“We kicked off 2023 with record revenue and robust year-over-year growth. This momentum persisted in Q2 with continued new sales and client expansion” said
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Second Quarter 2023 Highlights
- Revenue of
$13,085,441 , an increase of$3,607,977 or 38% from Q2 2022. - Gross profit as a percentage of revenue of 81% compared to 83% in Q2 2022 (Q1 2023 - 80%). The decrease in Q2 2023 was primarily due to an increase in lower margin service revenues in the quarter.
- ARR (1, 2) at the end of Q2 2023 was
$41,008,702 , an increase of$1,374,185 from Q1 2023.- ARR (1, 2) growth consists of
$1,491,003 or 4% organic growth, offset by a loss of$116,818 or 0.3% of foreign exchange changes due to the decrease in Australian and US dollar rates relative to the Canadian dollar in the quarter.
- ARR (1, 2) growth consists of
- EBITDA (2) of
$1,979,464 compared to$1,023,686 in Q2 2022. - Adjusted EBITDA (2) of
$2,970,322 , or 23% of revenue, compared to$1,866,563 , or 20% of revenue, in Q2 2022.- The increase was primarily attributable to the higher recurring revenues of
$10,210,367 in Q2 2023, as compared to$7,232,646 in Q2 2022.
- The increase was primarily attributable to the higher recurring revenues of
- Net income before income taxes of
$742,516 for Q2 2023 compared to 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 (1, 2) at
June 30, 2023 , was$41,008,702 as compared to$31,219,508 atJune 30, 2022 , an increase of 31%.- ARR (1, 2) growth consists of
$4,748,634 or 15% organic growth,$4,100,854 or 13% of acquisition growth, and a gain of$939,705 or 3.0% due to the fluctuation in the British Pound relative to the Canadian dollar.
- ARR (1, 2) growth consists of
- Gross profit as a percentage of revenue for the six months ended
June 30, 2023 was 81% compared to 84% from the comparative period in the prior year. - Revenue of
$25,680,615 , an increase of$6,779,959 or 36% from the comparative period in the prior year. - EBITDA (2) of
$3,967,211 compared to$3,390,734 in H1 2022. - Adjusted EBITDA (2) of
$5,894,102 , or 23% of revenue, compared to$ 4,917,582 or 26% of revenue in H1 2022. - Cashflow from operations before changes in working capital was
$4,068,458 for the period as compared to$3,994,704 for the same period last year. - Cash on hand at
June 30, 2023 , was$22,944,268 compared to$17,452,210 as atDecember 31, 2022 .
(1) The Company defines annual recurring revenue (“ARR”) as the recurring revenue expected based on yearly subscriptions. |
(2) Non-IFRS measure. |
SELECTED FINANCIAL INFORMATION | ||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||
% Revenue | % Revenue | Change | % Revenue | % Revenue | Change | |||||||||||||||
$ | $ | % | $ | $ | % | |||||||||||||||
Revenue | 13,085,441 | 100 | % | 9,477,464 | 100 | % | 38 | % | 25,680,615 | 100 | % | 18,900,656 | 100 | % | 36 | % | ||||
Cost of sales | 2,468,871 | 19 | % | 1,605,282 | 17 | % | (54 | %) | 4,940,748 | 19 | % | 3,079,861 | 16 | % | (60 | %) | ||||
Gross profit | 10,616,570 | 81 | % | 7,872,182 | 83 | % | 35 | % | 20,739,867 | 81 | % | 15,820,795 | 84 | % | 31 | % | ||||
Operating expenses | ||||||||||||||||||||
General and administrative | 2,558,469 | 20 | % | 2,160,235 | 23 | % | (18 | %) | 6,169,561 | 24 | % | 4,005,747 | 21 | % | (54 | %) | ||||
Sales and marketing | 1,739,979 | 13 | % | 1,023,250 | 11 | % | (70 | %) | 3,021,644 | 12 | % | 2,071,639 | 11 | % | (46 | %) | ||||
Research and development | 3,293,624 | 25 | % | 2,634,222 | 28 | % | (25 | %) | 5,813,645 | 23 | % | 4,658,589 | 25 | % | (25 | %) | ||||
Depreciation of property and equipment | 82,885 | 1 | % | 60,556 | 1 | % | (37 | %) | 158,168 | 1 | % | 103,873 | 1 | % | (52 | %) | ||||
Depreciation of right-of-use assets | 101,742 | 1 | % | 52,094 | 1 | % | (95 | %) | 197,649 | 1 | % | 115,482 | 1 | % | (71 | %) | ||||
Stock based compensation | 293,957 | 2 | % | 314,540 | 3 | % | 7 | % | 571,641 | 2 | % | 583,784 | 3 | % | 2 | % | ||||
Deferred share-based compensation | 97,560 | 1 | % | - | 0 | % | 100 | % | 97,560 | 0 | % | - | 0 | % | 100 | % | ||||
Foreign currency loss (gain) | 54,176 | 0 | % | 186,855 | 2 | % | 71 | % | (159,085 | ) | (1 | %) | 166,180 | 1 | % | 196 | % | |||
Other income and expenses | ||||||||||||||||||||
Amortization of intangible assets | 1,070,214 | 8 | % | 795,270 | 8 | % | (35 | %) | 2,124,461 | 8 | % | 1,479,198 | 8 | % | (44 | %) | ||||
Business acquisition, restructuring and integration costs | 353,016 | 3 | % | 528,337 | 6 | % | 33 | % | 1,011,365 | 4 | % | 943,064 | 5 | % | (7 | %) | ||||
Loss (gain) on change in fair value of contingent consideration | 246,325 | 2 | % | 0 | 0 | % | 100 | % | 695,402 | 3 | % | (128,270 | ) | (1 | %) | 642 | % | |||
Interest expense and accretion (net of interest income) | (37,368 | ) | (0 | %) | 110,405 | 1 | % | 134 | % | (76,355 | ) | (0 | %) | 105,686 | 1 | % | 172 | % | ||
Interest expense from lease liabilities | 19,475 | 0 | % | 15,318 | 0 | % | (27 | %) | 40,344 | 0 | % | 32,936 | 0 | % | (22 | %) | ||||
Current and deferred income taxes | 121,065 | 1 | % | (84,536 | ) | (1 | %) | 243 | % | 739,325 | 3 | % | 41,366 | 0 | % | (1687 | %) | |||
Net income | 621,451 | 5 | % | 74,579 | 1 | % | 733 | % | 783,619 | 3 | % | 1,512,194 | 8 | % | (48 | %) | ||||
EBITDA (Non-IFRS measure) | 1,979,464 | 15 | % | 1,023,686 | 11 | % | 93 | % | 3,967,211 | 15 | % | 3,390,734 | 18 | % | 17 | % | ||||
Adjusted EBITDA (Non-IFRS measure) | 2,970,322 | 23 | % | 1,866,563 | 20 | % | 59 | % | 5,894,102 | 23 | % | 4,917,582 | 26 | % | 20 | % | ||||
Annual recurring revenue (Non-IFRS measure) | 41,008,702 | 31,219,508 | 31 | % | 41,008,702 | 31,219,508 | 31 | % | ||||||||||||
Term licences, maintenance and support revenue | 10,210,645 | 78 | % | 7,232,646 | 76 | % | 41 | % | 20,208,129 | 79 | % | 12,965,537 | 69 | % | 56 | % | ||||
As at | ||||||||||||||||||||
$ | $ | |||||||||||||||||||
Deferred revenue | 24,668,947 | 15,495,461 | ||||||||||||||||||
Cash balance | 22,944,268 | 17,452,210 |
ABOUT
Software for
The Company has a robust two-pronged growth strategy, targeting organic growth opportunities within its product suite, and pursuing an aggressive M&A plan. Currently
https://www.vitalhub.com/
CAUTIONARY STATEMENT
Certain statements contained in this news release may constitute "forward-looking information" or "financial outlook" within the meaning of applicable securities laws that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information or financial outlook. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of the management of each entity and are based on assumptions and subject to risks and uncertainties. Although the management of each entity believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
CONTACT INFORMATION
Chief Executive Officer, Director
(416) 727-9061
dan.matlow@Vitalhub.com
Source:
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