![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Think Research Corporation | TSXV:THNK | TSX Venture | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.315 | 0.315 | 0.32 | 0 | 01:00:00 |
TORONTO, Aug. 29, 2023 /CNW/ - Think Research Corporation (TSXV: THNK) ("Think" or the "Company"), a company focused on transforming healthcare through digital health software solutions, is pleased to announce Second Quarter 2023 results. The Company's Management Discussion and Analysis (MD&A) along with unaudited consolidated interim financial statements for Q2 2023 are available on SEDAR at www.sedar.com and on Think's website.
Think's three core business lines, including Software and Data Solutions (SaaS solutions), Clinical Research (clinical trial studies) and Clinical Services (physical clinics), collectively drive its financial performance and results.
Sachin Aggarwal, Chief Executive Officer of Think Research said, "With record revenue and positive Adjusted EBITDA, the second quarter continued the strong performance trend set in the last two quarters. Strong 67% Annual Recurring Revenue growth was driven by SaaS licensing in our Software & Data Division and reached $25 million at the end of the quarter. Think is in a great position to help constrained healthcare delivery systems improve access to high quality health services and best practices where and when they are needed. Our strong and growing pipeline reflects the urgency of this problem."
Think's Software and Data solutions are increasingly relied upon by acute care and community care doctors, nurses and pharmacists to support their practices. Think solutions now reach more than 326,000 clinicians. In certain jurisdiction-wide deployments, Think's platform connects clinicians to the health-care networks that employ them, to patients for virtual care, and to each other for referrals.
Think currently licenses its solutions to approximately 16,000 facilities with over 3 million patients and residents annually receiving better care due to the essential data that Think produces, manages and delivers.
Business Outlook
Think's primary revenue streams of Software and Data solutions and Clinical Research are built on recurring and re-occurring multi-year contracted commitments from governmental agencies and large enterprise clients such as global pharmaceutical companies. Accordingly, Think's management believes that the Company's performance should be adequately protected in the short-term against uncertain macroeconomic conditions.
Moreover, Think's Software and Data solutions business is currently solving urgent short-term health care service conditions, as well as looming long-term demographic challenges for health systems in Canada and abroad, including:
As a result, Think's sales pipeline for its SaaS solutions shows significant revenue growth potential in the Canadian market and internationally.
The Company plans to grow predictable and recurring revenue with improving margins by becoming an essential data solutions provider for healthcare systems globally so they can deliver the best outcomes for patients. Think's Digital Front Door (" DFD") solution can provide additional capacity for healthcare systems through third-party care providers, such as doctors, nurses and care navigators from outside the client's network.
To fulfill this objective, Think's focus is to:
Think's rapid improvements in financial performance, including three sequential quarters of positive Adjusted EBITDA is helping to offset higher financing charges related to Think's floating interest rate associated with its long-term debt. Although Think has yet to consistently achieve sufficient positive cash flow from operations to cover all non-operating expenses, Think is actively managing costs, while demonstrating improvements in revenue growth.
Notable Contracts and Events in Q2 2023
Q2 2023 Financial Highlights
Q2 2023 Revenue Performance Highlights by Line of Business:
The Company has three primary streams of revenue that include: (1) Software and Data solutions, (2) Clinical Research, and (3) Clinical Services.
Revenue Streams | Q2 FY 23 | Q2 FY23 % of | Q2 FY 22 | Q2 FY22 % of |
Software and Data Solutions1 | 10,375 | 46.1 % | 6,897 | 43.2 % |
Clinical research2 | 9,204 | 40.9 % | 7,252 | 43.1 % |
Clinical services3 | 2,913 | 13.0 % | 4,293 | 13.6 % |
Total | 22,493 | 100 % | 18,442 | 100 % |
Notes: |
(1) "Software and Data Solutions" revenue consists of SaaS and professional services revenue. |
(2) "Clinical research" revenue consists of revenue from BioPharma. |
(3) "Clinical services" revenue consists of revenue from the clinics owned by TRC. |
Revenue from Think's Software and Data Solutions business grew by $3.5M or 50% from $6.9M (43% of revenue) in Q2 2022 to $10.4M (46% of revenue) in Q2 2023 primarily due to organic growth associated with the launch of the new SaaS and services initiative set out in the Notable Contracts section above.
ARR reached $25.0M at the end of June 2023, representing growth of 67% compared to $14.7M at the end of June 2022. Quarter over quarter growth in ARR was 12% compared to $22.0M at the end of March 31, 2023. Think's Net Retention Rate for ARR was 106% for the twelve months ended June 30, 2023.
Clinical Research revenue increased by $2M, or 27% in Q2 2023 to $9.2M compared to $7.3M in Q2 2022. Revenue in the comparable period was depressed due to the operational impacts of COVID-19, which were only fully resolved in late Q3 of 2022.
Clinical Services revenue declined by $1.4M or 32% in Q2 2023 compared to the comparable period in 2022 due to operational challenges in sales and marketing.
Liquidity and Capital Resources
The Company's agreements with its lenders regarding certain covenants become more restrictive at the beginning of each quarter from January 1, 2022 to January 1, 2024. Therefore, despite Think's rapid improvements in financial performance, including three sequential quarters of positive Adjusted EBITDA, the Company determined that it was not in compliance with the minimum EBITDA covenants as set out in the Bank of Nova Scotia Credit Facility and under the Beedie Convertible Facility (the "Credit Facilities") and could potentially be in non-compliance with certain covenants set out in the Credit Facilities in future months in 2023. The Company is actively engaging with its lenders and proactively addressing this matter. For further details, please see the Company's MD&A.
Selected Financial Information
Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | ||
(in thousands of Canadian dollars, except | $ | $ | $ | $ | $ | |
Revenue | 22,493 | 21,826 | 21,587 | 18,371 | 18,442 | |
Net Income | (2,327) | (3,594) | (5,602) | (6,459) | (7,484) | |
EBITDA1 | 1,398 | 197 | (1,185) | (2,426) | (4,024) | |
Adjusted EBITDA1 | 1,349 | 1,078 | 1,607 | (696) | (1,579) | |
Adjusted EBITDA margin2 (% of revenue) | 6.0 % | 4.9 % | 7.4 % | -3.8 % | -8.6 % | |
Basic and diluted EPS | (0.03) | (0.05) | (0.09) | (0.11) | (0.13) | |
Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 | ||
(in thousands of Canadian dollars, except | $ | $ | $ | $ | $ | |
Revenue | 18,442 | 20,204 | 19,117 | 10,083 | 10,224 | |
Net Income | (7,484) | (6,198) | (7,596) | (10,828) | (5,583) | |
EBITDA1 | (4,024) | (2,399) | (4,187) | (8,290) | (3,814) | |
Adjusted EBITDA1 | (1,579) | (290) | (189) | (3,403) | (1,349) | |
Adjusted EBITDA margin2 (% of revenue) | -8.6 % | -1.4 % | -1.0 % | -33.7 % | -13.2 % | |
Basic and diluted EPS | (0.13) | (0.11) | (0.13) | (0.24) | (0.13) |
Notes: | |
1. | "EBITDA" and "Adjusted EBITDA" are non-GAAP financial measures, are not standardized measures under IFRS and may not be comparable to similar financial measures disclosed by other issuers. See "Non-IFRS Financial Measures." |
2. | "Adjusted EBITDA Margin" is a non-GAAP ratio, is not a standardized measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers. See "Non-IFRS Financial Measures." |
The tables above and below include non-IFRS financial measures and non-IFRS ratios. See the "Cautionary Note Regarding Non-IFRS Financial Measures" section of this press release for the relevant definition of each non-IFRS financial measure and non-IFRS ratio.
Three months | Three months | Six months | Six months | |
$ | $ | $ | $ | |
Net loss | (2,327) | (7,484) | (5,921) | (13,682) |
Depreciation and amortization | 3,222 | 3,608 | 6,375 | 7,244 |
Finance costs | 1,489 | 757 | 2,713 | 1,833 |
Income tax expense (recovery) | (986) | (905) | (1,572) | (1,818) |
EBITDA1 | 1,398 | (4,024) | 1,596 | (6,423) |
Acquisition, restructuring and other2 | (648) | 710 | (302) | 1,772 |
Stock-based compensation3 | 599 | 1,735 | 1,134 | 2,782 |
Adjusted EBITDA | 1,349 | (1,579) | 2,428 | (1,869) |
Notes: | |
1. | "EBITDA" and "Adjusted EBITDA" are non-GAAP financial measures, are not standardized measures under IFRS and may not be comparable to similar financial measures disclosed by other issuers. See "Non-IFRS Financial Measures." |
2. | "Acquisition, restructuring and other" expenses relate to costs incurred in connection with business combinations, reorganization of the Company's capital structure and workforce, and legal, advisory and banking expenses. |
3. | "Stock-based compensation" relates to expenses recognized for equity awards issued under the Company's Omnibus Equity Incentive Plan. |
Conference Call Details:
CEO Sachin Aggarwal and CFO John Hayes will host a conference call to discuss the results, with a Q&A session to follow.
TIME: 9:00AM EST, Tuesday August 29, 2023
Conference Call Participant Details: To join the conference call without operator assistance, you may register and enter your phone number HERE to receive an instant automated call back. Participants can also dial direct to be entered to the call by an Operator:
Toronto: 416-764-8659
North American Toll Free: 1-888-664-6392
Webinar URL: https://app.webinar.net/6WVYnEMnalm
Conference Replay
Local: 416-764-8677
North American Toll Free: 1-888-390-0541
Replay Entry Code: 197171 #
Expiration Date: 09/03/2023
About Think Research Corporation
Think Research Corporation is an industry leader in delivering knowledge-based digital health software and data solutions. The Company's evidence-based healthcare solutions support clinical decision-making, improve access to services, enable practitioners to gain better capabilities and knowledge, and help to standardize care to facilitate better healthcare outcomes. Think Research has gathered a significant amount of data by building its repository of knowledge through its digital solutions platform and group of companies. The Company's focused mission is to become an essential platform that helps health care clinicians, institutions and networks to provide the best care and information.
Think licenses its solutions to over 16,000 facilities for over 326,000 primary care, acute care, and long-term care doctors, nurses and pharmacists that rely on the content and data provided by Think to support their practices. Over 3 million patients and residents annually receive better care due to the essential data that Think produces, manages and delivers.
In addition, the Company collects and manages pharmaceutical and clinical trial data via the BioPharma Services entity that Think acquired on September 10, 2021. BioPharma Services is a leading provider of bioequivalence and Phase 1 clinical research services to pharmaceutical companies globally. Think's other services include a network of digital-first primary care clinics and medical clinics that provide elective surgery. Visit: www.thinkresearch.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Non-IFRS Financial Measures
This MD&A makes reference to certain non-GAAP financial measures and non-GAAP ratios. These measures and ratios are not recognized measures under International Financial Reporting Standards ("IFRS"), do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures and ratios are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Non-IFRS measures and ratios have limitations as analytical tools and should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS and should be read in conjunction with the consolidated financial statements for the periods indicated. The Company uses non-IFRS financial measures and ratios, including "ARR", "EBITDA", "Adjusted EBITDA" and "Adjusted EBITDA Margin" to provide investors with supplemental measures of its operating performance and to eliminate items that have less bearing on operating performance or operating conditions and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. Specifically, the Company believes that Adjusted EBITDA and Adjusted EBITDA Margin, when viewed with the Company's results under IFRS and the accompanying reconciliations, provides useful information about the Company's business by removing potential distortions that may arise from transactions that are not operational in nature. By eliminating potential differences in results of operations between periods caused by factors such as restructuring, transaction, impairment and other charges, the Company believes that Adjusted EBITDA and Adjusted EBITDA Margin can provide a useful additional basis for comparing the current performance of the underlying operations being evaluated. The Company's agreements with lenders include certain financial performance covenants which include EBITDA (as defined in the Company's credit agreement with its lenders) as a component of the covenant calculations and require the Company to maintain certain levels of EBITDA on a consolidated basis. ARR is used by some investors and analysts as a predictor of future revenues because it reflects new sales, renewals and lost customers. The Company believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures and ratios in the evaluation of issuers. The Company's management also uses non-IFRS financial measures and ratios in order to facilitate operating performance comparisons from period to period.
Non-GAAP financial measures and non-GAAP ratios used by the Company include:
Annual Recurring Revenue ("ARR"), means revenue associated with software and services contracts that are expected to have a duration of more than one year, normalized to a one-year period.
"EBITDA" means net income (loss) before amortization and depreciation expenses, finance and interest costs, and provision for income taxes.
"Adjusted EBITDA" adjusts EBITDA for non-cash stock-based compensation expense, gains or losses arising from redemption of securities issued by the Company, asset impairment charges, gains or losses from disposals of property and equipment, foreign exchange gains or losses, impairment charges on property and equipment, business acquisition costs, and restructuring charges.
"Adjusted EBITDA Margin" means Adjusted EBITDA divided by revenue of the Company for the applicable period.
"Net Retention Rate" means the total of retained revenue from existing customers over a one-year period, expressed as a percentage.
A reconciliation of EBITDA and Adjusted EBITDA to IFRS net income (loss) is presented under "Select Information and Reconciliation of Non-IFRS Measures" in the Company's MD&A filed on SEDAR.
For more information: https://www.thinkresearch.com/ca/investors/
SOURCE Think Research Corporation
Copyright 2023 Canada NewsWire
1 Year Think Research Chart |
1 Month Think Research Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions