- WELL expects to announce positive EPS or Earnings Per Share on
an adjusted and unadjusted basis for Q4-2023.1
- WELL expects to announce its 20th consecutive
quarter of record quarterly revenue in Q4-2023, underpinned by
record care metrics which includes record patient visits of over
1.22 million and almost 1.87 million Total Care Interactions in the
quarter with both metrics representing 18% sequential QoQ
growth.2,3
- This quarter's strong performance was driven by double-digit
YoY organic growth as well as elevated inorganic growth in both US
and Canadian patient visits. On a YoY basis, overall patient visits
grew by 30% while Total Care Interactions grew by 38%.
- WELL is proud to announce that its BC clinics which include
some of the longest owned and operated clinics in the WELL family
network have achieved a record Net Promoter Score (NPS) of 80%
in Q4-2023 compared to industry average of 34% for the Canadian
healthcare sector.4,5
VANCOUVER, BC and TORONTO, Jan. 25,
2024 /CNW/ - WELL Health Technologies Corp. (TSX:
WELL, OTCQX: WHTCF) ("WELL"), a digital healthcare company
focused on positively impacting health outcomes by leveraging
technology to empower healthcare practitioners and their patients
globally, is pleased to announce positive preliminary quarterly
financial results for Q4-2023 ending December 31, 2023 with projected record revenue
and positive adjusted and non-adjusted EPS or Earnings per
Share.1 WELL's strong financial performance was driven
by another record quarter in patient visits which resulted in
sequential QoQ growth of 18% and YoY growth of 30%.2
Hamed Shahbazi, Founder and CEO
of WELL, commented "Based on our preliminary financial results and
subject to finalizing our audit, I am extremely pleased to report
that WELL expects to announce record revenues and Adjusted EBITDA
including positive adjusted and unadjusted EPS for Q4 2023. As
discussed in our business update last week, WELL's value
proposition is resonating with the medical community across the
country as the clear leader in helping clinic owners,
administrators and care providers improve clinic operations. This
is not only attracting an unprecedented number of new clinics and
healthcare providers to WELL, but it is also giving us an
opportunity to grow in an extremely capital efficient manner. Most
of the clinics we add to our platform are profitable on day one and
are handpicked because of the opportunity for margin and profit
expansion. All of this is made possible due to our talented staff,
extensive operating experience, and trusted technology platform now
features powerful and responsible use of Artificial
Intelligence."
Mr. Shahbazi further added, "As we step into our year of
enhanced efficiency, we are prioritizing profitability and capital
efficiency in our own operating environment, while maintaining
elevated organic growth levels and a focus on quality delivery as
noted by our industry leading NPS scores. We recognize the
tremendous need in the healthcare sector and are committed to
serving all care providers on our platform with the best tools and
technologies available. We are also seeing excellent initial
results from our higher margin Longevity+ offerings and look
forward to rolling those out to the rest of the country."
Eva Fong, CFO of WELL, also
remarked, "In Q4-2023, WELL's financials reveal an exceptional
growth trajectory, highlighted by a significant acceleration in
patient visits. These visits are not only a key indicator for our
business but also a clear sign of our effective scaling. This
acceleration in patient visit growth supports our positive forecast
for accelerated EBITDA growth in the coming year. A significant
part of our success can be attributed to WELL's work culture. Our
status as a Great Place to Work® certified independently by the
Great Place to Work Institute® Canada is a testament of our dedication to a
workplace environment that fosters trust, inclusivity, and
well-being. This aligns perfectly with our 'Healthy Place to Work'
ESG pillar, further enhancing our operational efficiency and
ability to maintain a high-performance team. Our financial position
is strong and getting stronger as we will discuss at our upcoming
earnings event, including more details on our recently kicked off
cost optimization program.
Patient Visit Metrics
WELL's patient visits and Total Care Interactions metrics are an
important leading indicator to demonstrate the health of WELL's
operational and financial performance. 2,3 With these
robust care growth metrics, WELL is expecting to report record
revenue for Q4-2023 in both our Canadian and US Patient Services
businesses.1
In Q4-2023, WELL's Canadian Patient Services business,
encompassing primary care, specialty, allied care, diagnostic care,
and executive health including our new Longevity+ offering logged a
total of 678,000 patient visits across Canada, an increase of 38% as compared to
491,000 patient visits in Q4-2022.2 The growth in
patient visits was driven by the acquisition of clinical assets
from MCI Onehealth Technologies (now known as HEALWELL AI), and one
month's contribution from WELL's first Manitoba clinic. The Manitoba clinic marks a key milestone for the
Company as WELL now has a physical clinical presence in 5 provinces
across Canada. As WELL continues
to expand and mature, we anticipate that patient visits across
Canada will progressively align
more closely with Canada's
demographic distribution.
WELL Health USA achieved
544,000 patient visits in Q4-2023. WELL Health USA figures include CRH Medical, Circle
Medical and Wisp.2 Growth in US patient visits was
primarily driven by organic growth in Circle Medical and Wisp
businesses, in addition to acquisitions by CRH Medical over the
past year, notably CarePlus which was acquired in July 2023. As part of the CarePlus acquisition,
WELL acquired Radar Healthcare Providers ("RADAR"), a
leading professional medical recruitment firm in the United States providing staffing and
locums tenens services. RADAR billed a total of 98,000 provider
hours ("Billed Provider Hours") in Q4-2023.6
WELL achieved a total of 1,867,000 Total Care Interactions in
Q4-2023, a year-over-year increase of ~38% compared to Q4-2022 and
representing ~7.5 million Total Care Interactions on an annualized
run-rate basis.3
WELL Total Patient Visits and Interactions
|
Q4-23
|
Q3-23
|
Q4-22
|
QoQ
Growth
|
YoY
Growth
|
YoY Organic
Growth7
|
Canada Patient
Visits8
|
678,000
|
532,000
|
491,000
|
+27 %
|
+38 %
|
+10 %
|
US Patient
Visits8
|
544,000
|
505,000
|
450,000
|
+8 %
|
+21 %
|
+18 %
|
Total
Visits
|
1,222,000
|
1,037,000
|
941,000
|
+18 %
|
+30 %
|
+14 %
|
|
|
|
|
|
|
|
Technology
Interactions9
|
547,000
|
458,000
|
411,000
|
+19 %
|
+33 %
|
+33 %
|
Billed Provider
Hours6
|
98,000
|
81,000
|
N/A
|
+21 %
|
N/A
|
N/A
|
Total Care
Interactions3
|
1,867,000
|
1,576,000
|
1,352,000
|
+18 %
|
+38 %
|
+20 %
|
WELL Canadian Clinics Q4-23 Patient Visits
Province
|
% of Canadian
Patient Visits
|
Ontario
|
50 %
|
British
Columbia
|
37 %
|
Rest of
Canada
|
13 %
|
A notable highlight in Q4 was a historic milestone for WELL, as
Ontario surpassed British Columbia in patient visits for the
first time. Ontario witnessed a
43% year-over-year increase in patient visits, mainly due to recent
acquisitions and absorptions.
WELL's Industry Leading NPS Scores
WELL is proud to announce that its clinics in British Columbia have achieved a record Net
Promoter Score (NPS) of 80% in Q4-2023 compared to an industry
average of 34% for the Canadian healthcare sector.4,5
This score reflects WELL's commitment to clinical management
expertise and patient satisfaction. The Company is now expanding
the NPS survey initiative across its network of clinics in various
provinces. This rollout is viewed as a critical integration step,
ensuring a uniformly high-quality healthcare experience across the
WELL network, benefiting both patients and healthcare providers.
This significance of measuring the NPS of WELL's BC clinics is due
to the fact that these are the clinics that have been owned,
operated, digitally transformed, and under the oversight of WELL's
management team longer than any other clinics in the WELL network,
making them a more accurate reflection of WELL's full capabilities
in managing healthcare clinics effectively.
Footnotes:
- Based on preliminary financial information and subject to
WELL's year end audit which is expected to be completed in
March 2024. Please refer to Q3-2023
MD&A for definitions of Adjusted Net Income per Share.
- Patient visits are defined by any interaction a patient has
with a WELL practitioner through all sources and channels. This
also includes diagnostic testing consultations or any asynchronous
physician consultations.
- Total Care Interactions are defined as Patient Visits plus
Technology Interactions and Billed Provider Hours (see Footnote
6).
- NPS, or Net Promoter Score, is a customer loyalty metric that
measures how likely customers are to recommend a company's products
or services to others on a scale of -100 to 100. It is calculated
based on responses to a single question: "How likely are you to
recommend our service to a friend or colleague?
- See Retently, 'What is a Good Net Promoter Score (NPS)? [2023
Benchmarks],' published on May 18,
2023.
- Billed Provider Hours are defined as hours providers bill under
RADAR Healthcare Providers.
- Organic growth includes growth from clinics added though WELL's
clinic absorption program, as outlined in WELL's press release
dated January 16, 2024.
- Patient visits metrics for the prior period, Q4-2022, has been
restated to align with new segmentation based on Canadian Patient
Services and US Patient Services operating segments. Diagnostic
patient visits performed by MyHealth and False Creek Wellness are
now included in Canadian Patient visits, while Wisp's asynchronous
patient visits are now included in US Patient visits. Patient
bookings only conducted by various technology providers such as
OceanMD, Adracare, and Insig are now reported under Technology
Interactions. Technology Interactions does not include the many
millions of patient interactions supported by WELL's EMR Group or
family of digital health apps such as the OceanMD patient
engagement platform.
- Technology Interactions are defined as patient visits
facilitated with WELL's technologies but supported by non-WELL
healthcare providers.
WELL HEALTH TECHNOLOGIES CORP.
Per: "Hamed Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
About WELL Health Technologies Corp.
WELL's mission is to tech-enable healthcare providers. We do
this by developing the best technologies, services, and support
available, which ensures healthcare providers are empowered to
positively impact patient outcomes. WELL's comprehensive healthcare
and digital platform includes extensive front and back-office
management software applications that help physicians run and
secure their practices. WELL's solutions enable more than 33,000
healthcare providers between the US and Canada and power the largest owned and
operated healthcare ecosystem in Canada with more than 165 clinics supporting
primary care, specialized care, and diagnostic services. In
the United States WELL's solutions
are focused on specialized markets such as the gastrointestinal
market, women's health, primary care, and mental health. WELL is
publicly traded on the Toronto Stock Exchange under the symbol
"WELL" and on the OTC Exchange under the symbol "WHTCF". To learn
more about WELL, please visit: www.well.company.
Forward-Looking Statements
This news release contains "Forward-Looking Information" within
the meaning of applicable Canadian securities laws, including,
without limitation: its expected positive earnings per share; its
expectations with respect to quarterly revenue for Q4-2023;
information regarding the Company's strategies and growth plans;
expectations surrounding future patient visits; the expected
benefits and synergies of acquisitions; and the expected financial
performance of WELL's Patient Service businesses, as well as
information in the "Outlook" section herein.
Forward-Looking Information are necessarily based upon a number
of estimates and assumptions that, while considered reasonable by
management, are inherently subject to significant business,
economic and competitive uncertainties, and contingencies. All of
these assumptions, such as WELL's belief that its preliminary
Q4-2023 analysis will align with final audited financial results,
that the tools used to track and report patient visits are
accurate, and that patient visits continue to be a key indicator of
WELL's growth trajectory, could be wrong. Forward-Looking
Information generally can be identified by the use of
forward-looking words such as "may", "should", "will", "could",
"intend", "estimate", "plan", "anticipate", "expect", "believe" or
"continue", or the negative thereof or similar variations.
Forward-Looking Information involve known and unknown risks,
uncertainties and other factors that may cause future results,
performance, or achievements to be materially different from the
estimated future results, performance or achievements expressed or
implied by the Forward-Looking Information and the Forward-Looking
Information are not guarantees of future performance. WELL's
comments expressed or implied by such Forward-Looking Information
are subject to a number of risks, assumptions, uncertainties, and
conditions, many of which are outside of WELL 's control, and undue
reliance should not be placed on such information. Forward-Looking
Information are qualified in their entirety by inherent risks and
uncertainties, including: direct and indirect material adverse
effects from the COVID-19 pandemic; adverse market conditions;
risks inherent in the primary healthcare sector in general;
regulatory and legislative changes; that future results may vary
from historical results; inability to obtain any requisite future
financing on suitable terms; any inability to realize the expected
benefits and synergies of acquisitions; that market competition may
affect the business, results and financial condition of WELL and
other risk factors identified in documents filed by WELL under its
profile at www.sedarplus.ca, including its most recent Annual
Information Form. Except as required by securities law, WELL does
not assume any obligation to update or revise any forward-looking
information, whether as a result of new information, events or
otherwise.
This news release contains future-oriented financial information
and financial outlook information (collectively, "FOFI") about
estimated Adjusted EBITDA, expected adjusted and unadjusted
earnings per share, all of which are subject to the same
assumptions, risk factors, limitations, and qualifications as set
out in the above paragraph. The actual financial results of WELL
may vary from the amounts set out herein and such variation may be
material. WELL and its management believe that the FOFI has been
prepared on a reasonable basis, reflecting management's best
estimates and judgments. However, because this information is
subjective and subject to numerous risks, it should not be relied
on as necessarily indicative of future results. Except as required
by applicable securities laws, WELL undertakes no obligation to
update such FOFI. FOFI contained in this news release was made as
of the date hereof and was provided for the purpose of providing
further information about WELL's anticipated future business
operations. Readers are cautioned that the FOFI contained in this
news release should not be used for purposes other than for which
it is disclosed herein.
Non-GAAP Financial Measures
This news release contains non-generally accepted accounting
principles ("GAAP") financial measures. The non-GAAP
financial measures in this news release include EBITDA, Adjusted
EBITDA, and Adjusted Net Income per share, as defined in our
Q3-2023 MD&A. Non-GAAP financial measures should not be
considered as a substitute for, or superior to, measures of
financial performance prepared in accordance with GAAP. WELL
utilizes both GAAP and non-GAAP financial measures to assess what
it believes to be its core operating performance and to evaluate
and manage its internal business and assist in making financial
operating decisions. WELL believes that the inclusion of non-GAAP
financial measures, together with GAAP measures, provides investors
with an alternative presentation useful to investors' understanding
of WELL's core operating results and trends.
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