WELL Health Technologies (WELL) Q2 2024 earnings summary

Executive summary

• Achieved 22nd consecutive record-breaking revenue quarter, with Q2 2024 revenue up 42% year-over-year to CAD 243.1 million, driven by 21% organic growth and acquisitions; adjusted EBITDA up 11% to CAD 30.9 million.

• Net income reached CAD 117 million, primarily due to significant unrealized gains from investment in HEALWELL AI; net income remains positive even excluding these gains.

• Record 1.4 million patient visits in Q2, up 38% year-over-year, with strong growth in both Canada and the U.S.

• Raised 2024 annual revenue guidance to CAD 970–990 million and maintained adjusted EBITDA guidance at CAD 125–130 million.

• Continued focus on capital efficiency, debt reduction, and minimizing share dilution.

Financial highlights

• Q2 2024 revenue grew 42% year-over-year to CAD 243.1 million; adjusted EBITDA increased 11% to CAD 30.9 million.

• Adjusted Gross Profit was CAD 107.4 million (+18% YoY); Adjusted Gross Margin was 44.2%, down from 53.1%.

• Free cash flow to shareholders was CAD 8.7 million in Q2, with guidance for CAD 55 million for the year, a 30% increase year-over-year.

• Shareholder leverage ratio improved to 2.67x at Q2 end, down from 2.75x in Q1.

• Cash and equivalents at quarter-end were CAD 46.5 million; total debt from credit lines was approximately CAD 289 million.

Outlook and guidance

• Raised annual revenue guidance to CAD 970–990 million; organic growth rate including absorptions expected at 15.4% for 2024.

• Maintained adjusted EBITDA guidance at CAD 125–130 million and free cash flow guidance at CAD 55 million.

• Second half of the year expected to be stronger for EBITDA generation.

• Focus on organic and strategic growth, capital efficiency, and further debt reduction.

• Continued investment in AI technologies and digital workflow integration.