Think Research capped off an acquisition-filled 2021 with significant growth in the fourth quarter.
The Toronto-based healthtech firm disclosed its Q4 and full-year 2021 earnings today, sharing that it pulled in $19.1 million in revenue in the fourth quarter—a 438 percent rise compared to the same period in 2020. The company’s net loss in Q4 was $7.6 million, an improvement relative to the $13.1 million it lost during the fourth quarter of 2020.
Think Research CEO Sachin Aggarwal described 2021 as a “transformative year” for the company.
During 2021 as a whole, Think Research saw 178 percent revenue growth year-over-year, drawing in $47.8 million. The company also saw its annual losses nearly triple, posting a $29 million net loss on the year, compared to the $10 million loss it recorded in 2020, when the firm first went public on the TSX Venture Exchange as ‘THNK.’
Think Research CEO Sachin Aggarwal described 2021 as a “transformative year” for the company, highlighting that its results were fuelled by Think Research’s acquisition and integration of four different strategic assets and new contracts. According to Aggarwal, these moves bolster Think Research’s “scale and position as a leader in the delivery of knowledge-based health technology.”
“We are very pleased to report a significant improvement in our bottom line for the fourth quarter, driven by our record fourth-quarter revenue along with capturing nearly $6 million in annualized synergies,” said Aggarwal.
The company reported that it achieved these “annualized cost synergies” by reducing its headcount and offering shared services.
Founded in 2006, Think Research is an acquisition-focused healthcare software company that develops and buys tools and content for clinicians.
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In 2021, Think Research spent a significant sum making four acquisitions, acquiring Bio Pharma Services, Pharmapod, MDBriefCase, and Clinic 360.
Think Research attributed its improved Q4 net loss to an increase in revenue and gross profit related to its acquisitions, which it said were partially offset by a rise in amortization on acquired intangibles and higher non-cash stock-based compensation.
The company opened the day trading at $0.84 per share on the TSXV, but has seen its stock price drop to $0.80 at time of publication following the release of its earnings—a fraction of its December 2020 high of $4.66.
Think Research recently secured a new $25 million credit facility to support its acquisitive growth strategy. The announcement came shortly after Think Research disclosed the departure of its CFO.
Feature image from Pixabay.