"As
"Looking at the annual highlights, our revenue for 2023 was
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Fourth Quarter 2023 Highlights
- Revenue of
$13,603,419 as compared to$11,289,606 in the equivalent prior year period, an increase of$2,313,813 or 20%. - Gross profit as a percentage of revenue was 83% compared to 82% in the equivalent prior year period (Q3 2023 - 82%).
- The increase in Q4 2023 was primarily due to higher term licences, maintenance and support revenue, with recurring revenue representing 83% of revenues in the quarter compared to 77% in Q4 2022
- ARR ⁽¹⁻²⁾ at
December 31, 2023 , was$44,573,739 as compared to$42,612,166 atSeptember 30, 2023 .- ARR ⁽¹⁻²⁾ growth was due to organic growth in Q4’23 of
$1,959,986 or 5% (21.7% annualized).
- ARR ⁽¹⁻²⁾ growth was due to organic growth in Q4’23 of
- EBITDA ⁽²⁾ of
$2,992,273 compared to$470,220 in the equivalent prior year period, an increase of$2,522,053 or 536%. - Adjusted EBITDA ⁽²⁾ of
$3,985,553 or 29% of revenue, compared to$2,455,377 or 22% of revenue in the equivalent prior year period, an increase of$1,530,176 or 62%.- The increase in EBITDA ⁽²⁾ and adjusted EBITDA ⁽²⁾ from Q4 2022 to Q4 2023 was primarily attributable to the higher recurring revenues of
$11,302,366 in Q4 2023, as compared to$8,736,265 in Q4 2022, coupled with an ongoing effort to reduce costs and gain operating cost synergies.
- The increase in EBITDA ⁽²⁾ and adjusted EBITDA ⁽²⁾ from Q4 2022 to Q4 2023 was primarily attributable to the higher recurring revenues of
- Net income before income taxes of
$1,984,246 as compared to a net loss of$656,336 in the equivalent prior year period, an increase of$2,640,582 or 402%.- The increase was primarily attributable to the significant increase in revenues from organic growth and acquisitions, coupled with an ongoing effort to reduce costs and gain operating cost synergies.
Annual 2023 Highlights
- Revenue of
$52,508,298 as compared to$39,970,814 in the equivalent prior year period, an increase of$12,537,484 or 31%. - Gross profit as a percentage of revenue was 82% compared to 82% in the equivalent prior year period.
- Gross profit as a percentage of revenue is largely dependent upon the sales mix, with perpetual and term licenses, maintenance and support generating a higher margin than consulting services and hardware revenue.
- Gross profit as a percentage of revenue is largely dependent upon the sales mix, with perpetual and term licenses, maintenance and support generating a higher margin than consulting services and hardware revenue.
- ARR ⁽¹⁻²⁾ at
December 31, 2023 was$44,573,739 as compared to$36,145,150 atDecember 31, 2022 , an increase of$8,428,589 or 23%.- ARR ⁽¹⁻²⁾ benefited from organic growth of
$6,387,730 or 18%; growth from acquisitions of$1,100,000 or 3%, and a gain of$938,859 or 3% primarily due to the fluctuation in the GB pound and US dollar rates relative to the Canadian dollar.
- ARR ⁽¹⁻²⁾ benefited from organic growth of
- EBITDA⁽²⁾ of
$9,887,842 compared to$5,250,015 in the equivalent prior year period, an increase of$4,637,827 or 88%. - Adjusted EBITDA⁽²⁾ of
$13,291,526 or 25% of revenue, compared to$9,524,708 or 24% of revenue in the equivalent prior year period, an increase of$3,766,818 or 40%.- The increase in EBITDA and adjusted EBITDA from Q4 2022 to Q4 2023 was primarily attributable to the higher recurring revenues of
$42,333,253 for the year endedDecember 31, 2023 , as compared to$29,359,361 in the equivalent prior year, coupled with an ongoing effort to manage costs and gain operating cost synergies.
- The increase in EBITDA and adjusted EBITDA from Q4 2022 to Q4 2023 was primarily attributable to the higher recurring revenues of
- Cash on hand at
December 31, 2023 was$33,480,018 compared to$17,452,210 as atDecember 31, 2022 .- The increase was primarily due to an increase in cash generated from operations, as management continues to gain synergies from acquisitions and continues to reduce costs of operations.
- Cash from operations before changes in working capital was
$11,180,747 as compared to$7,119,817 last year. - Net income before income taxes of
$5,327,733 as compared to$1,306,717 in the equivalent prior year period, an increase of$4,021,016 or 308%.- The change in net income was primarily attributable to higher revenues from term licenses, maintenance and support, services and hardware.
(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. | |
SELECTED FINANCIAL INFORMATION | ||||||||||
Three months ended | Year ended | |||||||||
% Revenue | % Revenue | Change | % Revenue | % Revenue | Change | |||||
$ | $ | % | $ | $ | % | |||||
Revenue | 13,603,419 | 100% | 11,289,606 | 100% | 20% | 52,508,298 | 100% | 39,970,814 | 100% | 31% |
Cost of sales | 2,364,543 | 17% | 1,999,560 | 18% | (18%) | 9,697,998 | 18% | 7,031,819 | 18% | (38%) |
Gross profit | 11,238,876 | 83% | 9,290,046 | 82% | 21% | 42,810,300 | 82% | 32,938,995 | 82% | 30% |
Operating expenses | ||||||||||
General and administrative | 2,911,708 | 21% | 2,390,847 | 21% | (22%) | 11,765,148 | 22% | 8,556,468 | 21% | (38%) |
Sales and marketing | 1,394,948 | 10% | 1,126,839 | 10% | (24%) | 5,883,267 | 11% | 4,275,151 | 11% | (38%) |
Research and development | 3,188,172 | 23% | 3,223,157 | 29% | 1% | 12,169,285 | 23% | 10,431,212 | 26% | (17%) |
Depreciation of property and equipment | 76,496 | 1% | 76,422 | 1% | (0%) | 318,866 | 1% | 250,287 | 1% | (27%) |
Depreciation of right-of-use assets | 101,115 | 1% | 163,222 | 1% | 38% | 399,715 | 1% | 342,863 | 1% | (17%) |
Stock based compensation | 220,494 | 2% | 267,584 | 2% | 18% | 1,058,919 | 2% | 1,140,387 | 3% | 7% |
Deferred share-based compensation | - | 0% | - | 0% | 0% | 97,560 | 0% | - | 0% | (100%) |
Foreign currency (gain) loss | (241,505) | (2%) | 93,826 | 1% | 357% | (296,824) | (1%) | 150,399 | 0% | 297% |
Other income and expenses | ||||||||||
Amortization of intangible assets | 1,067,885 | 8% | 952,787 | 8% | (12%) | 4,259,113 | 8% | 3,279,803 | 8% | (30%) |
Business acquisition, restructuring and integration costs | 306,741 | 2% | 1,022,171 | 9% | 70% | 1,534,835 | 3% | 2,438,904 | 6% | 37% |
Loss on change in fair value of contingent consideration | 466,045 | 3% | 695,402 | 6% | 33% | 712,370 | 1% | 695,402 | 2% | (2%) |
Interest expense and accretion (net of interest income) | (252,294) | (2%) | 10,288 | 0% | (2552%) | (489,566) | (1%) | 40,914 | 0% | 1297% |
Interest expense from lease liabilities | 14,825 | 0% | (76,163) | (1%) | 119% | 71,981 | 0% | 29,431 | 0% | (145%) |
(Gain) loss on disposal of property and equipment | 0 | 0% | 0 | 0% | 0% | (2,102) | (0%) | 1,057 | 0% | 299% |
Current and deferred income taxes | 1,045,457 | 8% | (318,005) | (3%) | 429% | 778,248 | 1% | 92,081 | 0% | (745%) |
Net income | 938,789 | 7% | (338,331) | (3%) | 377% | 4,549,485 | 9% | 1,214,636 | 3% | 275% |
EBITDA (Non-IFRS measure) | 2,992,273 | 22% | 470,220 | 4% | 536% | 9,887,842 | 19% | 5,250,015 | 13% | 88% |
Adjusted EBITDA (Non-IFRS measure) | 3,985,553 | 29% | 2,455,377 | 22% | 62% | 13,291,526 | 25% | 9,524,708 | 24% | 40% |
Annual recurring revenue (Non-IFRS measure) | 44,573,739 | 36,145,150 | 23% | 44,573,739 | 36,145,150 | 23% | ||||
Term licences, maintenance and support revenue | 11,302,366 | 83% | 8,736,265 | 77% | 29% | 42,332,253 | 81% | 29,359,361 | 73% | 44% |
As at | ||||||||||
$ | $ | |||||||||
Deferred revenue | 21,049,975 | 15,495,461 | ||||||||
Cash balance | 33,480,018 | 17,452,210 | ||||||||
ABOUT
Software for
The Company has a robust two-pronged growth strategy, targeting organic growth opportunities within its product suite, and pursuing an aggressive merger and acquisition (“M&A”) plan. Currently
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
Chief Executive Officer, Director
(416) 727-9061
dan.matlow@VitalHub.com
Source:
2024 GlobeNewswire, Inc., source