CloudMD Software & Services Inc. (DOC:CSE; DOCRF:OTCQB; 6PH:FSE) generated record revenue of $3.1 million in Q1/20, up 178% year over year (YOY), it announced in a news release.
The Vancouver, British Columbia-based software firm noted that revenue from its digital services via software as a service was $427,179 during the quarter ended March 31, 2020, which was up 77% over $240,787 in the same quarter last year. Organic growth drove this recent figure.
Revenue from medical clinics and pharmacies was $2,629,550 versus $859,543 YOY. This reflects a 206% rise and is mainly due to the company's acquisitions during the past 12 months.
Gross margins for the Q1/20 were 41%, which were the same as in Q1/19. Revenue derived from higher margin digital services and telehealth increased during the quarter but was offset by higher than usual variable costs due mostly to CloudMD's expansion into Ontario. The company expects gross margins to increase and remain strong throughout the rest of this year.
"We had a transformational first quarter, which has positioned CloudMD for significant future growth," CEO Dr. Essam Hamza said in the release.
The company's net loss in Q1/20 was $1,622,994, or $0.02 per share. The adjusted EBITDA loss was $914,646, which was consistent with Q1/19's $917,112. At the end of Q1/20, CloudMD had $2,760,136 in cash.
During the quarter, CloudMD launched its app in British Columbia and Ontario, acquired telehealth platform Livecare, reached 100,000-plus registered patients on its telemedicine platform and received conditional approval to upgrade to the TSX Venture Exchange under the ticker symbol, DOC.
"For the remainder of the year, we are focused on executing our strategic growth plan which includes additional M&A opportunities, key partnerships and expanding our growing platform across Canada and North America," Dr. Hamza stated.
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