Why did OTRK's Q1 2024 EPS fall short?

Ontrak's Q1 2024 EPS fell short due to a combination of factors: 1. **Revenue Shortfall**: Although Ontrak's Q1 2024 revenue was $2.68 million, which was slightly below the analyst's expectation of $2.70 million, the primary reason for the EPS shortfall is the company's gross margin decline. 2. **Gross Margin Decline**: Ontrak's gross margin decreased from 66.5% in Q1 2023 to 63.6% in Q1 2024. This decline indicates higher costs or lower profitability for the same level of revenue, which directly impacts the net income and, consequently, the EPS. 3. **Negative Return on Equity and Net Margin**: The company reported a negative return on equity of 657.19% and a negative net margin of 219.10%. These negative metrics suggest that not only was the company unprofitable during the quarter, but it also generated negative returns for its shareholders and incurred significant losses relative to its revenue. In summary, Ontrak's Q1 2024 EPS fell short primarily due to a decline in gross margin and negative return on equity and net margin. These factors, combined with slightly lower-than-expected revenue, contributed to the company's financial performance during the quarter.