CareCloud Financial & Operational Update; Revises Annual Revenue Guidance From $120M-$122M To ~$117M Vs $120.28M Est.
Portfolio Pulse from Benzinga Newsdesk
CareCloud, Inc. has revised its annual revenue guidance from $120M-$122M to approximately $117M, which is below the estimated $120.28M. The company attributes the revision primarily to its project-oriented professional business line. Despite this, CareCloud continues to generate positive cash flow and expects to meet its adjusted EBITDA guidance of $15-$17M. The company has suspended dividend payments on its preferred stock to stabilize liquidity and comply with lender loan covenants, with plans to resume dividends towards the end of 2024. CareCloud is focusing on growth initiatives and operational improvements for future success.
December 20, 2023 | 2:06 pm
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NEGATIVE IMPACT
CareCloud has lowered its revenue guidance, which may negatively impact investor sentiment. However, the company maintains its adjusted EBITDA forecast and is generating positive cash flow, indicating some operational stability.
Lowering revenue guidance typically results in negative investor reaction and potential stock price decline. However, maintaining EBITDA guidance and positive cash flow may mitigate some negative impact.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100