• Total Revenue up 24% YoY to $16.2 million 
• Adjusted EBITDA ⁽²⁾ up 41% YoY to $4.2 million 
• Annual Recurring Revenue (ARR) ⁽¹⁻²⁾ up 25% YoY to $51.3 million

TORONTO, Aug. 08, 2024 (GLOBE NEWSWIRE) -- VitalHub Corp. (the “Company” or “VitalHub”) (TSX:VHI) (OTCQX:VHIBF) announced today it has filed its Interim Condensed Consolidated Financial Statements and Management's Discussion and Analysis report for the three and six months ended June 30, 2024, with the Canadian securities authorities. These documents may be viewed under the Company’s profile at www.sedarplus.com.

"We are pleased to report a strong second quarter in 2024, marked by significant organic growth and strategic advancements,” stated Dan Matlow, CEO of VitalHub. “With our second quarter revenue reaching $16.2 million, a 24% increase from the previous year, and our Adjusted EBITDA⁽²⁾ rising to $4.2 million, a 41% increase from the previous year, we continue to build on our strong foundation. Our gross margin remained robust at 81%, reflecting our ongoing commitment to operational excellence and cost management. Net income before income taxes increased to $1.4 million, an 86% increase from the previous year. This quarter also saw our Annual Recurring Revenue (ARR)^(1-2) grow to $51.3 million, up 25% year-over-year, which underscores the robustness of our business model and the scalability of our solutions. We concluded the quarter with a solid cash position of $71.6 million, enabling us to pursue both organic growth and strategic acquisitions effectively. Subsequent to the quarter's end, we announced a definitive agreement to acquire MedCurrent Corporation (“MedCurrent”), a leader in Clinical Decision Support. This acquisition is a testament to our commitment to integrating cutting-edge technology solutions that enhance healthcare delivery and support our strategic expansion. MedCurrent's innovative platform, OrderWise, which leverages artificial intelligence to optimize clinical decisions at the point of care, aligns perfectly with our aim to reduce healthcare costs and improve patient outcomes.”

“Looking ahead, VitalHub has created a solid platform on which we can continue to build. Our strategy of operational excellence, coupled with disciplined cash management, positions us well to capitalize on emerging opportunities and navigate future challenges in the healthcare technology sector. We are excited about our future prospects and remain committed to driving innovation, enhancing customer value, and expanding our market leadership."

VitalHub Corp’s quarterly investor conference call will take place on Friday, August 9, 2024, at 9:00AM EST.

To register for the call, please visit: https://us02web.zoom.us/webinar/register/WN_-Es4D85lTaCMdHGDz9A15w

Second Quarter 2024 Highlights

• Revenue of $16,237,605 as compared to $13,085,441 in the equivalent prior year period, an increase of $3,152,164 or 24%.
• Gross profit as a percentage of revenue was 81% compared to 81% in the equivalent prior year period.
  
  • Gross profit as a percentage of revenue remained consistent due to an ongoing effort to manage costs and gain operating cost synergies.
• ARR ⁽¹⁻²⁾ at June 30, 2024 was $51,283,570 as compared to $47,834,002 at March 31, 2024, an increase of $3,449,568 or 7%.
  • ARR ⁽¹⁻²⁾ growth was due to organic growth of $1,239,568 or 3%, and acquisition growth of $2,249,000 or 5% and a loss of $39,000 or 0% due to the fluctuations in foreign exchange rates during the quarter.
• Net income before income taxes of $1,383,605 as compared to net income before income taxes of $742,516 in the equivalent prior year period, an increase of $641,089 or 86%.
  • The increase was primarily attributable to the increase in revenues from organic growth and acquisitions, coupled with an ongoing effort to manage costs and gain operating cost synergies.
• EBITDA ⁽²⁾ of $1,972,452 compared to $1,979,464 in the equivalent prior year period, a decrease of $7,012.
• Adjusted EBITDA ⁽²⁾ of $4,193,985 or 26% of revenue, compared to $2,970,322 or 23% of revenue in the equivalent prior year period, an increase of $1,223,663 or 41%.
  
  • The increase in Adjusted EBITDA from Q2 2023 to Q2 2024 was primarily attributable to the higher recurring revenues of $13,039,369 in Q2 2024, as compared to $10,210,645 in Q2 2023, coupled with an ongoing effort to manage costs and gain operating cost synergies.
• On June 7, 2024, the Company acquired all of the issued and outstanding shares of Premier I.T. Partnership Limited (“Premier”) for total consideration of $5,349,327 CAD. Premier is a UK-based company, which offers market-leading workforce planning, development and performance solutions for the healthcare sector.

Six Month 2024 Highlights

• Revenue of $31,494,396 as compared to $25,680,615 in the equivalent prior year period, an increase of $5,813,781 or 23%.
• Gross profit as a percentage of revenue was 81% compared to 81% in the equivalent prior year period.
  
  • Gross profit as a percentage of revenue remained consistent due to an ongoing effort to manage costs and gain operating cost synergies.
• ARR ⁽¹⁻²⁾ at June 30, 2024 was $51,283,570 as compared to $41,008,702 at June 30, 2023, an increase of $10,274,868 or 25%.
  • ARR ⁽¹⁻²⁾ growth was primarily due to organic growth of $6,221,042 or 16%, acquisition growth of $3,311,500 or 8%, and a gain of $742,326 or 2% due to the increase in GBP rates relative to the CAD dollar.
• Net income before income taxes of $3,362,500 as compared to net income before income taxes of $1,522,944 in the equivalent prior year period, an increase of $1,839,556 or 121%.
  • The increase was primarily attributable to the increase in revenues from organic growth and acquisitions, coupled with an ongoing effort to manage costs and gain operating cost synergies.
• EBITDA ⁽²⁾ of $5,071,468 compared to $3,967,211 in the equivalent prior year period, an increase of $1,104,257 or 28%.
• Adjusted EBITDA ⁽²⁾ of $8,238,917 or 26% of revenue, compared to $5,894,102 or 23% of revenue in the equivalent prior year period, an increase of $2,344,815 or 41%.
  
  • The increase in Adjusted EBITDA from Q2 2023 to Q2 2024 was primarily attributable to the higher recurring revenues of $13,039,369 in Q2 2024, as compared to $10,210,645 in Q2 2023, coupled with an ongoing effort to manage costs and gain operating cost synergies.
• Cash on hand at June 30, 2024 was $71,570,488 compared to $33,480,018 as at December 31, 2023.
  • The increase is primarily due to a bought deal offering of approximately $37 million in net proceeds, plus cash generated from operations.
• Cash from operations before changes in working capital was $5,125,317 as compared to $4,068,458 for the same period last year.
• During the quarter, the Company closed a bought deal offering for total gross proceeds of approximately $40,254,000.
  
  • On April 9, 2024, the Company closed a bought deal public offering with a syndicate of investment dealers led by Cormark Securities Inc. (collectively, the “underwriters”) pursuant to which the underwriters purchased 6,709,000 common shares (the "common shares") from the treasury of the Company, at a price of $6.00 per common share for total gross proceeds of approximately $40,254,000.

^{(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.}

ABOUT VITALHUB

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

VitalHub is a leading software company dedicated to empowering Health and Human Services providers. Our clients include hospitals, regional health authorities, mental health and addictions services providers for children and adults, long-term care facilities, home health agencies, correctional services, and community and social services providers. 

VitalHub’s comprehensive suite of SaaS solutions include:

• Electronic Health Record (EHR), Case Management, Care Coordination, and Optimization
• Patient Flow, Operational Visibility, and Patient Journey Optimization
• Workforce Automation

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 more than 1,000 clients across Canada, USA, UK, Australia, the Middle East, and Europe.

VitalHub is based in Toronto, Canada, with an offshore development hub in Sri Lanka. The VitalHub team comprises more than 400 team members globally. The Company is publicly traded on the Toronto Stock Exchange (TSX) under the symbol "VHI" and on the OTC Markets OTCQX Exchange under the symbol "VHIBF".

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

Dan Matlow
Chief Executive Officer, Director
(416) 727-9061
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