VitalHub Reports Q4 2020 Revenues of $5,083,132 while Increasing the Annual Contract Value of Recurring Revenue by $1,283,343 to $14,844,039

TORONTO, March 29, 2021 (GLOBE NEWSWIRE) -- VitalHub Corp. (the “Company” or “VitalHub”) (TSXV: VHI) announced today it has filed its Consolidated Financial Statements and Management’s Discussion and Analysis report for the years ended December 31, 2020 and 2019 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,

“As the world has continued to combat and adapt to the COVID-19 pandemic, 2020 was a transformative year for VitalHub in many respects. The Company doubled its size year over year while significantly increasing its software recurring revenues as a percentage of total revenues, to levels that represent a true SaaS company. Our two UK acquisitions of Intouch with Health Ltd. and Transforming Systems Ltd. have significantly increased our ability to grow organically, as demonstrated by our strong Q3 and Q4 organic growth numbers. The Company is continuing to produce strong positive adjusted EBITDA. Going into 2021 with significant cash on hand, we will continue to be active in the M&A markets.”

The Company will be holding a conference call via Zoom on March 30th, 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 Q4 2020 Conference Call.

Fourth Quarter 2020 Financial Highlights

• Revenue of $5,083,132, an increase of $2,522,471 or 99% from the comparative period in the prior year.

• Annualized Contract Value (Non-IFRS measure) grew by $1,283,343 (all organic) or 9% in Q4 2020 versus Q3 2020.

• Net loss of ($715,217) compared to net income of $250 from the comparative period in the prior year.

• EBITDA (Non-IFRS measure) of ($125,716) compared to ($704,462) from the comparative period in the prior year.

• Adjusted EBITDA (Non-IFRS measure) of $719,907, or 14% of revenue, compared to $42,254 or 2% of revenue from the comparative period in the prior year.
  

Fiscal Year 2020 Financial Highlights

• Revenue of $13,794,192, an increase of $3,566,268 or 35% from the comparative period in the prior year.

• Annualized Contract Value (Non-IFRS measure) grew by $7,413,595 or 100% (25% organic and 75% acquisition related)

• Annualized Contract Value of recurring revenue (Non-IFRS measure) at December 31, 2020 was $14,844,039 as compared to $7,430,444 at December 31, 2019, an increase of 100%, and $13,560,696 at Q3 2020 an increase of 9% in Q4 2020.

• Net loss of ($2,165,721) compared to a net loss of ($625,534) from the comparative period in the prior year.

• EBITDA (Non-IFRS measure) of $148,125 compared to $645,466 from the comparative period in the prior year.

• Adjusted EBITDA (Non-IFRS measure) of $2,253,045, or 16% of revenue, compared to $1,615,360 or 16% of revenue from the comparative period in the prior year.

• Cash on hand at December 31, 2020 was $23,391,591 compared to $1,995,691 as at December 31, 2019.
  

Fourth Quarter 2020 Business Highlights

• The Company continues to increase its UK presence with 8 additional licensing deals won in Q4 2020 as follows:

  • Licensing of Synopsis iQ to Worcestershire Acute Hospitals NHS Trust,

  • Large-scale expansion of the digital health platform licensing contract with King’s College Hospital NHS Foundation Trust,

  • Licensing of digital outpatient management solutions to the Royal Victorian Eye and Ear Hospital in partnership with Australia’s Device Technologies,

  • Licensing of Synopsis iQ to the Northumbria Healthcare NHS Foundation Trust,

  • Expansion of the patient flow solution licensing contract with East Suffolk and North Essex NHS Foundation Trust,

  • Deployment of a contract for Transforming Systems’ SHREWD products with Bedfordshire, Luton and Milton Keynes Integrated Care System,

  • Multi-year deployment of a contract for Transforming Systems’ SHREWD products with NHS Herefordshire and Worcestershire CCG,

  • Expansion of the licensing contract for Synopsis iQ with King’s College Hospital NHS Foundation Trust.
    

• VitalHub was ranked 10th on Deloitte’s Technology Fast 50 program award amongst Canadian companies for its rapid revenue growth with 1995% growth from 2016 to 2019. The Company also ranked 65th within North America on Deloitte’s Technology Fast 500 Rankings List.

• Subsequent to the year end the Company received proceeds of $2,990,625 as a result of the exercise of 1,031,250 previously issued common share purchase warrants. The Company intends to use the proceeds of the warrant exercises for general working capital purposes and M&A activity.

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