WELL Health Technologies (WELL) Q2 2024 earnings summary

Executive summary

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

• Net income reached CAD 117 million, primarily due to unrealized gains from 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.

• Strategic initiatives include spinning out Provider Solutions as a public company, reducing share dilution, and major AI partnerships.

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

Financial highlights

• Q2 2024 revenue: CAD 243.1 million (+42% YoY); adjusted EBITDA: CAD 30.9 million (+11% YoY); adjusted gross profit: CAD 107.4 million (+18% YoY); adjusted gross margin: 44.2%.

• Free cash flow to shareholders was CAD 8.7 million in Q2, with guidance for CAD 55 million for the year (+30% YoY).

• Net debt to shareholder EBITDA ratio improved to 2.67x at Q2 end, with $13.9M–$14M of debt paid down in Q2.

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

• Adjusted net income (excluding one-time impacts) grew 13% year-over-year.

Outlook and guidance

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

• 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.

• Continued investment in AI technologies and digital workflow integration.