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Cloud DX (TSXV:CDX)(OTCQB:CDXFF), (the "Company") a leading North American provider of virtual care and remote patient monitoring solutions today reports results for the second quarter of fiscal 2021
In addition, the Company will be hosting Its second quarter investor update and earnings call tomorrow, August 17, 2021, at 1:30pm EST. Robert Kaul, Founder and CEO, will be commenting on the Company's earnings and reviewing the most recent contract developments in the second quarter. To register please use the link below:
Click Here to Register for the Earnings Call
Key Developments:
- Subscription revenue increased 39% YTD (3 months - increase of 90%);
- Total revenue increased 8% YTD (3 months- decrease of 40%) despite a significant one-time hardware deployment in the previous year;
- Gross profit increased 184% YTD (3 months - 66%)
- New partnerships YTD in the quarter resulted in YTD access to 27,600 additional patients (3 months - 25,100)
- Inclusion of one-time costs attributed to the Qualifying Transaction impacted expenses;
- 115% increase in operating expenses
- 149% decrease in adjusted EBITDA
Second Quarter Financial Highlights
Year to Date Financial Highlights
Second Quarter Revenue and Gross Profit
In the 3 months ended June 30, 2021 subscription revenue has Increased 90%. Product and professional services revenue is expected to be 'lumpy' in the early stages of growth. Specifically, in 2020 a large Connected Health Kit deployment for an academic study generated an unusual concentration of hardware revenue that has not occurred in 2021. Product revenue attracts a lower gross margin to subscription and professional fees.
Year to Date Revenue and Gross Profit
In the 6 months ended June 30, 2021 subscription revenue Increased 38.6%. Similar to the three month period, product and professional services revenue is expected to be "lumpy" in the early stages of growth. As noted above, in 2020 a large project-based order of Connected Health Kits had no comparison to date in 2021. With a lower proportion of product sales, gross margins increased.
Second Quarter Expenses
In the 3 months ended June 30, 2021 operating expenses increased 115% predominantly as a result of the non-cash stock based compensation expense that was impacted by the requirement to revalue employee stock-based compensation granted at the time of the Qualifying Transaction after prior grants were cancelled. Headcount increased by 26FTE's between June 30, 2020 and June 30, 2021 resulting in an 86.7% increase in the three month salaries and wages spend. Sales, General & Administrative expenses increased $296,447 or 243% as the company continued its efforts to scale.
Year to Date Expenses
In the 6 months ended June 30, 2021, operating expenses increased 115% predominantly as a result of certain cash and non-cash expenditures associated with the RTO; Professional fees were 199% higher due to costs attributable to this transaction; the non-cash stock based compensation expense was impacted by the requirement to revalue employee stock-based compensation granted at the time of the Qualifying Transaction after prior grants were cancelled. Headcount increased by 26 FTEs between June 30, 2020 and June 30, 2021 resulting in a 100% increase In salaries and wages. Sales, General & Administrative expenses Increased $396,347 or 188% as the company continued Its efforts to scale and office expenses increased $57,245 or 24% as a result of the expanded space leased in Kitchener, Ontario.
ACCESS TO PATIENTS
Through continually partnering with healthcare providers, Cloud DX has access to patients suited to its remote patient monitoring products as follows:
| Number of patients as at January 1, 2021 | 3,700 |
| Additional patients in Q1, 2021 | 2,500 |
| Additional patients in Q2, 2021 | 25,100 |
| Number of patients as at June 30, 2021 | 31,300 |
As of the date of this report and largely due to the recent partnership with Dagamma eCommerce Systems Inc., Cloud DX now has access to in excess of 100,000 patients.
About Cloud DX
Accelerating virtual healthcare's future, Cloud DX is making healthcare better for everyone. The company's Connected Health remote patient monitoring platform is used by healthcare enterprises and care teams across North America to virtually manage chronic disease, enable ageing in place and deliver hospital-quality post-surgical care. Providers partnering with Cloud DX achieve better healthcare and patient outcomes, reduce the need for hospitalization/re-hospitalization and reduce the costs of healthcare delivery through more efficient use of resources. Cloud DX is the co-winner of the Qualcomm Tricorder XPRIZE, a 2021 Edison Award winner, a Fast Company "World Changing Idea" finalist and one of "Canada's Ten Most Prominent Telehealth Providers."
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cloud DX Investor Site: https://ir.clouddx.com/overview/default.aspx
Social Links
Twitter: https://twitter.com/CloudDX
Facebook https://www.facebook.com/clouddxinc/
LinkedIn https://www.linkedin.com/company/cloud-dx/
Instagram https://www.instagram.com/cloud.dx/
For media inquiries, please contact:
Ellyn Winters-Robinson
Ignition Communications (PR for Cloud DX)
519-574-2196
ellyn@ignition.ca
For investor inquiries, please contact:
Jay Bedard
Cloud DX Investor Relations
647-881-8418
jay.bedard@CloudDX.com
SOURCE: Cloud DX Inc.
View source version on accesswire.com:
https://www.accesswire.com/660021/Cloud-DX-Reports-Fiscal-Second-Quarter-Results
