Well Health (TSX: WELL) was apparently itching to put out news this morning. That much is evident, based on the company apparently having to dig deep to find a positive development for its operations.
The company this morning provided an update on CognisantMD, which is a subsidiary acquired by the company in the fourth quarter of 2021. The subsidiary focuses on providing “patient engagement technology and ereferral software solutions.”
The big news today is that the firm reached $4.3 million in annual recurring revenue for the company last month. While the figure is said to represent 73% growth year over year, a major positive, such revenue is rather insignificant for a company with a valuation just shy of a billion dollars. What’s more, is the revenue represents approximately 0.9% of the current revenue run rate that the firm was vaguely highlighting last month. Margins were said to be at 95%, with the subsidiary generating positive EBITDA.
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The software platform, referred to as Ocean, is in place at 2,000 clinics within Canada, an improvement of 700 locations year over year.
The acquisition of CognisantMD was conducted just last quarter, with the firm paying $10.6 million in cash at closing, $7.0 million in “time-based payments,” and a further earn-out of $7.0 million.
Well Health last traded at $4.51 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations 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.
