National Research Corporation (NRC Health) reported a revenue of $143.1 million for the fiscal year ending December 31, 2024, a decrease of 3.7% from $148.6 million in 2023. The decline in revenue was primarily attributed to reduced recurring revenue from existing clients, with 34% of the decrease stemming from non-core solutions. Operating income also fell to $35.2 million, down 12% from $40.0 million in the previous year, resulting in an operating margin of 25%, compared to 27% in 2023. The company’s net income for 2024 was $24.8 million, translating to earnings per share of $1.04, down from $1.25 in 2023.
In terms of operational changes, NRC Health made significant adjustments to its workforce in the fourth quarter of 2024 to align with lower revenue, which is expected to reduce fixed expenses in future periods. The company also completed the acquisition of Nobl Health in July 2024 for $6 million, aimed at enhancing its portfolio of solutions. This acquisition included a contingent consideration arrangement that could require additional payments based on performance metrics, which reflects NRC Health's strategy to expand its service offerings and improve client engagement.
The company reported a total recurring contract value (TRCV) of $133.2 million, a decrease of 6% from $141.9 million in 2023. This decline was attributed to a lack of growth in new contracts to offset losses, with a retention rate that decreased by 4% compared to the previous year. NRC Health's client base remains concentrated, with its ten largest clients accounting for 17% of total revenue in 2024, consistent with previous years. The company employed 368 associates as of December 31, 2024, a slight reduction from prior periods, reflecting its efforts to streamline operations.
Looking ahead, NRC Health anticipates that its revenue may stabilize as it continues to invest in innovative solutions and enhance its product offerings. The company has also appointed Trent Green as the new Chief Executive Officer, effective June 1, 2025, which is expected to bring fresh leadership and strategic direction. However, the company faces ongoing challenges, including competitive pressures in the healthcare analytics market and potential impacts from economic conditions, which could affect its financial performance in the near term.
About NATIONAL RESEARCH CORP
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