Wellteq Digital Health Inc. (CSE:WTEQ) (OTCQB:WTEQF) (the “Company” or “Wellteq”), a leading global provider of digital health and wellness solutions, is pleased to provide the following corporate update.
Digital Health SaaS Revenue Growth and User Growth
Wellteq serves enterprise customers and in doing so generates four revenue streams within the corporate wellness sector, the largest being Software-as-a-Service (SaaS). The Company expects the audited SaaS revenue for the year ended June 30, 2021, to be in the range of CA$1.1M to CA$1.25M representing greater than 100% growth year-over-year from SaaS revenues for the previous year ended June 30, 2020. This SaaS revenue comprises approximately 75% of total revenue which is projected to be in the range of CA$1.5M to CA$1.65M, excluding other income. The revenue increase is derived from the sales pipeline which was developed prior to the receipt of the RTO financing proceeds on March 23, 2021. Revenue is expected to accelerate further through FY2022 now that the Company is deploying invested capital into growing the sales and marketing team. Growing the number of paid subscribers is the primary driver of this growth, and Wellteq is now more assertively investing into sales and marketing to further accelerate the corporate wellness revenue growth rates as well as adding new revenue streams across the continuum of care. The company launched a new website (www.wellteq.co) and commenced a series of digital marketing campaigns this week ahead of Mental Health Month in October and the end of year corporate wellness and insurance renewals in January in the APAC region.
In addition to the expected increase in revenues, Wellteq has experienced an approximately 100% increase in the size of its registered user base, which has increased to 17,092 registered users during the eight-month calendar period ended August 31, 2021, compared to 8,553 registered users during the full calendar year ended December 31, 2020. There are expected to be multiple factors driving user growth going forward, including Wellteq’s largest insurance client, ramping up the deployment of Wellteq’s corporate wellness solutions to over one million of their consumer insurance customers and the acquisition of new large corporate clients. The Company projects user numbers to experience high triple digit growth, or higher, during the current fiscal year ending June 30, 2022.
Growing Client Base of Major Corporate Institutions
In August 2021, Wellteq was proud to announce its first major US corporate client, when Northern Trust commenced the initial deployment of the Wellteq corporate wellness solution to employees in Singapore, Hong Kong, Philippines, and Australia under a global Master Services Agreement (MSA). Northern Trust is the fourth largest financial institution headquartered in the USA (with approximately 20,000 employees globally).
Wellteq’s growing portfolio of major corporate clients including Willis Towers Watson, UBS, DBS, nib Health Funds, Bupa Health Insurance, Northern Trust will enable Wellteq solution access to almost three million lives over the next 2 to 3 quarters.
New Partnerships to Accelerate Premium SaaS Revenue Streams
Wellteq is rapidly expanding its suite of digital behaviour change programs focused on the four pillars of behaviour-based health – sleep, mindset, nutrition, and activity. The Company has partnered with specialist content partners Lifespeak (TSX.LSPK) and Wellness Solutions for mental health, fitness and weight management focused programs and providing preferential access to the world’s largest fitness class network via a corporate partnership with ClassPass. These developments immediately extend capabilities at the wellness end of the continuum of care and are deployed through a sophisticated personalisation engine to target higher value outcomes for employees and insureds. Alongside these wellness programs, Wellteq continues to prepare premium programs for launch in early 2022 that will cater for higher needs users requiring targeted health programs and virtual care.
Continuing Investment in the Team and Technology
Wellteq has grown its team to 33 globally distributed employees in marketing and sales, software and hardware development and customer success operations across Canada, USA, Singapore, and Australia. In addition to day-to-day employees, Wellteq welcomed Ms. Andrea Johnson to its board of directors in July 2021. Andrea brings a deep legal expertise, specializing in mergers and acquisitions for technology companies. Wellteq’s ongoing investment in underlying microservices architecture provides competitive distance and new revenue opportunities through API integrations to a new sector of corporate customers including digital healthcare providers such as telehealth companies.
Strong Treasury with CA$7.1m Cash in the Bank (August 31, 2021)
Wellteq continues to harbor significant cash reserves to fuel advancing growth initiatives, as of August 31, 2021, Wellteq holds CAD$7.15M cash at bank contributing to a total of $7.69M in current assets. These reserves provide the Company with substantial resources to grow revenue organically and inorganically toward positive EBITDA which the Company plans to achieve in FY2023.
Digital Health and Wellness Market Drivers
Wellteq is a digital health platform paid for by employers, insurers and healthcare providers, that algorithmically coaches the four pillars of behavioural health - sleep, mindset, nutrition and activity - for employees, insurance policy holders and healthcare patients.
The need and demand for corporate wellness programs was experiencing consistent growth prior to the pandemic and has only accelerated over the recent 18 months. Corporations are increasingly adopting corporate wellness programs to enhance productivity, decrease turnover, boost employee physical and mental wellbeing, morale and quality of work. The primary focus of corporate wellness initiatives has shifted towards meeting the holistic health requirements of an increasingly remote workforce who are also coping with societal restrictions. The coronavirus outbreak has taken a toll on the mental and physical health of employees by introducing increased job uncertainty and financial stress, heightened health risk or loss of loved ones, and the rising pressures of mixing remote work with domestic responsibilities.
Wellteq Digital Health Inc. is a leading global provider of personalized digital health and wellness solutions across the continuum of care. To learn more, visit http://www.wellteq.co.
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Cautionary Note Regarding Forward-Looking Statements:
This news release contains information or statements that constitute “forward-looking statements.” These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. These statements that are not historical facts and are generally, but not always, identified by words such as “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.
These statements made in this news release are based on management’s assumptions and analysis and other factors that may be drawn upon by management to form conclusions and make forecasts or projections, including management’s experience and assessments of historical trends, current conditions and expected future developments. Although management believes that these assumptions, analyses and assessments are reasonable at the time the statements contained in this news release are made, actual results may differ materially from those projected in any forward-looking statements.
The forward-looking information contained in this news release represents the expectations of Wellteq as of the date of this news release and, accordingly, is subject to change after such date.
The CSE has neither approved nor disapproved the contents of this news release.
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