WELL achieved record quarterly revenues of $243.1 million in Q2-2024, an increase of 42% as compared to Q2-2023 driven by acquisitions and overall organic growth(3) of 21%. WELL achieved record Adjusted EBITDA(1) of $30.9 million in Q2-2024, an increase of 11% as compared to Q2-2023. WELL achieved a record total of 1.4 million patient visits in Q2-2024 an increase of 38% compared to Q2-2023 and representing 5.6 million patient visits on an annualized run-rate basis. WELL's US digital revenues attributable to Circle Medical and Wisp grew organically by 40% to $56.3M in Q2 and achieved $3.5 million in Adjusted EBITDA an improvement of $5.3 million realizing investments made in the previous year. WELL is raising its guidance range for 2024 annual revenue to be between $970 million to $990 million and maintaining Adjusted EBITDA guidance to be in the upper range of $125 million to $130 million, despite higher costs due to our projection of significantly lower share issuances and stock-based incentives. WELL also maintains guidance for Free cashflow available to shareholders to be approximately $55 million. VANCOUVER, BC, Aug. 14, 2024 /PRNewswire/ - WELL Health Technologies Corp. (TSX:WELL, OTCQX:WHTCF) (the "Company" or "WELL"), a digital healthcare company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, is pleased to announce its interim consolidated financial results for the quarter ended June 30, 2024. Hamed Shahbazi, Founder and CEO of WELL, commented, "The second quarter of 2024 exceeded expectations, showcasing the strength of our technology-driven care platforms. We are very pleased to report 42% year-over-year revenue growth, driven by accelerated organic growth of 21% which includes contribution from our absorption program where we recruit clinics to our network for nominal cost. This marks our 22nd consecutive record-breaking revenue quarter, highlighting our sustained momentum. We are proud to once again improve our annual revenue guidance to $970 million to $990 million and report that we are on track to achieve one billion in revenues by the end of 2024 if we include acquisitions that are currently in our acquisition pipeline. Additionally, we are maintaining our guidance on Adjusted EBITDA in the upper range of $125 million to $130 million despite facing additional costs as a result of our projection of materially reduced share issuances for stock-based compensation. We remain focused on enhancing profitability and capital efficiency and continue to project a 30% year-over-year increase in free cash flow to shareholders in 2024. Our strong organic growth and healthy cash flows increasingly allow us to fund acquisitions, earn-outs, and employee incentives with cash. We are still on track to deliver record revenue, Adjusted EBITDA, and Net Income in 2024, while increasing cash flows, reducing debt, improving leverage, lowering share issuances, and decreasing earn-out payments." Mr. Shahbazi further added, "As of the end of Q2-2024, WELL proudly supported a network of over 3,900 providers and clinicians delivering care through our physical and virtual clinics. Our Canadian clinic transformation program continues to drive efficiencies in our clinics systemwide while driving enhanced organic growth. The clinics that have recently joined our network under our M&A or absorption programs are improving in terms of their overall operations and profitability. This success is driven by our focus on cost optimization, digital workflow integration, patient engagement technologies, and the implementation of advanced AI tools such as the ambient AI scribe and various co-pilot technologies powered by our partner HEALWELL AI.  We remain committed to empowering healthcare professionals with the latest in cutting-edge technology." Eva Fong, WELL's Chief Financial Officer, added, "I am proud to announce that during Q2 2024 we paid down $14 million in debt and reduced our leverage ratio to 2.67x for bank debt and 3.45x for all debt including convertible debentures. I'm also pleased to report that we achieved positive IFRS net income in Q2 2024, and notably, our net income remains positive even if we exclude the unrealized gains from our investments in HEALWELL AI. Much of our progress is due to the comprehensive cost-cutting program that was implemented earlier this year that has significantly strengthened our operational efficiency and generated substantial annualized cost savings. In Q2-2024, we generated a record $35.2 million in cash flow from operating activities. In addition to these substantial savings and strong cash flows, this fiscal year we plan to reduce our yearly share dilution to its lowest level ever since being launched as a company. The Company is in an excellent position to continue funding its organic growth and future acquisition plans through cash flows from operations." Second Quarter 2024 Financial Highlights: WELL achieved record quarterly revenue of $243.1 million in Q2-2024, an increase of 42% as compared to revenue of $170.9 million generated in Q2-2023. This growth was mainly driven by organic growth of 21% including clinic absorptions and 16% without absorptions. Adjusted Gross Profit(1) was $107.4 million in Q2-2024, an increase of 18% as compared to Adjusted Gross Profit(1) of $90.8 million in Q2-2023. Adjusted Gross Margin(1) percentage was 44.2% during Q2-2024 compared to Adjusted Gross Margin(1) percentage of 53.1% in Q2-2023. The decline in Adjusted Gross Margin percentage is mainly attributed to the acquisition of businesses in the past year that had lower gross margin percentage. Adjusted EBITDA(1) was $30.9 million in Q2-2024, an increase of 11% as compared to Adjusted EBITDA(1) of $27.8 million in Q2-2023. Adjusted EBITDA to WELL shareholders was $23.0 million in Q2-2024, an increase of 3% as compared to Adjusted EBITDA to WELL shareholders of $22.3 million in Q2-2023. Adjusted Net Income(1) was $12.3 million, or $0.05 per share in Q2-2024, as compared to Adjusted Net Income(1) of $14.4 million, or $0.06 per share in Q2-2023. Net Income was $117.0 million or $0.45 per share in Q2-2024, driven by material unrealized gains of WELL's investment in HEALWELL AI. Free cashflow attributable to WELL shareholders(1) was $8.7 million during Q2-2024, compared to $9.4 million during Q2-2023. Second Quarter 2024 Segmented Results Canadian Patient Services revenue was $76.7 million in Q2-2024, an increase of 42% as compared to $54.2 million in Q2-2023. SaaS and Technology Services revenue was $16.9 million in Q2-2024, an increase of 27% as compared to $13.3 million in Q2-2023. U.S. Patient and Provider Services revenue was $149.5 million in Q2-2024, an increase of 45% as compared to $103.5 million in Q2-2023. Canadian Patient Services Adjusted EBITDA was $9.0 million in Q2-2024, an increase of 2% as compared to $8.9 million in Q2-2023 mainly due to lapping of a number of one-time positive impacts to profitability in Q2-2023. SaaS and Technology Services Adjusted EBITDA was $4.0 million in Q2-2024, an increase of 94% as compared to $2.1 million in Q2-2023. U.S. Patient and Provider Services Adjusted EBITDA was $23.2 million in Q2-2024, an increase of 9% as compared to $21.3 million in Q2-2023. Second Quarter 2024 Patient Visit Metrics: WELL achieved a record 1.4 million patient visits in Q2-2024, an increase of 38% compared to Q2-2023 and representing 5.6 million patient visits on an annualized run-rate basis. Patient visits were comprised of 759,000 patient visits in Canada and 640,000 patient visits in the US. Canadian Patient Services visits increased 41% while US Patient Services visits increased 34%, on a year-over-year basis. Growth in patient visits over the past year was primary driven by organic growth, including the clinic absorption program as well as acquisitions. Total care interactions were 2.1 million in Q2-2024, a year-over-year increase of 48% compared to Q2-2023 and representing 8.4 million total care interactions on an annualized run-rate basis. Q2-24 Q1-24 Q2-23 Q/QGrowth Y/YGrowth Y/Y OrganicGrowth Canada Patient Visits 759,000 733,000 537,000 4 % 41 % 21 % US Patient Visits 640,000 577,000 478,000 11 % 34 % 31 % Total Visits 1,399,000 1,310,000 1,015,000 7 % 38 % 26 % Technology Interactions 622,000 599,000 411,000 4 % 51 % 51 % Billed Provider Hours 83,000 89,000 0 -7 % N/A N/A Total Care Interactions(2) 2,104,000 1,998,000 1,426,000 5 % 48 % 48 % Second Quarter 2024 Business Highlights: On April 30, 2024, the Company announced a five-year collaboration with Microsoft to enhance digital healthcare across North America, integrating Microsoft's cloud and AI with WELL's platform. This partnership focuses on elevating WELL's scalability and operational efficiency, aiming to transform healthcare delivery for large enterprises, including the public sector. The collaboration will also modernize WELL's cloud infrastructure, optimize costs, ensure data security, and integrate Azure OpenAI Service to advance healthcare solutions. On May 2, 2024, the Company announced the launch of the second generation WELL AI Decision Support ("WAIDS"), featuring advanced chronic disease screening for conditions like diabetes and hypertension. This enhanced WAIDS version facilitates patient risk stratification and expands its disease detection capabilities. Powered by HEALWELL AI, the technology aids clinicians in decision-making, addressing chronic diseases that significantly impact Canadians. On June 1, 2024, the Company completed the purchase to acquire all primary care medical clinics operated by Shoppers Drug Mart Inc. ("Shoppers") under "The Health Clinic by Shoppers™" brand. The acquisition included 10 clinics, with over 35 physicians, located in British Columbia and Ontario. Events Subsequent to June 30, 2024: On July 10, 2024, the Company announced the approval of a historic $44 million project, Health Compass II, the largest DIGITAL project ever awarded to advance AI-powered tech enablement for care providers. This initiative, led by WELL and its consortium partners, aims to enhance AI and interoperability in Canadian healthcare. As the lead commercialization partner and first customer, WELL will provide expertise and interoperability, enabling the development of new AI tools to support healthcare providers and improve patient outcomes. On July 17, 2024, the Company announced the launch of its AI-powered co-pilot for cardiologists, powered by HEALWELL AI, to improve the detection of cardiovascular disease (CVD). This co-pilot, an extension of the WELL AI Decision Support (WAIDS) product offering, will be deployed in WELL Diagnostic Centers, Canada's largest cardiology and medical diagnostic group, across over 40 locations in Ontario. This initiative aims to assist cardiologists in identifying high-risk patients, enhancing early detection and management of CVD. Outlook:  WELL anticipates maintaining its strong performance through the remainder of 2024, with a strategic focus on enhancing operations for organic growth and profitability. The Company aims to pursue capital-efficient growth ...