WELL Health Technologies (WELL) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of CAD 251.7 million, up 23% year-over-year, surpassing a CAD 1 billion annualized revenue run-rate ahead of plan, with strong organic growth in both Canadian and U.S. businesses.

• Adjusted EBITDA reached CAD 32.7 million, up 16% year-over-year and 6% sequentially; free cash flow to shareholders was CAD 16.2 million, up 69% year-over-year.

• Record 1.5 million patient visits in Q3 2024, up 41% year-over-year, with 31% organic growth in visits.

• Canadian patient services revenue grew 35% and U.S. patient services revenue increased 21% year-over-year.

• Network includes 4,000 providers and clinicians, with over 38,000 providers using SaaS and technology services.

Financial highlights

• Q3 2024 revenue reached CAD 251.7 million, up 23% year-over-year; revenue from continuing operations up 27%.

• Adjusted EBITDA was CAD 32.7 million, up 16% year-over-year and 6% sequentially.

• Adjusted free cash flow to shareholders increased 69% year-over-year and 85% quarter-over-quarter, reaching CAD 0.065 per share.

• IFRS net loss of CAD 75.8 million due to unrealized losses on HEALWELL AI investment; adjusted net income positive at CAD 13.05 million.

• Leverage ratio improved to 2.5x from 2.67x in prior quarter; cash and equivalents at CAD 66.1 million.

Outlook and guidance

• 2024 annual revenue guidance raised to CAD 985–995 million, reflecting recent acquisitions and organic growth.

• Annual Adjusted EBITDA guidance maintained at upper half of CAD 125–130 million; adjusted free cash flow to shareholders expected at CAD 55 million.

• Expecting continued strong execution and record results for revenue, Adjusted EBITDA, net income, and free cash flow for the remainder of 2024.

• Anticipate further M&A activity, especially in Canadian clinics and diagnostics, with 17 signed LOIs representing over CAD 100 million in annual revenue.

• Strategic review of U.S. virtual care assets (Wisp and Circle Medical) ongoing.