Vitalhub Corp.

Before we begin, I will read our cautionary note regarding forward-looking information. Certain information to be discussed during this call contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, please review the forward-looking statements disclosure in the earnings press release and in our CDAR filings. As well, our commentary today will include adjusted financial measures, which are non-IFRS measures. These should be considered as a supplement to and not a substitute for IFRS measures. Reconciliations between the two can be found in our CDAR filings. With that, I will hand the call over to our CFO, Brian Goffenberg, to go over financial highlights for the quarter. Over to you, Brian.

Thanks, Christian. Good morning, everyone. Thank you for joining the call today. We are pleased to report results for the first quarter of 2025. For the three months ended March, we added $1.8 million of net new organic annual recurring revenue and delivered adjusted EBITDA margins of 26%. We're happy with these results. We are steadily building scale in terms of revenue and cash generation. And our cash balance at the end of March was 91 million with no debt. I'll now provide more detail on our first quarter operating performance. Our annual recurring revenue was 73.7 million to close the quarter, an increase of 54% over the prior year. Over the previous year, organic growth contributed 14%. In the first quarter, total revenue was 21.7 million, an increase of 42% year over year. Recurring revenue or the term license maintenance and support segment was 18.3 million or 85% of revenues. This compared to 12.5 million or 82% in the prior year period. Perpetual license revenue was 200,000 in the quarter, an increase from 100,000 in the prior year period. Our services, hardware and other revenue was 3.1 million in the quarter, an increase of 19% year over year. A gross margin was 80% of revenue as compared to 81% in the prior year period. Debt income before taxes was $1.5 million compared to $2 million in the prior year period. Adjusted EBITDA for the quarter was $5.6 million or 26% of revenues compared to $4 million or 27% in the prior year period. Turning to the balance sheet, and as previously mentioned, as of March 31, we have cash on hand of $91.2 million. We have no debt currently and have borrowing capacity of up to 65 million. In the first quarter, we completed a board deal financing for total net proceeds of approximately $32 million. With our stable quarterly cash generation, we continue to build capacity for M&A. With that, I'd like to hand the call over to Dan for an update on the business.

Thanks, Brian. I think we only met five weeks ago, so in terms of changes, we're probably talking about minimal, but we'll talk about the first quarter results and talk a little bit about induction in an M&A update. going forward in terms of what we see in terms of the marketplace. But yeah, we're happy with the quarter results. It's as we anticipated going forward. We hit the mark on our... on our guidance and respect to ARR with 1.8 million. And we're progressively working on synergistic value with both Strata and MedCurrent. And both of those are proceeding and both of those contributed to the quarter. We are making some progress on our cost rationalization of both those organizations, but still have a fair amount of work to go in respect to that. So we, we continue to work for it. We're very happy with those acquisitions. Um, both of those, I think are, are in a sweet spot of where, uh, healthcare is today with referral management being a very important aspect of, of where things are going on. And, uh, you know, MedCurrent is, is right in that area of referral management in terms of imaging referrals and, and how that works in, in the whole ecosystem. Uh, both of those organizations have footprints internationally and, uh, and we're integrating it into our UK sales group, uh, as effectively as we can. And we're continuing to work on that. So, uh, Yeah, we're we're happy with with those results. You know, we continue to move forward into the next quarter and we think we're in good position with our cash balance and in our pipelines and our programs coming into place. A little bit about induction. We're still not in a position in a regulatory fashion to really give much information on that. The vote is happening, I think, on Monday for that. And we expect the process to continue to moving. I think we We'll probably close that transaction in early July or end of June, somewhere in there in the timeframe. I think we gave a little bit of later guidance with that, but I think this is where we're seeing things moving in the proper direction for that. Again, I think we explained the induction acquisition for us is mainly focused on that zesty solution. It's a entry point into the ecosystem with a patient portal. It's a very key engagement of a key component of a patient engagement platform. And we see synergistic value in many of our products that do have patients that come into the EHR systems and schedule appointments, but we really don't have a front end for that. So things like our Treat product and our Diamond product in the UK, we see synergistic value with our MyPathway offering as well as our preoperative base assessment synopsis. So there's There's value in its ecosystem. They have a OEM deal with Cerner in the UK marketplace. So every new Cerner deal that happens in the UK uses the Zesty product. So there's a significant amount of Cerner implementations that are underway where Zesty has not come in yet, but they will be coming into those implementations as those implementations get closer to going live. That's the main ingredient we like about the Zesty product. In terms of M&A, we're really busy. We're seeing some stuff going on, both Canada, the UK, and Australia and abroad, and we're working small and some pretty significant acquisitions in the framework. uh we expect you know in in the near future uh depending on how things going to be able to announce some more transactions uh and we continue to to move on on that as as our business model would suggest so we're excited about how things are moving along and uh and we keep going i will like to turn things over uh you know to christian see if there's any questions at all perfect thanks dan