- Record revenue for the quarter up 16% to $2.7M for Q2 2023 compared to $2.3M for Q2 2022.
- As a result of significant revenue growth and cost optimization
initiatives, loss from operations was $(0.6)M, an improvement of $1.6M or 71%, when compared to Q2 2022.
- Adjusted EBITDA(1) loss for Q2 2023 was $(0.2)M, an improvement of $1.7M, or 88% relative to Q2 2022,
positioning Carebook to achieve its goal of generating
positive Adjusted EBITDA(1) in the near future.
- Adjusted EBITDA Margin(1) of (9)% in Q2 2023
compared to (81)% in Q2 2022.
- Net Loss for Q2 2023 was $(0.7)M
and also improved by 72% year-over-year.
- Raised $2.5M in additional gross
proceeds from equity financings during the six months ended
June 30, 2023.
- $4.4M in additional contract
value signed during the first two quarters of 2023.
- ARR(2) of $10.6M as of
June 30, 2023, an increase of 19%
over the same date in 2022.
MONTREAL, Aug. 22,
2023 /CNW/ - Carebook Technologies Inc.
("Carebook" or the "Company") (TSXV: CRBK) (OTCPK:
CRBKF) (XFRA: PMM1), a leading Canadian provider of innovative
digital health solutions today announced its results for the
quarter ended June 30, 2023.
"We continue to execute on our business plan, completed several
large implementations during the quarter and signed over
$4M in additional contract value
during the first two quarters" commented Michael Peters, Carebook CEO. "We reached
another new high this quarter in terms of our revenue and continued
our drive towards profitability. Our focus on cost management
coupled with significant contract expansions confirms Carebook's
positive trajectory and reinforces our belief in our ability to
achieve profitable growth in the near future."
_______________________________
1 EBITDA and Adjusted EBITDA are non-IFRS financial
measures, and Adjusted EBITDA Margin is a non-IFRS financial ratio,
in each case without a standardized meaning under IFRS and which
may not be comparable to similar measures or ratios used by other
issuers. Please refer to the sections "Cautionary Note Regarding
Non-IFRS Measures, non-IFRS Ratios and Key Performance Indicators",
"Non-IFRS Measures and Non-IFRS Ratios" and "Non-IFRS Measures and
Reconciliation of Non-IFRS Measures EBITDA and Adjusted EBITDA" for
the definitions of such non-IFRS financial measures and ratio, an
explanation of the usefulness of such non-IFRS financial measures
and ratio, and a reconciliation of non-IFRS financial measures to
the most directly comparable IFRS financial measure.
2 Annual Recurring Revenue or ARR is a key
performance indicator. Please refer to the sections "Cautionary
Note Regarding Non-IFRS Measures, non-IFRS Ratios and Key
Performance Indicators" and "Key Performance Indicators" below for
the definition of ARR, as well as an explanation of the usefulness
of such key performance indicator to the Company.
|
Q2 2023 Highlights
Revenue
Revenue for the quarter ended June 30,
2023 was $2.7M compared to
$2.3M for the quarter ended
June 30, 2022, an increase of 16%
which was primarily driven by organic growth in the pharmacy
vertical and an increase in license revenue from CoreHealth offset
by a decrease in implementation revenue at CoreHealth and a
decrease in license revenue at Infotech. Revenue generated in the
quarter ended June 30, 2023, was 61%
from the employer vertical, down from 75% during the same quarter
in 2022 due to significant contract expansions from our major
pharmacy client. Recurring revenue from the employer vertical
business is expected to increase during 2023, following the
implementation of several large customers during the fourth quarter
of 2022 and the first half of 2023.
Loss from Operations and Net Loss
Loss from operations for the quarter ended June 30, 2023, was $(0.6)M compared to $(2.3)M in the same period of 2022, an
improvement of $1.6M or 71%. The
decrease in operating expenses was due to lower general and
administrative costs and lower sales and marketing costs.
Net loss was $(0.7)M for the
quarter ended June 30, 2023, compared
to a loss of $ (2.4)M for the quarter
ended June 30, 2022, an improvement
of 72%. The variance is driven mostly by higher revenue and a lower
loss from operations.
Adjusted EBITDA
Adjusted EBITDA(1) loss for the quarter ended
June 30, 2023 was $(0.2)M compared to $(1.9)M for the quarter ended June 30, 2022, an improvement of $1.7M or 88% over the same period in 2022. The
corresponding Adjusted EBITDA Margin(1) for the quarter
ended June 30, 2023 was (9)% compared
to (81)% in Q2 2022, and represented a meaningful improvement,
positioning Carebook to achieve its goal of generating
positive Adjusted EBITDA(1) in the near future.
Additional Financing During the First Half of the
Year
On March 8th, 2023, the Company
announced the closing of a non-brokered private placement of units
at $0,10 per unit with UIL Limited,
its largest shareholder, for $1.25M
in gross proceeds. The private placement resulted in the issuance
of 12,500,000 Common Shares and 187,500 Common Share purchase
warrants, with each whole warrant entitling the holder to acquire
one Common Share for $0.15 on or
before March 8th, 2025.
On May 23rd, 2023, the Company
announced the closing of a non-brokered private placement of units
at $0.10 per unit with Permanent
Mutual Limited, an affiliate of UIL Limited, for $1.25M in gross proceeds. The private placement
resulted in the issuance of 12,500,000 Common Shares and 187,500
Common Share purchase warrants, with each whole warrant entitling
the holder to acquire one Common Share for $0.15 on or before May
23rd, 2025.
Large Contract Increase with existing European client and
Expansion of Statement of Work with Major Pharmacy
Client
On June 30, 2023, CoreHealth, a
wholly-owned subsidiary of the Company signed a significant
extension to an existing contract with a large European client,
representing an increase in contract value of $2.8M over the extended 3.5-year term. On
July 19th, 2023, CoreHealth
announced further details regarding the contract extension,
confirming its partnership with AG Health Partner ("AGPH") and that
the CoreHealth platform was made available to an additional 550,000
eligible members, most of whom are employees working for clients of
AG Insurance, AGPH's parent company and market leader in
Belgium.
In 2022, Carebook announced a significant new order under its
pharmacy solution agreement with its major pharmacy client. On
April 21, 2023, Carebook further
expanded the scope of work under its pharmacy solution with its
major pharmacy client, adding another $1.6M in contract value over a one-year term.
Cost Reduction Measures and Sublease of Montreal
Headquarters
During the last quarter of 2022, the Company implemented
additional cost reduction measures that resulted in additional
annual savings. On November 10, 2022,
the Company entered into an agreement to sublease the entire
premises of its Montreal office
commencing on May 1, 2023 until the
end of the lease on July 31, 2028.
These initiatives, when combined with the strong revenue growth
that the Company is experiencing, reinforce the trajectory of the
Company towards profitability.
Financial Outlook
Carebook's financial outlook continues to be positive for 2023.
The Company is poised to achieve significant revenue growth while
effectively managing its costs and delivering sustained growth in
cashflows. Carebook's strong organic growth and efficient cost
management initiatives will allow the Company to continue to
successfully execute on its strategy. Carebook is expecting to
maintain strong performance in 2023 for the entire Company as a
whole. To complement its organic growth strategy, Carebook will
continue to seek out accretive acquisitions and partnerships that
improve the accessibility, quality, and functionality of its
comprehensive solutions, surrounding ecosystem, and supporting
services. Carebook has adopted a disciplined approach towards
exploring strategic M&A opportunities in order to grow its
reach in other markets and offer new services to its customer base,
while maintaining a focus on its organic growth. This financial
outlook is fully qualified and based on a number of assumptions and
subject to a number of risks described under the headings
"Financial Outlook Assumptions" and "Notice Regarding
Forward-Looking Statements" of this press release.
Conference Call Details
A conference call will be held at 8:30 AM Eastern
on August 22, 2023 to discuss Carebook's year end
financial results. Participants may join the Company's conference
call by using the following information
Conference Call
Details
|
|
Date
|
Tuesday, August 22,
2023
|
Time:
|
8:30 a.m. Eastern
Time
|
Local:
|
416-764-8659
|
North American Toll
Free:
|
1-888-664-6392
|
RapidConnect
URL:
|
Click here
|
Webcast URL:
|
Click here
|
|
|
Conference
Replay
|
|
Local:
|
416-764-8677
|
North American Toll
Free:
|
1-888-390-0541
|
Entry Code:
|
730905 #
|
Expiration
Date:
|
08/29/2023
|
Carebook's interim condensed consolidated financial statements
and accompanying notes, and Management's Discussion and Analysis
for the quarter ended June 30, 2023 are available on the
Company's website at www.carebook.com and on SEDAR
at www.sedar.com.
Cautionary Note Regarding Non-IFRS Measures, non-IFRS Ratios
and Key Performance Indicators
This press release makes reference to certain non-IFRS measures
and key performance indicators. These measures are not standardized
financial measures under IFRS as issued by the IASB and do not have
a standardized meaning prescribed by IFRS and are therefore
unlikely to be comparable to similar measures presented by other
companies. Rather, these measures are provided as additional
information to complement those IFRS measures by providing further
understanding of our results of operations from management's
perspective. Accordingly, these measures should not be considered
in isolation nor as a substitute for analysis of our financial
information reported under IFRS. We use non-IFRS measures,
including "EBITDA" and "Adjusted EBITDA" and non-IFRS ratios
including "Adjusted EBITDA Margin". This press release also makes
reference to "Annual Recurring Revenue" or "ARR", which is a key
performance indicator used in our industry. These non-IFRS
measures, non-IFRS ratios and key performance indicators are used
to provide investors with supplemental measures of our operating
performance and liquidity and thus highlight trends in our business
that may not otherwise be apparent when relying solely on IFRS
measures. The Company also believes that securities analysts,
investors, and other interested parties frequently use non-IFRS
measures, non-IFRS ratios and key performance indicators in the
evaluation of issuers. The Company's management also uses non-IFRS
measures, non-IFRS ratios and key performance indicators in order
to facilitate operating performance comparisons from period to
period, to prepare annual operating budgets and forecasts, and to
determine components of management and executive compensation. The
key performance indicators used by the Company may be calculated in
a manner different than similar key performance indicators used by
other companies.
Non-IFRS Measures and Non-IFRS Ratios
"Adjusted EBITDA" is defined as EBITDA adjusted for
non-recurring M&A and other transaction costs, certain
non-recurring costs (or savings), share-based compensation, foreign
exchange loss (gain), intangible asset and goodwill impairment,
changes in fair value of warrants or changes in fair value of
contingent consideration. Adjusted EBITDA provides management with
a useful supplemental measure in evaluating the performance of our
operations and provides better transparency into our results of
operations. Adjusted EBITDA indicates our ability to generate
profit from our operations prior to considering our financing
decisions and costs of consuming intangible and capital assets.
"EBITDA" is defined as net income or loss before income tax
expenses, finance costs and depreciation and amortization.
"Adjusted EBITDA Margin" is calculated as Adjusted EBITDA
divided by revenue for the relevant period.
Key Performance Indicators
"Annual Recurring Revenue" or "ARR" represents contracted
software and services revenues that are expected to have a duration
of more than one year, and is equal to the annualized value of
contracted recurring revenue from all clients on our platforms at
the date being measured. Contracted recurring revenue is revenue
generated from clients who are, as of the date being measured,
party to contracts with Carebook that are contributing to revenue
in the calendar month of the date being measured, and also include
revenue from clients who are, as of the date being measured, party
to contracts with Carebook that are to contribute to revenue within
a year of the date being measured. ARR provides a consolidated
measure by which we can monitor the longer-term trends in our
business.
Non-IFRS Measures and Reconciliation of Non-IFRS Measures
EBITDA and Adjusted EBITDA
|
|
|
|
|
|
THREE MONTHS
ENDED
June 30, 2023
|
|
|
THREE MONTHS
ENDED
June 30, 2022
|
|
|
SIX MONTHS
ENDED
June 30, 2023
|
|
|
SIX MONTHS
ENDED
June 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
$
|
(687)
|
|
$
|
(2,435)
|
|
$
|
(1,146)
|
|
$
|
(4,239)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization and
depreciation expense
|
|
|
|
$
|
402
|
|
$
|
557
|
|
$
|
819
|
|
$
|
1,046
|
M&A
costs
|
|
|
|
|
$
|
-
|
|
$
|
17
|
|
$
|
-
|
|
$
|
17
|
Finance
costs
|
|
|
|
|
$
|
378
|
|
$
|
290
|
|
$
|
751
|
|
$
|
562
|
Other income
(1)
|
|
|
|
|
$
|
(197)
|
|
$
|
-
|
|
$
|
(211)
|
|
$
|
-
|
Income Tax expense
(recovery)
|
|
|
|
|
$
|
(320)
|
|
$
|
(137)
|
|
$
|
(640)
|
|
$
|
(273)
|
Impairment
(2)
|
|
|
|
|
$
|
178
|
|
$
|
-
|
|
$
|
178
|
|
$
|
-
|
EBITDA (3)
|
|
|
|
|
$
|
(246)
|
|
$
|
(1,708)
|
|
$
|
(249)
|
|
$
|
(2,887)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-Based
compensation
|
|
|
|
|
$
|
12
|
|
$
|
(195)
|
|
$
|
58
|
|
$
|
124
|
Additional One-Time
Costs (Savings) (4)
|
|
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(512)
|
|
$
|
-
|
Adjusted EBITDA (3)
|
|
|
|
|
$
|
(234)
|
|
$
|
(1,903)
|
|
$
|
(703)
|
|
$
|
(2,763)
|
(1)
|
Other income includes a
gain following the initial recognition of the net investment from
the Montreal office sublease.
|
(2)
|
Impairment on disposal
of leasehold improvements from Carebook subleasing the
Montreal office.
|
(3)
|
Non-IFRS financial
measures without a standardized definition under IFRS, which may
not be comparable to similar measures used by other issuers. Refer
to the Section "Non-IFRS Measures and Non-IFRS Ratios" for an
explanation of the composition and usefulness of these non-IFRS
financial measures.
|
(4)
|
Additional One-Time
Costs (Savings) relate to a grant from the Quebec
government.
|
About Carebook Technologies
Carebook's digital health platform empowers its clients and more
than 3.5 million members to take control of their health journey.
During 2021, the Company completed the acquisitions of InfoTech
Inc. ("InfoTech"), a global leader in health and
productivity risk management, and CoreHealth Technologies Inc.
("CoreHealth"), owner of an industry-leading wellness
platform. In combination, these companies create a comprehensive
digital health platform that includes both assessment tools and the
technology to deliver complementary solutions. Carebook's shares
trade on the TSXV under the symbol "CRBK," on the OTC Markets under
the symbol "CRBKF," and are listed on the Open Market of the
Frankfurt Stock Exchange under the symbol "PMM1."
www.carebook.com
For further information contact:
Carebook Investor Relations Contact:
Olivier Giner, CFO
Email : ir@carebook.com
Telephone: (450) 977-0709
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this news release.
Financial Outlook Assumptions
Our financial outlook is based on a number of assumptions,
including assumptions related to inflation, changes in interest
rates, consumer spending, foreign exchange rates and other
macroeconomic conditions; our major revenue streams remaining in
line with our expectations; customers adopting our solutions at an
average contract value at or above that of our planned levels; our
ability to price our products in line with our expectations and to
achieve suitable margins; our ability to achieve success in the
continued expansion of our product lines and solutions; continued
success in additional product adoption and user base expansion
throughout our customer base; our ability to derive the benefits we
expect from the acquisitions we have completed; our ability to
attract and retain key personnel required to achieve our plans; our
expectations regarding the costs, timing and impact of our cost
reduction initiatives; our ability to manage customer churn and
churn rates remaining at planned levels. Our financial outlook does
not give effect to the potential impact of acquisitions that may be
announced or closed after the date hereof. Our financial outlook,
including the various underlying assumptions, constitutes
forward-looking information and should be read in conjunction with
the cautionary notice on forward-looking statements below. Many
factors may cause our actual results, level of activity,
performance or achievements to differ materially from those
expressed or implied by such forward-looking information.
Notice Regarding Forward-Looking Statements:
This release includes forward-looking information and
forward-looking statements within the meaning of Canadian
securities laws regarding Carebook, its subsidiaries and their
business. Often, but not always, forward-looking information 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. Forward-looking information
in this release include statements with respect to revenue, our
2023 full year outlook, the Company's growth strategy, management's
expectations regarding revenue growth and cost management, contract
generation and the overall value of recently signed contracts, the
Company's path to profitability, the Company's M&A strategy and
the expected benefits from completed and integrated acquisitions.
Such statements are based on the current expectations of the
management of Carebook and are based on assumptions and subject to
risks and uncertainties. Although the management of Carebook
believes that the assumptions underlying these statements are
reasonable, they may prove to be incorrect, and undue reliance
should not be placed on such forward-looking statements. The
forward-looking statements reflect the Company's current views with
respect to future events based on currently available information
and are inherently subject to risks and uncertainties. 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 Company, including economic factors,
management's ability to manage and to operate the business of
Carebook, management's ability to identify attractive M&A
opportunities, management's ability to successfully integrate the
Company's completed acquisitions and to realize the synergies of
such acquisitions, management's ability to successfully complete
product studies, the equity markets generally and risks associated
with growth and competition, management's ability to achieve
profitability for the Company, as well as the risk factors
identified in the Company's management's discussion and analysis
for the year ended December 31, 2022,
a copy of which can be found on SEDAR under the Company's profile
at www.sedar.com. Although Carebook 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. Accordingly, readers should not
place undue reliance on any forward-looking statements or
information. 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
Carebook does not undertake any obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events, or otherwise.
SOURCE Carebook Technologies Inc.