Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ontrak Inc (OTRK, Financial) signed a contract with a prestigious regional health plan in the Northeast, expected to double their current outreach pool.
- The company demonstrated significant cost savings with an existing Medicaid customer, showing $721 per member per month in medical cost savings.
- Ontrak Inc (OTRK) has a strong pipeline with approximately 26 active prospects representing about 15 million members.
- The company successfully launched its Engage program with a new customer, enrolling 58 members.
- Ontrak Inc (OTRK) has improved operational efficiency with AI integration and other advanced systems, preparing them to operate at scale.
Negative Points
- Revenue for the second quarter decreased by 17% year-over-year, primarily due to a decrease in total average enrolled members.
- The company recorded a negative cash flow from operations of $4.5 million in the second quarter.
- Per member per month revenue decreased from $528 in Q2 2023 to $463 in Q2 2024.
- The enrollment rate dropped to 61% in Q2 2024 from 108% in Q1 2024.
- Ontrak Inc (OTRK) anticipates lower per member per month revenue for the remainder of the year due to new pricing strategies and an increase in Engage members.
Q & A Highlights
Q: Do you expect quarter-over-quarter revenue growth starting in the fourth quarter?
A: James Park, CFO, stated that revenue contribution is expected to start in Q4, but it will still be ramping up, with more significant growth anticipated early next year.
Q: How much of the Keep Well Agreement funds have been drawn, and how much is left?
A: James Park, CFO, confirmed that $4.5 million has been drawn from the Keep Well Agreement, leaving $10.5 million available for future draws.
Q: What is the current pro forma debt?
A: James Park, CFO, indicated that the pro forma debt is approximately $6.5 million, including accrued interest.
Q: How many future prospective clients does Ontrak currently have?
A: Mary Osborne, President and Chief Commercial Officer, mentioned that Ontrak has 26 active prospects, representing about 15 million lives.
Q: Has Ontrak started reaching out to Community Care Plan's eligible members in Florida?
A: Mary Osborne confirmed that outreach has begun, and the implementation has been successful, with plans to expand to five regions in Florida by January 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
