StockpickerCAPC
11 months ago
CloudMD Reports First Quarter 2023 Results Closing the Gap on Path to Profitability.
Source
https://finance.yahoo.com/news/cloudmd-reports-first-quarter-2023-203000089.html
May 29, 2023
- Q1 2023 revenue of $26.1 million compared to $25.9 million in Q4 2022
- Q1 2023 gross profit margin of 36.1%, 130 bps improvement from the previous quarter
- Q1 2023 Adjusted EBITDA loss of $1.6 million, $0.9 million improvement from the previous quarter. Net loss of $7.1 million in Q1 2023.
- Cash and cash equivalents of $18.8 million at the end of Q1 2023
- Multi year contract signings of $2.9 million in annual recurring revenue in Q1 2023
CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF, Frankfurt: 6PH), an innovative health services company transforming the delivery of care, is pleased to announce its financial results for the first quarter ended March 31, 2023. All financial information is presented in Canadian dollars unless otherwise indicated.
“We had strong performance in our Employer Health and Wellness services with new partnerships with Benefits Alliance, Mohawk Medbuy, and XTM. This will bring our Kii service offering to potentially hundreds of thousands of new users these organizations represent,” said Karen Adams, CEO of CloudMD “Our pipeline in the United States in our Health Productivity Solutions division continues to grow with focus on remote patient monitoring which includes our life and health application technology. The combination of organic growth, operational improvement and cost efficiencies in both divisions is driving our performance in this quarter.”
“We are starting to see the improvement in our financial results because of cost optimization efforts in 2022. In Q1 2023, we saw our financial KPIs trend in the right direction with revenue growth, lower operating expenses, and improvement in Adjusted EBITDA,” said John Plunkett, CFO of CloudMD. “We are focused on continuing to drive organic growth and identifying further cost efficiencies with the target of reaching Adjusted EBITDA positive in the fourth quarter of this year.”
First Quarter 2023 Financial Highlights
- Q1 2023 revenue of $26.1 million, compared to $31.0 million in Q1 2022 and $25.9 million in the previous quarter. Compared to Q4 2022, revenue was up by $0.2 million, driven by organic growth from the start of previously announced annual recurring revenue contracts offset by lower revenues in VisionPros and some attrition in the Occupational Health business.
- Q1 2023 gross profit margin was 36.1% compared to 34.8% in Q4 2022, and lower compared to 36.7% in Q1 2022. Changes are due to the revenue mix in the respective periods.
- Adjusted EBITDA for the first quarter was ($1.6) million, in-line with the prior year comparative period. Adjusted EBITDA4 improved by $0.9 million from Q4 2022. The improvement in Adjusted EBITDA from Q4 2022 is due to the continued cost optimization efforts.
- Net loss in Q1 2023 was $7.1 million, or $0.02 per share, compared to a loss of $5.6 million or $0.02 per share in Q1, 2022.
- The Company identified and actioned approximately $1.0 million of annualized cost reductions in the first quarter, the impact of which was realized in part in the first quarter with the full run-rate impact expected in Q2 2023. Subsequent to the first quarter of 2023, the Company has identified approximately $4.0 million annually of cost reductions that will be realized in the second and third quarter of 2023.
- Cash outflow in the fourth quarter was $5.3 million. Normalized cash outflow for the first quarter was $3.9 million. As of March 31, 2023, the Company had $18.8 million of cash and cash equivalents.
Fourth Quarter & Subsequent Corporate Highlights
- On February 13, 2023, CloudMD announced the launch Spanish language TAiCBT in the United States.
- On March 27, 2023, CloudMD announced that Bram Lowsky had joined the Company as the new Head of Health and Wellness Services.
- On April 3, 2023, CloudMD announced the launch of its online prescription renewal in the United States.
- On April 4, 2023, CloudMD announced its partnership with Mohawk Medbuy to offer its full suite of services to hospitals across Canada.
- On April 10, 2023, CloudMD announced that Dhruv Chandra had joined the Company as the new Chief Technology Officer.
- On April 12, 2023, CloudMD announced an expanded partnership with Benefits Alliance to offer its full suite of Kii services to employee benefits plans across Canada.
- On May 11, 2023, CloudMD announced a partnership with XTM to bring EAP and Telemedicine to service industry workers.
Outlook
- 2022 was a year of transition as the Company focused on operationalizing, aligning, and rationalizing the large number of acquisitions completed over the preceding two years. The Company has been focused on the integration of its previous acquisitions and products to create an innovative market leadership position and deliver profitable results.
- During Q1 2023, the Company started to see positive trends in its financial KPIs, with revenue, Adjusted EBITDA and normalized cash flow all improving.
- The Company expects low double digit revenue growth in 2023 from the fourth quarter 2022 baseline. The Company sold $2.9 million in multi-year contracts in Q1 2023 and has a robust growing pipeline that will continue to drive revenue growth in 2023.
- During the first quarter, the Company identified and actioned approximately $1.0 million in annual cost reductions. In addition, the Company is expecting to action another $4.0 million of annual net cost savings between the second and third quarter of 2023. These synergies will come with a cost of severance, or working notice, which will impact cash flows in the first three quarters of 2023.
- The cost savings achieved in the fourth quarter of 2022, in addition to the savings realized in the first quarter of 2023 and expected reductions in the second and third quarter of 2023, will bring the Company closer to adjusted EBITDA breakeven. The Company expects to achieve this milestone in the fourth quarter of 2023.
- The Company believes its cash position of $18.8 million, will provide sufficient liquidity to fund its obligations and organic growth. The Company will continue to prudently manage expenditures and seek further efficiencies in its cost structure.
Management Update
The Company announces the resignation of Chief Commercial Officer, Adam Kelly, effective June 23, 2023. Mr. Kelly’s responsibilities will be divided between Bram Lowsky, Head of Health and Wellness Services and Nathan Lane, Head of Health and Productivity Solutions.
The Company also announces the granting of stock options to purchase an aggregate of 200,000 common shares of the Company at an exercise price equal to the 5-day VWAP as of June 7, 2023 per share for a five year term. The stock options were granted pursuant to the Company’s Stock Option Plan to certain officers of the Company.
Select Financial Information
To see all the tables please look at:
https://finance.yahoo.com/news/cloudmd-reports-first-quarter-2023-203000089.html
StockpickerCAPC
1 year ago
CloudMD Study Uncovers why Employees are not Utilizing Employer-Paid Health & Wellness Benefits when Stress and Burnout are at Record Levels.
Source
https://finance.yahoo.com/news/cloudmd-study-uncovers-why-employees-114500319.html
March 1, 2023 at 12:45 PM
- The study conducted by ANDx Research Group shows that employee’s want more choice, better communication, and support with navigating options and coverage.
- Unlocking the Potential of Employer-Provided Health Benefits.
CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF, Frankfurt: 6PH), an innovative health services company transforming the delivery of care, is pleased to share the results of its study conducted by ANDx Research Group.
https://www.andx.co/
Unlocking the Potential of Employer-Provided Health Benefits.
https://www.cloudmd.ca/event/unlocking-the-potential-of-employer-provided-health-benefits/
CloudMD sought to investigate what kind of healthcare benefits employees are using, what services aren’t being used and why, and what could be done to improve utilization. Overall, the study identified a misalignment in the market today between the rise of employee mental health struggles and the limited utilization of support programs offered to them.
Key findings include:
- Employees are feeling more stress and burnout, leading to lowered mental health and productivity in the workplace. Despite this, only 37% of employees are utilizing their mental health benefits. The least utilized services were Paramedical benefits for Mental Health and Employee and Family Assistance Plans (EFAP).
- Employees who used paramedical benefits for mental health support reported greater satisfaction with their benefits offering than those who didn’t utilize them.
- The three biggest barriers to utilization include: confusion around costs and services available, lack of time to participate with the programs offered and wait time to access the services.
- Employees want more choice in services, help navigating their benefits and coverage, proof that the programs work, and a better customer experience with less waiting.
- Younger employees want more choice in services, while male employees wanted more evidence that the programs work.
There is a clear opportunity for companies to increase employee wellness and job satisfaction and thereby reduce burnout and absenteeism by removing the barriers that prevent employees from fully benefiting from the supports offered to them.
“This survey tells us that employees want help in understanding and navigating their mental and physical health benefits. Employers’ investment in health & wellness programs needs to include navigation services to enable people to gain access to care that meets not only their needs, but also their preferences,” said Karen Adams, CEO of CloudMD. “If employees aren’t fully utilizing the care available to them, this diminishes the value that both employees and employers receive, resulting in lower employee satisfaction, deteriorating mental and physical health, and higher rates of absenteeism.”
Karen Adams continued, “We’ve repeatedly demonstrated that health navigation closes the utilization gap and increases return on healthcare investments. Historically this approach was used to navigate complex disability cases. Now we use that same process to help connect employees to the right services and support them throughout their entire journey. Our unique set of services are proven to break down traditional barriers around availability, time, confusion, and stigma and provide the widest choice in access and delivery to meet patients where they are.”
CloudMD will present the study findings and recommendations at the inaugural HRD Wellbeing Summit Canada on March 1st which is bringing together thought leaders and HR innovators from across the country to share their strategies for launching the workplace into the era of wellness.
CloudMD will also present a session with Manulife on implementing TAiCBT in the workplace to improve mental health and disability outcomes.
The HRD Wellbeing Summit Canada will also see presentations from Air Canada, Hootsuite, Cowan Insurance Group, Marriot Hotels, LCBO, RBC Insurance, Ontario Teachers Pension Plan, Starbucks, and many others. The full agenda is available at https://www.wellbeingsummit.ca/
About ANDX
ANDX has been supplying Customer Experience research, reporting, and consulting services for more than two decades working with some of the largest brands across an array of verticals in the US, Canada and around the globe. We have experience managing enterprise-wide Customer Experience programs, measuring multiple moments of truth across and several lines of business. ANDX provides a leading-edge Customer Feedback Management (CFM) platform that enables our customers to analyze results in real-time, together with an account team of industry professionals that become an extension of your team.
About CloudMD Software & Services
CloudMD is an innovative North American healthcare service provider focused on empowering healthier living by combining leading edge technology with an exceptional national network of healthcare professionals. Every day, our employees and health care providers live our values of deliver excellence, collaboration, connected communication and accountability to solve complex health problems. CloudMD’ s industry leading workplace health and wellbeing solution, Kii, supports members and their families with a personalized and connected healthcare experience across mental, physical and occupation health. Kii delivers superior clinical health outcomes, consistent high engagement, and measurable ROI for payers such as employers, educational institutions, associations, government, and insurers. CloudMD is also a market leader in workplace absence management through data-driven prevention, intervention and return to work programs.
In addition, the Company sells health and productivity tools to hospitals, clinics, and other healthcare service providers to empower them to deliver better care.
Visit
https://www.cloudmd.ca/
to learn more about the Company’s comprehensive healthcare offerings.
ON BEHALF OF THE BOARD OF DIRECTORS
“Karen Adams”
Chief Executive Officer
StockpickerCAPC
1 year ago
CloudMD Announces Filing of Management Information Circular for Annual and Special Meeting of Shareholders.
Source
https://finance.yahoo.com/news/cloudmd-announces-filing-management-information-113000718.html
November 21, 2022
CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF, Frankfurt: 6PH) is pleased to announce that it will be filing its management information circular and related voting materials for the annual and special meeting of shareholders with Canadian regulators today. A copy of the Meeting Materials will be available at
https://investors.cloudmd.ca/investors/
and under the Company’s issuer profile on SEDAR, which can be accessed at
https://www.sedar.com/
The Meeting is being held on December 15, 2022. As set out in the Meeting Materials, there are seven nominees for election as directors of the Company, including four new nominees, one of whom will be the Chair. All of the New Nominees and two of the incumbent directors are independent and have held the roles of CEO, CFO, Chief Legal or Chief Information Officer at large public companies. They also have a wealth of experience working in healthcare and using technology to drive innovation and strong results for shareholders.
Dr. Essam Hamza and Christopher Cherry are not standing for re-election. The Company would like to thank them for their service.
Set out below are the nominees for election as directors of the Company at the Meeting and the Company recommends voting in favour of each of them.
Graeme McPhail – New Nominee – Independent (and Chair)
Graeme McPhail is a corporate director. He most recently served as the Chief Legal and Regulatory Officer and Corporate Secretary, Rogers Communications Inc. and Rogers Bank. In this role, he was responsible for legal, corporate governance, government relations, mergers and acquisitions, joint ventures, privacy, technology licensing, and litigation in a highly regulated industry.
John A. Hill – New Nominee – Independent
John Hill is currently the Senior Vice President, Digital and IT, and a member of the Senior Leadership team at Suncor Energy Inc. Prior to that, he was the Chief Information Officer at Rogers Communications Inc., and Saskatchewan Telecommunications, as well Chief Information Security Officer at Enbridge Inc.
Scott Milligan – New Nominee – Independent
Scott Milligan is a corporate director. Mr. Milligan was previously the Executive Vice-President and Chief Financial Officer of Lifeworks (formerly Morneau Shepell). Mr. Milligan was responsible for the development and execution of Lifeworks overall corporate strategy, merger and acquisition activities, information technology, as well as the corporate functions that manage and determine the financial health of the organization, including financial reporting, tax, treasury, real estate, investor relations, planning and analysis.
Larry Shumka – New Nominee – Independent
Larry Shumka is a highly accomplished entrepreneur who acts as an advisor and board member to companies servicing the insurance industry or leveraging technology for market disruption. Previously, Mr. Shumka was the founder of SCM Insurance Services, Canada largest claims adjusting company.
Duncan Hannay – Incumbent Nominee – Independent
Duncan Hannay is currently the President & CEO of Ontario Lottery and Gaming Corporation with more than 25 years of experience building and growing technology-driven businesses across a global footprint in the banking, wealth management, and gaming/entertainment sectors.
Gaston Tano – Incumbent Nominee – Independent
Gaston Tano is a senior finance executive with over 30 years of diverse industry experience in multiple global public companies. He is recognized as a proven finance leader with strong qualifications in capital markets, debt financing, restructuring, mergers and acquisitions, strategic planning, risk management and investor relations.
Karen Adams – Incumbent Nominee
Karen Adams is the Chief Executive Officer of CloudMD. She has held this position since August 2022. Ms. Adams joined CloudMD in 2020 and held a number of senior roles, including leading innovation and operations of the Enterprise Health Solutions (EHS) division. EHS, the largest division of CloudMD, provides healthcare navigation that enables the management of mental and physical health issues. Ms. Adams brings more than 20 years of senior executive experience in the healthcare, technology, insurance, and professional services sectors.
About CloudMD Software & Services
CloudMD is transforming the delivery of healthcare using technology and by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging healthcare technology, the Company is building one, connected platform that addresses all points of a patient’s healthcare journey and provides better access to care and improved outcomes. Through CloudMD’s proprietary technology, the Company delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, healthcare navigation, educational resources, and artificial intelligence (AI). CloudMD’s business is separated into two main divisions: Digital Solution and Enterprise Health Solutions, the Company’s fastest growing division. CloudMD’s Enterprise Health Solutions Division has built a leading employer healthcare solutions, including its Comprehensive Integrated Health Services Platform, which offers one comprehensive, digitally connected platform for educational institutions, corporations, insurers, and advisors to better manage the health and wellness of their students, employees, and customers.
CloudMD currently services a direct ecosystem of over 5,700 clinicians including, 1,800+ mental health practitioners, 1,600+ allied health professionals, 1,400+ doctors and nurses and covers 12 million individual lives across North America.
For more information visit:
https://investors.cloudmd.ca/
ON BEHALF OF THE BOARD OF DIRECTORS
“Karen Adams”
Chief Executive Officer
FOR ADDITIONAL INFORMATION, CONTACT:
Mark Kuindersma
Investor Relations
mark.kuindersma@cloudmd.ca
(519) 501-0545
StockpickerCAPC
1 year ago
CloudMD Software & Services Inc. (DOCRF) Q3 2022 Earnings Call Transcript.
Source
https://seekingalpha.com/article/4558035-cloudmd-software-and-services-inc-docrf-q3-2022-earnings-call-transcript
Nov. 15, 2022 12:44 PM ET
Company Participants
Karen Adams - Chief Executive Officer
John Plunkett - Chief Financial Officer
Conference Call Participants
Scott Schoenhaus - KeyBank
Rob Goff - Echelon Partners
Gabriel Leung - Beacon Securities
Prasath Pandurangan - Bloom Burton
Operator
Good day and welcome to CloudMD Q3 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will a question-and-answer session. Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker [Mark Kuindersma] with Investor Relations. Please go ahead.
Unidentified Company Representative
Thank you and good morning everyone. Thank you for joining us for our third quarter 2022 conference call and webinar. We'll start the call with our CEO, Karen Adams, followed by CFO, John Plunkett, who will provide a recap of the Company's Q3 2022 financial results before opening up for a question-and-answer period with our covering analysts.
A friendly reminder, that today's discussion contains certain forward-looking information, which involves inherent risks and uncertainties and other factors that could cause actual results to differ materially from management's current expectations.
Forward-looking information should not be interpreted as assurances of future performance or results. The risks related to forward-looking information are described in the Company's MD&A, which is available on SEDAR. We encourage you to review our public disclosure in the context of all the forward-looking information that you may hear today during this earnings call.
Investors are cautioned not to place undue reliance on such forward-looking information, and that such information is considered reasonable based on information available to management as of today. However, the Company disclaims any intention or obligation to update or review any forward-looking information as a result of new information, future events, or for any other reason, except to the extent required by law.
With that, it is my pleasure to turn the call over to Karen Adams, CEO of CloudMD. Karen, the floor is yours.
Karen Adams
Thank you, Mark, and good morning everyone. Welcome to CloudMD Q3 2022 earnings call. We appreciate everyone being here today. In the last quarter, we focused on strengthening the business. We undertook a number of strategic priorities that are essential to execute. The execution is making us a stronger, more transparent organization. These priorities will improve the financial performance of the Company while creating sustainable growth.
Today, John and I will provide an update on the priorities of generating high quality organic growth, restructuring and cost efficiency, improved cash management, and our ability to surface value from the divestment of our clinics and pharmacies. This will enable us to focus on our employer Health Solutions Division and our Digital Health Solutions Division.
Collectively, we are making good progress. However, there is still a lot of work to be done in the next few quarters to see the results in top line revenue growth, margin improvement, EBITDA contribution and positive operating cash flow. The Company is in a stronger place today than it was six months ago from an operational financial and governance perspective.
As John will outline today, we have taken an analytical, disciplined approach to delivering organic growth and a path to profitability and resolving the identified challenges. Today, you will hear how the management team has worked hard to improve the balance sheet to reflect the current state of the Company. This is very important in order to be able to monitor our performance and deliver shareholder value.
This quarter, we announced $27.5 million in revenue, which does not include the revenue contributions from the entire clinics and pharmacy division or Cloud Practice which have either been sold or are in the process of being sold. The comparable revenue for last quarter would have been approximately 30 million.
The commercial team is replacing short-term non-recurring contracts with long-term recurring revenue base. While total revenue from continuing operation is down 2.5 million from Q2, this is due to two known factors. The first is the end of the ungated Ontario Health contract which ended in August and as we disclosed on our last conference call had a $1.5 million impact in the quarter.
The other declined was the loss of the COVID testing revenue, which had approximately a $900,000 impact in the third quarter compared to the second quarter of 2022. It is difficult to replace this large one-time revenue in a short period of time. These large one-time contracts ending overshadow the growth and momentum in recurring contracts being acquired in our other revenue streams. The sales closed year-to-date are indicative of an approximate 10% organic growth rate.
We have also executed on the previously identified 4 million of reductions and have identified a further 6 million to be fully executed by mid Q1, 2023. These reductions will be realized through integration of operations as we scale as well as costs associated with one-time mandate. John will go into more detail on the financial overview.
I do want to take a moment before discussing the commercial update to address the economic and social environment. I have received lots of questions about these conditions and the growth potential of the Company. The past two years have shown a light on the importance of health risk management. COVID has altered the distribution of health expenditures over the past two years. The pandemic has revealed a weakness in crisis preparedness and access to care.
In the United States and Canada, healthcare spending is rising on both a per person basis and as a share of the GDP. A global healthcare survey conducted by Willis Towers Watson reveals that employer healthcare costs globally are expected to rise by 10% in 2023 and by 6.3% in Canada. The study identified poor health habits as one of the top reasons for rising costs.
These statistics reinforce the need for mental and physical health coaching, if people are at work off work or returning to work, which is why we believe there will be continued momentum in the adoption of our services. This is also true in our EHS division where focus on accessible healthcare through health and productivity tools will continue to be required as the focus on accessed care continues to evolve.
Within the current economic conditions, the demand for healthcare services will continue to rise. Employers will continue to invest in healthcare for their employees and healthcare providers are dependent on tools to improve productivity and access to care. This is a strong tailwind for years to come and we are well positioned to take full advantage.
Looking at our employer healthcare offering, we are seeing strong momentum. Year-to-date through the third quarter, we have added $8.8 million in annual reoccurring revenue contracts across all our operating divisions. We continue to focus on winning business and executing on our strong and diversified pipeline and are confident in our team's ability to win new business.
We are expecting to realize the full revenue list from contract signed in 2022 into 2023. Contract wins in the quarter represented small, medium, and large organizations. They included multi-product, multi-year, iCBT, Medical Second Opinion, Mental Health Coach, and Employee and Family Assistance programs.
One of our key differentiators within the mental health support solutions is that we have fully integrated our proprietary mental health assessment tool Snapclarity, as well as iCBT, EFAP and Mental Health Coach into the offering. This will enable us to broaden the access to care while improving health outcomes.
The combined offering will result in a better cost per case and leading to a higher growth margin. Within the quarter there were notable contract wins across multiple geographies including large unions, government organizations, industrial companies, and financial services. Our commercial team secured a significant win with the teacher association for our second medical opinion product.
In the quarter, we saw a 33% increase in the number of opportunities in the pipeline. We believe that the current pipeline is aligned with our revenue expectations. Sun Life was the early adopter of our mental health navigation service. The Mental Health Coach product is proving its value in producing measurable health outcomes including an average of 2.8 week improvement in short term disability length, 21% fewer casual absence hours, and higher return to work.
This directly translates into lower disability costs, more productivity and employee engagement. This program has been rolling out in a phased approach to Sun Life customers and will now be available in January, 2023, as an add-on to an existing group benefit contract. We are also taking important steps to improve the quality of our revenue and prioritize generating more meaningful higher margin revenue versus just adding to the top line.
In the last two quarters, we have integrated our sales team and created a focus on national accounts. In the last two quarters, 50% of the new contracts were employer direct. These contracts have lower churn and multiple services therefore a higher lifetime value. We've also taken a critical eye to our contracts and started to engage in some purposeful churn from legacy low margin contracts that don't meet our margin expectations.
I would like to spend the last few minutes on our Digital Health Solutions division, which we refer to as the health and productivity tools for providers. This division's growth strategy is being developed by new leadership under Nathan Lane. Nathan is focused on extracting value and growth from our offering.
As an example, we have identified additional growth market segments with an idea for which offers consulting and creates access to healthcare through connecting systems. This division has started to see significant pipeline growth outside of government agencies to hospitals, clinics and care organizations. This is a large new addressable customer base beyond our traditional work with various federal and municipal governments.
VisionPros, we are expanding the offering to our employer customers and embedding it into other programs. We are reducing direct marketing spend and investing in ensuring a high reoccurring customer model and distribution partners. Our distribution partnership team recently signed a marketing partnership with Neo Financial to distribute VisionPros' products.
With the VisionPros product, we expect lower direct marketing expense by using these distributors to grow the pipeline. We will be launching an innovative prescription renewal products and glasses in Q1 2023. Benchmark continues its steady progress and is growing its revenue.
We are executing on our priorities and the results are starting to be realized through our financials. The management teams have developed KPIs that are evolving in order to deploy a continuous improvement approach to sales and profitability.
I'm going to pass it to John to discuss the other half of the equation, cost optimization and then our Q3 results. John?
John Plunkett
Thank you, Karen, and good morning everyone. We're taking a disciplined approach to profitability and taking meaningful action steps. Over the past quarter, we've been focused on moving the business towards profitability, prudent cash management and divestment of our non-core assets. We continue to work hard to identify cost savings and cost optimization opportunities within the business. Since the start of the third quarter, we identified and acted on 4 million in annualized cost savings.
During the third quarter we saw a 1.4 million decline in quarterly operational expenses compared to the second quarter of 2022. This is directly related to our actions in consolidating shared services, removing redundant costs and improving efficiencies since the start of the year. Despite the revenue decline from the conclusion of the COVID-19 testing contracts and the changes to the Ontario Health contract and their associated gross profit contributions. We were able to improve our adjusted EBITDA slightly this quarter.
We are expecting to see the final reduction in revenue in the fourth quarter from Ontario Health of approximately 1.5 million. However, believe this is the last material headwind facing the business as it relates to our client base. We're in the process of completing an additional 6 million in annualized cost reductions that we expect to see a portion of the benefit in our financials in the fourth quarter of 2022 with a full impact in Q1 2023.
These savings continue to be primarily driven by the work our team is doing integrating back end services. The pathway to profitability is becoming clear. However, we still have work to do. We are going to reach it by continued focused on cost efficiencies and success selling our integrated Health Solutions. The success against some of our larger sales opportunities will impact the timing of when we reach this important milestone.
During the quarter, our use of cash was 2.2 million and normalized for non-recurring expenditures and favorable changes in working capital it was 4.5 million. In the near-term, it's the most important measure of our operating performance. Improving cash flows along with the divestitures gives us the flexibility to grow our core business and reach profitability. Over the past two quarters, we've been very focused on improving the balance sheet and being prudent with cash management.
Subsequent to the quarter, we announced the sale of our BC clinics and Cloud Practice and our two BC pharmacies. In addition, we're also pursuing the sale of our Rxi business. The divestitures represent over $9 million in transaction value and provide non-dilutive capital without impacting our profitability, cash flow or the long-term potential of the Company. These divestitures enable us to invest in our core business. It reduces distraction for the management team, and it creates more of a pure play investable company. Overall, we are executing against the strategic priorities we identified as a company.
Turning to the financial performance in Q3. The results of our work and executing on our strategic priorities are starting to show up in lower cash used and a small improvement in adjusted EBITDA. However, we are still being impacted by headwinds such as the changes to the Ontario Health contract. We generated total revenue of 27.5 million compared to 28.9 million in Q3 of 2021, which represents a 5% year-over-year decline. Sequentially, revenue was down 2.5 million from the second quarter.
Enterprise Health Solutions contributed revenues of 21.8 million compared to 24.5 million in Q2. As expected during the quarter, there was an impact of 1.5 million lower revenue from the Ontario Health contract and 900,000 lower revenues from COVID-19 testing contracts, which concluded in the second quarter. The increase in revenues from new contracts sold in 2022 provides us a lift of approximately 600,000 in the third quarter in our employer Health Solutions Division. This was offset by some lower fee for service revenue and our disability management and assessment business in part due to the summer months.
Looking ahead to the fourth quarter, the full impact of the Ontario Health contract will be realized which will result in a reduction of 1.5 million in revenue. We expect that this will be offset by return to run rate in our disability management and assessment businesses and the contribution from new revenue sold in year. In 2023, we expect to see low double-digit growth based on current contract sales pipeline and projected churn. Digital Health Solutions generated revenue of 5.7 million in the quarter comparable with Q2. VisionPros continues to trail its historical performance; however, we remain focused on driving profitable revenue and expect to see gradual improvement in top line revenue.
Gross profit in the quarter was 34.5%. The increase in margin is a result of classifying our clinics and pharmacies division and Cloud Practice as held for sale. As our core business drives organic growth, we will see continued margin improvement. In the near-term, we are targeting mid 30% gross margin with expansion coming as more revenue shifts to our faster growing and more profitable parts of our EHS and DHS businesses and integration of our higher margin offerings. Adjusted EBITDA in the quarter was negative 3 million compared to negative 3.2 million in Q2. The improvement is directly related to our work on cost control offset by lower revenues.
We expect a modest improvement in the fourth quarter of 2022 as a result of continued cost saving efforts. As we see organic growth over the coming quarters and continued cost savings, we expect adjusted EBITA to improve. During the quarter, one-time costs were primarily related to severance, the sales process of the clinics and pharmacies division and some remaining integration costs from past acquisitions. We expect these costs to be similar in the fourth quarter, but continue a downward trend in early 2023.
This quarter, we recorded a substantial impairment charge to our goodwill and long-lived assets of 83.9 million. These are non-cash charges that reflect the value of assets today with current market conditions and interest rates and not the price paid at a time when industry-wide valuations were much higher. We had a sustained disconnect between our market capitalization and the caring value of our net assets, which triggered the impairment review. The impairment does not reflect a change in our positive outlook or expectations for CloudMD. The forecast used reflects a sustained low double-digit growth and our core business with improving operating margins.
We had approximately 27.5 million in cash on hand at the end of the third quarter. Cash from divestitures is not in this number. Combined with an improving cash use profile and a clear path to profitability, we are beginning to engage in determining the most effective capital deployment strategy for 2023.
With that, I'll pass the call back over to Karen.
Karen Adams
Thank you, John. We are creating a more fundamentally transparent, profitable, focused and ultimately investible company. I want to take a moment and thank the leadership team for all the efforts they are putting into transforming this company.
Our employees across North America are passionate about empowering healthier lives. These employees are focused on the ability to deliver excellence with accountability, collaboration, connected communication, and a lens on gross margin improvement, innovation, profitability, and increased revenue. Their commitment to our clients in shareholders to these initiatives is why we are seeing the improvement.
Our annual general meeting has been called and is scheduled for December 15, 2022. The circular for the meeting, which includes the nominees for election as directors will be mailed to shareholders and posted on SEDAR by November 24, 2022. The circular will profile the slate that we will be asking shareholders to elect. There will be a new Chair to be elected profiled in the circular.
Transformation of a company takes time, but we will continue to make significant improvements that are flowing through the financials. As a result, the quality of our revenue today is higher, our profitability forecasts and margins are improving, and our balance sheet gives us the flexibility to capitalize on our offerings within the employer healthcare segment and our health and productivity tool.
With that, we'll open up the floor to questions.
Question-and-Answer Session
Operator
And today's first question will come from Scott Schoenhaus with KeyBank. Please go ahead.
Scott Schoenhaus
I just wanted to get more color into your U.S. expansion. What you're seeing from the employer markets here in the states? And what EHS solutions are you seeing interest in the American market?
Karen Adams
Thanks Scott. Nice to hear your voice. So, on the U.S. side of our business, one of the main drivers for us in the MindBeacon acquisition was the ability to take the iCBT product offer and span it and create access to care. It is a large issue in the U.S. being able to get access to mental healthcare. So, the iCBT product launching at the end of this year will be instrumental in our ability to grow our health coaching product in the United States.
We have a business as you're aware of Harmony that does the mental health interventions in the U.S. that business is growing, we have a number of new contracts coming on board for 2023 that we are excited about. So, the employer Health Solutions division in the U.S. is primarily focused on the mental health and coaching product and the traditional counseling product.
Then from the DHS business, I would say the growth in the market segments there is a realization that the product specifically an idea for have an opportunity to be extended outside the traditional government contracts that they have secured and starting to look at ways of using the Connected Care, the interoperability process that we bought the patented interoperability process, we bought through idea for to sell to hospitals and other care organizations that even as a byproduct of COVID, the realization of this interconnectivity is important.
So, Nathan really has grabbed onto the product and started to help the team create a go-to-market strategy to expand outside of more, less traditional government contracts and into more direct organization. So I hope that answered your question.
Scott Schoenhaus
Can I just kind of squeeze in one follow-up? It's very clear, on the gross margin side, DHS and EHS will help expand as you move and grow that business. Just on the 6 million in cost savings you outlined on an annual run rate. Can you just help us walk through what you're targeting there on those cost savings exactly? Thanks.
Karen Adams
John will do that.
John Plunkett
No problem, Scott. So in terms of the cost savings, right, the majority have been identified at this point in time, and we're executing against the reductions and a good portion are already done at this point in time. We're looking at -- it's a broad category of costs, a good majority of them are in the SG&A. So, as you look at our shared services, infrastructure, some of our marketing spend, looking at real estate footprint, et cetera. So, it's across a broad bucket of costs within our indirect cost structure.
Operator
Thank you. One moment for our next question and that will come from the line of Rob Goff with Echelon Capital Markets. Please go ahead.
Rob Goff
Thank you very much and congratulations on the hard work behind the teams here. I know it's difficult.
Karen Adams
Thank you, Rob.
Rob Goff
And Karen, you had mentioned with respect to your sales pipeline, I believe that figure of 33% increase. Can you talk to that sales pipeline any particular areas of strength?
Karen Adams
Yes. So, I think the difference is, we have a commercial leader who has been in the sales realm for a long time and has developed a more disciplined approach to prospecting and to increasing the pipeline. Very fortunately that pipeline has some large initiatives in it. And it has some -- we call them more medium initiatives in it. So, it's well dispersed in that it's not heavily weighted in one direction. It does cover, I would say, multiple types of clients, and they are all the majority of the business in there is multi service business selling more than one product.
So that the two indicators we look at is pipeline and conversion. So we look at the pipeline and the conversion rate to be able to look at forecasting revenue. So is the pipeline sufficient enough to support the revenue expectations that we have for the coming quarters? And I can confidently say it, it does. And the second piece is the ability to continue to add to that pipeline. And that increase is a good indicator for us of productivity of the sales team. That's good thought to cover that.
Rob Goff
That's pretty good. And the natural offshoot of those. Could you then address how the pipeline gives you confidence in the double-digit growth expectation, and if you could talk there to with respect to headwind, tailwind that you were seeing within that organic growth profile?
Karen Adams
Sure, so I think, with the organic growth we're seeing from a momentum basis, a lot of in our mental health support solutions. I would say that the largest percentage of the pipeline and the new ad is in the combined mental health support solutions. And I think that that is indicative of the unique approach we have to the health coaching perspective prior to somebody going to counseling.
So not everybody's ready to go directly into counseling, and we call those, the utilization rate is sometimes impacted by people calling and then not showing up for an appointment. So, we're finding the Mental Health Coach that you will remember, was really adopted out of a relationship with Sun Life, where they were the first customer of the Mental Health Coach.
I think that unique approach to getting people support, whether they're at work or off work is starting to translate into the pipeline opportunity. And I would say, the Mental Health Coach is now being used in disability cases where an employee may be on disability relating to mental health concerns, and that Mental Health Coach's ability to engage the person on disability and convince them to go to treatment is resulting in people returning to work as part of the treatment plan. So, we're really seeing a lot of opportunity there.
I think, as I mentioned, in the scripts or in the narrative is that, the thing we're faced with is trying to overcome these large one-time mandates that, on the one hand, we're really proud of that when these customers were faced with COVID related issues, they turn to CloudMD or one of their subsidiaries to deliver the service during a time of health risk management. And those customers are customers of ours in other products. So you want to be there to serve them in these times.
But then those that large revenue coming to an end and a long time commitment with the customer, on the other product is overshadowing the growth perspective. So, that's why we're faced with constantly reviewing it. We do have some large sales opportunities in the pipeline, but as you can imagine they have a longer sales cycle to them. So one of the headwinds we've got is longer sales cycles on larger opportunities that take us longer to really recognize and convert.
Operator
Thank you. One moment for our next question and that will come from the line of Gabriel Leung with Beacon Securities. Please go ahead.
Gabriel Leung
I got a couple of questions to ask around the pipeline. Karen, are you able to disclose to us the size of the pipeline just in terms of from an ARR perspective, first off? And are you able to talk about whether or not some of these pipeline opportunities have risen from life work to directly as it relates to take up by its health?
Karen Adams
Okay, so let me answer your first question, which is our pipeline currently stands in and around just north of 50 million. I'm not sure that's meaningful in and of itself other than the fact for us it's a substantial number. And when we talk about pipeline, we talk about qualified pipeline, meaning that we are engaging with the customer in some sort of dialogue of moving them to our products and services. And that's important because the real -- the other pipeline is much larger in the prospects and the people that we're trying to engage.
I would say that we are seeing people convert from a number -- the market in the mental health support is made up of a handful of brand name providers. And given the fact that I think the number is just north of 90% of all employers have a group benefit around mental health. Everybody in the pipeline is probably with somebody now. I can't point to one specific competitor over another. What I can tell you is that the reasons customers are moving from one provider to another is access to care and the ability to see a counselor face-to-face is important for the employer. Not everybody wants to go the telemedicine virtual route.
And the second is this innovation and disruptiveness around the assessment Mental Health Coach and Physical Health Coach. And being able to not have a siloed program where the employer can confidently provide the program and know that we're going to take care of the individual regardless of what their issue is. They don't have to think. Do I call this for mental? Do I call this for physical? It's integrated. So, we're seeing it from a wide variety of competitors. Yes. I don't think it's -- I can't say definitively today it's from any one particular one, Gabriel.
Gabriel Leung
Got it. That's really helpful. And just a point of clarification, that $50 million pipeline number you quoted, is that an ARR figure or is that a total contract value figure?
Karen Adams
That's an ARR figure.
Gabriel Leung
Got it. Okay. That's helpful. And I'm also curious just in terms of metrics, you noted that year-to-date you're over $8 million in new bookings. Are you able to provide us with kind of a closed rate successful close rate figure on deals that you've bid on?
Karen Adams
So, that numbers across the whole organization unfortunately different revenue streams have different closing rates. So, as an example, the idea for pipeline can have a longer closing rate than some of the other revenue streams. But I think if you were to take it across the whole organization, I'd look at a closing rate somewhere between 30% to 40% depending, that's how I would look at it because it's the entire organization.
Gabriel Leung
Got it. No that's super helpful. One last question, I guess either for Karen or John, since John, you did mention as part of your preamble, obviously, as the improvements that continue, there's going to be a deeper dive look into capital allocation with the war chest. Just curious, if you guys had any initial thoughts on where you would prioritize, use a cash to help drive the best shareholder value to the Company? Is it share buyback? Is it payment, the debt, M&A? I'm just curious what the initial thoughts there.
John Plunkett
It's a great question Gabriel. And it's certainly something that we're engaging with at this point in time. What I'm going to do is I want to reserve providing comments at this point in time. I think we're going to have a much more meaningful update at the end of our Q4. We're obviously been very much focused on taking the cost out of the business, pushing towards profitability, divesting of our non-core assets.
I feel like we're turning the corner. Obviously, profitability is a key step for us. Stabilization from a cash flow perspective is a key step for us. Now, we're starting to look forward in terms of how we're going to deploy the capital that we have in the balance sheet. So, I'm going to reserve providing any sort of any guidance on that right now; however, I'm hopeful that we're going to have a more meaningful view to share at the end of Q4.
Operator
Thank you. One moment for our next question and that will come from the line of Prasath Pandurangan with Bloom Burton. Please go ahead.
Prasath Pandurangan
First, could you discuss the revenue profile of the EHS business in terms of the split between subscription case based revenues and their relative importance and driving your growth assumptions?
Karen Adams
Yes. So, Prasath, in terms of the split, I would say, approximately 50/50 between a subscription PEPM and a fee-for-service type offering.
Prasath Pandurangan
And when you look at your growth assumptions for the business, what are they based on, would it, again, I know this continue to be 50/50?
Karen Adams
No, I think that the revenue profile, you will see going forward will be a shift more towards the PEPM. I think that we have -- when we look at our business now, when you look at the Enterprise Health Solutions division, you look at the assessment business, which is independent medical, but on per case be the disability on health. The growing factor, I think, is going to be and it's just a relative size as well. It's going to be the health coaching, which consists of all of the mental health support services and all of the physical health support services.
And I think by the sheer nature of the newness as a percentage of shift, they will naturally start to grow. And in the PEPM, which is the beautiful thing for us is, the reoccurring revenue is builds a better revenue profile for the organization. But all of those customers have to buy the per case fee. So what we're going to be watching is the ability to secure the PEPM revenue, which has a longer lifetime client value even by the nature that they're multiyear, and then being able to add the per case fee on top is going to be the building the actual value of the customer should grow. So, I'm also watching value per customer grow, right? The total sense and then that gives us the lifetime value of the customer. Does that make sense?
Prasath Pandurangan
And then, I wanted to talk about the Sun Life contract itself and how has it changed recently, and it's changing in terms of the positioning of our client base?
Karen Adams
Yes. So, you may recall, there was a long period of time where we talked about a pilot, the pilot was the Sun Life employees. And I think Sun Life did it right. They piloted it with their employees, we got the results off the base business, which their employee base was a significant with north of 10,000 employees. So, it was a significant group as a control group to be able to prove out the theory. Then what they did is they rolled it out to a group of clients, not an insignificant group for us, over the subsequent periods.
And now, they're in a position with the data from the employee group and their client group to roll it out to their other client base on a -- it's not being embedded, it has to be sold by the Sun Life account executives, but now being rolled out in the context of lowering disability rates and improving employee engagement. So, there's a theory directly tied to the renewal process, where people may be worried about their disability premiums rising, let's face it, there continues to be an increase in disability cases. Especially, we will see this in tough economic times where people will go on disability, so it becomes a significant tool.
Prasath Pandurangan
And then finally, just to confirm the 8.8 million ARR when they're all within the continuing operations, right?
Karen Adams
Yes, that's correct.
Operator
Thank you. One moment for our next and we do have a follow-up question from Rob Goff with Echelon Capital Markets. Please go ahead.
Rob Goff
You mentioned a focus on quality revenues and you also mentioned with respect to VisionPro working with distribution partners. Can you talk to any changes or modifications in the VisionPro plan? And when headwinds become tailwinds?
Karen Adams
Yes. So, I'll start in and maybe John can jump in. But I think on the VisionPros contact lens business, it's a direct-to-consumer business. It's a highly competitive business. It's a very transactional business. And decisions to buy are based on product costs. Fastest way to grow top line revenue is to discount the product and grow your top line revenue. I think we can all agree there was a time where that was rewarded in the marketplace.
We do not feel it is right time for us to be using cash flow to buy revenue so significantly discounting the product. So, our preference is to focus on those who have purchased in the past, engaging them and getting them to be recurring clients. So the marketing spend is more towards that group. That's the first thing I would say.
The second thing is we are -- every group benefit provider offers vision care as part of their group benefit plan. And so people, people like to buy things, it's in our human nature to want to buy things. So by integrating key into our -- by integrating VisionPros into the key platform, we're confident that people are going to come there as employees, looking for their educational resources, perhaps their EAP and have the ability to buy contact lenses.
That opens up what we call -- we have a partnership team now, who is responsible for going out and looking at non-traditional partnerships to have the distribution of the contact lenses through those partnerships. So that they are properly distributing other products, it's the marketplace concept you're seeing in a lot of different avenues, and then affording us the opportunity to lower our CAC costs because we're picking back on another partnership.
So, they have a longer sales cycle time to them, obviously. But we are seeing some traction in the interest level from some non-traditional partnerships. So, stay tuned for more on that. I would say in Q4. With the quality of revenue comment, I think that we want to maintain a gross margin that we're comfortable with and we want to maintain a overall contribution to profit that we're comfortable with.
And so that means making some choices on the especially in the contact lens business, the price is the price that we get from the distributor and then we then we sell to the consumer. We want to make some really good choices here about that, the acquisition cost of that customer and how we go about doing it.
And we're going to trade right now quality of revenue to become cash flow neutral in that business so that we are preserving our capital allocation for things that have overall higher momentum growth in the organization and can grow our growth margin and frankly translates into shareholder value.
Because of the transactional nature of VisionPros and the up and down of the sales, like in that business, there's a lot of what they term one and done. People come, they buy based on price and they go away and they never come back again. That's not the business that CloudMD is looking to acquire.
We're looking to build a relationship with individuals who engage in our service and have an ongoing relationship with that individual. And that's the premise in VisionPros we want to have an ongoing relationship with that person for their contact lenses, for their mental health, for their physical health. And when they go on disability, we'll help them there too. So it's more of a holistic way of servicing that individual.
So Rob, I think that was very long answer to your question.
Operator
Thank you. I'm showing no further questions at this time. Thank you all for participating. This concludes today's conference call. You may disconnect.
StockpickerCAPC
1 year ago
CloudMD Reports Third Quarter 2022 Financial Performance.
Source
https://finance.yahoo.com/news/cloudmd-reports-third-quarter-2022-221200015.html
November 14, 2022
- Q3 2022 revenue from continuing operations of $27.5 million, which does not include revenue from its Clinics & Pharmacies Division or Cloud Practice which are classified as discontinuing operations.
- Q3 2022 gross margin of 34.5% compared to 31% in Q2 2022, reflective of the higher margins of CloudMD’s continuing operations.
- Q3 2022 Adjusted EBITDA loss of $3.0 million.
- Cash and cash equivalents were $27.5 million at the end of the quarter which does not include proceeds from divestitures announced subsequent to quarter end.
- Through Q3 2022 CloudMD has signed multi-year contracts contributing to its organic growth and annual recurring revenue of $8.8 million, representing continued progress in growing its base of high-quality recurring revenue.
- During the third quarter the Company identified and actioned approximately $4 million of cost savings, a significant portion being recognized in the quarter. Subsequent to quarter end, CloudMD identified an additional $6 million of annualized cost optimization and savings with full run-rate to be recognized in early 2023.
- Recorded a non-cash impairment charge of $83.9 million.
CloudMD Software & Services Inc. announced its financial results for the third quarter ended September 30, 2022. All financial information is presented in Canadian dollars unless otherwise indicated.
Karen Adams, CEO of CloudMD commented,
“We are strengthening the business by focusing on profitability through sales of higher gross margin, recurring revenue, multi-product contracts. We are restructuring our business resulting in the ability to deliver prudent expense and cash management. We are pleased with our increasing customer base, specifically in Mental Health Support Solutions. Our business model across EHS and DHS is focused on our ability to support individuals where they are on their health journey. Our continued organic growth in our mental and physical health services reinforces this model and the need for managing health through navigation and coaching. Our financial performance in the period was impacted by the end of one-time mandates and COVID related government contracts. This overshadowed the growth and resilience of our recurring revenue core business. The Management team is committed to new client adoption and improved financial controls.”
John Plunkett, CFO of CloudMD commented,
“We’ve set multiple strategic priorities for the Company to reach profitability. We are driving organic revenue growth while eliminating costs from the business. In the third quarter, we saw our use of cash reduce significantly compared to the previous quarter. We’ve identified an additional $6 million in total cost savings that we will begin to realize in the fourth quarter, with the full run-rate expected in early 2023. Subsequent to quarter end, we have improved our balance sheet from our divestiture activities and are working hard to move CloudMD to profitability. This demonstrates our disciplined and focused approach to growth within our core businesses.”
Third Quarter 2022 Financial Highlights
- Q3 2022 revenue from continuing operations was $27.5 million, compared to $28.9 million in Q3 2021. Third quarter revenue does not include revenue generated from the Clinics & Pharmacies division as well as Cloud Practice, which are classified as discontinuing operations. Including discontinued operations, revenue in the third quarter would be $38.2 million, which was impacted by the end of one-time Covid-19 testing contracts, changes to the Ontario Health contract, as well as lower Vision Pros revenue.
- Q3 2022 gross profit margin1 was 34.5% compared to 31.0% in Q2 2022 and 36.1% in the third quarter of 2021. The margin improvement from Q2 to Q3 reflects the Company’s strategy to divest non-core assets, which have lower overall gross profit margins.
- Net comprehensive loss attributable to equity holders of the Company in Q3 2022 was $94.8 million or $0.32 per share, compared to a loss of $5.8 million or $0.02 per share in Q3 2021. The larger loss per share was driven by an $84 million impairment of goodwill.
- Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”)2 was negative $3.0 million Q3 2022, compared to negative $3.2 million in Q2 2022 and Adjusted EBITDA of $0.9 million in Q3 2021. The lower revenues were offset by an improving overall cost structure.
- Cash and cash equivalents were $27.5 million as of September 30, 2022, compared to $45.1 million on December 31, 2021. Use of cash in the third quarter was $2.2 million, a significant improvement from the use of cash in the second quarter of 2022.
- During the third quarter, CloudMD experienced a triggering event due to sustained decreases in the Company’s share price, prompting an accounting related impairment assessment of goodwill and long-lived intangible assets. As a result of the assessment, the Company recorded a non-cash accounting impairment charge of $83.9 million in the third quarter of 2022. The assumptions used in the impairment analysis included discount rates that reflect higher interest rates, market volatility and the company risk premium compared to our valuation as at December 31, 2021. The impairment does not reflect a change in the Company’s outlook which is focused on growth, expanding profitability and cash flow.
Third Quarter & Subsequent Corporate Highlights
- On July 13, 2022, the Company added telemedicine services for primary care health navigation to Kii personalized & connected care offering. The services are led by nurses and nurse practitioners which provide fast access to a wide variety of primary care services and treatments and overall health and wellness support for employees and their family members, all from one connected offering.
- On July 22, 2022, the Company announced that it finalized the review and settlement of VisionPros, its online vision care platform. The settlement was reached with the former owners of VisionPros and reduces the purchase consideration paid for VisionPros by $12.6 million and also removes any future earnout payments.
- On July 25, 2022, the Company sold its 51% share ownership in West Mississauga Medical Ltd. (“West Mississauga”), which was acquired in February 2021.
- On August 11, 2022, the Company appointed Karen Adams as Chief Executive Officer and John Plunkett as Chief Financial Officer.
- On August 17, 2022, the Company provided a business update on customer momentum and the TAiCBT Ontario Government contract.
- On October 11, 2022, the Company announced the divestment of its primary care clinics and Cloud Practice to WELL Health for approximately $5.75 million in cash. CloudMD will retain ownership of its online patient portal, MyHealthAccess, and will retain the right (under a license granted by WELL at closing of the Transaction) to use Juno EMR, which have both been integrated into its Kii Personalized & Connected Care offering. The transaction subsequently closed on November 2, 2022.
- On October 31, 2022, the Company announced the sale of its two brick and mortar Pharmacies to Neighbourly Pharmacy Inc. for approximately $3.8 million in cash. The transaction is subject to satisfying closing conditions, and closing is expected to occur in the fourth quarter of 2022.
Outlook
The Company continues to deliver on the value proposition of offering comprehensive solutions that create access to care, leading to better health outcomes. Through its team-based, patient-centric approach, CloudMD provides a connected platform for patients, healthcare practitioners, and enterprise clients to address whole-person, coordinated care.
CloudMD remains focused on its strategic priorities for the remainder of the year
- (1) through its strong sales pipeline, continuing to diversify and grow its client base within its EHS and DHS divisions by direct sales to new customers, enhancing relationships with channel partners and cross selling its established suite of products
(2) driving continuous operational excellence and improvement across the organization to improve productivity, product quality and consistency, and lower customer acquisition costs;
(3) delivering a diligent path to profitable financial sustainability and focus on delivering consistent financial performance across all divisions of the organization; and
(4) continuing to develop corporate governance to support the Company’s growth.
Selected Financial Information
Please read the FULL REPORT at:
https://finance.yahoo.com/news/cloudmd-reports-third-quarter-2022-221200015.html
StockpickerCAPC
2 years ago
CloudMD’s TAiCBT Results in Significant Improvement for PTSD Across Symptom Severity Levels, Trauma Types and Demographics.
Source
https://finance.yahoo.com/news/cloudmd-taicbt-results-significant-improvement-113000002.html
September 15, 2022
Recent research study demonstrates that the majority of clients experience reliable improvement in symptoms after just two months of treatment.
CloudMD Software & Services Inc. today released a research study that demonstrates the positive outcome results from using its therapist-led internet based cognitive behavioural therapy (TAiCBT) for individuals suffering from posttraumatic stress disorder (PTSD) across symptom severity levels, trauma types and demographics.
PTSD is a debilitating condition often exacerbated by long wait times and lack of access to effective treatment. The first line psychological treatments for PTSD are rooted in principles of cognitive behavioural therapy (CBT). Digital delivery of these therapies represents an opportunity to improve access to evidence-based treatment that can reduce symptoms of posttraumatic stress.
CloudMD recently completed its study to determine the effectiveness of its TAiCBT for posttraumatic stress and examine how pre-treatment client characteristics are related to key outcomes. The sample consisted of individuals with histories of traumas ranging from experiencing sexual assault to observing work-related suffering; this enabled researchers to also explore the relationship between these diverse histories and treatment outcomes.
Highlights of Results:
- Between January 2020 and June 2022, 4,236 people consented to treatment for symptoms of posttraumatic stress, and 3,689 of those completed at least one post assessment outcome measure.
- Clients reported significant symptoms: 96% reported symptoms that exceeded the threshold for being a clinical case and 68% also reported serious symptoms of depression and anxiety, as well as impaired functioning in day-to-day activities.
- Clients reported a range of trauma histories: 68% reported ‘other unwanted or uncomfortable sexual experience’, 59% reported physical assault, 56% reported sexual assault, 36% reported a transportation accident, and 54% reported ‘other very stressful event’.
- When broken down by gender, unwanted sexual experiences and assaults (both physical and sexual) were the most reported experiences for women. For men, the most reported traumatic experiences were physical assaults, other stressful experiences or a transportation accident.
- On average, clients started treatment within 7 calendar days of submitting an assessment, with 71% of treatment content completed outside of standard work hours.
- The CloudMD treatment had a large and statistically significant effect on clients’ posttraumatic stress symptoms and a moderate effect on symptoms of depression, anxiety and functional impairment.
- Most clients achieved significant symptom reduction with the percent increasing as clients complete more treatment content: 61% of clients who engage with the trauma-focused content experience a reliable improvement in their symptoms, and 77% who engage with the consolidation content experience reliable improvement with an average reduction of 23 points on the PTSD Checklist for DSM-5.
- Treatment was effective for the full range of symptom scores. Clients with higher baseline trauma symptom scores were more likely to achieve reliable symptom improvement than those with lower scores.
- All client types were equally likely to achieve reliable symptom improvement: demographic characteristics and trauma type were not predictive of engagement with treatment or of symptom change.
Most studies of TAiCBT for PTSD focus on specific subsets of the population, such as groups that are assumed to have employment-related exposure to trauma, including members of the military (or veterans), first-line responders (EMTs, ER physicians), or law enforcement (Straud et al 2019; Stephanopoulou et al 2020). Given that interpersonal trauma – such as physical and sexual assault – accounts for a large proportion of PTSD cases (Bedoya et al., 2020), research on the effectiveness of TAiCBT for posttraumatic stress would benefit from expanding the field of study to include broader populations, which is exactly what this study does.
In addition to evaluating the efficacy of CloudMD’s posttraumatic stress treatment protocol to determine whether accessible, low-intensity treatment options would be effective for posttraumatic stress across the full spectrum of symptom severity, CloudMD’s researchers also explored the effect of sample-specific factors on treatment outcomes. Researchers examined whether pre-treatment client characteristics such as gender, age, and trauma type, predicted differential response to treatment.
“This study solidifies the importance of offering therapy for posttraumatic stress alongside depression and anxiety therapy to complement care and provide truly effective treatment for anyone needing trauma support, not only the first-responder community,” shared Karen Adams, President and CEO, CloudMD. “Our data allows for better understanding of the conditions and the impact of targeted treatments. This helps employers make informed choices when they evaluate workplace mental health investments by equipping them with critical insights,” she continued.
The study demonstrates the basic effectiveness of CloudMD’s TAiCBT program for posttraumatic stress in a real-world heterogenous sample of help-seeking individuals. More than half of clients experienced significant reduction in trauma symptoms; 38% of clients experienced reductions in depression and anxiety; and 28% of clients reported improvements in day-to-day functioning. The program led to reductions in symptoms for clients across the range of symptom severity. While the longer a client spent engaged in treatment, the greater their likelihood of achieving symptom improvement, many clients who did not complete all phases of therapy experienced reliable symptom improvement. These results indicate that offering low-intensity treatment for posttraumatic stress is a viable and frequently sufficient entry point to care.
“Our TAiCBT program enables us to break down barriers to evidence-based care that many individuals experience, such as lack of accessible or specific treatments. We’ve been able to successfully treat clients with varying severity of post traumatic symptoms,” said Dr. Leorra Newman, Clinical Content Lead, CloudMD. “This study highlights that targeting post traumatic symptoms directly can lead to associated improvements in levels of anxiety, depression, and functioning - making a true difference in our clients’ lives,” Newman added.
Accessing evidence-based mental health treatment in a timely manner is challenging, taking 25 business days in Canada to access typical community-based services, with wait times for specific conditions like PTSD reaching approximately two years. This lack of accessibility is a significant problem for individuals, their families, employers and many other parts of society. CloudMD provides timely access to TAiCBT within days of a completed assessment, accelerating access, providing support outside regular office hours, and alleviating demand on traditional pathways.
Furthermore, the effectiveness of CloudMD’s programs showcases the value of selecting evidence-based mental health treatment for HR leaders investing in the well-being of their staff. As shown in this study, CloudMD has a proven, highly effective treatment for people with diverse histories of trauma and demographic characteristics.
White Paper & Webinar Details
To access the full study, please click here:
https://3927801.fs1.hubspotusercontent-na1.net/hubfs/3927801/Better%20Outcomes%20Initiative%20White%20Papers/Effective%20TAiCBT%20for%20Posttraumatic%20Stress%20-%20Whitepaper.pdf
CloudMD will be hosting a webinar to discuss the research on September 28th, 2022 at 9am PT/12pm ET as part of its Better Outcomes Initiative. Individuals can register for it here:
http://3927801.hs-sites.com/en/better-outcomes-ptsd
StockpickerCAPC
2 years ago
CloudMD Reports Q2 2022 Financial Performance; New Leadership Enforces Strategic Priorities to Drive Further Cost Optimization and Profitability.
Source
https://finance.yahoo.com/news/cloudmd-reports-q2-2022-financial-210300209.html
August 22, 2022
- Q2 2022 revenue of $40.3 million, an increase of 157% over the same period in 2021.
- Q2 2022 gross margin of 31.0% compared to 35.5% in Q2 2021.
- Q2 2022 Adjusted EBITDA loss of $3.2 million compared to a loss of $0.6 million in Q2 2021. Net loss of $44.2 million during Q2 2022 driven by $33.0 million non-cash impairment charge, compared to loss of $6.6 million in Q2 2021.
- Strategic priorities include driving organic growth, further cost optimization and financial stability and prudent cash management.
- Strong customer momentum in core Enterprise Health Solutions division with several large multi-year contract wins representing $4.2 million in ARR closed in the second quarter.
- New contracts represent over 350 new customers within the quarter, adding to the network of 7,200 loyal clients that trust CloudMD to provide services to employees and family members.
- Added over 440,000 net new lives year to date, including those new contracts scheduled to launch in Q3 and Q4.
- Additional $4 million annualized savings identified from continued organizational re-design and integration to be realized starting in the third quarter.
CloudMD Software & Services Inc. announced its financial results for the second quarter ended June 30, 2022. All financial information is presented in Canadian dollars unless otherwise indicated.
“Our Q2 results reflect the strength of our core Enterprise Health Solutions (“EHS”) business in the face of headwinds and distractions from our non-core business and overhang from previously made acquisitions. There is an incredible opportunity for our EHS division as industry trends converge with our differentiated product offering. We are taking the necessary steps to enable the performance of our core business to shine,” said Karen Adams, CEO of CloudMD. We will continue to execute on our strategic priorities of driving additional organic growth, integrating and optimizing our cost structure, and achieving financial sustainability and profitability with an emphasis on prudent cash management.”
John Plunkett, CFO of CloudMD, added, “As a team, we are focused on reaching profitability and positive operating cash flow. We are taking steps across the organization to align costs with each division’s revenue and to divest non-core assets which will provide some near-term capital. The team has made progress in cleaning up our cost structure, balance sheet, and outstanding issues from past transactions. We will continue to focus on further optimization for the remainder of the year. There is work to be done, but I’m encouraged by the steps taken to date and am pleased with the organic growth that our EHS business is starting to generate which will provide positive contributions in the second half of the year.”
Second Quarter 2022 Financial Highlights
- Q2 2022 revenue was $40.3 million, compared to $41.4 million in Q1 2022 and $15.7 million in Q2 2021. The growth was driven by the five acquisitions completed since the start of the second quarter of 2021, coupled with organic growth and customer momentum within the EHS division. The Company’s Q2 revenue was impacted by one-time COVID contracts ending, which are expected to be replaced moving forward.
- Q2 2022 gross profit margin was 31.0% compared to 32.5% Q1 2022 and 35.5% in the second quarter of 2021. The lower gross profit margin percentage was due to shift in revenue mix and performance in the IDYA4 business which is expected to return to a normal level in the third quarter.
- Adjusted EBITDA was negative $3.2 million in Q2 2022, compared to negative $1.6 million in Q1 2022 and a loss of $0.6 million in Q2 2021. Net loss in Q2 2022 was $44.2 million or $0.15 per share, compared to a loss of $6.6 million or $0.03 per share in Q2 2021. The larger loss per share was driven by a $33.0 million impairment of goodwill and $5.5 million of other non-recurring one-time costs.
- Cash and cash equivalents were $29.7 million as of June 30, 2022, compared to $45.1 million on December 31, 2021. Cash outflows in the second quarter were $17.2 million, which was unusually high for the Company. The normalized cash outflows were $6.9 million. During the quarter the Company incurred expenses related to restructuring costs, professional fees, legal and settlements from past acquisitions.
Second Quarter & Subsequent Corporate Highlights
- On May 26, 2022, the Company announced the launch of Kii, Personalized & Connected Care, the new brand identity for its integrated, health services offering. Kii, is the Company’s flagship offering which integrates several of its best-in-class technologies and services into one exceptional, connected, and personalized experience for employees that will continue to disrupt the traditional employer healthcare industry.
- On June 6, 2022, the Company reported the results of an evidence-based study proving iCBT as a highly effective treatment for depression and anxiety. Over 5,000 individuals with clinical levels of depression and comorbid anxiety who completed CloudMD’s Therapist Assisted iCBT program experienced reliable symptom improvement.
- On June 15, 2022, the Company provided an update on strategic priorities to drive organic growth through new sales and cross selling. It also appointed senior customer success and sales leadership to accelerate expansion and growth.
- On July 13, 2022, the Company added telemedicine services for primary care health navigation to Kii personalized & connected care offering. The services are led by nurses and nurse practitioners which provide fast access to a wide variety of primary care services and treatments and overall health and wellness support for employees and their family members, all from one connected offering.
- On July 22, 2022, the Company announced that it finalized the review and settlement of VisionPros, its online vision care platform. The settlement was reached with the former owners of VisionPros and reduces the purchase consideration paid for VisionPros by $12.6 million and also removes any future earnout payments. The Company has received $3.3 million in cash from the settlement in the third quarter of 2022.
- On August 11, 2022, the Company appointed Karen Adams as Chief Executive Officer and John Plunkett as Chief Financial Officer.
- On August 17, 2022, the Company provided a business update on customer momentum and the TAiCBT Ontario Government contract. In the second quarter, CloudMD signed several multi-year contracts which will contribute new organic annual recurring revenue (“ARR”) of $4.2 million. CloudMD’s TAiCBT provider, MindBeacon, was one of two companies chosen to provide TAiCBT services for Ontario citizens under the new Ontario Health Contract. This new contract represents a reduction of approximately 85% in the number of guided iCBT cases that will be funded but is expected to expand over time. The Company is currently in discussions with the Government on how to continue to expand access to mental health services for all Ontarians.
- To offset the revenue impact of Ontario Health, CloudMD is in the process of eliminating the direct delivery costs associated with providing the services, as well as identifying further cost synergies to offset the gross contribution from the contract. Subsequent to quarter end, CloudMD has identified an additional $4.0 million annualized of optimization cost savings from continued organizational re-design and integration. This is in addition to the direct delivery cost elimination.
Outlook
The Company continues to deliver on the value proposition of offering comprehensive solutions that create access to care, leading to better health outcomes. Through its team-based, patient-centric approach, CloudMD provides a connected platform for patients, healthcare practitioners, and enterprise clients to address whole-person, coordinated care.
CloudMD remains focused on its strategic priorities for the remainder of the year: (1) through its strong sales pipeline, continuing to diversify and grow its client base within its EHS and DHS divisions by direct sales to new customers, enhancing relationships with channel partners and cross selling its established suite of products; (2) driving continuous operational excellence and improvement across the organization to improve productivity, product quality and consistency, and lower customer acquisition costs; (3) delivering a diligent path to profitable financial sustainability and focus on delivering consistent financial performance across all divisions of the organization; and (4) continuing to develop the Company’s corporate governance to support the it’s growth.
For the remainder of the year, the Company will remain focused on driving profit from the core business, aligning costs to its revenue profile, and identifying further cost optimization to improve Adjusted EBITDA and gross margins. The Company is working on divesting its Clinics and Pharmacies business which will provide some near-term capital. It expects to provide an update on progress next month.
CloudMD has a robust sales pipeline and will continue to drive organic growth and client adoption, through direct sales to new clients, expanding distribution partners and cross selling its connected suite of products. The Company expects to achieve consistent double digit organic growth rates in its core business moving forward, as previously guided.
Selected Financial Information
Please read the FULL REPORT at:
https://finance.yahoo.com/news/cloudmd-reports-q2-2022-financial-210300209.html
StockpickerCAPC
2 years ago
CloudMD Provides Business Update on Customer Momentum.
Source
https://finance.yahoo.com/news/cloudmd-provides-business-customer-momentum-113000622.html?guccounter=1
August 17, 2022
CloudMD Software & Services Inc. is pleased to provide a business update on its customer momentum and contract wins within its core Enterprise Health Solutions (“EHS”) division, and an update on the Ontario Health Therapist Assisted Internet-Based Cognitive Behavioral Therapy (“TAiCBT”) support service program.
EHS Customer Momentum
CloudMD continues to drive customer momentum, and new contract wins within its EHS division. The Company’s organic growth strategy is focused on three key areas, including selling direct to new organizations, expanding channel partners and cross selling its established suite of products.
In the second quarter, CloudMD signed several multi-year contracts which will contribute new organic annual recurring revenue (“ARR”) of $4.2 million, coming from all channels of its growth strategy. Additionally, these contract wins reflect a diverse portfolio of Government, employers, and insurers, further expanding CloudMD’s B2B/B2G client base and payor network.
One specific example is a significant new contract with the Christian Labour Association of Canada (CLAC), a large National labour union representing over 60,000 workers. Through HumanaCare, its Employee and Family Assistance Program (“EFAP”) provider, CloudMD won a competitive process to provide EFAP services to CLAC members covered by one of their Health & Welfare Trusts beginning in September 2022.
Other recent notable client wins include:
- Leading national US insurance company.
- Large transportation manufacturer.
- Leading national telecommunications provider.
- Multiple regional health networks.
- Large financial services firms.
- Distribution partnership with North American group benefit provider.
New TAiCBT Ontario Government Contract
After a competitive process, CloudMD’s TAiCBT provider, MindBeacon, has been one of two companies chosen to provide TAiCBT services for Ontario citizens under the new Ontario Health Contract. The two-year contract has been awarded for the provision of TAiCBT support services to be integrated into the Ontario Structured Psychotherapy Program) starting this fall. Details of the contract have been made publicly available on the procurement website MERX.
The program is expected to expand over time, based on the growing need for proactive mental health supports. Compared to the previous two-year COVID Response Program, which the Government is winding down as anticipated, this new contract represents a reduction of approximately 85% in the number of guided iCBT cases that will be funded.
To offset the revenue impact, CloudMD is in the process of eliminating the direct delivery costs associated with providing the services, as well as identifying further cost synergies to offset the gross contribution from the contract. CloudMD has already implemented several of these initiatives and will continue to take the necessary steps to right-size its cost structure related to the program accordingly. CloudMD continues to engage in discussions with the Ontario Government on how to continue to expand access to mental health services for all Ontarians.
Furthermore, CloudMD has integrated its TAiCBT support service into its Kii platform and is delivering it as part of its overall Mental Health Support Solutions (“MHSS”) to diversify its network of private and public clients. The Company remains confident in its TAiCBT program, which coupled with MHSS will drive further growth and margin expansion over time.
“The strong customer adoption of our offerings is attributed to the execution of our growth strategy and unique product offering. This growth is partially offset by the end of one-time contracts. CloudMD was one of only two companies chosen by the Ontario Government to provide mental health services under its new contract because of our industry leading TAiCBT’s ability to provide positive, evidence-based health outcomes. We are in continuous dialogue with the Government on how we can improve access, as we have a shared understanding of the importance of mental health support,” said President and CEO Karen Adams. “The Company remains focused on driving organic growth through direct sales to new clients, leveraging existing distribution partners and cross-selling to our current client portfolio. The client wins representing $4.2 million in ARR is a testament to the success of our strategy and our key differentiators of providing personalized care and valuable health data and outcomes. I look forward to providing more details on the progress we’ve made on our Q2 conference call later this month.”
About CloudMD Software & Services
CloudMD is transforming the delivery of healthcare using technology and by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging healthcare technology, the Company is building one, connected platform that addresses all points of a patient’s healthcare journey and provides better access to care and improved outcomes. Through CloudMD’s proprietary technology, the Company delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, healthcare navigation, educational resources, and artificial intelligence (AI). CloudMD’s business is separated into three main divisions: Clinics and Pharmacies, Digital Solution and Enterprise Health Solutions, the Company’s fastest growing division. CloudMD’s Enterprise Health Solutions Division has built a leading employer healthcare solutions, including its Comprehensive Integrated Health Services Platform, which offers one comprehensive, digitally connected platform for educational institutions, corporations, insurers, and advisors to better manage the health and wellness of their students, employees, and customers.
CloudMD currently services a direct ecosystem of over 5,700 clinicians including, 1,800+ mental health practitioners, 1,600+ allied health professionals, 1,400+ doctors and nurses and covers 12 million individual lives across North America.
For more information visit:
https://investors.cloudmd.ca/
ON BEHALF OF THE BOARD OF DIRECTORS
“Karen Adams”
Chief Executive Officer
FOR ADDITIONAL INFORMATION, CONTACT:
Julia Becker
VP, Investor Relations
julia@cloudmd.ca
(604) 785-0850
StockpickerCAPC
2 years ago
CloudMD Adds Telemedicine Services for Primary Care Health Navigation to Kii Personalized & Connected Care Offering.
Source
https://finance.yahoo.com/news/cloudmd-adds-telemedicine-services-primary-113000775.html
July 13, 2022
Services support the rising comorbidity concerns as individuals with physical health issues are at a much greater risk of having corresponding mental health problems.
- Led by nurses and nurse practitioners which provide fast access to a wide variety of primary care services and treatments and overall health and wellness support for employees and their family members, all from one connected offering.
- Clinical, evidence-based programs deliver engagement and education on healthcare options with proven outcomes that have high client satisfaction.
- Optimizes employer healthcare spending for primary care services, increases return on investment and improves healthcare outcomes by providing whole-person care for employees dealing with both mental and physical health issues.
- Supports workplace stability as employers foster healthy work environments and investment in human capital management to maintain productivity.
CloudMD Software & Services Inc., a healthcare technology and innovative health services company transforming the delivery of care, is excited to announce that it has launched a national telemedicine and physical health coaching service as part of its Kii Personalized & Connected Care (“Kii”) offering. Kii, the Company’s flagship employer health and wellness solution, integrates several of its best-in-class technologies and services into one exceptional, connected, and personalized experience.
The new telemedicine medical care program provides a personalized treatment plan led by nurses and nurse practitioners and supported by primary care doctors and specialists. The nurses and nurse practitioners are trained to deliver comprehensive initial medical assessments, psychosocial healthcare support and treatment for most primary and mental healthcare issues. They act as the first point of contact for referrals to specialists and other important services offered within Kii, to help guide individuals through their personalized healthcare journey.
Karen Adams, President & Interim CEO of CloudMD commented,
“Employers are faced with unprecedented times and are prioritizing healthy workplaces and increased employee productivity. Employers need the confidence that their healthcare spend on mental and physical health benefits is outcome-focused, comprehensive and designed to foster a healthy work environment. When required, we can connect with publicly funded medical practitioners, including primary care and specialists, to help optimize spend and connect employees with the full spectrum of care. In addition, our programs are seeing high adoption rates and engagement, resulting in higher utilization and better healthcare outcomes. We create access to mental and physical health care while prioritizing resiliency, productivity, and peace of mind.”
This solution is delivered through multi-modalities and combines primary care, specialists, and personalized health coaching. Historically, CloudMD has only offered similar telemedicine services direct to consumers in BC and Ontario. As part of its holistic employer healthcare offering, these services will now be available nationwide through 24/7 digital and telephone options to employees and their family members. The telemedicine services integrated into Kii complements and supports the Company’s health coach and navigation services and ensures access to important and often simultaneous treatment of physical and mental health issues.
CloudMD’s mental health coach program has already shown very positive results with 86% usage and 98% satisfaction rates, and the Company expects similar results across the spectrum of primary care.
Employers who choose CloudMD’s telemedicine services will receive an evidenced-based, clinical program that supports and assists individuals in:
- Breaking down barriers to care
- Remedy immediate concerns as they emerge
- Health education across the continuum of care from prevention to treatment
- Psychosocial support
The feedback from clients is that they want a single vendor and platform to treat their employees. Kii offers the ability to manage the entire continuum of care for mental and physical health issues, ranging from prevention to treatment to return to function, from one connected offering. Employers can depend on CloudMD to have a deep understanding of the workplace healthcare environment, and health benefits available to employees and focus on personalized engagement that ensures access to care while prioritizing return to function.
About CloudMD Software & Services
CloudMD is transforming the delivery of healthcare using technology and by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging healthcare technology, the Company is building one, connected platform that addresses all points of a patient’s healthcare journey and provides better access to care and improved outcomes. Through CloudMD’s proprietary technology, the Company delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, healthcare navigation, educational resources, and artificial intelligence (AI). CloudMD’s business is separated into three main divisions: Clinics and Pharmacies, Digital Solution and Enterprise Health Solutions, the Company’s fastest growing division. CloudMD’s Enterprise Health Solutions Division has built a leading employer healthcare solution, including its Comprehensive Integrated Health Services Platform, which offers one comprehensive, digitally connected platform for educational institutions, corporations, insurers, and advisors to better manage the health and wellness of their students, employees, and customers.
CloudMD currently services a direct ecosystem of over 5,700 clinicians including, 1,800+ mental health practitioners, 1,600+ allied health professionals, 1,400+ doctors and nurses and covers 12 million individual lives across North America. For more information visit:
https://investors.cloudmd.ca/
ON BEHALF OF THE BOARD OF DIRECTORS
“Karen Adams”
Interim Chief Executive Officer
FOR ADDITIONAL INFORMATION, CONTACT:
Julia Becker
VP, Investor Relations
julia@cloudmd.ca
(604) 785-0850
StockpickerCAPC
2 years ago
CloudMD Provides Update on Strategic Priorities to Drive Organic Growth Through New Sales and Cross Selling.
Source
https://finance.yahoo.com/news/cloudmd-provides-strategic-priorities-drive-113000249.html
Wed, June 15, 2022
Adds senior customer success and sales leadership to accelerate expansion and growth.
CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF, Frankfurt: 6PH), a healthcare technology and innovative health services company transforming the delivery of care, is pleased to provide an update on the progress the Company has made to drive organic growth through new contracts and cross selling to existing customers as well as establishing the framework and organizational structure for continued commercial success.
CloudMD is focused on maximizing profitability from its core business and integrating its healthcare solutions into its Kii Personalized & Connected Care offering. The Company has built an ecosystem of connected services eliminating challenges that employers face when purchasing from multiple, siloed vendors. Employers will also benefit from integrated reporting and analytics, a simplified access and intake experience, and personalized whole-person care which leads to high satisfaction and better outcomes.
Notable Client Wins
Since the beginning of 2022, CloudMD has onboarded over 300 customers representing over 60,000 lives with clients across various sectors, switching from legacy providers to CloudMD. The Company’s momentum in customer acquisition includes over 9,000 new members through its Mental Health Coaching program and a disability contract with a large healthcare association.
Recently, Sanofi Canada partnered with CloudMD to enable improved access to critical mental health support for people living with diabetes. By offering Therapist Assisted internet-based Cognitive Behavioural Therapy (TAiCBT) through MindBeacon, they can now offer a 360-degree approach to diabetes management beyond medication. This represents an important expansion of mental health services into CloudMD’s pharmaceutical market vertical.
For people living with chronic health conditions, like diabetes, taking a connected, whole-person approach to care that includes both mental and physical health care can reduce the risk of developing a mental health condition and improve overall health outcomes. Rooted in evidence-based best practice, MindBeacon delivers high-quality mental health treatment, including support that is specifically designed to help those coping with chronic conditions, such as diabetes.
Sabina Steinkellner, General Manager, General Medicines, Sanofi Canada commented, “By thinking beyond the traditional one-size-fits-all approach to diabetes management and enabling a holistic approach to care, we can help support Canadians living with diabetes as they navigate life with a chronic condition. We are proud to be partnering with MindBeacon to support this holistic approach to care by providing access to vital mental health support."
Clients are recognizing CloudMD’s innovation in mental health support (EFAP, TAiCBT and Mental Health Coach), medical second opinion and absence management services, resulting in proposals that include multiple integrated services.
The Company continues to educate its loyal customer base on the importance and benefits of offering its full spectrum of mental and physical health services to employees and expects to see continued adoption of Kii’s integrated health programs as the Company launches its B2B telemedicine product openly to the market in July. The recent customer wins and strong adoption rates by current customers are validation that CloudMD’s connected care approach resonates with employers and provides better health outcomes for employees and stronger measurable ROI for organizations.
Adam Kelly, Chief Commercial Officer, CloudMD commented, “We believe that customers are looking for integrated services that have been proven to deliver positive health outcomes. As such, our focus in the back half of 2022 is to accelerate organic growth through our customer base, helping customers realize value through the integration of additional services. We add value to customers by reducing the number of vendors and associated costs, improving their employees' experience and health outcomes, and driving better business results for the organizations we support.”
Addition of Customer Success & Sales Leadership
CloudMD is excited to announce that it has appointed Eric Lalonde, Senior Vice President, Customer Success and Growth, and Robin Cooper, Senior Vice President, Partnerships and Growth to its senior leadership team.
In his new role, Eric Lalonde will primarily be responsible for building the new strategy, structure, and team for customer success and leading the cross-sell strategy across CloudMD’s Enterprise Health Solutions. Eric brings over 20 years of experience leading sales and customer success teams in various industries. Before joining CloudMD, he held senior executive roles with Medisys (now part of TELUS Health), Sprout (now part of TELUS Health) and Rogers Communications. Eric has an MBA from Ivey Business School. Eric’s proven leadership will help accelerate the adoption of CloudMD's solutions across all of its customers and build an integrated team to help accelerate the growth strategy.
Robin Cooper is leading CloudMD’s partnership team focused on managing and expanding carriers, broker and advisor relationships as well as establishing other reseller and strategic partnerships that are growth oriented. Robin has an extensive background in healthcare technology sales with other industry leaders, including Maple, Teladoc, Best Doctors and Morneau Shepell. She brings over 20 years of experience in business development and strategic partnership opportunities. Robin’s strong track record of developing strategic initiatives and objectives and executing action plans has helped organizations drive profitable revenue growth and increased market share.
Antoine Delmas has been promoted to Regional Vice-President of Quebec and the Atlantic region, responsible for revenue and organic growth across all CloudMD products within the region. This decision represents CloudMD’s increasing market presence within the region and what the Company believes is an important market for continued strong organic growth.
“We remain focused on educating the market on our proven ability to ensure individuals access mental and physical health services that improve health outcomes. Industry experts, Eric Lalonde and Robin Cooper, chose CloudMD after reviewing our product roadmap and value proposition to customers. Both have the proven industry leadership and experience with building sales teams, driving cross-sell, and servicing clients in the health care space, which will be highly valuable in maximizing the opportunity in front of us to drive organic growth,” commented President and Interim CEO, Karen Adams, CloudMD.
Launch of VisionPros Platform in the United States
CloudMD is also pleased to announce that it has started selling its vision care platform, VisionPros, in the United States. Since being advised of the supplier issues while VisionPros was being run by the former owners, CloudMD has worked diligently with its U.S. based suppliers to rectify all issues, agree to new terms of distribution and sign new contracts. With these new agreements and a new U.S. distribution centre, VisionPros is now positioned to access the U.S. market.
About CloudMD Software & Services
CloudMD is transforming the delivery of healthcare using technology and by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging healthcare technology, the Company is building one, connected platform that addresses all points of a patient’s healthcare journey and provides better access to care and improved outcomes. Through CloudMD’s proprietary technology, the Company delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, healthcare navigation, educational resources, and artificial intelligence (AI). CloudMD’s business is separated into three main divisions: Clinics and Pharmacies, Digital Solution and Enterprise Health Solutions, the Company’s fastest growing division. CloudMD’s Enterprise Health Solutions Division has built a leading employer healthcare solutions, including its Comprehensive Integrated Health Services Platform, which offers one comprehensive, digitally connected platform for educational institutions, corporations, insurers, and advisors to better manage the health and wellness of their students, employees, and customers.
CloudMD currently services a direct ecosystem of over 5,700 clinicians including, 1,800+ mental health practitioners, 1,600+ allied health professionals, 1,400+ doctors and nurses and covers 12 million individual lives across North America. For more information visit: https://investors.cloudmd.ca.
ON BEHALF OF THE BOARD OF DIRECTORS
“Karen Adams”
Interim Chief Executive Officer
FOR ADDITIONAL INFORMATION, CONTACT:
Julia Becker
VP, Investor Relations
julia@cloudmd.ca
(604) 785-0850
StockpickerCAPC
2 years ago
CloudMD Reports Results of Evidence Based Study Proving iCBT as Highly Effective Treatment for Depression and Anxiety.
Source
https://finance.yahoo.com/news/cloudmd-reports-results-evidence-based-113000929.html
June 6, 2022
Over 5,000 individuals with clinical levels of depression and comorbid anxiety who completed CloudMD’s Therapist Assisted iCBT program experienced reliable symptom improvement.
CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF, Frankfurt: 6PH), a healthcare technology company revolutionizing the delivery of care, is excited to announce the positive results of a comprehensive, evidence-based study on the outcomes of therapist assisted internet-based cognitive behavioural therapy (“TAiCBT”).
Since 2020, CloudMD’s leading, clinically based TAiCBT provider, MindBeacon, has successfully treated thousands of people with clinically severe levels of depression and co-morbid anxiety. The results of the study released have proved the effectiveness of TAiCBT treatment for depression and anxiety.
Depression is a leading cause of disability and absence for all Canadian employers and the leading cause worldwide, impacting 350 million people. In Canada, around 11% of men as well as 16% of women will be impacted by the condition throughout their lifetime. Close to half of people who suffer with depression (46%) will also experience anxiety in their lifetime, often at the same time. Knowing this, MindBeacon recently completed a study to seek
- a) the effectiveness of its depression protocol for those experiencing symptoms of both depression and anxiety, and
- b) the relationship between moderating factors (e.g., client characteristics), mediating factors (e.g., patterns of client and therapist engagement) and symptom reduction.
Highlights:
- Conducted a comprehensive analysis of two years of data, representing 12,839 people who consented to treatment for symptoms of depression.
- Treated thousands of people with clinically severe levels of depression, and thousands of people with clinically severe co-morbid anxiety.
- 77% of clients start treatment with clinical level symptoms (a score of 10 or more on the PHQ9) of depression; 56% are suffering from clinical levels of both depression and anxiety symptoms (a score of 8 or more on the GAD7).
- On average, clients start treatment with a depression symptom score in the moderately severe range (16) and finish with a score in the moderate depression range (10).
- Initial symptoms, amount of treatment readings and frequency of engagement all contribute to symptom improvement.
- More than half of clients with clinically severe symptoms experience reliable symptom improvement.
- This compares very favourably with other forms of treatment and TAiCBT studies and experience in other jurisdictions.
- Clients with a range of engagement patterns can benefit from TAiCBT, clients who stretch out engagement over 4 or more weeks experience optimal results.
- This is also consistent with past research showing that increasing engagement increases the number of clients achieving reliable clinical change.
The study was based on a comprehensive analysis of two years of data from January 2020 – December 2021. Clinical levels for depression are defined as a score of 10 or more on the PHQ9. On average, clients started treatment with a depression symptom score in the moderately severe range (16) and finished with a score in the moderate depression range (10). A reduction of 6 points in PHQ9 is considered a reliable change. In summary, nearly half of clients experienced a reliable change in their depression symptoms by the end of treatment.
“The rising incidence of mental health and increasing wait times is supporting the need for iCBT solutions," said Karen Adams, President and Interim CEO of CloudMD. “Our data analysts are dedicated to measuring outcomes to ensure that we are able to offer the treatment options that will result in improvement and return to function. We offer a full spectrum of mental health support solutions with multiple modalities of care which we feel confident will provide better health outcomes. Furthermore, we have one of the largest data sets for clinically based TAiCBT outcome measurement and data integrity, which is essential to showcase our program’s effectiveness, along with having the right processes in place to capture the proof points, and provide important outcomes data to our customers,” she continued.
After studying the effectiveness of its TAiCBT, the Company found that more than half of clients who actively engaged with the programs for four weeks or more saw symptom improvement, even if they completed few readings. Initial symptoms, amount of treatment readings and frequency of engagement all contributed to symptom improvement in the end.
The effectiveness of the Company’s TAiCBT programs showcase the support the program can offer to human resources and operational leaders as they help prevent absenteeism and leave of absence while taking employees forward on their wellness journey. For carriers, the program can help reduce the duration of disability claims, prevent short-term disability, and reduce absences at work due to depression.
“It’s not surprising that persistent engagement with the program is beneficial for symptom reduction but it is interesting that stretching engagement out appears to be more important that completing a lot of material in a short period of time,” said Matt Balcarras, PhD, clinical research lead at MindBeacon. “TAiCBT is designed to allow more choice and flexibility around the pacing of engagement, and we are pleased to show that our clients are able to find the pacing that works best for them,” he added.
The TAiCBT platform, with its high degree of client/therapist interaction and personalization to adapt to their individual needs and preferences throughout their treatment journey, is uniquely designed to foster continued client engagement leading to better outcomes. As shown in this study, CloudMD’s TAiCBT has proven highly effective treatment for people with clinical levels (moderately severe and moderate) of depression and comorbid anxiety.
Furthermore, CloudMD’s time to treatment at <5 days is 5 times faster than the 25 days Canadians typically wait for community health, or months or more for specialized support (e.g., post-traumatic stress). Earlier intervention has also been consistently shown to lead to better outcomes.
To access the full study, please click here:
https://3927801.fs1.hubspotusercontent-na1.net/hubfs/3927801/New%20study%20proves%20MindBeacon%E2%80%99s%20Therapist%20Assisted%20iCBT%20is%20a%20highly%20effective%20treatment%20for%20people%20with%20clinical%20levels%20of%20depression%20and%20comorbid%20anxiety.pdf
New study proves Therapist Assisted iCBT is a highly effective treatment for people with clinical levels of depression and comorbid anxiety. CloudMD will also be hosting a webinar about the research as part of its Better Outcomes Initiative, individuals can register for it here:
https://info.mindbeacon.com/betteroutcomes
About CloudMD Software & Services
CloudMD is transforming the delivery of healthcare using technology and by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging healthcare technology, the Company is building one, connected platform that addresses all points of a patient’s healthcare journey and provides better access to care and improved outcomes. Through CloudMD’s proprietary technology, the Company delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, healthcare navigation, educational resources, and artificial intelligence (AI). CloudMD’s business is separated into three main divisions: Clinics and Pharmacies, Digital Solution and Enterprise Health Solutions, the Company’s fastest growing division. CloudMD’s Enterprise Health Solutions Division has built a leading employer healthcare solutions, including its Comprehensive Integrated Health Services Platform, which offers one comprehensive, digitally connected platform for educational institutions, corporations, insurers, and advisors to better manage the health and wellness of their students, employees, and customers.
CloudMD currently services a direct ecosystem of over 5,700 clinicians including, 1,800+ mental health practitioners, 1,600+ allied health professionals, 1,400+ doctors and nurses and covers 12 million individual lives across North America. For more information visit: https://investors.cloudmd.ca.
ON BEHALF OF THE BOARD OF DIRECTORS
“Karen Adams”
Interim Chief Executive Officer
FOR ADDITIONAL INFORMATION, CONTACT:
Julia Becker
VP, Investor Relations
julia@cloudmd.ca
(604) 785-0850
StockpickerCAPC
2 years ago
CloudMD Reports First Quarter 2022 Financial Performance with Clear Path to Profitability and Strong Roadmap for Growth.
Source
https://finance.yahoo.com/news/cloudmd-reports-first-quarter-2022-205100474.html
Mon, May 30, 2022, 10:51 PM
- Q1 2022 revenue of $41.4 million, compared to $8.8 million in Q1 2021, reflecting a year over year increase of 372%.
- Enterprise Health Solutions delivered revenue of $26.0 million; reflecting the first quarter of revenue recognition from MindBeacon.
- Q1 2022 gross margin of 32.5%; improvement of 250 basis points compared to the previous quarter.
CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF, Frankfurt: 6PH), a healthcare technology company revolutionizing the delivery of care, announced its financial results for the first quarter ended March 31, 2022. All financial information is presented in Canadian dollars unless otherwise indicated.
“In Q1 we delivered strong performance aligned with a company commitment to generating synergies, profitable execution, and continued growth. Innovation remains a key Company focus with the launch of our newly branded integrated personalized connected health platform, Kii. This is a milestone as we transform the way individuals receive healthcare. We are seeing momentum in client acquisition as Employers recognize the positive impact of our connected health ecosystem, starting with our unique nurse-led in-take. We are providing measurable improvements in employees’ health and wellness and reductions in absenteeism, driving significant return on investment,” said Karen Adams, Interim CEO and President of CloudMD. “As you’ve heard from us repeatedly, we remain focused on cost control, realizing synergies, and profitable execution. We have a strategic plan that focuses on leveraging our core assets, maximizing returns for our clients and shareholders, and achieving sustained profitability.”
First Quarter 2022 Financial Highlights
- Q1 2022 revenue was $41.4 million, compared to $38.7 million in Q4 2021 and $8.8 million in Q1 2021. The growth compared to Q4 2021 is primarily attributable to the consolidation of MindBeacon into CloudMD’s results, organic growth from the Employee Health Solutions (“EHS”) division offset by a decline in Digital Health Solutions (“DHS”) due to Vision Pros supplier issues. The increase compared to Q1 2021 is primarily attributable to organic and acquisition growth from the acquisitions completed in the last 12 months.
- Q1 2022 gross profit margin1 was 32.5%, compared to 30.0% in Q4 2021 and 40.9% in Q1 2021. The lower year over year gross profit margin was primarily due to revenue mix in the periods. The Company’s online vision care platform and patient support programs are lower-margin businesses and were not in the comparative period. The Company expects its gross profit margin to increase over the course of 2022 with the ongoing efforts to integrate its acquisitions and increase its operational efficiency.
- Net loss in Q1 2022 was $5.6 million or $0.02 per share, compared to a loss of $15.1 million or $0.06 per share in Q4 2021 and a loss of $5.3 million or $0.03 per share in Q1 2021. The year over year increase in net loss was primarily due to additional expenses incurred to support the Company’s growth strategy, including acquisition integration costs. The Company is highly focused on profitable growth and generating positive net profit is a key objective for the Company.
- Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) was a loss of $1.6 million in Q1 2022, compared to a gain of $0.6 million in Q4 2021 and a loss of $1.6 million in Q1 2021. The Company had a step back in the quarter due to the slightly higher run rate costs of MindBeacon which was acquired in January 2022; however, it has have made significant progress towards exceeding the planned acquisition synergies.
- Cash and cash equivalents were $46.9 million as of March 31, 2022, compared to $45.1 million on December 31, 2021. The increase is related to the completion of the MindBeacon acquisition and net cash acquired.
First Quarter and Subsequent Corporate Highlights
- On January 14, 2022, the Company announced the closing of the MindBeacon acquisition, creating one of North America’s most comprehensive integrated health offerings.
- In Q1 2022, CloudMD announced Daniel Lee resigned as CFO and Sean Carr was appointed as Interim CFO. Subsequently, the Company announced Dr. Essam Hamza was resigning effective May 2, 2022, and Karen Adams would be appointed interim CEO. The Board has initiated a process to identify the permanent CEO and CFO.
- On March 3, 2022, the Company announced its new Public Sector division. Operating within EHS, this division will focus on the investments being made in navigation of healthcare, an important part of our organic growth strategy across North America. In addition, this division will manage recently acquired customer contracts awarded from various state, local, and public sector organizations across North America.
- On March 31, 2022, the Company announced its cost optimization and operational integration activities. In a desire to simplify operations and improve execution, the Company eliminated $7.5 million of annualized run-rate costs from its business. This is aligned with the Company’s focus on driving sustainable profitability.
- On May 26, 2022, the Company announced the launch of Kii, Personalized & Connected Care, the new brand identity for its integrated, health services offering. Kii, is the company’s flagship offering which integrates several of its best-in-class technologies and services into one exceptional, connected, and personalized experience for employees that will continue to disrupt the traditional employer healthcare industry.
Outlook
The Company continues to deliver on the value proposition of offering comprehensive solutions that create access to care, leading to better health outcomes. Through its team-based, personalized care approach, CloudMD provides comprehensive solutions to patients, healthcare practitioners, individuals, and enterprise clients through our call center, digitally or in person. The Company has a multi-pronged growth strategy which focuses on organic growth, cost optimization, leveraging of our core assets and accretive mergers and acquisitions.
The Company remains focused on a number of key priorities in 2022 including: (1) Organic growth by continuing to diversify and grow its client base within its EHS and DHS divisions through cross selling capabilities, geographic expansion and providing innovative and best-in-class customer service; (2) Driving continuous operational excellence across the organization to improve productivity, product quality and consistency, and lower customer acquisition costs; (3) delivering a diligent path to profitable financial sustainability and focus on delivering consistent financial performance across all divisions of the organization; and (4) continuing to develop corporate governance to support the Company’s growth.
The Company has a near-term focus on streamlining operations, with a plan to profit from the core and leverage its strength as a leader in the employer health markets. CloudMD is focused on driving profitable growth in the markets where we have scale, and strong differentiators in proven service delivery and that have the most attractive growth and profit potential. As such, the Company will undertake a strategic review of some smaller, non-core assets to determine how best to maximize shareholder value.
The Company will continue to deploy its capital prudently and will make investments that support growth in core areas of the business.
First Quarter 2022 Earnings Conference Call
CloudMD invites all interested parties to join the conference call or webinar:
CloudMD Q1 2022 Earnings Call
Date: May 31, 2022
Time: 9:00 am ET (6:00 am PT)
Toll-Free Dial-In Number: (833) 562-0117
International Dial-In Number: (661) 567-1009
Webcast Link:
https://edge.media-server.com/mmc/p/2popizyz
StockpickerCAPC
2 years ago
CloudMD Launches Kii Personalized & Connected Care, the New Brand Identity for its Transformational Integrated Health Services Offering.
Source
https://finance.yahoo.com/news/cloudmd-launches-kii-personalized-connected-113000008.html
Thu, May 26, 2022, 1:30 PM
- Kii combines CloudMD’s unique nurse-led intake and care coordination and proven comprehensive suite of healthcare services to personalize support for members across physical, mental and overall health and safety.
- iCBT and health coaching is now integrated in CloudMD’s EFAP and overall mental health offering, which means CloudMD can support more individuals by offering a fully stepped-care approach from self-guided to coaching to treatment for mental health conditions such as clinical depression and anxiety.
- Telemedicine services will be available through Kii in July, which provides an additional telemedicine offering embedded into CloudMD’s integrated program offering.
- Comprehensive, personalized connected care with multiple modalities of ongoing support including virtual video, instant messaging, telephonic, and in-person options, which ensures the right care, when and how individuals want it.
- Establishes a strong brand identity and positioning strategy to support the go-to-market and cross-selling campaign to new and existing client base.
CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF, Frankfurt: 6PH), a healthcare technology and innovative health services company transforming the delivery of care, is excited to announce the launch of Kii Personalized & Connected Care by CloudMD, the new brand identity for its integrated, health services offering. Kii, is the company’s flagship offering which integrates several of its best-in-class technologies and services into one exceptional, connected, and personalized experience for employees that will continue to disrupt the traditional employer healthcare industry. Kii is focused on personalizing care by taking a whole-person approach with an emphasis on continuity of care across mental, physical and workplace safety.
Over the last 6 months, the CloudMD team has been working to develop the new Kii brand identity and positioning for its integrated platform, which has already seen successful adoption in the marketplace. The new Kii brand reflects a brand purpose of empowering individuals to take control of their health and plays off the word “key” ie. “Holding the key to your health”. The essence of the brand is meant to embody caring, the whole body, trust, and connectivity. The Kii brand promise is to provide connected care, which is the key enabler to an individual’s health and wellbeing and ability to thrive.
Karen Adams, Interim CEO and President of CloudMD commented, “We are thrilled to launch Kii, a transformation program that enables access to personalized care for mental and physical health issues across an individual’s life journey. Kii brings together what we have known as transactional service approaches that lead to disconnected and fragmented experiences. With the connected and outcome focused approach of Kii, the program drives accountability for behaviour change resulting in better return on investment and clinical health outcomes. Kii addresses the barriers to care by efficiently supporting access through multiple modalities designed to meet the individual’s specific needs. Kii supports individuals who require mental and physical health treatment plans but also demonstrates strong, positive return to work outcomes for people experience absence support or disability services.”
Karen Adams continued, “We intend to build long standing relationships with the individuals and will continuously support and encourage them to actively engage in their treatment. We believe Kii is the solution that individuals and organizations will come to depend on for the full spectrum of mental and physical health needs. They can depend on CloudMD to focus on the personalized health needs of individuals resulting in better health outcomes for the individual and improved ROI for the company.”
Over the past few years, thousands of individual employers and organizations have switched from transactional providers to CloudMD across its suite of services. Employers, advisors, insurers and employees have provided consistent feedback that they are frustrated with the services they receive, and face long wait times and too many barriers in accessing high-quality care. This is magnified when a user is forced into digital-only experiences without phone access or in-person options available.
Kii differentiates itself in the market through
- Full spectrum of healthcare services and features. Includes EFAP (employee and family assistance program), mental health treatment including iCBT (internet based cognitive behavioral therapy), telemedicine, a trustworthy credible health reference library, and employee-initiated workplace health and safety services all accessed through one connected program.
- Easy to use platform and interface. Will provide one integrated solution that combines EFAP, mental health coach, telemedicine, and workplace health, credible health reference library and safety which eliminates multiple logins and provides access to a dedicated healthcare team that shares one, personalized healthcare record. User-friendly and inviting to reduce stigma around asking for help.
- Entire experience is supported by a nurse/clinician. From initial intake and assessment to creating personalized care plans, to navigating options and ensuring individuals stay on track, assigned nurse navigators are there to support the entire journey back to health.
- One, centralized intake process. The nurses and regulated health care professionals do a superior job at assessing the person's issues and helping them navigate to the right service or combination of services. Nurses can help assess both physical and mental health issues, without forcing the employee to go through multiple intake processes.
- Multiple modalities of care. Provides multiple options of care including 365-day available support that work for everyone including, virtual, instant messaging, telephonic, and in person options This ensures the right care, when and how individuals want it.
- Significant network of healthcare professionals: Roster includes a significant number of regulated health care practitioners including but not limited to psychologists, psychotherapists, MSWs, psychiatrists, nurses, nurse practitioners and doctors. Includes subject matter expertise in occupational health and disability to treat complex and chronic health conditions that drive disability costs.
- Ability to measure clinical health outcomes Delivering superior clinical health outcomes, consistent high satisfaction and measurable business ROI.
Kii Personalized & Connected Care Video
To learn more about Kii, please watch this short highlight video.
https://vimeo.com/713911771/c5c018a438
About CloudMD Software & Services
CloudMD is transforming the delivery of healthcare using technology and by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging healthcare technology, the Company is building one, connected platform that addresses all points of a patient’s healthcare journey and provides better access to care and improved outcomes. Through CloudMD’s proprietary technology, the Company delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, healthcare navigation, educational resources, and artificial intelligence (AI). CloudMD’s business is separated into three main divisions: Clinics and Pharmacies, Digital Solution and Enterprise Health Solutions, the Company’s fastest growing division. CloudMD’s Enterprise Health Solutions Division has built a leading employer healthcare solution, including its Comprehensive Integrated Health Services Platform, which offers one comprehensive, digitally connected platform for educational institutions, corporations, insurers, and advisors to better manage the health and wellness of their students, employees, and customers.
CloudMD currently services a direct ecosystem of over 5,700 clinicians including, 1,800+ mental health practitioners, 1,600+ allied health professionals, 1,400+ doctors and nurses and covers 12 million individual lives across North America.
For more information visit:
https://investors.cloudmd.ca/
ON BEHALF OF THE BOARD OF DIRECTORS
“Karen Adams”
Interim Chief Executive Officer & President
FOR ADDITIONAL INFORMATION CONTACT:
Julia Becker
VP, Investor Relations
julia@cloudmd.ca
(604)785-0850
StockpickerCAPC
2 years ago
CloudMD Announces CEO Succession.
Source
https://finance.yahoo.com/news/cloudmd-announces-ceo-succession-113000168.html
Wed, April 6, 2022, 1:30 PM
Dr. Essam Hamza stepping down as CEO and President, Karen Adams appointed as Interim CEO.
CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF, Frankfurt: 6PH), a healthcare technology and innovative health services company transforming the delivery of care, today announced that the Company’s founder, Dr. Essam Hamza, will be stepping down as Chief Executive Officer (“CEO”) as of Monday, May 2, 2022. Dr. Hamza will remain on the Board of Directors and act as a strategic advisor to the Company. The Board of Directors unanimously appointed President, Karen Adams to assume the role of Interim CEO until a successor is appointed.
Over the last five years, Dr. Hamza has led CloudMD through significant growth and transformation, resulting in the company that CloudMD is today: a comprehensive, connected healthcare ecosystem with over 800 employees across North America. The founding principles that have guided CloudMD through its aggressive growth phase will continue to be the Company’s guiding light as it transforms the way healthcare is delivered.
“On behalf of the Board, I want to thank Essam for his entrepreneurial leadership and his hard work these past years, building an organization that is leading the industry in access to healthcare services,” said Mark Kohler, Chair of the Board of Directors of CloudMD. “Under Essam’s leadership, CloudMD’s business and revenue have increased in an extraordinary way. Essam has also gathered an impressive team with operational management depth throughout the organization, giving me confidence in the Company's ability to transition to new leadership seamlessly, capitalize on strategic opportunities, and deliver value to all stakeholders.”
The Company’s Board of Directors unanimously appointed CloudMD’s current President, Karen Adams, to assume the role of Interim CEO effective Monday, May 2, 2022, until the permanent CEO is appointed to lead the Company. The Board has initiated a process to identify the permanent CEO. Ms. Adams has been with CloudMD for the last two years, being appointed to the role of President in June 2021 and joining the Board of Directors in November 2021. She has over 25 years of senior executive experience in transforming companies, building brands, scaling organizations, and driving change and improvement in the healthcare solutions industry. During her time with CloudMD, Ms. Adams has built the Company’s strategic road map within its Enterprise Health Division, Digital Health Services Division, and mental health support solutions, and has significantly increased revenues, driven cost optimizations and launched geographic expansion. Prior to joining the Company, Ms. Adams held executive roles with Forum Corporation, Cira Health Solutions (SCM Insurance Services) and Morneau Shepell (Lifeworks) where she rebuilt brands, business strategies and positioned these companies for long term for growth.
Dr. Essam Hamza, CloudMD’s transitioning CEO comments, “Over the last few years, CloudMD has gone through significant growth including the completion of over 15 acquisitions, which are expected to add over $100 million in annual revenue. The business has changed from a connected network of clinics to a leading comprehensive healthcare provider, and I could not be prouder of the team on their ability to execute. It is time for the Company to move away from its founder, and I will be stepping down as CEO and passing the baton so a new CEO can lead the Company through its next phase of growth. I look forward to supporting the entire executive team through the Company’s next stage.”
Karen Adams, CloudMD’s Interim CEO said, “I am honoured that the Board has the confidence in me to begin to lead CloudMD into our next phase of growth. I am excited to work with the whole team to build the business, leveraging our differentiators to deliver results for our shareholders and stakeholders, including clients, network providers, and employees. The team will continue developing existing and additional capabilities underpinned by technology. We will continue investing in our employees through learning and development and create more opportunities for each employee to have a voice in new ideas, products, and services. I have worked alongside Essam for the last two years through the Company’s transformation and I am proud of what the Company has accomplished during that time.”
About CloudMD Software & Services
CloudMD is transforming the delivery of healthcare using technology and by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging healthcare technology, the Company is building one, connected platform that addresses all points of a patient’s healthcare journey and provides better access to care and improved outcomes. Through CloudMD’s proprietary technology, the Company delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, healthcare navigation, educational resources, and artificial intelligence (AI). CloudMD’s business is separated into three main divisions: Clinics and Pharmacies, Digital Solution and Enterprise Health Solutions, the Company’s fastest growing division. CloudMD’s Enterprise Health Solutions Division has built a leading employer healthcare solutions, including its Comprehensive Integrated Health Services Platform, which offers one comprehensive, digitally connected platform for educational institutions, corporations, insurers, and advisors to better manage the health and wellness of their students, employees, and customers.
CloudMD currently services a combined ecosystem of over 7,000 psychiatrists, approximately 4,500 therapists and counsellors, approximately 4,000 psychologists, over 22,000 family physicians, over 34,000 medical specialists, over 1,500 allied health professionals and over 5 million individuals across North America.
For more information visit
https://www.cloudmd.ca/
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD”
Chief Executive Officer
FOR ADDITIONAL INFORMATION CONTACT:
Julia Becker
VP, Investor Relations
julia@cloudmd.ca
(604)785-0850
StockpickerCAPC
2 years ago
CloudMD Announces Cost Optimization and Operational Integration Activities.
source
https://finance.yahoo.com/news/cloudmd-announces-cost-optimization-operational-113000311.html
Thu, March 31, 2022, 1:30 PM
- Identification and elimination of $7.5 million of annualized run-rate costs, focusing on future growth and sustainable profitability.
- Cost optimization activities will simplify operations, improve execution, strengthen customer focus, support cross-selling, and enable CloudMD to continue investing in innovation to drive industry leading health navigation solutions for individuals and organizations.
- Strategy will continue to focus on refinement of the business to have the most efficient and effective operating model.
CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF, Frankfurt: 6PH), a healthcare technology and innovative health services company transforming the delivery of care, is pleased to provide an update on its cost optimization process, integration of its comprehensive health services platform and organizational structure.
CloudMD’s cost optimization team is dedicated to creating shareholder and client value through the integration of people, process, and technology across the entire organization. Since the start of the year, approximately $7.5 million of annualized run-rate costs have been eliminated from the organization through integration, cost-synergies and streamlining operational functions across the entire business. The full benefit of these cost savings is expected to be realized in the second quarter. This exceeds the expected $4 million in cost savings the Company previously disclosed.
“We are pleased with our ability to accelerate the identification and elimination of $7.5 million of run-rate costs which we have already been taken out of the business since the beginning of the year. In addition, we have used this opportunity to re-evaluate the organizational structure and streamline our business operations to prioritize exemplary service for our customers. This will result in our customers realizing increased return on investment and return on employee satisfaction,” commented John Plunkett, EVP, Transformation and Strategic Planning at CloudMD.
CloudMD has demonstrated its ability to execute on its cost optimization strategy to drive sustainable profitability by:
- Integrating MindBeacon’s iCBT solution into CloudMD’s Mental Health Support Solutions, providing user engagement through assessment and treatment options for mild, moderate and chronic conditions.
- Streamlining and consolidating key operational functions across Finance, IT, Human Resources, Marketing and Sales and leveraging industry leading talent to drive innovation, retention and capitalize on human capital.
- Strengthening Digital Health Solutions by creating a new product management team focused on innovation and continuing to meet the health needs of individuals.
The Company believes there are additional efficiencies to be realized as it continues its integration efforts this year. In addition, CloudMD is also focused on cross-sell revenue synergies through its complete and connected health ecosystem, which will support continued strong top-line growth.
As part of the cost optimization, CloudMD has made some changes to its organizational structure to streamline the operations and create a more efficient business. Several positions have been reorganized and / or consolidated to leverage important capabilities, share best practices and drive growth throughout the organization. As part of the reorganization, effective March 31, 2022, Kanchan Thindal has stepped down as the Company’s Chief Operating Officer (COO). Karen Adams, President, will assume the roles and responsibilities of COO for the Company. CloudMD would like to thank Kanchan for her dedication and support over the last four years through the Company’s significant growth.
Through the organizational restructure, CloudMD has made several changes to consolidate and strengthen the depth of its leadership team including appointing Lu Barbuto, EVP Enterprise Health Solutions; Adam Kelly, Chief Commercial Officer; Aida Begovic, EVP Digital Health Solutions; John Plunkett, EVP Transformation and Strategic Planning; Jon Harju, SVP, Engineering; Bronwyn Ott, SVP, Human Resources and Olga McRae, Corporate Secretary. CloudMD has also introduced a process to continually review and evaluate its operational integration and additional changes may be implemented as indicated by such process.
No changes have been made to CloudMD’s current business units, Clinics & Pharmacies, Digital Health Solutions and Enterprise Health Solutions.
“Execution of our strategy is dependent on diligent cost management throughout the year. We are focusing on higher productivity and sustainable cost effectiveness to position us for increased profit and scalability,” stated Karen Adams, President of CloudMD. “The focus is on delivering the product vision, while ensuring we have the operating model and capabilities to deliver profitable growth. The actions we are announcing today, and the processes we have introduced, will better align our organization and cost structure to achieve these objectives. We will continue driving revenue and margin expansion by adding capabilities to our patented integrated healthcare platform, cross selling our capabilities portfolio, and bringing new, innovative healthcare solutions to the market.”
About CloudMD Software & Services
CloudMD is transforming the delivery of healthcare using technology and by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging healthcare technology, the Company is building one, connected platform that addresses all points of a patient’s healthcare journey and provides better access to care and improved outcomes. Through CloudMD’s proprietary technology, the Company delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, healthcare navigation, educational resources, and artificial intelligence (AI). CloudMD’s business is separated into three main divisions: Clinics and Pharmacies, Digital Solution and Enterprise Health Solutions, the Company’s fastest growing division. CloudMD’s Enterprise Health Solutions Division has built a leading employer healthcare solutions, including its Comprehensive Integrated Health Services Platform, which offers one comprehensive, digitally connected platform for educational institutions, corporations, insurers, and advisors to better manage the health and wellness of their students, employees, and customers.
CloudMD currently services a combined ecosystem of over 7,000 psychiatrists, approximately 4,500 therapists and counsellors, approximately 4,000 psychologists, over 22,000 family physicians, over 34,000 medical specialists, over 1,500 allied health professionals, over 500 clinics, and over 5 million individuals across North America.
For more information visit:
https://www.cloudmd.ca/investors/
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD"
Chief Executive Officer
FOR ADDITIONAL INFORMATION CONTACT:
Julia Becker
VP, Investor Relations
julia@cloudmd.ca
(604)785-0850
StockpickerCAPC
2 years ago
CloudMD Establishes Public Sector Division; Drives North American Growth with New Contract Wins.
source
https://finance.yahoo.com/news/cloudmd-establishes-public-sector-division-123000240.html
Thu, March 3, 2022, 1:30 PM
- New division to address the growing needs and investments being made in navigation of healthcare.
- Led by industry experts with over 70 years combined experience working in government and public sector roles.
- Embedding digital assets, including new comprehensive platform, mental health coach, therapy and iCBT, to ensure access and personalized healthcare.
- Significant U.S. Government contract wins with NYC Department of Education and opioid crisis support state-wide in North Carolina.
- Diverse portfolio of existing public sector customers; important driver of organic growth strategy across North America.
CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF, Frankfurt: 6PH), a healthcare technology and innovative health services company transforming the delivery of care, is excited to announce its newly formed Public Sector Division and recent customer contracts awarded from various state, local, and public sector organizations across North America. These contracts provide meaningful revenue diversification for the Company and opportunities to accelerate technology and service integration. The new division will also create cross-selling opportunities to integrate other services and solutions and provides a framework to continue scaling CloudMD’s integrated health services platform across North America.
The Public Sector Division combines experience in winning large-scale RFPs and contracts with an extensive history of successfully servicing public sector organizations across North America. There is growing investment from the public sector aimed at reducing wait lists, improving mental health and wellness, addressing anxiety, depression, post-traumatic stress and substance use issues. Through technology and efficient use of its health network providers, CloudMD is changing the way healthcare is delivered to address these issues. The Company already has a diverse portfolio of clients within the public sector, and this dedicated division is an important driver of CloudMD’s organic growth going forward.
Through its interoperability platform, the Company signed a contract to provide integration and technology services to the New York City Department of Education to support policy, process, and governance implementation. The NYC Department of Education is one of the largest educational agencies in the United States with over 1.2 million students.
The Company has also been awarded a contract for its Substance Use Disorder (“SUD”) solution to support the opioid crisis in North Carolina. The SUD solution utilizes CloudMD's patented Real Time Intervention Platform (RTIP), which is expected to be utilized across the country to help government agencies combat the Opioid Epidemic that is currently sweeping through North America. The SUD solution includes real-time risk identification tools to enable multi-disciplinary teams to provide real time intervention to help individuals with opioid issues get back on track.
In addition, CloudMD’s Mental Health Support Solutions service offering confirmed 107 new contracts in January and February, covering up to 50,000 new employees under subscription services. CloudMD has added several contracts within the Public Sector Division including:
- Subscription iCBT services for a major college employer in the Atlantic region of Canada.
- Three new Employee and Family Assistance Programs (EFAP) contracts for townships and municipalities across Canada.
- Mental Heath Coaching for the employees of a major Ontario university.
CloudMD also continues to receive strong adoption and referrals from the brokers/advisor markets and has a strong pipeline of customers across North America.
"As a lifelong mental health caregiver, I have seen the toll stigma and lack of access to services can take on families. As a long time public servant, I saw the impact on people, our healthcare system and our economy. People need supports wherever and whenever they are ready - at home, at work, at school - and I am proud to be working with CloudMD and our public sector patient and employer partners across North America to provide effective, holistic, and timely care that improves health equity for patients, students, workers and their families,” said Colin Andersen, Head of the Public Sector Division at CloudMD. “We have already made great progress since establishing our Public Sector Division and integrating MindBeacon into CloudMD’s health care offerings. I’m excited about the learnings our experienced US team brings to Canada and vice versa. Our comprehensive platform connects individuals to proven treatment that is outcomes-based, readily accessible and ideally positioned to meet the growing health and wellness needs of individuals and organizations alike.”
“We are focused on creating shareholder and client value through embedding technology in delivery of healthcare. This is aligned to our core purpose of creating innovation in access to care and healthcare navigation,” commented Karen Adams, President of CloudMD. “The public sector is recognizing the importance of investing in mental health solutions that will reduce wait times, improve access with a lens on health outcomes. We are fortunate to have the expertise to work with the public sector to solve these problems and deliver an outcome-based ROI.”
Essam Hamza, CEO of CloudMD added, “As we look forward, I am excited about the future of CloudMD. The combined companies provide incredible depth of expertise, leadership and management that builds the operational structure needed to evolve CloudMD for the next level of growth. Our path to profitability is within sight and we have assembled a leading executive management team that is extremely capable of driving organic growth. Through our ongoing integration efforts, we are well positioned to accelerate our expansion and scale the business.”
The new division is led by Colin Andersen, Head of Public Sector Strategy, Robert McKay, Director, Public Sector Product Development and Sharad Rao, President, IDYA4, who together, bring over 70 years collective experience working in government and public sector roles.
Colin Andersen joins CloudMD’s executive team from MindBeacon where he was responsible for MindBeacon’s partnerships with all levels of government, post-secondary institutions, public sector employers and workers’ compensation boards and all parts of the healthcare ecosystem. Previously, Colin was CEO of the Ontario Power Authority and prior to that Deputy Minister of Finance; Revenue; and Policy, Cabinet Office; Acting Deputy Minister as well as Associate Deputy Minister of Health and Long-Term Care; and Secretary of Treasury Board, all with the Ontario government.
Robert McKay brings extensive experience in senior roles leading large-scale Government projects for the Ministry of Health and Long-Term Care in Ontario, including the provinces Psychotherapy Program as well as Cancer Care Ontario’s Integrated Cancer Screening Program.
Sharad Rao is a senior executive focused on process and technology in the Public Sector arena with State, City and Federal Governments in the United States. Notably, he was a Senior Executive with Deloitte Consulting, leading the Justice and Public Safety segment of the law and justice industry segment for North America. He has overseen several national projects which involved the integration of disparate systems across all 50 states, aggregating data and providing insights to various agencies to take pro-active action.
CloudMD Software & Services Inc. also announces that it issued an aggregate of 18,000 common shares (the “Compensation Shares”) to the Company’s former Chief Medical Officer, Dr. David Ostrow, on February 2, 2022. Dr. Ostrow provided mentoring and advisory services to the Company, as initially announced in a news release dated November 19, 2019. The Compensation Shares were issued as settlement for indebtedness owed to Dr. Ostrow arising from his consulting agreement with the Company for the period from November 1, 2020, to October 31, 2021.
The Compensation Shares have a deemed price of $1.16 per share, which is the discounted market price pursuant to the policies of the TSX Venture Exchange, based on the closing price of the Company’s common shares on TSX Venture Exchange on October 31, 2021, the last trading day on which Dr. Ostrow’s services were provided to the Company under the foregoing arrangement. The Compensation Shares are also subject to a four-month hold period.
About CloudMD Software & Services
CloudMD is transforming the delivery of healthcare using technology and by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging healthcare technology, the Company is building one, connected platform that addresses all points of a patient’s healthcare journey and provides better access to care and improved outcomes. Through CloudMD’s proprietary technology, the Company delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, healthcare navigation, educational resources, and artificial intelligence (AI). CloudMD’s business is separated into three main divisions: Clinics and Pharmacies, Digital Solution and Enterprise Health Solutions, the Company’s fastest growing division. CloudMD’s Enterprise Health Solutions Division has built a leading employer healthcare solution, including its Comprehensive Integrated Health Services Platform, which offers one comprehensive, digitally connected platform for educational institutions, corporations, insurers, and advisors to better manage the health and wellness of their students, employees, and customers.
CloudMD currently services a combined ecosystem of over 7,000 psychiatrists, approximately 4,500 therapists and counsellors, approximately 4,000 psychologists, over 22,000 family physicians, over 34,000 medical specialists, over 1,500 allied health professionals, over 500 clinics, and over 5 million individuals across North America.
For more information visit:
https://www.cloudmd.ca/
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD"
Chief Executive Officer
FOR ADDITIONAL INFORMATION CONTACT:
Julia Becker
VP, Investor Relations
julia@cloudmd.ca
(604)785-0850
StockpickerCAPC
2 years ago
CloudMD Announces CFO Transition and Succession Plan.
source
https://finance.yahoo.com/news/cloudmd-announces-cfo-transition-succession-123000896.html
Tue, February 1, 2022, 1:30 PM
Daniel Lee is stepping down as CFO and will remain available to support the transition while CloudMD initiates a comprehensive executive search
Sean Carr will assume the role of Interim Chief Financial Officer, bringing 20+ years of CFO experience in large, complex healthcare and technology companies
VANCOUVER, British Columbia, Feb. 01, 2022 (GLOBE NEWSWIRE) -- CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF, Frankfurt: 6PH) (“CloudMD” or the “Company”), a healthcare technology company transforming the delivery of care, announced today that Daniel Lee stepped down as Chief Financial Officer (“CFO”), effective January 31, 2022, for personal reasons. As part of a planned transition, Daniel will remain available to the Company through March 31, 2022 to support the smooth changeover. Sean Carr, previously SVP Finance, has been appointed Interim Chief Financial Officer and is currently working with Daniel to oversee CloudMD’s annual audit and the comprehensive integration of its recent acquisitions.
Sean has over 20 years of experience as Chief Financial Officer of large healthcare and technology companies, including the Canadian Addiction Treatment Centers, AIM Health Group (which was sold to McKesson in 2013), and Venus Concept Inc. (a NASDAQ-listed company, which operates in over 60 countries). In addition, he has overseen multiple M&A transactions, leading due diligence, negotiation, and successful integration. Sean was already an integral part of CloudMD’s senior management team and, as Interim CFO, he will be even more heavily involved in the Company’s cost optimization project and part of the executive management team focused on executing on cost synergies and cost saving opportunities to drive profitability and growth.
“I’d like to thank Daniel for his dedication and support over a time of incredible growth. As CFO during our start-up phase, his hard work and entrepreneurial spirit were invaluable and helped us put in place the foundation of our connected healthcare ecosystem,” said Dr. Essam Hamza, CEO of CloudMD. “Sean has extensive experience as CFO of several large healthcare and technology companies. His track record of executing multiple M&A deals and his proven ability to integrate and generate synergies make him the perfect fit to lead the Company’s finance function during this period. With the acquisition of MindBeacon and the depth we’ve built up in our finance and accounting team, now is the perfect time to begin our search for a permanent CFO with experience in large public companies, global expansion, M&A integration and driving cost synergies.”
“I’m thrilled to be able to take on a bigger role at CloudMD and leverage my experience in M&A integration and cost control to bring CloudMD to the next level and a return to profitability,” said Sean Carr, Interim CFO of CloudMD. “CloudMD has created something special with their integrated healthcare ecosystem and the coming years are going to be an exciting time for the Company.”
The Company has grown incredibly quickly and to support the next phase of growth, CloudMD will be initiating a comprehensive executive search for a CFO who is an experienced financial leader that will help execute on the integration of MindBeacon, realization of cost synergies, global expansion, and will be instrumental in shaping the long-term financial strategy of the Company.
About CloudMD Software & Services
CloudMD is transforming the delivery of healthcare using technology and by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging healthcare technology, the Company is building one, connected platform that addresses all points of a patient’s healthcare journey and provides better access to care and improved outcomes. Through CloudMD’s proprietary technology, the Company delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, healthcare navigation, educational resources, and artificial intelligence (AI). CloudMD’s business is separated into three main divisions: Clinics and Pharmacies, Digital Solution and Enterprise Health Solutions, the Company’s fastest growing division. CloudMD’s Enterprise Health Solutions Division has built a leading employer healthcare solutions, including its Comprehensive Integrated Health Services Platform, which offers one comprehensive, digitally connected platform for educational institutions, corporations, insurers, and advisors to better manage the health and wellness of their students, employees, and customers.
CloudMD currently services a combined ecosystem of over 7,000 psychiatrists, approximately 4,500 therapists and counsellors, approximately 4,000 psychologists, over 22,000 family physicians, over 34,000 medical specialists, over 1,500 allied health professionals, over 500 clinics, and over 5 million individuals across North America.
For more information visit:
https://investors.cloudmd.ca/
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD"
Chief Executive Officer
FOR ADDITIONAL INFORMATION CONTACT:
Julia Becker
VP, Investor Relations
julia@cloudmd.ca
(604)785-0850
StockpickerCAPC
2 years ago
CloudMD Announces Closing of MindBeacon Acquisition, Creating One of North America’s Most Comprehensive Integrated Health Offerings.
source
https://finance.yahoo.com/news/cloudmd-announces-closing-mindbeacon-acquisition-123000016.html
January 14, 2022, 1:30 PM
- CloudMD’s established, proprietary mental health platform offering assessment, navigation, coaching, and work life services paired with MindBeacon’s iCBT, virtual therapy and assessment solutions, creates one of the most comprehensive integrated suite of mental health solutions in Canada – focused on health outcomes for users across a diverse set of purchasing channels.
- CloudMD’s Integrated Health Services Platform offers a single point of access to a full range of mental and physical health services, providing users with a seamless experience and clients with meaningful data and analytics.
- The acquisition is expected to accelerate CloudMD’s U.S. presence through expanded behavioural health capabilities, modalities, cross-selling synergies and MindBeacon’s recent acquisition of a U.S.-based mental health provider that provides both EAP and a much broader range of behavioural health services to employer populations.
CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF, Frankfurt: 6PH), a healthcare technology company transforming the delivery of care, is pleased to announce the successful completion of the previously announced acquisition of MindBeacon Holdings Inc.,
https://investors.cloudmd.ca/cloudmd-to-acquire-mindbeacon-one-of-north-americas-leading-clinically-validated-icbt-solutions/
one of North America’s leading providers of digital mental health care, pursuant to a court-approved plan of arrangement Pursuant to the Arrangement, former MindBeacon shareholders are entitled to receive $1.22 of cash plus 2.285 common shares of CloudMD for each common share of MindBeacon. Following completion of the Arrangement, CloudMD has 287,675,749 common shares issued and outstanding, of which approximately 19.1% are owned by former MindBeacon shareholders.
MindBeacon’s robust digital mental healthcare platform, combined with its network of over 500 licensed therapists and advanced clinical psychologists, offers a full continuum of care centered around providing users the freedom to choose how, when and where they engage with support.
“We are thrilled to close the acquisition of MindBeacon, and would like to thank their shareholders, directors and management for the support and collaboration during this process. By uniting CloudMD and MindBeacon’s platforms, we will create a leading, fully-integrated health offering that provides effective stepped care across the entire spectrum of physical and mental healthcare,” said Dr. Essam Hamza, CEO of CloudMD. “The acquisition is expected to accelerate our U.S expansion strategy, a key focus for us in 2022, and improve organic growth by opening new distribution channels and through cross-selling to our 5,500 corporate clients. In addition, we have identified significant cost savings and are excited to integrate MindBeacon’s team and operations to realize further synergies between the businesses. Finally, I’d like to thank our shareholders and key stakeholders who have supported CloudMD’s vision and journey. I am looking forward to 2022 and our continued growth and transformation.”
MindBeacon pioneered the digital delivery of evidence-based therapy through a computer or mobile device. As a result, over 50,000 people have been treated by MindBeacon’s therapist assisted internet-based cognitive behavioural therapy (“TAiCBT”), [b[color=green]]receiving help 5 times faster than traditional community mental health care. MindBeacon’s TAiCBT delivers impressive outcomes, with 82% of clients reporting self-improvement in mental health, and 67% reporting clinically significant improvement.[/color]
“As the need for accessible mental health support continues to grow, it is imperative that the sector innovates to increase accessibility, improve results and reduce costs. The progression of our Integrated Health Services Platform, our partnership with employers, advisors and insurers and the acquisition of MindBeacon, demonstrates our dedication to being a leader in innovating the mental health space,” said Karen Adams, President of CloudMD. “MindBeacon has one of the best clinically-proven solutions in the market today and by adding it to our platform, we can offer a broad range of synchronous and asynchronous services in a cost-effective, stigma-reducing way that meets patients when and where they need. We will be integrating MindBeacon and all our mental health solutions to support individuals at work, off work or returning to work.”
“CloudMD's Comprehensive Integrated Health Services Platform is the perfect home for MindBeacon's mental health capabilities. Together, we're an industry-leading holistic health company,” said Sam Duboc, Former Executive Chair of MindBeacon. “I'm thrilled that this opportunity will be able to positively impact our patients and I'd like to thank our shareholders for their overwhelming support and recognition of how much more we will be able to accomplish together.”
The addition of MindBeacon to CloudMD’s holistic offering positions the Company as a leader within the fast-growing global behavioural healthcare market, which is expected to grow to US$242 billion by 2027, with a compounded annual growth rate of 5.02% between 2020 and 2027.
The acquisition is expected to be synergistic by offering the following benefits:
- Combined, the digital health platform is expected to be one of North America’s leading fully-integrated health offerings, with a clinically-validated, broad continuum of care to address mild, moderate, acute and chronic mental and physical care.
- Integration into CloudMD’s Comprehensive Integrated Health Services Platform will expand the breadth of interactive technologies and tool sets within behavioural health to support clients with longitudinal multi-dimensional care.
- Data interoperability and increased analytic touchpoints will provide additional valuable data around healthcare outcomes and improve network effects.
- Significant cross-selling opportunities through a combined network of 5,500 corporate clients, over 5 million lives, and extensive government contracts.
- Drive U.S. expansion through additional capabilities, modalities, cross-selling opportunities and MindBeacon’s recent acquisition of a U.S.-based mental health provider.
- MindBeacon’s “Beacon in a Box” white label iCBT SaaS offering complements CloudMD’s Digital Health Solutions division and may be sold directly to its network of over 20,000 regulated healthcare professionals.
- Overall cost synergies, including MindBeacon, now exceed $4 million.
The companies have already started to integrate MindBeacon’s healthcare solutions into CloudMD’s broad continuum of care. Management anticipates that the acquisition will generate significant run-rate synergies beginning in the first quarter of this year. Such synergies are expected to be realized through cost rationalization, process integration and the scale of the combined organization. The complementary nature of the combined digital health offering is also expected to fuel product cross-selling opportunities to existing CloudMD and MindBeacon clients.
In connection with closing of the Arrangement, CloudMD expanded its management team to include John Plunkett (MindBeacon’s former Chief Financial Officer) as EVP, Transformation and Strategic Planning and Adam Kelly (MindBeacon’s former President and Chief Commercial Officer) as Chief Commercial Officer, with both positions reporting to Karen Adams.
Delisting of MindBeacon Common Shares
CloudMD intends to cause MindBeacon to delist its common shares from the Toronto Stock Exchange (the “TSX”), to submit an application for it to cease to be a reporting issuer, and to otherwise terminate its public company reporting requirements as soon as possible thereafter.
About CloudMD Software & Services
CloudMD is transforming the delivery of healthcare using technology and by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging healthcare technology, the Company is building one, connected platform that addresses all points of a patient’s healthcare journey and provides better access to care and improved outcomes. Through CloudMD’s proprietary technology, the Company delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, healthcare navigation, educational resources, and artificial intelligence (AI). CloudMD’s business is separated into three main divisions: Clinics and Pharmacies, Digital Solution and Enterprise Health Solutions, the Company’s fastest growing division. CloudMD’s Enterprise Health Solutions Division has built a leading employer healthcare solutions, including its Comprehensive Integrated Health Services Platform, which offers one comprehensive, digitally connected platform for educational institutions, corporations, insurers, and advisors to better manage the health and wellness of their students, employees, and customers.
CloudMD currently services a combined ecosystem of over 7,000 psychiatrists, approximately 4,500 therapists and counsellors, approximately 4,000 psychologists, over 22,000 family physicians, over 34,000 medical specialists, over 1,500 allied health professionals, over 500 clinics, and over 5 million individuals across North America. For more information visit:
https://investors.cloudmd.ca/
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD"
Chief Executive Officer
FOR ADDITIONAL INFORMATION CONTACT:
Julia Becker
VP, Investor Relations
julia@cloudmd.ca
(604)785-0850
StockpickerCAPC
2 years ago
MINDBEACON ANNOUNCES VOTING RESULTS FROM SPECIAL MEETING OF SHAREHOLDERS.
source
https://finance.yahoo.com/news/mindbeacon-announces-voting-results-special-014600788.html
Tue, January 11, 2022, 2:46 AM
MindBeacon Holdings Inc. (TSX: MBCN) is pleased to announce that the shareholders of the Company have approved the plan of arrangement previously announced on November 15, 2021, pursuant to which CloudMD Software & Services Inc. will acquire all of the issued and outstanding common shares of the Company. In accordance with the terms of the arrangement agreement entered into on November 14, 2021, each common share of MindBeacon will be exchanged for $1.22 of cash and 2.285 common shares of CloudMD. Upon completion of the Arrangement, former shareholders of MindBeacon will hold approximately 19.1% of CloudMD.
16,189,566 votes, or approximately 98.94%% of the votes cast at the special meeting of Shareholders held on January 10, 2022, were cast in favour of the special resolution approving the Arrangement. 16,179,566 votes, or approximately 98.94%% of the votes cast at the Meeting, excluding Shares required to be excluded pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"), were cast in favour of the Arrangement. The special resolution approving the Arrangement was required to be passed by (i) at least two-thirds (66 2/3%) of the votes cast at the Meeting by the Shareholders voting virtually or represented by proxy at the Meeting and (ii) a simple majority of the votes cast by the Shareholders voting virtually or represented by proxy at the Meeting, excluding Shares required to be excluded pursuant to MI 61-101. Details of the voting results will be filed under the Company's profile on SEDAR at
https://www.sedar.com/
The Company will apply for a final order of the Ontario Superior Court of Justice (Commercial List) on January 12, 2022. Closing of the Arrangement remains subject to certain customary closing conditions including court approval. Subject to the satisfaction of these closing conditions, it is anticipated that the Arrangement will be completed on or about January 14, 2022.
Further details regarding the Arrangement, including the principal closing conditions and the benefits for MindBeacon shareholders, can be found in the Company's Management Information Circular, which was mailed to shareholders on December 17, 2021 and can be found under MindBeacon's SEDAR profile.
About MindBeacon Holdings Inc.
MindBeacon provides a continuum of mental healthcare that includes self-guided psychoeducational and wellness content, Peer-to-Peer Support, Therapist Guided Programs and Live Therapy Sessions all offered virtually through its secure and private platform. As one of the first commercially available, digitally-native platforms to offer therapist-assisted internet-based Cognitive Behavioural Therapy in Canada, MindBeacon's professional service is designed around end users – their health, their way. Working with employers, insurance carriers and government ministries, MindBeacon offers services that are accessible, available, affordable and, most importantly, proven to be effective. MindBeacon is changing the therapy landscape by making professional care available to every person, no matter when, where and how they choose to access it.
For more information visit:
https://www.mindbeacon.com/
About CloudMD Software & Services Inc.
CloudMD (TSXV: DOC, OTCQX: DOCRF, Frankfurt: 6PH) is digitizing the delivery of healthcare by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging healthcare technology, CloudMD is building one, connected platform that addresses all points of a patient's healthcare journey and provides better access to care and improved outcomes. Through CloudMD's proprietary technology, the company delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, healthcare navigation, educational resources, and artificial intelligence (AI). CloudMD's Enterprise Health Solutions Division includes one of the top 4 Employee Assistance Programs in Canada and offers one comprehensive, digitally connected platform for corporations, insurers, and advisors to better manage the health and wellness of their employees and customers.
CloudMD currently services a combined ecosystem of over 7,000 psychiatrists, approximately 4,500 therapists and counsellors, approximately 4,000 psychologists, over 22,000 family physicians, over 34,000 medical specialists, over 1,500 allied health professionals, over 500 clinics, and over 5 million individuals across North America.
For more information visit:
https://investors.cloudmd.ca/
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