- In July 2024, San Francisco based Circle Medical which is majority owned by WELL Health reported $8.87M in sales reflecting 65% year-over-year organic growth, surpassing an annualized revenue run rate of over $100M USD for the first time.
- Circle Medical has been profitable on an Adj EBITDA basis for more than 2.5 years now and continues to maintain strong gross margins of approximately 55%.
- Circle Medical has established key AI partnerships and made strategic leadership hires to drive future expansion.
- Circle Medical has retained JP Morgan as exclusive financial advisor to explore strategic options to fuel its next phase of growth.
SAN FRANCISCO and VANCOUVER, BC, Aug. 13, 2024 /PRNewswire/ - WELL Health Technologies Corp. (TSX: WELL) (OTCQX: WHTCF) ("WELL" or the "Company"), 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 that its majority-owned subsidiary, Circle Medical, the leading digital-first primary care practice in the United Stateshas surpassed a $100M USD revenue run rate, underscoring the company's impressive growth and continued profitability.
In July 2024, Circle Medical reported $8.87M in revenue, reflecting a remarkable 65% year-over-year increase. This growth has been achieved while maintaining a 99% patient satisfaction rating as measured by industry standard CSAT surveys, highlighting Circle Medical's dedication to delivering exceptional patient care. Circle Medical has been able to maintain a strong gross margin of approximately 55% and has generally operated profitably on and adjusted EBITDA basis for the last 2.5 years. Circle Medical has retained JP Morgan as exclusive financial advisor to explore strategic options to fuel its next phase of growth.
"Our growth and success is the result of our continued commitment to delivering high-quality medical care while continuing to innovate on patient experience," said George Favvas, Co-founder and CEO of Circle Medical. "We are proud of this important milestone and look forward to working with the JP Morgan team to help identify the appropriate partners as we continue to grow towards $1 billion in revenue."
Circle Medical's majority shareholder, WELL, will discuss Circle Medical's record revenue run-rate in its quarterly earnings call on August 14, 2024. WELL has previously indicated it would pursue strategic alternatives for its majority stake in Circle Medical, which has grown its revenue run-rate from $5M to over $100M USD in less than four years since WELL acquired its stake.
To support this rapid growth, Circle Medical has made strategic leadership hires and formed key partnerships in artificial intelligence (AI). The company is heavily investing in AI technologies that enhance patient care and operational efficiency, including AI-powered scribes for documentation and compliance tools for clinical reviews.
Circle Medical recently appointed Miguel Jetté as its first Head of AI. With over 20 years of experience in the field, Miguel will spearhead the company's AI strategy. His previous roles include VP of AI at Rev and speech scientist at Nuance. Miguel will also lead Circle Medical's collaboration with the Mila – Quebec Artificial Intelligence Institute, the world's largest academic research center for deep learning.
Additionally, Circle Medical has welcomed back Brent LaRue as VP of Product and Patient Experience. As one of the original co-founders, Brent's return signals a renewed focus on product design to drive patient engagement and satisfaction. Brent brings a wealth of experience in healthcare startup design and innovation, further strengthening Circle Medical's leadership team.
The exploration of strategic alternatives for Circle Medical reflects WELL Health's ongoing efforts to demonstrate sum of parts value for shareholders and position both WELL Health and Circle Medical for long-term success in the digital healthcare landscape.
Non-GAAP financial measures
The Company uses Adjusted EBITDA, a non-GAAP financial measure, as an indicator of its financial and operating performance. The Company believes this financial measure reflects the Company's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business.
WELL HEALTH TECHNOLOGIES CORP.
Per: "Hamed Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
About WELL Health Technologies Corp.
WELL's mission is to tech-enable healthcare providers. We do this by developing the best technologies, services, and support available, which ensures healthcare providers are empowered to positively impact patient outcomes. WELL's comprehensive healthcare and digital platform includes extensive front and back-office management software applications that help physicians run and secure their practices. WELL's solutions enable more than 34,000 healthcare providers between the US and Canada and power the largest owned and operated healthcare ecosystem in Canada with more than 165 clinics supporting primary care, specialized care, and diagnostic services. In the United States WELL's solutions are focused on specialized markets such as the gastrointestinal market, women's health, primary care, mental health, revenue cycle management, and practitioner recruiting. 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 Adjusted EBITDA; its run-rates; its plans for future partners and expansion plans; and revenue expectations. 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 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 adverse market conditions; risks inherent in the telehealth sector; regulatory and legislative changes; that future results may vary from historical results; inability to identify a suitable partner; and other risk factors identified in its most recent Annual Information Form filed by WELL under its profile at www.sedarplus.ca. 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.
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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SOURCE WELL Health Technologies Corp.
