Business
Kovo HealthTech Reports Third Quarter Results: 94% YOY Quarterly Revenue Growth; Annual Recurring Revenue Grows 157% to $9M USD in October
11th Consecutive Quarter of Positive Adjusted EBITDA Year-End Guidance Revised Upward to $5.3...
About this update from Kovo+ Holdings Inc
[{"type":"text","content":"Kovo HealthTech Reports Third Quarter Results: 94% YOY Quarterly Revenue Growth; Annual Recurring Revenue Grows 157% to $9M USD in October11th Consecutive Quarter of Positive Adjusted EBITDA Year-End Guidance Revised Upward to $5.3- $5.7 million USDVancouver, British Columbia--(Newsfile Corp. - November 15, 2021) - Kovo HealthTech Corporation (TSXV: KOVO) (the \"Company\" \"Kovo\") — a leader in healthcare technology and Billing-as-a-Service — today reported financial results for its fiscal 2021 third quarter ending September 30, 2021. Strong Revenue Growth Kovo posted 94% year-over-year (\"YoY\") revenue growth during the quarter thanks to a combination of organic growth of its core SaaS-style medical billing software and services business — and a strategic acquisition that delivered immediate accretive growth during the quarter. Compelling Growth Metrics and Increased Year-End GuidanceBased on its strong third quarter results — driven by:Strong organic growthThe acquisition of Midwest Medical Billing, Services Inc. in July 2021Estimated October revenues of $650,000 USD, andIts recently announced acquisition of The Cvikota Company**,Kovo is now reporting Annualized Recurring Revenue (\"ARR\") of approximately $9,000,000 USD — an increase of 157% versus December 2020 ARR. Based on these results, the Company is raising its year end revenue guidance to $5.3 - $5.7 million USD. Adjusted EBITDA guidance remains unchanged at 10%. SaaS-Style Business Model Driving Momentum \"Kovo is gaining momentum every quarter and our team continues to be fueled by a combination of strong organic growth in our core business and a disciplined acquisition strategy which targets buying $1 of ARR for every $1 investment of debt or equity,\" explains Kovo CEO Greg Noble. Noble adds that the Company recently closed a loan agreement for up to $7 million USD (approximately $8.8 million CAD) which positions the Company for continued accretive growth by acquisition, while minimizing dilution for shareholders. Third Quarter Highlights Reported in USD$ unless otherwise specified Revenue for the three and nine months ended September 30, 2021 was $1,654,000 and $3,405,000 which is 94% and 56% higher than the same period in fiscal 2020. The strategic acquisition and successful integration of Midwest...