2nd Quarter organic revenue increased by 43% year-over-year
Kovo completes 10th consecutive quarter of positive Adjusted EBITDA
Year-over-year revenue for the 3 and 6 months ended June 30, 2021
increased 21% and 32%
Kovo HealthTech Corporation (the "
Company"
“Kovo”) (TSXV: KOVO) — a leader in healthcare technology and Revenue Cycle Management (“RCM”) software and services — today announced financial results for its fiscal 2021 quarter ending June 30, 2021.
Kovo posted 43% year-over-year (YOY) quarterly organic revenue growth on its core RCM software and services business. The Company remains on-track to meet guidance
of between USD$4,700,000 to USD$5,100,000 for the year ending December 31, 2021 — which it expects to translate into revenue growth in the range of 56% to 69% versus 2020.
Second Quarter Highlights Reported in USD$ unless otherwise specified - Revenue for the three and six months ended June 30, 2021 was $931,000 and $1,751,000 — 21% and 32% higher than revenues of $772,000 and $1,330,000 for the three and six months ended June 30, 2020.
- Quarterly RCM organic revenue increased by 43% year-over-year (“YOY”), primarily due to the on-boarding of two new healthcare clients, consistent with Kovo’s focus on larger, higher margin customers for its core RCM software and services business. This growth is in-line with the Company’s previously disclosed guidance target for the quarter.
- The Company completed its 10th consecutive quarter of positive Adjusted EBITDA reflecting the long-term operating discipline with the organization.
- Adjusted EBITDA* increased to $60,000 for the three months ended June 30, 2021; relative to Adjusted EBITDA of $33,000 for the three months ended June 30, 2020. The increase in Adjusted EBITDA reflects the impacts of organic growth from new RCM customers.
- Kovo’s recurring revenue business currently generates Annual Recurring Revenue (“ARR”) of $6,000,000 based on estimated August revenues of $500,000, including the company’s recently completed acquisition of Midwest Medical Billing, Service Inc.
“This quarter was filled with milestones as our team took the company public, completed and
smoothly integrated an acquisition in less than one month — all while staying disciplined and focused on the bottom line and delivering a strong quarter,” says CEO Greg Noble. “I’m proud of our team’s work to grow organic revenue growth on our core RCM software and services business by over 40% this quarter, while simultaneously adding instant, accretive growth through an important strategic acquisition,” he says, adding that the Company’s leadership team and Board continues to seek and explore potential acquisition opportunities.
Investor Call – August 12, 2021 – 8:30am ET An Investor Call will be hosted by Kovo CEO Greg Noble, Executive Chairman Dr. Peter Bak and CFO Inder Saini on Thursday, August 12
th at 8:30 am ET.
Investors are invited to contact
investors@kovo.co for more information.
Detailed Quarterly financials and the Company’s Management Discussion and Analysis can be accessed at
www.sedar.com About Revenue Cycle Management (RCM) Kovo HealthTech Corporation is a growing healthcare technology company that specializes in RCM services and software for US healthcare clinics, hospitals and private practices. RCM is a process used by healthcare providers in the US and globally to digitally track and manage patient care registration, services, billing and payments in a seamless way.
Effective RCM practices are essential to ensure health care settings maintain the financial viability that allows them to provide ongoing quality care for their patients. The Company’s focus is organic growth of its core RCM business and acquiring profitable RCM related businesses and systems within the US. Kovo optimizes acquired businesses by leveraging its over 20 years of operating experience and proprietary technology. To learn more about Kovo and to keep up-to-date on Kovo news, visit
www.kovo.co