Shares of WELL Health Technologies Corp. (WELL) jumped nearly 7% on Thursday morning after the company posted strong growth in revenue in the second quarter of 2021.
Indeed, the omnichannel digital health company’s revenue for Q2 2021 came in at C$61.8 million, nearly six times higher than the C$10.6 million reported in Q2 2020. The increase was mainly driven by the acquisition of CRH Medical Corporation, which contributed C$36.7 million to quarterly revenue.
Meanwhile, adjusted EBITDA was C$11.9 million in the quarter ended June 30, compared to an adjusted EBITDA loss of C$0.5 million in the prior-year quarter. (See WELL Health stock charts on TipRanks)
The company reported a net loss of C$14.1 million (C$-0.08 per share) in the second quarter, compared to a loss of C$3.4 million (C$-0.03 per share) in the same quarter a year earlier.
WELL Health chairman and CEO Hamed Shahbazi said, “Our practitioner enablement platform and momentum around our acquisitions are delivering extremely strong financial results. We are grateful to the healthcare practitioners and clinicians that provide outstanding care every day as well as the technology and administrative teams that support them.”
WELL Health expects its substantial second-quarter revenue and EBITDA growth to continue into the third quarter, thanks to the full-quarter contribution from CRH, and the July acquisition of MyHealth.
In June, TD Securities analyst David Kwan maintained a Buy rating on the stock and raised its price target to C$11.00 (from C$9.50). This implies 36.1% upside potential.
Overall, WELL stock scores a Strong Buy consensus rating based on six Buys. The average WELL Health price target of C$11.25 implies a 38.7% upside potential to current levels.
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