Health Catalyst Reports Fourth Quarter and Year End 2022 Results


SOUTH JORDAN, Utah, Feb. 28, 2023 (GLOBE NEWSWIRE) -- Health Catalyst, Inc. ("Health Catalyst," Nasdaq: HCAT), a leading provider of data and analytics technology and services to healthcare organizations, today reported financial results for the quarter and year ended December 31, 2022.

“In the fourth quarter of 2022, I am pleased to share that we achieved strong performance across our business, including exceeding the mid-point of our quarterly guidance for both revenue and Adjusted EBITDA. For the full year 2022, I am also excited to share that our Adjusted EBITDA outperformed the mid-point of the original full year guidance we provided entering 2022, demonstrating continued operating leverage in our business despite lower annual revenue growth for 2022 as compared to our initial guidance for 2022.” said Dan Burton, CEO of Health Catalyst. “Additionally, I am honored to announce that Matthew Kolb, Executive Vice President and Chief Operating Officer of Carle Health, will be joining the Health Catalyst Board of Directors, effective July 1, 2023. Matt is deeply committed to Health Catalyst’s and Carle Health’s shared mission of data-informed healthcare improvement, and he has been an extraordinary leader throughout his career in enabling massive improvements in the healthcare ecosystem. Additionally, Carle Health has made the decision to deepen its long-term investment in Health Catalyst with a meaningful purchase on the open market of Health Catalyst’s common stock. We welcome them as a deeply mission-aligned long-term-oriented owner in the company. Consistent with my own personal decisions to purchase Health Catalyst shares on the open market over the past several months, which we estimate places me among Health Catalyst’s twenty largest shareholders, I am grateful to add a like-minded, deeply mission-focused and long-term oriented fellow shareholder to our company’s ownership group.”

Financial Highlights for the Three and Twelve Months Ended December 31, 2022

Key Financial Metrics

 Three Months Ended December 31, Year over Year Change

 Twelve Months Ended December 31, Year over Year Change

  2022   2021    2022   2021  
GAAP Financial Data:(in thousands, except percentages)  (in thousands, except percentages)
 
Technology revenue$44,664  $40,088  11% $176,288  $147,718  19%
Professional services revenue$24,498  $24,628  (1)% $99,948  $94,208  6%
Total revenue$69,162  $64,716  7% $276,236  $241,926  14%
Loss from operations$(36,745) $(44,765) 18% $(140,005) $(143,650) 3%
Net loss$(35,782) $(48,992) 27% $(137,403) $(153,210) 10%
Non-GAAP Financial Data:(1)           
Adjusted Technology Gross Profit$30,725  $27,951  10% $122,284  $102,326  20%
Adjusted Technology Gross Margin 69%  70%    69%  69%  
Adjusted Professional Services Gross Profit$4,325  $5,745  (25)% $23,565  $25,544  (8)%
Adjusted Professional Services Gross Margin 18%  23%    24%  27%  
Total Adjusted Gross Profit$35,050  $33,696  4% $145,849  $127,870  14%
Total Adjusted Gross Margin 51%  52%    53%  53%  
Adjusted EBITDA$(603) $(6,278) 90% $(2,487) $(11,248) 78%

________________________

(1)  These measures are not calculated in accordance with generally accepted accounting principles in the United States (GAAP). See the accompanying "Non-GAAP Financial Measures" section below for more information about these financial measures, including the limitations of such measures, and for a reconciliation of each measure to the most directly comparable measure calculated in accordance with GAAP.

Other Key Metrics

 As of December 31,
 2022  2021  2020 
DOS Subscription Clients98  90  74 
      
 Year Ended December 31,
 2022  2021  2020 
Dollar-based Retention Rate100% 112% 102%


The financial strain imposed by COVID-19 on a number of our clients led to a meaningfully lower professional services dollar-based retention in 2020 compared to prior years due to discounts provided to support our clients through the financial strain related to the initial outbreak. We did not provide similar discounts during 2021 and saw improvement in our professional services Dollar-based Retention Rate compared to 2020. However, 2022 proved to be a more challenging year than anticipated as a result of the inflationary macroeconomic environment and the meaningful financial strain that our health system end market faced, which contributed to a lower Dollar-based Retention Rate compared to 2021.

Financial Outlook

Health Catalyst provides forward-looking guidance on total revenue, a GAAP measure, and Adjusted EBITDA, a non-GAAP measure.

For the first quarter of 2023, we expect:

  • Total revenue between $70.3 million and $72.3 million, and
  • Adjusted EBITDA between $1.0 million and $2.5 million

For the full year of 2023, we expect:

  • Total revenue between $290 million and $295 million, and
  • Adjusted EBITDA between $9.0 million and $11.0 million

We have not reconciled guidance for Adjusted EBITDA to net loss, the most directly comparable GAAP measure, and have not provided forward-looking guidance for net loss, because there are items that may impact net loss, including stock-based compensation, that are not within our control or cannot be reasonably forecasted.

Quarterly Conference Call Details

The company will host a conference call to review the results today, Tuesday, February 28, 2023 at 5:00 p.m. E.T. The conference call can be accessed by dialing (800) 343-5172 for U.S. participants, or (785) 424-1699 for international participants, and referencing conference ID “HCAT Q422.” A live audio webcast will be available online at https://ir.healthcatalyst.com/. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.

About Health Catalyst

Health Catalyst is a leading provider of data and analytics technology and services to healthcare organizations committed to being the catalyst for massive, measurable, data-informed healthcare improvement. Its clients leverage the cloud-based data platform — powered by data from more than 100 million patient records and encompassing trillions of facts—as well as its analytics software and professional services expertise to make data-informed decisions and realize measurable clinical, financial, and operational improvements. Health Catalyst envisions a future in which all healthcare decisions are data informed.

Available Information

Our investors and others should note that we announce material information to the public about our company, products and services, and other matters related to our company through a variety of means, including our website (https://www.healthcatalyst.com/), our investor relations website (https://ir.healthcatalyst.com/), press releases, SEC filings, public conference calls, and social media, including our and our CEO's social media accounts, in order to achieve broad, non-exclusionary distribution of information to the public and to comply with our disclosure obligations under Regulation FD.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding our future growth and our financial outlook for Q1 and fiscal year 2023. Forward-looking statements are subject to risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance.

Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) changes in laws and regulations applicable to our business model; (ii) changes in market or industry conditions, regulatory environment, and receptivity to our technology and services; (iii) results of litigation or a security incident; (iv) the loss of one or more key clients or partners; (v) the impact of the challenging macroeconomic environment (including high inflationary and/or high interest rate environments) or public health emergencies, such as the COVID-19 pandemic, on our business and results of operations; and (vi) changes to our abilities to recruit and retain qualified team members. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2022 that was filed with the SEC on November 8, 2022 and the Annual Report on Form 10-K for the year ended December 31, 2022 expected to be filed with the SEC on or about February 28, 2023. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update or revise this information unless required by law.


Condensed Consolidated Balance Sheets
(in thousands, except share and per share data, unaudited)

 As of December 31,
  2022   2021 
Assets   
Current assets:   
Cash and cash equivalents$116,312  $193,227 
Short-term investments 247,178   251,754 
Accounts receivable, net 47,970   48,801 
Prepaid expenses and other assets 16,335   14,609 
Total current assets 427,795   508,391 
Property and equipment, net 25,928   23,316 
Operating lease right-of-use assets 16,658   21,133 
Intangible assets, net 92,189   104,788 
Goodwill 185,982   169,972 
Other assets 3,734   4,496 
Total assets$752,286  $832,096 
Liabilities and stockholders’ equity   
Current liabilities:   
Accounts payable$4,424  $4,693 
Accrued liabilities 19,691   23,725 
Deferred revenue 54,961   56,632 
Operating lease liabilities 3,434   3,425 
Contingent consideration liabilities    4,576 
Total current liabilities 82,510   93,051 
Long-term debt, net of current portion 226,523   180,942 
Deferred revenue, net of current portion 105   929 
Operating lease liabilities, net of current portion 18,017   20,244 
Contingent consideration liabilities, net of current portion    14,719 
Other liabilities 121   113 
Total liabilities 327,276   309,998 
Commitments and contingencies   
Stockholders’ equity:   
Preferred stock, $0.001 par value per share and additional paid-in capital; 25,000,000 shares authorized and no shares issued and outstanding as of December 31, 2022 and 2021     
Common stock, $0.001 par value per share, and additional paid-in capital; 500,000,000 shares authorized as of December 31, 2022 and 2021; 55,261,922 and 52,622,080 shares issued and outstanding as of December 31, 2022 and 2021, respectively 1,424,681   1,401,025 
Accumulated deficit (999,023)  (878,860)
Accumulated other comprehensive loss (648)  (67)
Total stockholders’ equity 425,010   522,098 
Total liabilities and stockholders’ equity$752,286  $832,096 


Condensed Consolidated Statements of Operations
(in thousands, except per share data, unaudited)

 Three Months Ended
December 31,
 Twelve Months Ended
December 31,
  2022   2021   2022   2021 
Revenue:     
Technology$44,664  $40,088  $176,288  $147,718 
Professional services 24,498   24,628   99,948   94,208 
Total revenue 69,162   64,716   276,236   241,926 
Cost of revenue, excluding depreciation and amortization:       
Technology(1)(2)(3) 14,747   12,750   56,642   47,516 
Professional services(1)(2)(3) 23,359   21,127   86,407   76,838 
Total cost of revenue, excluding depreciation and amortization 38,106   33,877   143,049   124,354 
Operating expenses:       
Sales and marketing(1)(2)(3) 20,373   21,863   87,514   75,027 
Research and development(1)(2)(3) 19,614   17,479   75,680   62,733 
General and administrative(1)(2)(3)(4) 16,150   25,338   61,701   85,934 
Depreciation and amortization 11,664   10,924   48,297   37,528 
Total operating expenses 67,801   75,604   273,192   261,222 
Loss from operations (36,745)  (44,765)  (140,005)  (143,650)
Loss on extinguishment of debt           
Interest and other expense, net 1,022   (4,376)  (1,678)  (16,458)
Loss before income taxes (35,723)  (49,141)  (141,683)  (160,108)
Income tax provision (benefit)(2) 59   (149)  (4,280)  (6,898)
Net loss$(35,782) $(48,992) $(137,403) $(153,210)
Net loss per share, basic$(0.66) $(0.94) $(2.56) $(3.23)
Net loss per share, diluted$(0.66) $(0.94) $(2.63) $(3.23)
Weighted-average shares outstanding used in calculating net loss per share, basic 54,496   52,117   53,722   47,495 
Weighted-average shares outstanding used in calculating net loss per share, diluted 54,496   52,117   54,080   47,495 

_______________
(1)  Includes stock-based compensation expense as follows:

 Three Months Ended December 31, Twelve Months Ended December 31,
  2022  2021  2022  2021
Stock-Based Compensation Expense:(in thousands) (in thousands)
Cost of revenue, excluding depreciation and amortization:       
Technology$495 $582 $2,058 $2,063
Professional services 2,148  2,181  8,230  8,047
Sales and marketing 7,157  5,850  28,082  22,698
Research and development 3,295  2,770  12,938  10,213
General and administrative 5,653  5,038  20,796  22,124
Total$18,748 $16,421 $72,104 $65,145

(2)  Includes acquisition-related costs, net as follows:

 Three Months Ended December 31, Twelve Months Ended December 31,
  2022  2021   2022   2021 
Acquisition-related costs, net:(in thousands) (in thousands)
Cost of revenue, excluding depreciation and amortization:       
Technology$84 $31  $351  $61 
Professional services 146  63   655   127 
Sales and marketing 337  296   1,894   592 
Research and development 687  446   3,045   901 
General and administrative 452  10,306   (1,051)  26,248 
Income tax benefit   (314)  (4,533)  (7,142)
Total$1,706 $10,828  $361  $20,787 
        

(3)  Includes restructuring costs, as follows:

 Three Months Ended December 31, Twelve Months Ended December 31,
  2022  2021  2022  2021
Restructuring costs:(in thousands) (in thousands)
Cost of revenue, excluding depreciation and amortization:       
Technology$229 $ $229 $
Professional services 892    1,139  
Sales and marketing 1,464    3,023  
Research and development 1,153    3,410  
General and administrative 188    624  
Total$3,926 $ $8,425 $

(4)  Includes non-recurring lease-related charges, as follows:

 Three Months Ended December 31, Twelve Months Ended December 31,
  2022  2021  2022  2021
Non-recurring lease-related charges(in thousands) (in thousands)
General and administrative$98 $ $3,798 $1,800


Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)

 Year Ended December 31,
  2022   2021 
Cash flows from operating activities   
Net loss$(137,403) $(153,210)
Adjustments to reconcile net loss to net cash used in operating activities:   
Stock-based compensation expense 72,104   65,145 
Depreciation and amortization 48,297   37,528 
Change in fair value of contingent consideration liabilities (4,668)  20,036 
Amortization of debt discount and issuance costs 1,500   11,948 
Non-cash operating lease expense 3,231   3,585 
Impairment of long-lived assets 5,023   1,800 
Investment discount and premium (accretion) amortization (2,236)  1,202 
Provision for expected credit losses 691   499 
Deferred tax benefit (4,523)  (7,134)
Payment of acquisition-related contingent consideration (3,234)  (9,085)
Other (145)  (53)
Change in operating assets and liabilities:   
Accounts receivable 788   102 
Prepaid expenses and other assets (478)  (4,442)
Accounts payable, accrued liabilities, and other liabilities (4,702)  5,202 
Deferred revenue (5,997)  7,637 
Operating lease liabilities (3,518)  (3,883)
Net cash used in operating activities (35,270)  (23,123)
Cash flows from investing activities   
Purchase of short-term investments (308,961)  (261,363)
Proceeds from the sale and maturity of short-term investments 315,171   186,893 
Acquisition of businesses, net of cash acquired (27,846)  (46,763)
Purchases of property and equipment (2,167)  (10,450)
Capitalization of internal use software (12,987)  (6,644)
Purchase of intangible assets (2,260)  (1,373)
Proceeds from the sale of property and equipment 29   22 
Net cash used in investing activities (39,021)  (139,678)
Cash flows from financing activities   
Proceeds from exercise of stock options 3,969   20,350 
Proceeds from employee stock purchase plan 3,153   4,844 
Payments of acquisition-related consideration (1,342)  (6,290)
Repurchase of common stock (8,393)   
Proceeds from public offerings, net of discounts, commissions, and offering costs    245,180 
Net cash (used in) provided by financing activities (2,613)  264,084 
Effect of exchange rate changes on cash and cash equivalents (11)  (10)
Net (decrease) increase in cash and cash equivalents (76,915)  101,273 
    
Cash and cash equivalents at beginning of period 193,227   91,954 
Cash and cash equivalents at end of period$116,312  $193,227 


Non-GAAP Financial Measures

To supplement our financial information presented in accordance with GAAP, we believe certain non-GAAP measures, including Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, Adjusted Net Loss, and Adjusted Net Loss per share, basic and diluted, are useful in evaluating our operating performance. For example, we exclude stock-based compensation expense because it is non-cash in nature and excluding this expense provides meaningful supplemental information regarding our operational performance and allows investors the ability to make more meaningful comparisons between our operating results and those of other companies. We use this non-GAAP financial information to evaluate our ongoing operations, as a component in determining employee bonus compensation, and for internal planning and forecasting purposes.

We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP measures differently or may use other measures to evaluate their performance. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.

Adjusted Gross Profit and Adjusted Gross Margin

Adjusted Gross Profit is a non-GAAP financial measure that we define as revenue less cost of revenue, excluding depreciation and amortization, adding back stock-based compensation, acquisition-related costs, net, and restructuring costs as applicable. We define Adjusted Gross Margin as our Adjusted Gross Profit divided by our revenue. We believe Adjusted Gross Profit and Adjusted Gross Margin are useful to investors as they eliminate the impact of certain non-cash expenses and allow a direct comparison of these measures between periods without the impact of non-cash expenses and certain other non-recurring operating expenses. The following is a reconciliation of revenue, the most directly comparable GAAP financial measure, to Adjusted Gross Profit, for the three and twelve months ended December 31, 2022 and 2021:

 Three Months Ended December 31, 2022
 (in thousands, except percentages)
 Technology Professional Services Total
Revenue$44,664  $24,498  $69,162 
Cost of revenue, excluding depreciation and amortization (14,747)  (23,359)  (38,106)
Gross profit, excluding depreciation and amortization 29,917   1,139   31,056 
Add:     
Stock-based compensation 495   2,148   2,643 
Acquisition-related costs, net(1) 84   146   230 
Restructuring costs(2) 229   892   1,121 
Adjusted Gross Profit$30,725  $4,325  $35,050 
Gross margin, excluding depreciation and amortization 67%  5%  45%
Adjusted Gross Margin 69%  18%  51%

___________________

(1)  Acquisition-related costs, net include deferred retention expenses following the ARMUS, KPI Ninja, and Twistle acquisitions.
(2)  Restructuring costs include severance and other team member costs from workforce reductions.

 Three Months Ended December 31, 2021
 (in thousands, except percentages)
 Technology Professional Services Total
Revenue$40,088  $24,628  $64,716 
Cost of revenue, excluding depreciation and amortization (12,750)  (21,127)  (33,877)
Gross profit, excluding depreciation and amortization 27,338   3,501   30,839 
Add:     
Stock-based compensation 582   2,181   2,763 
Acquisition-related costs, net(1) 31   63   94 
Adjusted Gross Profit$27,951  $5,745  $33,696 
Gross margin, excluding depreciation and amortization 68%  14%  48%
Adjusted Gross Margin 70%  23%  52%

___________________
(1)  Acquisition-related costs, net include deferred retention expenses following the acquisition of Twistle.

 Twelve Months Ended December 31, 2022
 (in thousands, except percentages)
 Technology Professional Services Total
Revenue$176,288  $99,948  $276,236 
Cost of revenue, excluding depreciation and amortization (56,642)  (86,407)  (143,049)
Gross profit, excluding depreciation and amortization 119,646   13,541   133,187 
Add:     
Stock-based compensation 2,058   8,230   10,288 
Acquisition-related costs, net(1) 351   655   1,006 
Restructuring costs(2) 229   1,139   1,368 
Adjusted Gross Profit$122,284  $23,565  $145,849 
Gross margin, excluding depreciation and amortization 68%  14%  48%
Adjusted Gross Margin 69%  24%  53%

___________________
(1)  Acquisition-related costs, net include deferred retention expenses following the ARMUS, KPI Ninja, and Twistle acquisitions.
(2)  Restructuring costs include severance and other team member costs from workforce reductions.

 Twelve Months Ended December 31, 2021
 (in thousands, except percentages)
 Technology Professional
Services
 Total
Revenue$147,718  $94,208  $241,926 
Cost of revenue, excluding depreciation and amortization (47,516)  (76,838)  (124,354)
Gross profit, excluding depreciation and amortization 100,202   17,370   117,572 
Add:     
Stock-based compensation 2,063   8,047   10,110 
Acquisition-related costs, net(1) 61   127   188 
Adjusted Gross Profit$102,326  $25,544  $127,870 
Gross margin, excluding depreciation and amortization 68%  18%  49%
Adjusted Gross Margin 69%  27%  53%

__________________
(1)  Acquisition-related costs, net includes deferred retention expenses following the acquisition of Twistle.

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure that we define as net loss adjusted for (i) interest and other (income) expense, net, (ii) income tax provision (benefit), (iii) depreciation and amortization, (iv) stock-based compensation, (v) acquisition-related costs, net, including the fair change in value of contingent consideration liabilities for potential earn-out payments, (vi) restructuring costs, and (vii) non-recurring lease-related charges. We view acquisition-related expenses when applicable, such as transaction costs and changes in the fair value of contingent consideration liabilities that are directly related to business combinations as costs that are unpredictable, dependent upon factors outside of our control, and are not necessarily reflective of operational performance during a period. We believe Adjusted EBITDA provides investors with useful information on period-to-period performance as evaluated by management and a comparison with our past financial performance and is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. The following is a reconciliation of our net loss, the most directly comparable GAAP financial measure, to Adjusted EBITDA, for the three and twelve months ended December 31, 2022 and 2021:

 Three Months Ended December 31, Twelve Months Ended December 31,
  2022   2021   2022   2021 
 (in thousands) (in thousands)
Net loss$(35,782) $(48,992) $(137,403) $(153,210)
Add:       
Interest and other (income) expense, net (1,022)  4,376   1,678   16,458 
Income tax provision (benefit) 59   (149)  (4,280)  (6,898)
Depreciation and amortization 11,664   10,924   48,297   37,528 
Stock-based compensation 18,748   16,421   72,104   65,145 
Acquisition-related costs, net(1) 1,706   11,142   4,894   27,929 
Restructuring cost(2) 3,926      8,425    
Non-recurring lease-related charges(3) 98      3,798   1,800 
Adjusted EBITDA$(603) $(6,278) $(2,487) $(11,248)

__________________
(1)  Acquisition-related costs, net includes third-party fees associated with due diligence, deferred retention expenses, post-acquisition restructuring costs incurred as part of business combinations, and changes in fair value of contingent consideration liabilities for potential earn-out payments. For additional details refer to Notes 1, 2, and 7 in our consolidated financial statements.
(2)  Restructuring costs include severance and other team member costs from workforce reductions, impairment of discontinued capitalized software projects, and other miscellaneous charges. For additional details, refer to Note 11 in our consolidated financial statements.
(3)  Includes the lease-related impairment charge for the subleased portion of our corporate headquarters. For additional details refer to Note 9 in our consolidated financial statements.

Adjusted Net Loss and Adjusted Net Loss Per Share

Adjusted Net Loss is a non-GAAP financial measure that we define as net loss adjusted for (i) stock-based compensation, (ii) amortization of acquired intangibles, (iii) acquisition-related costs, net, including the deferred tax valuation allowance release from acquisitions, (iv) restructuring costs, (v) non-recurring lease-related charges, and (vi) non-cash interest expense related to our convertible senior notes. We believe Adjusted Net Loss provides investors with useful information on period-to-period performance as evaluated by management and comparison with our past financial performance and is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance.

 Three Months Ended December 31, Twelve Months Ended December 31,
  2022   2021   2022   2021 
Numerator:(in thousands, except share and per share amounts)
Net loss$(35,782) $(48,992) $(137,403) $(153,210)
Add:       
Stock-based compensation 18,748   16,421   72,104   65,145 
Amortization of acquired intangibles 8,464   8,924   37,188   32,016 
Acquisition-related costs, net(1) 1,706   10,828   361   20,787 
Restructuring costs(2) 3,926      8,425    
Non-recurring lease-related charges(3) 98      3,798   1,800 
Non-cash interest expense related to convertible senior notes 376   3,105   1,500   11,948 
Adjusted Net Loss$(2,464) $(9,714) $(14,027) $(21,514)
Denominator:       
Weighted-average number of shares used in calculating net loss per share, basic and diluted 54,496,128   52,116,604   53,721,702   47,494,768 
Adjusted net loss per share, basic and diluted$(0.05) $(0.19) $(0.26) $(0.45)

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(1) Acquisition-related costs, net includes third-party fees associated with due diligence, deferred retention expenses, post-acquisition restructuring costs incurred as part of business combinations, changes in fair value of contingent consideration liabilities for potential earn-out payments, and the deferred tax valuation allowance release from acquisitions. For additional details refer to Notes 1, 2, 7, and 15 in our consolidated financial statements.
(2)  Restructuring costs include severance and other team member costs from workforce reductions, impairment of discontinued capitalized software projects, and other miscellaneous charges. For additional details, refer to Note 11 in our consolidated financial statements.
(3)  Includes the lease-related impairment charge for the subleased portion of our corporate headquarters. For additional details refer to Note 9 in our consolidated financial statements.


Health Catalyst Investor Relations Contact:

Adam Brown
Senior Vice President, Investor Relations and FP&A
+1 (855)-309-6800
ir@healthcatalyst.com

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Tarah Neujahr Bryan
Chief Marketing Officer
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