CloudMD Software & Services Inc.

Good afternoon, and welcome to the CloudMD's second quarter 2021 earnings conference call and webinar. My name is Jonathan, and I will be your 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 analysts to ask questions during the conference call by pressing star, then the number one on your telephone keypad. If a covering analyst would like to withdraw their question, please press the pound key. It is now my pleasure to turn the call over to Julia Becker, Vice President, Investor Relations, with opening remarks.

Thank you, Jonathan, and good afternoon, everyone. Thank you for joining us today, August 25, 2021, for our second quarter earnings conference call and webinar. We'll start the call with a summary from our CEO, Dr. Issam Hamza, followed by our President, Karen Adams. to provide commentary on our digital health services and enterprise health solutions divisions. Our chief financial officer, Dan Lee, will then recap the company's second quarter 2021 financial results before opening up for a question and answer period from recovering analysts. A friendly reminder that today's discussion contains certain forward-looking information, which involve inherent risks 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 assurance of future performance or results. The risks related to the forward-looking information are described in the company's annual information form for the fiscal year ended December 31st, 2020, and in the management's discussion and analysis for the three and six months ended June 30th, 2021, which are now available on CDAR. We encourage you to review our disclosure in the context of all forward-looking information that you may hear today during this earnings call. Investors are cautioned not to place undue reliance on these forward-looking statements, which 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, it is my pleasure to turn the call over to our CEO, Dr. Issam Hamza.

Thank you, Julia. Good afternoon and thank you for joining us for our second quarter 2021 earnings call and webinar. We are very pleased with the company's performance in Q2, which is in line with expectations from a financial and operating perspective. CloudMD is leading the innovation in healthcare delivery by using technology to ensure a comprehensive personalized whole person approach to care. By leveraging technology, we are building a complete and connected healthcare ecosystem and platform. that addresses all points of an individual's care, including primary care, virtual care, mental health support, access to specialists, and healthcare navigation and education, to name a few. This first-of-its-kind ecosystem and proprietary platform underpins our organic and cross-selling growth strategy across all lines of our business and is showing some very early promising success. I'd like to take this opportunity to remind the audience of the three foundation principle, sorry, pillars that the company was built on and it continues to serve us quite well. Firstly, we believe that the person centric longitudinal team based healthcare is the future for our industry and the result and results in better and more efficient access to care and more importantly, improved outcomes. Secondly, we are led by a team of medical professionals, doctors and industry experts that understand the pain points and the stakeholders of this historically fractured medical system. We also understand the complications in accessing care through group benefit plans that has meaningful outcomes and share the vision for 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 will enable frictionless access to care and serve to have connected experiences thereby eliminating the siloed effects many continue to feel to this day. CloudMD has made solid progress in ensuring alignment and integration of our capabilities to solidify our leadership in delivering healthcare innovation. We have organized the company into three revenue-generating operating units, and Karen will highlight how all of our divisions are interconnected and work in unison to support CloudMD's overall business. After our most recent hyper-growth phase that saw us complete 14 acquisitions, we prioritized segmenting the company into three divisions, each responsible for their own P&L. The divisions have been purposely set up to align with the market and customer segments that CloudMD serves. First, enterprise health solutions. Secondly, digital health services. And third, clinic services and pharmacies. Each of these divisions are currently undergoing thorough brand repositioning to reflect our position as a market leader in the delivery of integrated health and wellness. We believe these tactics will continue to evolve our market position and we are excited on the next phase of growth focusing on the execution of our corporate strategic plan. We have a strong Q2 delivering solid operating and financial performance. On a consolidated basis, we had a record corner with revenue of $15.7 million, a 461% increase from Q2 2020. Year to date, we recorded revenue of $24.4 million, an increase of 318% over the prior year period. We saw strong organic growth in our enterprise health solutions and digital health services divisions, along with robust revenue in our clinic services and pharmacies divisions. These financial results are largely attributable to the closing of all our outstanding strategic acquisitions, as well as strong organic growth. In the second quarter, we closed four acquisitions, adding $96 million of annual revenue. The following are the specific acquisitions that supported our growth and closed in the second quarter. RxI is a Canadian-based specialty drug wholesaler, pharmacy, and technology patient support program administrator. The company develops customized programs for a variety of clients that offer end-to-end solutions to optimize holistic disease management and clinical treatment outcomes for patients requiring complex and expensive pharmaceutical treatments. RxI is part of our clinic. Services and Pharmacies Business Unit, which offers insurers and organizations proper support for people needing specialty drugs. Secondly, Vision Pros is a North American online eyewear platform with roughly 1 million unique customer accounts. Vision Pros has a monthly subscription-based model and provides contact lenses and eyeglasses through direct consumer channels and B2B via our Enterprise Health Solutions Division right now. Vision Pros is part of our Digital Health Services Division. Thirdly, Asperia. a North American Employee and Family Assistance Program, or EFAP, offering mental health support to organizations and students. Asperia is our mental health brand in the United States and supported by our Snap Clarity platform. Asperia in Canada has been integrated with our mental health support solutions, offering clients a navigator as part of the experience. And lastly, Oncidium is a leading health management company in the employer B2B space with a loyal client base of over 500 corporate and public sector clients across various industries. The focus on Oncidium service is predominantly on reducing occupational absence by delivering solutions that improve the health and wellness of employees. Oncidium's suite of services include solutions that support absentee management, short-term and long-term disability, the management of workers' compensation claims, and mental health assessments. They also provide evaluation services that focus on prevention, accommodation, and recovery. And most recently, through the tuck-in acquisition of Sierra Health Solutions, has positioned CloudMD to be a leader in the independent medical assessments across Canada. Oncidium is part of our Enterprise Health Solutions Division. Like all our acquisitions, those completed in the second quarter are high growth, accretive and synergistic, and will support our focus on revenue expansion through cross-selling and bundling services to drive for further organic growth. In addition, the operating divisions are collaborating to share assets across businesses and are focused on delivering a whole person health and wellness platform. I now want to give an update to our audience with respect to our plans to transition our listing to a senior exchange. While this has always been an important initiative for the company, management have prioritized on other initiatives that we believe will lead to greater long-term shareholder value. These priorities include the completion of its transformational acquisitions earlier this summer with Oncidium and VisionPros, the successful debt financing secured with Bank of Montreal, the continued integration of the 14 acquisitions completed in the past 12 months, and the focus on achieving strong organic growth with profitability for the company. While we always need to evaluate our strategic priorities at all times, we are now targeting a potential listing to a senior exchange in early 2022. Lastly, during the quarter, the company was very pleased to appoint Karen Adams as president of CloudMD, and we would like to welcome her in her new role. Karen is responsible for overseeing our growth and operating plan across all three divisions and has already made great strides toward that goal. I will now pass it over to Karen to give an update on both digital health services and enterprise health solutions.