Compass Therapeutics

Vitalhub Reports Fourth Quarter and Full Year 2022 Results

March 23, 2023 | Last Trade: C$7.06 0.09 -1.26

TORONTO, March 23, 2023 (GLOBE NEWSWIRE) -- Vitalhub Corp. (the “Company” or “Vitalhub”) (TSX:VHI) (OTCQX:VHIBF) announced today it has filed its Consolidated Financial Statements and Management’s Discussion and Analysis report for the year ended December 31, 2022, with the Canadian securities authorities. These documents may be viewed under the Company’s profile at www.sedar.com.

“Our record fourth-quarter revenue capped off fiscal 2022 with strong positive momentum across all of our key performance indicators,” said Dan Matlow, Chief Executive Officer of Vitalhub. “The positive organic and accretive inorganic growth contributed to record Q4 and fiscal 2022 revenue, adjusted EBITDA(2), and annual recurring revenue (“ARR”)(1, 2). We have achieved these milestones despite the continued foreign currency headwinds associated with the British pound as contributions from Community Data Solutions (CDS) and Advanced Digital Innovation (ADI) helped drive ARR(1, 2) to over $36 million. We have continued to grow our organic ARR(1, 2) by 3.0% or $925k and achieved record adjusted EBITDA(2) of $2.4 million representing 22% of revenue for Q4 2022. With the addition of Coyote Software Corporation (“Coyote”) after the quarter, the Company’s estimated ARR(1, 2) would be approximately $37 million. We closed the quarter with $17.5 million in cash on hand and combined with the availability of a Bank of Nova Scotia Facility, we currently have $50.5 million at our disposal for operations and to continue progressing our acquisition strategy. We have concluded the fiscal 2022 year with four major acquisitions including Community Data Solutions, Advanced Digital Innovation, Beautiful Information and Hicom and in addition grew our organic ARR(1, 2) by 18.5% or $4.1 million and achieved record adjusted EBITDA(2) of $9.5 million representing 24% of revenue. For fiscal 2022, the Company has consistently focused and executed organic growth initiatives that complemented synergistic M&A activities to deliver strong value to our shareholders. We are excited by the market traction and penetration we have achieved in fiscal 2022 and look forward to continuing efforts to scale our business in 2023.”

Vitalhub Corp’s quarterly investor conference call will take place on Friday, March 24, 2023, at 9:00AM EST.

To register for the call, please visit:


Fourth Quarter 2022 Highlights

  • Revenue of $11,289,606, an increase of $4,359,316 or 63% from the comparative period in the prior year.
  • Gross profit as a percentage of revenue for Q4 2022 was 82% compared to 79% in Q4 2021 and 80% in Q3 2022.
  • ARR (1, 2) grew by $5,177,935 to $36,145,150, achieving 17% growth in Q4 2022 versus Q3 2022.
  • ARR (1, 2) growth consists of $925,035 or 3% organic growth, $3,000,854 from acquisitions (Community Data Solutions - $2,428,874 and My Pathway - $571,980) or 10%, and $1,252,046 or 4% due to the increase in the value of the GBP pound relative to the CAD dollar from the prior quarter.
  • EBITDA (2) of $470,020 compared to $470,034 in the comparative period in the prior year.
  • Adjusted EBITDA (2) of $2,455,377, or 22% of revenue, compared to $1,351,420 or 20% of revenue in the comparative period in the prior year.
  • Cash on hand at December 31, 2022 was $17,452,210 compared to $16,389,982 as at December 31, 2021.
  • Subsequent to the quarter, the Company acquired all of the issued and outstanding shares of Coyote, a Canadian based company that specializes in tailored software solutions that streamline the workflows of health and social service organizations. Total closing consideration for the acquisition, not including any post-closing working capital adjustments, was $2,265,528 in cash subject to a 15% escrow for six months, and $108,000 through the issuance of 38,163 common shares of Vitalhub which are subject to a four month hold from their date of issuance.
  • With the addition of the ARR (1, 2) of Coyote, the Company’s proforma ARR(1, 2) would be approximately $37,000,000.

Annual 2022 Highlights

  • Revenue of $39,970,814, an increase of $15,306,221 or 62% from the prior year.
  • Gross profit as a percentage of revenue for FY 2022 was 82% compared to 79% in FY 2021.
  • ARR (1, 2) for FY 2022 grew by $14,038,487 or 64% from FY 2021.
  • ARR (1, 2) growth consists of $4,084,909 or 18% organic growth, $10,781,601 from acquisitions (Beautiful Information - $1,032,000, Hicom - $6,748,747, Community Data Solutions - $2,428,874, and My Pathway - $571,980) or 49%, and $828,024 or 4% offset by the impact from foreign exchange changes.
  • EBITDA (2) of $5,250,015 compared to $1,115,477 in the prior year, an improvement of $4,134,539.
  • Adjusted EBITDA (2) of $9,524,708, or 24% of revenue, compared to $4,548,512, or 18% of revenue, in the prior year.
  • Cashflows from operations before changes in working capital was $7,119,817 for FY 2022 as compared to $1,972,933 for FY 2021.
  • Net income of $1,214,636 for the year ended December 31, 2022, compared to a net loss of $1,946,641 in the prior year.
(1)The Company defines annual recurring revenue (“ARR”) as the recurring revenue expected based on yearly subscriptions of the renewable software license fees and maintenance services
(2)Non-IFRS measure

Q4 2022 and FY 2022 Results

 Three months endedYear ended
 December 31, 2022% RevenueDecember 31, 2021% RevenueChangeDecember 31, 2022% RevenueDecember 31, 2021% RevenueChange
 $ $ %$ $ %
Cost of sales1,999,56018%1,463,44021%(37%)7,031,81918%5,237,21021%(34%)
Gross Profit9,290,04682%5,466,85079%70%32,938,99582%19,427,38379%70%
Operating Expenses          
General and administrative2,548,47223%1,441,16421%(77%)8,556,46821%5,079,37921%(68%)
Sales and marketing1,126,83910%967,63014%(16%)4,275,15111%3,614,17315%(18%)
Research and development3,065,53227%1,717,58025%(78%)10,431,21226%6,045,79925%(73%)
Depreciation of right-of-use assets163,2221%70,7131%(131%)342,8631%272,4821%(26%)
Stock based compensation267,5842%628,7899%57%1,140,3873%1,717,0947%34%
Foreign currency (gain) loss93,8261%(10,383)(0%)1004%150,3990%137,9271%(9%)
Other Income and Expenses          
Amortization of intangible assets952,7878%622,7509%(53%)3,279,8038%2,241,2519%(46%)
Business acquisition, restructuring and integration costs1,022,1719%380,8675%(168%)2,438,9046%1,844,2127%(32%)
Loss (gain) on change in fair value of contingent consideration695,4026%(128,270)(2%)642%695,4022%(128,270)(1%)642%
Interest expense and accretion (net of interest income)10,2880%(3,966)(0%)359%40,9140%(29,548)(0%)238%
Interest expense from lease liabilities(76,163)(1%)18,1950%519%29,4310%82,4320%64%
(Gain) loss on disposal of property and equipment00%(561)(0%)100%1,0570%1,5930%34%
Current and deferred income taxes(318,005)(3%)323,0065%198%92,0810%333,0761%72%
Net income (loss)(338,331)(3%)(605,773)(9%)44%1,214,6363%(1,946,641)(8%)162%
EBITDA (Non-IFRS measure)470,2204%470,0347%0%5,250,01513%1,115,4765%371%
Adjusted EBITDA (Non-IFRS measure)2,455,37722%1,351,42020%82%9,524,70824%4,548,51218%109%
Annual Recurring Revenue (Non-IFRS measure)36,145,150 22,106,663 64%36,145,150 22,106,663 64%
Term licences, maintenance and support revenue8,736,26577%5,290,21076%65%29,359,36173%19,250,26678%53%
Deferred revenue     15,495,461 8,821,331  
Cash balance     17,452,210 16,389,982  


Software for Health and Human Services providers designed to simplify the user experience and optimize outcomes.

Vitalhub provides technology to Health and Human Services providers including; Hospitals, Regional Health Authorities, Mental Health, Long Term Care, Home Health, Community and Social Services. Vitalhub solutions span the categories of Electronic Health Record (EHR), Case Management, Care Coordination, Patient Flow & Operational Visibility, and DOCit Mobile Apps. 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, Vitalhub serves 450+ clients across Canada, USA, UK, Australia, Qatar, and Latvia. Vitalhub is based in Toronto, Canada, with an offshore development hub in Sri Lanka. The Company is publicly traded on the TSX Venture Exchange under the symbol “VHI”.


This press release includes forward-looking statements regarding the Corporation and its business, which may include, but is not limited to, statements with respect to the appointment of a new directors. 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. The forward-looking events and circumstances discussed in this release, may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the companies, including risks regarding the technology industry, failure to obtain regulatory or shareholder approvals, market conditions, economic factors, the equity markets generally and risks associated with growth and competition. Although the Corporation 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 Corporation undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.


Dan Matlow
Chief Executive Officer, Director
(416) 727-9061
This email address is being protected from spambots. You need JavaScript enabled to view it.

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