Catasys Inc., which provides predictive analytics to reduce the cost of health insurance claims, reported third-quarter net income of $1.2 million, down 11 percent from the same period a year ago.
The decline in income came despite a 42 percent year-over-year gain in revenue over the first nine months of the year. The Brentwood firm reported on Tuesday that in the nine months ended Sept. 30, its revenue was $4.7 million compared to $3.3 million during the same period in 2016.
The company provides big data-based analytics and predictive modeling to reduce claims costs for health plan members with behavioral health disorders.
While client enrollment of its proprietary OnTrak program has risen 40 percent since July, with a record $1.1 million in billings last month, company officials blamed the third quarter dip to billings being subject to deferred revenue.
Catasys, founded in 2000, has roughly 90 employees and a market cap of $64 million. By midmorning Wednesday, its share price had risen 8 percent to $3.92 following the release of its third-quarter earnings.
Health business reporter Dana Bartholomew can be reached at firstname.lastname@example.org. Follow him on Twitter @_DanaBart.