VitalHub Reports Fourth Quarter and Annual 2024 Results
Annual Recurring Revenue (ARR)⁽¹⁻²⁾ up 59% YoY to $71.1 millionTotal Revenue up 51% YoY to $20.6 millionAdjusted EBITDA ⁽²⁾ up 27% YoY to $5.0 million
TORONTO, March 27, 2025 (GLOBE NEWSWIRE) -- Vitalhub Corp. (the "Company" or "VitalHub") (TSX:VHI) (OTCQX:VHIBF) announced today it has filed its Consolidated Financial Statements and Management's Discussion and Analysis report for the year ended December 31, 2024 with the Canadian securities authorities. These documents may be viewed under the Company's profile at www.sedarplus.com.
"We are pleased to report strong full year results, highlighted by annual 15% organic ARR⁽¹⁻²⁾ growth and 26% adjusted EBITDA⁽²⁾ margins," said Dan Matlow, CEO of VitalHub. "We are seeing momentum build with our growing platform functionality and reputational awareness. Our record-breaking sequential net new organic ARR⁽¹⁻²⁾ in the fourth quarter of $2.6 million was well-balanced across our leading EHR suite in Canada and patient flow solutions in the UK. We see opportunities for sustained growth rates in our core geographies as we cross-sell complementary solutions and add new clients."
"We closed four acquisitions in 2024, adding $17.9 million of acquisition ARR⁽¹⁻²⁾ and adding new solutions and team members that we are proud to have at VitalHub. Integration efforts from a product, infrastructure, and go-to-market perspective are well underway, including the fourth quarter 2024 acquisitions of Strata and MedCurrent. We see areas for potential enhanced revenue growth and operational efficiency, with our goal of steadily expanding our cash flow margin over the next twelve to eighteen months post-acquisition, as we have successfully accomplished historically."
"Our current pro forma cash balance is approximately $90 million, with strong positive cash generation and access to debt if needed. We are prepared to deploy capital on M&A, and we currently expect the pace of activity from 2024 to continue through 2025. We are proud of all growth and achievements to date, and are excited for the year ahead."
VitalHub's quarterly investor conference call will take place on Friday, March 28, 2025, at 9:00AM EST.
To register for the call, please visit:https://us06web.zoom.us/webinar/register/WN_rJOjJmU7TXen7-jbFcjXbA#/registration
Fourth Quarter 2024 Highlights
ARR⁽¹⁻²⁾ at December 31, 2024 was $71,054,210 as compared to $53,452,108 at September 30, 2024, an increase of $17,602,101 or 33%. ARR⁽¹⁻²⁾ growth during the quarter was attributable to:
Organic growth of $2,609,657 or 5%;
Acquisition growth of $14,600,000 or 27%;
Gain of $392,445 or 1% due to the fluctuations in foreign exchange rates.
Revenue of $20,590,779 as compared to $13,603,419 in the equivalent prior year period, an increase of $6,987,360 or 51%.
Gross profit as a percentage of revenue was 81% compared to 83% in the equivalent prior year period.
Net income before income taxes of $173,000 (including $2,588,292 of business acquisition, restructuring and integration costs) as compared to net income before income taxes of $1,984,246 (including $306,741 of business acquisition, restructuring and integration costs) in the equivalent prior year period, a decrease of $1,811,246 or 91%.
EBITDA⁽²⁾ of $1,875,370 compared to $2,992,273 in the equivalent prior year period, a decrease of $1,116,903 or 37%.
Adjusted EBITDA⁽²⁾ of $5,046,758 or 25% of revenue, compared to $3,985,553 or 29% of revenue in the equivalent prior year period, an increase of $1,061,205 or 27%.
On October 4, 2024, the Company acquired all of the issued and outstanding shares of MedCurrent Corporation and its subsidiaries.
On October 29, 2024, the Company acquired all of the issued and outstanding shares of Strata Health Solutions Inc.
Annual 2024 Highlights
ARR⁽¹⁻²⁾ at December 31, 2024 was $71,054,210 as compared to $44,573,739 at December 31, 2023, an increase of $26,480,470 or 59%. ARR ⁽¹⁻²⁾ growth during the year was attributable to:
Organic growth of $6,475,919 or 15%;
Acquisition growth of $17,911,500 or 40%;
Gain of $2,093,051 or 5% due to the fluctuations in foreign exchange rates.
Revenue of $68,594,310 as compared to $52,508,298 in the prior year, an increase of $16,086,012 or 31%.
Gross profit as a percentage of revenue was 81% compared to 82% in the prior year.
Net income before income taxes of $5,895,758 (including $5,213,044 of business acquisition, restructuring, and integration costs) as compared to net income before income taxes of $5,327,733 (including $1,534,835 of business acquisition, restructuring, and integration costs) in the prior year, an increase of $568,025 or 11%.
EBITDA⁽²⁾ of $9,950,872 compared to $9,887,842 in the prior year, an increase of $63,030 or 1%.
Adjusted EBITDA⁽²⁾ of $17,840,272 or 26% of revenue, compared to $13,291,526 or 25% of revenue in the prior year, an increase of $4,548,746 or 34%.
Cash on hand at December 31, 2024 was $56,574,904 compared to $33,480,018 as at December 31, 2023.
Subsequent to the quarter, the Company completed a bought deal public offering pursuant to which 3,165,145 common shares were issued at $10.90 per common share for total gross proceeds to the Company of approximately $34.5 million.
(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. Disclaimers and reconciliations can be found in SEDAR filings.
Selected Financial Information
Three months ended
Year ended
December 31, 2024
% Revenue
December 31, 2023
% Revenue
Change
December 31, 2024
% Revenue
December 31, 2023
% Revenue
Change
$
$
%
$
$
%
Revenue
20,590,779
100%
13,603,419
100%
51%
68,594,310
100%
52,508,298
100%
31%
Cost of sales
3,841,539
19%
2,364,543
17%
(62%)
13,099,877
19%
9,697,998
18%
(35%)
Gross profit
16,749,240
81%
11,238,876
83%
49%
55,494,433
81%
42,810,300
82%
30%
Operating expenses
General and administrative
5,442,656
26%
2,911,708
21%
(87%)
15,451,016
23%
11,765,148
22%
(31%)
Sales and marketing
