Company: HCTI
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045994
Chunk: 105

Company: Healthcare Triangle, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 105
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 as compared to $0.88 million for the quarter ended March 31, 2024.

Factors affecting revenues of Software Services,
Managed Services and Support and Platform Services 

Our strategy is to achieve meaningful long-term
revenue growth through sales of Managed Services and Support and Platform Services to existing and new clients within our target market.
In order to increase our cross-selling opportunity between our operating segments and realize long time revenue growth, our focus has
shifted more towards Managed Services and Support and Platform Services which is of recurring nature when compared to Software Services
segment which is of non-recurring nature. This also helps in retaining existing customers by leveraging our Managed Services and Support
and Platform Services as a growth agent. This renewed focus on driving demand for subscription and platform-based model will help us in
expanding our customer base and enhance customer retention which is a challenge for our existing Software Services segment. Software Services
contracts are driven by Time and Material and on-site employees delivering services at customers location.

Cost of Revenue

    Three Months Ended March 31,  
    Changes 

    2025  
    2024  
    Amount  
    % 

    (In thousands, except percentages) 
  
    Software services 
    $1,543  
    $1,624  
    $(81) 
     (5)%
  
    Managed services and support 
     1,823  
     1,415  
     408  
     29%
  
    Platform services 
     9  
     56  
     (47) 
     (84)%
  
    Cost of revenue 
    $3,375  
    $3,095  
    $280  
     9%

Cost of revenue from Software services decreased
by $0.08 million, or 5% to $1.54 million for the quarter ended March 31, 2025, as compared to $1.62 million for the quarter ended March
31, 2024. Cost of revenue from Managed services and support increase by $0.40 million, or 29% to $1.82 million for the quarter ended March
31, 2025, as compared to $1.41 million for the quarter ended March 31, 2024. Cost of revenue from Platform services decreased by $0.04
million, or 85% to $0.01 million for the quarter ended March 31,