Why Ontrak Stock Plunged Today

Jeremy Bowman, The Motley Fool
·2 min read
Why Ontrak Stock Plunged Today

Shares of Ontrak (NASDAQ: OTRK) were sinking today after the telehealth company said in its fourth-quarter earnings pre-release that it was going to lose its biggest customer later this year. Ontrak, which is focused on chronic-disease management, reported solid results in Q4 with revenue growth of 149% to $29.3 million -- in line with estimates -- while its per-share loss narrowed from $0.39 to $0.07, beating the analyst consensus at $0.30. Peizer pinned the blame for Ontrak-A's departure on that customer's use of different performance-evaluation metrics than Ontrak's other customers use.