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Cloud DX Reports Positive Third Quarter and Year to Date 2023 Results

Monday, 27 November 2023 11:35 AM

Cloud DX Inc.


Highlights include 32.6% increase in YTD revenue, 52.2% increase in YTD gross profit and 47.5% improvement in Adjusted EBITDA compared to Q3 2022.

Key Developments:

  • Total Revenue of $1,421,686 increased 32.6% YTD vs revenue of $1,071,879 in the same period in 2022 due to the performance of contracts signed throughout 2023.
  • Gross profit YTD increased 52.2% to $1,096,364 due to increase in revenue and efficient control of costs from operations in the period (see Note 7 in the Q3 2023 Financial Statements).
  • Negative Adjusted EBITDA decreased 47.5% in the 3rd quarter and decreased 31.5% in the nine months ending September 30, 2023, vs the same periods in 2022 continuing the trend from Q1 and Q2.

KITCHENER, ON / ACCESSWIRE / November 27, 2023 / Cloud DX (TSXV:CDX)(OTCQB:CDXFF), a leading North American digital health platform and provider of remote patient monitoring (RPM) solutions, is pleased to report results for the 3 months and 9 months ending September 30, 2023.

Summary of Results:


For the quarter ended September 30, 2023, total reported revenue of $475,218 was flat compared to $492,390 earned in the same quarter in 2022, but revenue from operations increased across the board. Product revenue increased by $28,325 or 13.8%, while Subscription revenue increased by $44,336 or 26.8%, and Professional services revenue increased by $32,175 vs $345 in the same period in 2022. Government grant funding was $143,228 in the 3rd quarter, a 54.3% decrease from the same period in 2022 due primarily to timing of payments on active grants. These positive results from operations show that Cloud DX revenues from new contracts are flowing and increasing.

For the nine months ended September 30, 2023, total revenue of $1,421,686 increased by $349,807 or 32.6% compared to the same period in 2022. Product revenue increased by $117,448 or 21.9% due to new customers in Canada and the US purchasing Connected Health Kits. Professional services revenue increased by $72,941 or 143.8% due to increased orders for integrations and customizations in the period. Subscription revenue increased by $274,350 or 75.4% vs this period in 2022 showing strong growth in new patients enrolled during the period. Government grant funding was $308,538 in the nine months to September 30, a 56.5% decrease from the same period in 2022 due primarily to timing of payments on active grants. Fluctuations in professional services revenue and grant funding amounts from period to period are not unusual; these results show that Cloud DX is becoming less dependent on government funding as we get closer to profitability.


Third quarter operating expenses decreased $1,113,114 or 39.5% in the quarter compared to the same period in 2022, mainly due to targeted decreases in salaries, wages & benefits due to right-sizing measures in Q1 and Q2. Cost of sales in decreased by $78,957 in Q3 and $26,139 in the nine months to Sept 30th due to increased purchase of Connected Health kit inventory and adjustments to COGS (see Note 7 in the Q3 2023 Financial Statements).

Nine-month operating expenses decreased $1,612,367 or 20.9% for the period ended September 30, 2023 compared to the same period in 2022, due primarily to efficiencies put into place over the year to date in 2023.

Adjusted EBITDA

Negative Adjusted EBITDA for the 3 months ending September 30, 2023 was reduced by $1,175,106 or 47.5% compared to the same period in 2022, and YTD negative Adjusted EBITDA has improved by $1,988,315 or 28.4% due to increased sales revenue, increased gross profits and decreased or stable expenses, indicating that the Company is on course to achieve break even in a reasonable period.

Please see the Q3 2023 Consolidated Financial Statements and Q3 2023 MD&A for more details.

Company Highlights to September 30, 2023

The Company has executed or extended 21 new commercial contracts as of September 30, 2023.

Notable contracts announced in Q3 2023 include an expansion of the successful Connected Health deployment with St Mary's Hospital, Kitchener ON with an announced value of $1,700,000 CAD; an expansion order from an Ontario Heart Center with an annual announced value of $90,000 CAD; a competitive contract awarded by Alberta Central Zone Primary Care Network; and the award of a highly competitive 3 year contract to continue supplying Remote Patient Monitoring to Alberta Health Services. These provincial-level contracts help cement Cloud DX's status as the largest and fastest growing provider of Remote Patient Monitoring in Canada.

Financing Activities:

The Company announced a Private Placement of Secured Convertible Debentures that closed on September 8, 2023, for aggregate proceeds of $3,546,000. The Debentures carried a term of 36 months, accruing annual interest of 18% at a conversion price of $0.10/share CAD. Each $1,000 Debenture can be converted to 10,000 common shares, along with 10,000 common share purchase warrants at an exercise price of $0.15/share with a term of 36 months. If the trading price of common shares exceeds $0.30/share for 20 consecutive days, the warrant expiration period is accelerated to 15 days. A second tranche of this Placement is planned on the same terms and is expected to close before the end of 2023.

Subsequent events:

On October 4, 2023 the Company announced its 13th contract to provide Connected Health solutions to an Ontario Community Paramedic Service, under the Ontario government's Community Paramedicine for Long-Term Care program (CPLTC).
For more information, please review the Press Release announced on October 4, 2023.

About Cloud DX

Accelerating digital healthcare, Cloud DX is on a mission to make healthcare better for everyone. Our Connected Health TM remote patient monitoring platform is used by healthcare enterprises and care teams across North America to virtually manage chronic disease, enable aging in place, and deliver hospital-quality post-surgical care in the home. Our partners achieve better healthcare and patient outcomes, reduce the need for hospitalization or re-admission, and reduce healthcare delivery costs through more efficient use of resources. Cloud DX is the co-winner of the Qualcomm Tricorder XPRIZE, 2022 Top Innovator by Canadian Business, a 2021 Edison Award winner, a Fast Company "World Changing Idea" finalist, and one of "Canada's Ten Most Prominent Telehealth Providers." Cloud DX is an exclusive partner to Medtronic Canada, Teladoc Health Canada, and partner with Samsung SDS.

Cloud DX Investor Site

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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For media inquiries please contact:

Marketing Department
Phone 888-543-0944

For investor inquiries please contact:

Jay Bedard
Cloud DX Investor Relations
Phone 647-881-8418
[email protected]

Officer Responsible for this Press Release:

Simon Selkrig
Chief Financial Officer
Phone 888-543-0944
[email protected]

Forward Looking Statements

This news release contains forward-looking statements and information within the meaning of applicable securities legislation. Often, but not always, forward-looking statements and information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward looking statements or information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements or information contained in this news release. In particular, this news release includes certain forward-looking statements concerning the terms of the contract extension, the expected proceeds therefrom, as well as management's objectives, strategies, beliefs and intentions.

Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, the Company's the ability of the Company to fulfill the terms of and derive the benefits from the contract extension.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information.

À propos de Cloud DX

Accélérant les soins de santé virtuels, Cloud DX a pour mission d'améliorer les soins de santé pour tous. Notre plateforme de surveillance à distance des patients Connected HealthMC est utilisée par des entreprises de soins de santé et des équipes de soins partout en Amérique du Nord pour gérer virtuellement les maladies chroniques, permettre aux gens de vieillir chez eux et fournir des soins post-chirurgicaux de qualité hospitalière à domicile. Nos partenaires obtiennent de meilleurs résultats pour les soins de santé et les patients, réduisent le besoin d'hospitalisation ou de réadmission, et réduisent les coûts de prestation des soins de santé grâce à une utilisation plus efficace des ressources. Cloud DX est co-lauréate du prix Qualcomm Tricorder XPRIZE, lauréate du prix Edison 2021, finaliste du concours « World Changing Idea » de Fast Company et un des dix plus importants fournisseurs de télésanté au Canada.

Site des relations avec les investisseurs de Cloud DX

La Bourse de croissance TSX et son fournisseur de services de réglementation (tel que ce terme est défini dans les politiques de la Bourse de croissance TSX) n'assument aucune responsabilité quant à la pertinence ou à l'exactitude du présent communiqué.

Tous les énoncés prospectifs sont assujettis à des risques et à des incertitudes, tels que ceux décrits dans les rapports périodiques de Medtronic déposés auprès de la Securities and Exchange Commission. Les résultats réels peuvent sensiblement différer des résultats anticipés.

SOURCE: Cloud DX Inc.

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