However, shares of the data management and supply chain company have dropped over six percent following the announcement.
SCWorx (NASDAQ:WORX), a supply chain company that utilizes artificial intelligence in the healthcare sector announced a 74 percent uptick in revenues compared to the third quarter of 2018. As new contracts for its software-as-a-service business model increased, its net loss figures declined to US$640,000 while its cash balance stood at US$1.02 million.
As quoted in the press release:
“We continue to execute on our core business goals, reaching double-digit revenue growth driven by the addition of new customer contracts,” said Marc Schessel, CEO of SCWorx. “Our SaaS business model delivers three to five-year contracts, which provide revenue growth, stability, and tremendous visibility into our backlog and future revenue opportunities. It is our expectation that our team will continue to add new revenue each quarter due to our Ultraverse Platform™, which we believe to be one of the most robust data management platforms in the vast healthcare provider (hospital) marketplace.
“In addition to the growth that we have experienced with our existing platform sales during the first three quarters of 2019, we have recently announced the addition of our ScanWorx product and services offering. ScanWorx is the next evolution of our data management platform. ScanWorx allows our customers to “close the loop” between the electronic medical record system (“EMR”) item data with the supply chain (“ERP”) purchased item data in an automated fashion. This revolutionizes how hospitals solve their interoperability issues within the ERP, EMR and finance systems. We believe that ScanWorx can drive down the cost of billing, dramatically increase data accuracy as it populates the EMR for billing and patient outcome data, decrease manual intervention in this process, and decrease time to collections. We believe that 2020 will see solid growth in the sales of ScanWorx to our existing customer base as well as to new hospital groups as the market learns about it, substantially increasing the average annual revenue that we receive per client,” added Mr. Schessel.