CloudMD Reports Solid Performance with Fourth Quarter 2021 Financial Results; Revenue of $38.7 Million and Second Consecutive Quarter with Positive Adjusted EBITDA

VANCOUVER, BC, May 2, 2022 – CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF, Frankfurt: 6PH) (“CloudMD” or the “Company”), a healthcare technology and innovative health services company transforming the delivery of care, announced its financial results for the fourth quarter and year ended December 31, 2021. All financial information is presented in Canadian dollars unless otherwise indicated.

“2021 was a year of momentum and growth, and we are pleased with our overall financial and operational performance. Our success can be attributed to our employees who executed on our growth framework through continuous improvement, operational excellence, customer diversification and innovation. We were able to deploy capital to drive long term value through numerous acquisitions, which expanded on our customer base and bolstered our capabilities to enable us to deliver on our value proposition of having the industry-leading comprehensive solutions that supports an individual's life journey,” said Karen Adams, Interim CEO and President of CloudMD. “There has been significant change at CloudMD over the last couple of months, but we remain focused on profitable execution and continued growth. This is evidenced in our ability to streamline operations resulting in $7.5 million in synergies which will drive our return to being adjusted EBITDA positive . At the end of this fiscal year, we find ourselves in a strong position to focus on profitable growth so we can expand our ability to help more organizations and individuals achieve their health and wellness objectives.”

Fourth Quarter 2021 Financial Highlights

  • Q4 2021 revenue was $38.7 million, compared to $39.2 million in Q3 2021 and $5.8 million in Q4 2020. The decline compared to Q3 2021 is primarily attributable to the previously forecasted completion of COVID testing contracts. The increase compared to Q4 2020 is primarily attributable to organic and acquisition growth from 8 acquisitions completed in the last 12 months.
  • Q4 2021 gross profit margin was 30%, compared to 34% in Q3 2021 and 40.4% in Q4 2020. The lower gross profit margin percentage was due to a short-term, lower margin contract in the EHS division and normal seasonal end of year fluctuations.
  • Net comprehensive loss attributable to equity holders of the Company in Q4 2021 was $15.1 million or $0.06 per share, compared to a loss of $4.2 million or $0.02 per share in Q3 2021 and a loss of $5.2 million or $0.04 per share in Q4 2020. The larger loss per share was driven by an impairment of goodwill and other non-recurring one-time costs.
  • Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) was $0.6 million in Q4 2021, compared to $0.8 million in Q3 2021 and a loss of $1.5 million in Q4 2020.
  • Cash and cash equivalents were $45.1 million as of December 31, 2021, compared to $59.7 million on December 31, 2020.

Fourth Quarter & Subsequent Corporate Highlights

  • On October 27, 2021, the Company announced that through one of its subsidiaries, it has received U.S. Patent Approval for its Real Time Intervention Platform (“RTIP”) which is the technology backbone for CloudMD's comprehensive healthcare platform that addresses all points of a patients care from one, connected platform.
  • On November 9, 20221, the Company announced the election of Duncan Hannay and Karen Adams to the Board of Directors of CloudMD.
  • On November 29, 2021, the Company announced a partnership with Sun Life to expand Mental Health Coach to all Group Benefit Clients. Select Sun Life Group Benefits Clients will be able to access the Mental Health Coach service as part of their integrated benefits offering. The service will be rolled out and offered across plans throughout 2022.
  • On December 6, 2021, the Company graduated to the OTCQX, an over-the-counter market, and began trading under the symbol “DOCRF”.
  • On January 14, 2022, the Company announced the closing of the MindBeacon acquisition, creating one of North America's most comprehensive integrated health offerings.
  • On March 3, 2022, the Company announced its new Public Sector division. Operating within EHS, this division will focus on the investments being made in navigation of healthcare, an important part of our organic growth strategy across North America. In addition, this division will manage recently acquired customer contracts awarded from various state, local, and public sector organizations across North America.
  • On March 31, 2022, the Company announced its cost optimization and operational integration activities. In a desire to simplify operations and improve execution, the Company eliminated $7.5 million of annualized run-rate costs from its business. This is aligned with the Company's focus on driving sustainable profitability.
  • In Q1 2022, CloudMD announced Daniel Lee resigned as CFO and Sean Carr was appointed as Interim CFO. Subsequently, the Company announced Dr. Essam Hamza was resigning effective May 2, 2022, and Karen Adams would be appointed interim CEO. The Board has initiated a process to identify the permanent CEO and CFO.
  • On May 2, 2022, the Company announced that Gaston Tano had been appointed to the Board of Directors.


The Company is focused on delivering on the value proposition of offering comprehensive solutions that create access to care, leading to better health outcomes. Through its team-based, patient-centric approach, CloudMD provides a connected platform for patients, healthcare practitioners, and enterprise clients to address whole-person, coordinated care. The Company has a multi-pronged growth strategy which focuses on organic growth, accretive mergers and acquisitions and leveraging our assets across all our divisions.

The Company remains focused on a number of key priorities in 2022 including: (1) continuing to diversify and grow its client base within its EHS and DHS divisions by cross selling capabilities and providing innovative and best in class customer service; (2) driving continuous operational excellence and improvement across the organization to improve productivity, product quality and consistency, and lower customer acquisition costs; (3) delivering a diligent path to profitable financial sustainability and focus on delivering consistent financial performance across all divisions of the organization; and (4) continuing to develop corporate governance to support the Company's growth.

The Company has a strong balance sheet enabling the continued deployment of strategic capital. The Company believes it can generate significant synergies in 2022 as it integrates various acquisitions from the past year. Along with synergies and cost control, the Company sees room for operating leverage as it generates organic growth over the year.

VisionPros Update

The Company is providing the following update on the previously announced comprehensive review (the “Review”) conducted by the Audit Committee of claims from certain suppliers (the “Suppliers”) to VisionPros for the repayment of rebates and reassessments for approximately $3.73 million (the “Claims”) and the business of VisionPros, which was acquired by the Company on June 23, 2021.

The Claims arose from violations in the context of VisionPros' distribution agreements with the Suppliers and were in relation to the business conducted by VisionPros before it was acquired by CloudMD. The Claims have now been resolved and new distribution agreements with the same Suppliers have been entered into.

The Audit Committee retained Polly Faith LLP and EY Canada in connection with the Review. The initial fact gathering and interview phase of the Review is now complete. Once the conclusions of and recommendations in connection with the Review are presented to the Company, it will consider its available options to recover the amounts it believes it is owed. The Company will make further announcements in this regard as appropriate.

Selected Financial Information

All results were prepared in accordance with International Financial Reporting Standards (“IFRS”) as is sued by the International Accounting Standards Board.

Table 1

(1) Gross profit is a non-GAAP measure as described in the Non-GAAP Financial Measures section of this news release.

Fourth Quarter and Full Year 2021 Earnings Conference Call

CloudMD invites all interested parties to join the conference call or webinar:

CloudMD Q4 2021 Earnings Call
Date: May 3, 2022
Time: 11:30am ET (8:30am PT)

Toll-Free Dial-In Number: (833) 562-0117
International Dial-In Number: (661) 567-1009
Webcast Link:

Financial Statements and Management’s Discussion and Analysis

This news release should be read in conjunction with the Company's condensed interim consolidated financial statements and related notes, and management's discussion and analysis (“MD&A”) for the three and twelve months ended December 31, 2021, and 2020, copies of which can be found under the Company's profile at

Non-GAAP Financial Measures

In addition to the results reported in accordance with IFRS, the Company uses various non-GAAP financial measures and ratios which are not recognized under IFRS, as supplemental indicators of the Company's operating performance and financial position. These non-GAAP financial measures and ratios are provided to enhance the user's understanding of the Company's historical and current financial performance and its prospects for the future. Management believes that these measures provide useful information in that they exclude amounts that are not indicative of the Company's core operating results and ongoing operations and provide a more consistent basis for comparison between quarters and years. Details of such non-GAAP financial measures and ratios and how they are derived are provided below as well as in conjunction with the discussion of the financial information reported.

Since non-GAAP financial measures do not have any standardized meanings prescribed by IFRS, other companies may calculate these non-IFRS measures differently, and our non-GAAP financial measures may not be comparable to similar titled measures of other companies. Accordingly, investors are cautioned not to place undue reliance on them and are also urged to read all IFRS accounting disclosures presented in the audited consolidated financial statements and the related notes for the year ended December 31, 2021 and 2020.


EBITDA is a non-GAAP financial measure that does not have a standard meaning and may not be comparable to a similar measure disclosed by other issuers. EBITDA referenced herein relates to earnings before interest, taxes, impairment, and depreciation and amortization. This measure does not have a comparable IFRS measure and is used by the Company to assess its capacity to generate profit from operations before taking into account management's financing decisions and costs of consuming intangible and tangible capital assets, which vary according to their vintage, technological currency, and management's estimate of their useful life.

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure that does not have a standard meaning and may not be comparable to a similar measure disclosed by other issuers. Adjusted EBITDA referenced herein relates to earnings before interest; taxes; depreciation; amortization; share-based compensation; financing-related costs; acquisition-related and integration costs, net; litigation costs and loss provision; loss on sale of subsidiary; and change in fair value of contingent consideration. This measure does not have a comparable IFRS measure and is used by the Company to assess its capacity to generate profit from operations before taking into account management's financing decisions and costs of consuming intangible and tangible capital assets, which vary according to their vintage, technological currency, and management's estimate of their useful life, adjusted for factors that are unusual in nature or factors that are not indicative of the operating performance of the Company.

Gross Profit

Gross Profit is a non-GAAP financial measure that does not have a standard meaning and may not be comparable to a similar measure disclosed by other issuers. Gross Profit referenced herein relates to revenues less cost sales. This measure does not have a comparable IFRS measure and is used by the Company to manage and evaluate the operating performance of the business.

Gross Margin

Gross Margin is a non-GAAP financial ratio that has Gross Profit, which is a non-GAAP financial measure as a component. Gross Margin referenced herein is defined as gross profit as a percent of total revenue. This measure does not have a comparable IFRS measure and is used by the Company to manage and evaluate the operating performance of the business.

The following table provides a reconciliation of net loss for the periods to EBITDA and Adjusted EBITDA for the three months and year ended December 31, 2021 and 2020:

About CloudMD Software & Services

CloudMD is transforming the delivery of healthcare using technology and by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging healthcare technology, the Company is building one, connected platform that addresses all points of a patient’s healthcare journey and provides better access to care and improved outcomes. Through CloudMD’s proprietary technology, the Company delivers quality healthcare through a holistic offering including hybrid primary care clinics, specialist care, telemedicine, mental health support, healthcare navigation, educational resources, and artificial intelligence (AI). CloudMD’s business is separated into three main divisions: Clinics and Pharmacies, Digital Solution and Enterprise Health Solutions, the Company’s fastest growing division. CloudMD’s Enterprise Health Solutions Division has built a leading employer healthcare solutions, including its Comprehensive Integrated Health Services Platform, which offers one comprehensive, digitally connected platform for educational institutions, corporations, insurers, and advisors to better manage the health and wellness of their students, employees, and customers.

CloudMD currently services a direct ecosystem of over 5,700 clinicians including, 1,800+ mental health practitioners, 1,600+ allied health professionals, 1,400+ doctors and nurses and covers 12 million individual lives across North America. For more information visit:


“Karen Adams”
Interim Chief Executive Officer


Julia Becker
VP, Investor Relations

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 release.


This news release contains “forward-looking statements “and “forward-looking information“ within the meaning of Canadian securities laws. Forward-looking statements in this news release include, but are not limited to, statements regarding: the timing for release of the annual financial statements and the subsequent earnings call and webinar. These statements are based upon information currently available to CloudMD’s management. All information that is not clearly historical in nature may constitute forward-looking statements. In some cases, forward-looking statements may be identified by the use of terms such as “forecast“, “assumption“ and other similar expressions or future or conditional terms such as “anticipate“, “believe“, “could“, “estimate“, “expect“, “intend“, “may“, “plan“, “predict“, “project“, “will“, “would“, and “should“. Forward-looking statements contained in this news release are based on certain factors and assumptions made by management of CloudMD based on their current expectations, estimates, projections, assumptions and beliefs regarding their busines and CloudMD does not provide any assurance that actual results will meet management’s expectations. While management considers these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect. Such forward-looking statements are not guarantees of future events or performance and by their nature involve known and unknown risks, uncertainties and other factors, including those risks described in the Company’s MD&A and most recent Annual Information Form (which are filed under the Company’s issuer profile on SEDAR and can be accessed at, that may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Although CloudMD has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, other factors may cause actions, events or results to be different than anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking information. CloudMD does not undertake to update any forward-looking information, whether as a result of new information or future events or otherwise, except as may be required by applicable securities laws.