What Happened:

Shares of healthcare software provider Health Catalyst (NASDAQ:HCAT) fell 8.37% in the morning session after The company reported first-quarter revenue, adjusted EBITDA and earnings per share that surpassed analysts' estimates. However, operating income missed. In addition, revenue guidance for the next quarter and full year slightly missed analysts' expectations. Adjusted EBITDA guidance for the next quarter also missed slightly, although full year guidance was ahead. Overall, the company's Q1 results were mixed, with underwhelming guidance was the key negative.

What is the market telling us:

Health Catalyst's shares are very volatile and over the last year have had 54 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move was about one month ago, when the company gained 8.95% on the news that analyst Stan Berenshteyn of Wells Fargo upgraded the stock's rating from Equal-Weight (Hold) to Overweight (Buy) and raised the price target from $13 to $16. 

Health Catalyst is down 3.66% since the beginning of the year, and at $10.01 per share it is trading 45.2% below its 52-week high of $18.27 from August 2022. Investors who bought $1,000 worth of Health Catalyst's shares at the IPO in July 2019 would now be looking at an investment worth $255.55.

Is now the time to buy Health Catalyst? Access our full analysis of the earnings results here, it's free.