WELL Health Technologies (WELL) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of CAD 251.7 million, up 23% year-over-year, surpassing a CAD 1 billion annualized revenue run-rate ahead of plan, with strong organic growth in both Canadian and U.S. businesses.

• Adjusted EBITDA reached CAD 32.7 million, up 16% year-over-year and 6% sequentially; adjusted free cash flow to shareholders rose 69% year-over-year and 85% quarter-over-quarter, totaling CAD 16.1 million.

• Network expanded to 4,000 providers and clinicians, with 1.5 million patient visits in Q3 2024, a 41% increase year-over-year.

• Canadian patient services revenue grew 35% year-over-year; U.S. patient services revenue increased 21–25% year-over-year.

• 2024 annual revenue guidance raised to CAD 985–995 million, with adjusted EBITDA expected in the upper half of CAD 125–130 million.

Financial highlights

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

• Adjusted EBITDA of CAD 32.7 million, up 16% year-over-year; adjusted net income was CAD 13.05 million.

• Adjusted free cash flow to shareholders was CAD 16.1 million, or CAD 0.065 per share, up 69% year-over-year.

• IFRS net loss of CAD 75.8 million due to unrealized losses on HEALWELL AI investment; adjusted net income positive.

• Revenue per share reached CAD 1.01 in Q3 2024.

Outlook and guidance

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

• Adjusted EBITDA guidance maintained at upper half of CAD 125–130 million; adjusted free cash flow to shareholders expected at CAD 55 million.

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

• Strategic review processes underway for Wisp and Circle; potential spinout of WELL Provider Solutions.

• Focus on capital-efficient growth, cost optimization, and reducing debt while maintaining strong cash flow.