Annual Recurring Revenue (ARR) ⁽¹⁻²⁾ up 25% YoY to $53.5 million
Total Revenue up 25% YoY to $16.5 million
Adjusted EBITDA ⁽²⁾ up 33% YoY to $4.6 million
TORONTO, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Vitalhub Corp. (the "Company” or "VitalHub”) (TSX:VHI) (OTCQX:VHIBF) announced today it has filed its Interim Condensed Consolidated Financial Statements and Management's Discussion and Analysis report for the three and nine months ended September 30, 2024, with the Canadian securities authorities. These documents may be viewed under the Company's profile at www.sedarplus.com.
"We are pleased to report strong third quarter 2024 results, continuing our path of driving stable revenue and cash flow growth,” said Dan Matlow, CEO of VitalHub. "Financial highlights include $16.5 million of revenue, 28% adjusted EBITDA ⁽²⁾ margin, and $1.1 million of sequential net new organic ARR ⁽¹⁻²⁾ in the seasonally quieter summer quarter. We are continuing to build on the success of our diversified portfolio, from a product and geographic perspective.”
"Subsequent to the quarter, we closed the acquisitions of MedCurrent and Strata Health, bringing our third quarter 2024 pro forma ARR ⁽¹⁻²⁾ to $68.0 million. Both of these acquisitions expand the functionality of our patient flow platform. The technologies are innovative and will increase our growth potential as healthcare systems increasingly embrace digitization.”
"Inclusive of these transactions, we closed the quarter with a September 30, 2024 pro forma cash balance of over $50 million and no debt. In combination with our stable quarterly cash generation, we are in a strong position to continue on our M&A path. We have record activity in our deal pipeline. We will continue to exercise discipline to transact only on the opportunities that enhance the value of the VitalHub suite for our healthcare partners and our shareholders.”
VitalHub's quarterly investor conference call will take place on Thursday, November 14, 2024, at 9:00AM EST.
To register for the call, please visit:
https://us06web.zoom.us/webinar/register/WN_b6XzLByVR0yOqO4IN-9UiQ
Third Quarter 2024 Highlights
- Revenue of $16,509,135 as compared to $13,224,264 in the equivalent prior year period, an increase of $3,284,871 or 25%.
- Gross profit as a percentage of revenue was 81% compared to 82% in the equivalent prior year period.
- ARR ⁽¹⁻²⁾ at September 30, 2024 was $53,452,108 as compared to $51,283,570 at June 30, 2024, an increase of $2,168,538 or 4%.
- ARR ⁽¹⁻²⁾ growth was due to organic growth of $1,081,181 or 2%, and an increase of $1,087,357 or 2% due to the fluctuations in foreign exchange rates during the quarter.
- Net income before income taxes of $2,360,258 as compared to net income before income taxes of $1,820,543 in the equivalent prior year period, an increase of $539,715 or 30%.
- EBITDA ⁽²⁾ of $3,004,034 compared to $2,928,358 in the equivalent prior year period, an increase of $75,676 or 3%.
- Adjusted EBITDA⁽²⁾ of $4,554,597 or 28% of revenue, compared to $3,411,871 or 26% of revenue in the equivalent prior year period, an increase of $1,142,726 or 33%.
- On October 4, 2024, the Company acquired all of the issued and outstanding shares of MedCurrent Corporation and its subsidiaries ("MedCurrent”). MedCurrent integrates evidence-based guidelines at the point of care, serving over 80 customers in Canada, the UK, the US, and Australia. Total closing consideration for the acquisition was $8.3 million in cash after working capital adjustments.
- On October 29, 2024, the Company acquired all of the issued and outstanding shares of Strata Health Solutions Inc. ("Strata Health”). Strata Health designs, builds, and deploys software that improves access and navigation to care for customers internationally. Total closing consideration for the acquisition was $32.3 million, composed of a cash payment of $18.6 million and the issuance of 1,480,726 common shares of VitalHub.
- With the addition of the ARR⁽¹⁻²⁾ of MedCurrent and Strata Health subsequent to the quarter, the Company's pro forma ARR ⁽¹⁻²⁾ would be approximately $68.0 million.
- Revenue of $48,003,531 as compared to $38,904,879 in the equivalent prior year period, an increase of $9,098,652 or 23%.
- Gross profit as a percentage of revenue was 81% compared to 81% in the equivalent prior year period.
- ARR ⁽¹⁻²⁾ at September 30, 2024 was $53,452,108 as compared to $42,612,166 at September 30, 2023, an increase of $10,839,942 or 25%.
- ARR ⁽¹⁻²⁾ growth was primarily due to organic growth of $5,826,248 or 14%, acquisition growth of $3,311,500 or 8%, and a gain of $1,702,194 or 4% due to fluctuations in foreign exchange rates.
- Net income before income taxes of $5,722,758 as compared to net income before income taxes of $3,343,487 in the equivalent prior year period, an increase of $2,379,271 or 71%.
- EBITDA ⁽²⁾ of $8,075,502 compared to $6,895,569 in the equivalent prior year period, an increase of $1,179,933 or 17%.
- Adjusted EBITDA ⁽²⁾ of $12,793,514 or 27% of revenue, compared to $9,305,973 or 24% of revenue in the equivalent prior year period, an increase of $3,487,541 or 37%.
- Cash on hand at September 30, 2024 was $81,438,615 compared to $33,480,018 as at December 31, 2023.
- The increase is primarily due to a bought deal offering of approximately $37 million in net proceeds, plus cash generated from operations.
- Cash from operations before changes in working capital was $8,135,174 as compared to $8,536,603 for the same period last year.
(2) Non-IFRS measure. Disclaimers and reconciliations can be found in SEDAR filings.
| SELECTED FINANCIAL INFORMATION | ||||||||||||||||||||
| Three months ended | Nine months ended | |||||||||||||||||||
| September 30, 2024 | % Revenue | September 30, 2023 | % Revenue | Change | September 30, 2024 | % Revenue | September 30, 2023 | % Revenue | Change | |||||||||||
| $ | $ | % | $ | $ | % | |||||||||||||||
| Revenue | 16,509,135 | 100% | 13,224,264 | 100% | 25% | 48,003,531 | 100% | 38,904,879 | 100% | 23% | ||||||||||
| Cost of sales | 3,215,845 | 19% | 2,392,707 | 18% | (34%) | 9,258,338 | 19% | 7,333,455 | 19% | (26%) | ||||||||||
| Gross profit | 13,293,290 | 81% | 10,831,557 | 82% | 23% | 38,745,193 | 81% | 31,571,424 | 81% | 23% | ||||||||||
| Operating expenses | ||||||||||||||||||||
| General and administrative | 3,555,539 | 22% | 2,683,879 | 20% | (32%) | 10,008,360 | 21% | 8,853,440 | 23% | (13%) | ||||||||||
| Sales and marketing | 1,562,915 | 9% | 1,466,675 | 11% | (7%) | 5,081,213 | 11% | 4,488,319 | 12% | (13%) | ||||||||||
| Research and development | 3,943,697 | 24% | 3,167,468 | 24% | (25%) | 11,037,178 | 23% | 8,981,113 | 23% | (23%) | ||||||||||
| Depreciation of property and equipment | 93,687 | 1% | 84,202 | 1% | (11%) | 252,691 | 1% | 242,370 | 1% | (4%) | ||||||||||
| Depreciation of right-of-use assets | 108,905 | 1% | 100,951 | 1% | (8%) | 326,912 | 1% | 298,600 | 1% | (9%) | ||||||||||
| Share-based compensation | 636,177 | 4% | 266,784 | 2% | (138%) | 1,660,430 | 3% | 838,425 | 2% | (98%) | ||||||||||
| Deferred share-based compensation | 0 | 0% | 0 | 0% | 0% | 0 | 0% | 97,560 | 0% | 100% | ||||||||||
| Foreign currency loss (gain) | (323,458 | ) | (2%) | 103,766 | 1% | 412% | (175,072 | ) | (0%) | (55,319 | ) | (0%) | 216% | |||||||
| Other income and expenses | ||||||||||||||||||||
| Amortization of intangible assets | 1,197,953 | 7% | 1,066,767 | 8% | (12%) | 3,418,794 | 7% | 3,191,228 | 8% | (7%) | ||||||||||
| Business acquisition, restructuring and integration costs | 841,454 | 5% | 216,729 | 2% | (288%) | 2,652,758 | 6% | 1,228,094 | 3% | (116%) | ||||||||||
| Loss on change in fair value of contingent consideration | 72,932 | 0% | 0 | 0% | (100%) | 404,824 | 1% | 246,325 | 1% | (64%) | ||||||||||
| Interest expense and accretion (net of interest income) | (766,046 | ) | (5%) | (160,917 | ) | (1%) | 376% | (1,680,448 | ) | (4%) | (237,272 | ) | (1%) | 608% | ||||||
| Interest expense from lease liabilities | 9,277 | 0% | 16,812 | 0% | 45% | 34,795 | 0% | 57,156 | 0% | 39% | ||||||||||
| Current and deferred income taxes | 1,131,871 | 7% | (1,006,534 | ) | (8%) | (212%) | 3,510,958 | 7% | (267,209 | ) | (1%) | (1414%) | ||||||||
| Net income | 1,228,387 | 7% | 2,827,077 | 21% | (57%) | 2,211,800 | 5% | 3,610,696 | 9% | (39%) | ||||||||||
| EBITDA (Non-IFRS measure) | 3,004,034 | 18% | 2,928,358 | 22% | 3% | 8,075,502 | 17% | 6,895,569 | 18% | 17% | ||||||||||
| Adjusted EBITDA (Non-IFRS measure) | 4,554,597 | 28% | 3,411,871 | 26% | 33% | 12,793,514 | 27% | 9,305,973 | 24% | 37% | ||||||||||
| Annual recurring revenue (Non-IFRS measure) | 53,452,108 | 42,612,166 | 25% | 53,452,108 | 42,612,166 | 25% | ||||||||||||||
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