A Recent IPO Story — Does Healthcare + Cloud = Opportunity?

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

With the ongoing COVID-19 pandemic, discussion about cloud-based technology and the companies behind creating the infrastructure to help produce precision analytics and on-demand data services and automation has slowed.

Healthcare Triangle Inc. HCTI recently went public and says that too little attention has been focused on how big the healthcare cloud industry is going to be over the coming years. From a macro perspective, Healthcare Triangle operates as a healthcare information technology company. However, it came into being by combining 2 companies: 1 firmly rooted in proven healthcare and business methodologies, the other born in the cloud. The result is a business partner that attempts to provide a 360° solution to technology, data, care delivery, and business operation needs.

From an operational perspective, Healthcare Triangle provides software, solutions, platforms, and services that enable healthcare and pharma organizations to deliver personalized healthcare, precision medicine, advances in drug discovery, and collaborative research and development (R&D) while responding to evidence and accelerating a global digital transformation.

The company’s software platforms include CloudEz, an enterprise multi-cloud transformation, and management platform that enables customers to manage cloud infrastructure across private, hybrid, and public cloud infrastructures; and DataEz, a cloud-based data analytics, and data science platform for the data analytics and data science requirements of life sciences/pharmaceutical and healthcare provider organizations. Its platform also offers readabl.ai, a cloud-based artificial intelligence/machine learning platform to ingest documents.

Durable Competitive Advantage and Opportunistic Growth?

As healthcare moves more towards digitization, Healthcare Triangle thinks that it can be a trusted partner in helping companies and hospitals across the healthcare spectrum enter the digitized healthcare world. 

The potential of cloud technologies, which provide data storage and computing resources that are managed by external service providers to help improve the safety, quality, and efficiency of healthcare, escalated in the fight against COVID-19. As a result of the extensive amount of research work and clinical trials being carried out across the world, the information being generated needs to be stored in a secure environment that can house large amounts of data. 

The major factors that are bolstering the growth of the healthcare cloud computing market include the increasing access to advanced technology, such as machine learning, the rise in adoption of information technology in the healthcare sector, and the use of the cloud for reducing cost and improving scalability, storage and flexibility. All these technologies are at the core of what Healthcare Triangle says it provides and administers for its clients. In addition, Healthcare Triangle has recently become a top premier partner in deploying Google GOOGL Cloud services, a designation that recognizes a proven record of delivering exceptional customer service and in-depth technical expertise.

Current projected growth in the healthcare cloud computing segment is for more than an 18% compound annual growth rate (CAGR) over the next 5 years while delivering potential revenues of $65 billion from $28 billion currently. 

The usual IT service providers — companies like IBM IBM, Accenture ACN, Cognizant CTSH, and Infosys INFY — that many healthcare entities might rely on can have a generalist approach to providing solutions to the healthcare sector. Given the specialist nature of the healthcare sector as a whole, with its data privacy laws, depth of data, and precision analytics, this sector may require deeper focus.

Financials

Healthcare Triangle states that it’s currently driving growth from a top and bottom-line perspective on a gross quarter-over-quarter and year-over-year basis. Cash on the balance sheet continues to grow, and the company has no debt. It continues to invest in the business with increased R&D, making key hiring initiatives to drive product and service expansion with new clients down the road.   

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The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.