Bullboard - Stock Discussion Forum WELL Health Technologies Corp T.WELL

Alternate Symbol(s): T.WELL.DB | WHTCF

Healthcare

WELL Health Technologies Corp. is a practitioner-focused digital healthcare company. The Company develops technologies, services, and support available, which ensures healthcare providers are empowered to positively impact patient outcomes. Its business units include Canadian Patient Services, WELL Health USA Patient Services and SaaS and Technology Services. WELL Health USA Patient and... see more

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TSX:WELL - Post Discussion

WELL Health Technologies Corp > TD

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Post by retiredcf on Mar 21, 2023 10:36am

TD

Remain cautious while they maintain their target of $7.50. But a nice closing summary. GLTA

WELL Health Technologies Corp.

(WELL-T) C$4.10

Q4/F22 First Take: Another Beat; F2023 Guidance Looks Solid

Event

This morning, WELL released its Q4/F22 results.
Conference call: 1:00 pm ET; 1-888-664-6383; Conf. ID: 2519 7474. Impact: NEUTRAL

Another beat. WELL reported slightly better-than-expected Q4/F22 results with revenue of $156.5mm (TD: $154.2mm/consensus: $153.8mm), and Adjusted EBITDA of $27.2mm (TD: $25.4mm/consensus: $26.7mm).

Revenue grew 35% y/y and 7% q/q.
F2022 organic growth was 19% y/y which we believe implies Q4/F22 organic

growth at a similar level.

Adjusted EBITDA margin was 17.4%, modestly down from recent quarters due to ongoing cost/wage inflation and investments to drive strong organic growth.
WELL's surpassed its Rule of 30 target for a sixth consecutive quarter.

F2023 guidance implies continued strong and profitable organic growth.

Revenue of $665mm-$685mm (TD: $645.0mm/consensus: $652.5mm), which implies ~17-20% growth.
Adjusted EBITDA growth of >10%, which implies >$115mm in Adjusted EBITDA (TD: $115.9mm/consensus at $118.6mm).

We believe the revenue guidance indicates that management expects continued strong organic growth at Circle Medical/Wisp in particular, as we assume the 4-8 clinic acquisition target previously included in its F2023 exit revenue target is unchanged.

The Adjusted EBITDA growth guidance could be viewed as a bit disappointing, as management continues to invest for organic growth leading to potentially weaker- than-expected margins (~17% vs. TD/consensus at ~18%). We note that the guidance is a minimum expected growth rate and that management has typically been conservative with guidance (helping lead to a >3 year streak of beating expectations), so we are not too concerned about the slightly lower-than-expected Adjusted EBITDA growth guidance. Also, M&A could help narrow the gap vs. current consensus, with WELL looking to be much more active this year with a focus on further consolidating the Canadian primary care clinic space.

FCF to shareholders is expected to continue strengthening, which should allow WELL to deploy more capital to fund its M&A strategy and further deleverage.

The guidance implies that management expects to meet/exceed its Rule of 30 target in F2023.

Our take. We believe management continues to execute very well on its disciplined organic and M&A growth strategy, as highlighted by another strong financial performance in Q4/F22 and its solid F2023 guidance.