• Health Catalyst Reports Fourth Quarter and Year End 2020 Results

    ソース: Nasdaq GlobeNewswire / 25 2 2021 15:03:00   America/Chicago

    SOUTH JORDAN, Utah, Feb. 25, 2021 (GLOBE NEWSWIRE) -- Health Catalyst, Inc. ("Health Catalyst," Nasdaq: HCAT), a leading provider of data and analytics technology and services to healthcare organizations, today reported financial results for the quarter and year ended December 31, 2020.

    “In the fourth quarter of 2020, I am pleased to share that we achieved strong performance across our business, including exceeding the mid-point of our quarterly and full-year guidance for both revenue and Adjusted EBITDA,” said Dan Burton, CEO of Health Catalyst. “While 2020 represented an extremely challenging year across the healthcare ecosystem, I am proud of the part Health Catalyst played in supporting our customers to ensure they successfully managed through this unprecedented time. In particular, I am pleased with the role that our data and analytics technology played in enabling our customers’ response to the pandemic, as evidenced by the significant increase in our technology usage throughout 2020. In this spirit, we were pleased to receive the news that our Chargemaster Management product, a new revenue analytics product addition through the Vitalware acquisition, was recently ranked as Best in KLAS for 2020. This marks the third year in a row that the Vital-CDM product has achieved this distinction from the KLAS organization.”

    Financial Highlights for the Three and Twelve Months Ended December 31, 2020

    Key Financial Metrics

     Three Months Ended December 31, Year over Year Change Twelve Months Ended
    December 31,    		 Year over Year Change
     2020 2019   2020   2019  
                  
    GAAP Financial Data:(in thousands, except percentages)  (in thousands, except percentages)
    Technology revenue$32,317  $22,582  43% $110,467  $83,975  32%
    Professional services revenue$20,962  $20,919  —% $78,378  $70,966  10%
    Total revenue$53,279  $43,501  22% $188,845  $154,941  22%
    Loss from operations$(38,922) $(13,672) (185)% $(96,125) $(54,865) (75)%
    Net loss$(43,018) $(14,266) (202)% $(115,017) $(60,096) (91)%
    Other Non-GAAP Financial Data:(1)           
    Adjusted Technology Gross Profit$22,089  $15,393  44% $75,666  $56,378  34%
    Adjusted Technology Gross Margin68% 68%    68%  67%  
    Adjusted Professional Services Gross Profit$5,734  $6,877  (17)% $19,358  $24,494  (21)%
    Adjusted Professional Services Gross Margin27% 33%    25%  35%  
    Total Adjusted Gross Profit$27,823  $22,270  25% $95,024  $80,872  17%
    Total Adjusted Gross Margin52% 51%    50%  52%  
    Adjusted EBITDA$(4,694) $(6,488) 28% $(21,287) $(27,363) 22%

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

    Other Key Metrics

     As of December 31,
     2020 2019 2018
    DOS Subscription Customers74  65  50 
          
     Year Ended December 31,
     2020 2019 2018
    Dollar-based Retention Rate102% 109% 107%

    Given our high level of technology revenue predictability, we realized minimal impact on our technology dollar-based retention as a result of COVID-19, however, the financial strain imposed by COVID-19 on a number of our customers has led to a meaningfully lower professional services dollar-based retention in 2020, and thus a lower total Dollar-based Retention Rate, compared to what we have achieved historically.

    Financial Outlook

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

    For the first quarter of 2021, we expect:

    • Total revenue between $53.0 million and $56.0 million, and
    • Adjusted EBITDA between $(3.9) million and $(1.9) million

    For the full year of 2021, we expect:

    • Total revenue between $225.1 million and $228.1 million, and
    • Adjusted EBITDA between $(16.0) million and $(13.5) million

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

    Chair of the Board Transition

    The Board of Directors (the “Board”) of Health Catalyst appointed Timothy G. Ferris, MD, as Chair of the Board effective March 1, 2021. Dr. Ferris has served as a member of Health Catalyst’s Board of Directors since January 2018.

    Since 2017, Dr. Ferris has served as the Chief Executive Officer of the Massachusetts General Physicians Organization, a multi-specialty medical group. Prior to that, he was the Senior Vice President for Population Health at Partners Healthcare and Massachusetts General Hospital, from 2011 to 2017. Dr. Ferris holds a B.A. from Middlebury College, an M.Phil. from Wolfson College, Oxford University, an M.D. from Harvard Medical School, and an M.P.H. from Harvard School of Public Health.

    Dan Burton, CEO of Health Catalyst said, “I am grateful for Dr. Ferris’ alignment to our mission, our cultural attributes, and our operating principles. I anticipate that Dr. Ferris’ unique perspective will continue to add significant insights and ideas during this next phase of our company’s journey as he helps us increasingly appreciate the most significant challenges facing healthcare organizations.”

    Dr. Ferris said he is honored to have been named Chair of Health Catalyst's Board. “The company’s mission-orientation, culture, and commitment to team members and clients are refreshing and drive meaningful and innovative healthcare improvements. I look forward to contributing to the vision for ongoing transformative technological solutions that improve data-informed decision-making for the healthcare ecosystem,” said Dr. Ferris.

    Dr. Ferris was appointed as Chair to succeed Fraser Bullock, who joined the Board as an observer of Health Catalyst in 2012 and has served as Chair since 2014. Bullock will continue to serve on the Board at least through the completion of his current term in June 2022.

    “We want to express our deep gratitude to Fraser for his significant contributions to the company over the past seven years in his role as Chair. His leadership has been instrumental in guiding our growth and development, and we’re grateful to continue to benefit from his insights and experience as a board member,” Burton said.

    Quarterly Conference Call Details

    The company will host a conference call to review the results today, Thursday, February 25, 2021 at 5:00 p.m. E.T. The conference call can be accessed by dialing 1-877-295-1104 for U.S. participants, or 1-470-495-9486 for international participants, and referencing participant code 3180522. A live audio webcast will be available online at https://ir.healthcatalyst.com/. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.

    About Health Catalyst

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

    Available Information

    Health Catalyst intends to use its Investor Relations website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

    Forward-Looking Statements

    This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding our future growth and our financial outlook for Q1 and fiscal year 2021. Forward-looking statements are subject to risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance.

    Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) changes in laws and regulations applicable to our business model; (ii) changes in market or industry conditions, regulatory environment and receptivity to our technology and services; (iii) results of litigation or a security incident; (iv) the loss of one or more key customers or partners; (v) the impact of COVID-19 on our business and results of operations; and (vi) changes to our abilities to recruit and retain qualified team members. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2020 that was filed with the SEC on November 10, 2020 and the Annual Report on Form 10-K for the year ended December 31, 2020 expected to be filed with the SEC on or about February 25, 2021. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update or revise this information unless required by law.


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

     As of December 31,
     2020 2019
    Assets   
    Current assets:   
    Cash and cash equivalents        $91,954  $18,032 
    Short-term investments        178,917  210,245 
    Accounts receivable, net        48,296  27,570 
    Prepaid expenses and other assets        10,632  8,392 
    Total current assets        329,799  264,239 
    Property and equipment, net        12,863  4,295 
    Intangible assets, net        98,921  25,535 
    Operating lease right-of-use assets        24,729  3,787 
    Goodwill        107,822  3,694 
    Other assets        3,606  810 
    Total assets        $577,740  $302,360 
    Liabilities and stockholders’ equity   
    Current liabilities:   
    Accounts payable        $5,332  $3,622 
    Accrued liabilities        16,510  8,944 
    Acquisition-related consideration payable        2,000  2,192 
    Deferred revenue        47,145  30,653 
    Operating lease liabilities        2,622  2,806 
    Contingent consideration liabilities        14,427  — 
    Total current liabilities        88,036  48,217 
    Long-term debt, net of current portion        168,994  48,200 
    Acquisition-related consideration payable, net of current portion        —  1,860 
    Deferred revenue, net of current portion        1,878  1,459 
    Operating lease liabilities, net of current portion        23,669  1,654 
    Contingent consideration liabilities, net of current portion        16,837  — 
    Other liabilities        2,227  326 
    Total liabilities        301,641  101,716 
    Commitments and contingencies   
    Stockholders’ equity:   
    Common stock, $0.001 par value; 43,376,848 and 36,678,854 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively        43  37 
    Additional paid-in capital        1,001,645  811,049 
    Accumulated deficit        (725,650) (610,514)
    Accumulated other comprehensive income        61  72 
    Total stockholders' equity        276,099  200,644 
    Total liabilities and stockholders’ equity        $577,740  $302,360 


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

     Three Months Ended
    December 31,    		 Twelve Months Ended
    December 31,
     2020 2019 2020 2019
    Revenue:       
    Technology        $32,317  $22,582  $110,467  $83,975 
    Professional services        20,962  20,919  78,378  70,966 
    Total revenue        53,279  43,501  188,845  154,941 
    Cost of revenue, excluding depreciation and amortization:       
    Technology(1)        10,456  7,261  35,604  27,797 
    Professional services(1)(3)        16,072  14,416  62,473  47,548 
    Total cost of revenue, excluding depreciation and amortization        26,528  21,677  98,077  75,345 
    Operating expenses:       
    Sales and marketing(1)(3)        14,793  11,705  55,411  47,284 
    Research and development(1)(3)        14,978  13,043  53,517  46,252 
    General and administrative(1)(2)(4)(5)        28,129  8,380  59,240  31,713 
    Depreciation and amortization        7,773  2,368  18,725  9,212 
    Total operating expenses        65,673  35,496  186,893  134,461 
    Loss from operations        (38,922) (13,672) (96,125) (54,865)
    Loss on extinguishment of debt        —  —  (8,514) (1,670)
    Interest and other expense, net        (4,072) (495) (11,572) (3,419)
    Loss before income taxes        (42,994) (14,167) (116,211) (59,954)
    Income tax provision (benefit)        24  99  (1,194) 142 
    Net loss        $(43,018) $(14,266) $(115,017) $(60,096)
    Less: accretion of redeemable convertible preferred stock        —  —  —  180,826 
    Net loss attributable to common stockholders        $(43,018) $(14,266) $(115,017) $(240,922)
    Net loss per share attributable to common stockholders, basic and diluted        $(1.01) $(0.39) $(2.91) $(12.86)
    Weighted-average shares outstanding used in calculating net loss per share attributable to common stockholders, basic and diluted        42,589  36,519  39,541  18,741 
            
    Adjusted net loss(6)        $(6,687) $(7,791) $(26,797) $(33,806)
    Pro forma adjusted net loss per share, basic and diluted(6)        $(0.16) $(0.21) $(0.68) $(0.93)
    Pro forma as adjusted weighted-average number of shares outstanding used in calculating Adjusted Net Loss per share, basic and diluted(6)        42,589  36,519  39,541  36,268 

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

     Three Months Ended
    December 31,    		 Twelve Months Ended
    December 31,
     2020 2019 2020 2019
            
    Stock-Based Compensation Expense:(in thousands) (in thousands)
    Cost of revenue, excluding depreciation and amortization:       
    Technology        $228  $72  $803  $200 
    Professional services        844  374  3,453  968 
    Sales and marketing        3,369  1,173  13,093  3,811 
    Research and development        2,082  1,339  8,069  4,841 
    General and administrative        4,151  1,858  12,539  8,024 
    Total        $10,674  $4,816  $37,957  $17,844 

    (2) Includes acquisition transaction costs as follows:

     Three Months Ended
    December 31,    		 Twelve Months Ended
    December 31,
     2020 2019 2020 2019
            
    Acquisition transaction costs:(in thousands) (in thousands)
    General and administrative        $—  $—  $2,670  $— 

    (3) Includes post-acquisition restructuring costs as follows:

     Three Months Ended
    December 31,    		 Twelve Months Ended
    December 31,
     2020 2019 2020 2019
    Post-Acquisition Restructuring Costs:(in thousands) (in thousands)
    Cost of revenue, excluding depreciation and amortization:       
    Professional services        $—  $—  $—  $108 
    Sales and marketing        —  —  —  306 
    Research and development        —  —  —  32 
    Total        $—  $—  $—  $446 

    (4) Includes the change in fair value of contingent consideration liabilities, as follows:

     Three Months Ended
    December 31,    		 Twelve Months Ended
    December 31,
     2020 2019 2020 2019
            
    Change in fair value of contingent consideration liabilities:(in thousands) (in thousands)
    General and administrative        $15,092  $—  $14,088  $— 

    (5) Includes duplicate headquarters rent expense, as follows:

     Three Months Ended
    December 31,    		 Twelve Months Ended
    December 31,
     2020 2019 2020 2019
            
    Duplicate Headquarters Rent Expense:(in thousands) (in thousands)
    General and administrative        $689  $—  $1,398  $— 

    (6) Includes pro forma adjustments to net loss attributable to common stockholders and the weighted average number of common shares outstanding directly attributable to the closing of our initial public offering on July 29, 2019 as well as certain other non-GAAP adjustments. Refer to the "Non-GAAP Financial Measures—Pro Forma Adjusted Net Loss Per Share" section below for further details.


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

     Twelve Months Ended
    December 31,
    Cash flows from operating activities2020 2019
    Net loss$(115,017) $(60,096)
    Adjustments to reconcile net loss to net cash used in operating activities:   
    Depreciation and amortization18,725  9,212 
    Loss on extinguishment of debt8,514  1,670 
    Amortization of debt discount and issuance costs8,054  1,081 
    Non-cash operating lease expense4,303  3,460 
    Investment discount and premium amortization1,349  (615)
    Provision for expected credit losses863  — 
    Stock-based compensation expense37,957  17,844 
    Deferred tax (benefit) provision(1,273) 40 
    Change in fair value of contingent consideration liabilities14,088  — 
    Other116  (54)
    Change in operating assets and liabilities:   
    Accounts receivable, net(16,448) 127 
    Prepaid expenses and other assets(3,667) (1,596)
    Accounts payable, accrued liabilities, and other liabilities8,243  (86)
    Deferred revenue11,459  77 
    Operating lease liabilities(3,414) (3,248)
    Net cash used in operating activities(26,148) (32,184)
        
    Cash flows from investing activities   
    Purchase of short-term investments(189,526) (256,007)
    Proceeds from the sale and maturity of short-term investments219,069  50,677 
    Acquisition of businesses, net of cash acquired(101,657) — 
    Purchase of property and equipment(7,775) (2,015)
    Capitalization of internal use software(1,442) (384)
    Purchase of intangible assets(1,248) (1,935)
    Proceeds from sale of property and equipment14  62 
    Net cash used in investing activities(82,565) (209,602)
        
    Cash flows from financing activities   
    Proceeds from convertible note securities, net of issuance costs222,482  — 
    Purchase of capped calls concurrent with issuance of convertible senior notes(21,743) — 
    Proceeds from credit facilities, net of debt issuance costs—  47,169 
    Repayment of credit facilities(57,043) (21,821)
    Proceeds from exercise of stock options36,264  2,656 
    Proceeds from employee stock purchase plan4,273  2,978 
    Payments of acquisition-related consideration(1,624) (1,713)
    Proceeds from initial public offering, net of underwriters’ discounts and commissions—  194,649 
    Proceeds from the issuance of redeemable convertible preferred stock, net of issuance costs—  12,073 
    Payments of deferred offering costs—  (4,610)
    Net cash provided by financing activities182,609  231,381 
    Effect of exchange rate on cash and cash equivalents26  6 
    Net increase (decrease) in cash and cash equivalents73,922  (10,399)
        
    Cash and cash equivalents at beginning of period18,032  28,431 
    Cash and cash equivalents at end of period$91,954  $18,032 

    Non-GAAP Financial Measures

    To supplement our financial information presented in accordance with GAAP, we believe certain non-GAAP measures, including Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, Adjusted Net Loss, and Adjusted Net Loss per share, basic and diluted, are useful in evaluating our operating performance. We use this non-GAAP financial information to evaluate our ongoing operations, as a component in determining employee bonus compensation, and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP measures differently or may use other measures to evaluate their performance. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.

    Adjusted Gross Profit and Adjusted Gross Margin

    Adjusted Gross Profit is a non-GAAP financial measure that we define as revenue less cost of revenue, excluding depreciation and amortization and excluding (i) stock-based compensation and (ii) post-acquisition restructuring costs. We define Adjusted Gross Margin as our Adjusted Gross Profit divided by our revenue. We believe Adjusted Gross Profit and Adjusted Gross Margin are useful to investors as they eliminate the impact of certain non-cash expenses and allow a direct comparison of these measures between periods without the impact of non-cash expenses and certain other non-recurring operating expenses. The following is a reconciliation of revenue, the most directly comparable GAAP financial measure, to Adjusted Gross Profit, for the three and twelve months ended December 31, 2020 and 2019:

     Three Months Ended December 31, 2020
     (in thousands, except percentages)
     Technology Professional
    Services    		 Total
    Revenue        $32,317  $20,962  $53,279 
    Cost of revenue, excluding depreciation and amortization        (10,456) (16,072) (26,528)
    Gross profit, excluding depreciation and amortization        21,861  4,890  26,751 
    Add:     
    Stock-based compensation        228  844  1,072 
    Adjusted Gross Profit        $22,089  $5,734  $27,823 
    Gross margin, excluding depreciation and amortization        68% 23% 50%
    Adjusted Gross Margin        68% 27% 52%


     Three Months Ended December 31, 2019
     (in thousands, except percentages)
     Technology Professional
    Services    		 Total
    Revenue        $22,582  $20,919  $43,501 
    Cost of revenue, excluding depreciation and amortization        (7,261) (14,416) (21,677)
    Gross profit, excluding depreciation and amortization        15,321  6,503  21,824 
    Add:     
    Stock-based compensation        72  374  446 
    Adjusted Gross Profit        $15,393  $6,877  $22,270 
    Gross margin, excluding depreciation and amortization        68% 31% 50%
    Adjusted Gross Margin        68% 33% 51%


     Twelve Months Ended December 31, 2020
     (in thousands, except percentages)
     Technology Professional
    Services    		 Total
    Revenue        $110,467  $78,378  $188,845 
    Cost of revenue, excluding depreciation and amortization        (35,604) (62,473) (98,077)
    Gross profit, excluding depreciation and amortization        74,863  15,905  90,768 
    Add:     
    Stock-based compensation        803  3,453  4,256 
    Adjusted Gross Profit        $75,666  $19,358  $95,024 
    Gross margin, excluding depreciation and amortization        68% 20% 48%
    Adjusted Gross Margin        68% 25% 50%


     Twelve Months Ended December 31, 2019
     (in thousands, except percentages)
     Technology Professional
    Services    		 Total
    Revenue        $83,975  $70,966  $154,941 
    Cost of revenue, excluding depreciation and amortization        (27,797) (47,548) (75,345)
    Gross profit, excluding depreciation and amortization        56,178  23,418  79,596 
    Add:     
    Stock-based compensation        200  968  1,168 
    Post-acquisition restructuring costs         —   108   108 
    Adjusted Gross Profit        $56,378  $24,494  $80,872 
    Gross margin, excluding depreciation and amortization        67% 33% 51%
    Adjusted Gross Margin        67% 35% 52%

    Adjusted EBITDA

    Adjusted EBITDA is a non-GAAP financial measure that we define as net loss adjusted for (i) interest and other expense, net, (ii) loss on extinguishment of debt, (iii) income tax (benefit) provision, (iv) depreciation and amortization, (v) stock-based compensation, (vi) acquisition transaction costs, (vii) change in fair value of contingent consideration liabilities, (viii) duplicate headquarters rent expense, and (ix) post-acquisition restructuring costs when they are incurred. We believe Adjusted EBITDA provides investors with useful information on period-to-period performance as evaluated by management and comparison with our past financial performance and is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. The following is a reconciliation of our net loss, the most directly comparable GAAP financial measure, to Adjusted EBITDA, for the three and twelve months ended December 31, 2020 and 2019:

     Three Months Ended
    December 31,    		 Twelve Months Ended
    December 31,
     2020 2019 2020 2019
            
     (in thousands) (in thousands)
    Net loss$(43,018) $(14,266) $(115,017) $(60,096)
    Add:       
    Interest and other expense, net4,072  495  11,572  3,419 
    Loss on extinguishment of debt—  —  8,514  1,670 
    Income tax (benefit) provision24  99  (1,194) 142 
    Depreciation and amortization7,773  2,368  18,725  9,212 
    Stock-based compensation10,674  4,816  37,957  17,844 
    Acquisition transaction costs—  —  2,670  — 
    Change in fair value of contingent consideration liabilities15,092  —  14,088  — 
    Duplicate headquarters rent expense689  —  1,398  — 
    Post-acquisition restructuring costs —   —   —   446 
    Adjusted EBITDA$(4,694) $(6,488) $(21,287) $(27,363)

    Pro Forma Adjusted Net Loss Per Share

    Adjusted Net Loss is a non-GAAP financial measure that we define as net loss attributable to common stockholders adjusted for (i) accretion of redeemable convertible preferred stock, (ii) stock-based compensation, (iii) amortization of acquired intangibles, (iv) loss on debt extinguishment, (v) acquisition transaction costs, (vi) change in fair value of contingent consideration liabilities, (vii) non-cash interest expense related to our convertible senior notes, (viii) duplicate headquarters rent expense, and (ix) post-acquisition restructuring costs. We believe Adjusted Net Loss provides investors with useful information on period-to-period performance as evaluated by management and comparison with our past financial performance and is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance.

    On July 29, 2019, we closed our initial public offering (our IPO) in which we issued and sold 8,050,000 shares (inclusive of the underwriters’ option to purchase an additional 1,050,000 shares) of common stock at $26.00 per share. We received net proceeds of $194.6 million after deducting underwriting discounts and commissions and before deducting offering costs of $4.6 million. Upon the closing of our IPO, all shares of our outstanding redeemable convertible preferred stock converted into 23,151,481 shares of common stock on a one-for-one basis. We have prepared the below adjusted condensed consolidated statement of operations data to present pro forma adjusted net loss per share amounts that will be comparable between the current and prior periods presented as if the conversion of all outstanding shares of redeemable convertible preferred stock and the issuance of the IPO shares had occurred as of the beginning of the prior year comparative periods.

     Three Months Ended December 31, Twelve Months Ended December 31,
     2020 2019 2020 2019
            
    Numerator:(in thousands, except share and per share amounts)
    Net loss attributable to common stockholders$(43,018) $(14,266) $(115,017) $(240,922)
    Add:       
    Accretion of redeemable convertible preferred stock—  —  —  180,826 
    Stock-based compensation10,674  4,816  37,957  17,844 
    Amortization of acquired intangibles7,082  1,659  15,868  6,330 
    Loss on extinguishment of debt—  —  8,514  1,670 
    Acquisition transaction costs—  —  2,670  — 
    Change in fair value of contingent consideration liability15,092  —  14,088  — 
    Non-cash interest expense related to convertible senior notes2,794  —  7,725  — 
    Duplicate headquarters rent expense689  —  1,398  — 
    Post-acquisition restructuring costs—  —  —  446 
    Adjusted Net Loss$(6,687) $(7,791) $(26,797) $(33,806)
    Denominator:       
    Weighted-average number of shares used in calculating net loss per share attributable to common stockholders, basic and diluted42,588,839  36,519,401  39,540,726  18,741,119 
    Pro forma adjustments:       
    Pro forma adjustment to reflect issuance and conversion of redeemable convertible preferred stock to common stock, assuming the conversion took place as of the beginning of the 2019 period—  —  —  13,002,887 
    Pro forma adjustment to reflect issuance of shares of common stock as part of IPO, assuming the issuance took place as of the beginning of the 2019 period—  —  —  4,524,110 
    Pro forma as adjusted weighted-average number of shares used in calculating Adjusted Net Loss per share, basic and diluted42,588,839  36,519,401  39,540,726  36,268,116 
    Pro forma adjusted net loss per share, basic and diluted$(0.16) $(0.21) $(0.68) $(0.93)

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

    Health Catalyst Media Contact:
    Amanda Hundt
    amanda.hundt@healthcatalyst.com 
    +1 (575) 491-0974


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