Vitalhub Reports Second Straight Quarter of Positive Adjusted EBITDA
August 27 2018 - 12:29PM
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
quarter ended June 30, 2018 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 of Q2 2018,
VitalHub CEO Dan Matlow said, “We are continuing to make progress
on the integration of our acquired companies and are starting to
realize the synergistic values we anticipated, as shown in the
second straight quarter of positive adjusted EBITDA. It is
important to note that Q2 does not have a large impact of one‐time
perpetual licenses as compared to Q1. While we expect to make
intermittent perpetual one‐time license transactions, we are
primarily focused on increasing our Annual Recurring Revenue
numbers, which increased by over 7% this quarter. We continue to
grow our pipeline with meaningful new sales opportunities and
further M&A opportunities.”
Highlights for the quarter ended June
30, 2018 include:
- Revenue for the three months ended June 30,
2018 was $1,856,446, representing an increase of 1266.3% over
revenues of $135,875 in the same period last year. Revenue for the
six months ended June 30, 2018 was $4,779,836, representing an
increase of 1706.9% over revenues of $264,528 in the same period
last year. This increase is primarily a result of the acquisitions
completed in the period and the inclusion of such revenues which
include $1,613,362 of perpetual license revenue sold to a customer
for the HI Next software in the period
- Adjusted EBITDA for the three months ended
June 30, 2018 was $20,692 compared to adjusted EBITDA of ($435,616)
in the previous period. For the six months ended June 30, 2018
adjusted EBITDA was $771,568 compared to ($719,623) in the previous
period. Adjusted EBITDA is a non‐IFRS measure.
- Annualized Contract Value (“ACV”) of recurring
revenue. The Company defines ACV of recurring revenue as
the contracted annual renewable software license fees and
maintenance services. The ACV of recurring revenue at June 30, 2018
was $4,010,706 as compared to $3,745,490 at March 31, 2018, an
increase of 7%. This growth is due to several new contracts signed
in the quarter. ACV is a non‐IFRS measure.
- Beginning in April the Company has listed on the
Frankfurt Stock Exchange under the trading symbol 6OV.
This marks another step forward to increasing the Company’s
international profile and facilitating investment by European
investors.
- On May 8, 2018, the Company announced that Ernst &
Young LLP (“EY Canada”) Health Practice formally agreed to work
together on a co‐marketing initiative to bring WellLinc to market
on a global basis. The WellLinc solution uses blockchain
technology to enable the secure and interoperable exchange of
electronic health data, across the continuum of care. The
relationship with EY Canada Health Practice will afford the Company
with reach and access into significant global distribution networks
across the target customer demographic.
- During the quarter, the first sale of WellLinc, the
Company’s proprietary Blockchain as a Service (“BaaS”) solution was
licensed by Bluewater Health and the Canadian Mental Health
Association of Lambton‐Kent. EY Canada Health Practice is
collaborating with the Company on this project and is exploring an
outcomes‐based ROI analysis of the impact of WellLinc, that will be
used to support design decisions as the Company rolls‐out and
further expands the solution into new geographies.
- During the period, the Company announced the
introduction and first sale of its harm‐reduction module.
The solution will be used to support a program by the Injection
Drug Users Health Alliance (“IDUHA”) in New York State. The
solution has been licensed to 7 of the 22 IDUHA Community Health
Agencies, that are existing customers, to be implemented to support
the rollout of Medicaid‐sponsored harm reduction program that goes
live July 1, 2018.
- The Company signed several additional contracts in the
quarter including: Saint Luke’s Place, ON, Canada; Golden
Dawn Senior Citizens Home, ON, Canada; and the Region of Waterloo
Senior’s Service Division, ON, Canada.
ABOUT VITALHUB:VitalHub develops and supports
mission‐critical healthcare information systems in the Mental
Health (Child, Youth and Adult), Long Term Care, Community Health
Service, Home Health and Hospital sectors. VitalHub technologies
include Blockchain, Mobile, and Web‐Based Assessment and EHR
solutions.
VitalHub's aim is to create high‐value, secured
solutions enabling interoperability among existing health data
systems. VitalHub is primarily focused on working with
organizations in the Mental Health, Acute and Long‐Term Care space,
to further extend organization's applications across the continuum
of care, powered by the security, efficiency, and trust of
Blockchain technology.
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 200+ participants across North America. 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 STATEMENTThe TSX Venture Exchange has
in no way passed upon the merits of the transactions and has
neither approved nor disapproved the contents of this press
release. Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this press release.
CONTACT INFORMATIONDan MatlowChief Executive
Officer, Director (416) 727‐9061dan.matlow@vitalhub.com
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