Business
CB2 Insights Posts Strong Growth in Clinical Revenue and Drives Operating Efficiencies in Q1 2019
CB2 Insights Posts Strong Growth in Clinical Revenue and Drives Operating Efficiencies in Q1 2019.
About this update from Skylight Health Group Inc.
[{"type":"text","content":"\nTORONTO, May 30, 2019 (GLOBE NEWSWIRE) -- CB2 Insights (CSE:CBII; OTCQB:CBIIF) (“CB2” or the “Company”), a leading technology company focused on mainstreaming medical cannabis to the healthcare industry through Real World Evidence (“RWE”), today reported its results for the first quarter of 2019. Additional information concerning the Company, including its unaudited financial statements and related management’s discussion and analysis (“MD&A”) for the quarter ended March 31, 2019, can be found at www.sedar.com and on the Company’s website. All amounts are expressed in Canadian dollars unless otherwise noted.\n Q12019 Financial Highlights Revenue for the quarter was $2.9 million, a 16.4% increase over the previous quarter and based solely on organic growth within the Company’s Canna Care Docs brand;Revenue contribution from its newly acquired MedEval and Relaxed Clarity clinic groups would have been an estimated $500 thousand for the quarter, which would have boosted revenue to $3.4 million for the quarter and increased the Company’s revenue growth rate to over 37% quarter-over-quarter;Gross profit of $2.2 million for the quarter, or gross margin of 77% represents an increase from 70% from the prior quarter;Operating expenses for the quarter were reduced by more than $785 thousand from the prior quarter as a result of management’s operational efficiency analysis;At quarter end the Company had cash of $1.6 million on hand compared to $433 thousand from the prior quarter; andAdjusted EBITDA1 loss of $713 thousand in Q1 2019 versus Adjusted EBITDA loss of $1.81 million in Q4 2018*. *Note: Q1 2019 Adjusted EBITDA1 from US clinical operations (not inclusive of any subsequent-to-quarter-end acquisitions) resulted in a gain of $578 thousand. CB2 currently uses this surplus in cash flow to fuel its Data and Analytics business, which includes but is not limited to software development, product development, analytical and commercialization teams. “CB2 saw a strong organic growth in our top line paired with a substantial reduction in our operating expenses in the quarter. This growth did not include contributions from our new, profitable clinical acquisitions of MedEval and Relaxed Clarity,” said Prad Sekar, CEO, CB2 Insights. “We remain co...