News Release 8-13-2020
Impressive News 7-28-2020:
DOCRF Signs Definitive Agreement To Acquire South Surrey Medical Clinic
A $250 billion telehealth revolution is here – putting CloudMD (STOCK: DOCRF) in the fast lane for significant growth potential.(1)
The very same growth potential that sent Teladoc Health up 600% in just two years, and Livongo Health up nearly 175% over the last three months.
The best part – there are plenty of catalysts.
In fact, according to a an Updox survey, out of 2,000 adults, 42% have used telehealth services since the pandemic began. Of those, 65% say it’s because telehealth visits are far more convenient to attend. Up to 63% said they like telehealth because it limits potential exposure to other patients.(1)
“Following the current pandemic, telehealth will no longer be a ‘plus’ or ‘nice to have’ for practices — it will become a requirement to stay in business. Virtual care and contactless offices will transform the way healthcare is provided, in response to both provider and patient concerns and preferences,” said Michael Morgan, CEO, Updox.
“Today’s healthcare providers are seeking modern, impactful ways to maximize patient engagement, improve outcomes and enable more timely, efficient connections between patients and their trusted physicians. The experience must be consistent whether the visit is virtual or in office. Consumers have spoken to say this will be an expectation post-COVID.”
Teladoc Health just announced it will acquire Livongo Health in a deal valued at $18.5 billion.(3)
“The deal would combine one of the leaders in the telehealth market with a growing digital health firm that targets chronic disease management. In a release, the companies said the combination represents a “transformational opportunity to improve the delivery, access and experience of healthcare for consumers around the world,” reported Fierce Healthcare.
CloudMD (STOCK:DOCRF) just announced it entered into a binding agreement to acquire 100% of a U.S. based medical clinic serving chronic care patients as a part of its broader strategy for entering the U.S. market with its comprehensive suite of telehealth products.
The company also just signed a definitive agreement to acquire South Surrey Medical Inc., which has been able to streamline healthcare services and provide longitudinal and team-based patient centric care by offering a number of medical services from one location. The clinic operates with 24 healthcare professionals, including, 12 physicians across various specialties including mental health, women’s health, sports medicine, gynecology and psychiatry.
Better, CloudMD will also acquire 100% of Snapclarity Inc. to expand its telehealth offerings to include mental health.
“The COVID-19 pandemic is the most serious public health emergency of our lifetime and it has further deepened the mental health crisis we were already facing,” said Dr. Essam Hamza, CEO of CloudMD. “Recent data tells us that over 56% of Canadians said the pandemic is having a negative impact on their mental health, with social isolation being the top contributing factor. This acquisition of Snapclarity is a transformational addition to CloudMD as we continue to strengthen our suite of virtual care solutions and make it easier for Canadians to get help from home.”
For example, President Trump just signed an executive order to expand telehealth in rural areas. “Today I’m taking action to ensure telehealth is here to stay,” President Trump said. “I signed executive order to make some of our regulatory reforms permanent.”(4)
Canadian Prime Minister Justin Trudeau for example, announced the Canadian government would spend more than C$240 million for online mental health care and medical services.
“If we can use apps to order dinner and video chats to stay in touch with family – we can use new technology to keep each other healthy,” Trudeau said, as quoted by CTV News.(5)
CloudMD is very comparable to Teledoc Health, only at an earlier stage in its growth cycle. While CloudMD may have similar potential, it’s in a league of its own.
You see, one of the major differences CloudMD has over some of its competitors is that the Company provides telemedicine solutions to the market on BOTH the consumer (B2C) and enterprise (B2B) sides of the industry, so it’s a win-win for everyone.
Granted, most of the current telemedicine growth has been fueled by the global pandemic with more people in isolation and staying home.
But telehealth has only just begun to revolutionize an $11.9 trillion healthcare industry.
When it comes to telehealth,
No wonder 76% of consumers say they were now moderately or highly interested in using telehealth, as compared to 11% in 2019, according to a new report by McKinsey & Co.(6)
With a surge in telehealth, the industry could grow to $250B revenue opportunity post CV-19, McKinsey & Co. also reported.
Analysts at Forrester say virtual care visits could soar to one billion this year.(7)
Analysts at Frost & Sullivan say the industry could grow sevenfold by 2025 – a five-year compound growth rate of 38.2%.
“The critical need for social distancing among physicians and patients will drive unprecedented demand for telehealth, which involves the use of communication systems and networks to enable either a synchronous or asynchronous session between the patient and provider,” said Victor Camlek, healthcare principal analyst at Frost & Sullivan, as quoted by Healthcare IT News.(8)
CloudMD – a fully integrated health care technology company — is quickly growing.
To date, it has over 100,000 patients registered on its B2C app and over 3000 doctors in 8 provinces on its EMR platform.
And thanks to its roll-up growth strategy, CloudMD provides a suite of healthcare solutions to enable effective telemedicine and modernized clinic management (EMR, virtual appointments, online booking etc.).
It has multiple revenue streams and is expanding quickly across North America.
In fact, it just entered into an agreement that will see its Livecare telemedicine application expanded into the U.S. market. The expansion comes via a value added reseller agreement entered into with that of IDYA4 Corp.
The agreement will see IDYA4, a leader in data interoperability and integrations within public and private sectors, resell the company’s Livecare tech within the U.S.
Notable clients of IDYA4 include the US Department of Justice, Bureau of Justice Assistance, the Department of Homeland Security, the CDC, and US Health and Human Services among others. IDYA4’s client base offers significant opportunity for Livecare, especially as these public departments search for telemedicine solutions amidst the ongoing coronavirus pandemic to limit person to person contact.
CloudMD is focused on rapidly increasing its patient base by onboarding clinics, increasing its physician network, direct-to-consumer advertising and through new telemedicine kiosk partnerships with high traffic pharmacies.
All of these tools are ultimately building a virtual healthcare practice, continuity of care and patient centric practices.
To date, the company’s SaaS-based technology solutions service more than 376 clinics, more than 3,000 licensed practitioners and over three million registered patients including:
Thanks to such offerings, Canaccord Genuity Analysts note:
“We model CloudMD producing 137% and 96% revenue growth in 2020 and 2021, respectively, powered by strong subscription revenue growth (B2B revenue) and patient onboarding (B2C revenue), driven in part through growth of its pharmacy kiosk offering. With a significant amount of the investment in its technology substantially complete, we expect the company will pivot into profitability toward the end of 2020, generating $3.3M in EBITDA in 2021.”
Better, “We expect CloudMD will build on its M&A track record as it uses acquisitions to expand its footprint and establish a presence in new markets (for example, the company’s telemedicine direct-to-consumer offering is available only in BC and Ontario at present),” they added. For full report, please reach out to Canaccord directly.
The best part –growth continues to surge.
In early June 2020, the company posted record Q1 2020 revenue of $3.056 million, growth of 178% year over year. Gross margins jumped to 41%. Better, the company reached over 100,000 registered patients on its CloudMD telemedicine platform.
The revenue generated from SAAS model digital services was $427,179 compared to $240,787 in Q1 2019, an increase of 77% primarily attributable to organic growth. The revenue generated from medical clinics and pharmacies was $2,629,550 compared to $859,543 in Q1 2019, an increase of 206% primarily attributable to the Company’s acquisitions over the past year.
“We had a transformational first quarter which has positioned CloudMD for significant future growth. The acquisition of Livecare and the launch of our CloudMD app in BC and Ontario were two key initiatives for us, and we see great potential in both platforms to drive additional revenue in the future,” said Dr. Essam Hamza, CEO of CloudMD.
“COVID-19 has transformed the telehealth industry and these platforms allow us to support healthcare practitioners and also treat patients and provide exceptional patient care when they need it and from the safety of their own living rooms. For the remainder of the year, we are focused on executing our strategic growth plan which includes additional M&A opportunities, key partnerships and expanding our growing platform across Canada and North America.”
The Company is positioned to continue to grow revenues (CAD$) at a high double-digit rate for the foreseeable future, as you can see in this chart of revenue guidance.
Not only is the company growing its bottom line, it’s growing its footprint in a $250 billion telehealth market still in its infancy.
Most recently, the company announced its intent to acquire a medical clinic based in Metro Vancouver, BC, having already signed a Binding Term Sheet to acquire 100% of the business, assets, and operations. The clinic generated $3 million in revenue in 2019.
“The acquisition of this clinic not only increases our top line revenue by $3 million, but it’s also an important part of our growth strategy as we expand our hybrid digital clinic footprint across Canada and the United States,” added CEO Dr. Essam Hamza.
For one, demand for telehealth is quickly creating a $250 billion market opportunity.
Two, telehealth has only just begun to revolutionize an $11.9 trillion healthcare industry, as it becomes a permanent solution for millions of patients. There’s so much growth, analysts at Frost & Sullivan say the industry could grow sevenfold by 2025.
Three, there’s incredible support for telehealth from Canadian Prime Minister Justin Trudeau and President Donald Trump.
Four, thanks to acquisitions, CloudMD is expanding its footprint, producing record revenue growth along the way. In fact, it just reported record Q1 2020 revenue growth of 178%