VitalHub Corp. Reports Second Quarter 2023 Results

TORONTO, Aug. 10, 2023 (GLOBE NEWSWIRE) -- VitalHub Corp. (the “Company” or “VitalHub”) (TSX:VHI) (OTCQX:VHIBF) announced today it has filed its Interim Condensed Consolidated Financial Statements and Management's Discussion and Analysis report for the three and six months ended June 30, 2023, with the Canadian securities authorities. These documents may be viewed under the Company’s profile at

“We kicked off 2023 with record revenue and robust year-over-year growth. This momentum persisted in Q2 with continued new sales and client expansion” said Dan Matlow, Chief Executive Officer of VitalHub. “Both positive organic growth and accretive revenue from acquisitions completed in previous quarters contributed to the Q2 2023 revenue increase. Strong double-digit year-over-year growth was delivered in term licences, maintenance, and support; perpetual licenses, services and hardware. ARR (1,2) benefited from positive organic growth (4%) offset by a loss (-0.3%) due to the decrease in Australian and US dollar rates relative to the Canadian dollar in the quarter. ARR (1,2) increased 31.4% or $9.8 million to $41.0 million from Q2 2022. Adjusted EBITDA (2) was strong at approximately $3.0 million, representing 23% of revenue. We closed the quarter with $22.9 million in cash on hand, a sequential increase of $5.8 million from December 31, 2022. Combined with the availability of our Bank of Nova Scotia Facility, we currently have $55.9 million of liquidity to expand our operations and continue our acquisition strategy. We continue to see new customer interest in our growing product portfolio in a more diversified fashion than in the past. In particular, our TREAT solution in the Canadian marketplace continues to expand on its leadership position. We are penetrating deeper into core accounts and expanding horizontally into adjacent markets and look forward to continuing our business velocity throughout 2023.”

VitalHub Corp’s quarterly investor conference call will take place on Friday, August 11, 2023, at 9:00AM EST.

To register for the call, please visit:

Second Quarter 2023 Highlights

  • Revenue of $13,085,441, an increase of $3,607,977 or 38% from Q2 2022.
  • Gross profit as a percentage of revenue of 81% compared to 83% in Q2 2022 (Q1 2023 - 80%). The decrease in Q2 2023 was primarily due to an increase in lower margin service revenues in the quarter.
  • ARR (1, 2) at the end of Q2 2023 was $41,008,702, an increase of $1,374,185 from Q1 2023.
    • ARR (1, 2) growth consists of $1,491,003 or 4% organic growth, offset by a loss of $116,818 or 0.3% of foreign exchange changes due to the decrease in Australian and US dollar rates relative to the Canadian dollar in the quarter.
  • EBITDA (2) of $1,979,464 compared to $1,023,686 in Q2 2022.
  • Adjusted EBITDA (2) of $2,970,322, or 23% of revenue, compared to $1,866,563, or 20% of revenue, in Q2 2022.
    • The increase was primarily attributable to the higher recurring revenues of $10,210,367 in Q2 2023, as compared to $7,232,646 in Q2 2022.
  • Net income before income taxes of $742,516 for Q2 2023 compared to a net loss of $9,957 in Q2 2022.

    • The increase was primarily attributable to the significant increase in revenues from organic growth and acquisitions, and lower expenses as a percentage % of sales.

Six Month 2023 Highlights

  • ARR (1, 2) at June 30, 2023, was $41,008,702 as compared to $31,219,508 at June 30, 2022, an increase of 31%.

    • ARR (1, 2) growth consists of $4,748,634 or 15% organic growth, $4,100,854 or 13% of acquisition growth, and a gain of $939,705 or 3.0% due to the fluctuation in the British Pound relative to the Canadian dollar.
  • Gross profit as a percentage of revenue for the six months ended June 30, 2023 was 81% compared to 84% from the comparative period in the prior year.

  • Revenue of $25,680,615, an increase of $6,779,959 or 36% from the comparative period in the prior year.

  • EBITDA (2) of $3,967,211 compared to $3,390,734 in H1 2022.

  • Adjusted EBITDA (2) of $5,894,102, or 23% of revenue, compared to $ 4,917,582 or 26% of revenue in H1 2022.

  • Cashflow from operations before changes in working capital was $4,068,458 for the period as compared to $3,994,704 for the same period last year.

  • Cash on hand at June 30, 2023, was $22,944,268 compared to $17,452,210 as at December 31, 2022.
(1)         The Company defines annual recurring revenue (“ARR”) as the recurring revenue expected based on yearly subscriptions.
(2)         Non-IFRS measure.

 Three months endedSix months ended
 June 30, 2023% RevenueJune 30, 2022% RevenueChangeJune 30, 2023% RevenueJune 30, 2022% RevenueChange
 $ $ %$ $ %
Revenue13,085,441 100%9,477,464 100%38%25,680,615 100%18,900,656 100%36%
Cost of sales2,468,871 19%1,605,282 17%(54%)4,940,748 19%3,079,861 16%(60%)
Gross profit10,616,570 81%7,872,182 83%35%20,739,867 81%15,820,795 84%31%
Operating expenses          
General and administrative2,558,469 20%2,160,235 23%(18%)6,169,561 24%4,005,747 21%(54%)
Sales and marketing1,739,979 13%1,023,250 11%(70%)3,021,644 12%2,071,639 11%(46%)
Research and development3,293,624 25%2,634,222 28%(25%)5,813,645 23%4,658,589 25%(25%)
Depreciation of property and equipment82,885 1%60,556 1%(37%)158,168 1%103,873 1%(52%)
Depreciation of right-of-use assets101,742 1%52,094 1%(95%)197,649 1%115,482 1%(71%)
Stock based compensation293,957 2%314,540 3%7%571,641 2%583,784 3%2%
Deferred share-based compensation97,560 1%- 0%100%97,560 0%- 0%100%
Foreign currency loss (gain)54,176 0%186,855 2%71%(159,085)(1%)166,180 1%196%
Other income and expenses          
Amortization of intangible assets1,070,214 8%795,270 8%(35%)2,124,461 8%1,479,198 8%(44%)
Business acquisition, restructuring and integration costs353,016 3%528,337 6%33%1,011,365 4%943,064 5%(7%)
Loss (gain) on change in fair value of contingent consideration246,325 2%0 0%100%695,402 3%(128,270)(1%)642%
Interest expense and accretion (net of interest income)(37,368)(0%)110,405 1%134%(76,355)(0%)105,686 1%172%
Interest expense from lease liabilities19,475 0%15,318 0%(27%)40,344 0%32,936 0%(22%)
Current and deferred income taxes121,065 1%(84,536)(1%)243%739,325 3%41,366 0%(1687%)
Net income621,451 5%74,579 1%733%783,619 3%1,512,194 8%(48%)
EBITDA (Non-IFRS measure)1,979,464 15%1,023,686 11%93%3,967,211 15%3,390,734 18%17%
Adjusted EBITDA (Non-IFRS measure)2,970,322 23%1,866,563 20%59%5,894,102 23%4,917,582 26%20%
Annual recurring revenue (Non-IFRS measure)41,008,702  31,219,508  31%41,008,702  31,219,508  31%
Term licences, maintenance and support revenue10,210,645 78%7,232,646 76%41%20,208,129 79%12,965,537 69%56%
         As at
         June 30, 2023December 31, 2022
Deferred revenue        24,668,947 15,495,461 
Cash balance        22,944,268 17,452,210 


Software for Health and Human Services providers designed to simplify the user experience and optimize outcomes.

VitalHub provides technology to Health and Human Services providers including Hospitals, Regional Health Authorities, Mental Health, Long Term Care, Home Health, Community and Social Services. VitalHub solutions span the categories of Electronic Health Record (EHR), Case Management, Care Coordination & Optimization, and Patient Flow & Operational Visibility solutions.

The Company has a robust two-pronged growth strategy, targeting organic growth opportunities within its product suite, and pursuing an aggressive M&A plan. Currently VitalHub serves more than 1,000 clients across Canada, USA, UK, Australia, the Middle East, and Europe.

VitalHub is based in Toronto, Canada, with an offshore development hub in Sri Lanka. The VitalHub team comprises more than 350 team members globally. The Company is publicly traded on the Toronto Stock Exchange (TSX) under the symbol "VHI" and on the OTC Markets OTCQX Exchange under the symbol “VHIBF”.


Certain statements contained in this news release may constitute "forward-looking information" or "financial outlook" within the meaning of applicable securities laws that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information or financial outlook. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of the management of each entity and are based on assumptions and subject to risks and uncertainties. Although the management of each entity believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.


Dan Matlow
Chief Executive Officer, Director
(416) 727-9061