CLOUDMD REPORTS RECORD FOURTH QUARTER 2020 REVENUE; ON TRACK CLOUDMD REPORTS RECORD FOURTH QUARTER 2020 REVENUE; ON TRACK FOR SIGNIFICANT GROWTH IN 2021
CloudMD Software & Services Inc. has released its financial results for the fourth quarter and year ended Dec. 31, 2020. All financial information is presented in Canadian dollars unless otherwise indicated.
Dr. Essam Hamza, chief executive officer of CloudMD, commented: "I am very pleased with our fourth quarter and full-year 2020 financial results which are consistent with our internal and consensus estimates. The fourth quarter was a foundation-building quarter for CloudMD with the completion of five strategic acquisitions and the launch of our enterprise health solutions division. I am proud that we have seen healthy organic growth across all verticals of our business despite the long closures due to COVID-19. As we see communities starting to reopen, in addition to the majority of the acquisitions closing in first quarter 2021 and the rollout of our fully connected health care ecosystem, we expect to see significant revenue growth in the upcoming quarters." Dr. Hamza continued: "We have a current revenue run rate of over $120-million, which does not account for any of the organic growth and cross selling synergies we are anticipating this year. In addition, we are also expecting to be adjusted EBITDA-positive in the latter half of 2021 with healthy gross margins. We are well positioned as leaders in the digital health care space and I am very excited to see the continued growth of our business in 2021."
Fourth quarter 2020 financial highlights
- Q4 2020 revenue was $5.8-million, compared with $2.4-million in Q4 2019. The increase is primarily attributable to acquisition growth with five acquisitions completed in the quarter. Excluding the impact of business acquisitions, the company achieved organic growth across all of its businesses, aided by: (1) market adoption of telehealth services; (2) new product features and enhancements to the company's digital platforms; and (3) positive impact from marketing campaigns.
- Q4 2020 gross margin was 40 per cent, compared with 44 per cent in Q4 2019. In the current year, the company reclassified certain expenses within its income statement to cost of sales, which resulted in an overall decrease in gross margin as compared with Q4 2019. Excluding the impact of the reclassification, gross margin for the underlying businesses remained healthy and stable.
- Net comprehensive loss attributable to equity holders of the company in Q4 2020 was $5.2-million or five cents per share, compared with $1.5-million or two cents per share in Q4 2019. In the quarter, the company completed numerous strategic initiatives, including the completion of five acquisitions in the quarter and raising $37.3-million in a bought deal short form prospectus offering, which it expects to result in strong future growth of the company.
- Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was a loss of $1.5-million for Q4 2020, compared with a loss of $600,000 in Q4 2019. The adjusted EBITDA calculation adjusts for share-based compensation, costs related to financing, acquisitions and litigation including associated loss provisions, change in fair value of contingent consideration, and loss from discontinued operations. Adjusted EBITDA is used by management to evaluate the company's cash operating performance.
- Cash and cash equivalents as at Dec. 31, 2020, were $59.7-million. Subsequent to Dec. 31, 2020, the company raised $58.2-million in a bought deal short form prospectus offering in March, 2021, and the company's current cash balance is approximately $100-million.