CloudMD Announces Rapid Growth of Enterprise Health Solutions Division
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Secured $5 million in new, multi-year customer contracts since the beginning of the year
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- Driving strong organic growth through cross-selling and integrated product offerings
- Identified over $500,000 in near-term operational synergies through the initial phase of integration
- Secured large corporate customer contract for new integrated health and wellness platform launching in April 2021
- CloudMD is one of a few companies in North America to provide one, centralized, whole-person solution for employers to better manage the health and wellness of employees
- Anticipated annual pro forma revenue growth rate of over 20% with healthy gross margins exceeding 50%
VANCOUVER, British Columbia, March 18, 2021 (GLOBE NEWSWIRE) -- CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF, Frankfurt: 6PH) (the “Company” or “CloudMD”), a healthcare technology company revolutionizing the delivery of care, is pleased to provide an update on its Enterprise Health Solutions (“EHS”) Division. Since launching the EHS Division, CloudMD has seen significant organic growth and integration synergies across the platform.
The EHS Division offers one of the first centralized and connected platforms of health and wellness solutions for employers as part of their benefits programs. These solutions include employee assistance programs, mental health support, physician/allied health services, professional referrals, personalized healthcare navigation, speciality drug consultation, health literacy and education and other services aimed at prevention and early intervention of health concerns.
CloudMD closed the majority of its EHS business acquisitions in January 2021 and since then, the Company has secured $5 million in new, multi-year customer contracts for mental and physical health solutions. These recurring revenue contracts include organizations of all sizes including large corporate clients like Medavie Blue Cross. Additionally, the EHS Division has identified operational synergies by centralizing marketing, technology and finance functions, enabling a shared services approach with annual cost savings exceeding $500,000. The EHS Division is executing on market share growth, margin expansion, cross-selling and integration of capabilities. The Company expects to continue driving additional profitable, organic growth across the entire division. CloudMD anticipates the continued growth of the EHS Division, with annual pro forma revenue growth rate of over 20% and healthy gross margins exceeding 50%.
Integrated Health Services Platform
In April 2021, the Company will be launching its EHS fully-integrated, proprietary health services platform with a large corporate customer, serving over 10,000 employees across Canada. Employees will be triaged and assessed using CloudMD clinical tools followed by appropriate service activation with navigation assistance to ensure the individual has the optimal outcome and continuity of care. Employers will have aggregate data to ensure the right benefit plans are being used for the right health issues. This transformational platform is revolutionizing the way employees access healthcare by providing one seamless patient experience, including personalized care plans, triage and navigation, and full support through their treatment journey. Organizations can use this platform to ensure inclusivity and diversity for mental and physical health issues. This approach provides better access to care, improved patient outcomes, faster access to treatment and improved return to work outcomes.
Scalability and Growth
CloudMD’s network includes over 7,000 psychiatrists, approximately 4,500 therapists and counsellors, over 4,000 psychologists, over 22,000 family physicians, approximately 34,000 medical specialists, over 1,500 allied health professionals and a dedicated research team across North America. The size of this network, leveraged by technology, provides the foundation for scalability and growth across North America and globally.
Rising global health concerns surrounding mental and physical issues have created new needs for providing more efficient, integrated and accessible care options. Employers, insurers and advisors can entrust CloudMD’s integrated health services platform to provide employees with whole-person, personalized care through a complete portfolio of healthcare services that are required in supporting improved health and wellness. The omni-channel approach to navigation and activation of services can be accessed virtually through the web, mobile and telephone, ensuring appropriate care and optimized value.
Karen Adams, Global Head, EHS Division commented, “We are very excited with the performance and growth of the EHS Division since we launched in January 2021. The biggest challenge for payors is having to find multiple, siloed solutions to service their employee’s needs. Our EHS mission is to help businesses and individuals thrive by reducing the need of multiple employer benefits products, and instead create one seamless, connected platform. We have built one of the industry’s first employee benefits platforms that integrates assessment, triage, navigation, care advocacy, educational content, payments and provider connectivity. This solution supports all paths to physical and mental healthcare prevention and treatment while using social and environmental needs currently supported through traditional EAP as the anchor. We feel strongly that this centralized platform will enable deeper member engagement, support inclusivity and diversity and provide for more positive healthcare outcomes.”
In addition, CloudMD announces it has engaged Native Ads, Inc. (“Native Ads”) to provide strategic digital media services, marketing, and data analytics services (the “Services”). The Company has agreed to pay Native Ads $300,000 in consideration for the Services to be provided. Native Ads will not receive any securities of the Company as compensation for the Services.
About CloudMD Software & Services
CloudMD is digitizing the delivery of healthcare by providing a patient centric approach, with an emphasis on continuity of care. The Company offers SAAS based health technology solutions to healthcare providers across North America and has developed proprietary technology that delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, educational resources and artificial intelligence (AI). CloudMD currently services a combined ecosystem of over 7,000 psychiatrists, approximately 4,500 therapists and counsellors, approximately 4,000 psychologists, over 22,000 family physicians, over 34,000 medical specialists, over 1,500 allied health professionals, over 500 clinics, and 8 million patient charts across North America. CloudMD’s Enterprise Health Solutions Division includes one of the top 4 Employee Assistance Programs in Canada and offers one comprehensive, digitally connected platform for corporations, insurers and advisors to better manage the health and wellness of their employees and customers. For more information visit: www.cloudmd.ca.
ON BEHALF OF THE BOARD OF DIRECTORS “Dr. Essam Hamza, MD"Chief Executive Officer
FOR ADDITIONAL INFORMATION CONTACT:
Julia BeckerVP, Investor Relationsjulia@cloudmd.ca
Forward Looking Statements
This news release contains forward-looking statements that are based on CloudMD’s expectations, estimates and projections regarding its business and the economic environment in which it operates, including with respect to its business plans. Although CloudMD believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. These forward-looking statements speak only as of the date on which they are made, and CloudMD undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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