Mr. Hamed Shahbazi reports

WELL HEALTH REPORTS RECORD REVENUE FOR Q1-2023 AND INCREASES ANNUAL REVENUE GUIDANCE

Well Health Technologies Corp. has released its interim consolidated financial results for the quarter ended March 31, 2023.

Hamed Shahbazi, founder and chief executive officer of Well, commented: "Q1 2023 was an exceptional quarter that exceeded all expectations and demonstrated the strength, depth and quality of our technology enabled care delivery platforms. Well achieved 34-per-cent year-over-year revenue growth, largely driven by our organic growth, which accelerated to 21 per cent in the first quarter, the highest level of organic growth we've had in several quarters. This quarter also marks our 17th consecutive quarter of record revenue. Our profitability and cash flow profile continue to be robust, as we achieved $10.8-million in adjusted free cash flow to shareholders in Q1 2023, notwithstanding elevated interest fees. Given the strength of our outlook, we are pleased to increase revenue guidance again as we have for each of the past five quarters."

Mr. Shahbazi further added: "At the heart of our culture is our purpose to passionate care and support health care providers. Well exited Q1 2023 with over 3,000 providers and clinicians delivering care in our physical and virtual clinics and more than 28,000 providers supported by our SaaS [software-as-a-service] and technology services. We are determined to faithfully support and tech enable health care professionals with the very best technology available, which now includes significant investments in artificial-intelligence-, or AI, based products and services that enhance provider productivity and effectiveness."

Eva Fong, Well's chief financial officer, added: "Well has continued to demonstrate continuous growth, can drive significant cash flow to shareholders and lower its leverage levels effectively. I am pleased to announce that we have reduced our leverage ratio of net debt to shareholder adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] from 3.5 times at the end of Q1 2022 to 2.6 times as of the end of Q1 2023. With our leadership position in the digital health care industry and continued cash flow generation, we are well positioned for continued success in 2023 and beyond."

First quarter 2023 financial highlights:

• Well achieved record quarterly revenue of $169.4-million in Q1 2023, an increase of 34 per cent as compared with revenue of $126.5-million generated in Q1 2022. This growth was mainly driven by organic growth of 21 per cent but also included inorganic growth during the past year.
• Canadian patient services revenue was $50.9-million in Q1 2023, an increase of 23 per cent as compared with $41.3-million in Q1 2022.
• U.S. patient services revenue was $99.2-million in Q1 2023, an increase of 38 per cent as compared with $72.1-million in Q1 2022.
• SaaS and technology services revenue was $19.3-million in Q1 2023, an increase of 47 per cent as compared with $13.1-million in Q1 2022.
• Adjusted gross profit was $86.2-million in Q1 2023, an increase of 24 per cent as compared with adjusted gross profit of $69.4-million in Q1 2022.
• Adjusted gross margin percentage was 50.9 per cent during Q1 2023 compared with adjusted gross margin percentage of 54.8 per cent in Q1 2022.
• Adjusted EBITDA was $26.7-million in Q1 2023, an increase of 14 per cent as compared with adjusted EBITDA of $23.5-million in Q1 2022, which was supported by more than $1.7-million in pandemic-related government incentives.
• Adjusted EBITDA to Well shareholders was $20.6-million in Q1 2023, an increase of 28 per cent as compared with adjusted EBITDA to Well shareholders of $16.1-million in Q1 2022.
• Adjusted net income was $14.1-million, or six cents per share in Q1 2023, as compared with adjusted net income of $8.9-million, or four cents per share in Q1 2022.

First quarter 2023 patient visit metrics

Well achieved a total of 1.4 million patient interactions in Q1 2023, representing approximately 5.6 million patient interactions on an annualized run-rate. Well achieved a total of 975,500 patient visits in Q1 2023, an increase of 25 per cent as compared with 778,910 patient visits in Q1 2022. Canadian patient services visits increased 14 per cent while U.S. patient services visits increased 40 per cent, on a year-over-year basis. Growth in patient visits over the past year was primary driven by organic growth but included some acquisition-related activity as well.

First quarter 2023 business highlights

On March 1, 2023, the company completed the acquisition of 51-per-cent 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 34 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, a medical practice management software provider based in Germany. 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.

Events subsequent to March 31, 2023

On April 26, 2023, Well Ventures announced the launch of its AI investment program, focused on artificial intelligence and its applications in helping support health care providers with next-generation tools. The Well AI investment program will provide investees with capital as well as extensive support from Well's ecosystem to help develop, test, refine, secure, derisk and integrate the most promising such technologies into the Canadian health care ecosystem at scale. Well's goal is to make a minimum of 10 AI-related investments of at least $250,000 each.

On May 10, 2023, the company launched Well AI Voice, a transformational ambient scribe product that leverages generative AI to dramatically reduce a provider's administrative burden by privately and securely capturing a patient encounter conversation and automatically generating a succinct and medically relevant chart note for the patient interaction.

Outlook

Well is expecting its strong performance in the first quarter to continue across all its business units and for the entire company as a whole. Well's objective is to invest in and achieve significant growth while effectively managing its costs and delivering cash flow to shareholders. Management is pleased to provide the following guidance for 2023:

• Annual revenue between $690-million and $710-million, representing 21-per-cent to 25-per-cent annual growth as compared with 2022. Annual revenue guidance only includes announced acquisitions.
• Annual adjusted EBITDA is expected to increase by more than 10 per cent over 2022 levels, allowing the company to invest in growth and continue to acquire market share.

Well expects to continue to grow its Canadian patient services business both organically and inorganically and increase its market leadership as the country's first pan-Canadian clinical network with a highly integrated network of tech-enabled outpatient health care clinics across the country. Meanwhile, growth in the company's U.S. patient services business is expected to be primarily driven by organic growth while executing on highly disciplined capital allocation opportunities.

As a company with deep tech experience and capabilities, Well has also made investments in AI technologies a key priority within the company and expects to develop compelling new products and enhancements to roll out to Well's vast provider network.

Well's strong organic growth and robust cash flow profile allow the company to continue to successfully execute on its acquisition plans. Management expects additional cash flows generated by the company will be reinvested in the business and allocated in a disciplined manner.

Well is a purpose-driven business that aims to transform the world for the better; as such, the company has embarked on a continuing ESG (environmental, social and governance) program. The company is on track to publishing its annual ESG report in mid-2023 highlighting Well's ESG strategy, reporting initiatives and targeted actions.

Conference call

Well will hold a conference call to discuss its 2023 first quarter financial results on Friday, May 12, 2023, at 1 p.m. ET (10 a.m. 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).

The conference call will also be simultaneously webcast and can be accessed on Well's website.

Selected Unaudited Financial highlights

Please see SEDAR for complete copies of the company's condensed interim consolidated financial statements and interim management discussion and analysis for the quarter ended March 31, 2023.

About Well Health Technologies Corp.

Well is a practitioner-focused digital health care company. Well's overarching mission is to positively impact health outcomes by leveraging technology to empower health care practitioners and their patients globally. Well exists to enable health care practitioners with best-in-class technology and services. Well has built the most comprehensive end-to-end health care 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 omnichannel health care 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 health care 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.

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