Healthcare Triangle Reports Fourth Quarter and Full Year 2022 Results

30% annual revenue growth to $46 million led by software services and successful integration of Devcool acquisition

PLEASANTON, Calif., March 28, 2023 (GLOBE NEWSWIRE) — Healthcare Triangle, Inc. (Nasdaq: HCTI), a leading provider of cloud and digital transformation, managed services, and data analytics solutions for the healthcare and life sciences industry, today announced financial results for its fourth quarter and full year ended December 31, 2022.

Fourth Quarter 2022 Financial Results

• Revenue: Total revenue was $11.3 million, representing growth of 23% compared to the fourth quarter of 2021. Revenue from the Software Services and Platform Services segments increased by 82% and 55%, respectively, partially offset by a 31% decrease in Managed Services and Support.
• GAAP loss from operations: GAAP loss from operations was $4.9 million, compared to $3.4 million in the fourth quarter of 2021. The increased loss was primarily related to investments in sales and marketing and research and development.
• GAAP net loss per share: GAAP basic and diluted net loss per share was $0.13 based on 36.6 million weighted-average shares outstanding, compared to $0.12 based on 29.4 million weighted-average shares outstanding in the year-ago quarter.

Full Year 2022 Financial Results

• Revenue: Total revenue was $45.8 million, representing growth of 30% compared to 2021. Revenue from Software Services and Platform Services increased 108% and 75%, respectively, partially offset by a 20% decrease in Managed Services and Support.
• GAAP loss from operations: GAAP loss from operations was $9.6 million, compared to $5.9 million in 2021. The increased loss was primarily related to a higher cost of revenue, costs of being a public company following the Company’s IPO in October 2021, and investments in sales and marketing and research and development.  
• GAAP net loss per share: GAAP basic and diluted net loss per share was $0.26 based on 36.6 million weighted-average shares outstanding, compared to $0.20 based on 29.4 million weighted-average shares outstanding in 2021.
• Cash and cash equivalents totalled $1.3 million as of December 31, 2022.

Business Highlights:

• Secured a long-term engagement for cloud and managed services with a client specialized in genomics-based drug discovery.
• Increased wallet share with one of the top cancer treatment and research hospitals in California through multi-period renewals and new business.
• Signed a deal to provide MEDITECH Expanse implementation support for a Nebraska-based medical center.
• Signed a contract for Enterprise EPIC support for one of the largest Georgia-based medical centers.
• Executed data management and advanced analytical services for an existing global Fortune 500 life sciences customer.
• Raised $6.5 million through a private placement transaction in July 2022.

Thyagarajan Ramachandran, Chief Financial Officer of Healthcare Triangle, stated, “2022 was an important building year for HCTI as we continued to drive innovation and growth for the years ahead. Our full year results were driven in large part by our successful integration of Devcool’s business and our focused efforts on adding health systems to assist clients in their cloud journeys. With our strong leadership team and new additions to our board in place, we are positioned to better than ever to seize and execute on numerous growth opportunities in the near term and beyond.”

Roy Sookhoo, appointed Chief Operating Officer of Healthcare Triangle in January 2023, commented, “With momentum built in 2022, and products and services streamlined, we are well-equipped to address the broad range of challenges, such as cybersecurity, performance efficiency, and digital transformation, that are specific to healthcare and life sciences organizations. Our CloudEz, DataEz and Readabl.ai platforms are gaining traction in the market, which we believe will lead to stronger revenue growth this year. At the same time, we have increased our investments in sales, marketing, and partnerships to grow our Managed Services, Software Services, and Platform Solution Services, and we are implementing strategies to bring forth more customer-centricity, innovation, inclusivity, and sustainability throughout our organization. We expect favorable market trends to continue and believe each of these strategies will have a net positive impact on overall results of operations this year.”

About Healthcare Triangle

Healthcare Triangle, Inc. based in Pleasanton, California, reinforces healthcare progress through breakthrough technology and extensive industry knowledge and expertise. We support healthcare providers including hospitals and health systems, payers, and pharma/life sciences organizations in their effort to improve health outcomes. Healthcare Triangle achieved HITRUST Certification for Cloud and Data Platform (CaDP), marketed as CloudEz™ and DataEz™. HITRUST Risk-based, 2-year (r2) Certified status demonstrates to our clients the highest standards for data protection and information security. Healthcare Triangle enables the adoption of new technologies, data enlightenment, business agility, and response to immediate business needs and competitive threats. The highly regulated healthcare and life sciences industries rely on Healthcare Triangle for expertise in digital transformation encompassing the cloud, security and compliance, data lifecycle management, healthcare interoperability, and clinical and business performance optimization. For more information, visit www.healthcaretriangle.com.

Forward-Looking Statements and Safe Harbor Notice

All statements other than statements of historical facts included in this press release are “forward-looking statements” (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include our expectations and those statements that use forward-looking words such as “projected,” “expect,” “possibility” and “anticipate.” The achievement or success of the matters covered by such forward-looking statements involve significant risks, uncertainties and assumptions. Actual results could differ materially from current projections or implied results. Investors should read the risk factors set forth in the Company’s Prospectus filed with the SEC on October 7, 2021, previous filings, subsequent filings and future periodic reports filed with the SEC. All of the Company’s forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.

The Company cautions that statements and assumptions made in this news release constitute forward-looking statements and make no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. The information set forth herein speaks only as of the date hereof. The Company and its management undertake no obligation to revise these statements following the date of this news release.

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