Mr. Dan Matlow reports
VITALHUB RECORDS RECORD REVENUE OF $9,423,191 AND NET INCOME OF $1,437,611 IN Q1 2022
Vitalhub Corp. has filed its interim condensed consolidated financial statements and management's discussion and analysis report for the three months ended March 31, 2022, with the Canadian securities authorities. These documents may be viewed under the company's profile at SEDAR.
When asked to comment on the results, Vitalhub chief executive officer Dan Matlow said:
"The ongoing global market drive to use digital solutions to reduce capacity constraints, improve patient access to services, and manage the flow of patients through local health systems in both hospital and community settings is a key factor in the increased adoption of Vitalhub's proven solutions. We have seen this increased adoption across all products of the company resulting in the record results in [the first quarter]."
The company will be holding a conference call through Zoom on May 13, 2022, at 9 a.m. EDT, hosted by chief executive officer Dan Matlow and chief financial officer Brian Goffenberg with a question-and-answer session to follow. Please register for the conference call.
First quarter 2022 highlights:
Revenue of $9,423,191, an increase of $4,100,117 or 77 per cent from the comparative period in the prior year.
Gross profit as a percentage of revenue for Q1 2022 was 84 per cent compared with 76 per cent in Q1 2021 and 79 per cent in fourth quarter 2021.
ARR (annual recurring revenue) (1, 2) grew by $1,908,427 to $24,015,090, achieving 9-per-cent growth for the quarter ($2,743,987 or 11.39 per cent on a constant currency basis) ($1,485,613 or 6.72 per cent organically and $1,032,000 or 4.67 per cent through acquisition and a decrease due to an unrealized foreign exchange loss of $609,186 or 2.76 per cent, which is attributable to the fluctuation of the British pound versus the Canadian dollar with a decrease from $1 (Canadian) to 1.73 pounds to $1 (Canadian) to 1.64 pounds) in Q1 2021 versus Q4 2021.
New customer billings for perpetual and recurring licences, support, services, and hardware were $8.7-million, of which $2.9-million was recognized in the quarter and the balance of $5.8-million is deferred to be recognized as earned over the next 12 to 60 months.
Net income of $1,437,611 compared with a net loss of ($241,671) in the comparative period in the prior year.
EBITDA (earnings before interest, taxes, depreciation and amortization) (2) of $2,367,044 compared with $299,241 from the comparative period in the prior year.
Adjusted EBITDA (2) of $3,051,015, or 32 per cent of revenue, compared with $865,864 or 16 per cent of revenue from the comparative period in the prior year.
Cash on hand at March 31, 2022, was $20,751,890 compared with $16,389,982 as at Dec. 31, 2021.
Cash flow from operations before changes in working capital was $2,594,450 for the period as compared with $706,961 for the same period last year.
Vitalhub was ranked 20th on the 2021 Deloitte's technology fast 50 program award amongst Canadian companies for its rapid revenue growth with 1,103-per-cent growth from 2017 to 2020. The company also ranked 127th within North America on Deloitte's technology fast 500 rankings list.
With the addition of the ARR of Hicom subsequent to the quarter, Vitalhub's ARR is approximately $30,903,090 (ARR at the end of Q1 2022: $24,05,090 plus Hicom ARR of $6,888,000). ARR is a non-international financial reporting standard measure.
(1) The company defines annual recurring revenue as the recurring revenue expected based on yearly subscriptions of the renewable software licence fees and maintenance services.
(2) Non-international financial reporting standard measure.
About Vitalhub Corp.
Vitalhub provides technology to health and human service providers, including: hospitals, regional health authorities, mental health, long-term care, home health, community and social services. Vitalhub solutions span the categories of electronic health record (EHR), case management, care co-ordination, patient flow and operational visibility, and DOCit mobile apps.
The company has a robust two-pronged growth strategy, targeting organic growth opportunities within its product suite and pursuing an aggressive merger-and-acquisition plan. Currently, Vitalhub serves 275-plus clients across Canada, the United States, the United Kingdom, Australia, Qatar and Latvia. Vitalhub is based in Toronto, Canada, with an offshore development hub in Sri Lanka. The company is publicly traded on the TSX Venture Exchange under the symbol VHI.
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