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Vitalhub Corp (2)
Symbol VHI
Shares Issued 43,629,921
Close 2023-08-10 C$ 2.50
Market Cap C$ 109,074,803
Recent Sedar Documents

Vitalhub earns $621,451 in Q2

2023-08-10 21:00 ET - News Release

Mr. Dan Matlow reports

VITALHUB CORP. REPORTS SECOND QUARTER 2023 RESULTS

Vitalhub Corp. has filed its interim condensed consolidated financial statements and management's discussion and analysis report for the three and six months ended June 30, 2023, with the Canadian securities authorities. These documents may be viewed under the company's profile at SEDAR+.

"We kicked off 2023 with record revenue and robust year-over-year growth. This momentum persisted in [second quarter] with continued new sales and client expansion," said Dan Matlow, chief executive officer of Vitalhub. "Both positive organic growth and accretive revenue from acquisitions completed in previous quarters contributed to the Q2 2023 revenue increase. Strong double-digit year-over-year growth was delivered in term licences, maintenance and support, perpetual licences, services, and hardware. [Annual recurring revenue] benefited from positive organic growth (4 per cent) offset by a loss (negative 0.3 per cent) due to the decrease in Australian- and U.S.-dollar rates relative to the Canadian dollar in the quarter. ARR increased 31.4 per cent or $9.8-million to $41.0-million from Q2 2022. Adjusted [earnings before interest, taxes, depreciation and amortization were] strong at approximately $3.0-million, representing 23 per cent of revenue. We closed the quarter with $22.9-million in cash on hand, a sequential increase of $5.8-million from Dec. 31, 2022. Combined with the availability of our Bank of Nova Scotia facility, we currently have $55.9-million of liquidity to expand our operations and continue our acquisition strategy. We continue to see new customer interest in our growing product portfolio in a more diversified fashion than in the past. In particular, our Treat solution in the Canadian marketplace continues to expand on its leadership position. We are penetrating deeper into core accounts and expanding horizontally into adjacent markets, and look forward to continuing our business velocity throughout 2023."

Vitalhub's quarterly investor conference call will take place on Friday, Aug. 11, 2023, at 9 a.m. EST.

Please register for the call.

Second quarter 2023 highlights:

  • Revenue of $13,085,441, an increase of $3,607,977 or 38 per cent from Q2 2022;
  • Gross profit as a percentage of revenue of 81 per cent compared with 83 per cent in Q2 2022 (first quarter 2023: 80 per cent); the decrease in Q2 2023 was primarily due to an increase in lower-margin service revenues in the quarter;
  • ARR at the end of Q2 2023 was $41,008,702, an increase of $1,374,185 from Q1 2023:
    • ARR growth consists of $1,491,003 or 4-per-cent organic growth, offset by a loss of $116,818 or 0.3 per cent of foreign exchange changes due to the decrease in Australian- and U.S.-dollar rates relative to the Canadian dollar in the quarter;
  • EBITDA of $1,979,464 compared with $1,023,686 in Q2 2022;
  • Adjusted EBITDA of $2,970,322, or 23 per cent of revenue, compared with $1,866,563, or 20 per cent of revenue, in Q2 2022:
    • The increase was primarily attributable to the higher recurring revenues of $10,210,367 in Q2 2023, as compared with $7,232,646 in Q2 2022;
  • Net income before income taxes of $742,516 for Q2 2023 compared with a net loss of $9,957 in Q2 2022:
    • The increase was primarily attributable to the significant increase in revenues from organic growth and acquisitions and lower expenses as a percentage of sales.

Six-month 2023 highlights:

  • ARR at June 30, 2023, was $41,008,702 as compared with $31,219,508 at June 30, 2022, an increase of 31 per cent:
    • ARR growth consists of $4,748,634 or 15-per-cent organic growth, $4,100,854 or 13 per cent of acquisition growth, and a gain of $939,705 or 3.0 per cent due to the fluctuation in the British pound relative to the Canadian dollar;
  • Gross profit as a percentage of revenue for the six months ended June 30, 2023, was 81 per cent compared with 84 per cent from the comparative period in the prior year;
  • Revenue of $25,680,615, an increase of $6,779,959 or 36 per cent from the comparative period in the prior year;
  • EBITDA of $3,967,211 compared with $3,390,734 in first half 2022;
  • Adjusted EBITDA of $5,894,102, or 23 per cent of revenue, compared with $4,917,582 or 26 per cent of revenue in first half 2022;
  • Cash flow from operations before changes in working capital was $4,068,458 for the period as compared with $3,994,704 for the same period last year;
  • Cash on hand at June 30, 2023, was $22,944,268 compared with $17,452,210 as at Dec. 31, 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, and community and social services. Vitalhub solutions span the categories of electronic health record (EHR), case management, care co-ordination and optimization, and patient flow and operational visibility solutions.

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 more than 1,000 clients across Canada, the United States, the United Kingdom, Australia, the Middle East and Europe.

Vitalhub is based in Toronto, Canada, with an offshore development hub in Sri Lanka. The Vitalhub team comprises more than 350 team members globally. The company is publicly traded on the Toronto Stock Exchange under the symbol VHI and on the OTC Markets OTCQX Exchange under the symbol VHIBF.

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