Well Health would have achieved a major financial milestone in 2024 if it weren’t for two key factors, the company said in an earnings statement.
Well Health said it was well positioned to execute on a “deep M&A pipeline” in 2025.
The Vancouver healthtech firm reported annual revenue of $919.7 million CAD in 2024, but said it was “on track” to reach $1 billion. However, it had to defer recognition of $56.6 million in revenue from Circle Medical, an American telehealth company it acquired in 2020 through a majority stake.
Well Health also had to account for the “collection uncertainty” of $24.5 million from CRH Medical, a company Well Health bought in 2021, related to a February 2024 cyberattack against Change Healthcare, a UnitedHealth Group subsidiary that serves as CRH’s main billing provider. The ransomware-based breach is considered the largest of its kind reported in the United States (US) and compromised the data of roughly 100 million people. The incident delayed collections for several months last year.
Well Health said it expects the Circle Medical revenue to be recognized sometime in 2025. CRH’s amount will be recognized if and when it collects funds from patients and third-party payors once the brand finalizes a settlement with Change Healthcare for the cyberattack.
Well Health still saw its annual revenue climb 19 percent year-over-year in 2024, but noted that its revenue would have grown 29 percent if it weren’t for the Circle Medical and CRH issues. The company added that its adjusted earnings (EBITDA) were $46.7 million for the year versus $113.4 million for 2023, but were “on track” to reach $127 million.
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Patient visits were up 32 percent year-over-year to 5.7 million, Well Health said. The company maintained that the “vast majority” of this increase came from organic growth. Canada played a key role with 20-percent organic growth.
Well Health also said it expected a “strong” 2025 thanks to the products from its solutions-based Wellstar subsidiary as well as Healwell AI, a New Zealand-based strategic partner it plans to control by acquiring the majority of the voting interest this year. It’s anticipating annual revenue between $1.4 billion to $1.45 billion, with adjusted earnings between $190 million and $210 million.
“We ended the year with a strong balance sheet as a result of our positive cashflow and are well positioned to execute on a deep M&A pipeline and ambitious agenda in 2025,” according to Well Health CFO Eva Fong.
Feature image courtesy National Cancer Institute via Unsplash.