Business
Kovo HealthTech Reports First Quarter 2023 Financial Results
Vancouver, British Columbia--(Newsfile Corp. - May 30, 2023) - Kovo HealthTech Corporation (TSXV:...
About this update from Kovo+ Holdings Inc
[{"type":"text","content":"Kovo HealthTech Reports First Quarter 2023 Financial ResultsVancouver, British Columbia--(Newsfile Corp. - May 30, 2023) - Kovo HealthTech Corporation (TSXV: KOVO) (the \"Company\" \"Kovo\") — a leader in healthcare technology and Billing-as-a-Service — today reported its first quarter financial results for the three month period ending March 31, 2023. Kovo posted USD$1.83M in revenues for the quarter ended March 31, 2023 a decline of 36% YOY, driven by two large RPM client contracts signed in Q1 2021 that came to their natural end when the clients opted to work with significantly larger RPM companies to support their size.According to Kovo CEO Greg Noble, Q1 is historically a lower revenue month for medical billing companies as annual insurance deductibles reset, a predictable trend which typically mitigates over the rest of the year. Noble adds that the Company is executing on an immediate benefit two-tiered revenue growth strategy of organic business development and M&A strategy to bring revenue back to growth, with a projected Q2 2023 Annual Recurring Revenue (ARR) of approximately USD$11 million — an expected 7% increase versus Q4 2022. Noble notes that in support of the two-tiered revenue growth strategy, the Company has approximately USD$1.1M of cash and restricted cash on its balance sheet as of the release of its Q1 financial results. The Company also completed financing of approximately $10.3M on April 20, 2023 consisting of $3.3M in equity invested, and $7M in an acquisition debt facility. This financing is enabling the acquisitional growth expected for the immediate future, with the Company completing an acquisition on April 20, 2023 in conjunction with the financing for approximately $2.7M, leaving $4.3M available for additional acquisitions. Quarter Highlights:Listed in thousands USD unless otherwise specified To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/8064/168084_kovotable1.jpgDetailed Quarterly Financial Statements, the Company's MD&A and related documents can be accessed at www.sedar.com. **Subject to TSXV final approval. About Kovo HealthTech Corporation Kovo HealthTech Corporation is a growing healthcare technology company that specializes in Billing-as-a-Service offering SaaS-style recurring revenue contracts and software for mo...