Business
Kovo HealthTech Corporation Provides Initial 2021 Guidance: Anticipates 43% Year-Over-Year Organic Revenue Growth
Management Forecasts Proforma Fiscal 2021 Revenue of USD$4.7M to USD$5.1M Vancouver, British ...
About this update from Kovo+ Holdings Inc
[{"type":"text","content":"Kovo HealthTech Corporation Provides Initial 2021 Guidance: Anticipates 43% Year-Over-Year Organic Revenue GrowthManagement Forecasts Proforma Fiscal 2021 Revenue of USD$4.7M to USD$5.1MVancouver, British Columbia--(Newsfile Corp. - July 20, 2021) - Kovo HealthTech Corporation  (TSXV: KOVO) (the \"Company\" \"Kovo\") — a leader in healthcare technology and Revenue Cycle Management (\"RCM\") software and services — today provided initial 2021 guidance to advise it anticipates year-over-year organic revenue growth of 43% in 2021 versus the same period in the prior year.Full Year 2021 Annualized Recurring Revenue Forecast of USD$4.7M to $5.1MThe Company expects fiscal revenue will be approximately 43% higher than in 2020 due to organic growth on its core RCM software and services business. On a consolidated basis, including its recent acquisition of Midwest Medical Billing, Service Inc., the Company is forecasting proforma revenue between USD$4,700,000 to USD$5,100,000 for the year ending December 31, 2021 — which it expects to translate into revenue growth in the range of 56% to 69% versus 2020. In addition to anticipated continued revenue growth, the Company forecasts Adjusted EBITDA* to be approximately 10% of revenue in 2021 based on higher payroll expenses incurred as part of its increased investment in staffing based on the strength of its organic sales. In addition, the Company incurred higher professional fees as part of its public company listing in 2021. The Company expects these expenses to normalize over time as it scales operations for organic and acquisition growth for the foreseeable future. \"I am very proud of the progress we are making as an organization in onboarding new customers through our internal sales effort — and in providing strong client service and technology support,\" says Kovo CEO Greg Noble. \"We believe clients are recognizing the value of our industry-leading sub 30 days cash conversion cycle, which delivers funds to our clients faster. We look forward to building on this success in 2021 through organic customer growth and accretive acquisitions, both of which provide consistent recurring revenue,\" he adds. About Revenue Cycle Management (RCM) Kovo HealthTech Corporation is a growing healthcare technology company that specializes in RCM services and soft...