The following is a summary of the Ontrak, Inc. (OTRK) Q3 2024 Earnings Call Transcript:
Financial Performance:
In Q3 2024, Ontrak, Inc. reported a revenue of $2.6 million, a 31% decrease compared to the same period last year.
Quarterly revenue per health plan enrolled member per month averaged approximately $449, reflecting a decline from previous quarters.
The company experienced a gross margin of 62%, which is lower compared to 65.6% in Q2 of 2024 and 72% in Q3 of 2023.
Business Progress:
Ontrak announced customer expansion with Sentara Health Plans, expecting to offer their Engage solution to approximately 20,000 members.
Announced a new customer, a large health plan in the Northeast, and plans to close over 30,000 HEDIS gaps in care with this customer.
Achieved a net increase of 313 members during Q3, including the addition of 1,166 new members.
Opportunities:
Expanded service offerings and customer base across multiple lines, including Medicaid HARP, Medicare Advantage, and Commercial sectors.
Projected significant revenue growth due to new launches and customer expansions, with anticipated annual revenue of $11 million to $13 million.
Significant opportunities at the bottom of the sales funnel represent an additional $9 million to $12 million of potential annual revenue.
Risks:
Current and future revenue decreases due to the mix shift involving newer customers with different pricing structures and the inclusion of lower revenue Engage members.
Challenges of maintaining growth and customer retention in light of economic and industry-specific pressures.
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