Health Catalyst (HCAT) Reports Q1: Everything You Need To Know Ahead Of Earnings

Kayode Omotosho /
2023/05/08 4:48 am EDT
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Healthcare software provider Health Catalyst (NASDAQ:HCAT) will be announcing earnings results tomorrow after the bell. Here's what investors should know.

Last quarter Health Catalyst reported revenues of $69.2 million, up 6.87% year on year, beating analyst revenue expectations by 1.32%. It was a weak quarter for the company, with a full year guidance missing analysts' expectations.

Is Health Catalyst buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Health Catalyst's revenue to grow 4.66% year on year to $71.3 million, slowing down from the 21.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.04 per share.

Health Catalyst Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.48%.

Looking at Health Catalyst's peers in the data and analytics software segment, only Alteryx has so far reported results, delivering top-line growth of 26.1% year on year, missing analyst estimates by 0.49%. The stock was down 8.45% on the results. Read our full analysis of Alteryx's earnings results here.

Tech stocks have been facing declining investor sentiment in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 6.54% over the last month. Health Catalyst is down 5.15% during the same time, and is heading into the earnings with analyst price target of $15.8, compared to share price of $12.15.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.