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Transformational Year Puts Company on Track for Growth
Revenue for the year up 62% to $5.7 million compared to $3.5 million for year ended December 31, 2020
3.5 million members currently connected on Carebook platform
Company implements significant measures to better align its cost structure resulting in a 34% reduction in headcount and expected reduction in annualized expenses of approximately $5.0 million
Integrations of InfoTech acquired in Q2 2021 and CoreHealth acquired in Q3 2021 substantially completed with additional opportunities for expansion and synergies identified
Company shift in strategic focus to the Employer vertical offering comprehensive suite of assessment and wellness solutions for medium to large employers receives validation as $3.5 million in new contracts signed ranging from two to five years in length since November 1, 2021 including new contracts announced with LifeLabs and Air Canada
Pharmacy vertical success solidified as the Be Well app used in the Rexall Pharmacies in Canada shows continued strong approval ratings in the marketplace
Rights Offering & Stand-by Commitment Agreement announced on April 11, 2022
MONTREAL, May 2, 2022 /CNW Telbec/ - Carebook Technologies Inc. ("Carebook" or the "Company") (TSXV: CRBK) (OTCPK: CRBKF) (XFRA: PMM1), a leading Canadian provider of innovative digital health solutions today announced its results for year ended December 31, 2021.
"2021 was a transformational year for Carebook," commented Michael Peters, Carebook CEO. "With the successful acquisitions and integrations of Wellness Checkpoint (InfoTech) and CoreHealth, we are now in a position to offer one of the most comprehensive suite of digital health solutions to the employer market. The announcement of contract wins with market leading companies like Air Canada and LifeLabs has confirmed the decision to devote our resources to the fast-growing employer vertical. In fact, the Air Canada contract caps a record five months for our company with regards to new orders received. We have booked $3.5 million in new sales ranging from two to five years in length since November 1, 2021. These contracts are from a diverse base of clients located in the U.S. and Canada and represent only the start of what we see as the company's significant potential to become a leader in this space."
Integration of Acquisitions Substantially Completed
On April 6, 2021, Carebook completed the acquisition of InfoTech, doing business as Wellness Checkpoint®, a global web-based service used by many Global Fortune 500 companies in over 100 countries that is translated into 26 languages. InfoTech's proprietary software platform Wellness Checkpoint®, IP and metrics are supported by advanced analytics and focus on employees' physical health, mental health and well-being, and their impact on work and business effectiveness. Representative clients include multinational companies in the aerospace, financial, food processing, technology, pharmaceutical, manufacturing and resource sectors, many of whom have been utilizing the platform for over ten years.
On August 6, 2021, Carebook completed its acquisition of CoreHealth. The CoreHealth solution is an industry leading platform that powers health and wellness programs. CoreHealth offers corporate wellness providers and group benefits providers a robust technology platform-as-a-service to power programs and engage employees with various interventions like coaching, self-directed programs, group challenges, and habit trackers. The platform offers over 30 services in the form of APIs including scheduling, teleconferencing, questionnaires, content feeds, messaging and more. These services are offered by an expanding network of direct health and wellness providers and resellers. The technology is flexible, configurable, scalable, and easy to integrate.
Carebook's acquisitions of InfoTech and CoreHealth establish the Company as a leader in the provision of digital health and wellness with customers across the globe. Carebook is delivering on its stated objective to be the connector to a new model of healthcare. With the integration of these acquisitions substantially completed late in 2021, the Company can now offer a wide range of best-in-class health and wellness assessments and solutions to add depth to its offerings targeting employers and insurers. Both InfoTech's Wellness Checkpoint® platform and CoreHealth's leading wellness technology platform are used by global businesses of significant size, providing considerable market recognition and validation. The combination of these solutions allows Carebook to offer employers not only the means to assess and understand their employees' health challenges, but also to provide specific, targeted, and customized solutions to improve employee health, wellness, and productivity.
The Be Well app used in the Rexall Pharmacies in Canada on iOS, Android and web was launched in May 2020. The launch and subsequent usage of the app has been a success and users have been responding positively to the platform. As at April 2, 2022, App Store ratings (iOS users) were 4.5/5 stars, and Google Store (Android users) were 4.6/5 stars. During the first quarter of 2022, the Be Well program maintained an average Net Promoter Score of 75%.
Additional Fiscal 2021 Highlights
In November 2021, the Company implemented significant measures to better align its cost structure to reflect the Company's strategic shift towards the employer vertical, the integration of its acquisitions of InfoTech and CoreHealth, and an improved approach to capital discipline. These initiatives resulted in a 34% reduction in the Company's headcount since the start of the third quarter and are expected to reduce annualized expenses by approximately $5.0 million.
In November 2021, the Company promoted Mathieu Lampron, its Chief Product Officer, to the additional position of Chief Operating Officer. Mr. Lampron possesses approximately 15 years of experience within the software industry.
On November 26, 2021, Alasdair Younie, a representative of UIL Limited ("UIL"), which was the lead investor in the Company's recent $11.3 million equity offering, was appointed as a director of the Company.
On December 22, 2021, the Company closed a secured loan agreement with each of SAYKL Investments Ltd. and UIL, the Company's largest shareholders, for $1.0 million in aggregate gross proceeds.
Revenue for the year ended December 31, 2021, was $5.7 million, compared to $3.5 million for the year ended December 31, 2020, an increase of $2.2M or 62% which is driven by the acquisitions of InfoTech and CoreHealth. Revenue generated in 2020 was entirely from the pharmacy vertical, whereas revenue generated in 2021 was 52% pharmacy and 48% employer. Revenue generated from the employer vertical is expected to surpass that of the pharmacy vertical in 2022.
Total comprehensive loss
Total comprehensive loss was $19.3 million for the year ended December 31, 2021, compared to a loss of $10.9 million for the year ended December 31, 2020, an increase of $8.4 million. The loss from operations increased by 38% from $7.5 million in 2020 to $10.3 million in 2021. While the acquisitions generated additional operating expenses due to the increase in headcount and other expenses, these costs were partially offset by the increase in revenue generated from the same acquisitions. The Company recognized impairment totaling $7.2 million during the fourth quarter which drove the increase in total comprehensive loss for the year ended December 31, 2021.
Rights Offering and Stand-by Commitment Agreement
On April 11, 2022, Carebook announced an offering of rights to holders of its common shares ("Rights Offering") of record at the close of business on April 19, 2022. Pursuant to the Rights Offering, each holder of common shares received one transferable right for each common share held. Every 1.5917452 rights entitles a holder to purchase one common share at a price of $0.15 per common share. In connection with the Rights Offering, the Company has entered into a stand-by commitment agreement with UIL, guaranteeing the Company to receive the maximum gross proceeds that may be raised by the Company under the Rights Offering of $4.5 million. Full details of the Rights Offering may be found in the Rights Offering circular dated April 11, 2022, which is available under Carebook's profile on SEDAR at www.sedar.com.
Conference Call Details
A conference call will be held at 8:30 AM Eastern on May 2, 2022 to discuss Carebook's year end financial results. Participants may join the Company's conference call by using an appropriate dial-in number or via webcast (ID: 9128251). For those unable to participate, playback will be made available an hour after the event at 647-436-0148, or 1-888-203-1112, utilizing passcode 9128251.
Carebook's audited consolidated financial statements and accompanying notes, and Management's Discussion and Analysis for the year ended December 31, 2021 are available on the Company's website at www.carebook.com and on SEDAR at www.sedar.com.
About Carebook Technologies
Carebook's digital health platform empowers its clients and more than 3.5 million members to take control of their health journey. During 2021, the Company completed the acquisitions of InfoTech Inc., a global leader in health and productivity risk management, and CoreHealth Technologies Inc., owner of an industry-leading wellness platform. In combination, these companies create an end-to-end digital health platform that includes both assessment tools and the technology to deliver complementary solutions. Carebook's shares trade on the TSXV under the symbol "CRBK," on the OTC Markets under the symbol "CRBKF," and are listed on the Open Market of the Frankfurt Stock Exchange under the symbol "PMM1."
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Notice regarding forward-looking statements:
This news release includes forward-looking information and forward-looking statements within the meaning of Canadian securities laws regarding Carebook, its subsidiaries and their business. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward looking information in this news release may relate to our anticipated events or results and may include information regarding our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate, the achievement of advances in and expansion of our platform, expectations regarding our revenue and the revenue generation potential of our solutions, our future profitability, our expected acquisition outcomes and synergies is forward-looking information. Such statements are based on the expectations of the management of Carebook as at the date of this news release and are based on assumptions and subject to risks and uncertainties. Although the management of Carebook believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and undue reliance should not be placed on such forward-looking statements. The forward-looking statements reflect the Company's current views with respect to future events based on currently available information and are inherently subject to risks and uncertainties. The forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company, including economic factors, management's ability to manage and to operate the business of Carebook, management's ability to successfully integrate the Company's recently completed acquisitions and to realize the synergies of such acquisitions, management's ability to successfully complete product studies, the equity markets generally and risks associated with growth and competition, as well as the risk factors identified in the Company's management's discussion and analysis for the year ended December 31, 2020 and described under the heading "Item 21 – Risk Factors" in the Listing Application of the Company dated September 28, 2020, each of which can be found on SEDAR under the Company's profile at www.sedar.com. Although Carebook has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements or information. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Carebook does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. In addition, the current situation and future developments with respect to the COVID-19 pandemic could cause certain of the assumptions and information set forth herein or the fact that on which such assumptions are based to differ materially from previous expectations including in respect of demand for our products, access to debt and equity capital and other factors.
SOURCE Carebook Technologies Inc.
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