CLOUDMD REPORTS RECORD REVENUE OF $8.8 MILLION IN 1ST QUART - Q1 2021 revenue of $8.8 million; an increase of 187% compared to Q1 2020 and 51% compared to Q4 2020.
- Q1 2021 gross margin 1 of 41% attributable to strong revenue mix.
- Closed 5 acquisitions in Q1 2021, providing the foundation for scale and growth across North America and Europe.
- Closed Aspiria and Rxi subsequent to Q1 2021 and anticipated to close VisionPros and Oncidium in June 2021. These acquisitions are expected to add an additional $79 million in annual run rate revenue.
- Strong 2021 financial expectations with annualized revenue run rate exceeding $120 million and positive Adjusted EBITDA 1 in the second half of 2021.
VANCOUVER, British Columbia, May 27, 2021 (GLOBE NEWSWIRE) -- CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF, Frankfurt: 6PH) (the “ Company ” or “ CloudMD ”), a healthcare technology company revolutionizing the delivery of care, announced its financial results for the first quarter ended March 31, 2021. All financial information is presented in Canadian dollars unless otherwise indicated.
Dr. Essam Hamza, CEO of CloudMD commented, “ We are excited to share our record Q1 2021 financial results that continue to improve quarter over quarter. Q1 was a transformative period for CloudMD, as we closed 5 acquisitions, adding $13 million in annualized revenue and establishing the foundation for our Enterprise Health Solutions division. I am very proud of the strategic roadmap we have built and the team’s ability to execute on our growth strategy. We identified key acquisition targets that were synergistic to our overall vision and we remain focused on building a complete healthcare ecosystem, providing connected, holistic care. We continue to integrate all of our capabilities into one comprehensive platform, which is the foundation for scale and expansion. Within our Enterprise Health Solutions division, we have already seen significant early adoption and through cross-selling opportunities, attained over $5 million in new multi-year contracts in the first quarter. Equally exciting is that CloudMD already has a revenue run rate of over $120 million, and through highly profitable acquisitions coupled with organic growth and realization of cost synergies, we expect to be profitable in the second half of 2021.”
First Quarter 2021 Financial Highlights
- Q1 2021 revenue was $8.8 million, compared to $5.8 million in Q4 2020 and $3.1 million in Q1 2020. The increase is primarily attributable to acquisition growth with 5 acquisitions completed in the quarter, and 11 acquisitions completed in the last twelve months. Excluding the impact of Q1 business acquisitions, the Company achieved organic growth from its existing businesses.
- Q1 2021 gross margin was 41%, compared to 40% in Q4 2020 and 37% in Q1 2020. The increase is primarily attributable to revenue mix where higher margin revenues from Enterprise Health Solutions ( “EHS” ) and Digital Services made up a stronger percentage of overall revenues.
- Net comprehensive loss attributable to equity holders of the Company in Q1 2021 was $5.3 million or $0.03 per share, compared to $5.2 million or $0.04 per share in Q4 2020 and $1.6 million or $0.02 per share in Q1 2020. In the quarter, the Company completed numerous strategic initiatives, including the completion of 5 acquisitions in the quarter and raising $58.2 million in gross proceeds from a bought deal short form prospectus offering, which the Company expects will contribute to strong future growth of the Company.
- Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ( “Adjusted EBITDA” ) was a loss of $1.5 million in Q1 2021, compared to a loss of $1.5 million in Q4 2020 and a loss of $0.8 million in Q1 2020. The Adjusted EBITDA calculation adjusts for share-based compensation, costs related to financing, acquisitions, integration, litigation including associated loss provisions, and change in fair value of contingent consideration. Adjusted EBITDA is used by management to evaluate the Company’s cash operating performance, and a complete definition and calculation are provided further below.
- Cash and cash equivalents were $99.2 million as at March 31, 2021, compared to $59.7 million at December 31, 2020. In Q1 2021, the Company raised gross proceeds of $58.2 million in a bought deal short form prospectus offering in March 2021 and the Company’s current cash balance is approximately $95 million.
First Quarter & Subsequent Highlights
- During January 2021, the Company closed the previously announced acquisitions of HumanaCare, Medical Confidence and Canadian Medical Directory, strengthening the Company’s EHS division by adding a leading Employee Assistance Program and healthcare navigation platform.
- On February 8, 2021 the Company closed the acquisition of 51% of West Mississauga Medical Clinic, expanding the Company’s hybrid clinic footprint in Ontario.
- On February 16, 2021, the Company announced that it signed a binding term sheet to acquire VisionPros, a rapidly growing digital eyecare platform with a robust suite of digital vision care tools.
- In March 2021, the Company closed the short form prospectus offering, on a bought deal basis, including the full over-allotment option for total gross proceeds of $58.2 million.
- On March 18, 2021, the Company provided an update on the rapid growth of its Enterprise Health Solutions division, realizing over $5 million in new multi-year contracts since the beginning of 2021.
- On March 23, 2021, the Company announced that it closed the acquisition of IDYA4, the technology platform used to integrate all of our healthcare solutions, providing a fully automated, seamless patient experience.
- On April 6, 2021, the Company announced that it closed the acquisition of Aspiria, adding another leading Employee and Student-focused assistance program to the Company’s EHS division.
- On April 8, 2021, the Company announced that it entered into a binding term sheet to acquire Oncidium, creating one of the largest providers to the employer market in Canada.
- On May 12, 2021, the Company announced that it closed the acquisition of Rxi, a proprietary specialty drug management and patient support platform.
Outlook
The Company is focused on revolutionizing the healthcare industry by leveraging technology to digitalize its delivery in providing more efficient access to care and achieving better health outcomes. CloudMD is integrating its health technology solutions to build one, connected healthcare ecosystem that addresses all points of a patient’s care from one platform. The Company remains on track to launch a fully automated, connected solution later in 2021. This connected platform is the foundation for scale and growth and the Company will continue expanding its footprint across North America and strategically in Europe.
CloudMD’s current revenue run rate is over $120 million which does not take into consideration any expected organic growth or cross-selling synergies. CloudMD expects to see continued organic growth across all divisions of its business largely due to the integration of its health technology solutions and cross-selling synergies in the EHS division.
The Company has a strong cash position with approximately $95 million on hand, and approximately $35 million remaining after the closing of the acquisitions of VisionPros and Oncidium, which both are expected to close in June 2021. With a strong balance sheet, CloudMD is able to seek debt financing options to conserve cash and equity. The Company is on track to be profitable and expects to be Adjusted EBITDA-positive in the second half of 2021.
CloudMD will continue to focus on delivering meaningful shareholder value by executing on its growth strategy through accretive, synergistic acquisitions, achieving organic growth across all divisions, and the full integration of its healthcare solutions to provide one, connected platform that addresses all points of care for patients.
Selected Financial Information
All results were prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board.
| (in thousands of Canadian dollars) | Three months ended | |
| March 31, | |
| 2021 | 2020 | (%) |
| Revenue | $ | 8,775 | | $ | 3,057 | | 187 | % |
| Cost of sales | | (5,184 | ) | | (1,933 | ) | 168 | % |
| Gross profit (1) | | 3,591 | | | 1,124 | | 219 | % |
| Gross margin | | 40.9 | % | | 36.8 | % | |
| | | | | | |
| Expenses | | 9,132 | | | 2,765 | | 230 | % |
| Loss before other items | | (5,541 | ) | | (1,641 | ) | 238 | % |
| Other items, taxes, non-controlling interest | | 254 | | | 18 | | |
| Net comprehensive loss attributable to equity holders of the Company | | (5,307 | ) | | (1,623 | ) | 227 | % |
| Loss per share, basic and diluted | $ | (0.03 | ) | $ | (0.02 | ) | 50 | % |
(1) Gross profit is a non-GAAP measure as described in the Non-GAAP Financial Measures section of this News Release.
| (in thousands of Canadian dollars) | Three months ended | |
| March 31, | |
| 2021 | 2020 | (%) |
| Net comprehensive loss attributable to equity holders of the Company | $ | (5,307 | ) | $ | (1,623 | ) | 227 | % |
| Add: | | | | | |
| Interest and accretion expense | | 92 | | | 61 | | 50 | % |
| Income taxes | | 40 | | | - | | 100 | % |
| Depreciation and amortization | | 689 | | | 202 | | 242 | % |
| EBITDA (1) for the period | | (4,486 | ) | | (1,360 | ) | 230 | % |
| Share-based compensation | | 1,595 | | | 445 | | 258 | % |
| Financing-related costs | | 749 | | | 65 | | 1052 | % |
| Acquisition-related and integration costs, net | | 812 | | | 20 | | 4053 | % |
| Litigation costs and loss provision | | 103 | | | - | | 100 | % |
| Change in fair value of contingent consideration | | (315 | ) | | - | | -100 | % |
| Adjusted EBITDA for the period | $ | (1,542 | ) | $ | (830 | ) | 86 | % |
(1) EBITDA is a non-GAAP measure as described in the Non-GAAP Financial Measures section of this News Release.