Vitalhub (VHI) Q4 2024 earnings summary

Executive summary

• Annual recurring revenue (ARR) rose 59% year-over-year to CAD 71.1 million, with 15% organic growth and 40% from acquisitions.

• Q4 revenue reached CAD 20.6 million, a record high, with adjusted EBITDA over CAD 5 million and organic ARR growth of CAD 2.6 million.

• Four acquisitions closed in 2024 contributed $17.9 million in ARR, expanding the ARR base to over CAD 70 million.

• Strong cash position of CAD 56.6 million at year-end, with an additional CAD 34.5 million raised post-year-end.

• No debt and expanded borrowing capacity to CAD 65 million, supporting continued organic and acquisition-driven growth.

Financial highlights

• Q4 total revenue: CAD 20.6 million, up 51% year-over-year.

• Recurring revenue: CAD 17.17 million (86% of total), up from CAD 11.3 million (83%) prior year.

• Gross margin: 81% in Q4, down from 83% prior year.

• Net income before taxes: CAD 0.2 million, down from CAD 2 million prior year, impacted by CAD 2.6 million in acquisition and restructuring charges.

• Adjusted EBITDA: CAD 5 million (25% margin) in Q4, up from CAD 4 million (29%) prior year.

Outlook and guidance

• Well-capitalized for further acquisitions and organic growth in 2025, with management expecting continued M&A activity.

• Q1 typically strong for ARR build; pipeline remains robust but guidance remains conservative.

• Organic ARR growth target may be raised from CAD 800k–1.5 million to CAD 1.1–1.8 million per quarter.

• Focus remains on cross-selling, adding new clients, and expanding cash flow margins post-acquisition.

• Continued focus on operational efficiency and sales productivity tools in 2025.