- Record revenue for the quarter up 69% to $3.5M for Q3 2023 compared to $2.1M for Q3 2022.
- As a result of significant revenue growth and cost optimization
initiatives, Carebook achieved its first quarter of positive
Adjusted EBITDA(1), with Adjusted EBITDA(1)
of $0.1M for Q3 2023, compared
to Adjusted EBITDA(1) loss of $(1.1)M for Q3 2022, an improvement of
$1.2M relative to Q3 2022.
- Adjusted EBITDA Margin(1) of 3% in Q3 2023
compared to (54)% in Q3 2022.
- Loss from operations for Q3 2023 was $(0.4)M, an improvement of $1.2M or 77%, when compared to Q3 2022.
- Net Loss for Q3 2023 was $(0.4)M
compared to Net Loss for Q3 2022 of $(1.7)M, an improvement of 1.3M or 77% year-over-year.
- ARR(2) of $11.6M as of
September 30, 2023, an increase of
20% over the same date in 2022.
MONTREAL, Nov. 10,
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 September 30, 2023.
"We continue to execute on our business plan, completed several
large implementations so far during the year and helped our clients
onboard a significant amount of users during the nine months ended
September 30, 2023 indicating strong
demand for health and wellness services continues to exist"
commented Michael Peters, Carebook
CEO. "We reached another new high this quarter in terms of our
revenue and achieved positive Adjusted EBITDA(1) for the
first time. We expect the organic revenue growth trend to continue
into the year end, and we will continue managing cost with an
objective of minimizing cash burn and increasing our profit margins
in the coming months. We are on course to deliver Adjusted
EBITDA(1) break even or better in fiscal 2024,
establishing a strong foundation for durable long-term growth"
_______________________________
|
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.
|
Q3 2023 Highlights
Revenue
Revenue for the quarter ended September
30, 2023 was $3.5M compared to
$2.1M for the quarter ended
September 30, 2022, an increase of
69% which was primarily driven by organic growth in the pharmacy
vertical and an increase in license revenue from CoreHealth offset
by a decrease in license revenue at Infotech. Revenue generated in
the quarter ended September 30, 2023,
was 63% from the employer vertical, an increase from 59% during the
same quarter in 2022 due to significant additions of licensed users
by customers in our employer vertical. Recurring revenue from the
employer vertical business is expected to continue increasing in
coming months, following the implementation of several large
customers and their ongoing efforts adding incremental end users on
our platforms.
Loss from Operations and Net Loss
Loss from operations for the quarter ended September 30, 2023, was $(0.4)M compared to $(1.6)M in the same period of 2022, an
improvement of $1.2M or 77%.
The improvement was due to lower sales and marketing costs
and a significant increase in revenue during the quarter when
compared to the same period last year.
Net loss was $(0.4)M for the
quarter ended September 30, 2023,
compared to a loss of $(1.7)M for the
quarter ended September 30, 2022, an
improvement of 77%. The variance is driven mostly by higher revenue
and a lower loss from operations.
Adjusted EBITDA(1)
Adjusted EBITDA(1) for the quarter ended September 30, 2023 was positive for the first
time, at $0.1M compared to an
Adjusted EBITDA(1) loss of $(1.1)M for the quarter ended September 30, 2022, an improvement of
$1.2M over the same period in 2022.
The corresponding Adjusted EBITDA Margin(1) for
the quarter ended September 30, 2023
was 3% compared to (54)% in Q3 2022, and represented a meaningful
improvement. Carebook achieved its goal of generating positive
Adjusted EBITDA(1) during the quarter demonstrating
management's fortitude and discipline to continue to generate
increasing revenue while managing costs to reach profitability.
Annual Recurring Revenue
ARR(2) was $11.6M as at
September 30, 2023, an increase of
$1.9M, or 20%, compared to an
ARR(2) of $9.6M as at
September 30, 2022. This increase was
primarily driven by new enterprise customers and organic growth
with existing customers. Of the $11.6M of ARR(2) reported, 61%
originated from clients outside of Canada.
Renewal and Amendment of Credit Facilities, Future Capital
Raise
On October 20, the Company renewed
and amended its existing senior credit facilities with a leading
Canadian Schedule I bank (the "Lender"), effective as of
October 19, 2023 (the "Renewal
Date"). Under the amendment, the Lender agreed to (i) continue
providing the Company with a $3M
revolving facility (the "Revolving Facility") and (ii) be
subrogated to all rights of its affiliate regarding a $1.4M non-revolving term loan facility
(the "Term Loan Facility" and together with the
Revolving Facility, the "Credit Facilities"). Moreover, the
maturity date of the Credit Facilities was extended until
September 30, 2024 (the "Maturity
Date")
Beginning on the Renewal Date, the applicable margin on the
Revolving Facility was decreased to 5.8% over prime, and the
applicable margin on the Term Loan Facility was decreased to 5.3%
over prime. Applicable margins under both facilities are subject to
additional reductions should the Company complete an additional
capital raise for aggregate minimum gross proceeds equal to
$2.0M on or before the Maturity
Date.
The Term Loan Facility is subject to mandatory monthly
prepayments of $50,000 on the
15th of each month, commencing on
November15th, 2023, such that the Term Loan Facility
will be reduced to $0.8M by the
Maturity Date. The Credit Facilities are subject to new financial
covenants, where the Company must maintain a minimum cash runway
and demonstrate minimum revenue growth. The Credit Facilities
continue to be secured by a first-ranking security interest in all
of the present and future property and assets of the Company and
certain of its subsidiaries.
While the credit facilities provide Carebook with the necessary
flexibility in order to carry operations, Carebook is currently
evaluating various financing opportunities and expect to make
additional announcements in the near future as definitive
plans are being finalized.
Carebook Welcomes Andrea Hunt as Chief Commercial
Officer
On September 12, 2023, Carebook
announced the appointment of Andrea
Hunt as its new Chief Commercial Officer. Andrea brings to
Carebook a rich history of driving exceptional growth for
businesses on a global scale. Working with the Carebook Executive
Team, she will play a pivotal role in developing and executing
revenue growth strategies while leading Carebook's Sales &
Marketing efforts.
With over two decades of experience leading digital marketing
and sales teams for some of the largest corporations in the world,
Andrea has established a deep and meaningful track record of
exceptional performance. Her career trajectory has been punctuated
by her success in executive roles across North America and Europe, where she has showcased her remarkable
ability to elevate iconic brands and generate significant value for
shareholders.
Financial Outlook
Carebook's financial 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 maintain strong performance in 2023 for
the entire Company as a whole. 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 November 10, 2023 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
|
Friday, November 10,
2023
|
Time:
|
8:30 a.m. Eastern
Time
|
Local:
|
416-764-8659
|
North American Toll
Free:
|
1-888-664-6392
|
RapidConnect
URL:
|
Click here
|
Webcast URL:
|
Click here
|
|
|
Conference
Replay
|
|
Local:
|
416-764-8677
|
North American Toll
Free:
|
1-888-390-0541
|
Entry Code:
|
415161 #
|
Expiration
Date:
|
11/17/2023
|
|
|
Conference
Replay
|
|
Local:
|
416-764-8677
|
North American Toll
Free:
|
1-888-390-0541
|
Entry Code:
|
415161 #
|
Expiration
Date:
|
11/17/2023
|
Carebook's interim condensed consolidated financial statements
and accompanying notes, and Management's Discussion and Analysis
for the quarter ended September 30, 2023 are available on
the Company's website at www.carebook.com and on SEDAR+
at www.sedarplus.ca.
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.
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 on 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.
Non-IFRS Measures and Reconciliation of Non-IFRS Measures
EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE
MONTHS
ENDED
September 30, 2023
|
|
THREE
MONTHS
ENDED
September 30, 2022
|
|
NINE
MONTHS
ENDED
September 30, 2023
|
|
NINE
MONTHS
ENDED
September 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(390)
|
|
$
|
(1,725)
|
|
$
|
(1,540)
|
|
$
|
(5,947)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization and
depreciation expense
|
$
|
387
|
|
$
|
580
|
|
$
|
1,206
|
|
$
|
1,626
|
|
M&A
costs
|
|
$
|
-
|
|
$
|
17
|
|
$
|
-
|
|
$
|
17
|
|
Finance
costs
|
|
$
|
362
|
|
$
|
293
|
|
$
|
1,113
|
|
$
|
855
|
|
Other income
(1)
|
|
$
|
(4)
|
|
$
|
-
|
|
$
|
(215)
|
|
$
|
-
|
|
Income Tax expense
(recovery)
|
$
|
(320)
|
|
$
|
(137)
|
|
$
|
(960)
|
|
$
|
(410)
|
|
Impairment
(2)
|
|
$
|
-
|
|
$
|
-
|
|
$
|
178
|
|
$
|
-
|
|
EBITDA
(3)
|
|
$
|
35
|
|
$
|
(972)
|
|
$
|
(218)
|
|
$
|
(3,859)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-Based
compensation
|
|
$
|
98
|
|
$
|
(148)
|
|
$
|
156
|
|
$
|
171
|
|
Additional One-Time
Costs (Savings) (4)
|
$
|
(23)
|
|
$
|
-
|
|
$
|
(535)
|
|
$
|
-
|
|
Adjusted EBITDA
(3)
|
|
$
|
110
|
|
$
|
(1,120)
|
|
$
|
(597)
|
|
$
|
(3,688)
|
|
(1)
|
Other income includes a
gain following the initial recognition of the net investment from
the Montreal office sublease.
|
(2)
|
Impairment on disposal
of leasehold improvements from Carebook subleasing the Montreal
office.
|
(3)
|
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 these non-IFRS
financial measures.
|
(4)
|
Additional One-Time
Costs (Savings) relate to grants received from the Quebec
government and Prompt, a trust agency of the Ministry of Economy,
Innovation and Energy research group in Québec.
|
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.
Financial Outlook Assumptions
Our financial outlook is based on a number of assumptions,
including assumptions related to inflation, changes in interest
rates, consumer spending, foreign exchange rates and other
macroeconomic conditions; our major revenue streams remaining in
line with our expectations; customers adopting our solutions at an
average contract value at or above that of our planned levels; our
ability to price our products in line with our expectations and to
achieve suitable margins; our ability to achieve success in the
continued expansion of our product lines and solutions; continued
success in additional product adoption and user base expansion
throughout our customer base; our ability to derive the benefits we
expect from the acquisitions we have completed; our ability to
attract and retain key personnel required to achieve our plans; our
expectations regarding the costs, timing and impact of our cost
reduction initiatives; our ability to manage customer churn and
churn rates remaining at planned levels. Our financial outlook does
not give effect to the potential impact of acquisitions that may be
announced or closed after the date hereof. Our financial outlook,
including the various underlying assumptions, constitutes
forward-looking information and should be read in conjunction with
the cautionary notice on forward-looking statements below. Many
factors may cause our actual results, level of activity,
performance or achievements to differ materially from those
expressed or implied by such forward-looking information.
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.sedarplus.ca. 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.