• Annual Recurring Revenue (ARR)⁽¹⁻²⁾ up 59% YoY to $71.1 million
• Total Revenue up 51% YoY to $20.6 million
• Adjusted EBITDA ⁽²⁾ up 27% YoY to $5.0 million

TORONTO, March 27, 2025 (GLOBE NEWSWIRE) -- Vitalhub Corp. (the “Company” or “VitalHub”) (TSX: VHI) (OTCQX: VHIBF) announced today it has filed its Consolidated Financial Statements and Management's Discussion and Analysis report for the year ended December 31, 2024 with the Canadian securities authorities. These documents may be viewed under the Company’s profile at www.sedarplus.com.

“We are pleased to report strong full year results, highlighted by annual 15% organic ARR⁽¹⁻²⁾ growth and 26% adjusted EBITDA⁽²⁾ margins,” said Dan Matlow, CEO of VitalHub. “We are seeing momentum build with our growing platform functionality and reputational awareness. Our record-breaking sequential net new organic ARR⁽¹⁻²⁾ in the fourth quarter of $2.6 million was well-balanced across our leading EHR suite in Canada and patient flow solutions in the UK. We see opportunities for sustained growth rates in our core geographies as we cross-sell complementary solutions and add new clients.”

“We closed four acquisitions in 2024, adding $17.9 million of acquisition ARR⁽¹⁻²⁾ and adding new solutions and team members that we are proud to have at VitalHub. Integration efforts from a product, infrastructure, and go-to-market perspective are well underway, including the fourth quarter 2024 acquisitions of Strata and MedCurrent. We see areas for potential enhanced revenue growth and operational efficiency, with our goal of steadily expanding our cash flow margin over the next twelve to eighteen months post-acquisition, as we have successfully accomplished historically.”

“Our current pro forma cash balance is approximately $90 million, with strong positive cash generation and access to debt if needed. We are prepared to deploy capital on M&A, and we currently expect the pace of activity from 2024 to continue through 2025. We are proud of all growth and achievements to date, and are excited for the year ahead.”

VitalHub’s quarterly investor conference call will take place on Friday, March 28, 2025, at 9:00AM EST.

To register for the call, please visit: https://us06web.zoom.us/webinar/register/WN_rJOjJmU7TXen7-jbFcjXbA#/registration

Fourth Quarter 2024 Highlights

• ARR⁽¹⁻²⁾ at December 31, 2024 was $71,054,210 as compared to $53,452,108 at September 30, 2024, an increase of $17,602,101 or 33%. ARR⁽¹⁻²⁾ growth during the quarter was attributable to:
  • Organic growth of $2,609,657 or 5%;
  • Acquisition growth of $14,600,000 or 27%;
  • Gain of $392,445 or 1% due to the fluctuations in foreign exchange rates.
• Revenue of $20,590,779 as compared to $13,603,419 in the equivalent prior year period, an increase of $6,987,360 or 51%.
• Gross profit as a percentage of revenue was 81% compared to 83% in the equivalent prior year period.
• Net income before income taxes of $173,000 (including $2,588,292 of business acquisition, restructuring and integration costs) as compared to net income before income taxes of $1,984,246 (including $306,741 of business acquisition, restructuring and integration costs) in the equivalent prior year period, a decrease of $1,811,246 or 91%.
• EBITDA⁽²⁾ of $1,875,370 compared to $2,992,273 in the equivalent prior year period, a decrease of $1,116,903 or 37%.
• Adjusted EBITDA⁽²⁾ of $5,046,758 or 25% of revenue, compared to $3,985,553 or 29% of revenue in the equivalent prior year period, an increase of $1,061,205 or 27%.
• On October 4, 2024, the Company acquired all of the issued and outstanding shares of MedCurrent Corporation and its subsidiaries.
• On October 29, 2024, the Company acquired all of the issued and outstanding shares of Strata Health Solutions Inc.

Annual 2024 Highlights

• ARR⁽¹⁻²⁾ at December 31, 2024 was $71,054,210 as compared to $44,573,739 at December 31, 2023, an increase of $26,480,470 or 59%. ARR ⁽¹⁻²⁾ growth during the year was attributable to:
  • Organic growth of $6,475,919 or 15%;
  • Acquisition growth of $17,911,500 or 40%;
  • Gain of $2,093,051 or 5% due to the fluctuations in foreign exchange rates.
• Revenue of $68,594,310 as compared to $52,508,298 in the prior year, an increase of $16,086,012 or 31%.
• Gross profit as a percentage of revenue was 81% compared to 82% in the prior year.
• Net income before income taxes of $5,895,758 (including $5,213,044 of business acquisition, restructuring, and integration costs) as compared to net income before income taxes of $5,327,733 (including $1,534,835 of business acquisition, restructuring, and integration costs) in the prior year, an increase of $568,025 or 11%.
• EBITDA⁽²⁾ of $9,950,872 compared to $9,887,842 in the prior year, an increase of $63,030 or 1%.
• Adjusted EBITDA⁽²⁾ of $17,840,272 or 26% of revenue, compared to $13,291,526 or 25% of revenue in the prior year, an increase of $4,548,746 or 34%.
• Cash on hand at December 31, 2024 was $56,574,904 compared to $33,480,018 as at December 31, 2023.
• Subsequent to the quarter, the Company completed a bought deal public offering pursuant to which 3,165,145 common shares were issued at $10.90 per common share for total gross proceeds to the Company of approximately $34.5 million.

^{(1)    The Company defines annual recurring revenue (“ARR”) as the recurring revenue expected based on yearly subscriptions of the renewable software license fees and maintenance services.
(2)    Non-IFRS measure. Disclaimers and reconciliations can be found in SEDAR filings.}

Selected Financial Information

About VitalHub

VitalHub is a leading software company dedicated to empowering health and human services providers globally. VitalHub's comprehensive product suite includes electronic health records, operational intelligence, and workforce automation solutions that serve over 1,000 clients across the UK, Canada, and other geographies. The Company has a robust two-pronged growth strategy, targeting organic opportunities within its product suite and pursuing an aggressive M&A plan. VitalHub is headquartered in Toronto with over 500 employees globally, across key regions and the VitalHub Innovations Lab in Sri Lanka. For more information about VitalHub (TSX: VHI) (OTCQX: VHIBF), please visit www.vitalhub.com and connect with us on LinkedIn.

Contact Information

Christian Sgro, CPA, CA, CFA
Head of IR and M&A Specialist
(365) 363-6433
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Dan Matlow
Chief Executive Officer, Director
(416) 727-9061
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Cautionary Statement

Certain statements contained in this news release may constitute "forward-looking information" or "financial outlook" within the meaning of applicable securities laws that involve known and unknown risks, uncertainties and other factors which 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 information or financial outlook. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of the management of each entity and are based on assumptions and subject to risks and uncertainties. Although the management of each entity believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.