Mr. Dan Matlow reports

VITALHUB CORP. REPORTS FIRST QUARTER 2024 FINANCIAL 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, 2024, with the Canadian securities authorities. These documents may be viewed under the company's profile on SEDAR+.

Dan Matlow, chief executive officer of Vitalhub, commented on the quarter's success, stating: "We are thrilled to report that Vitalhub has kicked off 2024 with outstanding momentum, achieving a 21-per-cent increase in revenue, which rose to $15.3-million, up from $12.6-million in Q1 last year. Our focus on driving operational excellence and expanding our solution offerings continues to yield significant financial benefits and value for our shareholders. Our growth strategy, underpinned by both organic initiatives and strategic acquisitions, has effectively increased our annual recurring revenue (ARR) by 21 per cent to $47.8-million. This growth is a testament to our strong market position and our team's dedication to delivering innovative solutions that meet the evolving needs of health care providers. In Q1, we achieved a gross profit of 81 per cent, reflecting our ability to scale efficiently while improving our cost structure. This resulted in a 56-per-cent increase in EBITDA to $3.1-million and a notable increase in adjusted EBITDA, which rose to $4.0-million or 27 per cent of revenue, compared to $2.9-million or 23 per cent of revenue in Q1 last year. Our disciplined approach to cash management enabled us to end the quarter with a healthy cash balance of $33.3-million, after having made significant investments in growth initiatives and the purchase of Bookwise. In addition, when you add our recent financing, the company now has in excess of $70-million in cash."

Mr. Matlow concluded: "As we move through 2024, Vitalhub is well positioned to continue our growth trajectory. We remain focused on expanding our reach in existing markets, exploring new opportunities, and enhancing our product portfolio through innovation and strategic mergers and acquisitions. Our strong financial position supports our ambitious growth plans and our commitment to leading the digital transformation in health care."

Vitalhub's quarterly investor conference call will take place on Friday, May 10, 2024, at 9 a.m. EST.

Register for the call on-line.

First quarter 2024 highlights:

• Revenue of $15,256,791, as compared with $12,595,174 in the equivalent prior-year period, an increase of $2,661,617 or 21 per cent;
• Gross profit as a percentage of revenue was 81 per cent, compared with 80 per cent in the equivalent prior-year period:
  • The increase in Q1 2024 was primarily due to an increase in higher-margin maintenance and support revenues in the quarter, coupled with a continuing effort to reduce costs and gain operating cost synergies;
• ARR (annual recurring revenue) at March 31, 2024, was $47,834,002, as compared with $39,634,517 at March 31, 2023, an increase of 21 per cent;
• ARR growth was largely due to organic growth of $6,472,477 or 15 per cent, and acquisition growth of $1,062,500 or 2 per cent. ARR also benefited by a gain of $664,508 or 1 per cent due to the increase in the GBP (Great British pound) rates relative to the Canadian dollar in the quarter;
• EBITDA (earnings before interest, taxes, depreciation and amortization) of $3,099,016, compared with $1,987,747 in the equivalent prior-year period, an increase of $1,111,269 or 56 per cent;
• Adjusted EBITDA of $4,044,932 or 27 per cent of revenue, compared with $2,923,780 or 23 of revenue in the equivalent prior-year period, an increase of $1,121,152 or 38 per cent:
  • The increase in EBITDA and adjusted EBITDA from Q1 2023 to Q1 2024 was primarily attributable to the higher recurring revenues of $12,465,062 in Q1 2024, as compared with $9,997,484 in Q1 2023, coupled with a continuing effort to manage costs and gain operating cost synergies;
• Net income before income taxes of $1,978,895, as compared with net income before income taxes of $780,428 in the equivalent prior-year period, an increase of $1,198,467 or 165 per cent:
  • The increase was primarily attributable to the significant increase in revenues from organic growth and acquisitions, coupled with a continuing effort to reduce costs and gain operating cost synergies;
• Cash on hand at March 31, 2024, was $33,315,264, compared with $33,480,018 as at Dec. 31, 2023. After paying approximately $5.3-million on acquisitions in the quarter, the company has been able to maintain a steady cash balance, due to continued revenue growth (both organically and through acquisition) and with a continuing effort to manage costs and gain operating cost synergies;
• Cash from operations before changes in working capital was $2,917,700, as compared with $1,476,785 for the same period last year;
• Subsequent to the quarter, the company closed a bought deal offering for total gross proceeds of approximately $40,254,000.

About Vitalhub Corp.

Vitalhub is a leading software company dedicated to empowering health and human services providers. Its clients include hospitals, regional health authorities, mental health and addictions services providers for children and adults, long-term care facilities, home health agencies, correctional services, and community and social services providers.

Vitalhub's comprehensive suite of SaaS (software-as-a-service) solutions include:

• Electronic health record (EHR), case management, care co-ordination and optimization;
• Patient flow, operational visibility and patient journey optimization;
• Work force automation.

The company has a robust two-pronged growth strategy, targeting organic growth opportunities within its product suite and pursuing an aggressive M&A (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 400 team members globally. The company is publicly traded on the Toronto Stock Exchange under the symbol VHI and on the OTCQX Exchange under the symbol VHIBF.

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