Mon, Apr 14, 8:07 PM (12 days ago)
Ontrak, Inc. (OTRK) is a value-based behavioral healthcare company that focuses on engaging and transforming health outcomes for individuals impacted by behavioral health conditions. The company's proprietary Advanced Engagement System uses analytics and predictive modeling to identify connections between behavioral health issues and physical chronic conditions, aiming to improve clinical outcomes and reduce total cost of care. Ontrak's integrated, technology-enabled solutions target members with behavioral conditions that cause or exacerbate chronic medical conditions such as diabetes, hypertension, coronary artery disease, chronic obstructive pulmonary disease, and congestive heart failure. The company operates as one segment in the United States and contracts with leading national and regional health plans and other at-risk payors to make their solutions available to eligible members. Ontrak's financial performance for the year ended December 31, 2024, showed a revenue of $10.8 million, a decrease of 15% compared to $12.7 million in 2023. The company reported a net loss of $25.4 million for 2024, compared to a net loss of $27.9 million in 2023. The gross profit margin decreased to 63% in 2024 from 69% in 2023. Operating expenses decreased by 18% to $24.6 million in 2024 from $29.9 million in 2023. The company's cash flow from operations was $(13.4) million in 2024, an improvement from $(15.5) million in 2023. Ontrak's strategic overview includes a focus on expanding its customer base and enhancing its offering to maximize return on investment for its customers. The company has experienced significant customer acquisitions and expansions, including partnerships with large health systems and regional health plans. However, Ontrak faces risk factors such as the need for additional capital to continue operations, the loss of significant customers, and the need to attract and retain highly skilled personnel. The company's financial condition is precarious, with substantial doubt about its ability to continue as a going concern. Ontrak's market position has seen changes, including the expansion of its WholeHealth+ program to larger commercial populations and the signing of new customer contracts. The company's stock has been delisted from Nasdaq and is now quoted on the over-the-counter market, which could limit investors' ability to trade in the company's securities.