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Letter to Medical Transcription Billing Shareholders

Jul. 17, 2017 7:30 AM ETCareCloud, Inc. (CCLD)2 Comments
Bill Korn profile picture
Bill Korn


  • First half 2017 revenue was approximately $16 million – an increase of approximately 55% over the first half of 2016.
  • Q2 2017 adjusted EBITDA was positive, likely marking our highest positive adjusted EBITDA in our history as a public company.
  • Q2 2017 GAAP net loss was significantly lower than the Q1 2017 net loss, with almost 90% of the Q2 net loss attributable to non-cash amortization and depreciation.
  • MTBC ended Q2 with approximately $5.8 million cash on our balance sheet.
  • MTBC is well positioned to meet or exceed our full-year 2017 guidance of $30-31 million of revenue with $2.0-2.5 million of positive adjusted EBITDA.


The first half of 2017 was a breakthrough period for Medical Transcription Billing Corp. (Nasdaq: MTBC). Above are some highlights of what we expect to officially report on August 3, after our independent accountants review our financial statements for the second quarter.

We are very grateful to our common shareholders who have enthusiastically responded to the success of our strategy, and the investors in our non-convertible Series A Preferred Stock who purchased an additional $7.4 million of our preferred stock in a follow-on offering in late June.

Our successful Q2 capital raise and transition to positive adjusted EBITDA, which will lead to positive cash flow from operations, are empowering us to further strengthen our balance sheet as we increase cash, reduce debt, and invest in growth initiatives. These internal achievements come at a great time, since we view the industry as being at an inflection point that presents significant opportunities to MTBC.

During the first half of 2017, we observed a continued acceleration in the transformation of the regulations, business models and insurance reimbursement structures that form the framework of the healthcare industry, and these transformations are driving healthcare providers to our solution. These changes challenge the near- and long-term viability of practicing medicine and obtaining insurance reimbursement without a strong technology partner and support a paradigm shift to a comprehensive solution, such as the one we provide.

During the most recent quarter, we announced the launch of MTBC WebSoft – the newest addition to our leading cloud-based healthcare IT platform which supports scalability, acquisition integration, and margin expansion – and the successful phase one launch of our next-generation, voice-enabled electronic health records solution, talkEHR. Our global team of approximately 250 software development and technology professionals is ensuring that our platform remains out-front and that we can leverage the

This article was written by

Bill Korn profile picture
Chief Financial Officer of CareCloud, Inc. (Nasdaq: MTBC). Successfully completed an initial public offering, 15 public non-convertible preferred stock offerings (Nasdaq: MTBCP), credit facilities with Silicon Valley Bank and Opus Bank, and 17 acquisitions during the last 7 years.Member of the Board of Directors and Chairman of the Audit Committee for Jerash Holdings (US), Inc. (Nasdaq: JRSH), and member of the Board of Directors, Chairman of the Audit Committee and corporate secretary for siParadigm Diagnostic Informatics.Seven-time Chief Financial Officer and former IBM executive with more than 35 years of experience managing fast growth businesses.Bachelor’s degree in Economics magna cum laude from Harvard College and an MBA from Harvard Business School.

Analyst’s Disclosure: I am/we are long MTBC.

Business relationship disclosure: I am CFO of MTBC.

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Comments (2)

Maverick_Investor profile picture
"investors in our non-convertible Series A Preferred Stock who purchased an additional $7.4 million of our preferred stock in a follow-on offering in late June"

"MTBC ended Q2 with approximately $5.8 million cash on our balance sheet."

Preferred share offering needed to create positive cash balance at end of Q2?
They had I think it was 6-7 million dollars in debt to a creditor that was close to being due. The creditor wouldn't budge on the payback in any way so they raised money to pay them back before the due date.
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