CareCloud Financial & Operational Update
SOMERSET, N.J., Dec. 20, 2023 (GLOBE NEWSWIRE) -- CareCloud, Inc. (the “Company” or “CareCloud”) (Nasdaq: CCLD, CCLDO, CCLDP), a leader in healthcare technology solutions for medical practices and health systems nationwide, has released an update highlighting the following:
Roadmap for Future Growth: CareCloud’s stable core business and proprietary end-to-end platform lay the foundation for revenue growth and operational improvements in 2024 and beyond. The Company's strategic focus on innovative solutions, such as AI and cutting-edge technology, position it well for success in the ever-evolving healthcare technology landscape. Additionally, CareCloud’s global workforce strengthens its competitive position in the market and ability to scale. The Company previously announced a suspension of dividend payments on its preferred stock. This deferral in monthly payments allows the Company to stabilize its liquidity position and manage compliance with lender loan covenants. The Board of Directors will regularly review and consider the timing to reinstate dividend payments, which are cumulative and continue to accrue, and intends to resume such dividends towards the end of 2024.
Free Cash Flow: CareCloud continues to generate positive cash flow from its operations despite facing a slower return to top-line growth than expected in recent months. With the previously announced actions to reduce infrastructure costs and capitalized spending, the Company is executing on its plan targeting improvements in profitability and positive free cash flow in 2024. With regards to the previously communicated guidance for fiscal year 2023 revenue and adjusted EBITDA, we currently expect annual revenue of approximately $117 million, compared to the previous guidance range of $120 - $122 million, primarily impacted by our project-oriented professional business line. We expect adjusted EBITDA will be within the previously announced guidance range of $15 - $17 million.
A. Hadi Chaudhry, President and Chief Executive Officer of CareCloud stated, “We have recently faced challenges requiring us to make very difficult decisions. We are working aggressively to execute on growth initiatives supporting a plan towards positive free cash next year, solidifying the Company for sustainable success going forward and improving shareholder value.”
CareCloud (Nasdaq: CCLD, CCLDP, CCLDO) 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 revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, patient experience management (PXM) and digital health, at www.carecloud.com.
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. Where we use and discuss non-GAAP financial measures, we include the GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each historical non-GAAP financial measure and the comparable GAAP financial measure. 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.
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,” “shall,” “should,” “could,” “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “seeks,” “estimates,” “strategy,” “future,” “likely,” “forecast,” “predicts,” “possible,” “potential,” “target,” 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, and the anticipated resumption of payment of preferred stock dividends. Our actual results of operations and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
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.
Chief Financial Officer
Released December 20, 2023