11th Consecutive Quarter of Positive Adjusted EBITDA
Year-End Guidance Revised Upward to $5.3- $5.7 million USD
Vancouver, British Columbia–(Newsfile Corp. – November 15, 2021) – Kovo HealthTech Corporation (TSXV: KOVO) (the “Company” “Kovo”) — a leader in healthcare technology and Billing-as-a-Service — today reported financial results for its fiscal 2021 third quarter ending September 30, 2021.
Strong Revenue Growth
Kovo posted 94% year-over-year (“YoY”) revenue growth during the quarter thanks to a combination of organic growth of its core SaaS-style medical billing software and services business — and a strategic acquisition that delivered immediate accretive growth during the quarter.
Compelling Growth Metrics and Increased Year-End Guidance
Based on its strong third quarter results — driven by:
- Strong organic growth
- The acquisition of Midwest Medical Billing, Services Inc. in July 2021
- Estimated October revenues of $650,000 USD, and
- Its recently announced acquisition of The Cvikota Company**,
Kovo is now reporting Annualized Recurring Revenue (“ARR”) of approximately $9,000,000 USD — an increase of 157% versus December 2020 ARR. Based on these results, the Company is raising its year end revenue guidance to $5.3 – $5.7 million USD. Adjusted EBITDA guidance remains unchanged at 10%.
SaaS-Style Business Model Driving Momentum
“Kovo is gaining momentum every quarter and our team continues to be fueled by a combination of strong organic growth in our core business and a disciplined acquisition strategy which targets buying $1 of ARR for every $1 investment of debt or equity,” explains Kovo CEO Greg Noble. Noble adds that the Company recently closed a loan agreement for up to $7 million USD (approximately $8.8 million CAD) which positions the Company for continued accretive growth by acquisition, while minimizing dilution for shareholders.
Third Quarter Highlights
Reported in USD$ unless otherwise specified
- Revenue for the three and nine months ended September 30, 2021 was $1,654,000 and $3,405,000 which is 94% and 56% higher than the same period in fiscal 2020.
- The strategic acquisition and successful integration of Midwest Medical in July 2021 contributed an immediate $446,000 to quarterly revenue compared to the same period last year. It continues to drive organic growth for the Company.
- The Company completed its 11th consecutive quarter of positive Adjusted EBITDA reflecting the long-term operating discipline within the organization. Adjusted EBITDA for the nine months ending September 30, 2021 was $137,000 versus $85,000 in 2020.
- During the quarter, the Company generated a net loss of $476,000 and $1,368,000 during the three and nine months ended September 30, 2021.
- The Company previously provided 2021 pro-forma revenue guidance of $4,700,000 to $5,100,000. Following the recently announced agreement to acquire The Cvikota Company and its current run rate, the Company is increasing its 2021 pro-forma revenue guidance to $5,300,000 to $5,700,000.
Investor Call – November 16, 2021 at 8:30am ET
To learn more about the company’s financial performance and business model, investors are invited to join CEO Greg Noble, Executive Chairman Dr. Peter Bak and CFO Inder Saini on Tuesday, November 16th at 8:30 am ET.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/103522
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