Stock Alert: Health Catalyst Down 10%; Withdraws FY Outlook Due To COVID-19

(RTTNews) - Shares of Health Catalyst Inc. (HCAT) tanked 10% on Wednesday morning trade after the company withdrew its outlook for the full year 2020, due to impact of ongoing COVID-19.

HCAT is currently trading at $23.99, down $2.80 or 10.45%, on the Nasdaq.

Commenting on the impact of the ongoing COVID-19 crisis on the business, the company in an SEC filing said, "We are unable to predict the extent to which the global COVID-19 pandemic may adversely impact our business operations, financial performance, and results of operations."

Further, the company said it anticipates COVID-19 to likely negatively affect its new DOS Subscription Customer additions and Dollar-based Retention Rate over the coming months, likely resulting in a lower 2020 total revenue and adjusted EBITDA compared to its previous guidance.

Health Catalysts now expects revenues for the first quarter of $43.5 million to $45.0 million, outperforming the midpoint of the previously provided range of $42.0 million and $45.0 million.

Analysts polled by Thomson Reuters currently estimate revenues of $42.95 million.

Separately, Health Catalysts said it intends to offer $175M aggregate principal amount of convertible senior notes due 2025 in a private offering to qualified institutional buyers.

Net proceeds will be used to pay the cost of the capped call transactions, repay term loan facility, for working capital and other general corporate purposes.