Healwell AI Inc. has announced its interim consolidated financial results for the first quarter ended March 31, 2024. The company reported a jump in quarterly revenue from continuing operations to $4.58 million, marking a 132% increase compared to the same period in 2023. This surge in revenue reflects the company's robust growth trajectory since its relaunch and strategic acquisitions.
Healwell AI's strategic acquisition of Intrahealth, an enterprise-class EHR service provider, in February 2024, has been a pivotal move. This acquisition has propelled the company's annual revenue run rate to over $20 million, more than doubling from the previous year. The largest component of revenues now stems from Software as a Service (SaaS) and services, indicating a shift towards scalable and recurring revenue streams.
Dr. Alexander Dobranowski, CEO of Healwell AI, expressed optimism about the company's future trajectory, fueled by both organic growth and strategic mergers and acquisitions. The company's strong acquisition and business development pipeline positions it for substantial expansion, potentially doubling the yearly revenue run rate to over $40 million. This outlook is bolstered by the company's strategic alliance with WELL Health Technologies Corp., which continues to flourish.
WELL Health Technologies recently launched the second generation of WELL AI Decision Support, powered by Healwell AI. This AI physician co-pilot has expanded its scope to include advanced chronic disease screening, just six months after its initial launch. This collaboration underscores the synergies between digital health companies in advancing healthcare through innovative AI solutions.
Scott Nirenberski, CFO of Healwell AI, highlighted the company's strong financial position, with a cash balance of $11.3 million at the close of the first quarter. The recently announced bought deal financing of up to $20 million is expected to strengthen the company's financial reserves further, providing ample resources to support future M&A endeavours.
Healwell AI's recent business and operational highlights include the acquisition of Intrahealth, which is expected to contribute over $12 million in annualized revenue. The company also appointed Hamed Shahbazi as Chairman of the Board, bringing extensive experience in digital health and healthcare services. Furthermore, new commercial agreements with WELL Health USA and Circle Medical signify the company's expansion into the US market, enhancing its reach and capabilities in early disease detection and patient care.
Healwell AI's performance in the first quarter of 2024 underscores its position as a leader in AI-driven healthcare technology. With a strong financial foundation, strategic partnerships, and a focus on innovation, the company is looking poised for continued growth and success in the dynamic digital health industry.
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