WELL Health Reports Record Revenue Results for Q4 and Full Year 2022 and Provides Strong Growth Outlook for 2023

• WELL achieved record annual revenue of $569.1 million for 2022, an increase of 88% compared to the prior year. WELL achieved record quarterly revenues of $156.5 million in Q4-2022, an increase of 35% as compared to Q4-2021.
• For the full year, WELL achieved record annual Adjusted EBITDA of $104.6 million, an increase of 73% as compared to 2021. WELL achieved Adjusted EBITDA(1) of $27.2 million in Q4-2022, an increase of 6% as compared to Q4-2021 which included more than $2 million of pandemic related government incentives.
• WELL achieved a total of approximately 3.5 million omni-channel patient visits and 4.9 million patient interactions in 2022. Omni-channel patient visits grew 50% in 2022 compared to the prior year, and total patient interactions grew 86% over the same time period.
• WELL is pleased to provide a healthy growth outlook for 2023 with guidance for annual revenue between $665 million and $685 million. The Company expects Annual Adjusted EBITDA to increase by more than 10% over 2022 levels as the Company invests in sustained profitable growth.

VANCOUVER, BC, March 21, 2023/PRNewswire/ - WELL Health Technologies Corp. (TSX: WELL) (OTCQX: WHTCF) (the "Company" or "WELL"), a digital healthcare company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, is pleased to announce its audited consolidated financial results for the fiscal year and fourth quarter ended December 31, 2022.

Hamed Shahbazi, Chairman and CEO of WELL commented, "We had an outstanding year, demonstrating strength across all our key operational and patient metrics and reflected continued elevated organic growth of 19% on a YoY basis. Our technology and IP rich virtual services segment continued to lead the way with 154% YoY growth which reflects both our SAAS services as well as our digital patient services businesses. Our record revenue and increasing patient visits are a testament to the Company's continued focus on delivering high quality, NPS (Net Promoter Score) leading, accessible and innovative healthcare solutions."

Mr. Shahbazi further added, "WELL's committed and passionate high-performance team delivered $104.6 million in operating Adjusted EBITDA and $48.8 million in Adjusted Free Cash Flow(1) to shareholders in 2022. With our contingent liabilities and deferred acquisition costs decreasing and our core cash flow increasing, we are in an excellent position to continue to have the option to allocate capital into new growth initiatives and/or further de-lever our debt position. With our leadership position in the digital healthcare industry and continued cash flow generation, we are well-positioned for continued success in 2023 and beyond."

Eva Fong, WELL's CFO commented, "We are very pleased to report that in fiscal 2022, 96% of WELL's $569.1M in revenues were either recurring or highly re-occurring in nature. WELL's recurring or subscription related revenues grew to 10% of total revenues and our highly re-occurring patient services revenue accounted for 86% of total revenues. We are building shareholder value by demonstrating a rapidly growing and highly predictable tech enabled enterprise."

Fiscal 2022 Annual Financial Highlights:

• Total revenue for the year ended December 31, 2022, was $569.1 million, compared to total revenue of $302.3 million for the prior year, an increase of 88% driven by acquisitions and organic growth during the past year.
• Omni-channel patient services revenue was $376.8 million in 2022, an increase of 66% as compared to omni-channel patient services revenue of $226.7 million in 2021.
• Virtual Services revenue was $192.4 million in 2022, an increase of 154% as compared to Virtual Services revenue of $75.6 million in 2021.
• Adjusted Gross Profit(1) was $303.2 million in 2022, an increase of 97% as compared to Adjusted Gross Profit(1) of $153.7 million in 2021.
• Adjusted Gross Margin(1) percentage was 53.3% in 2022, as compared to Adjusted Gross Margin(1) percentage of 50.8% in 2021. The increase in Adjusted Gross Margin(1) percentage is mainly due to the addition of higher margin CRH, MyHealth and Virtual Services revenue over the past year.
• Adjusted EBITDA(1) was $104.6 million in 2022, an increase of 73% as compared to Adjusted EBITDA(1) of $60.4 million in 2021.
• Adjusted EBITDA to WELL shareholders was $76.6 million in 2022, an increase of 83% as compared to Adjusted EBITDA to WELL shareholders of $42.0 million in 2021.
• Adjusted Net Income(1) was $53.7 million, or $0.24 per share in 2022, an increase of 228% as compared to Adjusted Net Income(1) of $16.4 million, or $0.09 per share in 2021.

Fourth Quarter 2022 Financial Highlights:

• WELL achieved record quarterly revenue of $156.5 million in Q4-2022, an increase of 35% as compared to revenue of $115.7 million generated in Q4-2021. This growth was driven by acquisitions and organic growth during the past year.
• Omni-channel patient services revenue was $102 million in Q4-2022, an increase of 21% as compared to omni-channel patient services revenue of $84.3 million in Q4-2021.
• Virtual Services revenue was $54.5 million in Q4-2022, an increase of 74% as compared to Virtual Services revenue of $31.3 million in Q4-2021.
• Adjusted Gross Profit(1) was $80.2 million in Q4-2022, an increase of 26% as compared to Adjusted Gross Profit(1) of $63.5 million in Q4-2021.
• Adjusted Gross Margin(1) percentage was 51.3% during Q4-2022 compared to Adjusted Gross Margin(1) percentage of 54.9% in Q4-2021.
• Adjusted EBITDA(1) was $27.2 million in Q4-2022, an increase of 6% as compared to Adjusted EBITDA(1) of $25.7 million in Q4-2021 which was supported by more than $2 million in pandemic related government incentives.
• Adjusted EBITDA to WELL shareholders was $21.1 million in Q4-2022, an increase of 18% as compared to Adjusted EBITDA to WELL shareholders of $17.8 million in Q4-2021.
• Adjusted Net Income(1) was $12.5 million, or $0.05 per share in Q4-2022, as compared to Adjusted Net Income(1) of $10.1 million, or $0.05 per share in Q4-2021.

Fourth Quarter and Annual 2022 Patient Visit Metrics:

WELL achieved a total of 991,268 omni-channel patient visits in Q4-2022, representing a year-over-year increase of 42% compared to Q4-2021, and an 11% increase compared to Q3-2022. In addition, WELL conducted 180,342 diagnostic visits in Q4-2022, and completed 186,045 asynchronous patient consultations. Combining WELL's omni-channel patient visits, diagnostic visits and asynchronous patient consultations, WELL achieved a total of 1,357,655 patient interactions in Q4-2022.

For the full year, WELL achieved a total of approximately 3.5 million omni-channel patient visits and 4.9 million patient interactions in 2022. Omni-channel patient visits grew 50% in 2022 compared to the prior year, and total patient interactions grew 86% over the same period. This growth was driven through a combination of acquisitions and organic growth.

Fourth Quarter 2022 Business Highlights:

On November 1, 2022, the Company completed the acquisition Cloud Practice Inc. ("Cloud Practice") and three primary care clinics located in the province of British Columbia from CloudMD Software & Services Inc. for total consideration of $5.75 million subject to post-closing working capital and holdback adjustments. The assets acquired with Cloud Practice includes OSCAR based Juno EMR and ClinicAid billing software application.

Events Subsequent to December 31, 2022:

On March 1, 2023, the Company completed the acquisition of 51% interest in Affiliated Tampa Anesthesia Associates, LLC ("ATAA") for cash consideration of $6.1 million plus transaction costs. ATAA services two ASCs and is staffed by thirty-four credentialled practitioners.

On March 2, 2023, the Company's venture capital arm, WELL Ventures led an investment round alongside its partner Horizon Ventures and a syndicate of leading venture capital firms, in doctorly GmbH ("doctorly"), a medical practice management software provider based in Germany. doctorly provides a fully centralised, cloud powered, GDPR compliant, medical practice operating system that dramatically reduces the time and effort doctors and medical assistants spend on day-to-day administrative tasks. As part of the investment and strategic alliance agreements, the Ocean platform, created by WELL's wholly owned subsidiary OceanMD, will be used as the exclusive booking and practice engagement platform for doctorly. This will be WELL's first commercial launch into the European market.

Outlook:

WELL's outlook continues to be positive and resilient for 2023. The Company is poised to achieve significant growth while effectively managing its costs and delivering sustained growth in cashflow available to shareholders. Management is pleased to provide the following guidance for 2023:

• Annual revenue between $665 million and $685 million, representing 17% to 20% annual growth as compared to 2022. This revenue guidance only includes announced acquisitions.
• Annual Adjusted EBITDA is expected to increase by more than 10% over 2022 levels allowing the company to invest in growth and continue to acquire market share.

WELL's strong organic growth and robust cash flow profile allows the Company to continue to successfully execute on its acquisition plans. Management expects additional cash flows generated by the Company will continue to be re-invested in the business and allocated in a disciplined manner, which may come in the form of further acquisitions, debt repayments, share repurchases, and/or to accelerate organic growth.

WELL is expecting to have strong performance in 2023 across all its business units and for the entire Company as a whole. Despite the current geo-political, inflationary, and turbulent economic environment, the Company does not foresee any material influences or challenges that would impair its ability to deliver solid results in 2023. Many of the key variables inherent in the execution of WELL's business are firmly in its own grasp and not dependent on outside factors.

WELL is a purpose-driven business that aims to transform the world for the better, as such the Company has embarked on an ongoing ESG (Environmental, Social and Governance) program. The Company plans on publishing its annual ESG report in mid-2023 highlighting WELL's ESG strategy, reporting initiatives and targeted actions. Please see more information on WELL's ESG program at: https://well.company/esg-report/

Conference Call:

WELL will hold a conference call to discuss its 2022 Fourth Quarter and Annual financial results on Tuesday, March 21, 2022, at 1:00 pm ET (10:00 am PT). Please use the following dial-in numbers: 416-764-8650 (Toronto local), 778-383-7413 (Vancouver local), 1-888-664-6383 (Toll-Free) or +1-416-764-8650 (International), with Conference ID: 2519 7474.

The conference call will also be simultaneously webcast and can be accessed at the following audience URL: https://www.well.company/events/

Selected Unaudited Financial Highlights:

Please see SEDAR for complete copies of the Company's audited annual consolidated financial statements and annual MD&A for the year ended December 31, 2022.

Footnotes:

1. Non-GAAP financial measures and ratios.
   In addition to results reported in accordance with IFRS, the Company uses certain non-GAAP financial measures as supplemental indicators of its financial and operating performance. These non-GAAP financial measures include Adjusted Net Income, Adjusted Net Income Per Share, Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Margin, and Adjusted Free Cash Flow. The Company believes these supplementary financial measures reflect the Company's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business.
   
   Adjusted Net Income and Adjusted Net Income per Share
   The Company defines Adjusted Net Income as net income (loss), after excluding the effects of stock-based compensation expense, amortization of acquired intangible assets, time-based earnout expense, change in fair value of investments, non-controlling interests, and revenue precluded from recognition under IFRS 15 that relates to certain patient services revenue that the Company believes should be recognized as revenue based on its contractual relationships. Adjusted Net Income Per Share is Adjusted Net Income divided by weighted average number of shares outstanding. The Company believes that these non-GAAP financial measures provide useful information to analyze our results, enhance a reader's understanding of past financial performance and allow for greater understanding with respect to key metrics used by management in decision making. More specifically, the Company believes Adjusted Net Income is a financial metric that tracks the earning power of the business that is available to WELL shareholders.
   
   EBITDA and Adjusted EBITDA
   EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA represents net income (loss) before interest, taxes, depreciation, and amortization. The Company defines Adjusted EBITDA as EBITDA (i) less net rent expense on premise leases considered to be finance leases under IFRS and (ii) before transaction, restructuring, and integration costs, time-based earn-out expense, change in fair value of investments, share of loss of associates, foreign exchange gain/loss, and stock-based compensation expense, (iii) revenue precluded from recognition under IFRS 15 that relates to certain patient services revenue that the Company believes should be recognized as revenue based on its contractual relationships, and (iv) gains/losses that are not reflective of ongoing operating performance. The Company considers Adjusted EBITDA a financial metric that measures cash that the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives. EBITDA and Adjusted EBITDA should not be considered alternatives to net income (loss), cash flow from operating activities or other measures of financial performance in accordance with IFRS.
   
   Adjusted Gross Profit and Adjusted Gross Margin
   The Company defines Adjusted Gross Profit as revenue less cost of sales (excluding depreciation and amortization) and Adjusted Gross Margin as adjusted gross profit as a percentage of revenue. Adjusted gross profit and adjusted gross margin should not be construed as an alternative for revenue or net income (loss) determined in accordance with IFRS. The Company does not present gross profit in its consolidated financial statements as it is a non-GAAP financial measure. The Company believes that adjusted gross profit and adjusted gross margin are meaningful metrics that are often used by readers to measure the Company's efficiency of selling its products and services.
   
   Adjusted Free Cash Flow
   The Company defines Adjusted Free Cash Flow Attributable to Shareholders as Adjusted EBITDA Attributable to Shareholders, less cash interest, less cash taxes and less capital expenditures.
   
   Adjusted Net income, Adjusted Net Income per Share, Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Margin, and Adjusted Free Cash Flow are not recognized measures for financial statement presentation under IFRS and do not have standardized meanings. As such, these measures may not be comparable to similar measures presented by other companies and should be considered as supplements to, and not as substitutes for, or superior to, the corresponding measures calculated in accordance with IFRS.
   
   
2. For the quarter and year ended December 31, 2021, the Company was precluded from recognizing certain potential patient services revenue under IFRS 15 - Revenue from contracts with customers. IFRS 15 requires that certain conditions be met in order to recognize revenue, including that it is probable that the Company will collect the amount recognized, which is based upon a customer's ability and intention to pay. The Company determined that there was insufficient certainty regarding a customer's intent to pay $3,110 and therefore did not recognize the revenue. The Company has an agreement setting fixed reimbursement rates for the provision of anesthesia services for which collections have not been received as a result of what the Company believes to be an administrative issue. The Company will recognize these amounts as revenue only if and when they are ultimately collected.
   
   
3. In the quarter ended December 31, 2021, the Company's wholly-owned subsidiary, CRH, entered into a relationship with a new billing service provider. Due to the one-time implementation and transition of billings from the previous billing service provider to the new billing service provider, CRH experienced significant delays in its cash collections, including delays in and non-payment of accounts receivable relating to those services billed and collected by the billing service providers. Subsequently, the predecessor billing service provider has also become inoperative. As a result of this transition, CRH incurred credit losses on accounts receivable billed under the predecessor billing provider and was precluded from recognizing certain patient services revenue under IFRS 15 due to the temporary decline in the pace of historical collection activity. The loss of $8,495 has been excluded from the calculation of Adjusted EBITDA as the Company believes this is non-recurring and not reflective of ongoing operations.

WELL HEALTH TECHNOLOGIES CORP.

Per: "Hamed Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director

About WELL Health Technologies Corp.

WELL is a practitioner-focused digital healthcare company. WELL's overarching mission is to positively impact health outcomes by leveraging technology to empower healthcare practitioners and their patients globally. WELL exists to enable healthcare practitioners with best-in-class technology and services. WELL has built the most comprehensive end-to-end healthcare system across Canada including the nation's largest network of clinics supporting primary care, specialized care, and diagnostics services. In the United States, WELL provides omni-channel healthcare services and solutions targeting specialized markets such as the gastrointestinal market, women's health, primary care, and mental disorders. In addition to providing patient services, WELL develops, integrates, and sells its own suite of technology software and solutions to medical clinics and healthcare practitioners. WELL's practitioner enablement platform includes: Electronic Medical Records ("EMR"), telehealth platforms, practice management, billing, Revenue Cycle Management ("RCM"), digital health apps and data protection solutions. WELL is publicly traded on the Toronto Stock Exchange under the symbol "WELL" and on the OTC Exchange under the symbol "WHTCF". To learn more about the Company, please visit: www.well.company.

Forward-Looking Statements

This news release may contain "Forward-Looking Information" within the meaning of applicable Canadian securities laws, including, without limitation: information regarding the Company's goals, strategies and growth plans; expectations regarding continued revenue and EBITDA growth; the expected benefits and synergies of completed acquisitions; capital allocation plans in the form of more acquisitions or share repurchases; the expected financial performance as well as information in the "Outlook" section herein. Forward-Looking Information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. Forward-Looking Information generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-Looking Information involve known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by the Forward-Looking Information and the Forward-Looking Information are not guarantees of future performance. WELL's comments expressed or implied by such Forward-Looking Information are subject to a number of risks, uncertainties, and conditions, many of which are outside of WELL 's control, and undue reliance should not be placed on such information. Forward-Looking Information are qualified in their entirety by inherent risks and uncertainties, including: direct and indirect material adverse effects from the COVID-19 pandemic; adverse market conditions; risks inherent in the primary healthcare sector in general; regulatory and legislative changes; that future results may vary from historical results; inability to obtain any requisite future financing on suitable terms; any inability to realize the expected benefits and synergies of acquisitions; that market competition may affect the business, results and financial condition of WELL and other risk factors identified in documents filed by WELL under its profile at www.sedar.com, including its most recent Annual Information Form. Except as required by securities law, WELL does not assume any obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise.

This news release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about estimated annual run-rate revenue and Adjusted EBIDTA, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraph. The actual financial results of WELL may vary from the amounts set out herein and such variation may be material. WELL and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, WELL undertakes no obligation to update such FOFI. FOFI contained in this news release was made as of the date hereof and was provided for the purpose of providing further information about WELL's anticipated future business operations on an annual basis. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein.

Neither the TSX nor its Regulation Services Provider (as that term is defined in policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

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