CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF,
Frankfurt: 6PH) (“
CloudMD” or the
“
Company”), a healthcare technology and innovative
health services company transforming the delivery of care, is
pleased to provide an update on its cost optimization process,
integration of its comprehensive health services platform and
organizational structure.
CloudMD’s cost optimization team is dedicated to
creating shareholder and client value through the integration of
people, process, and technology across the entire organization.
Since the start of the year, approximately $7.5 million of
annualized run-rate costs have been eliminated from the
organization through integration, cost-synergies and streamlining
operational functions across the entire business. The full benefit
of these cost savings is expected to be realized in the second
quarter. This exceeds the expected $4 million in cost savings the
Company previously disclosed.
“We are pleased with our ability to accelerate
the identification and elimination of $7.5 million of run-rate
costs which we have already been taken out of the business since
the beginning of the year. In addition, we have used this
opportunity to re-evaluate the organizational structure and
streamline our business operations to prioritize exemplary service
for our customers. This will result in our customers realizing
increased return on investment and return on employee
satisfaction,” commented John Plunkett, EVP, Transformation
and Strategic Planning at CloudMD. CloudMD
has demonstrated its ability to execute on its cost optimization
strategy to drive sustainable profitability by:
- Integrating MindBeacon’s iCBT
solution into CloudMD’s Mental Health Support Solutions, providing
user engagement through assessment and treatment options for mild,
moderate and chronic conditions.
- Streamlining and consolidating key
operational functions across Finance, IT, Human Resources,
Marketing and Sales and leveraging industry leading talent to drive
innovation, retention and capitalize on human capital.
- Strengthening Digital Health
Solutions by creating a new product management team focused on
innovation and continuing to meet the health needs of
individuals.
The Company believes there are additional
efficiencies to be realized as it continues its integration efforts
this year. In addition, CloudMD is also focused on cross-sell
revenue synergies through its complete and connected health
ecosystem, which will support continued strong top-line
growth. As part of
the cost optimization, CloudMD has made some changes to its
organizational structure to streamline the operations and create a
more efficient business. Several positions have been reorganized
and / or consolidated to leverage important capabilities, share
best practices and drive growth throughout the organization. As
part of the reorganization, effective March 31, 2022, Kanchan
Thindal has stepped down as the Company’s Chief Operating Officer
(COO). Karen Adams, President, will assume the roles and
responsibilities of COO for the Company. CloudMD would like to
thank Kanchan for her dedication and support over the last four
years through the Company’s significant growth.
Through the organizational restructure, CloudMD
has made several changes to consolidate and strengthen the depth of
its leadership team including appointing Lu Barbuto, EVP Enterprise
Health Solutions; Adam Kelly, Chief Commercial Officer; Aida
Begovic, EVP Digital Health Solutions; John Plunkett, EVP
Transformation and Strategic Planning; Jon Harju, SVP, Engineering;
Bronwyn Ott, SVP, Human Resources and Olga McRae, Corporate
Secretary. CloudMD has also introduced a process to continually
review and evaluate its operational integration and additional
changes may be implemented as indicated by such process.
No changes have been made to CloudMD’s current
business units, Clinics & Pharmacies, Digital Health Solutions
and Enterprise Health Solutions.
“Execution of our strategy is dependent on
diligent cost management throughout the year. We are focusing on
higher productivity and sustainable cost effectiveness to position
us for increased profit and scalability,” stated Karen
Adams, President of CloudMD. “The focus
is on delivering the product vision, while ensuring we have the
operating model and capabilities to deliver profitable growth. The
actions we are announcing today, and the processes we have
introduced, will better align our organization and cost structure
to achieve these objectives. We will continue driving revenue and
margin expansion by adding capabilities to our patented integrated
healthcare platform, cross selling our capabilities portfolio, and
bringing new, innovative healthcare solutions to the market.”
About CloudMD Software &
Services
CloudMD is transforming the delivery of
healthcare using technology and by providing a patient-centric
approach, with an emphasis on continuity of care. By leveraging
healthcare technology, the Company is building one, connected
platform that addresses all points of a patient’s healthcare
journey and provides better access to care and improved outcomes.
Through CloudMD’s proprietary technology, the Company delivers
quality healthcare through a holistic offering including hybrid
primary care clinics, specialist care, telemedicine, mental health
support, healthcare navigation, educational resources, and
artificial intelligence (AI). CloudMD’s business is separated into
three main divisions: Clinics and Pharmacies, Digital Solution and
Enterprise Health Solutions, the Company’s fastest growing
division. CloudMD’s Enterprise Health Solutions Division has built
a leading employer healthcare solutions, including its
Comprehensive Integrated Health Services Platform, which offers one
comprehensive, digitally connected platform for educational
institutions, corporations, insurers, and advisors to better manage
the health and wellness of their students, employees, and
customers.
CloudMD currently services a combined ecosystem
of over 7,000 psychiatrists, approximately 4,500 therapists and
counsellors, approximately 4,000 psychologists, over 22,000 family
physicians, over 34,000 medical specialists, over 1,500 allied
health professionals, over 500 clinics, and over 5 million
individuals across North America. For more information
visit: https://investors.cloudmd.ca.
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD"Chief Executive Officer
FOR ADDITIONAL INFORMATION CONTACT:
Julia Becker VP, Investor
Relationsjulia@cloudmd.ca(604)785-0850
FORWARD-LOOKING STATEMENTS
This news release contains “forward-looking
statements” and “forward-looking information” within the meaning of
Canadian securities laws. Forward-looking statements in this news
release include, but are not limited to: when the benefit of the
cost savings will be realized and the impact of such savings; the
timing and impact of integration, including on top-line growth; and
future changes that may be implemented as a result of the review
and evaluation process. These statements are based upon information
currently available to CloudMD’s management. All information that
is not clearly historical in nature may constitute forward‐looking
statements. In some cases, forward‐looking statements may be
identified by the use of terms such as “forecast”, “assumption” and
other similar expressions or future or conditional terms such as
“anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”,
“may”, “plan”, “predict”, “project”, “will”, “would”, and “should”.
Forward-looking statements contained in this news release are based
on certain factors and assumptions made by management of CloudMD
based on their current expectations, estimates, projections,
assumptions and beliefs regarding their business and CloudMD does
not provide any assurance that actual results will meet
management’s expectations. While management considers these
assumptions to be reasonable based on information currently
available to them, they may prove to be incorrect. Such
forward‐looking statements are not guarantees of future events or
performance and by their nature involve known and unknown risks,
uncertainties and other factors, including those risks described in
the Company’s MD&A and most recent Annual Information Form
(which are filed under the Company’s issuer profile on SEDAR and
can be accessed at www.sedar.com), that 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 statements. Although CloudMD has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward‐looking statements, other factors may cause
actions, events or results to be different than anticipated,
estimated or intended. There can be no assurance that such
statements will prove to be accurate as actual results and future
events could vary or differ materially from those anticipated in
such forward‐looking statements. Accordingly, readers should not
place undue reliance on forward‐looking information. CloudMD does
not undertake to update any forward-looking information, whether as
a result of new information or future events or otherwise, except
as may be required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
CloudMD Software & Servi... (TSXV:DOC)
Historical Stock Chart
From Mar 2024 to Apr 2024
CloudMD Software & Servi... (TSXV:DOC)
Historical Stock Chart
From Apr 2023 to Apr 2024