Slide 1: Overview Presentation January 2025
© Health Catalyst. Overview Presentation January 2025
Slide 2: Forward-looking statements
© Health Catalyst. This presentation and the accompanying oral presentation, if any, contain forward-looking statements. All statements other than statements of historical fact contained in this presentation, including statements as to future results of operations and financial position, planned pro
Slide 3: Health Catalyst Overview
© Health Catalyst. Health Catalyst Overview 3 Integrate data in a flexible, open, and scalable platform Deliver insights on how to measurably improve Enable and accelerate data- informed improvement Comprehensive Solution Data Platform 1 Applications 2 Services Expertise 3 We are a leading provider
Slide 4: Our mission and flywheel
© Health Catalyst. 4 Our mission is to be the catalyst for massive, measurable, data-informed healthcare improvement Our flywheel represents how we accomplish our mission with each client—our company strategy.
Slide 5: Investment Highlights
© Health Catalyst. Investment Highlights 5 Recognized industry leader in healthcare data & analytics Comprehensive solution: data platform, applications & services expertise Measurable clinical, financial & operational improvements Excellence in team member engagement Attractive operating model and
Slide 6: Broad Client Base Across the Healthcare Delivery Ecosystem
© Health Catalyst. Broad Client Base Across the Healthcare Delivery Ecosystem >1,000 platform & app clients(1) include academic medical centers, integrated delivery networks, community hospitals, large physician practices, ACOs, health information exchanges, health insurers, and other risk-bearing e
Slide 7: Health Catalyst Solutions for Data-informed Improvement
© Health Catalyst. 7 Health Catalyst Solutions for Data-informed Improvement Simplify and focus on five core areas of differentiated client value. With every client and across every solution, ensure that consistent, measurable improvement goals are set, achieved, and communicated regularly Use Case
Slide 8: Measurable Data-Informed Improvement for Focus Areas
© Health Catalyst. 8 Measurable Data-Informed Improvement for Focus Areas Examples of client improvements from all five areas of focus Use Case Areas of Focus Clinical Improvement ▪$22M cost savings and $1.9M in new revenue – improved patient flow* ▪$17.4M AI-enabled patient blood management improve
Slide 9: Highly Differentiated, Comprehensive Solution
© Health Catalyst. Highly Differentiated, Comprehensive Solution 9 Comprehensive solution guiding our clients to greater levels of digital maturity, enabling clinical, financial, and operational improvements 2 3 Consulting Highly specialized Unable to sustain recommended improvements High cost given
Slide 10: Excellence in Team Member & Client Engagement
© Health Catalyst. 10 Excellence in Team Member & Client Engagement Our highly-engaged team members enable strong client engagement, renewal & expansion Recognized More Than 100 Times as a “Best Place to Work” 2015 – 2024 Gallup Team Member Engagement KLAS Client Recognition & Evangelism Score(1) HI
Slide 11: Multiple Strategic Levers to Drive Durable, Long-Term Growth
© Health Catalyst. Multiple Strategic Levers to Drive Durable, Long-Term Growth 11 Add platform clients by cross-selling to app clients Cross-sell Ignite and other apps to >900 App clients(1) Currently have >1,000 Platform + App clients(1) and focused on continuing to expand our client base through
Slide 12: Revenue mix, client growth and retention
© Health Catalyst. $73 $113 $155 43% 51% 54% 58% 61% 64% 63% ~64% ~66% 57% 49% 46% 42% 39% 36% 37% ~36% ~34% 2017 2018 2019 Professional services Technology 46 126 130 >350 >440 >520 >630 >1,000 34 50 65 74 90 98 109 13012 76 65 >300 >350 >425 >525 >900 2017 2018 2019 2020 2021 2022 2023 2024E App C
Slide 13: Preliminary Results & Forward-Looking Targets
© Health Catalyst. Preliminary Results(1) & Forward-Looking Targets(2) Q4 Financials • Revenue of $78.75M to $79.75M (+6%), in prior range, but with a few minor project delays; Tech Revenue of $50.6M to $51.6M (+9%) • Adj. EBITDA(3) of $7.9M (+480%, 10% Margin), above midpoint of range Full Year Fin
Slide 14: Experienced and Visionary Management Team
© Health Catalyst. Kyle Salyers Chief Strategy Officer & SVP of Corporate Development Tenure at Health Catalyst: 10 years Experienced and Visionary Management Team 14 Dave Ross Chief Technology Officer and Chief Product Officer Tenure at Health Catalyst: 4 years Daniel Burton Chief Executive Officer
Slide 15: Health Catalyst is Deploying its Next-Generation Data Platform: Ignite
© Health Catalyst. 15 Health Catalyst is Deploying its Next-Generation Data Platform: Health Catalyst Ignite
Slide 16: Ignite Ecosystem: Core Tools
Ignite Ecosystem: Core Tools © Health Catalyst. 16 IGNITE DATA AND ANALYTICS Data Management Tools and Functions ▪ Source templates ▪ Job scheduling ▪ Data profiling ▪ 24x7 Support ▪ Identity management Data Products ▪ Foundational Expert Data Collections ▪ Terminology ▪ Unified data governance Self
Slide 17: Real-World Applications of AI in Our Solutions
© Health Catalyst. Real-World Applications of AI in Our Solutions 17 Enhancing analytics and visuals to surface valuable insights in BI reports with a single click AI-DRIVEN VISUALIZATION INSIGHTS Ensuring that patients receive timely, targeted communication TARGETED PATIENT COMMUNICATION Amplifying
Slide 18: Footnotes to preliminary results
© Health Catalyst. (1) Preliminary unaudited financial results are inherently uncertain and subject to change as we complete preparation of our consolidated financial statements for the year ended December 31, 2024. During the course of the preparation of our consolidated financial statements and re
Slide 19: Mid-term and Long-term Target Model
© Health Catalyst. 2019 (IPO year) 2020 2021 2022 2023 2024E(3) 2025 Targets(4) 2028 Long-term Targets(4) Total Revenue Growth 38% 22% 28% 14% 7% 3% ~10% ~$500M Tech Revenue Growth 47% 32% 34% 19% 6% 4% ~13% ~2/3 of total revenue Adj. Gross Margin(1) 52% 50% 53% 53% 49% Adj. Operating Expenses(2) S&
Slide 20: Appendix
© Health Catalyst. Confidential and Proprietary. Appendix
Slide 21: Tech-enabled Managed Services long-term contracts
© Health Catalyst. Our Tech-enabled Managed Services arrangements include long-term contracts (~5 years) for both Tech and Pro Services, which create loyal client relationships. These deals are typically large & require limited incremental Opex, which drives Adj. EBITDA margin in line with our long-
Slide 22: High Engagement, Satisfaction & Expansion Leads to Technology Gross Margin Expansion
© Health Catalyst. High Engagement, Satisfaction & Expansion Leads to adjusted technology gross margin expansion 22 41 % 48 % 52 % 50 % 53 % 53 % 49 % 50 % 64 % 66 % 67 % 68 % 69 % 69 % 68 % 67 % 24 % 29 % 35 % 25 % 27 % 24 % 15 % 20 % 2017 2018 2019 2020 2021 2022 2023 Q1-Q3 2024 Total Adjusted Gro
Slide 23: Allina Health: $33M+ in Quality & Operations Improvements
© Health Catalyst. Allina Health: High-Value Data & Analytics Drive $33M+ in Quality & Operations Improvements Data-Driven Insights and Measurable Results Key Opportunities Identified Length of stay | Readmissions | Supply costs Key Improvements ▪ $33M+ in positive margin impact by expense reduction
Slide 24: Carle Health & Health Alliance: $10M+ Population Health Opportunities
© Health Catalyst. Carle Health & Health Alliance: Solution Uncovers $10M+ in Population Health Opportunities Data-Driven Insights and Measurable Results Key Opportunities Identified Cost, utilization, and performance metrics across 10 key population health areas, including: Emergency department uti
Slide 25: MultiCare Health System: $75M+ in Annual Revenue
© Health Catalyst. MultiCare Health System: Operational and Charge Capture Improvements Help Realize $75M+ in Annual Revenue Data-Driven Insights and Measurable Results Key Opportunities Identified Charge capture | Contribution margins | Length of stay Key Improvements ▪ $6.1M net revenue retained,
Slide 26: INTEGRIS: Healthcare.AI Helps Drive Executive Alignment
© Health Catalyst. INTEGRIS: Healthcare.AI Helps Drive Executive Alignment and Decision-making Data-Driven Insights and Measurable Results Key Opportunities Identified Value-based care measures performance | Patient safety targeted mortality and readmissions (e.g., sepsis) Key Improvements ▪ Aligned
Slide 27: Historical M&A Transactions
© Health Catalyst. Historical M&A Transactions 27 Transaction value amount (1) $mm 2019 2020 20212018 HCAT IPO M&A Strategy • Ability to integrate and scale software applications on top of Ignite platform • Broadens value proposition to existing and new clients • Primary focus on applications layer
Slide 28: Health Catalyst Ignite
© Health Catalyst. Confidential and Proprietary. 28 © Health Catalyst. Health Catalyst Ignite Accessible and Usable Data Consumption
Slide 29: Healthcare Data Orchestration: Simplified Tasks
© Health Catalyst. Healthcare Data Orchestration: Simplified 29 Tasks We Handle So You Don’t Have To Healthcare- Specific Source Connectors Identity Resolution for Providers and Patients Healthcare- Specific Data Security Longitudinal View Terminology Standardization Across Systems Healthcare- Speci
Slide 30: Tailwinds and Healthcare.AI
© Health Catalyst. Tailwinds • Health Catalyst will continue to differentiate itself by leveraging cross-industry technologies and layering them on top of healthcare-specific content for end markets • Anticipate AI integration will increasingly play a role in tech enablement and improved efficiency
Slide 31: Ignite Platform Leverages Healthcare.AI (cont'd)
© Health Catalyst. Health Catalyst Ignite Platform Leverages Healthcare.AI (cont’d) High-value analytics enables users to see what is right In front of them 31 • 96% of people draw meaningfully erroneous insights • Improve >10x with Healthcare.AI • True of analysts through board of directors • True
Slide 32: A Single Question Often Requires Integrated Data from Multiple Source Systems
© Health Catalyst. A Single Clinical, Financial, or Operational Question Often Requires Integrated Data from Multiple Source Systems Ignite: ingests, integrates and organizes data sources Data platform Data sources Use cases Financial Operational How do I reduce my hip and knee cost per case? How ar
Slide 33: A Typical Problem Requires Data From Multiple Source Systems: Sepsis Example
© Health Catalyst. A typical Problem Facing a Healthcare Organization Most Often Requires Data From Multiple Source Systems: Sepsis Example Question? EMR (Epic, Cerner, Meditech) How many cases of sepsis did we have last year? Benchmarking (Truven, UHC, Touchstone) Is our sepsis mortality rate above
Slide 34: Client's Path to Greater Digital Maturity
© Health Catalyst. Client’s Path to Greater Digital Maturity with Health Catalyst The healthcare analytics adoption model Pre-Health Catalyst Early implementation Maturity Improve Health & Reduce Variation Level 9 Direct-to-Patient Analytics & Artificial Intelligence Level 8 Personalized Medicine &
Slide 35: Adjusted Gross Profit and Adjusted Gross Margin reconciliation
© Health Catalyst. Year Ended 31-Dec-2021 (in thousands, except percentages) Technology Professional Services Total Revenue $147,718 $94,208 $241,926 Cost of Revenue, Excluding Depreciation and Amortization ($47,516) ($76,838) ($124,354) Gross Profit, Excluding Depreciation and Amortization $100,202
Slide 36: Adjusted EBITDA reconciliation
© Health Catalyst. 9 Months Ended September. 30, Year Ended December 31, (in thousands) 2024 2023 2023 2022 2021 2020 2019 2018 2017 Net Loss ($48,829) ($87,835) ($118,147) ($137,403) ($153,210) ($115,017) ($60,096) ($61,984) ($47,035) Add: Interest and other expense, net ($3,185) ($6,490) ($9,106)
Slide 37: Adjusted Operating Expenses reconciliation
© Health Catalyst. 9 Months Ended September. 30, Year Ended December 31, (in thousands) 2024 2023 2023 2022 2021 2020 2019 2018 2017 Operating expenses $158,394 $195,437 $258,730 $273,192 $261,222 $186,893 $134,461 $112,817 $74,979 Less: Depreciation and amortization ($31,165) ($31,919) ($42,223) ($