Health Catalyst Inc (HCAT) 2024 Q3 法說會逐字稿

Welcome to the Health Catalyst third quarter, 2024 earnings conference call.

歡迎參加 Health Catalyst 2024 年第三季財報電話會議。

(Operator Instructions).

（操作員說明）。

I would now like to turn the call over to Jack Knight Vice President of Investor Relations.

我現在想將電話轉給傑克奈特投資者關係副總裁。

Good afternoon and welcome to Health Catalyst's earnings conference call for the third quarter of 2024 which ended on September 30, 2024. My name is Jack Knight. I'm the Vice President of Investor Relations for Health Catalyst.

下午好，歡迎參加 Health Catalyst 於 2024 年 9 月 30 日結束的 2024 年第三季財報電話會議。我的名字是傑克奈特。我是 Health Catalyst 投資者關係副總裁。

And with me on the call is Dan Burton, our Chief Executive Officer, Jason Alger, our Chief Financial Officer, and Dan LeSueur, our Chief Operating Officer, a complete disclosure of our results can be found in our press release issued today as well as in our related form 8-K furnished to the SEC, both of which are available on the investor relations section of our website at ir.healthcatalyst.com.

與我一起參加電話會議的是我們的執行長 Dan Burton、我們的財務長 Jason Alger 和我們的營運長 Dan LeSueur，我們的績效的完整揭露可以在我們今天發布的新聞稿以及在我們向SEC 提供的相關表格8-K 中，您可以在我們網站ir.healthcatalyst.com 的投資者關係部分取得這兩個表格。

As a reminder, today's call is being recorded and a replay will be available following the conclusion of the call.

謹此提醒，我們正在對今天的通話進行錄音，通話結束後將提供重播。

During today's call, we will make forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 regarding our future growth and our financial outlook for the third quarter and full year of 2024 and 2025.

在今天的電話會議中，我們將根據 1995 年《私人證券訴訟改革法案》的安全港條款，就我們的未來成長以及 2024 年和 2025 年第三季以及全年的財務前景發表前瞻性聲明。

Our ability to attract new clients and retain and expand our relationships with existing clients, trends, strategies, the impact of the macroeconomic challenges, including the impact of inflation and the interest rate environment, the tight labor market, bookings, our pipeline conversion rates, the use of proceeds from loans under our credit facility and the availability of the delayed draw loan thereunder.

我們吸引新客戶、保留和擴大與現有客戶關係的能力、趨勢、策略、宏觀經濟挑戰的影響，包括通貨膨脹和利率環境的影響、緊張的勞動力市場、預訂、我們的通路轉換率、我們的信貸安排下的貸款收益的用途以及延遲提取貸款的可用性。

Our ability to refinance our existing indebtedness, the demand for deployment and development of our data and analytics platform, M&A activity and the general anticipated performance of our business.

我們為現有債務再融資的能力、部署和開發數據和分析平台的需求、併購活動以及我們業務的整體預期績效。

These forward-looking statements are based on management's current views and expectations as of today and should not be relied upon as representing our views as of any subsequent date. We disclaim any obligation to update any forward-looking statements or outlook.

這些前瞻性陳述是基於管理階層截至目前的當前觀點和預期，不應被視為代表我們在任何後續日期的觀點。我們不承擔更新任何前瞻性陳述或展望的義務。

Actual results may materially differ. Please refer to the risk factors in our Form 10-Q for the second quarter of 2024 filed with the SEC on August 8th, 2024, and our form 10-Q for the third quarter of 2024 that will be filed with the SEC.

實際結果可能存在重大差異。請參閱我們於 2024 年 8 月 8 日向 SEC 提交的 2024 年第二季 10-Q 表格以及即將向 SEC 提交的 2024 年第三季 10-Q 表格中的風險因素。

We will also refer to certain non-GAAP financial measures to provide additional information to investors. 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.

我們也將參考某些非公認會計準則財務指標，為投資者提供更多資訊。非 GAAP 財務資訊僅供補充資訊使用，作為分析工具有其局限性，不應單獨考慮或作為根據 GAAP 提供的財務資訊的替代品。

A reconciliation of non-GAAP financial measures for the second quarters of 2024 and 2023 to their most comparable GAAP measures is provided in our press release.

我們的新聞稿中提供了 2024 年和 2023 年第二季的非 GAAP 財務指標與其最具可比性的 GAAP 指標的調整表。

However, we have not provided forward-looking guidance for professional services gross margin, the most directly comparable GAAP measure to adjusted professional services gross margin discussed below. Technology gross margin the most directly comparable GAAP measure to adjusted technology gross margin discussed below or net cash from operating activities.

然而，我們尚未提供專業服務毛利率的前瞻性指引，這是與下文討論的調整後專業服務毛利率最直接可比較的公認會計原則衡量標準。技術毛利率是與下文討論的調整後技術毛利率或經營活動淨現金最直接可比較的公認會計原則衡量標準。

The most directly comparable GAAP measure to adjusted free cash flow discussed below. And therefore, not provided related reconciliations of these non-GAAP measures to their most comparable GAAP measures because there are items that are not within our control or cannot be reasonably forecasted.

以下討論的調整後自由現金流最直接可比較的 GAAP 衡量標準。因此，我們沒有提供這些非公認會計準則衡量指標與其最具可比性的公認會計準則衡量指標的相關調節表，因為有些項目不在我們的控制範圍內或無法合理預測。

With that, I will turn the call over to Dan Burton. Dan?

這樣，我會將電話轉給丹伯頓。擔？

Thank you, Jack, and thank you to everyone who has joined us this afternoon. We are pleased to share our third quarter, 2024 financial performance and other recent highlights.

謝謝你，傑克，也謝謝今天下午加入我們的所有人。我們很高興與大家分享我們 2024 年第三季的財務表現和其他近期亮點。

I will begin today's call with summary commentary on our third quarter, 2024 results and outlook. We are encouraged by our third quarter, 2024 financial results including total revenue of $76.4 million and adjusted EBITDA of $7.3 million.

我將在今天的電話會議開始時對 2024 年第三季的業績和前景進行總結評論。我們對 2024 年第三季的財務表現感到鼓舞，其中包括 7,640 萬美元的總收入和 730 萬美元的調整後 EBITDA。

Both of which exceeded the midpoint of our previous guidance. Additionally, we are updating our expectations for both revenue and adjusted EBITA for 2024 on revenue. We now anticipate 2024 revenue will be between $305 million and $311 million on 2024 adjusted EBITA.

兩者都超過了我們之前指導的中點。此外，我們正在更新 2024 年收入和調整後 EBITA 的預期。我們現在預計，以 2024 年調整後 EBITA 計算，2024 年營收將在 3.05 億美元至 3.11 億美元之間。

We are raising our expectations to between $25 million and $27 million. Likewise, we are pleased with our bookings performance through Q3 2024, and we are reiterating our full year 2024 bookings expectations inclusive of net new platform, subscription, client editions and dollar-based retention rate.

我們將預期提高至 2500 萬至 2700 萬美元。同樣，我們對 2024 年第三季的預訂表現感到滿意，並且我們重申 2024 年全年預訂預期，包括淨新平台、訂閱、客戶端版本和基於美元的保留率。

We will discuss in greater detail shortly.

我們將很快進行更詳細的討論。

Now let me highlight some additional items from the quarter. You will recall from our previous earnings calls, that we measure our company's performance in the three strategic objective categories of improvement, growth and scale. And we'll discuss our quarterly results with you in each of these categories.

現在讓我重點介紹本季的一些其他項目。您會記得在我們先前的財報電話會議中，我們在改善、成長和規模這三個策略目標類別中衡量我們公司的績效。我們將與您討論每個類別的季度業績。

The first category, improvement, is focused on evaluating our ability to enable our clients to realize massive, measurable improvements while also maintaining industry-leading client and team member engagement.

第一類，改進，重點是評估我們使客戶實現大規模、可衡量的改進的能力，同時保持業界領先的客戶和團隊成員的參與度。

Let me begin by sharing an example of a client improvement from a recently published case study. archiving unique and complex data is challenging for health systems. As data resides in multiple disparate systems and includes both structured and unstructured data. Traditional health care data archiving methods can be costly and inefficient which hinders data sorting and utilization efforts.

首先讓我分享一個最近發布的案例研究中的客戶改進範例。歸檔獨特且複雜的數據對於衛生系統來說是一項挑戰。由於資料駐留在多個不同的系統中，並且包括結構化和非結構化資料。傳統的醫療保健資料歸檔方法成本高且效率低下，這阻礙了資料分類和利用工作。

Guys in St. Thomas' NHS Foundation Trust recognized the need for a scalable and sustainable approach to archiving and accessing clinical data. The organization was committed to maintaining access and utilization of historical data dating back as far as 30 years, but it lacks scalable and sustainable approaches to archiving and quickly accessing clinical data from decommission legacy systems.

聖托馬斯 NHS 基金會信託基金的成員認識到需要一種可擴展且可持續的方法來歸檔和存取臨床數據。該組織致力於維護可追溯至 30 年前的歷史資料的存取和利用，但缺乏可擴展且可持續的方法來歸檔和快速存取退役遺留系統中的臨床資料。

Several legacy systems were built on aging technology, which increases the risk of data breaches and system failures. As a result, Guy's and St. Thomas' initially attempted to build an in-house solution, but increasing costs and complications slowed development time. and the organization needed to find a better solution quickly to preserve historical data.

一些遺留系統是基於老化技術建構的，這增加了資料外洩和系統故障的風險。因此，蓋伊和聖托馬斯最初嘗試建立內部解決方案，但不斷增加的成本和複雜性減慢了開發時間。該組織需要快速找到更好的解決方案來保存歷史資料。

To combat this issue, Guys in St. Thomas partnered with Health Catalyst to ingest data from 60 source systems into the Health Catalyst data platform to streamline its data archiving processes. The Health Catalyst data platform offers many advantages compared to cold storage as our platform provides a secure, modern and reliable system, ensuring that teams across the organization and continue to access the data.

為了解決這個問題，Guys in St. Thomas 與 Health Catalyst 合作，將來自 60 個來源系統的資料提取到 Health Catalyst 資料平台中，以簡化其資料歸檔流程。與冷儲存相比，Health Catalyst 資料平台具有許多優勢，因為我們的平台提供了安全、現代化且可靠的系統，確保整個組織的團隊持續存取資料。

Together with Guy's and St. Thomas', we built analytics applications to visualize data and provide comprehensive reporting to help drive actionable improvement. By leveraging Health Catalyst data platform, the organization created a robust, scalable and cost-effective long-term solution that helps Guy's and St. Thomas' improve patient outcomes and realize operational efficiency.

我們與 Guy's 和 St. Thomas' 一起建立了分析應用程式來視覺化數據並提供全面的報告，以幫助推動可操作的改進。透過利用 Health Catalyst 數據平台，該組織創建了一個強大、可擴展且經濟高效的長期解決方案，幫助蓋伊和聖托馬斯改善患者治療效果並實現營運效率。

Resulting in over $8.5 million in cost savings. Following these positive results, the organization plans to build additional analytics and aggregate data from 70 more source systems into the data platform. Also in the improvement category, we have been fortunate to receive additional external recognitions.

從而節省了超過 850 萬美元的成本。在取得這些積極成果後，該組織計劃建立額外的分析功能，並將 70 個以上來源系統的資料聚合到資料平台中。同樣在改進類別中，我們很幸運地獲得了額外的外部認可。

First, we are excited to be named one of the best workplaces in health care by Fortune for the second year in a row at the top workplace in Utah by the Salt Lake Tribune for the 11 year in a row and as one of America's greatest workplaces for people with disabilities by Newsweek. We were also honored as part of the Utah 100 by Mountain West Capital for the tenth time, a list that includes the fastest-growing companies in Utah.

首先，我們很高興連續第二年被《財富》雜誌評為醫療保健領域最佳工作場所之一，連續11 年被《鹽湖論壇報》評為猶他州最佳工作場所，並被評為美國最偉大的工作場所之一《新聞週刊》為殘疾人士提供的服務。我們也第十次被 Mountain West Capital 評選為猶他州 100 強企業，名單囊括了猶他州發展最快的公司。

Lastly, we are excited to share that Jessica Curran, our Vice President of Data Science and Analytics was recently named a finalist for the Women's Tech awards by the WomenTech Council. Recognizing the exceptional work Jessica does as the product owner for health catalysts health care.ai, a suite of AI products and expert services that help hospitals and health systems dramatically expand the use of AI to improve health care decision-making.

最後，我們很高興地告訴大家，我們的數據科學和分析副總裁 Jessica Curran 最近被女性科技委員會提名為女性科技獎的決賽入圍者。表彰 Jessica 作為健康催化劑 health care.ai 產品負責人所做的傑出工作，這是一套人工智慧產品和專家服務，可幫助醫院和衛生系統大幅擴展人工智慧的使用，以改善醫療保健決策。

Our next strategic objective category is growth. which includes expanding existing client relationships and beginning new client relationships. Consistent with what we have shared over the last few quarters, we are encouraged to see health system operating margins steadily improving and stabilize.

我們的下一個策略目標類別是成長。其中包括擴大現有客戶關係和建立新的客戶關係。與我們在過去幾季分享的情況一致，我們很高興看到衛生系統營運利潤率穩定提高和穩定。

This improving end market contributes to our robust pipeline and our continued confidence and our expectation that our top line growth will accelerate back to double digits in 2025.

這種不斷改善的終端市場有助於我們強勁的產品線、持續的信心以及我們對 2025 年收入成長將加速回兩位數的預期。

As such, we are reiterating our full year 2024 bookings expectations inclusive of net new platform subscription additions in the low 20s and our dollar-based retention rate between 100% and 106%. We are excited that low 20s net new platform subscription additions would represent the best year in Health Catalyst history for this metric.

因此，我們重申 2024 年全年預訂量預期，包括新平台訂閱量在 20 左右的淨增長以及基於美元的保留率在 100% 到 106% 之間。我們很高興看到 20 多的新平台訂閱新增量將代表 Health Catalyst 歷史上該指標最好的一年。

Underscoring the significant client demand we continue to see for our solutions. Related to our full year 2024 bookings expectations, let me first share a reminder that similar to prior years, Q4 is anticipated to be an important bookings quarter. For new clients, we continue to anticipate the average ARR plus nonrecurring revenue for 2024 net new platform subscription clients will be between $400,000 and $1 million.

我們不斷看到客戶對我們的解決方案的巨大需求。與我們對 2024 年全年預訂量的預期相關，我首先要提醒大家的是，與往年類似，第四季度預計將是一個重要的預訂季度。對於新客戶，我們繼續預計 2024 年淨新平台訂閱客戶的平均 ARR 加上非經常性收入將在 40 萬美元至 100 萬美元之間。

As it relates to our 2024 dollar-based net retention, we are reiterating our expectations shared on our Q2 call of 100% to 106%. Q4 bookings will have a significant impact on where we end up on our new client performance and dollar-based net retention for 2024. As a reminder, dollar-based net retention excludes items such as nonrecurring professional services revenue. as well as expansions within our non-platform application only client base.

由於它與我們 2024 年以美元為基礎的淨保留率有關，因此我們重申我們對第二季度 100% 至 106% 的預期。第四季的預訂將對我們最終的新客戶業績和 2024 年以美元為基礎的淨保留率產生重大影響。提醒一下，以美元為基礎的淨留存率不包括非經常性專業服務收入等項目。以及我們的非平台應用程式客戶群的擴展。

We anticipate these two categories of existing client expansion which fall outside of the current definition of dollar-based retention will be meaningful drivers of revenue growth, and we expect they will also contribute to our adjusted EBITDA growth in 2025. Due to their higher margin profile than 10s expansions.

我們預計，這兩類現有客戶的擴張不符合目前以美元為基礎的保留定義，這將成為營收成長的重要驅動力，我們預計它們也將為我們 2025 年調整後 EBITDA 的成長做出貢獻。由於其利潤率高於 10 秒的擴張。

Given that these important growth categories fall outside of our current definition of dollar-based retention, and our desire to provide shareholders with meaningful insight into our growth drivers. We are continuing to consider whether it would be helpful to update the growth metrics we have historically shared. We anticipate we will be in a position to share this potential update in early 2025.

鑑於這些重要的成長類別不符合我們目前對以美元為基礎的保留的定義，並且我們希望為股東提供有關我們成長動力的有意義的見解。我們正在繼續考慮更新我們歷史上共享的成長指標是否會有幫助。我們預計我們將能夠在 2025 年初分享這項潛在的更新。

Given the importance of our next generation Ignite platform and enabling our growth and product strategy, and consistent with last quarter's earnings call, our Chief Operating Officer, Dan LeSueur, has joined this earnings call. We expect that he will join future earnings calls to provide status updates and help answer Ignite related questions. With that, let me turn some time over to Dan LeSueur.

鑑於我們的下一代 Ignite 平台以及支援我們的成長和產品策略的重要性，並且與上季的財報電話會議一致，我們的營運長 Dan LeSueur 參加了本次財報電話會議。我們預計他將參加未來的財報電話會議，提供最新狀態並協助回答 Ignite 相關問題。接下來，讓我把時間交給 Dan LeSueur。

Thank you, Dan. We continue to see strong demand among existing clients to migrate to Ignite and steady progress with implementing migrations that are underway. We are generally on schedule relative to forecasted timelines for migrations.

謝謝你，丹。我們繼續看到現有客戶對遷移到 Ignite 的強烈需求，並且正在進行的遷移的實施取得了穩步進展。相對於預測的遷移時間表，我們總體上按計劃進行。

We have a dedicated team that is assisting with these migrations, and we anticipate we will continue to migrate our existing DOS clients to Ignite over the next couple of years. We also continue to welcome new clients directly onto the Ignite platform.

我們有一個專門的團隊來協助這些遷移，我們預計在未來幾年內將繼續將現有的 DOS 用戶端遷移到 Ignite。我們也繼續歡迎新客戶直接進入 Ignite 平台。

Given the advantages of the Ignite platform related to elastic compute and modularity, we're pleased to offer a flexible menu of options for clients to benefit from these improved efficiencies. These options include expanding their relationship and spend by purchasing additional applications and features.

鑑於 Ignite 平台在彈性運算和模組化方面的優勢，我們很高興為客戶提供靈活的選項選單，以便他們從這些提高的效率中受益。這些選項包括透過購買額外的應用程式和功能來擴大他們的關係和支出。

Immediate savings while maintaining the same functionality through a price reduction as part of the migration or maintaining existing spend and realizing improvements in operations and functionality from the enhanced capabilities of Ignite.

透過作為遷移一部分的降價或維持現有支出並透過 Ignite 的增強功能實現操作和功能的改進，可立即節省成本，同時保持相同的功能。

Over the course of the next few years, we anticipate our clients will continue to follow along the spectrum of these three options. Importantly, during this migration, we will continue to be proactive in cross-selling and upselling additional applications to drive expansion within our existing client base, while also ensuring that we provide compelling value to our clients.

在接下來的幾年中，我們預計我們的客戶將繼續遵循這三個選項。重要的是，在此遷移過程中，我們將繼續積極主動地交叉銷售和追加銷售其他應用程序，以推動現有客戶群的擴張，同時確保為客戶提供令人信服的價值。

With that update, let me turn it back to Dan Burton.

有了這個更新，讓我把它轉回丹伯頓。

Thank you for that update, Dan. Next, I want to highlight a meaningful expansion with a long-standing client, Wisconsin Statewide Health Information Network or WISHIN an independent not-for-profit organization dedicated to bringing the benefits of widespread secure, interoperable health information technology to patients and caregivers throughout Wisconsin.

謝謝你的更新，丹。接下來，我想強調與長期客戶威斯康辛州全州健康資訊網路或WISHIN 的有意義的擴展，這是一個獨立的非營利組織，致力於為整個威斯康辛州的患者和護理人員帶來廣泛的安全、可互通的健康資訊科技的好處。

Has expanded its partnership with Health Catalyst. This multiyear expansion includes migration of technology and services to Ninja Universe help Catalyst Ignite interoperability platform. Ninja Universe is an end-to-end cloud-native platform with applications purpose-built for health information exchanges like WISHIN.

擴大了與 Health Catalyst 的合作夥伴關係。這項多年擴充包括將技術和服務遷移到 Ninja Universe 來幫助 Catalyst Ignite 互通平台。Ninja Universe 是一個端對端雲端原生平台，其應用程式專為 WISHIN 等健康資訊交換而建置。

We are excited and grateful for the opportunity to expand our partnership and look forward to continuing to help support Vision in our shared commitment to improve the health of individuals and communities in Wisconsin.

我們對有機會擴大我們的合作夥伴關係感到興奮和感激，並期待繼續幫助支持 Vision 履行我們改善威斯康辛州個人和社區健康的共同承諾。

Additionally, I'm excited to announce a meaningful new client partnership with Sync Health. Sync Health also recently selected Health Catalyst Ninja Universe solution. Our Ignite interoperability platform. By leveraging Ninja Universe, we are excited to help Sync Health achieve its mission to bring trust and value to help information technology by creating solutions for moving health data forward.

此外，我很高興地宣布與 Sync Health 建立有意義的新客戶合作夥伴關係。Sync Health 最近也選擇了 Health Catalyst Ninja Universe 解決方案。我們的 Ignite 互通平台。透過利用 Ninja Universe，我們很高興能夠幫助 Sync Health 實現其使命，即透過創建推動健康數據發展的解決方案，為資訊科技帶來信任和價值。

Additionally, we are pleased to announce that we recently signed a new Ignite partnership with Ortho Nebraska to provide them with a robust data and analytics infrastructure to support their strategic initiatives. We continue to anticipate a return to double-digit revenue growth.

此外，我們很高興地宣布，我們最近與 Ortho Nebraska 簽署了新的 Ignite 合作夥伴關係，為他們提供強大的數據和分析基礎設施，以支援他們的策略計畫。我們繼續預計收入將恢復兩位數成長。

And approximately 50% growth in adjusted EBITDA in 2025 as compared to 2024, consistent with our prior commentary and even after raising our 2024 adjusted EBITDA guidance. As always, execution against our Q4 bookings target is an important contributor to achieving our 2025 growth expectations.

與 2024 年相比，2025 年調整後 EBITDA 成長約 50%，這與我們先前的評論一致，甚至在提高 2024 年調整後 EBITDA 指引之後也是如此。與往常一樣，執行第四季度的預訂目標是實現 2025 年成長預期的重要貢獻者。

I would also like to share a few comments related to our acquisition strategy, consistent with what we have shared in the past. We are excited to announce we have signed a definitive agreement to acquire enterprise health. Enterprise is a tech-enabled cybersecurity provider, offering an end-to-end cybersecurity risk management platform and services to protect its clients from cyber-attacks.

我也想分享一些與我們的收購策略相關的評論，這與我們過去分享的內容一致。我們很高興地宣布，我們已經簽署了收購 enterprise health 的最終協議。Enterprise 是一家技術支援的網路安全供應商，提供端到端網路安全風險管理平台和服務，以保護客戶免受網路攻擊。

And manage follow-on liability in the event of an incident. Cybersecurity is a critically important area for our clients. and Enterprise is ranked 1 in Class' recent rankings in this category. We look forward to welcoming Enterprise to help catalysts and are excited about how this combination will help drive growth and help us continue to address the areas that are most important to our clients, including a robust security infrastructure as part of our Ignite solution.

並在發生事件時管理後續責任。網路安全對我們的客戶來說是一個至關重要的領域。 Enterprise 在 Class 最近的該類別排名中排名第一。我們期待著 Enterprise 來幫助催化劑，並對這種組合將如何幫助推動成長並幫助我們繼續解決對客戶最重要的領域感到興奮，包括作為我們 Ignite 解決方案一部分的強大的安全基礎設施。

The purchase price is $43 million and will be a combination of cash and equity. We anticipate this acquisition will close by the end of the year, and it will be immaterial to our financial statements in the near term. Over the last several years, we've made a number of strategic acquisitions.

收購價格為 4,300 萬美元，將以現金和股權的方式進行。我們預計此次收購將在今年年底前完成，這對我們近期的財務報表並不重要。在過去的幾年裡，我們進行了許多策略性收購。

We have developed an integration playbook that allows us to efficiently and effectively integrate a new asset into the broader health catalyst solution ecosystem so that we can drive maximum value for our clients and create maximum value for our shareholders.

我們開發了一個整合手冊，使我們能夠有效率、有效地將新資產整合到更廣泛的健康催化劑解決方案生態系統中，以便我們能夠為客戶帶來最大價值，並為股東創造最大價值。

That integration playbook includes cross training sales teams, quickly identifying areas of redundancy and driving towards an optimal cost structure.

這本整合手冊包括交叉培訓銷售團隊、快速識別冗餘領域並推動最佳成本結構。

Further, we have continued to maintain a pipeline of acquisition opportunities that enable us to act as a consolidation platform and support our clients and their improvement goals. We anticipate we will continue to be a consolidator, which will help us deepen our relationships with clients through our cross-selling efforts.

此外，我們繼續維持一系列收購機會，使我們能夠充當整合平台並支持我們的客戶及其改進目標。我們預計我們將繼續成為整合者，這將有助於我們透過交叉銷售努力加深與客戶的關係。

Where, as a reminder, we are more than twice as effective in selling to clients when we have an existing relationship compared to a new prospect that doesn't have a relationship with Health Catalyst. We've heard consistent feedback from our clients that they will continue to focus on consolidating their vendor relationships, and we believe our acquisition strategy positions Health Catalyst well to be one of these long-term strategic partners.

提醒一下，與沒有與 Health Catalyst 建立關係的新潛在客戶相比，與現有關係的客戶進行銷售的效率是其兩倍多。我們從客戶那裡聽到了一致的回饋，他們將繼續專注於鞏固供應商關係，我們相信我們的收購策略使 Health Catalyst 能夠成為這些長期策略合作夥伴之一。

Before turning the time over to Jason, I also want to share that we are honored to announce that Dr. Jill Hoggard Green will be joining the Health Catalyst Board of Directors effective December 1, 2024. Jill is the former Chief Executive Officer of the Queens Health System and has been an extraordinary leader throughout her career.

在將時間交給 Jason 之前，我還想告訴大家，我們很榮幸地宣布 Jill Hoggard Green 博士將於 2024 年 12 月 1 日加入 Health Catalyst 董事會。吉爾是皇后區衛生系統的前首席執行官，在她的職業生涯中一直是一位傑出的領導者。

A registered nurse whose career includes work with oncology, bone marrow transplant units and hospice programs and at leading hospitals, ambulatory and home health services in Utah, Oregon and North Carolina. Jill has dedicated her life to improving patient care. We are excited for Jill to join our Board of Directors and anticipate her contributions will be significant and impactful over the months and years to come.

一名註冊護士，其職業生涯包括在腫瘤科、骨髓移植科和臨終關懷計畫以及猶他州、俄勒岡州和北卡羅來納州的領先醫院、門診和家庭健康服務機構工作。吉爾一生致力於改善病患照護。我們很高興吉爾加入我們的董事會，並預計她的貢獻將在未來幾個月和幾年內產生重大和影響力。

With that, let me turn the call over to Jason. Jason?

接下來，讓我把電話轉給傑森。傑森？

Thank you, Dan. Before diving into our quarterly financial results, I want to echo what Dan shared and say that I am pleased with our third quarter performance. Before jumping into our objective category of scale I would be remiss if I didn't highlight Dan Burton's continued commitment to serve leadership, Dan was recently awarded both a decade of Impact Award by the Women Tech Council and as a health care hero by Utah Business Magazine. We feel fortunate to have Dan leading our company, and it's a great pleasure to work alongside such a tremendous leader.

謝謝你，丹。在深入了解我們的季度財務業績之前，我想回應 Dan 分享的內容，並表示我對我們第三季的業績感到滿意。在進入我們的目標規模類別之前，如果我沒有強調丹伯頓對服務領導力的持續承諾，那就是我的失職。醫療保健英雄雜誌。我們很幸運能有 Dan 領導我們的公司，並且很高興能與這樣一位出色的領導者一起工作。

I will now comment on our strategic objective category of scale.

我現在將評論我們的規模策略目標類別。

For the third quarter of 2024, we generated $76.4 million in total revenue. This represents an outperformance to the midpoint of our guidance and it represents an increase of 3% year-over-year. Technology revenue for the third quarter of 2024 was $48.11 million, representing 6% growth year-over-year.

2024 年第三季度，我們的總收入為 7,640 萬美元。這表明業績超出了我們指引的中點，並且同比增長了 3%。2024年第三季技術營收為4,811萬美元，較去年同期成長6%。

Professional services revenue for Q3, 2024 was $27.7 million, roughly flat year-over-year. For the third quarter of 2024, total adjusted gross margin was 48%, and representing an increase of approximately 70 basis points year-over-year.

2024 年第三季的專業服務收入為 2,770 萬美元，與去年同期基本持平。2024年第三季度，調整後總毛利率為48%，較去年同期成長約70個基點。

In the Technology segment, our Q3, 2024 adjusted technology gross margin was 65%, and a decrease of approximately 330 basis points relative to the same period last year and roughly in line with previously shared expectations.

在科技領域，我們2024年第三季調整後的科技毛利率為65%，較去年同期下降約330個基點，大致符合先前的預期。

This year-over-year performance was mainly impacted by upfront costs associated with the deployment of Ninja Universe, Ignite's interoperability platform without associated revenue, which generally ramps six months or more after contract signing.

這項同比業績主要受到與部署 Ninja Universe 相關的前期成本的影響，Ninja Universe 是 Ignite 的互通平台，沒有相關收入，通常在合約簽訂後六個月或更長時間會增加。

As well as temporary headwinds due to the ongoing migration efforts from DOS to Health Catalyst Ignite. In the Professional Services segment, our Q3 2024 adjusted professional services gross margin was 17%, representing an increase of approximately 550 basis points year-over-year and a decrease of roughly 330 basis points relative to the second quarter of 2024.

以及由於從 DOS 到 Health Catalyst Ignite 的持續遷移工作而帶來的暫時阻力。在專業服務領域，我們2024年第三季調整後的專業服務毛利率為17%，年增約550個基點，較2024年第二季下降約330個基點。

This quarterly performance was primarily driven by a combination of ongoing service costs prior to recognition of revenue on project-based arrangements and slightly more tense resourcing in ambulatory operations.

這一季度業績主要是由基於專案的安排確認收入之前的持續服務成本以及流動業務中稍微緊張的資源共同推動的。

In Q3, 2024, adjusted total operating expenses were $29 million. As a percentage of revenue, adjusted total operating expenses were 38% and which compares favorably to 44% in Q3, 2023 and highlights our continued focus on driving additional operating leverage and cost discipline. Adjusted EBITDA in Q3, 2024 was $7.3 million, exceeding the midpoint of our guidance and representing an increase of $5.3 million relative to the same period last year.

2024 年第三季度，調整後的總營運費用為 2,900 萬美元。調整後的總營運支出佔收入的百分比為 38%，與 2023 年第三季的 44% 相比，這一數字相當不錯，凸顯了我們繼續致力於推動額外的營運槓桿和成本控制。2024 年第三季調整後 EBITDA 為 730 萬美元，超過我們指引的中位數，較去年同期增加 530 萬美元。

This Q3, 2024 adjusted EBITDA result was mainly driven by the quarterly revenue outperformance mentioned previously, along with the timing of some non-headcount expenses that we anticipate will be pushed out to the fourth quarter.

2024 年第三季調整後 EBITDA 結果主要是由前面提到的季度收入表現出色以及我們預計將推遲到第四季度的一些非人員費用的時間推動的。

Our adjusted net income per share in Q3, 2024 was $0.07. The weighted average number of shares used in calculating adjusted basic net income per share in Q3 was 60.4 million shares. Turning to the balance sheet. We are pleased with the strength of our financial position. Which provides us with meaningful financial and strategic flexibility.

2024 年第三季調整後每股淨利為 0.07 美元。用於計算第三季調整後每股基本淨利的加權平均股數為6040萬股。轉向資產負債表。我們對我們的財務狀況感到滿意。這為我們提供了有意義的財務和策略靈活性。

We ended Q3, 2024 with $387.2 million of cash, cash equivalents and short-term investments. Compared to $308.3 million as of Q2, 2024. In terms of liabilities, as of the end of Q3, 2024, the face value of our outstanding convertible notes is a principal amount of $230 million due in April 2025 and the face value of our initial term loan is $125 million.

截至 2024 年第三季度，我們擁有 3.872 億美元的現金、現金等價物和短期投資。相比之下，截至 2024 年第二季為 3.083 億美元。就負債而言，截至 2024 年第三季末，我們未償還可轉換票據的面額為 2025 年 4 月到期的本金額 2.3 億美元，我們的初始定期貸款面值為 1.25 億美元。

As it relates to our financial guidance, for the fourth quarter of 2024, we expect total revenue between $78 million and $84 million, and adjusted EBITDA between $6.8 million and $8.8 million. And for the full year 2024, we expect total revenue between $305 million and $311 million and adjusted EBITDA between $25 million and $27 million, which represents an increase of $1 million to the bottom and top ends of the range.

由於與我們的財務指導相關，我們預計 2024 年第四季的總收入將在 7,800 萬美元到 8,400 萬美元之間，調整後的 EBITDA 在 680 萬美元到 880 萬美元之間。對於 2024 年全年，我們預計總收入在 3.05 億美元至 3.11 億美元之間，調整後 EBITDA 在 2500 萬美元至 2700 萬美元之間，這意味著該範圍的底部和頂部增加了 100 萬美元。

Now let me provide a few additional details related to our Q4, 2024 guidance. We continue to anticipate that our year-over-year total revenue growth will be higher in the second half of 2024, compared to the first half of 2024.

現在讓我提供一些與 2024 年第四季指引相關的其他詳細資訊。我們仍預期 2024 年下半年的總營收年增率將高於 2024 年上半年。

With that said, we have seen a few dynamics that are impacting our second half and Q4 revenue growth, which helped inform our wider-than-typical revenue range for Q4. First, as we mentioned on our prior earnings call, we signed more contracts in the first half of 2024 related to international and Health Information Exchange clients.

話雖如此，我們看到了一些影響我們下半年和第四季營收成長的動態，這有助於我們了解第四季比典型收入範圍更廣泛的情況。首先，正如我們在先前的財報電話會議上所提到的，我們在 2024 年上半年簽署了更多與國際和健康資訊交換客戶相關的合約。

These contracts generally take longer to ramp into revenue than traditional Ignite contracts. These extended timelines can have an impact on our quarterly revenue expectations as the revenue recognition for some of these contracts would could be delayed into early 2025.

與傳統的 Ignite 合約相比，這些合約通常需要更長的時間才能產生收入。這些延長的時間表可能會對我們的季度收入預期產生影響，因為其中一些合約的收入確認可能會推遲到 2025 年初。

Next, we've also seen a few projects that would result in onetime revenue recognition be pushed into early 2025. Where we initially forecasted that these would be finalized in 2024, which would have allowed us to recognize the revenue in 2024.

接下來，我們也看到一些將導致一次性收入確認的項目被推遲到 2025 年初。我們最初預測這些將在 2024 年完成，這將使我們能夠在 2024 年確認收入。

Lastly, as we have mentioned previously, throughout 2024, we have proactively shifted our focus towards the higher-margin solutions in our pipeline, and we are pleased that this mix has contributed to our adjusted EBITDA progress, which is ahead of our initial guidance.

最後，正如我們之前提到的，在整個2024 年，我們主動將重點轉向管道中利潤率更高的解決方案，我們很高興這種組合為我們調整後的EBITDA 進展做出了貢獻，這超出了我們最初的指導。

This shift in our focus has also resulted in lower TAMs bookings than we had initially forecasted. While we are very encouraged with our profitability progress these lower bookings performance in tons has a near-term impact on our Q4 and 2024 revenue.

我們重點的轉變也導致 TAM 預訂量低於我們最初的預測。雖然我們對獲利能力的進步感到非常鼓舞，但預訂量的下降對我們第四季和 2024 年的收入產生了短期影響。

In terms of our adjusted gross margin, we anticipate our Q4 adjusted technology gross margin will be roughly in line with Q3 performance as we continue to focus on migrating our clients from DOS to Ignite and as metauniverse costs continue prior to revenue recognition.

就調整後的毛利率而言，我們預計第四季度調整後的技術毛利率將與第三季度的表現大致一致，因為我們繼續專注於將客戶從DOS 遷移到Ignite，並且元宇宙成本在收入確認之前仍然存在。

In the Professional Services segment, we anticipate that our Q4 adjusted professional services gross margin will be down compared to Q3, 2024. Some of this decline relates to incremental resourcing of TAMs, specifically for ambulatory operations.

在專業服務領域，我們預計第四季調整後的專業服務毛利率將低於 2024 年第三季。這種下降在一定程度上與 TAM 資源的增加有關，特別是門診手術。

Additionally, similar to prior years, there is some seasonality in expenses such as medical claims, which hits disproportionately in Q4. We anticipate these professional services gross margin performance will improve moving into Q1, 2025.

此外，與往年類似，醫療索賠等費用也存在一定的季節性，在第四季受到的影響尤其嚴重。我們預計這些專業服務的毛利率表現將在 2025 年第一季有所改善。

As it relates to our operating expenses, we expect to continue to see material operating leverage moving forward and generally anticipate that quarter-over-quarter performance in our operating expense categories will be roughly flat compared to Q3, 2024.

由於它與我們的營運支出相關，我們預計將繼續看到實質的營運槓桿向前發展，並普遍預期我們的營運支出類別的季度環比表現將與 2024 年第三季大致持平。

We are very encouraged with our profitability progress thus far in 2024, which informed our decision to raise our expectations for adjusted EBITDA for 2024.

我們對 2024 年迄今的獲利進展感到非常鼓舞，這促使我們決定提高 2024 年調整後 EBITDA 的預期。

Additionally, we are encouraged that through Q3, 2024, our operating cash flow was $18.1 million, we anticipate our adjusted free cash flow will be meaningfully positive in 2024 and in 2025. This is a testament to our commitment to financial discipline, operating leverage and profitable growth.

此外，令我們感到鼓舞的是，到 2024 年第三季度，我們的營運現金流為 1,810 萬美元，我們預計調整後的自由現金流將在 2024 年和 2025 年顯著為正。這證明了我們對財務紀律、營運槓桿和獲利成長的承諾。

With that, I will conclude my prepared remarks. Dan?

至此，我將結束我準備好的演講。擔？

Thanks, Jason. In conclusion, I would like to recognize and thank our committed and mission-aligned clients and our highly engaged team members with their dedication and contributions to these results and this progress as well as express my optimism for our future.

謝謝，傑森。最後，我要表揚並感謝我們忠誠且致力於使命的客戶以及我們高度敬業的團隊成員，他們對這些成果和進展的奉獻和貢獻，並對我們的未來表示樂觀。

And with that, I will turn the call back to the operator for questions?

然後，我會將電話轉回給接線生詢問問題？

(Operator Instructions)

（操作員說明）

Jesse Haase with William Blair.

傑西·哈斯與威廉·布萊爾。

Yeah. Jared Haase here. On for Ryan Daniel start up from Blair. Maybe I'll ask one just on the outlook here and kind of the setup for 2025 and a return to double-digit growth. Obviously, you mentioned a couple of times in the prepared remarks kind of the importance of the fourth quarter here as a bookings period to set up next year's performance.

是的。賈里德·哈斯在這裡。瑞安·丹尼爾 (Ryan Daniel) 由布萊爾 (Blair) 首發。也許我會問這裡的前景以及 2025 年的安排以及恢復兩位數成長的情況。顯然，您在準備好的發言中多次提到第四季度作為確定明年業績的預訂期的重要性。

I was just hoping to hear a little bit of color around, I guess, what you're seeing in the pipeline, how those sales opportunities are progressing today sort of relative to what you need to hit that double-digit growth profile in 2025?

我只是希望聽到一些消息，我想，您在管道中看到了什麼，這些銷售機會今天進展如何，與您在 2025 年實現兩位數增長所需的條件相比？

Yeah. Thank you for the question, Jared. So happy to talk about those 3 building blocks as we see them playing out and contributing to that growth profile in 2025 that we did reiterate confidence in achieving. So the first is our new client additions.

是的。謝謝你的提問，賈里德。很高興談論這 3 個組成部分，因為我們看到它們正在發揮作用，並為 2025 年的成長做出貢獻，我們確實重申了對實現這一增長的信心。首先是我們新增的客戶。

And as we mentioned in the prepared remarks, we're on track for in that particular metric, what would be the best year in Health Catalyst history in terms of the net new logos that we add and that new platform subscription clients that we add in the low 20s.

正如我們在準備好的評論中提到的那樣，我們正在朝著這個特定指標邁進，就我們添加的淨新徽標和我們添加的新平台訂閱客戶而言，哪一年將是Health Catalyst 歷史上最好的一年20歲以下。

We also shared that average ARR range, ARR plus NR range of between $400,000 and $1 million on average that would then contribute to that first building block of growth. And we feel good about where we are year-to-date. We feel good about the pipeline that we have, and we're excited to execute well against that pipeline. So that's the first building block.

我們也分享了平均 ARR 範圍（ARR 加上 NR）平均在 40 萬美元到 100 萬美元之間，這將有助於實現成長的第一個基石。我們對今年迄今為止的狀況感覺良好。我們對我們擁有的管道感覺良好，並且我們很高興能夠針對該管道執行良好的操作。這是第一個構建塊。

The second building block is expanding with our existing clients. We're pleased to see continued strength and progress as it relates to our gross client retention rates with churn levels coming down this year meaningfully relative to last year.

第二個組成部分是與我們現有的客戶一起擴展。我們很高興看到持續的實力和進步，因為這與我們的總客戶保留率和客戶流失率相比，今年的客戶流失率顯著下降。

And we're encouraged to see meaningful expansions happening, particularly in areas that are higher profit margin within our pipeline and our portfolio, including tech expansions with existing clients, those non-recurring contracts that are being signed as part of expansions, those nonrecurring contracts do fall outside of the current definition of dollar-based retention, but nonetheless, do directly contribute to that existing client expansion as the second building block of our growth moving forward.

我們很高興看到有意義的擴張發生，特別是在我們的管道和投資組合中利潤率較高的領域，包括與現有客戶的技術擴張、作為擴張的一部分而簽署的那些非經常性合約、那些非經常性合約確實超出了基於美元的保留的當前定義，但儘管如此，確實直接有助於現有客戶的擴張，作為我們未來成長的第二個基石。

And we feel good and that informed our reiteration of that second metric as well coming into the end of the year here. And then the third building block of growth is our inorganic activities. And while each individual acquisition that we've now announced throughout 2024 has been small and contributes immaterially on its own from a revenue perspective. those new applications, those new solutions go into our growth engine, and in particular, cross-sell engine that has proven to be very efficient and very productive and effective where we see a conversion rate that's more than double the conversion rate when we're cross-selling to an existing client where we have a relationship.

我們感覺很好，這讓我們在今年年底重申了第二個指標。成長的第三個基石是我們的無機活動。儘管我們現在在 2024 年宣布的每項收購規模都很小，而且從收入角度來看，其本身的貢獻並不大。這些新的應用程式、這些新的解決方案進入了我們的成長引擎，特別是交叉銷售引擎，它已被證明非常高效、非常高效，我們看到的轉換率是我們之前的轉換率的兩倍多。

And when we're selling at the app layer, that's among the highest profit margin aspects of our portfolio. So you get a double benefit in that third building block of growth, a smaller benefit initially as it relates to any individual acquisition from a revenue contribution, but it flows into that growth engine of cross-sell, which is so effective for us, those three building blocks will contribute to that return to double-digit top line revenue growth in 2025, and we feel good about where we are.

當我們在應用程式層進行銷售時，這是我們產品組合中利潤率最高的方面之一。因此，您在成長的第三個組成部分中獲得了雙重好處，最初的好處較小，因為它與收入貢獻中的任何個人收購有關，但它流入了交叉銷售的成長引擎，這對我們來說非常有效，那些三個基石將有助於在 2025 年恢復兩位數的收入成長，我們對目前的狀況感到滿意。

As is always the case, Q4 is always an important quarter, but we're encouraged by the pipeline that we have by the progression within that pipeline, and that informed our decision to reiterate that confidence level in a return to double-digit revenue growth for next year.

像往常一樣，第四季度始終是一個重要的季度，但我們對該通路內的進展感到鼓舞，這促使我們決定重申對恢復兩位數收入成長的信心水平明年。

Perfect. That's super helpful and appreciate all the color.

完美的。這非常有幫助並且欣賞所有的顏色。

Thanks Jesse.

謝謝傑西。

Elizabeth Anderson with Evercore ISI.

伊麗莎白·安德森與 Evercore ISI。

This is Joanna thought Elizabeth. So, I guess my question is, looking to '25, are you expecting similar bookings mix in '24, like with more bookings coming from international and information exchange customers relative to the traditional health care system base? Thank you.

這是喬安娜心想的伊莉莎白。所以，我想我的問題是，展望 25 年，您是否預計 24 年會出現類似的預訂組合，例如相對於傳統醫療保健系統基礎，來自國際和資訊交換客戶的更多預訂？謝謝。

Yeah, Great question. So we are encouraged to see some really strong performance year-to-date in 2024. Among those 2 groups, our international growth opportunities as well as our health information exchange growth opportunities. And those are meaningful expansions.

是的，好問題。因此，我們很高興看到 2024 年迄今為止的一些非常強勁的表現。在這兩組中，我們的國際成長機會以及我們的健康資訊交流成長機會。這些都是有意義的擴充。

They tend to be higher profit margin expansions, where there's a high proportion of that revenue base that is technology revenue. which we really like. One of the dynamics that is a little bit more challenging, at least in the near term, is those implementations tend to be a little bit more complex, a little bit more involved. That's more of a near-term challenge.

它們往往是更高的利潤率擴張，其中技術收入佔收入基礎的很大一部分。我們真的很喜歡。至少在短期內，更具挑戰性的動態之一是這些實現往往更複雜、更複雜。這更像是一個近期挑戰。

And once we get through that initial implementation, then those clients will behave in many of the same ways as our other clients in terms of their predictability.

一旦我們完成了最初的實施，那麼這些客戶在可預測性方面的行為將與我們其他客戶的許多人相同。

Those are recurring revenue relationships. And so they contribute to the business model overall Health Catalyst of 90-plus percent of our revenue being recurring in nature, and therefore, we have a lot of visibility.

這些是經常性收入關係。因此，它們為業務模式的整體健康催化劑做出了貢獻，我們 90% 以上的收入本質上是經常性的，因此，我們有很高的知名度。

Now as I think about 2025 moving forward, I will share with you, we're encouraged to see a meaningful pipeline of both international opportunities and health information exchange opportunities, among other meaningful opportunities that we see in our pipeline.

現在，當我思考 2025 年的未來時，我將與大家分享，我們很高興看到一系列有意義的國際機會和健康資訊交流機會，以及我們在管道中看到的其他有意義的機會。

And we're encouraged to see some pretty meaningful market leadership in the health information exchange space. We want that to continue. Absolutely, which brings a little bit of a near-term complexity in terms of those initial implementations but brings lots of long-term advantages and lots of similarities to the advantages of the rest of our business in terms of that recurring revenue sticky, really fundamentally important solution set that we're providing that tends to skew a little bit more towards technology revenue.

我們很高興看到健康資訊交換領域出現了一些非常有意義的市場領導地位。我們希望這種情況能繼續下去。當然，這在最初的實施方面帶來了一些近期的複雜性，但在經常性收入黏性方面帶來了許多長期優勢，並且與我們其他業務的優勢有很多相似之處，這確實是根本上的我們提供的重要解決方案集往往更偏向於技術收入。

Jessica Tassan with Piper Sandler.

傑西卡·塔桑和派珀·桑德勒。

Hi guys and thank you for taking the question. I think you've guided to a couple of points of growth in 2025 related to onetime or nonrecurring services contracts. Can you just first off, help us understand, are those related to existing customers or new customers? And then secondarily, are those should we think about those as like international implementations because I guess that would make sense to me.

大家好，感謝您提問。我認為您已經指導了 2025 年與一次性或非經常性服務合約相關的幾個增長點。您能否先幫助我們了解一下，這些是與現有客戶還是新客戶相關？其次，我們是否應該將這些視為國際實施，因為我想這對我來說是有意義的。

And I'm curious in these international deals, are you accompanying the software with services? Or are you again, just I think you sort of mentioned this, but are they strictly software contracts by implementation? Thanks.

我很好奇在這些國際交易中，你們是否附帶軟體和服務？或者你又是，我想你提到了這一點，但它們是嚴格的軟體合約嗎？謝謝。

Yeah, great question, Jess. So as it relates to the first question, those nonrecurring services contracts skew very heavily towards existing client relationships. And they include existing client relationships in the US and internationally. We've really seen an expansion of those non-recurring contracts really related to ongoing initiatives that are focused on clinical, operational and financial improvements.

是的，很好的問題，傑西。因此，由於與第一個問題相關，這些一次性服務合約嚴重偏向現有的客戶關係。其中包括美國和國際上現有的客戶關係。我們確實看到了那些與專注於臨床、營運和財務改進的持續舉措相關的非經常性合約的擴展。

And we found that clients appreciate the budget structure of a non-recurring contract that has a starting point, and an ending point it's easier to get those approved internally because they have a starting point and an ending point and a finite number of dollars that we're asking for.

我們發現，客戶欣賞非經常性合約的預算結構，該結構具有起點和終點，更容易獲得內部批准，因為它們有起點和終點以及有限數量的美元正在要求。

And we prefer it because we see our clients continuing to stack more and more of these nonrecurring contracts on top of each other, such that there's a component of ongoing spend that is reoccurring even though the contract structure itself is not recurring.

我們更喜歡它，因為我們看到我們的客戶繼續將越來越多的非經常性合約堆疊在一起，這樣，即使合約結構本身不是經常性的，持續支出的一部分也會重複出現。

So it is a meaningful expansion that's not just onetime in what we're observing even though the contract structure is nonrecurring in its nature. So we're seeing at across US as well as international. And we are seeing it as an important complement to our technology revenue that, that services piece is often a company. In most cases, there is a services component that's accompanying the tech revenue contracts that we're signing.

因此，這是一個有意義的擴展，在我們所觀察到的情況下，它不僅僅是一次性的，儘管合約結構本質上是非重複性的。因此，我們看到了美國乃至國際各地的情況。我們將其視為我們技術收入的重要補充，該服務部分通常是一家公司。在大多數情況下，我們正在簽署的技術收入合約附帶一個服務組件。

Stephanie Davis with Barclays.

巴克萊銀行的史蒂芬妮戴維斯。

Hi guys. This is Anna Kruszenski, on for Stephanie. I was hoping to be more about enterprise acquisition. And while we know that there is cybersecurity demand given all the breaches in this year, could you talk more about what synergies the asset has with Health Catalyst's core platform and value proposition?? Thank you.

嗨，大家好。我是安娜·克魯森斯基（Anna Kruszenski），替史蒂芬妮發言。我希望更多關注企業收購。雖然我們知道鑑於今年發生的所有違規事件，存在網路安全需求，但您能否多談談該資產與 Health Catalyst 的核心平台和價值主張有何協同作用？謝謝。

Yeah, . Great question, Anna. Thank you for the question. So one of the recurring themes that we try to follow as a strategy and Health Catalyst is that we keep our ear to the ground, and we have ongoing client discussions about areas of most importance to them.

是的，。好問題，安娜。謝謝你的提問。因此，作為策略和健康催化劑，我們試圖遵循的反覆出現的主題之一是我們密切關注實際情況，並且我們不斷與客戶討論對他們最重要的領域。

And security is absolutely on the short list of essentially every every CISO that we talk with among our client base. And that's only been strengthened by some of the recent incidents that have occurred over the last 9 months or so.

安全絕對是我們與客戶群交談的幾乎每個 CISO 的候選名單上的一個問題。過去 9 個月左右發生的一些事件進一步強化了這一點。

So it's a huge area of focus for our health system clients. It's a really important area of need. And for many years, we've been asked at Health Catalyst because we're an important part of the technology infrastructure to provide a level of visibility and reassurance to our clients that we are really strong and robust in terms of our own security infrastructure as it relates to Ignite and before Ignite other instances of the data platform.

因此，這是我們衛生系統客戶關注的重要領域。這是一個非常重要的需求領域。多年來，Health Catalyst 一直向我們提出要求，因為我們是技術基礎設施的重要組成部分，為我們的客戶提供一定程度的可見性並讓他們放心，我們自己的安全基礎設施確實非常強大和穩健，它與Ignite 以及Ignite 之前的資料平台的其他實例相關。

And fortunately, we have a very strong long-term track record. We have been investing very meaningfully, and we have a robust infrastructure and a strong track record. So that was one of the synergies that led us to think a little bit more broadly as our clients would ask us usually a 2-part question. The first part was focused on how well is your security infrastructure supporting your solutions? And then as they got more and more confidence in our own infrastructure.

幸運的是，我們擁有非常出色的長期業績記錄。我們的投資非常有意義，我們擁有強大的基礎設施和良好的業績記錄。因此，這是導致我們思考更廣泛的協同效應之一，因為我們的客戶通常會問我們一個由兩部分組成的問題。第一部分著重於您的安全基礎設施對您的解決方案的支援程度如何？然後他們對我們自己的基礎設施越來越有信心。

A second question was, well, could you help us to strengthen our infrastructure more broadly? And that's what led us to really think about this as an area of complementary strength that we could offer as a real natural extension to what we do with our clients already, both from a technology and a services perspective of providing that robust infrastructure that includes the need for security.

第二個問題是，你能幫助我們更廣泛地加強我們的基礎設施嗎？這就是促使我們真正將其視為互補優勢領域的原因，我們可以將其作為我們已經與客戶所做的事情的真正自然延伸，無論是從技術還是服務的角度來看，提供強大的基礎設施，包括安全需要。

The need for certifications that that then by extension, can provide our clients with an ability to build trust and build and strengthen their own relationships with their members and their patients to showcase that they're providing the right amount of investment.

認證的需求可以擴展，使我們的客戶能夠建立信任，建立和加強他們與會員和患者的關係，以表明他們提供了適量的投資。

They're paying attention to this important area. And that's hard to do on your own as a health system. And so as we dug into this space and as we tested the potential of us offering more to our clients, it was very warmly received.

他們正在關注這個重要領域。身為一個衛生系統，單靠自己很難做到這一點。因此，當我們深入研究這個領域並測試我們為客戶提供更多服務的潛力時，它受到了熱烈的歡迎。

And that really led us and guided us strategically to prioritizing this area. And thus far, we're really encouraged and excited to be able to have an offering to these clients that already rely on Health Catalyst already have a sense of health catalyst natural strength in this area because we've been providing a really secure infrastructure for our data and analytics platform. to be able to naturally extend that to strengthen their own environment from a certification perspective and a risk management perspective.

這確實引導我們並策略性地指導我們優先考慮這一領域。到目前為止，我們非常鼓舞和興奮能夠為這些已經依賴 Health Catalyst 的客戶提供產品，這些客戶已經在該領域擁有健康催化劑的自然力量，因為我們一直在為以下領域提供真正安全的基礎設施：我們的數據和分析平台。能夠自然地擴展它，從認證的角度和風險管理的角度加強自己的環境。

Just And just one comment, Anna, from a financial synergies standpoint, we did mention in the prepared remarks that the revenue contribution related to this acquisition is expected to be immaterial. But one area where we do focus as we're looking at these acquisitions is bringing these targets over at or near adjusted EBITDA breakeven. That does give us opportunity as the company grows and as we are able to cross-sell and improve that sales motion. It gives us opportunity to improve that EBITDA profile.

只是，安娜，從財務協同效應的角度來看，我們確實在準備好的評論中提到，與此次收購相關的收入貢獻預計並不重要。但在考慮這些收購時，我們真正關注的一個領域是使這些目標達到或接近調整後的 EBITDA 損益平衡點。隨著公司的發展以及我們能夠交叉銷售和改進銷售活動，這確實為我們提供了機會。它為我們提供了改善 EBITDA 狀況的機會。

And just to that point, thanks for being that up, Jason. The two areas where we've most commonly found meaningful cost synergies as we have pursued these combinations that we've discussed in the past are in the R&D and in the sales and marketing line items.

就這一點而言，謝謝你的發言，傑森。當我們追求過去討論過的這些組合時，我們最常發現有意義的成本協同效應的兩個領域是研發以及銷售和行銷行項目。

And from an R&D perspective, we really appreciate, and this is the case with enterprise that they have invested meaningfully in developing the technology components of their solution, and it's well built, and it's very positive.

從研發的角度來看，我們真的很感激，企業就是這樣，他們在開發解決方案的技術組件方面進行了有意義的投資，而且它構建得很好，而且非常積極。

We think there's leverage there and synergy there moving forward. And secondly, from a sales and marketing perspective, the fact that we have over 600 existing client relationships and a cross-sell motion that we have is so efficient. It's so much more productive and efficient than knocking on the door from the outside.

我們認為，那裡存在著槓桿作用，並且存在著向前發展的協同作用。其次，從銷售和行銷的角度來看，我們擁有 600 多個現有客戶關係，而且我們的交叉銷售行動非常有效率。這比從外面敲門更有效率。

And so we can leverage that more efficient motion from a cross-sell engine perspective that often provides meaningful sales and marketing leverage as well. And that's part of that integration playbook that we talked about in our prepared remarks that over time, we've gained increased confidence that we can execute well against that integration playbook and really see these acquisitions not only contribute to our growth engine, but also contribute to our profitability engine.

因此，我們可以從交叉銷售引擎的角度利用更有效的行動，這通常也提供有意義的銷售和行銷槓桿。這是我們在準備好的發言中談到的整合策略的一部分，隨著時間的推移，我們越來越有信心，我們可以很好地執行該整合策略，並真正看到這些收購不僅有助於我們的成長引擎，而且還有助於我們的獲利引擎。

John Pinney with Canaccord Genuity.

約翰·平尼 (John Pinney) 與 Canaccord Genuity。

John Pinney on for Richard Close. So I guess you mentioned in the prepared remarks that there's some elevated costs related to TEMS contracts. And I just wanted to get some clarification there. Is that just a onetime costs like for near term to throw some additional resources? Or is this like something that could potentially be longer-term higher costs? And could you comment higher level about how gross margin expansion is going at the installed TEMS base?

約翰·平尼 (John Pinney) 替補理查德·克洛斯 (Richard Close)。因此，我想您在準備好的評論中提到，與 TEMS 合約相關的成本較高。我只是想得到一些澄清。這是否只是一次性成本，例如近期投入一些額外資源？或者這可能會導致長期更高的成本？您能否對已安裝的 TEMS 基地的毛利率擴張發表更高級別的評論？

Yeah, absolutely. So thank you for the question, John. We continue to be encouraged to see meaningful margin improvement in the areas of tech-enabled managed services that we do the most and that includes areas like chart abstraction and low-level data management and analytics where we have been performing those TEMS functions for a decade in some cases with clients.

是的，絕對是。謝謝你的提問，約翰。我們繼續受到鼓舞，看到我們最常做的技術支援的託管服務領域的利潤率顯著提高，其中包括圖表抽象和低階資料管理和分析等領域，我們十年來一直在這些領域執行這些 TEMS 功能在某些情況下與客戶。

We have a lot of experience, and we found that there are meaningful efficiencies, and we've developed that playbook of improved efficiencies that are gained through the use of technology, through the pooling of resources and process improvements.

我們擁有豐富的經驗，我們發現效率是有意義的，我們已經制定了透過使用技術、匯集資源和流程改進來提高效率的手冊。

So we feel really good about those areas where we have the most experience. We are seeing a new area, which is ambulatory operations that we're still learning. We're still coming up the learning curve there. And while we're pleased and encouraged with some of the progress at a fundamental level in terms of the overall operational improvement from a client partnership perspective, we're still working through the cost structure elements. Now this is a smaller part and it's a new area of TEMS.

因此，我們對我們最有經驗的領域感覺非常好。我們看到了一個新領域，即我們仍在學習的門診手術。我們仍處於學習曲線上。雖然我們對從客戶合作夥伴角度來看整體營運改善的一些基本進展感到高興和鼓舞，但我們仍在研究成本結構要素。現在，這是一個更小的部件，它是 TEMS 的一個新領域。

So we're really we've just taken a few steps into that space. But we're still within the first 1.5 years or so of our experience base there, and it's to be expected that that we continue to learn. And we wanted to make sure, first and foremost, that what we were providing as a solution was really providing meaningful value to our clients.

所以我們實際上只是在這個領域邁出了幾步。但我們的經驗基礎仍處於最初 1.5 年左右的範圍內，預計我們會繼續學習。首先，我們希望確保我們提供的解決方案確實為客戶提供了有意義的價值。

And then we'll continue to be focused on learning in this new area. But in those areas of most experience that represents the vast majority of our TEMS solutions and our TEMS client relationships we're encouraged and we're progressing nicely, including through the use of AI, and we're seeing some continued meaningful encouraging cost structure benefits in particular in areas like chart abstraction.

然後我們將繼續專注於這個新領域的學習。但在代表我們絕大多數 TEMS 解決方案和 TEMS 客戶關係的最具經驗的領域，我們受到鼓舞，並且進展順利，包括透過使用人工智慧，我們看到一些持續有意義的令人鼓舞的成本結構尤其是在圖表抽像等領域的好處。

Daniel Grosslight with Citi.

花旗銀行的丹尼爾‧格羅斯萊特。

Hey, This is Luis on for Daniel. Just a quick question. There has been some see facilities closed and other auctions. And you mentioned previously that you defaultsnctions assume the continuation of revenue from Steward? Are there any updates to expectations? And how should we think about the impact of Steward?

嘿，這是丹尼爾的路易斯。只是一個簡單的問題。一些參觀設施已關閉，並進行了其他拍賣。您之前提到過，您的預設功能假設 Steward 會繼續提供收入？預期有任何更新嗎？我們該如何看待 Steward 的影響？

Yeah, I'll share a few thoughts, and then Jason, please share as well. So we are fortunate and grateful to receive to have received really meaningful positive updates there that as Steward has completed the sale of some meaningful ambulatory assets that Health Catalyst was successful in transferring that client relationship and that we were identified as a critical partner.

是的，我會分享一些想法，然後傑森也請分享。因此，我們很幸運也很感激收到了真正有意義的積極更新，Steward 已經完成了一些有意義的流動資產的出售，Health Catalyst 成功地轉移了客戶關係，並且我們被確定為關鍵合作夥伴。

And as such, we did receive a full repayment of all that was owed. I think from a strategy perspective, it is a testament to the must-have importance of the solutions that we provide in the case of Steward Health that Ignite that data platform infrastructure that then powers such important solutions like measures and registries.

因此，我們確實收到了所有欠款的全額償還。我認為從戰略角度來看，這證明了我們在 Steward Health 中提供的解決方案的重要性，它點燃了數據平台基礎設施，然後為措施和登記等重要解決方案提供支援。

That have such a meaningful impact in terms of incentive payments, incentive bonus payments as it relates to quality measures and performance the complexity of providing those measures in the right way with the right combination of data with the right domain expertise so that they can qualify for those incentive payments all informed, I think, the reality that we realized that really positive outcome.

這在激勵支付、激勵獎金支付方面產生瞭如此有意義的影響，因為它與品質衡量標準和績效相關，以正確的方式提供這些衡量標準的複雜性，將數據與正確的領域專業知識正確組合，以便他們有資格獲得我認為，這些獎勵金都說明了我們實現了真正積極成果的現實。

So we're really grateful for that specific example of the importance of our solutions and how that played out at Steward Health even in a really difficult financial situation that we did receive that full repayment of all that was what would you add, Jason?

因此，我們非常感謝這個具體的例子，說明我們的解決方案的重要性，以及即使在財務狀況非常困難的情況下，我們的解決方案在Steward Health 的表現如何，我們確實收到了全額還款，您要補充的是，傑森？

I appreciate the question, Luis, we have strived to be a great partner for Steward over the years and during these challenging few months, of the bankruptcy process. As Dan mentioned, our contract has been assigned to a new party.

我很高興路易斯提出這個問題，多年來，在破產過程中充滿挑戰的幾個月裡，我們一直努力成為 Steward 的優秀合作夥伴。正如丹所提到的，我們的合約已分配給新的一方。

And we're looking forward to that relationship moving forward and continuing the service. So we have continued to include expected revenue related to that ongoing contract in our guidance and in our expectations moving forward. We'll work through the impact of the repayment of the prepetition or pre-bankruptcy receivables balance as part of our Q4 financial statements.

我們期待這種關係向前發展並繼續提供服務。因此，我們繼續將與該正在進行的合約相關的預期收入納入我們的指導和未來的預期中。作為第四季度財務報表的一部分，我們將研究償還申請前或破產前應收帳款餘額的影響。

Sean Dodge with RBC Capital Markets.

加拿大皇家銀行資本市場部的肖恩·道奇。

Hey, good afternoon. This is Thomas Kelliher on for Sean. Just wanted to follow up on Tim's question earlier. Can you give us any indication of the size of the potential like incremental EBITDA dollar contribution remaining within existing clients as these newer contracts kind of ramp to those mature target margins?

嘿，下午好。我是 Thomas Kelliher 替肖恩 (Sean) 發言。只是想跟進蒂姆早些時候的問題。您能否告訴我們潛在的規模有多大，例如隨著這些新合約逐漸達到那些成熟的目標利潤率，現有客戶中剩餘的增量 EBITDA 美元貢獻？

Yeah, Happy to share a few thoughts and then Jason, please also share. So as we've discussed in the past, when we begin a TEMS relationship, we're often starting at a 0% gross margin or somewhere around a 0% gross margin.

是的，很高興分享一些想法，然後傑森也請分享。正如我們過去所討論的，當我們開始建立 TEMS 關係時，我們通常會從 0% 毛利率或 0% 毛利率左右開始。

And over time, as we introduce technology that automates processes that were manual in the past, as we introduce and benefit from other efficiency gains, we see that operating margin or that gross margin grow from 0% in the first year, the first couple of years, up towards our target margin profile of 25%.

隨著時間的推移，隨著我們引入使過去手動流程自動化的技術，隨著我們引入其他效率提升並從中受益，我們看到營業利潤或毛利率從第一年的 0% 開始增長，前幾年年，實現我們25% 的目標利潤率。

Now that was before any of the recent innovations that we've been pursuing as it relates to AI improvements. What we've shared in the past as we have implemented some of the chart abstraction specific AI efficiency gains, we see another 20%, 25% efficiency gain. So that would just be additive to that longer-term gross margin profile of 25% but we're still early in the implementation and most of our AI use cases have been focused on charter abstraction.

那是在我們最近一直在追求的與人工智慧改進相關的任何創新之前。我們過去分享的內容是，當我們實現了一些圖表抽象特定的 AI 效率提升時，我們看到另外 20%、25% 的效率提升。因此，這只是 25% 的長期毛利率的補充，但我們仍處於實施初期，而且我們的大多數人工智慧用例都集中在章程抽像上。

So it's a subsegment of our overall TEMS footprint but it is encouraging for us to see. And we are on track in those areas of most experience that we have in charter traction and analytics across those client relationships where we see a nice progression from a gross margin perspective from that beginning point of 0% up towards that 25 mid- 20s gross margin in years three, four, five of the relationship. What would you add, Jason?

因此，這是我們整個 TEMS 足跡的一部分，但看到這一點對我們來說是令人鼓舞的。我們在客戶關係的包機牽引和分析方面擁有最豐富的經驗，我們在這些領域正走在正軌上，從毛利率的角度來看，我們看到了從0% 的起點到25 世紀20 年代中期毛利率的良好進展。傑森，你會補充什麼？

I think you covered it well, Dan. The only thing I would add is we are still early on those, as Dan mentioned in the previous question, are still early and still learning as it pertains to the ambulatory tens relationships. We did have some incremental resourcing and investment in Q3, which put a little bit of pressure on our professional services gross margin in our third quarter.

我認為你講得很好，丹。我唯一要補充的是，正如丹在上一個問題中提到的那樣，我們還處於早期階段，並且仍在學習，因為它涉及動態十位關係。我們在第三季確實有一些增量資源和投資，這對我們第三季的專業服務毛利率造成了一些壓力。

Thanks for calling.

感謝您的來電。

David Larsen with BTIG.

BTIG 的大衛·拉森 (David Larsen)。

Hi, Dan. Can you give an example or two of what you're seeing in the broader market? It sounds like demand is picking back up. Just any thoughts around labor constraints that may be improved, the impact of inflation and any thoughts on the election here would be great. Thanks very much.

嗨，丹。您能舉出一兩個您在更廣泛的市場中看到的例子嗎？聽起來需求正在回升。只要有關於可能改善的勞動力限制、通貨膨脹的影響以及對這裡選舉的任何想法，那就太好了。非常感謝。

Yeah, absolutely, David. Thank you for the question. So I think we are seeing across the board, general continued improvement back to really pre-pandemic levels of normalcy from an operating margin environment.

是的，絕對是，大衛。謝謝你的提問。因此，我認為我們看到營運利潤率環境全面持續改善，回到了疫情大流行前的正常水平。

And I think the factors that you mentioned, those first 2 factors of of labor constraints and inflation really becoming more manageable for our clients. I think are very they're interrelated and they're very significant improvements, where we're seeing both on the labor and the supply side, that inflation rate coming down from low double digits all the way down to low single digits today. That makes a huge, huge impact on the bottom line of most of our clients.

我認為你提到的因素，即勞動力限制和通貨膨脹的前兩個因素對我們的客戶來說確實變得更容易管理。我認為它們是非常相互關聯的，而且是非常顯著的改進，我們在勞動力和供應方面都看到，通貨膨脹率從低兩位數一直下降到今天的低個位數。這對我們大多數客戶的利潤產生了巨大的影響。

Now our clients are still across a spectrum. But I would share that the vast majority of our clients on that spectrum find themselves in a positive operating margin territory and often approaching what some of the other external sources are presenting like the Kaufman Hall monthly report, where they show operating margins in a pretty healthy range, 3%, 4%, 5%, which for not-for-profits in particular, is certainly a solid performance, and it really allows them to think more holistically about the future, and it provides them with enough reading room to think about innovation, to think about technology innovations, AI innovations.

現在我們的客戶仍然來自各個領域。但我想說的是，我們在該範圍內的絕大多數客戶發現自己處於積極的營業利潤率區域，並且經常接近其他一些外部來源所呈現的情況，例如考夫曼霍爾月度報告，其中他們顯示營業利潤率相當健康3%、4%、5%，特別是對於非營利組織來說，這無疑是一個堅實的表現，它確實讓他們更全面地思考未來，為他們提供了足夠的思考空間關於創新，要思考科技創新、人工智慧創新。

And that's whereas it relates to our Ignite progression, we're really pleased to see many of our clients wanting to leverage the scalability of Ignite to pursue more AI-based use cases that might require a more significant footprint from a scalability perspective.

雖然它與我們的Ignite 進展相關，但我們非常高興看到許多客戶希望利用Ignite 的可擴展性來追求更多基於人工智慧的用例，從可擴展性的角度來看，這些用例可能需要更重要的足跡。

And, so that is certainly encouraging to us. As it relates to the election, as we saw the election play out health care, at least particularly the health care the portion of health care that we play within in terms of data and analytics, technology infrastructure to enable improvement was not a primary focus of the election for either candidate.

這對我們來說無疑是令人鼓舞的。就選舉而言，我們看到選舉涉及醫療保健，至少特別是醫療保健，我們在數據和分析方面所參與的醫療保健部分，促進改進的技術基礎設施並不是我們的主要關注點。的選舉。

And so we don't anticipate a significant impact in the near to midterm as it relates to the election. As it relates to the Ignite migrations. Daniel, anything you would add.

因此，我們預計近期和中期不會對選舉產生重大影響。因為它與 Ignite 遷移有關。丹尼爾，你想補充什麼都可以。

You brought up, Dan, the excitement and enthusiasm around some of the emerging use cases around AI and a lot of our application-oriented solutions kind of tap into that capability, which and we're seeing increased demand and interest in that. And so that's kind of an exciting tailwind for us as we think about our modular capabilities with Ignite, enabling those types of use cases. So yes, I think that was well said.

丹，你提到了圍繞人工智慧的一些新興用例的興奮和熱情，我們的許多面向應用程式的解決方案都利用了這種能力，我們看到對此的需求和興趣不斷增加。因此，當我們考慮 Ignite 的模組化功能以實現這些類型的用例時，這對我們來說是一種令人興奮的順風。所以是的，我認為這說得很好。

Just one more quick follow-up. For '25, what are your EBITDA expectations? Or just what sort of ballpark estimate can be used for perhaps margin expansion it looks like your service gross margin obviously pulled in a little bit. Just any thoughts on margins for '25 would be great? Thank you.

只需再進行一次快速跟進。對於 25 年，您的 EBITDA 預期是多少？或者，什麼樣的大概估計可以用於也許利潤率的擴張，看起來你的服務毛利率明顯下降。只要對 25 年的利潤率有任何想法就太好了？謝謝。

Yeah, We continue thank you for the question, David. We continue to feel confident in our ability to see a meaningful continued progression in our EBITDA, and we're pleased with the track record that the company has demonstrated over the last several years of really meaningful EBITDA progression of 400, 500 basis points per year of margin improvement from an EBITDA perspective, meaningful year-over-year growth here this year with the raise of our EBITDA for this year of another $1 million in EBITDA at the midpoint, we're talking about 135-plus percent year-over-year growth in EBITDA.

是的，我們繼續感謝你的提問，大衛。我們仍然對我們的 EBITDA 取得有意義的持續進展充滿信心，我們對公司在過去幾年中所展現的每年 400、500 個基點的真正有意義的 EBITDA 進展感到滿意從EBITDA 的角度來看，利潤率的改善，今年的同比增長有意義，今年的EBITDA 中點又增加了100 萬美元，我們談論的是同比135% 以上。

When we shared the perspective that even with that increase to our guidance, we still feel confident that we can see EBITDA grow approximately 50% next year on that $26 million base. The reasons that we feel confident and comfortable include at the gross margin leverage perspective, we continue to see meaningful technology growth ramping back up. You see that a little bit in our Q3 results.

當我們分享這樣的觀點時，即使我們的指導有所增加，我們仍然有信心明年 EBITDA 在 2600 萬美元的基礎上增長約 50%。我們感到自信和放心的原因包括從毛利率槓桿的角度來看，我們繼續看到有意義的技術成長回升。您可以從我們第三季的業績中看到這一點。

We've shared that we're seeing a ramp take place as it relates to the second half of this year versus the first half of this year, that's true overall, it's even more true as it relates to our tech growth outpacing our overall company growth.

我們已經分享過，我們看到了成長，因為它與今年下半年和今年上半年有關，總體而言是這樣，更是如此，因為它與我們的技術成長超過了整個公司的成長有關生長。

That's encouraging. I think that's a trend that will continue into 2025. Which means that our mix will skew a little bit more towards technology. That will help that mix shift will help from an overall gross margin perspective for the company. So that's a tailwind that gives us some increased confidence that some of that will drop to the bottom line.

這令人鼓舞。我認為這一趨勢將持續到 2025 年。這意味著我們的組合將更偏向技術。從公司整體毛利率的角度來看，這將有助於混合轉變。因此，這是一輛順風車，讓我們更有信心，其中一些將下降到底線。

The second tailwind that we've been able to execute really well against over the last number of years, is in the operating leverage category. And there's really two primary drivers there. One is R&D, the other is sales and marketing.

過去幾年我們能夠很好地應對的第二個推動因素是營運槓桿類別。實際上有兩個主要驅動因素。一是研發，二是銷售和行銷。

As it relates to R&D, we continue to see real success building out our offshore capabilities, particularly in our India office. It's one of our fastest-growing areas of team member growth, and we're seeing really positive progress as it relates to that. We're going to continue to invest and think that will be a meaningful source of operating leverage in R&D.

在研發方面，我們繼續看到我們的離岸能力建設取得了真正的成功，特別是在我們的印度辦事處。這是我們團隊成員成長最快的領域之一，我們看到了與此相關的真正積極的進展。我們將繼續投資，並認為這將成為研發營運槓桿的重要來源。

And then as it relates to sales and marketing, we continue to see that efficient, highly productive primary growth engine of the cross-sell motion where especially as we add clients through acquisition and through our sales efforts as well. And begin an existing client relationship, our ability to cross-sell in a very effective way is more than 2 times as productive as when we're just knocking on the door from outside.

然後，當它與銷售和行銷相關時，我們繼續看到交叉銷售運動的高效、高產的主要成長引擎，特別是當我們透過收購和銷售努力增加客戶時。在開始建立現有的客戶關係後，我們以非常有效的方式進行交叉銷售的能力比我們從外面敲門時的生產力提高了兩倍以上。

Stop provides meaningful sales and marketing leverage. Each of those items, again, are items that we've already demonstrated over a number of years that we've been able to execute and they inform our confidence even when we raise our EBITDA guide for this year, but we'll still be able to grow it another 50% next year.

Stop 提供了有意義的銷售和行銷槓桿。同樣，這些項目中的每一項都是我們多年來已經證明能夠執行的項目，即使我們提高了今年的 EBITDA 指南，它們也增強了我們的信心，但我們仍然會在明年再增長 50%。

Anything you'd add, Jason?

傑森，你還有什麼要補充的嗎？

Yeah. Yeah, I was just going to tag on with that last point, Dan. It is important to note that we are still expecting to grow adjusted EBITDA by roughly 50% even after the raise on our adjusted EBITDA range by $1 million on both the bottom end and top end. Then the other thing I would note, Dave, is we do anticipate providing additional gross margin color in early early 2025.

是的。是的，我只是想繼續說最後一點，丹。值得注意的是，即使我們的調整後 EBITDA 範圍在底端和頂端均提高了 100 萬美元，我們仍預期調整後 EBITDA 成長約 50%。Dave，我要指出的另一件事是，我們確實預計在 2025 年初提供額外的毛利率。

Thanks very much.

非常感謝。

John Ransom with Raymond James.

約翰·蘭塞姆和雷蒙德·詹姆斯。

Hey, good evening, afternoon. I've always had the opinion that technology is sold, not bought. And so we've been through some cycles where we are doing face-to-face. We're doing Zoom. There's a hybrid world, but you're hiring a new sales rep or as you're talking to your people out the territories, what is the rhythm of meeting with your customers look like now and the kind of hybrid role we are in?

嘿，晚上好，下午好。我一直認為技術是賣的，而不是買的。因此，我們已經經歷了一些面對面的週期。我們正在做變焦。這是一個混合世界，但您正在招募新的銷售代表，或者當您與國外的員工交談時，現在與客戶會面的節奏是什麼樣的，以及我們所處的混合角色是什麼？

Yeah, it's a great question, John. hybrid is a good word for it. I think we have realized, as we came through the pandemic that we have really missed that opportunity to have those face-to-face interactions. And so I think that, coupled with the extreme financial pressure because of inflation that our health system clients found themselves in, we did a lot of face-to-face work.

是的，這是一個很好的問題，約翰。混合這個詞是一個很好的形容詞。我認為，當我們經歷這場大流行時，我們已經意識到我們確實錯過了進行面對面互動的機會。因此，我認為，再加上我們的衛生系統客戶因通貨膨脹而面臨的極端財務壓力，我們做了許多面對面的工作。

And we continue to do meaningful face-to-face work with our clients made a lot of progress there in the back half of 2022 and throughout 2023. We found a good rhythm at Health Catalyst in that hybrid model. where I think having at least a quarterly opportunity with our larger clients to be together face-to-face is really positive.

我們繼續與客戶進行有意義的面對面工作，並在 2022 年下半年和整個 2023 年取得了巨大進展。我們在 Health Catalyst 的混合模型中找到了良好的節奏。我認為至少每季有一次與我們的大客戶面對面交流的機會確實是正面的。

And we use the structure of a quarterly business review with them, truly sit down and be in the same room and talk about what we've accomplished over the last quarter together how we've measured the value of what we've accomplished together and what we're planning to move forward with. That's a very helpful face-to-face series of discussions that deepens the relationship.

我們與他們一起使用季度業務回顧的結構，真正坐下來，在同一個房間裡，一起討論我們在上個季度取得的成就，我們如何衡量我們共同取得的成就的價值，以及我們計劃繼續做什麼。這是一系列非常有幫助的面對面討論，可以加深雙方的關係。

I think in between those quarterly sessions, we found a really good cadence and rhythm in following up virtually with regular contact, regular discussion about how those initiatives are going and I would also share back to some of our earlier commentary, we found that leveraging and just strengthening those existing client relationships of whatever kind we have, even when they're small app layer relationships, in that cross-sell motion is really, really effective.

我認為在這些季度會議之間，我們發現了一個非常好的節奏和節奏，透過定期聯繫、定期討論這些舉措的進展進行虛擬跟進，我還將分享我們之前的一些評論，我們發現利用和只是加強我們現有的任何類型的客戶關係，即使它們是小型應用程式層關係，在交叉銷售活動中確實非常有效。

And so, we're focusing more and more of our investment because it's so efficient and so effective in that cross-sell motion. And again, there's a rhythm there of quite a bit of work that we can do really effectively virtually and then maybe on a quarterly cadence, have a face-to-face component that also strengthens.

因此，我們越來越集中投資，因為它在交叉銷售活動中非常有效率且有效。再說一遍，我們可以在虛擬環境中真正有效地完成相當多的工作，然後也許每季一次，有一個面對面的部分也得到加強。

So Dan, let's say it's a large system, you don't have a relationship with. Where do you get that lead now? Is it word of mouth? And then what are you leading with now as the hook. And then conversely, let's take a long-standing relationship. What are you doing for a longer standing customer today versus where you started?

丹，假設這是一個大型系統，與您沒有任何關係。現在你從哪裡得到這個領先優勢？是口耳相傳嗎？然後你現在用什麼當鉤子。相反，讓我們以長期的關係為例。與您開始時相比，您今天為長期客戶做了什麼？

Yeah, It's a two great scenarios and questions, John. So as it relates to a large system where we don't have a relationship, first of all, that's becoming increasingly rare. As we have grown our installed base both organically and through acquisitions, we have a relationship with the vast majority of the top 100, top 200 health care organizations already.

是的，約翰，這是兩個很棒的場景和問題。因此，由於它涉及到我們沒有關係的大型系統，因此，首先，這種情況變得越來越罕見。隨著我們透過有機方式和收購擴大我們的安裝基礎，我們已經與 100 強、200 強醫療保健組織中的絕大多數建立了合作關係。

So that's already a stronger place to be in. I think what we're trying to do is get better and better. Many of those relationships are just at the apps layer. And so getting better and better at the specific use case that's most adjacent to whatever app they've already bought. Is the cross-sell motion that we're getting better at.

所以這裡已經是一個更強大的地方了。我認為我們正在努力做的是變得越來越好。其中許多關係僅位於應用程式層。因此，他們在與他們已經購買的任何應用程式最接近的特定用例上變得越來越好。是我們越來越擅長的交叉銷售活動。

So if you're a Vitalware client and you're using our rev cycle chargemaster management solution, let's learn how to really pivot adjacent to that and talk about labor management.

因此，如果您是 Vitalware 客戶並且正在使用我們的轉速週期 Chargemaster 管理解決方案，那麼讓我們學習如何真正圍繞該解決方案進行調整併討論勞動力管理。

On the cost management side, it's still within the finance function. Let's make sure that you understand how we can bolt that on in a really positive way and help those individuals really shine up through to the CFO and really showcase the ROI of those solutions.

在成本管理方面，它仍然屬於財務職能範圍。讓我們確保您了解我們如何以真正積極的方式實現這一點，並幫助這些人真正向財務長展示自己，並真正展示這些解決方案的投資報酬率。

So I think that adjacent talk track of cross-sell is a real focus. And I would say that, that is is by extension in a long-staying relationship, the same kind of motion. We just have more things to talk about and more things to leverage in terms of those long-standing relationships our Ignite clients, they often are consuming one or two or three applications already.

所以我認為交叉銷售的相鄰談話軌跡是一個真正的焦點。我想說的是，這就是在長期關係中的延伸，同樣的運動。我們只是有更多的事情要談論，更多的事情可以利用我們的 Ignite 客戶的長期關係，他們通常已經在使用一兩個或三個應用程式。

So we have a few natural cross-sell opportunities to talk. So there's more to talk about and there's probably more of a face-to-face opportunity for us to really dive in and try three or four different options of expansion with them, whereas it's more limited and smaller to start with when it's a single app-only client relationship.

因此，我們有一些自然的交叉銷售機會可以進行交談。因此，有更多的內容可以討論，並且可能有更多的面對面機會讓我們真正深入研究並嘗試三到四種不同的擴展選項，而當它是單一應用程式時，它的範圍更有限且更小-僅限客戶關係。

And last one for me. Is there anything that you wish you could sell to your customers that you don't have the capability in house?

最後一張給我。有沒有什麼東西是您希望出售給客戶但您內部沒有能力的？

Sell to your customers that you don't have the capability in house?

向您的客戶推銷您內部沒有能力？

Well, I would have told you security three to six months ago, John. And I think we're really excited because that always comes up. We try to be good listeners with our clients and in those quarterly business reviews, we always have a segment where we're just listening. Like what keeps you up at night?

好吧，約翰，我會在三到六個月前告訴你安全狀況。我認為我們真的很興奮，因為這種情況總是會出現。我們努力成為客戶的良好傾聽者，在季度業務回顧中，我們總是有一個部分只是傾聽。例如是什麼讓你徹夜難眠？

Security was always on that list. And again, there was a natural strength that we had where our own security infrastructure was really solid, but we didn't have an offering for our client to purchase. And so we're excited to have that adjacency now that we can talk with clients about.

安全性始終在該清單上。再說一遍，我們擁有天然的優勢，我們自己的安全基礎設施非常可靠，但我們沒有可供客戶購買的產品。因此，我們很高興現在可以與客戶討論這種鄰接關係。

Yes,. So maybe recommend double authentication. I probably would have helped billion dollars. All right. Thank you.

是的，。所以也許推薦雙重身份驗證。我可能會幫助十億美元。好的。謝謝。

Thank you, John.

謝謝你，約翰。

Scott Schoenhaus with KeyBanc.

Scott Schoenhaus 與 KeyBanc。

Hey, And I'll be brief here. I know we're going over now here. So again, I think you mentioned in your prepared comments that you're actually being choosy within your pipeline. You focused on higher-margin tech business versus lower margin services business.

嘿，我在這裡簡單說一下。我知道我們現在要過去這裡。再說一次，我認為您在準備好的評論中提到您實際上在管道中很挑剔。您專注於利潤率較高的科技業務，而不是利潤率較低的服務業務。

Just trying to think about how that plays out into 2025 if these end markets continue to be strong and healthy demand for your Ignite platform. You mentioned old revenue growth in that technology could end up being more of a higher growth part of that algorithm.

只是想一下，如果這些終端市場對您的 Ignite 平台的需求持續強勁且健康，那麼到 2025 年，情況會如何發展。您提到該技術的舊收入成長最終可能更多地成為該演算法的更高成長部分。

Just trying to think if you can choose your pipeline, which projects to go after, does that mean we could really see much higher elevation in tech growth versus services for next year? Thank you.

只要想一想，如果你可以選擇你的管道，要進行哪些項目，這是否意味著我們真的可以看到明年技術成長與服務業相比會更高？謝謝。

Yeah, Great comments and questions, Scott. I think you're right, and that's how we think about our growth. Of course, we always want to meet clients where they are, every solution that we sell, we always want to have a really meaningful, measurable ROI.

是的，很好的評論和問題，斯科特。我認為你是對的，這就是我們對成長的看法。當然，我們總是希望滿足客戶的需求，我們銷售的每一個解決方案，我們總是希望有一個真正有意義的、可衡量的投資報酬率。

But if there is an opportunity and there's an openness across our portfolio of offerings, when we're sitting down in that quarterly business review, we would prefer to be talking about the higher-margin parts of our portfolio.

但是，如果有機會並且我們的產品組合具有開放性，那麼當我們坐下來進行季度業務審查時，我們更願意談論我們的投資組合中利潤率較高的部分。

And in some cases and in some financial environment, that full portfolio isn't open. And that was true in the back half of 2022, that was true for a lot of 2023. And at that point, I was really grateful that we had other parts of our portfolio that offer that near-term hard dollar guaranteed cost savings so that there was something for them to buy.

在某些情況和某些金融環境中，完整的投資組合是不開放的。2022 年下半年是這樣，2023 年的大部分時間也是這樣。那時，我真的很感激我們的投資組合中的其他部分可以提供短期硬美元保證成本節約，以便他們有東西可以購買。

Now that tended towards TEMS, for example, and a few other parts of our portfolio and a lot of other parts of the portfolio that just wasn't an openness or an ability to really consider.

例如，現在傾向於 TEMS，以及我們投資組合的其他一些部分，以及投資組合中的許多其他部分，這些部分並不是開放性或真正考慮的能力。

So we're really grateful to be back to a more normal full portfolio discussion. And we are choosing to prioritize those areas that are most profitable. And of course, that also provide a great ROI to our clients. But that's one of the reasons why we've seen overperformance.

因此，我們非常感謝能夠回到更正常的完整投資組合討論。我們選擇優先考慮那些最有利可圖的領域。當然，這也為我們的客戶提供了巨大的投資報酬率。但這就是我們看到表現優異的原因之一。

And areas like tech expansion within our existing client base or areas of new logo additions, which really means can be an existing client that was just at the apps layer that is now adding Ignite. And meaningfully expanding in that way.

諸如我們現有客戶群內的技術擴展或添加新徽標的領域等領域，這實際上意味著可能只是位於應用程式層的現有客戶現在正在添加 Ignite。並以這種方式有意義地擴展。

Those all skew towards more tech. And to your point, you're starting to see that play out from pipeline onto the P&L where in Q3, for example, we shared an overall growth rate. But our tech grew faster than that overall growth trajectory. I think that will continue in Q4, and it could likely continue through into 2025.

這些都傾向於更多的技術。就您的觀點而言，您開始看到這種情況從管道到損益表的影響，例如，在第三季度，我們分享了整體成長率。但我們的技術成長速度超過了整體成長軌跡。我認為這種情況將在第四季度持續下去，並且可能會持續到 2025 年。

We like that. That's a tailwind for us then from a gross margin mix perspective. It's going to provide more of an opportunity for that profitable growth, more of an opportunity for us to get ahead of schedule like we are this year as it relates to our EBITDA performance. And and we believe that drives a lot of fundamental shareholder value

我們喜歡這樣。從毛利率組合的角度來看，這對我們來說是一個順風車。這將為我們的獲利成長提供更多的機會，讓我們有更多的機會像今年一樣提前完成計劃，因為這與我們的 EBITDA 業績相關。我們相信這會帶來許多基本的股東價值

Thank you.

謝謝。

Thanks Scott.

謝謝斯科特。

Stan Berenshteyn with Wells Fargo.

史丹貝倫斯坦與富國銀行。

Thanks for squeezing me in here.Just wanted to quickly follow up on the reiterated comments regarding the new client growth in the so outside of the timing-related impacts you discussed in the prepared remarks, how should we think about the I mean, on the anticipated go live for these clients, displaying here that's about twice as many clients as last year. So any changes in the timing or the pacing on the goal lives here?

感謝您把我擠在這裡。預計這些客戶將上線，這裡展示的客戶數量約為去年的兩倍。那麼目標的時間或節奏有什麼變化嗎？

Yeah, Good question, Stan. So I think one of the factors that we have spoken to in 2024 has been we performed really strongly as it relates to the health information exchange market. Now that has manifested both on the new client side as well as some existing client expansions as well.

是的，好問題，史丹。因此，我認為我們在 2024 年談到的因素之一是我們在健康資訊交換市場的表現非常強勁。現在，這已經體現在新客戶端以及一些現有客戶端擴充功能上。

Those implementations do tend to take a little bit longer and be a little bit more complex when we have a meaningful new client or a large expansion. So that has been factored in 2024. I hope that, that continues that we continue to dominate that subsegment of the market. And so that would and could be a component to the way that we think about and plan for 2025.

當我們有一個有意義的新客戶或大規模擴展時，這些實作確實往往需要更長的時間並且更複雜。所以這已經被考慮到 2024 年了。我希望我們能夠繼續主導該細分市場。因此，這將並且可能成為我們思考和規劃 2025 年的方式的一個組成部分。

Now that tends to be a near-term element where getting to a go-live is one near-term dynamic that affects revenue. But then once we're live, it's recurring revenue ratably recognized much like the rest of our business. And so then it becomes very, very predictable and easier to manage and understand. So I don't think it's a material significant impact.

現在，這往往是一個近期因素，上線是影響收入的一個近期動態。但一旦我們上線，它的經常性收入就會像我們的其他業務一樣被認可。因此，它變得非常非常可預測，並且更易於管理和理解。所以我認為這不會產生重大影響。

And even as we've seen an over representation, a little higher performance than what we had forecasted in that subsegment of our overall portfolio, our pipeline we still see the same dynamics of over 90% of our revenue being recurring in nature, which enables us to have a lot of visibility as to how we see that revenue ramping and displaying throughout the P&L going into next year.

即使我們在整體投資組合的該細分市場中看到了過度代表性，業績略高於我們的預測，但我們的管道仍然看到相同的動態，即超過90% 的收入本質上是經常性的，這使得我們可以清楚地了解我們如何看待明年的收入成長和整個損益表的顯示。

So we still feel a lot of confidence in how we think that will play out. There is a bit on the margin. And that's where you see a little bit wider range to our Q4 revenue guide and our full year revenue guide just because we have a little more in terms of our implementation work than we normally do of those more complex implementations. Anything you'd add, Jason?

因此，我們對最終的結果仍然充滿信心。邊緣有一點。這就是我們第四季度收入指南和全年收入指南的範圍更廣的地方，因為我們在實施工作方面比我們通常對那些更複雜的實施所做的工作要多一些。傑森，你還有什麼要補充的嗎？

You know, The only thing I would add is the time line to deploy a standard Ignite deal is shorter. Then these health information in, universe types of deals, but it would typically take us a couple to a few months to deploy an Ignite deal and ramp that into revenue. So depending on timing of deal closures, that will impact that revenue ramp going into 2025.

您知道，我唯一要補充的是部署標準 Ignite 交易的時間軸更短。然後，這些健康資訊會出現在各種類型的交易中，但我們通常需要幾個月到幾個月的時間才能部署 Ignite 交易並將其轉化為收入。因此，這將影響 2025 年的收入成長，具體取決於交易結束的時間。

And I would also just share as a final comment, we continue to try to keep the focus on making sure that those implementations go really, really well. And we don't want to artificially rush an implementation. And so if in the spirit of the client relationship, it makes more sense for us to take a few extra weeks. And that means some of that revenue pushes into the next quarter. We think that's the right trade to keep the focus on the client relationship. We'll still recognize that revenue. And then after that implementation is complete, that revenue becomes very predictable and very smooth. But we want to make sure that our clients feel great about those complex implementations. So that will continue to be a north star for us.

我還要分享最後的評論，我們將繼續努力將重點放在確保這些實施真正非常順利。我們不想人為地催促實施。因此，如果本著客戶關係的精神，我們多花幾週時間更有意義。這意味著部分收入將進入下個季度。我們認為這是將重點放在客戶關係上的正確交易。我們仍會確認該收入。實施完成後，收入變得非常可預測且非常順利。但我們希望確保我們的客戶對這些複雜的實施感到滿意。因此，這將繼續成為我們的北極星。

Great. Thanks for the power.

偉大的。謝謝你的力量。

Thank you, Stan.

謝謝你，斯坦。

And there are no further questions at this time. I'll turn the floor back over to Dan Burton for additional or closing remarks.

目前沒有其他問題。我將把發言權交還給丹·伯頓（Dan Burton）進行補充或結束語。

All right. Thank you all for your continued interest in health catalyst. We appreciate this opportunity to provide you an update and look forward to keeping in touch in the future. Take care everyone.

好的。感謝大家對健康催化劑的持續關注。我們很高興有機會為您提供最新信息，並期待將來保持聯繫。大家保重。

Thank you. This concludes today's health catalyst. third quarter, 2024 earnings conference call, please disconnect your line at this time and have a wonderful day.

謝謝。今天的健康催化劑到此結束。 2024 年第三季財報電話會議，請此時斷開電話，祝您有美好的一天。