STREAMLINE HEALTH SOLUTIONS INC. SEC 10-Q Report

Streamline Health Solutions Inc., a leading provider of healthcare software solutions, has released its Form 10-Q report for the third quarter of fiscal year 2024. The report highlights significant financial and operational developments, reflecting the company's ongoing efforts to navigate industry challenges and improve its financial performance.

Financial Highlights

Total Revenues: $4.419 million for the three months ended October 31, 2024, a decrease of 28% compared to the same period in 2023, primarily due to a previously announced client non-renewal.

Total Revenues: $13.226 million for the nine months ended October 31, 2024, a decrease of 23% compared to the same period in 2023, with new clients partially offsetting the revenue loss.

Operating Loss: $(1.980) million for the three months ended October 31, 2024, compared to $(12.947) million for the same period in 2023, reflecting a significant reduction in operating expenses.

Operating Loss: $(6.444) million for the nine months ended October 31, 2024, compared to $(18.541) million for the same period in 2023, indicating improved cost management.

Net Loss: $(2.476) million for the three months ended October 31, 2024, compared to $(11.911) million for the same period in 2023, showing a substantial reduction in net loss.

Net Loss: $(8.018) million for the nine months ended October 31, 2024, compared to $(17.327) million for the same period in 2023, reflecting improved financial performance.

Net Loss Per Common Share – Basic and Diluted: $(0.61) for the three months ended October 31, 2024, compared to $(3.15) for the same period in 2023, indicating a significant improvement.

Net Loss Per Common Share – Basic and Diluted: $(2.01) for the nine months ended October 31, 2024, compared to $(4.61) for the same period in 2023, showing a reduction in loss per share.

Business Highlights

Revenue Segments: The company experienced a decrease in revenue from its Software as a Service (SaaS) segment, with a decline of $991,000 for the three months and $1,896,000 for the nine months ended October 31, 2024, compared to the prior year periods. This was primarily due to a previously announced client non-renewal, which contributed to a decrease of $1,156,000 and $3,053,000 for the respective periods.

Revenue Segments: Maintenance and support revenue decreased by $192,000 (18%) for the three months and $676,000 (20%) for the nine months ended October 31, 2024, compared to the prior year periods.

Revenue Segments: Professional fees and licenses revenue saw a significant decline of $531,000 (47%) for the three months and $1,437,000 (44%) for the nine months ended October 31, 2024, compared to the prior year periods.

Future Outlook: The company expects relatively flat quarterly revenue through the fourth quarter of fiscal 2024 as it works to deliver on executed agreements to replenish the lost revenue related to the non-renewal of a client contract.

Operational Adjustments: The company executed a Strategic Restructuring in October 2023, which included a reduction in force, resulting in the termination of 26 employees, or approximately 24% of the workforce, to reduce expenses while maintaining the ability to expand its SaaS business.

Future Outlook: The company is seeing improvements in the contract-to-implementation timelines compared to the prior year, despite ongoing industry challenges such as hospital personnel shortages and a backlog of hospital IT projects.

SEC Filing: STREAMLINE HEALTH SOLUTIONS INC. [ STRM ] - 10-Q - Dec. 20, 2024