Streamline Health Solutions Inc (NASDAQ:STRM) stock rose 3.59% (As on September 14, 11:37:14 AM UTC-4, Source: Google Finance) after the company posted mixed results for the second quarter of FY 23. During the second quarter and first six months of fiscal 2023, SaaS revenue grew $0.4 million and $0.8 million, respectively, as compared to the prior year periods. Net loss for the second quarter of fiscal 2023 was ($2.5 million) compared to a net a loss of ($3.3 million) during the second quarter of fiscal 2022. The improvement in net loss was the result of lower headcount associated with the non-renewal of a large professional services contract, as well as cost savings achieved through the previously announced integration of the Avelead and eValuator divisions and non-cash valuation adjustments. The Company believes the decreased net loss on lower total revenue demonstrates the value of growing the high-margin SaaS business.

Moreover, Adjusted EBITDA for the second quarter of fiscal 2023 was ($0.9 million) compared to ($1.1 million) during the second quarter of fiscal 2022. As of July 31, 2023, the Company’s total Booked SaaS Annual Contract Value (“ACV”) was $17.6 million compared to $17.2 million as of January 31, 2023. $3.4 million of the Booked SaaS ACV was unimplemented as of July 31, 2023. Booked SaaS ACV represents the annualized value of all executed SaaS contracts, including contracts that have not been fully implemented as of the measurement date, assuming any contract that expires during the twelve months following the measurement date is renewed on its existing terms unless the Company has knowledge of the non-renewal.

Meanwhile, while the growth team has been encumbered by significant macro headwinds, health systems remain excited about the potential to transform their revenue cycle with the suite of pre-bill solutions which ensure they are accurately paid for all of the care they’ve provided.

STRM in the second quarter of FY 23 has reported the adjusted loss per share of 4 cents, beating the analysts’ estimates for the adjusted earnings per share by 20%. The company had reported the adjusted revenue growth of 35.9 percent to $5.77 million in the second quarter of FY 23, missing the analysts’ estimates for revenue of $5.99 million. The change in total revenue was attributable to lower professional services revenue offset by higher SaaS revenue. As previously reported, the Company had a large professional services contract which did not renew at the end of its 2022 fiscal year. This professional services product is not expected to be part of the Company’s core business going forward.