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Hydreight Reports Record Topline(1) Revenue of $4.87M in Q1-2024 (YOY Increase of 33%)

Hydreight Technologies Inc.
Hydreight Technologies Inc.

“We had an outstanding quarter with record revenue...Our focus in 2024 is to continue growing revenue, becoming a profitable company and introducing our story to more potential shareholders” - Shane Madden, CEO of Hydreight

VANCOUVER, British Columbia and LAS VEGAS, May 30, 2024 (GLOBE NEWSWIRE) -- Hydreight Technologies Inc. (“Hydreight” or the “Company”) ( TSXV: NURS )( OTCQB: HYDTF )( FSE: SO6 ), a fast-growing mobile clinical network and medical platform which enables flexible at-home medical services across 50 states in the United States, is pleased to announce its financial results for the first quarter ended March 31, 2024. All financial information is presented in Canadian dollars unless otherwise indicated.

Summary of Q1, 2024 Financial Highlights:

  • Q1, 2024 GAAP revenue was $3.38 million an increase of 44% compared to Q1, 2023.

  • Q1 2024 topline¹ record revenue of $4.87 million, an increase of 33% compared to Q1, 2023.

  • Q1, 2024 gross margin of $1.23 million compared to $1.04 million in Q1, 2023.

  • The Company has approximately 117 white-label locations nationwide, with new locations opening every month. 

  • The company has never raised or borrowed any additional capital since the original RTO in December 2022.

  • Adjusted EBITDA¹ has improved and projecting a path to profitability.

  • Company’s cash in hand is $1.34 million in Q1, 2024.

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Shane Madden, CEO of Hydreight commented, “We had an outstanding quarter with record revenue, Adjusted EBITDA¹, Adjusted revenue¹. Our investment in our technology and infrastructure in 2023 lead to become a fully automated, fully integrated, turnkey solution for mobile medicine across the board. This has already been paying off by signing up new nurses and whitelabel clients. Our focus in 2024 is to continue growing the revenue, becoming a profitable company and introducing our story to more potential shareholders.”

Highlights and Subsequent Events

  • Hydreight Technologies through its associated medical network now offer Tirzepatide to Product Offering which also features GLP-1 Medications (Low-Cost Semaglutide), NAD+ and more

  • The Company has approximately 117 white-label locations nationwide, with new locations opening every month.

  • Hydreight added Semaglutide to Product Offerings; Studies have shown that Semaglutide injections can be used together with diet and exercise to help control your blood sugar and help lose weight and keep the weight off.

  • Hydreight was named one of Canada’s Companies to Watch as part of the 2023 Deloitte Technology Fast 50™ program. The award highlights the Company’s significant organic revenue growth of 250% year-over-year and validates the business operations and key differentiators Hydreight has in the market.

  • Hydreight Launched NAD+ as part of its robust patient service offering on its proprietary healthcare technology platform. NAD+ or Nicotinamide Adenine Dinucleotide is a coenzyme central to metabolism which is found in all living cells and consists of two nucleotides joined through their phosphate groups. Clinical studies have suggested that NAD+ may help to improve cognitive function, energy, weight management, pain management, and may also reduce and reverse effects of aging and more.

  • Hydreight provided a corporate update reflecting significant revenue growth and strong organic operational growth.

  • Hydreight announced nationwide expansion of doctor network to meet demand across all 50 states across the U.S.

  • Hydreight Partners with Ola Digital Health, an Independent, National Pharmacy Network to Provide Health and Wellness Services in Store

The Company believes the following Non-GAAP1 financial measures provide meaningful insight to aid in the understanding of the Company’s performance and may assist in the evaluation of the Company’s business relative to that of its peers:

 

Three months ended March 31,

 

 

 

2024

 

 

2023

 

% change

 

 

 

 

Adjusted Revenue

$

4,867,004

 

$

3,667,421

 

 

33

%

Deduct - deferred business partner contract revenue

 

(116,978

)

 

(19,048

)

 

Deduct - business partner payouts on app service gross revenue

 

1,606,376

 

 

1,338,053

 

 

GAAP Revenue

$

3,377,606

 

$

2,348,416

 

 

44

%

 

 

 

 

Adjusted Gross Margin

$

1,114,356

 

$

1,023,385

 

 

9

%

Deduct - deferred business partner contract revenue

 

(116,978

)

 

(19,048

)

 

GAAP Gross Margin

$

1,231,334

 

$

1,042,433

 

 

18

%

 

 

 

 

Adjusted EBITDA

$

(45,873

)

$

(83,979

)

 

45

%

Deduct - amortization and depreciation

 

46,553

 

 

15,948

 

 

Deduct - share-based payments

 

216,295

 

 

-

 

 

GAAP Net Loss

$

(308,721

)

$

(99,927

)

 

-209

%

1 Refer to Use of Non-GAAP Financial Measures


The table below sets out a summary of certain financial results of the Company over the past eight quarters and is derived from the audited annual consolidated financial statements and unaudited quarterly consolidated financial statements of the Company.

 

 

Net Loss After

 

Comprehensive

 

Basic and Diluted

 

Fiscal Quarter Ended

Revenue

Taxes

 

Loss

 

Loss Per Share

 

March 31, 2024

3,377,606

(308,721

)

(370,559

)

(0.01

)

December 31, 2023

3,373,193

(898,561

)

(865,068

)

(0.02

)

September 30, 2023

3,088,219

(466,973

)

(548,954

)

(0.01

)

June 30, 2023

2,699,668

(471,890

)

(405,638

)

(0.01

)

March 31, 2023

2,348,416

(99,927

)

(99,125

)

(0.00

)

December 31, 2022

1,695,134

(5,060,755

)

(5,062,144

)

(1.44

)

September 30, 2022

1,136,510

(240,360

)

(298,367

)

(0.07

)

June 30, 2022

823,053

(262,662

)

(309,665

)

(175.09

)


The Company has experienced dramatic user growth over the past two years as can be seen by the consistent revenue growth over the past eight quarters. Net loss and comprehensive loss have generally remained comparable from the second quarter of 2022 through the current period when looking only at operating expenses, not including the RTO Transaction related expenses included in the fourth quarter of 2022.

The Company continues to deliver on its mission of building the largest mobile clinical network in the United States. Through its medical network, pharmacy network and proprietary technology platform that adheres to the complex healthcare legislation across 50 states, Hydreight has provided a fully integrated solution for healthcare providers to become independent contractors.

Hydreight remains focused on its strategic priorities of (1) Profitability (2) adding more product and service offerings for its customers, (3) introducing Hydreight story with more potential shareholders (4) driving white label partnerships and Nurses to the platform and (5) looking for strategic tuck in M&A opportunities to scale and grow the business quickly and efficiently. Hydreight will continue to invest into its technology to ensure continuous improvements, advancements and updates adhering to changes within the healthcare industry.

Please see SEDAR+ for the Company's condensed interim consolidated unaudited financial statements and MD&A for our unaudited interim consolidated financial statements for the three months period ended March 31, 2024.

About Hydreight Technologies Inc.

Hydreight Technologies Inc. is building the largest mobile clinic network in the United States. Its proprietary, fully integrated platform hosts a network of over 2500 nurses, over 100 doctors and a pharmacy network across 50 states. The platform includes a built-in, easy-to-use suite of fully integrated tools for accounting, documentation, sales, inventory, booking, and managing patient data, which enables licensed healthcare professionals to provide services directly to patients at home, office or hotel. Hydreight is bridging the gap between provider compliance and patient convenience, empowering nurses, med spa technicians, and other licensed healthcare professionals. The Hydreight platform allows healthcare professionals to deliver services independently, on their own terms, or to add mobile services to existing location-based operations. Hydreight has a 503B pharmacy network servicing all 50 states and is closely affiliated with a U.S. certified e-script and telemedicine provider network.

On behalf of the Board of Directors
Shane Madden
Director and Chief Executive Officer
Hydreight Technologies Inc.

Contact

Email: ir@hydreight.com; Telephone: (480) 790 6886

This press release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.

Use of Non-GAAP Financial Measures:

This release contains references to non-GAAP financial measures Adjusted Revenue, Adjusted Gross Margin, and Adjusted EBITDA. The Company defines Adjusted Revenue as gross cash income before adjustment for the deferred portion of business partner contract revenue and gross receipts from Hydreight App service sales. The Company defines Adjusted Gross Margin as GAAP gross margin plus inventory impairment plus the deferred portion of business partner contract revenue. The Company defines Adjusted EBITDA as net income (loss) before interest, taxes, depreciation and amortization and before (i) transaction, restructuring, and integration costs and share-based payments expense, and (iii) gains/losses that are not reflective of ongoing operating performance. The Company believes that the measures provide information useful to its shareholders and investors in understanding the Company’s operating cash flow growth, user growth, and cash generating potential for funding working capital requirements, service future interest and principal debt repayments and fund future growth initiatives. These non-GAAP measures may assist in the evaluation of the Company’s business relative to that of its peers more accurately than GAAP financial measures alone. This data is furnished to provide additional information and does not have any standardized meaning prescribed by GAAP. Accordingly, it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP and is not necessarily indicative of other metrics presented in accordance with GAAP.

Neither TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. This press release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.

Cautionary Note Regarding Forward-Looking Information

This press release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, path to profitability, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “projecting”, “expect” or similar expressions and includes information regarding expectations for the Company's growth and profitability in 2024.

Investors are cautioned that forward-looking information is not based on historical facts but instead reflects the Company’s management’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the ability to obtain requisite regulatory and other approvals with respect to the business operated by the Company and/or the potential impact of the listing of the Company’s shares on the TSXV on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; compliance with extensive government regulation; and the diversion of management time as a result of being a publicly listed entity. This forward-looking information may be affected by risks and uncertainties in the business of the Company and market conditions.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

1See Use of Non-GAAP Financial Measures