Healwell AI (AIDX) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of CAD 5.44 million, up over 204% year-over-year, driven by organic growth and strategic acquisitions including VeroSource and BioPharma.

• Returned to profitability with net income of CAD 2.54 million, reversing a prior year loss, mainly due to liability settlements.

• Strengthened financial position with CAD 20 million equity financing and CAD 8.8 million from warrant exercises, reducing liabilities and debt.

• Launched multiple AI clinical Co-Pilots for rare diseases, chronic kidney disease, oncology, and cardiovascular disease, supporting early disease detection and clinical decision-making.

• Expanded partnerships and commercial agreements, including participation in the Health Compass II project and investment in xAI.

Financial highlights

• Q2 2024 revenue reached CAD 5.44 million, up from CAD 1.79 million in Q2 2023, primarily due to acquisitions.

• Gross profit was CAD 3.31 million, up from CAD 331 thousand year-over-year; gross margin rose to 71% from 19%.

• Adjusted EBITDA loss improved to CAD 3.68 million from a loss of CAD 9.89 million in Q2 2023.

• Net income was CAD 2.54 million, compared to a net loss of CAD 9.81 million in Q2 2023.

• Ended Q2 with CAD 19.8 million in cash, up from CAD 11.34 million in Q1, and reduced debt to CAD 13.2 million.

Outlook and guidance

• Targeting a revenue run rate approaching CAD 100 million by year-end, up from the current CAD 65 million.

• Expects to achieve profitability on an Adjusted EBITDA basis by next year.

• Anticipates Q3 results similar to Q2, with marked EBITDA improvement expected in Q4 as new acquisitions contribute.

• Revenue mix projected to be 10% AI/data science, 30% healthcare SaaS, and 60% clinical research over the next year.

• Growth expected from robust M&A pipeline and increased physician adoption of AI platform.