Healwell AI (AIDX) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of CAD 13.7 million, up 738% year-over-year, driven by acquisitions and increased pharma partner activity.

• Completed four rounds of financing totaling nearly CAD 50 million and four acquisitions, expanding reach and capabilities in healthcare AI and data science.

• Developed and launched four AI copilots for disease detection, doubling signed master service agreements (MSAs) with life sciences companies year-over-year.

• Positioned as an end-to-end partner for the pharmaceutical industry, integrating AI with CRO capabilities and accelerating commercialization of AI-enabled patient identification and healthcare data solutions.

• Secured five new MSAs in Q3, now generating revenue from 23 of 27 pharma/life sciences partners, including seven of the top 10 global pharma companies.

Financial highlights

• Q3 2024 revenue reached CAD 13.7 million, up from CAD 1.6 million in Q3 2023, primarily due to acquisitions.

• Adjusted gross profit was CAD 5.9 million, up from CAD 0.3 million year-over-year, with gross margin improving to 43% from 20% in Q3 2023.

• Adjusted EBITDA loss was CAD 3.4 million in Q3 2024, compared to a loss of CAD 2.5 million in Q3 2023.

• Net loss was CAD 11.1 million, compared to CAD 7.7 million in Q3 2023.

• Ended Q3 with CAD 15.2 million in cash, with potential to reach CAD 39 million if all in-the-money warrants are exercised.

Outlook and guidance

• Expecting Q4 revenue to be incrementally higher than Q3, with BioPharma facing headwinds due to industry-wide impacts from the Inflation Reduction Act.

• Targeting an annualized revenue run rate approaching CAD 100 million by year-end, with profitability on an Adjusted EBITDA basis expected in 2025.

• Management expects further M&A announcements by year-end and anticipates continued organic growth and further accretive acquisitions.