- Third quarter 2021 revenue of
$5.9 million , an increase of 135% compared to the same period in 2020 - Third quarter 2021 Adjusted EBITDA of
$1.6 million , an increase of 76% over the same period in 2020 - Client count increase of 42% to 270 as at
Sept. 30, 2021 , compared to 190 as atSept. 30, 2020 ; includes a total of 12 embedded solutions clients - Completed a
$125.0 million Initial Public Offering on theToronto Stock Exchange - Subsequent to quarter end, completed the acquisition of LIFT session and ALAViDA to further enhance the
LifeSpeak technology platform, service offering and client base
"Our third quarter was an exciting period for
Consolidated Business Highlights for the Three and Nine Months Ended September 30, 2021
(All capitalized terms not defined herein shall have the meaning ascribed to them in the Management's Discussion and Analysis for the three and nine months ended
- On
July 6, 2021 , completed a$125.0 million Initial Public Offering of shares on theToronto Stock Exchange and subsequently repaid$10 million of non-revolving term loan. - Third quarter 2021 revenue reached
$5.9 million , an increase of 135% compared to the same period in 2020, representing a continuing trend of growth in the adoption of the Company's platform. - Nine-month 2021 revenue reached
$16.4 million , an increase of 138% compared to the same period in 2020. - Annual Recurring Revenue (ARR) of
$24.0 million as atSeptember 30, 2021 , an increase of 128% over the same date in 2020, representing a continuing trend of growth in ARR. - Third quarter 2021 Adjusted EBITDA of
$1.6 million , an increase of$0.7 million , or 76%, over the same period in 2020. - Nine-month 2021 Adjusted EBITDA of
$5.7 million , an increase of$3.7 million , or 187%, over the same period in 2020. - LTM Adjusted EBITDA margin of 36% as at
September 30, 2021 . - Third quarter 2021 net loss of
$20.1 million , a decrease of$19.9 million compared to the same period in 2020, largely due to the costs incurred in relation to our IPO. - Third quarter 2021 Adjusted Net Income of
$1.3 million , an increase of$0.5 million over the same period in 2020. - Total client count of 270 as at
September 30, 2021 , a 42% increase when compared to 190 at the same date in 2020. - Notable enterprise client additions for the quarter included
Lego Group (USA ),R.R. Donnelley (USA ), McKesson Corporation (Canada ),Majorel Group (Europe ), Celestica (International), and Canaccord Genuity (International) bringing the Company's total enterprise client count to 258 at the end of Q3. - Embedded solution segment momentum continued through the third quarter as global growth accelerated with the addition of new embedded partnerships such as
Humana (USA) and ICAS Digital Health Limited (UK ), bringing the Company's total embedded client count to 12 at the end of Q3.
Highlights Subsequent to Quarter End
- Following the end of the third quarter,
LifeSpeak demonstrated its focus on executing a disciplined acquisition strategy by completing the acquisition of LIFT session, a B2B-focused physical wellness technology platform, and ALAViDA, an employer-focused cognitive-behavioral therapy and Substance Use Disorder support platform. - The LIFT acquisition was announced on
October 12th , and was completed for total consideration of$15.0 million , consisting of$9.5 million in cash and approximately 550,000 common shares of the Company issued at the initial public offering price of$10.00 per share. - The ALAViDA acquisition was announced on
October 14th , and was completed for a$7.0 million cash payment, with the potential for up to an additional$5.0 million earnout based on predetermined 2022 revenue milestones. - Including LIFT and ALAViDA, the Company's pro forma results giving effect to these acquisitions would have been:
- Third quarter 2021 revenue of
$6.8 million ; - ARR of
$27.3 million ; and - Unique client count of 295
- Following the end of the third quarter,
LifeSpeak continued to execute on its global expansion strategy, signing enterprise client agreements withBruce Power (Canada ), CIUSS de laCapitale Nationale (Canada) andBanner Health (USA ), among others. The Company has also signed additional high profile embedded client agreements, including with Safe Harbor Health (USA ).
Upcoming Events
TD Securities Virtual Technology Conference (November 15/16, 2021)Canaccord Genuity Health & Wellness Conference (November 16, 2021 )Roth Capital Technology Conference (November 18, 2021 )Desjardins Digital Healthcare Conference (November 30, 2021 )
Financial Results for the Three and Nine Months Ended September 30, 2021
Selected Consolidated Financial Information (In thousands of Canadian dollars) |
Three Months Ended | Nine Months Ended | |||||||||
2021 | 2020 | 2021 | 2020 | ||||||||
Revenue | 5,921 | 2,519 | 16,428 | 6,907 | |||||||
Less: | |||||||||||
Product Development and Content | 671 | 156 | 1,455 | 648 | |||||||
Gross Profit................................................. | 5,250 | 2,363 | 14,974 | 6,258 | |||||||
Gross Profit Margin (1) | |||||||||||
Gross Profit Margin...................................... | 89% | 94% | 91% | 91% | |||||||
Deduct Expenses: | |||||||||||
Sales and marketing..................................... | 2,525 | 872 | 6,150 | 2,621 | |||||||
General and administrative......................... | 2,151 | 607 | 4,960 | 2,870 | |||||||
Share-based compensation.......................... | 3,865 | -- | 5,198 | -- | |||||||
Foreign exchange loss (gain)....................... | (103) | 109 | (26) | 172 | |||||||
Depreciation................................................. | 28 | 14 | 56 | 42 | |||||||
8,466 | 1,602 | 16,339 | 5,705 | ||||||||
Income (loss) before restructuring and other costs and finance expense........................................... | (3,216) | 761 | (1,365) | 553 | |||||||
Restructuring and other costs (2).................. | 16,587 | 888 | 17,502 | 1,327 | |||||||
Finance expense, net................................... | 273 | 65 | 611 | 212 | |||||||
Income (loss) before income taxes............. | (20,076) | (192) | (19,478) | (987) | |||||||
Income taxes (recovery) .............................. | -- |
-- | -- | -- | |||||||
Net income (loss) ......................... | (20,076) |
(192) | (19,478) | (987) | |||||||
Non-IFRS Measures | |||||||||||
Adjusted Gross Profit (3).............................. | 5,336 |
2,363 | 15,060 | 6,258 | |||||||
Adjusted Gross Profit Margin (4).................. | 90% |
94% | 92% | 91% | |||||||
EBITDA (5)..................................................... | (19,775) |
(113) | (18,810) | (732) | |||||||
Adjusted EBITDA (6) ..................................... | 1,561 |
885 | 5,653 | 1,967 | |||||||
Adjusted Net Income (Loss) (7).................... | 1,260 |
806 | 4,986 | 1,713 | |||||||
(1) | Gross profit margin is calculated as gross profit divided by revenue for the relevant period. |
(2) | Restructuring and other costs are costs related to the entry into of the Company's credit agreement and recapitalization distributions and expenses related to the investment by the |
(3) | "Adjusted Gross Profit" has the meaning ascribed herein under "Non-IFRS Measures and Key Performance Indicators". |
(4) | Adjusted gross profit margin is calculated as adjusted gross profit divided by revenue for the relevant period. |
(5) | "EBITDA" has the meaning ascribed herein under "Non-IFRS Measures and Key Performance Indicators". |
(6) | "Adjusted EBITDA" has the meaning ascribed herein under "Non-IFRS Measures and Key Performance Indicators". |
(7) | "Adjusted Net Income (Loss)" has the meaning ascribed herein under "Non-IFRS Measures and Key Performance Indicators". |
Conference Call Notification
The Company will hold a conference call to provide a corporate update on
Nolan Bederman , Executive ChairmanMichael Held , CEOMichael McKenna , CFO
A question-and-answer session will follow the corporate update.
CONFERENCE CALL DETAILS | |
DATE: | |
TIME: | |
DIAL-IN NUMBERS: | 1-226-828-7575 or toll free at 1-833-950-0062 |
REFERENCE NUMBER: | 452313 |
This live call is also being webcast and can be accessed by going to:
https://event.on24.com/wcc/r/3409395/3DE7852C17B20840C4F46EE4E771762B
An archived replay of the webcast will be available for two weeks by clicking the link above.
Non-IFRS Measures and Key Performance Indicators
LifeSpeak supplements its results of operations determined in accordance with IFRS with certain non-IFRS financial measures and key performance indicators that the Company believes are useful to investors, lenders and others in assessing its performance and which highlight trends its core business that may not otherwise be apparent when relying solely on IFRS measures. LifeSpeak management also uses non-IFRS measures and key performance indicators for purposes of comparison to prior periods, to prepare annual operating budgets, for the development of future projections and earnings growth prospects, to measure the profitability of ongoing operations and in analyzing our financial condition, business performance and trends. As such, these measures and indicators are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective, including how it evaluates its financial performance and how it manages its capital structure. LifeSpeak also believes that securities analysts, investors and other interested parties frequently use these non-IFRS measures and key performance indicators in the evaluation of issuers. These non-IFRS measures and key performance indicators are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and may include or exclude certain items as compared to similar IFRS measures, and such measures may not be comparable to similarly-titled measures reported by other companies. Accordingly, these measures and indicators should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.
Non-IFRS Measures
Adjusted Gross Profit
"Adjusted Gross Profit" is defined as gross profit before bonus accruals for certain employees recorded in period, that relate to previous periods.
Selected Consolidated Financial Information (In thousands of Canadian dollars) |
Three Months Ended | Nine Months Ended | ||||
2021 | 2020 | 2021 | 2020 | |||
Gross Profit................................. | 5,250 | 2,363 | 14,974 | 6,258 | ||
Add: | ||||||
IPO specific adjustments related to salaries and | 86 | -- | 86 | -- | ||
Adjusted Gross Profit........ | 5,336 | 2,363 | 15,060 | 6,258 | ||
Adjusted gross profit margin (1) . | 90% | 94% | 92% | 91% |
(1) | Adjusted gross profit margin is calculated as adjusted gross profit divided by revenue for the relevant period. |
EBITDA
"EBITDA" is defined as net profit or loss before income tax expenses, finance costs and depreciation and amortization
Adjusted EBITDA
"Adjusted EBITDA" is defined as EBITDA before non-recurring restructuring and other costs related to the entry into of the Company's credit agreement and recapitalization distributions, expenses related to the investment by the
Selected Consolidated Financial Information (In thousands of Canadian dollars) |
Three Months Ended |
Nine Months Ended | |||||
2021 | 2020 | 2021 | 2020 | ||||
Net income (loss)........................ | (20,076) | (192) | (19,478) | (987) | |||
Add: | |||||||
Depreciation expense.................. | 28 | 14 | 56 | 42 | |||
Finance expense.......................... | 273 | 65 | 611 | 212 | |||
Income tax expense.................... | -- | -- | -- | -- | |||
EBITDA (1)................................... | (19,775) | (113) | (18,810) | (732) | |||
Add: | |||||||
Restructuring and other costs (2) | 16,587 | 888 | 17,502 | 1,327 | |||
Share-based compensation......... | 3,865 | -- | 5,198 | -- | |||
Foreign exchange loss (gain) ..... | (103) | 109 | (26) | 172 | |||
Shareholders distributions (3)....... | -- | -- | 600 | 1,200 | |||
Additional one-time costs (4) | 987 | -- | 1.189 | -- | |||
Adjusted EBITDA (5)................ | 1,561 | 885 | 5,653 | 1,967 | |||
(1) | "EBITDA" has the meaning ascribed herein under "Non-IFRS Measures and Key Performance Indicators". |
(2) | Restructuring and other costs are costs related to the entry into of the Company's credit agreement and recapitalization distributions and expenses related to the investment by the |
(3) | Shareholders distributions includes private company legacy profit sharing payment to shareholders. |
(4) | One-time costs related to IPO specific adjustments related to salaries and benefits. |
(5) | "Adjusted EBITDA" has the meaning ascribed herein under "Non-IFRS Measures and Key Performance Indicators". |
Adjusted Net Income
"Adjusted Net Income (Loss)" is defined as net income (loss) before non-recurring restructuring and other costs related to the entry of the Company's credit agreement and recapitalization distributions, expenses related to the investment by the
Selected Consolidated Financial Information (In thousands of Canadian dollars) |
Three Months Ended | Nine Months Ended | ||||
2021 | 2020 | 2021 | 2020 | |||
Net income (loss)........................ | (20,076) | (192) | (19,478) | (987) | ||
Add: | ||||||
Restructuring and other costs (1) | 16,587 | 888 | 17,502 | 1,327 | ||
Share-based compensation......... | 3,865 | -- | 5,198 | -- | ||
Foreign exchange loss (gain) ..... | (103) | 109 | (26) | 172 | ||
Shareholders distributions (2)....... | -- | -- | 600 | 1,200 | ||
Additional one-time costs (3) ...... | 987 | -- | 1,189 | -- | ||
Adjusted Net Income (Loss) (4) | 1,260 | 806 | 4,986 | 1,713 |
(1) | Restructuring and other costs are costs related to the entry into of the Company's credit agreement and recapitalization distributions and expenses related to the investment by the |
(2) | Shareholders distributions includes private company legacy profit sharing payment to shareholders. |
(3) | One-time costs related to IPO specific adjustments related to salaries and benefits. |
(4) | "Adjusted Net Income (Loss)" has the meaning ascribed herein under "Non-IFRS Measures and Key Performance Indicators". |
Key Performance Indicators
Annual Recurring Revenue
"Annual Recurring Revenue" or "ARR" is equal to the annualized value of contracted recurring revenue from all clients of our platform at the date being measured. Contracted recurring revenue is revenue generated from clients who are, as of the date being measured, party to contracts with
About
Forward-Looking Information
This press release includes "forward-looking information" within the meaning of applicable securities laws. Such forward-looking information includes, but is not limited to, information with respect to our objectives and the strategies to achieve these objectives, as well as information with respect to our beliefs, plans, expectations, anticipations, estimates and intentions.
In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology and phrases such as "forecast", "target", "goal", "may", "might", "will", "could", "expect", "anticipate", "estimate", "intend", "plan", "indicate", "seek", "believe", "predict", or "likely", or the negative of these terms, or other similar expressions intended to identify forward-looking information, including references to assumptions. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts nor guarantees or assurances of future performance but instead represent management's current beliefs, expectations, estimates and projections regarding possible future events, circumstances or performance.
Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that, while considered reasonable by
SOURCE
© Canada Newswire, source