TDThis is a flash report and their current target is $7.50.
And Sunset - once again, put the BUTT on ignore and move on. GLTA
WELL Health Technologies Corp.
(WELL-T) C$5.30
Q1/F23 First Take: Another Beat and Raise
Event
This morning, WELL released its Q1/F23 results. Conference call: 1:00 pm ET; 1-888-664-6383. Impact: POSITIVE
Delivers yet another beat... WELL reported better-than-expected Q1/F23 results with revenue of $169.4mm (TD: $159.2mm/consensus: $159.7mm), and Adjusted EBITDA of $26.7mm (TD: $23.5mm/consensus: $24.9mm).
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Revenue grew 34% y/y and 8% q/q.
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Organic growth accelerated to 21% y/y, up from 15% last year and 20% last quarter.
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Canadian Patient Services revenue of $50.9mm (up 23% y/y).
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U.S. Patient Services revenue of $99.2mm (up 38% y/y).
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SaaS and Technology Services revenue of $19.3mm (up 47% y/y).
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Adjusted EBITDA margin was 15.7% (in-line with consensus at 15.6%), down from 19.0% last year and 17.4% last quarter, primarily due to revenue mix (higher contribution from rapidly growing but lower margin Circle/Wisp), increased ad spending to help drive the very strong organic growth at Circle/Wisp, and ongoing cost/wage inflation.
WELL achieved its Rule of 30 target for a seventh consecutive quarter.
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Adjusted FCF to shareholders was $10.8mm.
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Net debt to shareholder Adjusted EBITDA was 2.6x (down from 3.5x last year).
...and raise. WELL increased its F2023 revenue guidance and reaffirmed its Adjusted EBITDA outlook.
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Revenue of $690mm-$710mm (TD: $673.9mm/consensus: $673.1mm).
Up from $665mm-$685mm and implies ~21-25% growth. It only includes announced acquisitions.
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Adjusted EBITDA growth of >10%, which implies >$115mm in Adjusted EBITDA (TD: $116.2mm/consensus at $115.4mm).
Implies Adjusted EBITDA margins of ~16.5% at the mid-point of the revenue guidance.
The increased revenue guidance but unchanged Adjusted EBITDA guidance suggests to us that much of the increase in the revenue guidance is being driven by management's expectations of continued strong growth at Circle/Wisp.
Our take. WELL's share price has surged >85% this year, although it has pulled back by ~10% in the past week. We believe the solid Q1/F23 beat and increased revenue guidance should help reverse the recent share price weakness and also further reinforces our view that management's continued superior execution should help the stock outperform.