Revenue for the quarter up 37% to $3.7M for Q2 2024 compared to $2.7M for Q2 2023.
As a result of significant revenue growth and cost optimization initiatives, loss from operations was $(0.5)M for Q2 2024, an improvement of $0.2M when compared to Q2 2023.
Net Loss for Q2 2024 was $(0.7)M, consistent and stable when compared to Q2 2023.
Adjusted EBITDA(1) loss for Q2 2024 was $(0.1)M, an improvement of 75% relative to Q2 2023.
Adjusted EBITDA Margin(1) of (2)% in Q2 2024 compared to (9)% in Q2 2023.
ARR(2) of $12.1M as of June 30, 2024, an increase of 14% over the same date in 2023.
MONTREAL, Aug. 21, 2024 /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, 2024.
"The second quarter of 2024 continues to show strong revenue growth when compared to the second quarter of 2023 as we completed several large implementations and helped our clients onboard a significant amount of users during the last twelve months" commented Michael Peters, Carebook CEO. "We were successful delivering 37% year-over-year revenue growth, which was all organic, while we continued to improve our margins and operating cash flows. We expect the organic revenue growth trend to continue into the remainder of 2024 but at a slower pace, in the next quarters of 2024. We will continue managing cost with an objective of minimizing cash burn and increasing our profit margins."
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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 2024 Highlights
Revenue
Revenue for the quarter ended June 30, 2024 was $3.7M compared to $2.7M for the quarter ended June 30, 2023, an increase of 37% driven by strong organic growth in the pharmacy vertical and a significant increase in license revenue from CoreHealth. Revenue in the quarter ended June 30, 2024, was contributed 65% from the employer vertical and 35% from our key customer in the pharmacy vertical.
Loss from Operations and Net Loss
Loss from operations for the quarter ended June 30, 2024, was $(0.5)M an improvement of $0.2M when compared the same period in 2023. The decrease in operating expenses was due to significantly higher revenue and lower general and administrative costs during the quarter ended June 30, 2024 compared to the same period in 2023.
Net loss was $(0.7)M for the quarter ended June 30, 2024, compared to a loss of $(0.7)M for the quarter ended June 30, 2023.
Adjusted EBITDA
Adjusted EBITDA(1) loss for the quarter ended June 30, 2024 was $(0.1)M compared to $(0.2)M for the quarter ended June 30, 2023, an improvement of 75% over the same period in 2023. The corresponding Adjusted EBITDA Margin(1) for the quarter ended June 30, 2024 was (3)% compared to (9)% in the quarter ended June 30, 2023, an improvement demonstrating management's discipline to continue generating increasing revenue while managing costs.
Annual Recurring Revenue
ARR(2) was $12.1M as at June 30, 2024, an increase of $1.5M, or 14%, compared to an ARR(2) of $10.6M as at June 30, 2023. This increase was primarily driven by new enterprise customers and organic growth with existing customers. Of the $12.1M of ARR(2) reported, 63% originated from clients outside of Canada.
Financial Outlook
Carebook's financial outlook continues to be positive for 2024. 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 2024 for the entire Company as a whole and although actual results may differ, we believe Carebook is on a course to deliver Adjusted EBITDA(1) break even or better in fiscal 2024. 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 21, 2024 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
Wednesday, August 21, 2024
Time:
8:30 a.m. Eastern Time
Local:
1-437-900-0527
North American Toll Free:
1-888-510-2154
RapidConnect URL:
Click here
Webcast URL:
Click here
