VitalHub Achieves Record Revenues in Q3 2021 with ARR over $21.5 million
November 15 2021 - 11:59AM
VitalHub Corp. (the “Company” or “VitalHub”) (TSX: VHI) 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, 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,
“Although Q3 is traditionally a slower quarter
due to the summer months, we have continued to experience strong
organic growth and improved earnings year-over-year and
quarter-over-quarter. Despite experiencing some extraordinary costs
pertaining to our uplisting to the TSX and bank financing
transaction, we have continued to see operational and financial
improvement from the previous quarter. While the valuations of
digital health providers have experienced multiple compression in
recent months, we believe our status as a near pure SaaS-based
software company differentiates us significantly, and is
continually substantiated by improvements in key performance
indicators and our reported financials.”
The Company will be holding a conference call
via Zoom on November 16th, 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 Q3 2021
Conference Call or https://bit.ly/VitalHub-Q3-2021.
Third Quarter 2021
Highlights
- Revenue of $6,619,047, an increase
of $3,426,881 or 107% from the comparative period in the prior
year.
- Gross profit as a percentage of
revenue for Q3 2021 was 82% compared to 81% in Q3 2020 and 77%
compared to Q2 2021.
- ARR (1, 2) grew by $1,811,726 to
$21,569,032, achieving 9% growth in Q3 2021 versus Q2 2021.
- ARR (1) consists of $513,488 or
2.60% organic growth and $1,298,238 or 6.57% acquisition growth in
Q3 2021 versus Q2 2021.
- Net (loss) of ($575,792) compared
to a net loss of ($1,065,505) from the comparative period in the
prior year.
- EBITDA (2) of $189,088 compared to
($419,362) from the comparative period in the prior year.
- Adjusted EBITDA (Non-IFRS measure)
of $1,277,573, or 19% of revenue, compared to $502,595 or 16% of
revenue from the comparative period in the prior year.
- Cash on hand at September 30, 2021
was $15,704,130 compared to $23,391,946 as at December 31,
2020.
- Cashflows from operations before
changes in working capital was $1,394,927 for the period as
compared to $352,464 for the same period last year.
- During the quarter the Company
arranged a $10,000,000 acquisition debt facility from the
technology and Innovation banking division of The Bank of Nova
Scotia.
- On September 23, 2021 the Company
commenced trading on the Toronto Stock Exchange (“TSX”). The common
shares were previously listed on the TSX Venture Exchange (“TSXV”)
since December 2, 2016.
Q3 2021 and 2020 Results
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Three months ended |
Nine months ended |
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September 30, 2021 |
% Revenue |
September 30, 2020 |
% Revenue |
Change |
September 30, 2021 |
% Revenue |
September 30, 2020 |
% Revenue |
Change |
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|
$ |
|
$ |
|
% |
$ |
|
$ |
|
% |
|
Revenue |
6,619,047 |
|
100 |
% |
3,192,166 |
|
100 |
% |
107 |
% |
17,734,300 |
|
100 |
% |
8,711,060 |
|
100 |
% |
104 |
% |
|
|
|
|
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|
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|
Cost of sales |
1,174,244 |
|
18 |
% |
618,482 |
|
19 |
% |
90 |
% |
3,773,770 |
|
21 |
% |
2,264,839 |
|
26 |
% |
67 |
% |
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Gross Profit |
5,444,803 |
|
82 |
% |
2,573,684 |
|
81 |
% |
112 |
% |
13,960,530 |
|
79 |
% |
6,446,221 |
|
74 |
% |
117 |
% |
|
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Operating Expenses |
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General and administrative |
1,361,762 |
|
21 |
% |
680,030 |
|
21 |
% |
100 |
% |
3,638,214 |
|
21 |
% |
2,019,506 |
|
23 |
% |
80 |
% |
|
Sales and marketing |
974,506 |
|
15 |
% |
433,933 |
|
14 |
% |
125 |
% |
2,646,543 |
|
15 |
% |
896,725 |
|
10 |
% |
195 |
% |
|
Research and development |
1,875,775 |
|
28 |
% |
859,192 |
|
27 |
% |
118 |
% |
4,328,219 |
|
24 |
% |
1,992,248 |
|
23 |
% |
117 |
% |
|
Depreciation |
42,625 |
|
1 |
% |
29,598 |
|
1 |
% |
44 |
% |
117,314 |
|
1 |
% |
82,961 |
|
1 |
% |
41 |
% |
|
Depreciation of right-of-use assets |
71,006 |
|
1 |
% |
55,495 |
|
2 |
% |
28 |
% |
201,769 |
|
1 |
% |
162,341 |
|
2 |
% |
24 |
% |
|
Stock based compensation |
484,226 |
|
7 |
% |
101,720 |
|
3 |
% |
376 |
% |
1,088,306 |
|
6 |
% |
189,493 |
|
2 |
% |
474 |
% |
|
Foreign currency loss (gain) |
(44,469 |
) |
(1 |
%) |
97,934 |
|
3 |
% |
(145 |
%) |
148,311 |
|
1 |
% |
(1,394 |
) |
(0 |
%) |
(10736 |
%) |
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Other Income and Expenses |
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Amortization of intangible assets |
637,685 |
|
10 |
% |
541,129 |
|
17 |
% |
18 |
% |
1,618,502 |
|
9 |
% |
1,427,604 |
|
16 |
% |
13 |
% |
|
Business acquisition, restructuring and integration
costs |
604,259 |
|
9 |
% |
820,237 |
|
26 |
% |
(26 |
%) |
1,463,345 |
|
8 |
% |
1,075,803 |
|
12 |
% |
36 |
% |
|
Interest expense and accretion (net of interest
income) |
(7,292 |
) |
(0 |
%) |
(59 |
) |
(0 |
%) |
12177 |
% |
(25,584 |
) |
(0 |
%) |
9,210 |
|
0 |
% |
(378 |
%) |
|
Interest income from sublease |
0 |
|
0 |
% |
(404 |
) |
(0 |
%) |
(100 |
%) |
0 |
|
0 |
% |
(1,703 |
) |
(0 |
%) |
(100 |
%) |
|
Interest expense from lease liabilities |
20,856 |
|
0 |
% |
18,509 |
|
1 |
% |
13 |
% |
64,236 |
|
0 |
% |
58,790 |
|
1 |
% |
9 |
% |
|
Loss on disposal of property and equipment |
(344 |
) |
(0 |
%) |
0 |
|
0 |
% |
0 |
% |
2,153 |
|
0 |
% |
0 |
|
0 |
% |
100 |
% |
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Current income taxes |
0 |
|
0 |
% |
1,875 |
|
0 |
% |
100 |
% |
10,071 |
|
0 |
% |
(14,859 |
) |
(0 |
%) |
(168 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
(575,792 |
) |
(9 |
%) |
(1,065,505 |
) |
(33 |
%) |
(46 |
%) |
(1,340,869 |
) |
(8 |
%) |
(1,450,504 |
) |
(17 |
%) |
(8 |
%) |
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|
EBITDA (Non-IFRS measure) |
189,088 |
|
3 |
% |
(419,362 |
) |
(13 |
%) |
(145 |
%) |
645,439 |
|
4 |
% |
273,840 |
|
3 |
% |
136 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (Non-IFRS
measure) |
1,277,573 |
|
19 |
% |
502,595 |
|
16 |
% |
154 |
% |
3,197,090 |
|
18 |
% |
1,539,136 |
|
18 |
% |
108 |
% |
|
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|
Annualized Recurring Revenue (Non-IFRS
measure) |
21,569,032 |
|
|
7,491,841 |
|
|
188 |
% |
21,569,032 |
|
|
7,491,841 |
|
|
188 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring revenue (Non-IFRS
Measure) |
5,462,774 |
|
83 |
% |
2,479,513 |
|
78 |
% |
120 |
% |
13,960,056 |
|
79 |
% |
6,125,295 |
|
70 |
% |
128 |
% |
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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 MatlowChief Executive Officer, Director(416)
727-9061dan.matlow@vitalhub.com
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