Under-the-Radar MTBC Stock Deserves a Look
Today I’m highlighting a fast-growing tech company that no one seems to be talking about: CareCloud Inc (NASDAQ:MTBC).
CareCloud is a health-care information technology (IT) company headquartered in Somerset, NJ.
It offers a full suite of proprietary cloud-based solutions and business services to health-care providers, such as revenue cycle management, practice management, electronic health records, business intelligence, telehealth, and patient experience management.
These solutions help health-care providers streamline their workflow, increase their revenue, and modernize the patient experience.
The company serves a diverse customer base across a large addressable market that includes small medical practices, large physician groups, health systems, and industry partners. According to CareCloud’s latest investor presentation, there are now more than 40,000 health-care providers that use the company’s solutions. (Source: “Investor Presentation: May 2021,” CareCloud Inc, last accessed May 12, 2021.)
And while CareCloud doesn’t sound like a big-name company, it has established a solid track record as a consolidator in a rather fragmented marketplace. Notably, the company has completed 16 acquisitions since its initial public offering (IPO) in July 2014.
The successful acquisition strategy has allowed CareCloud Inc to grow its business at an incredible pace. Take a look at the following chart. In 2017, the company generated $31.8 million in total revenue. By 2020, the amount had more than tripled to $105.1 million.
The rise in CareCloud Inc’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was even more impressive. From 2017 to 2020, CareCloud’s adjusted EBITDA went from $2.1 million to $10.9 million, marking a staggering 419% improvement.
The growth momentum in CareCloud’s business has been continuing in 2021.
According to its latest earnings report, the company generated $29.8 million of revenue in the first quarter of 2021. The amount represented another 36% increase year-over-year. (Source: “CareCloud (Formerly MTBC) Reports Continued Growth With First Quarter Results,” CareCloud Inc, May 6, 2021.)
The company’s adjusted EBITDA came in at $3.7 million, marking a 381% increase from the $767,000 earned in the year-ago period.
The biggest improvement, though, was on the bottom line. In the first quarter of 2021, CareCloud earned adjusted net income of $2.9 million, or $0.20 per share. In the year-ago quarter, its adjusted net income was $354,000, or $0.03 per share.
And the best is likely yet to come.
CareCloud Inc’s management expects to generate $133.0 to $137.0 million of revenue in full-year 2021. That would translate to growth of 27% to 30% over its 2020 revenue.
Management also projects that the company will earn $22.0 to $25.0 million of adjusted EBITDA this year, which would more than double the $10.9 million it generated in 2020.
“We anticipate this will be our fifth consecutive year with annual revenue growth of 25% or more, a record few public companies have been able to achieve,” said CareCloud’s chief financial officer, Bill Korn. (Source: Ibid.)
Add it up and it’s easy to see why the little-known CareCloud stock deserves investor attention.
CareCloud Inc’s cloud-based health-care IT platform is already being used by tens of thousands of health-care providers, and more are likely to sign up in the future. The company has also been growing its financials rapidly and generating material non-GAAP profits.
Trading at $7.73 per share at the time of this writing, MTBC stock could have the potential to become the next multibagger opportunity.