CloudMD Software & Services Inc. (TSXV: DOC) released on Monday its Q3 2021 financial results which saw the company post quarterly revenue of $39.2 million, as expected from the preliminary results the firm previously announced. This is an increase from Q2 2021’s revenue of $15.7 million and Q3 2020’s revenue of $3.4 million.
“This was a milestone quarter for CloudMD as it’s the first quarter we recognized full revenue contributions from all the recently closed acquisitions and clearly demonstrated that our whole-person, patient-centric approach to healthcare is working,” explained CloudMD CEO Dr. Essam Hamza. The company completed 4 acquisitions in the preceding quarter and 14 acquisitions in the last twelve months.
Currently, the company said it has increased its annual revenue run rate to over $185.0 million, higher than the $155.0 million it previously announced in the preliminary results.
Looking at the financials, the gross margin for the quarter was at 34.0%, down from 35.5% last quarter and 37.5% last year. This is being attributed to the current revenue mix with lower-margin businesses taking 32% of the revenue share.
However, the firm still ended the quarter with a $4.3 million net loss compared to a $6.0 million net loss last quarter and a $2.7 million net loss last year. This quarter’s loss translates to $0.02 per share.
On the other hand, the company recorded its first positive adjusted EBITDA this quarter with $0.8 million coming from a loss of $0.7 million last quarter and $1.3 million last year.
The firm also ended the quarter with $53.7 million in cash and cash equivalents coming from a beginning balance of $60.9 million. This brings current assets balance to $82.5 million while current liabilities ended at $49.9 million.
The healthtech firm relayed that with the proposed $116.0 million acquisition of MindBeacon Holdings (TSX: MBCN), it expects to have over $60.0 million in cash and cash equivalents. Following this, Cannacord lowered their 12-month price target for the company from $3.50 to $3.00.
CloudMD Software & Services Inc. last traded at $1.33 on the TSX Venture.
Information for this briefing was found via Sedar and CloudMD Software & Services. The author has no securities related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.