loss of $7.3 million in the first six months of 2020. Non-GAAP adjusted net income for the first six months of 2021 was $7.4 million, or $0.51 per share.

During this period, our adjusted EBITDA was $9.3 million, an increase of $8.4 million or 876% from $958,000 in the same period last year.

Cash Balances and Capital

As of June 30, 2021, the Company had approximately $9.5 million of cash. During the second quarter 2021, cash flow from operations was approximately $1.1 million. Second quarter results included a $4.0 million cash settlement to resolve a pre-existing matter from the purchase of CareCloud Corporation in 2020. The cost of the settlement was anticipated and entirely borne by the seller, who forfeited $4.0 million of Series A Preferred Stock from the acquisition consideration, which had been held in escrow since the original transaction. Without this one-time expense, cash flow from operations would have been similar to our adjusted EBITDA and our adjusted net income. Our net working capital on June 30, 2021 was approximately $8.0 million.

2021 Full Year Guidance

Based on our record-breaking second quarter revenue and our outlook for the second half of 2021, CareCloud is increasing our forward-looking revenue guidance for the fiscal year ending December 31, 2021:

Bill Korn noted, “Our second quarter revenue surpassed expectations to set a new record, and we anticipate continued strong momentum during the second half of 2021. We have increased our full-year revenue guidance from a range of $133-137 million to a range of $135-138 million, at or above the midpoint of our prior guidance range. This represents growth of 28% to 31% over 2020 revenue. This includes organic growth from new clients as well as cross-selling new services to existing clients, and includes revenue from the medSR acquisition which occurred on June 1, 2021. We anticipate this will be our seventh consecutive year with annual revenue growth of 25% or more, a record few public companies have been able to achieve.”

“Adjusted EBITDA is still expected to be $22 to $25 million for full year 2021, growth of 103% to 131% over 2020 adjusted EBITDA, as the Company realizes the benefits of cost-savings and a full-year of additional scale from the CareCloud and Meridian acquisitions in 2020,” said Bill Korn. “Looking at our second quarter 2021 adjusted EBITDA, our revenue seasonality which always reduces first quarter adjusted EBITDA, and the cost reductions which are in place, we are comfortable reaffirming our $22 to $25 million full year adjusted EBITDA guidance.”

Conference Call Information

CareCloud management will host a conference call today at 8:30 a.m. Eastern Time to discuss the second quarter 2021 results. The live webcast of the conference call and related presentation slides can be accessed under Events & Presentations at ir.carecloud.com/events/. An audio-only option is available by dialing 786-204-3966 and referencing “CareCloud Second Quarter 2021 Earnings Call.” Investors who opt for audio only will need to download the related slides at ir.carecloud.com/events/.

A replay of the conference call with slides will be available approximately one hour after conclusion of the call at the same link. An audio replay can also be accessed by dialing 412-317-6671 and providing access code 3169990.

About CareCloud
CareCloud (Nasdaq: MTBC) (Nasdaq: MTBCP) brings disciplined innovation to the business of healthcare. Our suite of technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care while reducing administrative burdens and operating costs. Learn more about our products and services including practice management (PM), electronic health records (EHR), business intelligence, telehealth, revenue cycle management (RCM), Medical office practice management and patient experience management (PXM) at www.carecloud.com.

Follow CareCloud on LinkedIn, Twitter and Facebook.

For additional information, please visit our website at www.carecloud.com. To view CareCloud’s latest investor presentations, read recent press releases, and listen to interviews with management, please visit ir.carecloud.com.

Use of Non-GAAP Financial Measures

In our earnings releases, prepared remarks, conference calls, slide presentations, and webcasts, we use and discuss non-GAAP financial measures, as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the condensed consolidated financial statements. Our earnings press releases containing such non-GAAP reconciliations can be found in the Investor Relations section of our web site at ir.carecloud.com.

Forward-Looking Statements

This press release contains various forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “should,” “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue” or the negative of these terms or other comparable terminology.

Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management’s expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, the impact of the Covid-19 pandemic on our financial performance and business activities, and the expected results from the integration of our acquisitions.

These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry’s) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to the Company’s ability to manage growth, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, develop new technologies, upgrade and adapt legacy and acquired technologies to work with evolving industry standards, compete with other companies products and services competitive with ours, and other important risks and uncertainties referenced and discussed under the heading titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission. In addition, there is uncertainty about the spread of the Covid-19 virus and the impact it may have on the Company’s operations, the demand for the Company’s services, and economic activity in general.

The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

SOURCE CareCloud

Company Contact:
Bill Korn
Chief Financial Officer
CareCloud, Inc.
bkorn@carecloud.com

Investor Contact:
Matt Kreps, Managing Director
Darrow Associates Investor Relations
mkreps@darrowir.com
(214) 597-8200