How did TruBridge's revenue and expenses shift in Q4 2024 compared to previous quarters?

TruBridge's revenue and expenses exhibited distinct patterns in Q4 2024 compared to the preceding quarters: 1. **Revenue Shift**: - **Growth in Financial Health Segment**: The Financial Health revenue segment exhibited robust growth, with core CBO business recording double-digit increases organically. This segment's revenue grew by 5%. - **Patient Care Segment Decline**: In contrast, the Patient Care segment witnessed an 18% decrease in revenue compared to the previous year, primarily attributed to divestitures and the sunsetting of certain products. - **Overall Revenue Growth**: Despite the Patient Care segment's decline, TruBridge reported a total revenue of $83.8 million for Q3, up just over 1% year-over-year. 2. **Expense Analysis**: - **Adjusted EBITDA and Margin Improvement**: The company reported an increased adjusted EBITDA of $13.8 million in Q3, marking a 42% year-over-year growth. Adjusted EBITDA margins expanded to 16.5% this quarter, up from 11.4% in Q1. - **Cash Flow Enhancement**: TruBridge's cash flow from operations improved significantly, reaching $21.8 million year-to-date, an improvement of $8.5 million compared to the previous year. - **Gross Margin Upward Trend**: The company's gross margin improved to 49.5%, an increase of 250 basis points year-over-year. Financial Health Gross Margin rose by 450 basis points to 46.2%, while Patient Care Gross Margin increased by 160 basis points to 55.4%. - **Operating Expense Reduction**: Operating expenses amounted to $39.5 million, representing 47.1% of revenue, a decrease from 53.3% a year ago. 3. **Q4 Guidance and Full-Year Outlook**: - TruBridge projected Q4 revenue between $83.5 million and $85.5 million, with an adjusted EBITDA guidance of $13.5 million to $14.5 million. - The full-year revenue guidance was set at $335 million to $337 million, with an adjusted EBITDA guidance of $49 million to $50 million. In summary, TruBridge's Q4 2024 financials reflect strategic shifts, with strong growth in the Financial Health segment offsetting some declines in the Patient Care segment, leading to improved profitability metrics and cash flow.