WELL Health revenue increased 484 percent in Q2 2021, bolstered by acquisition strategy

a group of five people is meeting in a board room with the logo of the Well Health company on the wall

WELL Health Technologies is seeing its acquisition strategy pay off, as the digital health company reported a sizeable increase in its year-over-year revenue and profit in the second quarter of 2021.

In its second-quarter financial report, WELL recorded $61.8 million in revenue, an increase of 484 percent from the same period last year when the company generated $10.6 million. WELL’s adjusted gross profit for the quarter came in at $30.2 million, representing a 615 percent increase compared to $4.2 million in Q2 2020.

“Our practitioner enablement platform and momentum around our acquisitions are delivering extremely strong financial results.”

The company attributed much of the growth in the quarter to its acquisition strategy, mainly the purchase of Vancouver-based CRH Medical earlier this year, which represents WELL’s largest acquisition to date.

WELL also attributed its revenue growth to its virtual services, which accounted for $12.5 million of the $61.8 million revenue, and grew by 432 percent year-over-year.

Founded in 2010, WELL Health is an acquisitive Toronto Stock Exchange-listed healthcare IT company. It owns and operates software and telehealth services as well as a portfolio of primary healthcare facilities in Canada and the United States.

The company has made around 20 acquisitions overall and has a sizeable portfolio of virtual care services and in-person clinics. This summer, the company completed its acquisition of Ontario health service provider MyHealth, which it claims made it the largest owner-operator of outpatient medical clinics in Canada, with 74 combined clinics.

WELL’s list of purchased companies also includes Intrahealth, Ottawa-based ExecHealth, and Toronto-based Adracare, the latter of which is the startup that came from the former Toronto healthtech company Orbcare, which went bankrupt in 2019.

CRH Medical accounted for $36.7 million of revenue during the quarter. The company also positively impacted WELL’s adjusted EBITDA, which was $11.9 million for Q2 2021 compared to a loss of $0.5 million for the same period last year.

CRH Medical is a New York Stock Exchange-listed company that provides anesthesia for patients that undergo endoscopic procedures. Although based in Canada, CRH Medical operates mainly in the United States. Vancouver-based WELL said it purchased CRH Medical at a transaction value of $467 million.

“Our practitioner enablement platform and momentum around our acquisitions are delivering extremely strong financial results,” said Hamed Shahbazi, chairman and CEO of WELL.

The CEO claimed WELL’s acquisitions of CRH Medical and MyHealth put the company on track to pull in proforma annualized revenue of almost $400 million and an adjusted EBITDA run-rate “approaching” $100 million.

Seeing the sizeable returns from its investments in companies, WELL has moved to reinforce that strategy, recently launching a corporate investment arm to formalize its approach to making strategic minority investments in digital health and wellness startups.

WELL Ventures is being led by the same corporate development team that leads the company’s merger and acquisition efforts, and will invest in “all areas of health and wellness,” including digital health apps, practitioner enablement tools, executive health, wellness initiatives, patient portal technologies, remote patient monitoring, and mental health-related services.

WELL’s record of investing in early-stage digital health companies includes Toronto’s INSIG, Phelix.ai, Pillway, Twig Fertility, and Halifax-based healthtech startup Bright.

Looking to next quarter, WELL is expecting its revenue and EBITDA growth will continue “as a result of a full quarter of CRH contribution and the acquisition of MyHealth,” which closed on July 15. The company plans to focus on building and refining its practitioner enablement platform in order to deploy its services both internally to WELL healthcare practitioners, as well as offer its services to healthcare practitioners.

WELL also plans to continue with its acquisition strategy. The company noted in its report that it has an active pipeline of acquisition opportunities of both clinical and digital assets.

The company has also pointed to plans for a United States public listing later this year, that could make WELL a dual-listed company.

Feature image courtesy of WELL Health

Meagan Simpson

Meagan Simpson

Meagan is the Senior Editor for BetaKit. A tech writer that is super proud to showcase the Canadian tech scene. Background in almost every type of journalism from sports to politics. Podcast and Harry Potter nerd, photographer and crazy cat lady.

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