Mr. Dan Matlow reports

VITALHUB CORP. REPORTS FIRST QUARTER 2023 RESULTS

Vitalhub Corp. has filed its interim condensed consolidated financial statements and management's discussion and analysis report for the three months ended March 31, 2023, with the Canadian securities authorities. These documents may be viewed under the company's profile at SEDAR.

"We began 2023 with record first quarter revenue with continued robust positive year-over-year and sequential momentum," said Dan Matlow, chief executive officer of Vitalhub. "Positive organic growth (17 per cent) and accretive inorganic growth contributed to our 34-per-cent Q1 2023 revenue increase. Strong double-digit year-over-year growth in term licences, maintenance and support, and triple-digit growth in services and hardware more than offset the year-over-year decline in perpetual licences. We announced the acquisition of Coyote Software Corp., our 16th acquisition since 2017. [Annual recurring revenue] benefited from positive organic and inorganic growth and benefited from a gain due to the increase in the value of the British pound relative to the Canadian dollar from [fourth quarter] 2022. ARR increased 65 per cent or $15.6-million to $39.6-million from Q1 2022. Adjusted [earnings before interest, taxes, depreciation and amortization were] strong at $2.9-million, representing 23 per cent of revenue. We closed the quarter with $17.2-million in cash on hand, and, combined with the availability of a Bank of Nova Scotia facility, we currently have $50.2-million at our disposal for operations and to continue progressing our acquisition strategy. As evidenced by recent announcements (relating to Shrewd, Treat and College of Optometrists), we are penetrating deeper into core accounts and expanding horizontally into adjacent markets, and look forward to continuing this momentum in 2023."

Vitalhub's quarterly investor conference call will take place on Friday, May 12, 2023, at 9 a.m. EST.

You may register for the call.

First quarter 2023 highlights:

• Revenue of $12,595,174, an increase of $3,171,983 or 34 per cent from first quarter 2022;
• Gross profit as a percentage of revenue for Q1 2023 was 80 per cent as compared with 84 per cent in Q1 2022 (fourth quarter 2022: 82 per cent); the decrease in Q1 2023 was due to the unusual volume of high-margin perpetual licence sales of $2,767,253 in Q1 2022, as compared with $310,398 in Q1 2023;
• ARR at the end of Q1 2023 was $39,634,517:
  • ARR growth consists of $1,462,727 or 4-per-cent organic growth, $1.1-million or 3 per cent from acquisitions (Coyote Software), and $926,600 or 3 per cent of foreign exchange changes from Q4 2022;
  • ARR for Q1 2023 grew by $15,619,427 or 65 per cent from Q1 2022, and $3,489,367 or 10 per cent from Q4 2022;
• EBITDA of $1,987,747 compared with $2,367,044 in the prior comparative quarter (Q4 2022: $470,220);
• Adjusted EBITDA of $2,923,780, or 23 per cent of revenue, compared with $3,051,015, or 32 per cent of revenue, in the prior comparative quarter (Q4 2022: $1,306,717 or 22 per cent of revenue):
  • The decrease was primarily attributable to the aforementioned unusual volume of high-margin perpetual licence sales in Q1 2022;
• Cash on hand at March 31, 2023, was $17,167,716 compared with $17,452,210 as at Dec. 31, 2022;
• Cash from operations before changes in working capital was $1,476,785 for the period as compared with $2,498,320 for the same period last year;
• Net income before income taxes of $780,428 for Q1 2023 compared with $1,563,512 in Q1 2022 (Q4 2022: $1,306,717):
  • The decrease was primarily attributable to the aforementioned unusual volume of high-margin perpetual licence sales in Q1 2022.

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 600-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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