- In July 2024, San Francisco based Circle Medical which is
majority owned by WELL Health reported $8.87M in sales reflecting 65% year-over-year
organic growth, surpassing an annualized revenue run rate of over
$100M USD for the first
time.
- Circle Medical has been profitable on an Adj EBITDA basis
for more than 2.5 years now and continues to maintain strong gross
margins of approximately 55%.
- Circle Medical has established key AI partnerships and
made strategic leadership hires to drive future
expansion.
- Circle Medical has retained JP Morgan as exclusive
financial advisor to explore strategic options to fuel its next
phase of growth.
SAN
FRANCISCO and VANCOUVER, BC, Aug. 13,
2024 /PRNewswire/ - WELL Health Technologies
Corp. (TSX: WELL) (OTCQX: WHTCF) ("WELL" or the
"Company"), 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 that its majority-owned subsidiary, Circle
Medical, the leading digital-first primary care
practice in the United
States has surpassed a $100M USD revenue run rate, underscoring the
company's impressive growth and continued profitability.
In July 2024, Circle Medical
reported $8.87M in revenue,
reflecting a remarkable 65% year-over-year increase. This growth
has been achieved while maintaining a 99% patient satisfaction
rating as measured by industry standard CSAT
surveys, highlighting Circle Medical's dedication to
delivering exceptional patient care. Circle Medical has been able
to maintain a strong gross margin of approximately 55% and has
generally operated profitably on and adjusted EBITDA basis for the
last 2.5 years. Circle Medical has retained JP Morgan as exclusive
financial advisor to explore strategic options to fuel its next
phase of growth.
"Our growth and success is the result of our continued
commitment to delivering high-quality medical care while continuing
to innovate on patient experience," said George Favvas, Co-founder
and CEO of Circle Medical. "We are proud of this important
milestone and look forward to working with the JP Morgan team to
help identify the appropriate partners as we continue to grow
towards $1 billion in
revenue."
Circle Medical's majority shareholder, WELL, will discuss
Circle Medical's record revenue run-rate in its quarterly earnings
call on August 14, 2024. WELL has
previously indicated it would pursue strategic alternatives for its
majority stake in Circle Medical, which has grown its revenue
run-rate from $5M to over
$100M USD in less than four years
since WELL acquired its stake.
To support this rapid growth, Circle Medical has made
strategic leadership hires and formed key partnerships in
artificial intelligence (AI). The company is heavily investing in
AI technologies that enhance patient care and operational
efficiency, including AI-powered scribes for documentation and
compliance tools for clinical reviews.
Circle Medical recently appointed Miguel Jetté as its
first Head of AI. With over 20 years of experience in the field,
Miguel will spearhead the company's AI strategy. His previous roles
include VP of AI at Rev and speech scientist at Nuance. Miguel will
also lead Circle Medical's collaboration with the Mila – Quebec
Artificial Intelligence Institute, the world's largest academic
research center for deep learning.
Additionally, Circle Medical has welcomed back
Brent LaRue as VP of Product and
Patient Experience. As one of the original co-founders, Brent's
return signals a renewed focus on product design to drive patient
engagement and satisfaction. Brent brings a wealth of experience in
healthcare startup design and innovation, further strengthening
Circle Medical's leadership team.
The exploration of strategic alternatives for Circle
Medical reflects WELL Health's ongoing efforts to demonstrate sum
of parts value for shareholders and position both WELL Health and
Circle Medical for long-term success in the digital healthcare
landscape.
Non-GAAP financial measures
The Company uses Adjusted EBITDA, a non-GAAP financial measure, as
an indicator of its financial and operating performance. The
Company believes this financial measure reflects the Company's
ongoing business in a manner that allows for meaningful
period-to-period comparisons and analysis of trends in its
business.
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 34,000
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, mental health, revenue cycle
management, and practitioner recruiting. 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 the Company,
please
visit: www.well.company.
Forward-Looking Statements
This news release may contain "Forward-Looking
Information" within the meaning of applicable Canadian securities
laws, including, without limitation: information regarding the
Company's Adjusted EBITDA; its run-rates; its plans for future
partners and expansion plans; and revenue expectations.
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.
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, 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 adverse market conditions; risks inherent in the
telehealth sector; regulatory and legislative changes; that future
results may vary from historical results; inability to identify a
suitable partner; and other risk factors identified in its most
recent Annual Information Form filed by WELL under its profile at
www.sedarplus.ca. 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.
Neither the TSX nor its Regulation Services Provider
(as that term is defined in policies of the TSX) accepts
responsibility for the adequacy or accuracy of this
release.
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SOURCE WELL Health Technologies Corp.