Business
Kovo HealthTech Reports Second Quarter 2023 Financial Results
Kovo Pivots to Focus on Software Solutions; Accelerates Quarter-over-Quarter Growth +36% Company...
About this update from Kovo+ Holdings Inc
[{"type":"text","content":"Kovo HealthTech Reports Second Quarter 2023 Financial ResultsKovo Pivots to Focus on Software Solutions; Accelerates Quarter-over-Quarter Growth +36%Company Updates 2023 ARR Projection +9% to USD$12MVancouver, British Columbia--(Newsfile Corp. - August 28, 2023) - Kovo HealthTech Corporation (TSXV: KOVO) (the \"Company\" \"Kovo\") a leader in healthcare technology and Billing-as-a-Service - today reported its second quarter financial results for the three month period ending June 30, 2023.36%+ Quarter-over-Quarter Revenue Increase Kovo posted USD$2.63 million in revenue for the quarter ended June 30, 2023, which represents a 36% Quarter-over-Quarter increase compared to the period ending March 31, 2023. The Company completed two strategic acquisitions in April and June 2023 and signed new clients subsequent to quarter end which is expected to drive organic growth in the second half of the year.Kovo Increases 2023 ARR Projection +9%Based on Kovo's strong Q2 growth and the recent signing of three new clients representing an estimated Annual Recurring Revenue (ARR) value of USD$1.14 million, Kovo CEO Greg Noble confirms that the Company is officially updating its 2023 ARR projection to USD$12 million - a 9% increase vs. Q2 2023. The Company expects a 2023 net loss between USD$3 million to USD$3.3 million, mostly driven by investments in its software development and marketing efforts to launch its new software platform KovoCloud, which is not anticipated to initiate revenue until Q4 2023. According to Noble, the Company expects to return to EBITDA positive as KovoCloud revenue grows.\"To harness our SaaS and software solutions business, Kovo recently introduced our innovative KovoCloud platform, welcomed a new CTO to lead our AI innovation and have signed on three new long-term clients, which are due to begin billing toward the end of 2023,\" explains Noble. \"The strategic evolution to focus on our SaaS strengths is a natural fit to Kovo's market-leading RCM e-health solutions and allows Kovo to continue to invest in meeting the specialized technology needs of US-based small and medium-sized healthcare providers,\" he says. The Company also completed financing of approximately $10.3M on April 20, 2023 consisting of $3.3M in equity invested, and availability of $7M in an acquisition debt facility. This financing enabled Kovo to comp...