CareCloud Financial & Operational Update; Revises Annual Revenue Guidance From $120M-$122M To ~$117M Vs $120.28M Est.

Author: Benzinga Newsdesk | December 20, 2023 10:06am

CareCloud, Inc. (the "Company" or "CareCloud") (NASDAQ:CCLD, CCLDO, CCLDP))))), a leader in healthcare technology solutions for medical practices and health systems nationwide, has released an update highlighting the following:

 

• Roadmap for Future Growth: CareCloud's stable core business and proprietary end-to-end platform lay the foundation for revenue growth and operational improvements in 2024 and beyond. The Company's strategic focus on innovative solutions, such as AI and cutting-edge technology, position it well for success in the ever-evolving healthcare technology landscape. Additionally, CareCloud's global workforce strengthens its competitive position in the market and ability to scale. The Company previously announced a suspension of dividend payments on its preferred stock. This deferral in monthly payments allows the Company to stabilize its liquidity position and manage compliance with lender loan covenants. The Board of Directors will regularly review and consider the timing to reinstate dividend payments, which are cumulative and continue to accrue, and intends to resume such dividends towards the end of 2024.
  
   
• Free Cash Flow: CareCloud continues to generate positive cash flow from its operations despite facing a slower return to top-line growth than expected in recent months. With the previously announced actions to reduce infrastructure costs and capitalized spending, the Company is executing on its plan targeting improvements in profitability and positive free cash flow in 2024. With regards to the previously communicated guidance for fiscal year 2023 revenue and adjusted EBITDA, we currently expect annual revenue of approximately $117 million, compared to the previous guidance range of $120 - $122 million, primarily impacted by our project-oriented professional business line. We expect adjusted EBITDA will be within the previously announced guidance range of $15 - $17 million.
  
   

A. Hadi Chaudhry, President and Chief Executive Officer of CareCloud stated, "We have recently faced challenges requiring us to make very difficult decisions. We are working aggressively to execute on growth initiatives supporting a plan towards positive free cash next year, solidifying the Company for sustainable success going forward and improving shareholder value."

Posted In: CCLD