- **Enrollment milestone achieved**: 3,165 total members as of Q1 2025, nearly doubling year-over-year, driven by new contracts and Engage program expansion.
- **Revenue growth potential**: 2025 run-rate revenue could double if key pipeline opportunities (including a 300,000-member Medicaid plan) are converted.
- **AI-driven efficiency**: Workforce productivity doubled since Q4 2021, enabling cost-effective care delivery.
- **Financial outlook**: Q2 2025 revenue expected to grow 8%–22% sequentially, with $10 million in committed financing to support expansion.
- **Market differentiation**: Pursuing NCQA case management accreditation to strengthen position in government programs.


**【CEO Summary Section】**
- Ontrak achieved a significant milestone with 3,165 total enrolled members as of Q1 2025, a nearly 100% year-over-year increase, driven by new implementations with Intermountain Health and a Northeast regional plan, as well as expansion of the Engage program.
- The company expects to double its 2024 run-rate revenue in 2025 if it successfully converts key pipeline opportunities, including a large Midwestern Medicaid plan with 300,000 members.
- Strategic investments in AI-driven engagement systems have doubled workforce productivity since Q4 2021, enabling more efficient care delivery while maintaining focus on human-centered outcomes.

**【CFO Financial Commentary】**
- Q1 2025 revenue was $2 million, down 25% YoY due to the loss of a major customer, partially offset by new customers and Engage program expansions.
- Gross margin declined to 37% (from 63.6% in Q1 2024) due to the lost customer and a higher mix of lower-revenue Engage members.
- Despite lower revenue per member ($254 vs. $504 in Q4 2024), the Engage program expanded market opportunity by serving previously untapped member populations.
- Q2 2025 revenue is projected at $2.2–$2.6 million, representing an 8%–22% sequential increase.
- Cash reserves stand at $4.1 million, with $10 million in committed short-term financing to support growth initiatives.

**【Pipeline and Market Expansion】**
- Bottom-of-funnel opportunities include four health plans reviewing financial proposals across the Midwest and Southeast, with a focus on Medicare Advantage, Medicaid, and commercial populations.
- Mid-funnel momentum is supported by positive reactions to Ontrak's AI-powered engagement system and demonstrated ROI in reducing medical costs and improving health outcomes.
- The company is pursuing NCQA accreditation for case management, targeting completion in early 2026 to strengthen its position in government programs.


Ontrak, Inc. (OTRK) Q1 2025 Earnings Call Transcript

- **Customer Expansion Success**: 7 new contracts in 14 months, including Medicare Advantage and 6x outreach growth.
- **Pipeline Potential**: $44M+ annualized revenue from 6 active prospects and 20+ in early stages.
- **Financial Challenges**: Q4 revenue down 11% YoY, cash reserves down 41%, but Q2+ recovery expected.
- **Growth Catalysts**: Midwestern Medicaid deal could double revenue, while mid-funnel deals offer 2x+ growth.

**【CEO Key Updates】**
- Secured 3 new regional health plan customers and 4 expansions in 14 months, including Medicare Advantage. 
- WholeHealth+ solution with Intermountain Health enrolled 325 members in 1 month, targeting 2,400 total.
- Northeast regional plan achieved 450+ enrollments post-launch.
- 3-year contract extension with Sentara Health Plans, expanding outreach by 6x YoY.
- Exploring expansion to adolescents and chronic pain patients in Florida.

**【COO Sales Pipeline】**
- 6 active prospects requesting clinical/financial proposals, including:
  - Large Midwestern Medicaid plan (300,000 members) seeking 2x ROI via provider model.
  - 3-state Medicare Advantage plan prioritizing high-acuity behavioral health.
  - Southeastern Medicaid SMI program and West Coast HEDIS gap support requests.
- Total pipeline represents 15+ million lives with $44M+ annualized revenue potential.

**【CFO Financial Highlights】**
- Q4 2024 Revenue: $3.1M (-11% YoY) due to customer loss, offset by new clients.
- Revenue per member: $500/Mo (sequential +12%, YoY -13%).
- Gross Margin: 61% (Q4) vs. 64.6% YoY, expected to dip to mid-50s in 2025.
- Q1 2025 Revenue Outlook: $2M-$2.3M (-36% to -27% QoQ), with recovery expected in Q2.
- Cash reserves: $5.7M (YoY -41%), with $5.5M available on demand notes.
- 2025 Growth Path: $14M-$16M from Midwestern plan, $20M-$28M from mid-funnel opportunities.

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