MURRAY, Utah - R1 RCM Inc . (NASDAQ:RCM), a prominent provider of technology solutions for healthcare financial performance, reported a dip in first-quarter earnings and adjusted its full-year 2024 revenue forecast downward.
The company's first-quarter revenue increased by 10.7% to $603.9 million, up from the previous year, but fell short of the analyst consensus of $610.94 million. Adjusted EBITDA rose to $152.2 million, up from $142.2 million YoY. However, the company faced a GAAP net loss of $35.1 million, a significant decline from a net income of $1.6 million in the same quarter last year.
The results were influenced by the Change Healthcare (NASDAQ:CHNG) cyberattack, which had a $9.5 million negative impact on both revenue and adjusted EBITDA, and issues arising from a customer bankruptcy. Despite these challenges, CEO Lee Rivas highlighted the robustness of R1's technology platform and the company's operational delivery, which included the onboarding of a major new customer. Rivas emphasized the company's commitment to executing its technology roadmap and delivering value to shareholders.
For the full year of 2024, R1 now anticipates revenue between $2.60 billion and $2.64 billion, a slight decrease from the analyst consensus of $2.644 billion. The updated guidance accounts for the ongoing effects of the Change Healthcare cyberattack on revenue, including the timing of collections, claims inflows, and the achievement of key performance indicators, as well as elevated expenses to support customers.
The company did not provide a specific percentage for stock movement, but the revised guidance suggests a less optimistic outlook for the year ahead. This adjustment reflects the financial impact of the cyberattack and customer bankruptcy on R1's first-quarter performance and expectations for the remainder of the year.
R1 RCM's management is focusing on strategic alignment with customer business needs and measurable shareholder results, as they navigate through the repercussions of the cyberattack and other challenges. The company's resilience and strategic responses to these adversities will be closely watched by investors and industry observers alike.
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