Solid start of the year driven by organic
growth and disciplined cost management
- Strong revenue for the quarter up 5% to $2.5M for Q1 2023 compared to $2.4M for Q1 2022.
- Several large client implementations completed in the
quarter.
- As a result of significant revenue growth and cost optimization
initiatives, loss from operations was $(0.4)M, a reduction of $1.2M or 75%, when compared to Q1 2022.
- Adjusted EBITDA(1) for Q1 at $(0.5)M positioning Carebook to achieve its goal
of generating positive Adjusted EBITDA(1) in the near
future. Relative to Q1 2022, Adjusted EBITDA(1)
increased by $0.6M, or 55%,
reflecting stronger revenues, synergies and disciplined cost
management, which drove an Adjusted EBITDA Margin(1) of
(19)% compared to (43)% in Q1 2022.
- Net loss for Q1 2023 was $(0.5)M
and also decreased by 75% year-over-year.
- Raised $2.5M in additional equity
during and subsequent to the quarter.
- $4.4M in additional
contract value signed during 2023.
- ARR(2) of $10.7M as of
March 31, 2023, an increase of 37%
over the same date in 2022.
MONTREAL, May 30, 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 March 31, 2023.
"We continue to execute on our business plan, completed several
large implementations during the quarter and signed over
$4M in additional contract value
since the beginning of the year" commented Michael Peters, Carebook CEO. "We reached a 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.
|
Q1 2023 Highlights
Revenue
Revenue for the quarter ended
March 31, 2023 was $2.5M compared to $2.4M for the quarter ended March 31, 2022, an increase of 5% which was
primarily driven by organic growth in the pharmacy vertical offset
by a decrease in implementation revenue at CoreHealth
and a decrease in license revenue at Infotech.
Revenue generated in the quarter ended March
31, 2023, was 64% from the employer vertical, down from 79%
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 quarter of 2023.
Loss from operations and Total comprehensive
loss
Loss from operations for the quarter ended March 31, 2023, was $(0.4)M compared to $(1.7)M in the same period of 2022, a decrease of
$1.2M or 75%. The decrease in
operating expenses was due to lower general and administrative
costs and lower sales and marketing costs.
Total comprehensive loss was $(0.5)M for the quarter ended March 31, 2023, compared to a loss of
$ (1.8)M for the quarter ended
March 31, 2022, a decrease of 75%.
The variance is driven mostly by higher revenue and a lower loss
from operations.
Additional Financing During the Quarter and Post Quarter
end
On March 8th, 2023, the Company
announced the closing of a non-brokered private placement with UIL
Limited, its largest shareholder, for $1.25M. The private placement resulted in the
issuance of 12,500,000 Common Shares at $0.10 per unit 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 with
permanent Mutual Limited, an affiliate of UIL Limited, for
$1.25M. The private placement
resulted in the issuance of 12,500,000 Common Shares at
$0.10 per unit 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 March 31, 2023, CoreHealth
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.
Subsequent to the quarter end, on April
21, 2023, Carebook further expanded the scope of work under
its pharmacy solution with its major pharmacy client, adding
another $1.6M 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.
Health Care Sector Veteran Domenic Pilla, joins Carebook's
board
On March 28th, 2023, the Company
announced that health-care sector veteran Domenic Pilla had joined its board of directors.
In recent years, Mr. Pilla led McKesson Canada (a
wholly-owned subsidiary of McKesson Corporation), serving as Chief
Executive Officer from 2016 to 2020. He also acted as President and
Chief Executive Officer of Shoppers Drug Mart Corporation from 2011
to 2015.
Outlook
Carebook's 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 have strong performance in 2023 for the entire Company
as a whole. Despite the current geo-political, inflationary, and
turbulent economic environment, the Company does not foresee any
material influences or challenges that would impair its ability to
deliver solid results in 2023. 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.
Conference Call Details
A conference call will be held at 8:30 AM Eastern
on May 31, 2023 to discuss Carebook's year end financial
results. Participants may join the Company's conference call by
using an appropriate dial-in number or via
webcast. For those unable to participate, playback will be made
available an hour after the event at 416-764-8677, or
1-888-390-0541, utilizing passcode 952976.
Carebook's interim condensed consolidated financial statements
and accompanying notes, and Management's Discussion and Analysis
for the quarter ended March 31, 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.
Non-IFRS Measures and Reconciliation of Non-IFRS Measures
EBITDA and Adjusted EBITDA
|
|
THREE
MONTHS
ENDED
March 31, 2023
|
|
THREE
MONTHS
ENDED
March 31, 2022
|
|
|
(000's)
|
|
(000's)
|
Net
loss
|
|
$
(459)
|
|
$
(1,803)
|
Add:
|
|
|
|
|
Amortization and
depreciation expense
|
|
$
421
|
|
$
516
|
Finance
costs
|
|
$
372
|
|
$
272
|
Other income
(1)
|
|
$
(14)
|
|
$
-
|
Income Tax expense
(recovery)
|
|
$
(320)
|
|
$
(137)
|
EBITDA (2)
|
|
-
|
|
$
(1,152)
|
Add:
|
|
|
|
|
Share-Based
compensation
|
|
$
44
|
|
$
118
|
Additional One-Time
Costs (Savings) (3)
|
|
$
(512)
|
|
$
-
|
Adjusted EBITDA
(2)
|
|
$
(468)
|
|
$
(1,034)
|
|
|
(1)
|
Other income relates to
a gain on disposal of property and equipment from Carebook selling
furniture to the subtenant of the Montreal office.
|
(2)
|
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 this non-IFRS
financial measure.
|
(3)
|
Additional One-Time
Costs (Savings) relate to a research and development grant from the
Quebec government.
|
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 of 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.
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.
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.