- Telemedicine provider, CloudMD Software & Services (CSE:DOC) has posted a 178 per cent increase in revenue for the quarter ending March 31, 2020
- Total revenue grew to C$3.06 million from $1.1 million in the previous corresponding period
- Despite the revenue bump, gross margins remained steady at 41 per cent, due to increases in variable costs offsetting the increase in revenue
- Alongside the quarterly report, CloudMD announced it is preparing to move from the Canadian Securities Exchange to the TSX Venture Exchange
- CloudMD Software & Services (DOC) is currently down 5.95 per cent and is trading at $0.79 per share
Telemedicine provider, CloudMD Software & Services (CSE:DOC) has posted a 178 per cent increase in revenue for the quarter ending March 31, 2020.
The Vancouver-based company reported total revenue for the quarter at C$3.06 million, representing a significant increase over $1.1 million for last year’s comparative period.
CloudMD attributed this to an organic 77 per cent increase in revenue generated from its digital services. It also cited a 204 per cent increase in revenue from medical clinics and pharmacies, driven largely through acquisitions made over the last 12 months.
Despite the greater revenue performance, gross margins remained stable at 41 per cent. Any would-be improvements were hindered by an increase in variable costs due to the expansion of the company’s operations in Ontario.
However, these margins are expected to improve as previously-implemented efficiencies kick in over the rest of 2020.
At the end of the quarter, CloudMD had $2.76 million in cash on its balance sheet. Although this amount does not include $200,000 in subscriptions received after March 31, along with a $13 million bought deal financing expected to close on June 2 this year.
Essam Hamza, CEO of CloudMD, said it was a transformational quarter that has positioned the company for significant future growth.
“The acquisition of Livecare and the launch of our CloudMD app in British Columbia and Ontario were two key initiatives for us, and we see great potential in both platforms to drive additional revenue in the future.
“COVID-19 has transformed the telehealth industry and these platforms allow us to support healthcare practitioners and also treat patients and provide exceptional patient care when they need it and from the safety of their own living rooms,” he said.
Separately, CloudMD has received conditional approval from the Toronto Stock Exchange to move its listing from the Canadian Securities Exchange to the TSX Venture Exchange.
Final approval remains subject to the satisfaction of certain customary conditions, after which the company’s common shares will trade on the TSXV under the ticker code DOC.
CloudMD Software & Services (DOC) is down 5.95 per cent and is trading at $0.79 per share at 3:24pm EDT.