Global digital health company, UpHealth Inc, faced a decline in its stock prices following the release of its financial results (Q3) for the third quarter ending on September 30, 2023. The announcement, made on Tuesday, triggered a drop in stock value from $0.79 at the close of Tuesday’s trading to an opening price of $0.65 on Wednesday morning, further plummeting to $0.59.
At the time of this publication, UpHealth Inc stock (UPH) has witnessed a decline.
UpHealth Inc
Current Price: $0.59
Change : -0.20
Change (%): (-25.56%)
Volume: 474.9K
Source: Tomorrow Events Market Data
UpHealth Inc Year-To-Date Q3 2023 Financial Results:
UpHealth Inc reported year-to-date revenues of $112.6 million, reflecting a decrease from the third quarter of 2022 revenues at $118.3 million. Revenue distribution by segment was as follows:
– VCI Segment: Year-to-date revenues were $52.8 million, constituting 39% of total revenues. This marked an 11% increase compared to the same period in 2022, driven by growth in both customers and fees in U.S. Telehealth.
– Services Segment: Year-to-date revenues were $47.2 million, representing 51% of total revenues. This reflected a decline from the third quarter of 2022 revenues at $56.7 million, attributed to the strategic sale of IGI and the wind-down of a company within the Behavioral business.
– ICM Segment: Year-to-date revenues were $12.6 million, making up 10% of total revenues. This indicated a decrease from the third quarter of 2022 revenues at $14.2 million, primarily due to a one-time license fee and the loss of a customer in the third quarter of 2023.
Year-to-date gross margin expanded to 54%, up from 44% in the same period of 2022. Gross margins by segment were:
– VCI Segment: Gross margin increased to 56%, reflecting overall business growth.
– Services Segment: Gross margin rose to 49%, despite the strategic sale of IGI.
– ICM Segment: Gross margin decreased to 60%, mainly due to the one-time license fee and the loss of a customer.
Year-to-date loss from operations showed improvement, declining 43% to $84.3 million compared to the same period in 2022. Non-GAAP income from operations, excluding specified costs, was $6.0 million.
Year-to-date net loss attributable to UpHealth improved by 76% to $47.8 million, compared to $195.6 million in the same period of 2022. Non-GAAP net income attributable to UpHealth, excluding specified costs, was $42.5 million.
Net loss per share attributable to UpHealth was $(2.74), compared to $(13.41) in the same period of 2022. Non-GAAP net income per share attributable to UpHealth was $2.43.
Year-to-date Adjusted EBITDA showed significant improvement at $17.2 million, an increase of $15.8 million compared to the same period in 2022.
Despite the stock decline, UpHealth Inc’s financial results indicate positive trends in certain segments and improvements in key financial metrics, showcasing the company’s resilience and strategic decision-making.
Investors and stakeholders will be closely monitoring UpHealth Inc’s future actions and strategic initiatives as the company navigates the evolving landscape of the digital health industry.
