CloudMD Provides Business Update on Customer Momentum
VANCOUVER, British Columbia, Aug. 17, 2022 (GLOBE NEWSWIRE) — CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF, Frankfurt: 6PH) (the “Company” or “CloudMD”), a healthcare technology and innovative health services company transforming the delivery of care, is pleased to provide a business update on its customer momentum and contract wins within its core Enterprise Health Solutions (“EHS”) division, and an update on the Ontario Health Therapist Assisted Internet-Based Cognitive Behavioral Therapy (“TAiCBT”) support service program.
EHS Customer Momentum
CloudMD continues to drive customer momentum, and new contract wins within its EHS division. The Company’s organic growth strategy is focused on three key areas, including selling direct to new organizations, expanding channel partners and cross selling its established suite of products.
In the second quarter, CloudMD signed several multi-year contracts which will contribute new organic annual recurring revenue (“ARR”) of $4.2 million, coming from all channels of its growth strategy. Additionally, these contract wins reflect a diverse portfolio of Government, employers, and insurers, further expanding CloudMD’s B2B/B2G client base and payor network.
One specific example is a significant new contract with the Christian Labour Association of Canada (CLAC), a large National labour union representing over 60,000 workers. Through HumanaCare, its Employee and Family Assistance Program (“EFAP”) provider, CloudMD won a competitive process to provide EFAP services to CLAC members covered by one of their Health & Welfare Trusts beginning in September 2022.
Other recent notable client wins include:
- Leading national US insurance company
- Large transportation manufacturer
- Leading national telecommunications provider
- Multiple regional health networks
- Large financial services firms
- Distribution partnership with North American group benefit provider
New TAiCBT Ontario Government Contract
After a competitive process, CloudMD’s TAiCBT provider, MindBeacon, has been one of two companies chosen to provide TAiCBT services for Ontario citizens under the new Ontario Health Contract. The two-year contract has been awarded for the provision of TAiCBT support services to be integrated into the Ontario Structured Psychotherapy Program (the “Ontario Program”) starting this fall. Details of the contract have been made publicly available on the procurement website MERX.
The program is expected to expand over time, based on the growing need for proactive mental health supports. Compared to the previous two-year COVID Response Program, which the Government is winding down as anticipated, this new contract represents a reduction of approximately 85% in the number of guided iCBT cases that will be funded.
To offset the revenue impact, CloudMD is in the process of eliminating the direct delivery costs associated with providing the services, as well as identifying further cost synergies to offset the gross contribution from the contract. CloudMD has already implemented several of these initiatives and will continue to take the necessary steps to right-size its cost structure related to the program accordingly. CloudMD continues to engage in discussions with the Ontario Government on how to continue to expand access to mental health services for all Ontarians.
Furthermore, CloudMD has integrated its TAiCBT support service into its Kii platform and is delivering it as part of its overall Mental Health Support Solutions (“MHSS”) to diversify its network of private and public clients. The Company remains confident in its TAiCBT program, which coupled with MHSS will drive further growth and margin expansion over time.
“The strong customer adoption of our offerings is attributed to the execution of our growth strategy and unique product offering. This growth is partially offset by the end of one-time contracts. CloudMD was one of only two companies chosen by the Ontario Government to provide mental health services under its new contract because of our industry leading TAiCBT’s ability to provide positive, evidence-based health outcomes. We are in continuous dialogue with the Government on how we can improve access, as we have a shared understanding of the importance of mental health support,” said President and CEO Karen Adams. “The Company remains focused on driving organic growth through direct sales to new clients, leveraging existing distribution partners and cross-selling to our current client portfolio. The client wins representing $4.2 million in ARR is a testament to the success of our strategy and our key differentiators of providing personalized care and valuable health data and outcomes. I look forward to providing more details on the progress we’ve made on our Q2 conference call later this month.”
About CloudMD Software & Services
CloudMD is transforming the delivery of healthcare using technology and by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging healthcare technology, the Company is building one, connected platform that addresses all points of a patient’s healthcare journey and provides better access to care and improved outcomes. Through CloudMD’s proprietary technology, the Company delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, healthcare navigation, educational resources, and artificial intelligence (AI). CloudMD’s business is separated into three main divisions: Clinics and Pharmacies, Digital Solution and Enterprise Health Solutions, the Company’s fastest growing division. CloudMD’s Enterprise Health Solutions Division has built a leading employer healthcare solutions, including its Comprehensive Integrated Health Services Platform, which offers one comprehensive, digitally connected platform for educational institutions, corporations, insurers, and advisors to better manage the health and wellness of their students, employees, and customers.
CloudMD currently services a direct ecosystem of over 5,700 clinicians including, 1,800+ mental health practitioners, 1,600+ allied health professionals, 1,400+ doctors and nurses and covers 12 million individual lives across North America. For more information visit: https://investors.cloudmd.ca.
ON BEHALF OF THE BOARD OF DIRECTORS
“Karen Adams”
Chief Executive Officer
FOR ADDITIONAL INFORMATION, CONTACT:
Julia Becker
VP, Investor Relations
julia@cloudmd.ca
(604) 785-0850
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This news release contains “forward-looking statements” and “forward-looking information” within the meaning of Canadian securities laws. These statements are based upon information currently available to CloudMD’s management. All information that is not clearly historical in nature may constitute forward‐looking statements. In some cases, forward‐looking statements may be identified by the use of terms such as “forecast”, “assumption” and other similar expressions or future or conditional terms such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and “should”. Forward-looking statements contained in this news release are based on certain factors and assumptions made by management of CloudMD based on their current expectations, estimates, projections, assumptions and beliefs regarding their business and CloudMD does not provide any assurance that actual results will meet management’s expectations. While management considers these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect. Such forward‐looking statements are not guarantees of future events or performance and by their nature involve known and unknown risks, uncertainties and other factors, including those risks described in the Company’s MD&A (which is filed under the Company’s issuer profile on SEDAR and can be accessed at www.sedar.com), that may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward‐looking statements. Although CloudMD has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward‐looking statements, other factors may cause actions, events or results to be different than anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such forward‐looking statements. Accordingly, readers should not place undue reliance on forward‐looking information. CloudMD does not undertake to update any forward-looking information, whether as a result of new information or future events or otherwise, except as may be required by applicable securities laws.
