Think Research sees 142 percent rise in Q1 revenue fuelled by acquisitions, “major contract wins”

A doctor wearing a white coat holding a phone in their hands.
Despite Omicron-related “setbacks,” Think Research sees strong Q1 revenue growth.

Following an acquisition-filled 2021, Think Research posted strong year-over-year (YoY) revenue growth and a higher net loss during the first quarter of 2022.

The Toronto-based healthtech firm generated record revenue of $20.2 million during Q1—a 142 percent jump compared to the same period last year, and a six percent increase relative to Q4 2021. The company’s net loss also rose to $6.2 million in the first quarter, up from $5 million the prior year.

Think Research’s CEO said the Q1 results prove the firm’s diversified revenue streams give it “resilience and greater sustainability.”

Think Research’s Q1 revenue growth was fuelled by its acquisitions and a rise in the company’s software and data revenue, which Think Research chalked up to “recent major contract wins.” It also came despite a decline in revenue across the company’s other segments, which Think Research attributed to “delays in clinical research and clinical service operations associated with the Omicron outbreak.”

At the same time, Think Research’s organic growth and revenue increase did not offset an associated increase in the company’s acquisition-related costs, operating expenses, and finance costs, lending to its increased YoY first-quarter net loss, which was down relative to Q4.

“We are very pleased to report record revenue for the first quarter of 2022, which we achieved despite facing some program setbacks in clinical research and clinical services caused by the Omicron COVID-19 outbreak in January,” said Think Research CEO Sachin Aggarwal, adding that the company’s Q1 results prove that Think Research’s diversified revenue streams give it “resilience and greater sustainability.”

Founded in 2006, Think Research is an acquisitive healthcare software company that buys and develops point-of-care and clinical decision support tools for enterprise clients, hospitals, health regions, healthcare professionals, and governments. Think Research claims its data service caters to over 300,000 doctors, nurses, and pharmacist users across more than 13,000 enterprise healthcare facilities. Last year, Think Research acquired four companies, including Bio Pharma Services, Pharmapod, MDBriefCase, and Clinic 360.

Think Research’s stock trading at $0.68 at time of publication. The company, which trades on the TSX Venture Exchange (TSXV) as ‘THNK,’ has seen its share price increase 1.5 percent since its Q1 earnings were disclosed this morning. Think Research continues to trade far below its December 2020 high of $4.66.

RELATED: Think Research posts record 438 percent revenue increase in Q4 2021 following acquisitions

These Q1 results follow a strong Q4 2021 for Think Research, which generated $19.1 million in revenue—a rise of 438 percent YoY—and a net loss of $7.6 million, an improvement relative to the $13.1 million the company lost during the same period in 2020.

During 2021 as a whole, Think Research saw 178 percent revenue growth YoY, drawing in $47.8 million. However, 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 TSXV. Since the release of last year’s results at the beginning of this month, Think Research’s stock price has fallen about 15 percent.

Think Research isn’t the only publicly-traded Canadian healthtech company that has seen its stock price drop in recent months, as Montréal-based digital health firm Dialogue and Toronto-based employee wellness software firm LifeSpeak have faced similar fates. San Francisco’s Doximity has also experienced comparable headwinds, amid a broader tech stock rout fuelled by geopolitical tensions and rising interest rates that has also heavily impacted healthtech companies.

Following the end of the first quarter, Think Research announced the departure of its CFO, and secured a new $25 million credit facility to fuel its acquisition efforts, organic growth investments, and serve as working capital.

Think Research subsidiary MDBriefcase also signed a $4.1 million software and data agreement with an undisclosed top 20 global pharmaceutical company.

Feature image by National Cancer Institute via Unsplash.

Josh Scott

Josh Scott

Josh Scott is a BetaKit reporter focused on telling in-depth Canadian tech stories and breaking news. His coverage is more complete than his moustache.

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