CloudMD Software & Services Inc.

Good afternoon and welcome to CloudMD's Q1 earnings conference call and webinar. My name is Joelle and I will be a conference facilitator today. As a reminder, this conference call is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer period. The company invites its covering analyst to ask questions during this conference call by pressing star, then the number one key on their telephone keypad. If a covering analyst would like to withdraw their question, press the pound key. Thank you. It is now my pleasure to turn the call over to Julia Becker, VP Investor Relations, with opening remarks. Perfect.

Thank you, Joelle. And good afternoon, everyone. Thank you so much for joining us today, May 27, 2021, for our first quarter 2021 earnings conference call and webinar. We'll start the call with a summary from our Chief Executive Officer, Dr. Issam Hamza, followed by our Chief Health Innovation Officer and Global Head, Enterprise Health Solutions, Karen Adams, who will provide further commentary on our Enterprise Health Solutions Division, or as we often refer to it, our EHS Division. Our Chief Financial Officer, Dan Lee, will then recap the company's first quarter 2021 financial results before opening up for a question and answer period from the analysts. A friendly reminder to everyone that today's discussion contains forward-looking information, which involves inherent risk and uncertainties and other factors that could cause actual results to differ materially from management's current expectations. Forward-looking statements should not be read as assurances of future performance or results. The risks related to the forward-looking information are described in the company's annual information form for the period ended December 31, 2020. which is available on CDAR under the company's profile, and in the company's management discussion and analysis for the year ended December 31, 2020, and the quarter ended March 31, 2021, both of which are also available on our profile on CDAR. We encourage listeners to review our disclosure in the context of the forward-looking information you may hear today during this earnings call. Investors are also cautioned not to place undue reliance on these forward-looking statements, would speak only as of the date of this call. The company disclaims any intention or obligation except to the extent required by law to update and revise any forward-looking statements as a result of new information, future events, or for any other reason. With that done, it is my pleasure to turn the call over to Dr. Issam Hamza, CEO of CrowdMD. Issam, the floor is yours.

Thank you, Julia, and good afternoon, and thank you for joining us for our first quarter earnings call and webinar. I'm very excited to share the details of our record Q1 2021 operational and financial results. CloudMD has made solid strategic and financial progress in the first three months of 2021, following a transformational year in 2020, where we built a foundation that positions us to be leaders in the delivery of healthcare. In the middle of a global pandemic, we were not only able to keep our operations running, but also build consistent growth across our entire business. Through this transition, our mission and vision have never changed. ClamMD is a health tech company revolutionizing the delivery of healthcare through a patient-focused, whole-person approach to care. By leveraging technology, we are building a complete and connected healthcare ecosystem that addresses all points of a patient's care, including primary care, virtual care, mental health support, access to specialists, health navigation, and education. This proprietary platform underpins our organic growth strategy and which we continue to see across all lines of our business. The company was built on three foundational pillars that continue to serve us well. First, patient-centric longitudinal healthcare is the future and results in better access to care and improved outcomes. Secondly, we are led by a team of medical professionals, doctors, and industry experts that understand the pain points of the fractured medical system and share the vision of team-based whole person care. And finally, In order to execute on this vision and build a connected ecosystem, we must own our own technology solutions. Technology is the great equalizer that allows us to provide better access to healthcare and connect siloed aspects throughout healthcare and navigation. We are delighted with our Q1 2021 operating financial performance. We reported record revenue of $8.8 million, a 187% increase from Q1 2020, and 51% increase from Q4 2020, largely attributable to strategic M&A and organic growth. In the quarter, we closed five acquisitions, adding $13 million in annual revenue, and we established our transformational enterprise health solutions division, which Karen will speak to shortly. In addition to the operating businesses, in addition, sorry, the operating businesses are collaborating to leverage our assets, creating the whole person healthcare ecosystem. All of our acquisitions are high growth, accretive, and synergistic with cross-selling opportunities to drive further organic growth. In February, we closed an oversubscribed $58 million bought deal financing, which provides us with strategic capital to deploy on mergers and acquisitions. We are well-funded with almost $100 million in the bank. In addition to being well-funded, we have access to debt financing and are looking at options to fund our future M&A activities while conserving cash and equity. We view our businesses into three categories, and it's important to note these categories are not siloed and they capitalize on each other's capabilities and are synergistic within each other. We categorize our businesses into clinic services and pharmacies, digital services, and finally enterprise health solutions. We are proud to announce that we achieved growth across all divisions in the first quarter and expect to see continued growth throughout 2021. Our clinics and pharmacies network consists of 14 hybrid clinics, two pharmacies, and approximately 100 practitioners servicing over 500,000 patients. Our hybrid clinics include both in-person and telemedicine visits, which capture the full revenue potential from a patient. Over the last year, we've seen a significant increase in telemedicine adoption by our clinic network, and we have experienced a 20% increase in patient visits in every quarter since the launch of our CloudMD app in February 2020. Our telemedicine service complements our other businesses, including the Enterprise Health Solutions Division, and we are focused on providing longitudinal whole-person care by integrating this service with our other offerings. Our health tech solutions collectively make up our digital services category. In Q1, we announced the acquisition of our assigned Vision Pros, adding over $35 million in annual revenue. At the end of the quarter, we closed the acquisition of IDEA4, the technology platform used to connect our ecosystem. Since we announced the acquisition in December of 2020, IDEA4 has recognized over 1.5 million in contract wins, and we expect significant organic growth throughout the year. The Enterprise Health Solutions Division was launched in Q4 of 2020, and along with Refunction and Assessment and Rehabilitation Clinic Network, it will represent approximately 44% of the company's $120 million analyzed revenue run rate. We launched this division with a focus on client needs of cost optimization, targeted clinical solutions, and that were outcome-based, supporting access to care for individuals with health and well-being concerns. I'll now pass it over to Karen Adams to give an update on the Enterprise Health Solutions Division.