Medical Transcription Billing Corp (NASDAQ:MTBC)
Medical Transcription Billing Corp (NASDAQ:MTBC) continues to post higher highs in the market days after announcing 60% year-over-year revenue growth. Investors also appear to be taking positions in the stock, on the company announcement of a new partnership with Healthcare Compliance Network LLC – likely seen as another value-generating pathway.
MTBC-Healthcare Compliance Deal
Healthcare Compliance Network is a provider of compliance solutions mostly targeting hospitals and dispensaries in the US. Buoyed by the partnership Medical Transcription Billing Corp (NASDAQ:MTBC) senior vice president for of sales and marketing, Karl Johnson, says they will work together in coordinating marketing efforts as part of an effort that seeks to add value to each other’s service offerings.
“As a company that’s committed to compliance and industry leading revenue cycle management solutions, MTBC is a great fit for our customers. There are great synergies between our respective solutions and we look forward to working together,” said Wiks Moffat, Healthcare Compliance Principal.
While the partnership marks yet another milestone for the provider of cloud-based health care IT solutions fuelling interest in the stock is the fact that Medical Transcription Billing Corp (NASDAQ:MTBC) revenue appears to be growing faster than initially thought.
For the three months ending March 31, 2017, MTBC says its revenue, according to an unaudited report, should come in at $8.2 million. This would represent a 60% year over year increase, something that seems to have taken Wall Street by storm. The provider of health and cloud-based healthcare IT solutions also says its net loss and non-GAAP loss for the first quarter was significantly reduced compared to the fourth quarter.
Buoyed by the first quarter results, Chef executive officer, Mahmud Haq, remains confident of the company meeting its full year guidance. For the full year, the company expects revenue to be in the highs of $30 million. EBITDA, on the other hand, should come in at between $2 and $2.5 million. Last year Medical Transcription Billing Corp (NASDAQ:MTBC) posted revenues of $24.5 million representing a 6% growth from 2015.
Fuelling growth in revenue according to the chief executive is the company’s organic sales initiatives as well as acquisitions made over the past year.
Medical Transcription Billing Corp (NASDAQ:MTBC) is currently trading at highs of $1.22 share having rallied by 205% in Wednesday trading session. The big question now is whether the stock will be able to maintain the upward momentum ahead of the release of audited report.
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.