Business
Kovo HealthTech Corporation Reports Second Quarter Results; Company On-Track to Meet 2021 Revenue Targets
2 nd Quarter organic revenue increased by 43% year-over-year Kovo completes 10...
About this update from Kovo+ Holdings Inc
[{"type":"text","content":"Kovo HealthTech Corporation Reports Second Quarter Results; Company On-Track to Meet 2021 Revenue Targets2nd Quarter organic revenue increased by 43% year-over-yearKovo completes 10th consecutive quarter of positive Adjusted EBITDAYear-over-year revenue for the 3 and 6 months ended June 30, 2021 increased 21% and 32%Vancouver, British Columbia--(Newsfile Corp. - August 11, 2021) - Kovo HealthTech Corporation (TSXV: KOVO) (the \"Company\" \"Kovo\")  — a leader in healthcare technology and Revenue Cycle Management (\"RCM\") software and services — today announced financial results for its fiscal 2021 quarter ending June 30, 2021.Kovo posted 43% year-over-year (YOY) quarterly organic revenue growth on its core RCM software and services business. The Company remains on-track to meet guidance of between USD$4,700,000 to USD$5,100,000 for the year ending December 31, 2021 — which it expects to translate into revenue growth in the range of 56% to 69% versus 2020.Second Quarter HighlightsReported in USD$ unless otherwise specifiedRevenue for the three and six months ended June 30, 2021 was $931,000 and $1,751,000 — 21% and 32% higher than revenues of $772,000 and $1,330,000 for the three and six months ended June 30, 2020.Quarterly RCM organic revenue increased by 43% year-over-year (\"YOY\"), primarily due to the on-boarding of two new healthcare clients, consistent with Kovo's focus on larger, higher margin customers for its core RCM software and services business. This growth is in-line with the Company's previously disclosed guidance target for the quarter. The Company completed its 10th consecutive quarter of positive Adjusted EBITDA reflecting the long-term operating discipline with the organization. Adjusted EBITDA* increased to $60,000 for the three months ended June 30, 2021; relative to Adjusted EBITDA of $33,000 for the three months ended June 30, 2020. The increase in Adjusted EBITDA reflects the impacts of organic growth from new RCM customers.Kovo's recurring revenue business currently generates Annual Recurring Revenue (\"ARR\") of $6,000,000 based on estimated August revenues of $500,000, including the company's recently completed acquisition of Midwest Medical Billing, Service Inc. \"This quarter was filled with milestones as our team took the company public, completed and smoothly ...