Streamline Health Solutions, Inc. (STRM), a leading provider of healthcare informa tion technologies, has released its unaudited condensed consolidated financial results for the second quarter of 2023. While the company reported significant revenue growth, it also announced a net loss of $2.5 million for the period, reflecting its ongoing commitment to investing in research and development and servicing its clientele in the healthcare industry.
Streamline Health Solutions reported total revenues of $5.77 million for the three months ended July 31, 2023, compared to $5.99 million for the same period in 2022. For the six months ended July 31, 2023, the company's total revenues amounted to $11.10 million, compared to $11.93 million for the same period last year. These figures reflect continued growth in the adoption of the company's healthcare software as a service (SaaS), maintenance and support, and professional fees and licenses.
Despite the growth in revenue, Streamline Health Solutions reported a net loss of $2.5 million for the second quarter of 2023, compared to a net loss of $3.3 million for the same period in 2022. For the six months ended July 31, 2023, the net loss was $5.4 million, compared to a net loss of $6.1 million for the same period last year. The company attributed these losses to ongoing operating expenses, including costs associated with software development and servicing its clients in the healthcare industry.
Operating Expenses Breakdown
The breakdown of operating expenses for Streamline Health Solutions during the second quarter of 2023 includes:
- Cost of software as a service: $1.89 million
- Cost of maintenance and support: $32,000
- Cost of professional fees and licenses: $1.02 million
- Selling, general, and administrative expenses: $4.11 million
- Research and development: $1.30 million
- Acquisition-related costs: $9,000
These expenses totaled $8.37 million for the quarter, resulting in an operating loss of $2.6 million.
Balance Sheet Highlights
As of July 31, 2023, Streamline Health Solutions reported total assets of $53.32 million. The company's current assets amounted to $8.71 million, including $4.09 million in cash and cash equivalents. Non-current assets, including property and equipment, right-of-use assets, capitalized software development costs, intangible assets, and goodwill, totaled $44.60 million.
Streamline Health Solutions' total liabilities amounted to $22.21 million, with current liabilities accounting for $13.34 million and non-current liabilities totaling $8.88 million. The company's stockholders' equity stood at $31.10 million, reflecting its commitment to long-term growth and value creation.
Cash Flow Analysis
For the six months ended July 31, 2023, Streamline Health Solutions reported a net loss of $5.42 million. The company's cash flow from operating activities showed a net cash outflow of $936,000 during the same period, mainly due to operating losses. Cash used in investing activities amounted to $1.07 million, primarily driven by purchases of property and equipment and capitalization of software development costs. The company used $502,000 in financing activities during the period, including the repayment of bank term loans and payments related to the settlement of employee share-based awards.
Streamline Health Solutions continues to experience strong revenue growth, driven by increased adoption of its healthcare software and services. While the company reported a net loss for the second quarter of 2023, it remains focused on its strategic initiatives, including research and development, to enhance its offerings and deliver long-term value to its shareholders.