VitalHub Increases Q2 2021 Revenue to $5.8M While Continuing to Improve on Financial Metrics Across the Business
TORONTO, Aug. 24, 2021 (GLOBE NEWSWIRE) -- VitalHub Corp. (the “Company” or “VitalHub”) (TSXV: VHI) announced today it has filed its Interim Condensed Consolidated Financial Statements and Management's Discussion and Analysis report for the three and six months ended June 30, 2021 with the Canadian securities authorities. These documents may be viewed under the Company's profile at www.sedar.com.
When asked to comment on the results, VitalHub CEO Dan Matlow said,
“With the constraints of COVID-19 in the background, we are very happy with the progress of the Company over the last 4 quarters. With the acquisition of Alamac Limited, our Annual Recurring Revenue (“ARR”) now exceeds a run-rate of $21 million. Notably, over the last four quarters the Company has added over $3.4 million in ARR organically. This represents a 46% growth in organic annual recurring revenue over and above the $8.8 million annual recurring revenue purchased through acquisitions. The Company is approaching our target of 20% Adjusted EBITDA, with 18% Adjusted EBITDA reported in Q2 2021. We continue to work on integrating our acquired companies to generate increased synergies both from a revenue and cost perspective.”
The Company will be holding a conference call via Zoom on August 25, 2021, at 9:00am EST hosted by CEO Dan Matlow and CFO Brian Goffenberg with a Q&A session to follow. To register for the conference call please visit: VitalHub Q2 2021 Conference Call or https://bit.ly/VitalHubQ221.
Second Quarter 2021 Financial Highlights
Revenue of $5,792,182, an increase of $3,043,287 or 111% from the comparative period in the prior year.
Gross profit as a percentage of revenue for Q2 2021 was 77% compared to 73% in Q2 2020.
ARR (Non-IFRS measure) grew by $3,825,678 ($501,835 or 3.15% organic and $3,323,843 or 20.86% acquisition) to $19,757,306, a 24% sequential growth in Q2 2021 versus Q1 2021.
Net (loss) of ($523,400) compared to net income of $179,467 from the comparative period in the prior year.
EBITDA (Non-IFRS measure) of $157,114 compared to $705,901 from the comparative period in the prior year.
Adjusted EBITDA (Non-IFRS measure) of $1,053,686, or 18% of revenue, compared to $754,262 or 27% of revenue from the comparative period in the prior year.
Cash on hand at June 30, 2021 was $21,043,380 compared to $23,391,946 as at December 31, 2020
Cash provided by operating activities increased by $2,133,665 from $24,543 in Q2 2020 to $2,158,208 in Q2 2021.
Including the acquisition of Alamac subsequent to the quarter, Vitalhub’s ARR now stands at $21,057,306.
Second Quarter 2021 Business Highlights
The Company continues to increase its international presence and cross sell products with additional licensing deals won in Q2 2021 as follows:
Licensing of Intouch with Health’s digital health platform with University Hospitals Coventry and Warwickshire NHS Trust,
Multi-year large-scale licensing transaction of Intouch with Health’s Synopsis product with Hampshire Hospitals NHS Foundation Trust,
Five-year licensing contract of Vitalhub’s Treat product to Family Service Toronto,
Multi-year license agreement of Intouch with Health’s patient flow solution with Wrightington Wigan and Leigh Teaching Hospitals NHS Foundation Trust,
Multi-year license agreement of Intouch with Health’s digital health platform with University Hospitals Dorset NHS Foundation Trust to Support New NHS Initiative,
Expansion of Transforming Systems’ SHREWD products at East of England region of the National Health Service.
Subsequent to the quarter the Company acquired all of the issued and outstanding shares of Alamac Limited (“Alamac”). Alamac is a UK-based company and provides technological and advisory solutions that assist healthcare organizations across the NHS.
In addition, VitalHub is pleased to announce that it has entered into a debt settlement arrangement with various individuals in settlement of debts owed of $268,994.25 in connection with the earn out provision as part of the Acquisition of Transforming Systems Ltd. (the “Acquisition”). Further details of the Acquisition are available in the Company’s August 31, 2020, press release. Under the terms, the Company will issue 88,888 common shares of the Company at a price of $3.026 per share
ABOUT VITALHUB:
Software for Health and Human Services providers designed to simplify the user experience & optimize outcomes.
VitalHub provides technology to Health and Human Services providers including; Hospitals, Regional Health Authorities, Mental Health, Long Term Care, Home Health, Community and Social Services. VitalHub solutions span the categories of Electronic Health Record (EHR), Case Management, Care Coordination, Patient Flow & Operational Visibility, and DOCit Mobile Apps.
The Company has a robust two-pronged growth strategy, targeting organic growth opportunities within its product suite, and pursuing an aggressive M&A plan. Currently, VitalHub serves 275+ clients across Canada, USA, UK, Australia, Qatar, and Latvia. VitalHub is based in Toronto, Canada, with an offshore development hub in Sri Lanka. The Company is publicly traded on the TSX Venture Exchange under the symbol “VHI”.
CAUTIONARY STATEMENT:
This press release includes forward-looking statements regarding the Corporation and its business, which may include, but is not limited to, statements with respect to the appointment of a new directors. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of the management of each entity and are based on assumptions and subject to risks and uncertainties. Although the management of each entity believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release, may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the companies, including risks regarding the technology industry, failure to obtain regulatory or shareholder approvals, market conditions, economic factors, the equity markets generally and risks associated with growth and competition. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Corporation undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
CONTACT INFORMATION
Dan Matlow
Chief Executive Officer, Director
(416) 727-9061
dan.matlow@vitalhub.com