CloudMD Reports Record Q1 2020 Revenue of $3.1 Million
- Record Q1 2020 revenue of $3,056,729, an increase of 178% over Q1 2019
- Healthy gross margins of 41%, increased revenue from high margin verticals throughout remainder of 2020
- Reached over 100,000 registered patients on CloudMD’s telemedicine platform
- Received conditional approval to list on the TSX Venture Exchange under “DOC”
VANCOUVER, British Columbia, June 1, 2020 – CloudMD Software & Services Inc. (CSE: DOC, OTCQB: DOCRF, Frankfurt: 6PH) (the “Company” or “CloudMD”), a telemedicine company revolutionizing the delivery of healthcare to patients, announced its financial results for the first quarter ending March 31, 2020. All financial information is presented in Canadian dollars unless otherwise indicated.
Dr. Essam Hamza, CEO of CloudMD commented, “We had a transformational first quarter which has positioned CloudMD for significant future growth. The acquisition of Livecare and the launch of our CloudMD app in BC and Ontario were two key initiatives for us, and we see great potential in both platforms to drive additional revenue in the future. COVID-19 has transformed the telehealth industry and these platforms allow us to support healthcare practitioners and also treat patients and provide exceptional patient care when they need it and from the safety of their own living rooms.” He continued, “For the remainder of the year, we are focused on executing our strategic growth plan which includes additional M&A opportunities, key partnerships and expanding our growing platform across Canada and North America.”
COVID-19 Impact
The coronavirus pandemic has drastically changed the telemedicine industry as more practitioners are forced to close practices and work from home. COVID-19 caused a surge in registered users across CloudMD’s entire enterprise and consumer businesses. The pandemic has expedited CloudMD’s growth plans as more practitioners are using hybrid, telemedicine solutions to compliment brick and mortar practices. CloudMD’s hybrid platform allowed its doctors to shut their physical doors and open up virtual waiting rooms immediately, which helped support the pandemic response and the mitigation phase ordered by government agencies. Due to COVID-19, all provinces across Canada have implemented telehealth billing codes which greatly helps the Company’s national rollout plan of its CloudMD app – currently only available in BC and Ontario.
Q1 2020 Financial Highlights
- Q1 2020 total revenue was $3,056,729, compared to $1,100,330 in Q1 2019, an increase of 178%. The revenue generated from SAAS model digital services was $427,179 compared to $240,787 in Q1 2019, an increase of 77% primarily attributable to organic growth. The revenue generated from medical clinics and pharmacies was $2,629,550 compared to $859,543 in Q1 2019, an increase of 206% primarily attributable to the Company’s acquisitions over the past year.
- Q1 2020 gross margin was 41%, compared to the same 41% in Q1 2019. Gross margins remained stable as the Company increased the revenue generated from higher margin digital services and telehealth but incurred higher than usual variable costs primarily due to the Company’s expansion into Ontario. The Company expects the gross margin to improve as efficiencies are realized and to remain strong for the remainder of 2020 as it begins to recognize additional revenue from high margin sources like digital services, pharmacy kiosk partnerships and telehealth visits.
- Net loss and comprehensive loss in Q1 2020 was $1,622,994, resulting in a net loss per share (basic and diluted) of $0.02. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss was $914,646 for Q1 2020, compared with adjusted EBITDA loss of $917,112 in Q1 2019.
- CloudMD ended Q1 2020 with a balance sheet of $2,760,136 in cash. This amount did not include subscription receivable of $200,000 subsequently received after March 31, 2020. Additionally, the cash position does not reflect the $13 million bought deal financing CloudMD anticipates closing on June 2, 2020.
Other Q1 Highlights and Events Subsequent to the Quarter
- On January 9, 2020 CloudMD appointed Richard Atkins as SVP, Sales. Richard brings over 30 years experience in global business development and sales. Richard’s most recent position was SVP of sales of Health Navigator, a US healthtech company recently purchased by Amazon for their telehealth platform.
- On January 13, 2020, the Company announced it closed the acquisition of Livecare, one of the pioneer turnkey telehealth platforms, which enables practitioners to transition traditional practices to offer telemedicine services.
- On January 14, 2020, the Company appointed Dr. Amit Mathur a founder of Livecare, to the Board of directors, subsequently appointing him President in February 2020.
- On January 23, 2020, the Company announced 90,000 patients registered on its MyHealthAccess telemedicine portal, which enables its Juno EMR patient database to directly interact with healthcare providers via smart device applications or the web.
- On February 5, 2020, the Company launched the CloudMD app in British Columbia, a direct to consumer telemedicine app which allows the provinces 5 million patients to see a doctor from the safety and comfort of their home when they need it.
- On February 20, 2020, the Company announced a name change from “Premier Health Group Inc.” to “CloudMD Software & Services Inc.” to better reflect its strategic focus on health technologies and digital health.
- On March 2, 2020, the Company announced a $3 million brokered private placement. The Company closed the oversubscribed private placement on March 30, 2020.
- On March 9, 2020, CloudMD increased doctor onboarding on its CloudMD telemedicine app amid growing Coronavirus concerns.
- On March 16, 2020, CloudMD announced that it would be offering free trial telemedicine solutions to healthcare professionals across North America to help support the fight against the Coronavirus pandemic.
- On March 19, 2020, the Company appointed Mark Kohler to the Board of Directors. Mark brings over 32 years of experience as an entrepreneur, financial executive, board member, and investor at leading North American healthcare, technology, and financial services companies including as the executive chairman of QHR leading to its sale to Loblaws for $170M in 2016.
- On March 31, 2020, the Company launched its CloudMD Telemedicine app in Ontario to the province’s over 14 Million patients.
- On April 7, 2020 the Company announced that CloudMD reached over 100,000 registered users on its telemedicine platform.
- On April 30, 2020, the Company announced that its Livecare telehealth platform has been added to preferred vendor lists of leading Government associations across Canada which represent over 20,000 practitioners. Livecare offers health professionals a complete virtual healthcare solution to compliment traditional practices by streamlining records management, scheduling, consultations and appointments and offering secure patient/physician communication.
- On May 4, 2020, CloudMD announced a partnership with Save-On-Foods and Pure Integrative Pharmacies, Western Canada’s largest grocery chain and part of the Jimmy Pattison Group, to pilot on demand virtual care by integrating telemedicine Kiosks in Pharmacies across BC.
- On May 7, 2020, CloudMD partnered with innovative U.S. based technology leader IDYA4 Corp. to expand its telemedicine solutions to its current and future customer base including the Department of Defense, Homeland Security, Deloitte and the Bureau of Justice Assistance.
- On May 12, 2020, CloudMD announced a $10 million bought deal public offering and subsequently upsized it to $13 million on May 13th. The Underwriters agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, an aggregate of 18,572,000 units (the “Units”) at a price of C$0.70 per Unit for aggregate gross proceeds to the Company of approximately $13 million. The Company anticipates the financing will close on June 2, 2020.
Certain information provided in this news release is taken from the unaudited interim Financial Statements and Management’s Discussion & Analysis (“MD&A”) of the Company for the three months ended March 31, 2020 and should be read in conjunction with them. It is only in the context of the fulsome information and disclosures contained in the unaudited interim Financial Statements and MD&A that an investor can properly analyze this information. The Financial Statements and MD&A can be found under CloudMD’s profile on www.sedar.com.
Listing on the TSX Venture Exchange
CloudMD also announces that it has received conditional approval from the Toronto Stock Exchange to graduate to the TSX Venture Exchange (“TSXV”). CloudMD’s common shares will commence trading on the TSXV under the same ticker symbol “DOC”.
Final approval of the listing is subject to the Company fulfilling certain customary conditions required by the TSXV. The Company will issue a statement once the TSXV confirms the date on which trading on the TSXV will commence. Upon satisfaction of the final listing requirements, the Company’s common shares will be delisted from the Canadian Securities Exchange (“CSE”) and commence trading on the TSXV. Shareholders will not be required to take any action.
About CloudMD Software & Services
CloudMD is digitizing the delivery of healthcare by providing patients access to all points of their care from their phone, tablet or desktop computer. The Company offers SAAS based health technology solutions to medical clinics across Canada and has developed proprietary technology that delivers quality healthcare through the combination of connected primary care clinics, telemedicine, and artificial intelligence (AI). CloudMD currently provides service to a combined ecosystem of 376 clinics, over 3000 licensed practitioners and almost 3 million patient charts across its servers.
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD”
Chief Executive Officer
FOR ADDITIONAL INFORMATION CONTACT:
CloudMD Software & Services Inc.
Email: investors@cloudmd.ca
Forward Looking Statements
This news release contains forward-looking statements that are based on CloudMD’s expectations, estimates and projections regarding its business and the economic environment in which it operates, including with respect to its business plans. Although CloudMD believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. These forward-looking statements speak only as of the date on which they are made, and CloudMD undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.