Catasys Inc., a digital health analytics company based in Brentwood, reported a $4 million loss in the third quarter despite record billings and soaring enrollment.
The company reported Nov. 14 a net loss of $4.4 million ($0.27 per share) in the third quarter ended Sept. 30, compared to a net loss of 3.1 million ($0.06 per share) during the same period last year.
Shares in CATS rose 4 percent to $10 the morning after the announcement.
Catasys provides predictive analytics through its OnTrak system to reduce the cost of health insurance claims by determining candidates and treatment for substance use disorder, anxiety and depression. It serves seven health plans in 22 states.
The company reported a third quarter year-over-year enrollment increase of 65 percent, with a record 210 percent jump in year-over-year billings to $6.3 million. It reiterated 2018 billings guidance of $20 million, while it expects to report revenues of at least $35 million next year through accelerated enrollment growth.
Operating expenses in the third quarter were $8.4 million, compared to $4.3 million in the prior-year period largely because of rising costs of healthcare services to support the increasing number of enrolled members as well as about $2.0 million in non-cash stock options.
Catasys, founded in 2000, has roughly 90 employees and a market cap of $159 million.
Health business reporter Dana Bartholomew can be reached at email@example.com. Follow him on Twitter @_DanaBart.