- First quarter 2023 revenue of $13.4
million, an increase of 54% compared to the same period in
2022
- Consolidated Annual Recurring Revenue (or
ARR1) as at March
31, 2023 reached $53.3
million, a 4% increase over the same period in 2022;
enterprise client ARR increased 14% over the comparable period
- Total Number of Clients2 increased by 13%
to 990 as at March 31, 2023, compared
to 873 in the same period in 2022
- First quarter 2023 Adjusted EBITDA3 of $3.7 million, and Adjusted EBITDA
Margin3 of 27%
TORONTO, May 15, 2023
/CNW/ - LifeSpeak Inc. ("LifeSpeak" or the
"Company") (TSX: LSPK), the leading whole-person
wellbeing solution for employers, health plans and other
organizations, announced today its financial and operational
results for the three months ended March 31,
2023. All references to dollar values in this press release
are in Canadian dollars, unless otherwise indicated.
"The LifeSpeak team continued to gain new customers, diversify
its revenue base and further our goal of becoming the world's
leading digital wellbeing solution in the first quarter," said
Michael Held, CEO and Founder of
LifeSpeak. "These operational successes are reflected in our strong
first quarter financial results, which include $13.4 million in revenue, $3.7 million in Adjusted EBITDA, and a 27%
Adjusted EBITDA Margin. In addition, we made important progress in
the first quarter to ensure the financial strength of LifeSpeak
going forward by raising additional capital, and renegotiating the
terms of our existing debt, to provide us with ample runway to
continue to grow our business."
Consolidated Business Highlights for the Three Months Ended
March 31, 2023
(All
capitalized terms not defined herein shall have the meaning
ascribed to them in the Management's Discussion and Analysis for
the three months ended March 31,
2023, unless otherwise stated)
- First quarter 2023 revenue reached $13.4
million, an increase of 54% compared to the same period in
2022, representing a continuing trend of growth in the usage of the
Company's platform.
- Gross Margin for the first quarter 2023 was 90%, an increase
compared to Gross Margin of 85% in the comparable period in
2022.
- ARR of $53.3 million as at
March 31, 2023, an increase of 4%
over the same period in 2022. Of the $53.3
million of ARR, approximately $44.8
million, or 84%, originated from enterprise clients, an
increase of approximately 14% compared to the same period in
2022. Of the $53.3 million of ARR,
approximately 66% originated from clients outside of Canada.
- ARR is reported on a constant currency basis using a
1.30 USD:CAD exchange rate. Given
exposure to the US dollar and movement in exchange rates, when
adjusting for the exchange rate at the end of the quarter of
1.35 USD:CAD, ARR is approximately
$54.7 million.
- First quarter 2023 Adjusted EBITDA3 of $3.7 million, an increase of $3.3 million compared to the same period in
2022.
- First quarter 2023 Adjusted EBITDA3 Margin of
27%, an increase when compared to an Adjusted EBITDA3
margin of 4% in the comparable quarter of 2022.
- First quarter 2023 net loss of $0.4
million, compared to a net loss of $16.2 million in the same period in 2022.
- Total Number of Clients of 990 as at March 31, 2023, a 15% increase when compared to
862 as at March 31, 2022.
-
- Notable enterprise client additions for the first quarter
included UMB Financial (U.S.), Cenovus Energy Inc. (Canada), NYU Langone Health (U.S.) BBA Inc.
(Canada) and BP Corporation of
America, Inc. (U.S.).
- Embedded solutions client additions continued, with the
subsequent to quarter end closing of a U.S. based transaction with
Medikeeper, servicing Blue Cross Blue Shield of Massachusetts.
- Cross-selling initiatives progressed through the first quarter
of 2023, with the successful closing of several cross-sale /
multi-product opportunities including Manitoba Blue Cross and
Health Canada. The Company anticipates continued cross-sale growth
in 2023, as net new clients are added with multi-product solutions,
and as the current portfolio of client cross-sell opportunities are
realized.
- On March 29, 2023, the Company
executed an amendment to the merger agreement in relation to the
Wellbeats acquisition in which the value of the contingent
consideration was amended to be paid by the Company was set at
$1.3 million to settle the contingent
amount owing.
- On March 31, 2023, the Company
announced that it entered into a credit agreement with Beedie
Investments Ltd. ("Beedie") for a non-revolving term convertible
loan in the principal amount of $15.0
million. The Company also announced a second amended and
restated credit agreement with its senior lenders, to amend and
restate its existing credit agreement to permit the above term loan
from Beedie and align terms. Importantly, as part of the terms of
the amendment (and among other things), LifeSpeak will have very
limited amortization in Fiscal 2023 and significantly reduced
obligations in 2024. Under the Beedie Agreement, the Company will
not have any principal payments in 2023 and limited cash interest
payments through the year.
ARR, Consolidated Net Dollar
Retention Rate and Logo Retention Rate Breakdown
ARR was approximately $53.3 as at
March 31, 2023, and core enterprise
client ARR was approximately $44.8
million. This demonstrates the continued strength of the
core enterprise business. The historical and continued pattern of
growth in the enterprise client demographic, which comprises
approximately 84% of overall ARR as at March
31, 2023, and the diversity of customer, industry, and
sector concentration demonstrates the strength of the business and
lays a strong foundation for resilience and growth at the core of
the LifeSpeak portfolio.
ARR
Breakdown
|
In C$ millions, unless
otherwise noted
|
Q1-2022
|
Q2-2022
|
Q3-2022
|
Q4-2022
|
Q1-2023
|
|
YoY
Growth
|
|
Total
Enterprise ARR
|
$39.4
|
$41.0
|
$43.1
|
$43.9
|
$44.8
|
|
14 %
|
Total
Embedded Solutions & Other ARR
|
$11.7
|
$9.2
|
$9.1
|
$9.0
|
$8.5
|
|
(28 %)
|
Total
ARR
|
$51.1
|
$50.2
|
$52.2
|
$52.8
|
$53.3
|
|
4 %
|
|
|
|
|
|
|
|
|
|
|
Total ARR (Ex
Large Embedded Solutions Client)
|
$49.6
|
$50.2
|
$52.2
|
$52.8
|
$53.3
|
|
8 %
|
|
Additionally, growth in the Number of Clients continued
year-over-year. Total Number of Clients was 990 as at
March 31, 2023, or by approximately
15% when compared to the same date in 2022.
Number of
Clients
|
|
Q1-2022
|
Q2-2022
|
Q3-2022
|
Q4-2022
|
Q1-2023
|
|
YoY
Growth
|
Total
Enterprise Clients
|
847
|
903
|
968
|
983
|
972
|
|
15 %
|
Total
Embedded Solutions Clients
|
15
|
18
|
19
|
19
|
18
|
|
20 %
|
Total Number of
Clients
|
862
|
921
|
987
|
1,002
|
990
|
|
15 %
|
Consolidated Net Dollar Retention Rate4 for the quarter
was 87%, a 5% increase from the same period in 2022, primarily due
to the reduced impact from the large, embedded solutions client
contract reduction reported during the first quarter of 2022. Net
Dollar Retention Rate for enterprise clients was approximately 92%
as at March 31, 2023. Though
enterprise Net Dollar Retention is slightly lower than the prior
period, primarily due to an overall increase in enterprise client
churn, churn has been counteracted by cross-sell within the
existing enterprise client base. As the cross-sell and up-sell
efforts continue, the Company expects Net Dollar Retention Rate to
increase as existing clients are sold additional products and
services over time.
Logo Retention Rate5 was 83% as at March 31, 2023 compared to 91% for the comparable
period in 2022. As retention is measured on a last twelve-month
basis, the lower Logo Retention Rate is primarily attributable to
the loss of smaller enterprise client logos within the portfolio of
customers. New internal initiatives focused on cross-selling
products to existing clients, and strong uptake to date in the
opportunity to discuss multiproduct solutions with at-risk clients
is trending positively, and new logo additions are, on average,
larger on an ARR basis than those of logos being lost.
In addition to the continued focus on revenue growth, the
Company continues to monitor the cost base of the business and
optimize for efficiencies where possible. This focus on costs has
allowed the Company to continue to realize cost savings following
the acquisitions. In the first quarter of 2023, the Company
generated annualized cost savings of approximately $1.4 million, bringing the total annualized
savings to approximately $11.1
million. The Company views its current operating state as
more than capable of executing on its growth plan into the
future.
Financial Results for the Three Months Ended March 31, 2023
Selected
Consolidated Financial Information
(in thousands of
Canadian dollars)
|
Three Months Ended
March 31,
|
|
2023
|
2022
|
|
|
|
Revenue……………………………………………………………………………………………
|
13,396
|
8,710
|
Less:
|
|
|
Content development
costs………………………………………………………………………
|
1,322
|
1,282
|
Gross
Profit…………………………………………………………………………………………
|
12,074
|
7,428
|
Gross Profit
Margin (1)
|
|
|
Gross Profit
Margin…………………………………………………………………………………
|
90 %
|
85 %
|
|
|
|
Deduct
Expenses:
|
|
|
Sales and
marketing…………………………………………………………………………………
|
2,700
|
3,469
|
General and
administrative………………………………………………………………………….
|
6,447
|
6,895
|
Share-based
compensation…………………………………………………………………………
|
1,466
|
2,946
|
Foreign exchange (gain)
loss………………………………………………………………………
|
50
|
1,694
|
Amortization and
depreciation………………………………………………………………………
|
4,016
|
2,417
|
|
14,679
|
17,421
|
|
|
|
Loss before
undernoted
|
(2,604)
|
(9,992)
|
|
|
|
Acquisition and other
costs (2)………………………………………………………………………
|
-
|
6,780
|
Changes in fair value
of on contingent consideration…………………………………………......
|
(3,551)
|
(694)
|
Finance expense,
net…………………………………………………………………………………
|
2,195
|
1,236
|
|
|
|
Loss before income
taxes……………………………………………………………………………
|
(1,249)
|
(17,315)
|
Income taxes
recovery……………………………………………………………………………….
|
(894)
|
(1,110)
|
|
|
|
Net
Loss………………………………………………………………………………………………
|
(354)
|
(16,205)
|
|
|
|
Earning (loss) per
share - basic………………………………………………………………………
|
(0.01)
|
(0.33)
|
Earnings (loss) per
share- diluted……………………………………………………………………
|
(0.01)
|
(0.33)
|
|
|
|
Non-IFRS Measures
and Non-IFRS Ratios
|
|
|
EBITDA
(3)……………………………………………………………………………………………….
|
4,963
|
(13,662)
|
Adjusted EBITDA
(4)……………………………………………………………………………………
|
3,682
|
382
|
Adjusted Net Income
(Loss) (5)………………………………………………………………………..
|
(1,635)
|
(2,160)
|
Adjusted earnings
(loss) per share – basic (6)…………………………………………………......
|
(0.03)
|
(0.04)
|
Adjusted earnings
(loss) per share – diluted (7) …………………………………………………….
|
(0.03)
|
(0.04)
|
|
|
|
|
Notes:
|
(1)
|
Gross profit margin is
calculated as gross profit divided by revenue for the relevant
period.
|
(2)
|
Restructuring and other
costs are costs related to the entry into of the Company's credit
agreement and recapitalization distributions and expenses related
to the investment by the Institutional Investors, costs and
expenses in connection with the Company's IPO and related matters
and costs and expenses in connection with the Company's
acquisitions.
|
(3)
|
"EBITDA" has the
meaning ascribed herein under "Cautionary Note Regarding
Non-IFRS Measures, Non-IFRS Ratios and Key Performance
Indicators".
|
(4)
|
"Adjusted
EBITDA" has the meaning ascribed herein under "Cautionary
Note Regarding Non-IFRS Measures, Non-IFRS Ratios and Key
Performance Indicators".
|
(5)
|
"Adjusted Net Income
(Loss)" has the meaning ascribed herein under "Cautionary
Note Regarding Non-IFRS Measures, Non-IFRS Ratios and Key
Performance Indicators".
|
(6)
|
"Adjusted earnings
(loss) per share – basic" has the meaning ascribed herein under
"Cautionary Note Regarding Non-IFRS Measures, Non-IFRS Ratios
and Key Performance Indicators".
|
(7)
|
"Adjusted earnings
(loss) per share – diluted" has the meaning ascribed herein
under "Cautionary Note Regarding Non-IFRS Measures, Non-IFRS
Ratios and Key Performance Indicators".
|
Conference Call Notification
The Company will hold a conference call to provide a business
update on Monday, May 15, 2023, at
8:00 a.m. ET hosted by:
- Nolan Bederman, Executive
Chairman
- Michael Held, CEO
- Michael McKenna, CFO
A question-and-answer session will follow the business
update.
CONFERENCE CALL
DETAILS
|
DATE:
|
Monday, May 15,
2023
|
TIME:
|
8:00 a.m. ET
|
DIAL-IN
NUMBERS:
|
1.833.950.0062
or 1.833.470.1428
|
REFERENCE
NUMBER:
|
917005
|
This live call is also being webcast and can be accessed by going
to:
https://events.q4inc.com/attendee/829999542
An archived telephone replay of the call will be available for
two weeks by dialing 1.226.828.7578 or 1.866.813.9403 and entering
access code 815016.
Non-IFRS Measures, Non-IFRS
Ratios and Key Performance Indicators
LifeSpeak supplements its results of operations determined in
accordance with IFRS with certain non-IFRS financial measures,
non-IFRS ratios and key performance indicators that the Company
believes are useful to investors, lenders and others in assessing
its performance and which highlight trends its core business that
may not otherwise be apparent when relying solely on IFRS measures.
LifeSpeak management also uses non-IFRS measures, non-IFRS ratios
and key performance indicators for purposes of comparison to prior
periods, to prepare annual operating budgets, for the development
of future projections and earnings growth prospects, to measure the
profitability of ongoing operations and in analyzing our financial
condition, business performance and trends. As such, these measures
and indicators are provided as additional information to complement
those IFRS measures by providing further understanding of the
Company's results of operations from management's perspective,
including how it evaluates its financial performance and how it
manages its capital structure. LifeSpeak also believes that
securities analysts, investors and other interested parties
frequently use these non-IFRS measures, non-IFRS ratios and key
performance indicators in the evaluation of issuers. These non-IFRS
measures, non-IFRS ratios and key performance indicators are not
recognized measures under IFRS and do not have a standardized
meaning prescribed by IFRS and may include or exclude certain items
as compared to similar IFRS measures, and such measures may not be
comparable to similarly-titled measures reported by other
companies. Accordingly, these measures and indicators should not be
considered in isolation nor as a substitute for analysis of our
financial information reported under IFRS.
Non-IFRS Measures, Non-IFRS Ratios
and Reconciliation of Non-IFRS Measures
The Company uses non-IFRS measures, including "EBITDA",
"Adjusted EBITDA", "Adjusted Net Income (Loss)", and the non-IFRS
ratios, including "Adjusted earnings (loss) per share – basic",
"Adjusted earnings (loss) per share – diluted" and "Adjusted EBITDA
Margin". This press release also makes reference to "Annual
Recurring Revenue" or "ARR", "Net Dollar Retention Rate", "Number
of Clients" and "Logo Retention Rate", which are key performance
indicators used in our industry.
EBITDA and Adjusted
EBITDA
"EBITDA" is defined as net profit or loss before income tax
expenses, finance costs and depreciation and amortization.
"Adjusted EBITDA" is defined as EBITDA before non-recurring
restructuring and other costs related to the entry into of the
Company's credit agreement and recapitalization distributions,
expenses related to the investment by the Institutional Investors,
costs and expenses in connection with the Company's IPO and related
matters, cost and expenses related to the Company's acquisitions,
synergies realized in connection with the acquisitions, share-based
compensation, foreign exchange loss (gain) and shareholders
distributions. These non-recurring costs are independent events
which are non-recurring in nature and incurred over several
financial periods.
"Adjusted EBITDA Margin" is calculated as Adjusted EBITDA
divided by revenue for the relevant period.
Selected
Consolidated Financial Information
(In thousands
of Canadian dollars)
|
|
Three Months Ended
March 31,
|
|
|
2023
|
2022
|
Net income
(loss)………………………………………………………………………………………...
|
|
(354)
|
(16,205)
|
Add:
|
|
|
|
Amortization and
depreciation expense…………………………………………………………........
|
|
4,016
|
2,417
|
Finance
expense…………………………………………………………………………………………
|
|
2,195
|
1,236
|
Income tax expense
(recovery) ………………………………………………………………………
|
|
(894)
|
(1,110)
|
EBITDA
(1) ………………………………………………………………………………………………
|
|
4,963
|
(13,662)
|
Add:
|
|
|
|
Acquisition and other
costs (2) ……………………………………………………………………….
|
|
-
|
6,780
|
Share-based
compensation……………………………………………………………………………
|
|
1,466
|
2,946
|
Foreign exchange loss
(gain) ………………………………………………………………………..
|
|
50
|
1,694
|
Changes in fair value
of contingent consideration ……………………………………………......
|
|
(3,551)
|
(694)
|
Synergies realized
(3) …………………………………………………………………………………..
|
|
237
|
720
|
Additional one-time
costs (4) …………………………………………………………………………
|
|
517
|
2,598
|
Adjusted EBITDA
(5) ……………………………………………………………………………………
|
|
3,682
|
382
|
Adjusted EBITDA Margin
(6) …………………………………………………………………………
|
|
27 %
|
4 %
|
|
|
|
Notes:
|
(1)
|
"EBITDA" has the
meaning ascribed herein under "Cautionary Note Regarding
Non-IFRS Measures, Non-IFRS Ratios and Key Performance
Indicators".
|
(2)
|
Restructuring and other
costs are costs related to the entry into of the Company's credit
agreement and recapitalization distributions and expenses related
to the investment by the Institutional Investors, costs and
expenses in connection with the Company's IPO and related matters
and costs and expenses in connection with the Company's
acquisitions.
|
(3)
|
Synergies realized
relates to the impact of the full period of cost synergies related
to the reduction of employees and professional services in relation
to acquisitions.
|
(4)
|
One-time costs related
to IPO specific adjustments, acquisitions specific adjustments and
transition costs related to the Wellbeats acquisition.
|
(5)
|
"Adjusted
EBITDA" has the meaning ascribed herein under "Cautionary
Note Regarding Non-IFRS Measures, Non-IFRS Ratios and Key
Performance Indicators".
|
(6)
|
"Adjusted EBITDA
Margin" has the meaning ascribed herein under "Cautionary
Note Regarding Non-IFRS Measures, Non-IFRS Ratios and Key
Performance Indicators".
|
Adjusted Net Income (Loss) /
Adjusted Earnings (Loss)
"Adjusted Net Income (Loss)" is defined as net income (loss)
before non-recurring restructuring and other costs related to the
entry of the Company's credit agreement and recapitalization
distributions, expenses related to the investment by the
Institutional Investors and costs and expenses in connection with
the Company's IPO and related matters, cost and expenses related to
the Company's acquisitions, synergies realized in connection with
the acquisitions, share-based compensation, foreign exchange loss
(gain). These non-recurring costs are independent events which are
non-recurring in nature and incurred over several financial
periods.
"Adjusted earnings (loss) per share – basic" is defined as
Adjusted Net Income (Loss) divided by the weighted average number
of shares outstanding – basic for the relevant period.
"Adjusted earnings (loss) per share – diluted" is defined as
Adjusted Net Income (Loss) divided by the weighted average number
of shares outstanding – diluted for the relevant period.
Selected
Consolidated Financial Information
(In thousands
of Canadian dollars)
|
|
Three Months Ended
December 31,
|
|
|
2023
|
2022
|
Net income
(loss) ………………………………………………………………………………………
|
|
(354)
|
(16,205)
|
Add:
|
|
|
|
Acquisition and other
costs (1) ………………………………………………………………………
|
|
-
|
6,780
|
Share-based
compensation…………………………………………………………………………..
|
|
1,466
|
2,946
|
Foreign exchange loss
(gain) …………………………………………………………………………
|
|
50
|
1,694
|
Changes in fair value
of contingent consideration……………………………………………….
|
|
(3,551)
|
(694)
|
Synergies realized
(2) ……………………………………………………………………………………
|
|
237
|
720
|
Additional one-time
costs (3) ………………………………………………………………………….
|
|
517
|
2,598
|
Adjusted Net Income
(Loss) (4) ……………………………………………………………………….
|
|
(1,635)
|
(2,160)
|
Adjusted earnings per
share – basic (5) …………………………………………………………….
|
|
(0.03)
|
(0.04)
|
Adjusted earnings per
share – diluted (6)…………………………………………………………....
|
|
(0.03)
|
(0.04)
|
|
|
|
Notes:
|
(1)
|
Restructuring and other
costs are costs related to the entry into of the Company's credit
agreement and recapitalization distributions and expenses related
to the investment by the Institutional Investors, costs and
expenses in connection with the Company's IPO and related matters
and costs and expenses in connection with the Company's
acquisitions.
|
(2)
|
Synergies realized
relates to the impact of the full period of cost synergies related
to the reduction of employees and professional services in relation
to acquisitions.
|
(3)
|
One-time costs related
to IPO specific adjustments, acquisitions specific adjustments and
transition costs related to the Wellbeats acquisition.
|
(4)
|
"Adjusted Net Income
(Loss)" has the meaning ascribed herein under "Cautionary Note
Regarding Non-IFRS Measures and Key Performance
Indicators."
|
(5)
|
"Adjusted earnings
(loss) per share – basic" has the meaning ascribed herein under
"Cautionary Note Regarding Non-IFRS Measures, Non-IFRS Ratios and
Key Performance Indicators".
|
(6)
|
"Adjusted earnings
(loss) per share – diluted" has the meaning ascribed herein
under "Cautionary Note Regarding Non-IFRS Measures, Non-IFRS Ratios
and Key Performance Indicators".
|
Key Performance
Indicators
Annual Recurring Revenue
"Annual Recurring Revenue" or "ARR" is equal to the annualized
value of contracted recurring revenue from all clients of our
platform 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 LifeSpeak. Such revenue is
annualized by: (i) in the case where a contract was in existence
for the entire month, multiplying recognized revenue in the
calendar month of the date measured by 12; and (ii) in the case
where a contract was entered into mid-month, extrapolating
recognized revenue at the date measured for the entire calendar
month, and then multiplying by 12. Contract lengths typically range
from one to three years and, based on our past experience, the vast
majority of clients renew their contracts upon expiry. ARR is
mainly comprised of revenue from enterprise and embedded solutions
and includes revenue from small business and ancillary services
(comprised of portals, kits and events purchased by our existing
clients or distributed through our channel partners). ARR provides
a consolidated measure by which we can monitor the longer-term
trends in our business.
"enterprise client ARR" is ARR at a particular date attributable
to enterprise clients.
Net Dollar Retention
Rate
"Net Dollar Retention Rate" for a period is defined by
considering a cohort of clients at the beginning of the period, and
dividing the ARR from enterprise and embedded solutions
attributable to that cohort at the end of the period, by the ARR
from enterprise and embedded solutions attributable to that cohort
at the beginning of the period. Net Dollar Retention Rate provides
a consolidated measure by which we can monitor the percentage of
recurring ARR retained from existing clients.
Number of Clients
"Number of Clients" is defined as the number of clients at the
end of any particular period as the number of enterprise clients
and clients of our embedded solutions for which the term of
services has not ended, or with which the Company is negotiating
contract renewal and which meet a minimum revenue threshold.
Logo Retention Rate
"Logo Retention Rate" for a period is defined by considering a
cohort of clients at the beginning of the period, and dividing the
Number of Clients from that cohort at the end of the period, by the
Number of Clients from that cohort at the beginning of the period.
Logo Retention Rate provides a consolidated measure by which the
Company can monitor the percentage of contracted clients retained
every year.
About LifeSpeak Inc.
LifeSpeak is the leading whole-person-wellbeing platform for
employers and other organizations that brings together digital
education with human support. Our suite of wellbeing products
allows organizations to provide best-in-class content and expertise
that scales, meeting each individual wherever they are on their
personal wellbeing journeys. As the parent company to LIFT Digital,
ALAViDA Health, Torchlight, and Wellbeats, LifeSpeak provides
in-depth expertise across mental health, wellness, physical
fitness, substance use, and caregiving. With more than 30 years of
collective experience working directly with Fortune 500 companies,
government agencies, insurance providers, and others across the
globe, we understand the complexities of addressing wellbeing
within organizations, which is why our digital and data-driven
approach provides insights that uncover gaps in wellbeing at the
organizational level, ultimately enhancing performance outcomes. To
learn more, follow LifeSpeak on LinkedIn
(http://www.linkedin.com/company/lifespeak-inc), or visit
www.LifeSpeak.com.
Forward-Looking
Information
This press release may contain "forward-looking information"
within the meaning of applicable Canadian securities laws.
Forward-looking information may relate to the Company's future
business, financial outlook and anticipated events or results and
may include information regarding the Company's financial position,
business strategy, growth strategies, addressable markets, budgets,
operations, financial results, taxes, and the Company's plans and
objectives. In some cases, forward-looking information can be
identified by the use of forward-looking terminology such as
"plans", "targets", "expects" or "does not expect", "is expected",
"an opportunity exists", "budget", "scheduled", "estimates",
"outlook", "forecasts", "projection", "prospects", "strategy",
"intends", "anticipates", "does not anticipate", "believes", or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might",
"will", "will be taken", "occur" or "be achieved". In addition, any
statements that refer to expectations, intentions, projections or
other characterizations of future events or circumstances contain
forward-looking information. Particularly, information regarding
the Company's expectations of future results, revenue growth, ARR,
EBITDA, adjusted EBITDA margin, adjusted EBITDA, adjusted Net
Income (Loss), adjusted Earnings (Loss), Number of Clients, Net
Dollar Retention Rate, Logo Retention Rate, performance, synergies,
achievements, prospects, industry trends, advancement of its
strategy and acceleration of its growth, the use of proceeds of the
loan advance from the credit agreement with Beedie, amortization or
opportunities, including for cross-selling, or the markets in which
the Company operates is forward-looking information. Statements
containing forward-looking information are not historical facts but
instead represent management's expectations, estimates and
projections regarding possible future events or circumstances.
This forward-looking information and other forward-looking
information are based on opinions, estimates and assumptions in
light of the Company's experience and perception of historical
trends, current conditions and expected future developments, as
well as other factors that the Company currently believes are
appropriate and reasonable in the circumstances. Despite a careful
process to prepare and review the forward-looking information,
there can be no assurance that the underlying opinions, estimates
and assumptions will prove to be correct. These opinions, estimates
and assumptions include, but are not limited to, the following: the
Company's ability to build its market share and enter new
geographies; the total available market for its products; the
Company's ability to retain key personnel; the Company's ability to
maintain and expand geographic scope; the Company's ability to
execute on its expansion plans; the Company's ability to continue
investing in infrastructure to support its growth and brand
recognition; the Company's ability to continue maintaining and
enhancing its technological infrastructure and functionality of its
platform; the Company's ability to obtain financing on acceptable
terms; the Company's ability to effectively integrate its recent
acquisitions; the Company's ability to generate sufficient cash to
deleverage, the impact of competition; the changes and trends in
the Company's industry or the global economy; and changes in laws,
rules, regulations, and global standards.
The risks and uncertainties that may affect forward-looking
statements include, among others: performance of the market sectors
that the Company serves; general market performance including
capital market conditions and availability and cost of credit;
foreign currency and exchange risk; impact of factors such as
increased pricing pressure and possible margin compression; the
regulatory and tax environment; that expected cost and revenue
synergies are not realized within the expected timeframe or at all;
that revenue, ARR, EBITDA margin and cash flow expectations are not
met for any number of reasons; political, labour or supplier
disruptions; that our clients face recessionary pressures, and
other risks detailed from time to time in the Company's filings
with Canadian provincial securities regulators, including the risk
factors which are described in greater detail under "Risk Factors"
in the Company's annual information form for the fiscal year ended
2022. Although the Company has attempted to identify important risk
factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other
risk factors not currently known to the Company or that the Company
currently believes are not material that could also cause actual
results or future events to differ materially from those expressed
in such forward-looking information. There can be no assurance that
such information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such information.
Accordingly, prospective investors should not place undue
reliance on forward-looking information. The forward-looking
information contained in this press release represents the
Company's expectations as of the date of this press release (or as
the date it is otherwise stated to be made) and is subject to
change after such date. However, the Company disclaims any
intention or obligation or undertaking to update or revise any
forward-looking information whether as a result of new information,
future events or otherwise, except as required under applicable
Canadian securities laws.
All of the forward-looking information contained in this press
release is expressly qualified by the foregoing cautionary
statements. Prospective investors should read this entire press
release and consult their own professional advisors to ascertain
and assess the income tax, legal, risk factors and other aspects of
an investment in the Company.
______________________________
|
1 See
"Non-IFRS Measures, Non-IFRS Ratios and Key Performance Indicators"
for a definition of "ARR"
|
2 See
"Non-IFRS Measures, Non-IFRS Ratios and Key Performance Indicators"
for a definition of "Number of Clients"
|
3 See
"Non-IFRS Measures, Non-IFRS Ratios and Key Performance Indicators"
for a definition of "Adjusted EBITDA" and "Adjusted EBITDA
Margin"
|
4 See
"Non-IFRS Measures, Non-IFRS Ratios and Key Performance Indicators"
for a definition, "Net Dollar Retention Rate".
|
5 See
"Non-IFRS Measures, Non-IFRS Ratios and Key Performance Indicators"
for a definition, "Logo Retention Rate".
|
SOURCE LifeSpeak Inc.