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WELL Health Announces Preliminary Results for Q4

WELL Health Technologies Corp (TSE: WELL) provided preliminary results for the fourth quarter of fiscal 2021 on Thursday. 

Strong Growth in Patient Visits

WELL is expected to demonstrate strong financial performance supported by significant growth in patient visits.  

The company ended the fourth quarter and full-year 2021 with annualized revenue exceeding C$450 million and annualized adjusted operating EBITDA approaching C$100 million.  

WELL’s revenue growth was better than previously provided guidance “approaching C$450 million annualized revenue run-rate.” Q4 2021 results benefited from strong organic growth in the company’s omnichannel Patient Services and Virtual Services segments.  

In addition, WELL completed its acquisition of control of Wisp, a leading virtual care and online pharmacy solution specializing in women’s health, early in the fourth quarter of 2021, which also contributed to positive results in the quarter among other small complementary transactions. 

WELL achieved a total of 692,913 omnichannel patient visits in Q4 2021, representing a year-over-year increase of 121% from Q4 2020 and 19% from Q3 2021.

Combining omnichannel patient visits from WELL, diagnostic visits from MyHealth, and asynchronous patient visits from Wisp, WELL reached a total of 965,294 patient interactions in Q4 2021, which represents 3.86 million patient interactions annually. 

CEO Commentary

WELL Health chairman and CEO Hamed Shahbazi said, “We are very pleased to provide this update to shareholders as WELL’s business has never been stronger as evidenced by our solid patient visit metrics, a key leading indicator of our financial performance and profitability given the historically resilient per unit economics of our patient services business. With our strong balance sheet and positive cash generation profile, WELL is favourably positioned to continue to grow both organically and inorganically. We believe revenue, Adjusted EBITDA and cashflow are key metrics to watch as we expected them to continue to rise on a per share basis. We are looking forward to reporting our Q4 and full year financials, which we believe will continue to demonstrate continued strong financial performance and cashflow generation metrics.” 

The company also indicated that it would reactivate its normal course issuer bid announced last April, following the dramatic drop in the share price in recent weeks. The program should be reactivated after the publication of its 2021 financial results. 

Wall Street’s Take 

On January 4, TD Securities analyst David Kwan kept a Buy rating on WELL and lowered its price target to C$9 (from C$11). This implies 108.3% upside potential.   

Overall, WELL scores a Strong Buy consensus rating based on five Buys. The average WELL Health price target of C$10.33 implies 139.2% upside potential to current levels.  

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