06:23:13 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Dialogue Health Technologies Inc
Symbol CARE
Shares Issued 66,015,926
Close 2022-08-10 C$ 3.83
Market Cap C$ 252,840,997
Recent Sedar Documents

Dialogue Health loses $8.38-million in Q2 2022

2022-08-10 17:57 ET - News Release

Mr. Cherif Habib reports

DIALOGUE HEALTH TECHNOLOGIES REPORTS SECOND QUARTER 2022 RESULTS

Dialogue Health Technologies Inc. today released its financial and operational results for the three and six months ended June 30, 2022. Financial references are in Canadian dollars unless otherwise indicated.

"Dialogue continued to execute well and delivered solid revenue growth, winning further market share across all our services," said Cherif Habib, chief executive officer of Dialogue. "With the acquisition of Tictrac, we made significant progress on our journey towards becoming a holistic platform, adding prevention to our existing physical and mental health treatment solutions. We launched an early access version of our new wellness service, which has been progressing rapidly in Canada and generating much interest from our customers. We also strengthened our two largest partnerships and are well positioned to keep delivering on our growth objectives."

Navaid Mansuri, chief financial officer, added: "In the first half of the year, we took important steps to drive efficiencies in our operations, and this has begun to show in our second quarter performance. We implemented further pricing increases and are pleased with the low customer churn, a testament to our great value proposition. Thanks to our healthy balance sheet, we are sufficiently capitalized to reach our profitability targets in 2023 while continuing to invest in the growth of our business and innovating for our customers, as well as exploring further M&A opportunities."

Q2 2022 financial highlights

  • Annual recurring and reoccurring revenue (ARR) grew 38.7 per cent year over year to $97.1-million, driven largely by new customer wins and supplemented by a partial quarter of contribution from the acquisition of Tictrac Ltd. New customer wins include a global leader in information management that adopted the company's primary care service, a multinational HR (human resources) consultancy and a provincial non-profit organization that signed on for the company's employee assistance program (EAP), and a large Canadian financial advisory firm that added the company's full integrated health platform. Dialogue also saw several important program expansions and the addition of new services by existing customers, including a provincial Crown corporation that added the company's EAP and mental health, and a North American leader in transportation and logistics that added Dialogue's EAP.
  • Revenue in the second quarter of 2022 increased by 38.3 per cent year over year to $23.0-million, due to growth in members, both direct and from agreements with strategic distribution partners, an increase in the attach rate as existing customers add more services, and the acquisition of Tictrac.
  • Members grew to nearly 2.4 million, an increase of approximately 950,000, or 65.1 per cent, year over year, and more than 350,000, or 17.3 per cent, compared with the first quarter of 2022. Excluding the contribution from Tictrac, members grew 46.8 per cent year over year to 2.1 million.
  • Attach rate grew to 1.52 from 1.10 in the second quarter last year.
  • Member-service units (MSUs), which the company defines as total members multiplied by the attach rate, rose 128.1 per cent year over year to more than 3.6 million from approximately 1.6 million in the second quarter last year. Excluding the contribution from Tictrac, MSUs grew 110.9 per cent year over year to nearly 3.4 million. This meaningful increase demonstrates the success of Dialogue's land and expand strategy, as both existing and new customers continue to leverage the company's platform.
  • Sixty-five per cent of new direct members signed up for two services or more in the second quarter of 2022. Combined with current customer expansions, the cumulative number of direct members with two or more services was 24 per cent at the end of the second quarter of 2022, compared with 18 per cent at the same time last year and 21 per cent at the end of the fourth quarter of 2021.
  • Average monthly net retention rate (NRR) was 100.4 per cent for the second quarter of 2022, marking another consecutive quarter of NRR greater than 100 per cent. Churn within the company's mid-market and enterprise customer segments remained low in the period at approximately 1,500 members.
  • Gross margin increased to 49.7 per cent, compared with 41.5 per cent in the second quarter of 2021, as the company realized efficiencies in its operations, implemented pricing increases to eligible customers, continued to scale its mental health service and EAP, migrated additional customers from Optima to its Dialogue EAP, and integrated Tictrac's higher-margin wellness service.
  • Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss was $4.8-million, compared with a loss of $5.7-million in the same period last year. The smaller loss was due to higher gross profit and strong cost control, partially offset by a deficit at Tictrac.
  • Net loss was $8.4-million, compared with $6.7-million in the same period last year. The larger loss was primarily due to higher share-based payments expense year over year, to costs related to the Tictrac acquisition and to a foreign exchange loss of $1.3-million as the euro and British pound sterling both depreciated meaningfully during the period in relation to the Canadian dollar.
  • Cash and cash equivalents were $61.1-million as of June 30, 2022, compared with $104.3-million as of Dec. 31, 2021. The decrease was the result of cash used in operations during the first six months of the year as well as the initial cash outlay to close the acquisition of Tictrac.

Q2 2022 business highlights and subsequent events

  • On April 13, 2022, Dialogue acquired London, United Kingdom-based, Tictrac for up to $56-million (35 million pounds sterling), subject to certain earnout conditions. Tictrac is a SaaS-(software-as-a-service)-based provider of a global health and wellness platform that enables healthier living for everyone. The transaction was closed successfully on April 30, 2022.
  • On April 21, 2022, the company launched Mental Health+, a program that streamlines Dialogue's existing mental health services and emphasizes seamless integration of varying levels of intervention across the care continuum.
  • On May 16, 2022, Melissa Kennedy was elected to Dialogue's board of directors. Ms. Kennedy is executive vice-president, chief legal officer and public affairs at Sun Life, where she is responsible for the global legal, compliance, corporate secretarial and public affairs functions. Ms. Kennedy is also Sun Life's executive sponsor of sustainability.
  • Subsequent to quarter-end, on July 4, 2022, Sun Life added Dialogue's mental health service to its Lumino Health Virtual Care platform, complementing its existing primary care, EAP and iCBT offering. This additional service is available on an opt-in basis and now permits the company's largest insurance partner to offer Dialogue's full suite of fully integrated services.
  • For a third consecutive year, the company has been certified as a Great Place to Work organization by Great Place to Work Canada. This employee-validated recognition positions Dialogue well to get noticed as an employer of choice and attract great talent, while branding Dialogue as a company that cares and wins the attention and loyalty of customers.
  • The company was recognized by Great Place to Work in the 2022 Best Workplaces in Canada, 2022 Best Workplaces for Today's Youth and 2022 Best Workplaces for Giving Back categories.

Upcoming events

  • Canaccord Genuity 42nd Annual Growth Conference in Boston on Aug. 11, 2022;
  • CIBC 21st Annual Eastern Institutional Conference in Montreal on Sept. 21, 2022.

Notice of conference call

Dialogue will host a live video webinar on Thursday, Aug. 11, 2022, at 8 a.m. ET to discuss its financial results. Cherif Habib, chief executive officer, and Navaid Mansuri, chief financial officer, will co-chair the call. All interested parties can join the event, which is available in the events and presentations section of the company's website. The presentation will be accompanied by slides, which will be available on the screen view and will be made available prior to the start of the webinar on the company's website. Please connect at least 15 minutes prior to the event to ensure adequate time for any software download of Zoom that may be required to attend the event. Listeners that prefer to dial in by phone will be provided with dial-in details by e-mail upon registration.

About Dialogue Health Technologies Inc.

Incorporated in 2016, Dialogue is Canada's premier virtual health care and wellness platform, providing affordable, on-demand access to quality care. Through its team of health professionals, the company serves employers and organizations who have an interest in the health and well-being of their employees, members, and their families. The company's Integrated Health platform is a one-stop health care hub that centralizes all of its programs in a single, user-friendly application, providing access to services 24 hours per day, 365 days per year from the convenience of a smartphone, computer or tablet.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.