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

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

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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WELL Health Technologies Corp > TD

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Post by retiredcf on Nov 07, 2024 9:04am

TD

Have an $8.00 target. GLTA

Q3/F24: THE BEATS GO ON; STRONG ORGANIC GROWTH WITH IMPROVING MARGINS

THE TD COWEN INSIGHT

WELL continues to deliver superior execution, with its Q3 results maintaining its >5-year streak of beating consensus, and it raised F2024 revenue guidance again. Organic growth remains robust (23% y/y) and Adj. EBITDA margins (13.0%) continue to rebound. Wisp/ Circle are generating very strong and profitable organic growth, with their strategic reviews ongoing and representing key NT catalysts.

Event: This morning, WELL reported its Q3/F24 results. Conference Call: 1:00 p.m. ET (Dial- in: 1-888-664-6383).

Impact: SLIGHTLY POSITIVE

Delivers yet another beat. Q3/F24 revenue and Adjusted EBITDA beat consensus by ~2%, with revenue of $251.7mm (TD: C$247.1mm/consensus: C$247.8mm) and Adjusted EBITDA of $32.7mm (TD: C$32.6mm/consensus: C$32.0mm).

Continued strong organic growth at Circle and Wisp helped drive the modest revenue beat. Revenue grew 23% y/y (27% y/y from continuing operations).

Organic growth of 23% y/y, with M&A growth of 4% offset by the impact of divestitures.

Canadian Patient Services revenue of C$78.0mm (up 35% y/y).
This week, WELL launched a new weight care and GLP-1 offering in Canada via Tia Health virtual care. This follows Wisp's launch in 20 states last month.

U.S. Patient Services revenue of C$158.2mm (up 21% y/y).

Circle Medical revenue of ~$36.6mm, up 61% y/y organically with positive Adjusted EBITDA margins.
Wisp revenue of ~$26.9mm, up 35% y/y organically. SaaS and Technology Services revenue of C$15.6mm (up 19% y/y, adjusting for the sale of Intrahealth). >$1B annual revenue run-rate achieve one quarter ahead of its target of Q4/F24.

Adjusted EBITDA margin was 13.0%, up from 12.7% last quarter.
1.48mm patient visits in Canada and the U.S., up 41% y/y. F2024 revenue guidance increased again.

Revenue of C$985mm-C$995mm (TD: $983.9mm/consensus: C$982.9mm).

Increased from C$970mm-C$990mm previously and does not include unannounced acquisitions.
Implies ~27%-28% y/y growth.

Adjusted EBITDA was unchanged, with it expected to be in the upper range of its initial guidance of C$125mm-C$130mm (TD: C$127.6mm/consensus: C$127.3mm).
- Represents ~12.5%-15% growth.
- At the mid-point, it implies ~13.0% margins for F2024E and continued solid margin
  
  expansion, with implied Q4/F24E margins of ~14%.
FCFA2S of ~$55mm (unchanged).

Implies ~30% y/y growth.

Robust near-term M&A pipeline. WELL indicated its M&A pipeline is the strongest it has ever had, with 17 signed LOIs and definitive agreements pending close that account for > $100mm in revenue. These deals are heavily focused on its Canadian business.

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