Ontrak's Q1 2025 Earnings Call: Contradictions in Revenue Growth, Sales Pipeline, and Financial Position

Revenue growth expectations, sales pipeline and customer conversion, member growth trajectory, prospective customer counts, and cash position clarifications are the key contradictions discussed in Ontrak's latest 2025Q1 earnings call.



Revenue and Enrollment Growth:
- Ontrak reported revenue of $2 million in Q1 2025, reflecting a 25% decrease compared to the same period last year, but ended the quarter with 3,165 enrolled members, nearly double year-over-year.
- The decrease in revenue was due to the loss of a customer, while enrollment growth was driven by new implementations and expansions, particularly with the Engage solution.

Member Engagement and Productivity:
- Ontrak's Engage program had 1,152 members at the end of Q1, contributing to a significant increase in the total enrolled member base.
- Investment in AI-driven technology infrastructure has improved care team productivity, enabling the current enrollment levels with less than half of the employees compared to 2021.

Pipeline Progress and Contract Conversions:
- The company is optimistic about converting active opportunities, such as a large Midwestern Medicaid plan, which could double its run rate revenue in 2025 compared to 2024.
- Successful conversions are expected to be driven by Ontrak's enhanced multi-solution approach and positive feedback from existing partnerships, like Intermountain Health and the Northeast regional plan.