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Canada's Healwell AI Q3 adjusted EBITDA up 144%

By Reuters News


Overview

  • Canada healthcare AI firm's Q3 revenue rose 7% yr/yr to C$32.6 mln

  • Adjusted EBITDA jumped 144% to C$1.6 mln, helped by lower operating expenses

  • Net loss from continuing operations was unchanged at C$16.0 mln


Outlook

  • Company expects recurring revenue from multi-year Converge Health Iowa agreement

  • Company aims to expand cross-sell of AI solutions to grow recurring revenue

  • Company expects to realize SpaceX investment within 12 months to strengthen liquidity


Result Drivers

  • OPERATING EXPENSE REDUCTION - Co said a 7% reduction in total operating expenses contributed to improved margins

  • RECURRING REVENUE GROWTH - Co attributed growth in recurring revenue to deployments of DARWEN AI in healthcare software platforms


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

C$32.58 mln

Q3 Net Loss

C$15.90 mln

Q3 Gross Profit

C$17.07 mln

Q3 Income From Operations

-C$6.28 mln

Q3 Net Loss CONT OPS

C$16.04 mln

Q3 Operating Expenses

C$23.34 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

  • Wall Street's median 12-month price target for Healwell Al Inc is C$1.75, about 161.2% above its November 9 closing price of C$0.67


Reuters Recommended Reads

  • Nov 9 - WELL Health Q3 revenue rises 12% on Canadian Patient Services growth

  • Nov 9 - Canada's AbCellera Q3 revenue beats analyst estimates

  • Nov 9 - Quanterix Q3 revenue rises 6.3% sequentially


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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