Business
VitalHub Reports 40% Growth in the Annual Contract Value of Recurring Revenue for Fiscal Year 2019
Toronto, Ontario--(Newsfile Corp. - April 24, 2020) - VitalHub Corp. (TSXV: VHI) (the "Company...
About this update from Vitalhub Corp.
[{"type":"text","content":"VitalHub Reports 40% Growth in the Annual Contract Value of Recurring Revenue for Fiscal Year 2019Toronto, Ontario--(Newsfile Corp. - April 24, 2020) - VitalHub Corp. (TSXV: VHI) (the \"Company\" or \"VitalHub\") announced today it has filed its Consolidated Financial Statements and Management's Discussion and Analysis report for the year ended December 31, 2019 with the Canadian securities authorities. These documents may be viewed under the Company's profile at www.sedar.com.When asked to comment on the results of Q4 2019, VitalHub CEO Dan Matlow said, \"We are happy with the Fiscal 2019 results, reflecting the hard work we have undertaken in transitioning to a revenue base that is primarily comprised of recurring revenue-based software products. We are now producing cash from operations, and with cash on hand from our recent capital raise we look forward to continued growth through acquisitions and our ongoing organic growth.\"We would like to highlight the following insights:Due to the high amount of non-cash items on the Company's income statement relating to the amortization of intangibles from acquisitions, we focus primarily on Adjusted EBITDA to track our performance. We continue to make great progress here, with Adjusted EBITDA at 16% of revenues.Annual contract value grew by 40% over the year to $7,430,444 through a combination of organic growth and acquisitions made. During 2019 we transitioned the organization to become cash flow positive with a net increase of $1,847,831 year over year.COMPANY HIGHLIGHTSRevenue for the three months ended December 31, 2019 was $2,560,661 as compared to $2,215,912 for the three months ended December 31, 2019, an increase of $344,749 or 15.6%. Revenue for the twelve months ended December 31, 2019 was $10,227,924 as compared to $9,113,840 (which includes a non-recurring one-time perpetual license fee of $1,613,362) for the twelve months ended December 31, 2019, an increase of $1,114,084 or 12.2%. Excluding the one-time perpetual license fee of $1,613,362, revenue for the twelve months ended December 31, 2019 increased by $2,727,446 or 36.4%. The Company defines Annualized Contract Value (\"ACV\") of recurring revenue as the contracted annual renewable software license fees and maintenance services. The ACV of recurring revenue at December 31, 2019 was $7,430,444 as compared to $5,579,3...