Good morning. My name is Julie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Carebook Q2 2024 Results Conference Call. All lines have been placed on mute to prevent any background noise. Please take note of this notice with regards to forward-looking statements and financial outlook assumptions. The company will make forward-looking statements and share its financial outlook on the call today. Forward-looking statements, including the company's financial outlook, are based on assumptions and therefore subject to risks and uncertainties that could cause actual results to differ materially from those projected. Carebook undertakes no obligation to update these statements except as required by law. You can read the cautionary notice and find out more about these risks and uncertainties in the company's press release distributed this morning, as well as in their filings with Canadian regulators on SEDAR+. The company will also make reference to certain non-IFRS measures and key performance indicators on their call today. These measures are not standardized financial measures under IFRS and do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing future understanding of results of operating from management's perspective. Accordingly, these measures should not be considered in isolation, nor as a substitute for analysis of the financial information reported by the company under IFRS. You can read the cautionary notice and find out more about these measures in the company's press release distributed this morning, as well as in their filings with Canadian regulators on SEDAR+. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press Star, then the number one on your telephone keypad. If you'd like to withdraw a question, please press star two. Thank you, Mr. Michael Peters, CEO of Carebook Technologies. You may begin your conference. Thank you, operator, and good morning to all of you on the phone and on the webcast. Welcome to Carebook's Q2 2024 results call. With me this morning is Olivier Giner, our Chief Financial Officer. On today's call, I will take you through our highlights for the quarter and discuss our outlook going forward. Olivier will take you through our Q2 financials, and we will open it up for questions. Q2 2024 was definitely an important quarter as we continued to solidify our operations and build a strong foundation in the employer health and wellness vertical. We steadily executed our business plans and continued making progress with software implementations affecting key accounts, helping several significant clients continue the development of their offerings that target the employer market and onboarding new users via the Core Health platform. These efforts broadened our footprint in the employer vertical and confirmed the strong demand for health and wellness services continues to exist. This expansion of our licensed user base resulted in 37% revenue growth year over year in the quarter, a significant step forward for our business. We also continued to focus on our cost reduction strategies, finding further efficiencies within our cost structure, thereby improving our margins and operating cash flows. Regarding our pharmacy solution, during the quarter, we were successful in launching the pharmacy app for another banner of our major pharmacy client in the province of Quebec, and are now running our pharmacy solution for two of their banners in the province of Quebec for a total of three banners across Canada. The expansion of our relationship with this client is a reflection of the superior service and technical abilities offered by our team. During the quarter, we made significant improvements to our standardized offering, solidifying our plans to announce the release of significant new features before the end of Q3. Our new standardized offering targets the direct to employer segment, showcases a revamped user experience, and includes a preset library of questionnaires, challenges, and content, all available on a nearly self-serve model, requiring little or no implementation. We expect our new standardized product offering will appeal to small and medium businesses and some large employers, helping to accelerate adoption and consequently shorten our current sales cycles. Our CoreHealth platform continues to serve a diverse array of employers with a broad range of employee populations, including those employers who have chosen to offer their employees wellness benefits through major insurance programs. CoreHealth has rapidly established itself as a leading provider of innovative technology solutions that seamlessly connect employees and member populations to their wellbeing programs. CoreHealth's market-leading customization capabilities ensure that organizations can create unique wellbeing initiatives and programming to meet the specific needs of their employee populations, ultimately driving long-term success and employee satisfaction. In the employer segment, in addition to our normal course implementations, we continue to help our clients add users over and above their contractual minimums during the quarter, which continued to directly impact revenue positively. The value-added resellers act as a distribution partner for us and have been incredible partners, driving user adoption and organic revenue growth. The strong demand for health and wellness services that target the employer market has continued to grow and validates our strategic decision to emphasize this market as the means to accelerate our growth for the future. Our quarterly results reflect a positive trend in the employer vertical as we benefit from the successful integration of our acquisitions of InfoTech and CoreHealth and the implementation of new clients wanting the employer vertical. Major companies across North America and Europe are recognizing Carebook for the innovative and powerful digital health and wellness solutions we offer that can provide meaningful relief to the challenges faced by their clients and employees. When coupled with the significant work launching new banners for our major pharmacy clients and our ongoing efforts to find efficiencies within our cost structure, Carebook continues its path towards delivering profitable growth. We expect the organic revenue growth trend to continue in twenty twenty-four, and we will remain focused on managing our costs with the objective of minimizing cash burn and increasing our profit margins in the coming months. Carebook's financial outlook continues to be positive for twenty twenty-four. Although we cannot predict all the challenges faced by the business this year, we believe we are on course to deliver Adjusted EBITDA breakeven or better in fiscal twenty twenty-four. I will now turn it over to Olivier Genet to review our Q2 financials. Olivier? Thanks, Michael, and good morning, everyone. We reported strong revenue again for the second quarter ended June thirtieth, 2024. Revenue was CAD 3.7 million, compared to CAD 2.7 million for the quarter ended March thirty-first, the quarter ended June thirtieth, 2023, an increase of 37%, which was mostly driven by strong organic growth in the pharmacy vertical and an increase in licensed revenue from CoreHealth, offset by a decrease in licensed revenue at InfoTech. Revenue generated in the second quarter, ended June thirtieth, 2024, was 65% from the employer vertical and 35% from a large client in the pharmacy vertical. Pharmacy revenue was strong as a result of three statements of work in place with our key pharmacy client. We expect pharmacy revenue to remain at or near current levels during fiscal 2024, but it could fade thereafter. Recurring revenue from the employer vertical business is expected to continue to increase during 2024, following the implementation of several large customers during 2023 and in recent months, and the addition of a significant number of users beyond contractual minimums. Our large value-added resellers have been successful ramping up their platforms and adding eligible users, which directly translated into additional revenue for us and will continue to work in partnership with our value-added resellers to help them add users to their installed base. We also have projects currently in or soon entering the implementation pipeline in the employer vertical. During the quarter, the company continued to implement cost reduction measures, resulting in additional recurring savings. These initiatives, when combined with the strong revenue growth that the company is experiencing, helped the company reduce its use of cash from operations that are getting the company closer to durable profitability. The loss from operations for the quarter ended June thirtieth, 2024, was CAD 0.5 million, compared to a loss from operations of CAD 0.7 million incurred in the same period of 2023, an improvement of CAD 0.2 million. The decrease in loss from operations was due to significantly higher revenue, offset by higher research and development costs and slightly higher sales and marketing costs. Adjusted EBITDA loss for the second quarter of 2024 was CAD 0.1 million. Relative to the second quarter of 2023, adjusted EBITDA improved by CAD 0.1 million, reflecting stronger revenues and disciplined cost management. The Adjusted EBITDA margin for the second quarter of 2024 was minus 3%, compared to an Adjusted EBITDA margin of minus 9% in the second quarter of 2023. Net loss was CAD 0.7 million for the quarter ended June thirtieth, 2024, compared to a net loss of CAD 0.7 million for the quarter ended June thirtieth, 2023. At the end of the quarter ended June thirtieth, 2024, annual recurring revenue was CAD 12.1 million, an increase of 14% over the same date in 2023. Regarding our credit facility, we have continued to repay the term loan at the rate of CAD 50,000 a month, with approximately CAD 1 million remaining at the end of Q2 2024. Regarding the revolving facility, we had approximately CAD 2 million drawn at the end of the quarter, but most of it had been repaid by now, and we collected significant receivables since the end of the quarter. The company continues to enjoy significant remaining borrowing capacity under the credit facility. Regarding our fundraising efforts, to recap on recent initiatives, as previously disclosed, we raised CAD 1.25 million in equity from UIL, our largest shareholder, through a private placement that closed in Q1 2023. We also raised another CAD 1.25 million in equity from Permanent Mutual Limited, affiliate of UIL, through a private placement that closed in Q2 2023. We also raised CAD 2 million in convertible debentures from UIL through a private placement that closed in Q4 2023. The credit facilities and the priva placements provide Carebook with the necessary flexibility in order to carry on with operations, and we continue to evaluate various financing opportunities and alternatives until the company becomes permanently profitable. Carebook's financial outlook continues to be positive for twenty twenty-four. The company is poised to achieve continued revenue growth while effectively managing its costs and delivering sustained growth in cash flows. Carebook's strong organic growth and efficient cost management initiatives will allow the company to continue to successfully execute on its strategy. Carebook is expecting to maintain strong performance in twenty twenty-four for the entire company as a whole. To complement its organic growth strategy, Carebook will continue to seek out accretive acquisitions and partnerships to improve the accessibility, quality, and functionality of its comprehensive solutions, surrounding ecosystem, and supporting services. Carebook has adopted a disciplined approach towards exploring strategic M&A opportunities in order to grow its reach in other markets and offer new services to its customer base while maintaining a focus on its organic growth. This wraps up my remarks regarding the quarter end results. You can find our unaudited interim condensed financial statements with notes and MD&A for the quarter ended June thirtieth, twenty twenty-four, on SEDAR+. And with that operator, we're ready to take questions now. Thank you, ladies and gentlemen. If you'd like to ask a question, please press star one. To withdraw your question, press star two. Again, to ask a question, press star one. One moment, please, for your first question. Once again, if you'd like to ask a question, please press star one. There are no questions at this time. I will turn the call back over to Michael Peters for closing remarks. Sorry. Thank you, operator. Our quarter-end results confirm the trend exhibited since the beginning of twenty twenty-four and validate our success in both the employer and pharmacy verticals. We are looking at a positive outlook as we meet the demands of major companies across North America and Europe, seeking out innovative and powerful digital health and wellness solutions. Thank you again for your participation. Olivier and I are available at any time to answer any further questions you may have. Have a great day. Operator, this concludes the call. Ladies and gentlemen, this concludes today's conference call. You may now disconnect. Thank you.
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