NantHealth, Inc. (NASDAQ:NH) Q4 2019 Earnings Conference Call - Final Transcript

Feb 28, 2020 • 04:30 pm ET

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NantHealth, Inc. (NASDAQ:NH) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the NantHealth 2019 Fourth Quarter and Full Year Financial Results Conference Call. [Operator Instructions]. After the speaker presentation, there'll be a question and answer session. [Operator Instructions].

I would now like to hand the conference over to your speaker today, Robert Jaffe, Investor Relations for NantHealth. Please go ahead, sir.

Executive
Robert Jaffe

Welcome everyone and thank you for joining us today to discuss NantHealth's 2019 fourth quarter and full-year financial results. On the call, today are Dr. Patrick Soon Shiong, Chief Executive Officer; Ron Louks, Chief Operating Officer; Bob Petrou, Chief Financial Officer, and Dr. Sandeep Reddy, our Chief Medical Officer. This call is being broadcast live at www.nanthealth.com. A playback will be available for three months on NantHealth's website.

I'd like to make the cautionary statement and remind everyone that all of the information discussed on today's call is covered under the Safe Harbor provisions of the Litigation Reform Act. The company's discussion today will include forward-looking information reflecting management's current forecast of certain aspects of the company's future and actual results could differ materially from those stated or implied.

In addition, during the course of this call, we may refer to non-GAAP financial measures that are not prepared in accordance with the US generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. Investors are encouraged to review NantHealth's house release announcing its full 2019 fourth quarter and full-year financial results for the company's reasons for including those non-GAAP financial measures in its financial results announcement. The reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is also contained in the company's earnings press release issued earlier today.

In a moment Ron will provide a brief overview of the quarter and discuss the business lines followed by Bob who will discuss the financial results in more detail. We will then open the call for questions.

With that said I'll turn the call over to Ron Louks. Ron?

Executive
Ronald A .Louks

Thanks, Robert. Good afternoon everyone and welcome to NantHealth's 2019 fourth quarter and full-year financial results conference call. We are very pleased with the significant improvements for the 2019 financial results. For both the 2019 full year and fourth quarter we grew total revenue, gross profit dollars and gross margin percentage, while also lowering operating expenses. These results speak to the dedicated efforts of the entire NantHealth team who have rallied around initiatives to grow our business and drive down expenses.

Comparing the 2019 full year to the 2018 full year total revenue is $96 million an increase of 7% from 2018. Our SaaS revenue increased to 11% to $72.8 million over the prior year. Gross profit climbed to $57.5 million from $45.2 million and gross margin rose to 60% of total revenue from 51% of total revenue. Comparing to the 2019 fourth quarter to the prior-year fourth quarter, total revenue is $24.29 million an increase of 6%. Our SaaS revenue also increased