Tuesday, September 9, 2025

CloudMD Posts $40.3 Million In Revenue, $44.2 Million Net Loss In Q2 2022

CloudMD Software & Services Inc. (TSXV: DOC) reported on Monday its Q2 2022 financials, highlighting a quarterly revenue of $40.3 million, down from Q1 2022’s $41.4 million but up from Q2 2021’s $15.7 million.

The firm is attributing the year-on-year increase to the continued revenue contribution from the acquired MindBeacon business through Enterprise Health Solutions. It also touts that its five acquisitions since Q2 2021 contributed to the revenue growth.

However, it was also noted that the revenue was impacted by the end of its one-time COVID contracts, “which are expected to be replaced moving forward.”

“Our Q2 results reflect the strength of our core Enterprise Health Solutions business in the face of headwinds and distractions from our non-core business and overhang from previously made acquisitions,” said recently-appointed CEO Karen Adams who officially took the helm on August 11. “There is an incredible opportunity for our EHS division as industry trends converge with our differentiated product offering.”

In light of the “organic growth and customer momentum within the EHS division,” Adams added that the company is “taking the necessary steps to enable the performance of [its] core business to shine.”

Gross margin declined to 31.0% from both last quarter’s 32.5% and last year’s 35.5%. The firm also saw its expenses grew more than double to $26.5 million from $12.2 million a year ago. This led to a wider operating loss of $14.0 million from last year’s loss of $6.6 million.

However, with a loss on goodwill impairment amounting to $33.0 million among others, the firm posted a quarterly net loss of $44.2 million compared to the losses of the previous quarter at $5.6 million and previous year at $6.6 million net loss. This translates to a $0.15 loss per share.

Quarterly adjusted EBITDA ended at $3.2 million, down from a $1.6 million loss and a $0.6 million loss last quarter and last year, respectively.

The firm also ended the quarter with $29.7 million in cash and cash equivalents coming from a beginning balance of $46.9 million, equating a net cash outflow of $17.2 million. The company noted that this figure is “unusually high for the company,” attributing the cash burn to restructuring costs, professional fees, legal and settlements from past acquisitions.

“As a team, we are focused on reaching profitability and positive operating cash flow,” said CFO John Plunkett, also newly-appointed alongside Adams. “We will continue to focus on further optimization for the remainder of the year. There is work to be done, but I’m encouraged by the steps taken to date.”

Plunkett added that the firm “has made progress in cleaning up [its] cost structure, balance sheet, and outstanding issues from past transactions.” Subsequent to the quarter, the company said it has identified additional $4.0 million annualized savings from “continued organizational re-design and integration.”

Cannacord recently cut down its 12-month price target for the company from $1.50–itself a drop from $3.00 two quarters ago–to $0.45, and downgraded the stock to a hold rating. In this move, the agency cited the firm’s recently won two-year TAiCBT Ontario Government contract at a time when the COVID response is about to unwind, expecting this to “have a significant impact on CloudMD’s quest to achieve breakeven.”

CloudMD Software & Services Inc. last traded at $0.37 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.

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