Vancouver-based healthtech company Well Health Technologies has reported strong annual revenue growth for 2024, but unfortunately, it fell just short of a significant financial milestone.
The company announced that it generated $919.7 million CAD in revenue, falling slightly below its $1 billion target due to unforeseen challenges, including revenue deferrals and a major cyberattack.
The Road to $1 Billion: What Held Well Health Back?
Despite being on track to surpass the $1 billion mark, Well Health faced two significant setbacks. The first was a $56.6 million revenue deferral stemming from its acquisition of Circle Medical, an American telehealth company, in 2020. The deferral relates to how the company recognizes its revenue, which delayed its ability to claim the full amount in 2024.
The second challenge came in the form of a cyberattack in February 2024, which impacted CRH Medical, a company Well Health acquired in 2021. The breach, attributed to ransomware targeting Change Healthcare, a key billing provider for CRH, disrupted the billing processes for several months. This attack is regarded as the largest of its kind in the United States, compromising the data of over 100 million people and causing collection delays. Well Health said it expects to recognize the Circle Medical revenue in 2025 and anticipates collecting the CRH revenue once a settlement with Change Healthcare is finalized.
Despite Setbacks, Well Health Reports Strong Growth
Even with these challenges, Well Health still experienced impressive growth. Its annual revenue for 2024 climbed 19% year-over-year, though the company believes it would have seen a 29% increase without the Circle Medical and CRH issues. This growth was largely driven by organic growth, with patient visits rising by 32%, totaling 5.7 million visits. Notably, Canada played a significant role in this growth, contributing a 20% organic increase.
Looking Ahead: Well Health’s Ambitious Goals for 2025
Despite the challenges faced in 2024, Well Health remains optimistic about 2025. The company projects that its revenue will reach between $1.4 billion and $1.45 billion for the coming year, with adjusted earnings forecasted between $190 million and $210 million. This confidence stems from its innovative products, particularly from the Wellstar subsidiary and Healwell AI, a New Zealand-based strategic partner that Well Health plans to acquire a majority stake in this year.
In addition, Well Health’s strong balance sheet and positive cash flow leave the company well-positioned for its future ambitions. According to Eva Fong, Well Health’s CFO, the company is primed for an exciting year ahead, thanks to its deep M&A pipeline and plans to execute an ambitious agenda in 2025.
Well Health’s Strategic Vision: A Stronger 2025
While missing the $1 billion revenue target in 2024 was a setback, Well Health has proven its resilience and ability to grow in the face of adversity. As it moves into 2025, the company’s focus on acquisitions, innovative healthtech solutions, and organic growth in key markets like Canada sets it up for a stronger year ahead.
Stay tuned to Maple News Wire for more updates on Well Health’s performance and other key developments in the Canadian healthtech sector as 2025 unfolds.
