On November 14, WELL reported its Q3, 2023 results. The company posted Adjusted EBITDA of $28.2-million on revenue of $204.5-million, a topline that was up 40.2 per cent at the time of publication.
“Q3 was an outstanding quarter for us, as we achieved record patient visits, Adjusted EBITDA(1) and posted our first quarter ever with more than $200M in revenues,” CEO Hamed Shahbazi said. “While all our business units are executing extremely well, our Canadian business grew its Adjusted EBITDA by 24 per cent and shows no signs of slowing down. We are expecting to have strong performance for the remainder of 2023 and into next year. We are ahead of our plan for reaching one billion in revenue and feel confident in introducing our guidance for 2024 of achieving over $900-million in annual revenue driven by organic growth. The backbone of our success has been the company’s continued focus on tech enabling health care providers and supporting them in simplifying their work lives, modernizing, and digitizing their clinical practices and delivering the best health care possible.”
Leung says he believes WELL is looking to grow its topline aggressively, pointing to the company’s 2024 revenue guidance of more than $900-million.
“We believe the company’s near-term focus will be on increasing market share rather than margin accretion given the significant land grab opportunity (notably in Canadian primary care), along with the sticky nature of its service offering,” the analyst said. “Overall, we believe Q3 results were another positive data point highlighting the company’s healthy organic growth augmented by M&A. While margin improvements might be muted over the near term due to organic / M&A growth investments, we believe it will ultimately to the benefit of the company’s competitive positioning.”
In a research update to clients November 14, Leung maintained his “Buy” rating but raised his one-year price target on the stock from $6.25 to $7.00, implying a return of 59 per cent at the time of publication.
The analyst thinks WELL will post revenue of $766-million in fiscal 2023. He expects the topline will improve to $911.4-million the following year.
https://www.cantechletter.com/2023/11/well-stock-wins-price-target-raise-at-beacon/#