A couple of medtech companies are experiencing a strong third quarter. Well Health reported quarterly revenues of $99.3 million in Q3, 2021, a breathtaking 711 percent year-over-year increase over the same period in 2020.
At the same time, LifeSpeak – following its IPO earlier this year – announced revenues of $5.9 million, an increase of 135 percent compared to the same period in 2020.
Well said the increase in revenues resulted from the acquisitions of CRH Medical Corporation, and MyHealth Partners Inc., along with a 597 percent year-over-year increase in the company’s virtual services revenue in the quarter.
Hamed Shahbazi, chairman and CEO of Well commented, “We had an outstanding quarter mainly as a result of the growing success of our practitioner enablement platform and strong financial performance from our recent acquisitions.”
Well achieved adjusted gross profit of $50 million, which was almost 10 times the adjusted gross profit as compared to the same period last year. Shabazi also noted that the company has “now accomplished four consecutive quarters of positive adjusted EBITDA, which has experienced significant growth throughout the year.”
Well posted adjusted EBITDA of $22.3 million in Q3, 2021, compared to adjusted EBITDA loss of $0.2 million for the same quarter in 2020.
Well’s stock dropped slightly after its results were announced on November 10 to $6.76 on the TSX.
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Well acquired MyHealth in July for $266.3 million. The primary care, specialty care, telehealth services and accredited diagnostic health services provider owns and operates 48 locations across Ontario. With the acquisition, Well became the largest owner-operator of outpatient medical clinics in Canada with 74 combined clinics at the time of the acquisition.
Well also formed Well Ventures this year to invest in leaders, entrepreneurs, and businesses supporting the global digital health ecosystem, at the same time announcing a $250,000 investment in preferred equity in Bright. Bright is a B2B technology service provider that has developed a virtual amenities wellness program for on-site and work-from-home teams.
Other recent acquisitions in August included a majority stake for 51 percent of Greater Washington Anesthesia Associates, LLC., a provider of GI-related anesthesia services at two locations in North Virginia; a majority stake acquisition for 70 percent of Destin Anesthesia, LLC; and the acquisition of Durham Nuclear Imaging Inc., a nuclear medicine clinic east of Toronto.
In October, Well also completed its $41 million USD acquisition of Wisp, a provider of telehealth and e-pharmacy solutions specializing in women’s health, and which delivers solutions for female reproductive and sexual health ailments to patients across all 50 states in the United States.
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Well Ventures also made a strategic investment of $600,000 in Toronto-based Hasu Behavioural Health Inc, to help increase the demand for mental health services in Canada.
Besides its revenue of $5.9 million, LifeSpeak announced a third quarter adjusted EBITDA of $1.6 million compared to $885,000 in the same quarter of 2020.
“Our third quarter was an exciting period for LifeSpeak, with many significant achievements in all aspects of the business,” said Michael Held, CEO and founder of LifeSpeak. “Our underlying fundamentals remained strong, and we continued to meaningfully increase our client base and annual recurring revenue, while also completing our Initial Public Offering.”
LifeSpeak also reported a net loss of $20.1 million in the third quarter, a decrease of $19.9 million compared to the same period in 2020. The loss was largely due to the costs incurred in relation to its IPO, the company said.
In October, LifeSpeak acquired Lift Digital Inc. for approximately $15 million. Lift is an online wellness company that works to increase overall health through digital wellness and fitness solutions.
LifeSpeak also made the acquisition of Alavida in October. Alavida is an employer-focused cognitive-behavioral therapy and substance use disorder support platform. LifeSpeak paid $7 million for the company, with the potential for up to an additional $5 million earnout based on predetermined 2022 revenue milestones.
The acquisitions are part of LifeSpeak’s post-IPO plans. When the startup went public in July, raising $125 million, LifeSpeak said it would use the proceeds from its IPO to add more services to its platform, bolster its ability to pursue new enterprise clients, make strategic acquisitions, and repay $10 million in outstanding debt.
