AI-powered healthcare company Ontrak Inc. (OTRK) recently released its third-quarter earnings, which beat the consensus estimate. However, a lawsuit against the company and severe business headwinds may hinder its growth prospects. In addition, OTRK’s negative profit margin remains a concern. So, the question is, is it worth betting on the stock now? Let’s find out.Ontrak, Inc. (OTRK) is a leading AI and telehealth-enabled healthcare startup that aims to help people improve their health and save lives. The company identifies, engages, activates, and offers treatment paths for the most vulnerable individuals of the behavioral health population who might otherwise fall through the healthcare system's cracks.
The company is pursuing various strategies to combine artificial intelligence, predictive analytics, and digital interfaces with hundreds of care coach interactions to enhance member health, optimize healthcare system use, and provide long-term results. However, OTRK’s stock has declined 81.1% year-to-date and 56.6% over the past three months to close yesterday’s trading session at $11.71.
Though the company surpassed the consensus earnings estimate for the third quarter, the ongoing lawsuit and current business headwinds, such as losing major clients, have impacted the revenue growth. This could also exacerbate OTRK’s poor price performance in the upcoming months.