Catasys (CATS) Misses Q1 EPS by 8c, Miss on Revenues

Catasys (NASDAQ: CATS) reported Q1 EPS of ($0.27), $0.08 worse than the analyst estimate of ($0.19). Revenue for the quarter came in at $1.9 million versus the consensus estimate of $3.35 million.

• Q1 2018 Record Billings of $3 Million, Up 33% Year over Year and Up 20% from Q4 Excluding Savings Share
• Enrolled 933 New Members in Q1 2018, Up 65% from New Members Enrolled in Q4 2017
• Achieved $2.3 Million in Billings in April 2018, Highest Monthly Billings in Company’s History
• Company Reiterates 2018 Billings Guidance of $20.0 Million
• Outreach Pool Nearing Approximately 36,000, 44% Increase from End of 2017

Management Commentary

Mr. Rick Anderson, President and COO of Catasys, stated, “Enrollment trends continued their positive trajectory as we entered 2018, resulting in higher billings in the first quarter. With our outreach pool of eligible members continuing to increase, we anticipate steady growth in enrollments in the coming quarters. During the three months ended March 31, 2018, we expanded and launched several of our programs with existing and new health insurance partners. Our expansions of OnTrak in Illinois further validate this program’s ability to improve member health and lower healthcare costs for our health plan partners. During the quarter, we also launched enrollment of the OnTrak solution specifically addressing substance use disorders with a leading national health plan partner in 16 states, further increasing our outreach pool of eligible members. We expect to see additional program expansions with existing health plan partners, as well as enrollment launches with new partners as we progress further into 2018. We anticipate these expansions and launches to provide the Company’s primary business growth drivers in 2018.”

Outlook for 2018

Mr. Terren Peizer, Chairman and CEO of Catasys, stated, “Billings for the first quarter of 2018 were in line with our expectations, and in April, we significantly exceeded our internal projections, as a result of strong enrollment. With ongoing program expansions and enrollment launches, we are cautiously optimistic that our outreach pool of eligible members will expand significantly throughout the year. Commensurate with this outreach expansion, we expect enrollment growth will continue to accelerate as the year progresses. We will continue to invest in the expansion of our platform, as well as data-driven analytics and artificial intelligence capabilities, to effectively serve a growing customer base, further driving revenue growth.”

For earnings history and earnings-related data on Catasys (CATS) click here.

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