WELL Health Technologies (WELL) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly revenue, Adjusted EBITDA, free cash flow, patient visits, and organic growth in Q3 2024, surpassing a $1 billion annualized revenue run-rate ahead of plan.

• Q3-2024 revenue reached $251.7 million, up 27% year-over-year, driven by 23% organic growth.

• Adjusted EBITDA was $32.7 million, up 16% year-over-year; Adjusted Free Cash Flow to shareholders was $16.2 million.

• Total patient visits reached 1.5 million in Q3-2024, up 41% year-over-year, with strong growth in both Canada and the US.

• Canadian Patient Services revenue grew 35% and US Patient Services revenue increased 21% year-over-year.

Financial highlights

• Q3-2024 revenue was $251.7 million, up 23% from Q3-2023; revenue from continuing operations rose 27%.

• Adjusted Gross Profit was $112.3 million, up 19% year-over-year; Adjusted Gross Margin was 44.6% in Q3-2024.

• Adjusted EBITDA to shareholders was $25.1 million, up 10% year-over-year; Adjusted Net Income was $13.0 million ($0.05/share).

• IFRS net loss of $75.8 million due to unrealized losses on investments; adjusted net income was positive at $13.05 million.

• Adjusted Free Cash Flow to shareholders was $16.2 million, or $0.065 per share, up from $9.6 million last year.

Outlook and guidance

• 2024 annual revenue guidance raised to $985–$995 million, reflecting recent acquisitions and organic growth.

• Adjusted EBITDA guidance maintained at the upper half of $125–$130 million; Adjusted Free Cash Flow to shareholders expected at $55 million.

• Expecting record revenue, Adjusted EBITDA, net income, and free cash flow for 2024.

• Strategic review of US virtual care assets (Wisp and Circle Medical) ongoing.

• Anticipate continued strong M&A activity, with 17 signed LOIs and a robust pipeline.