Kovo HealthTech Corporation (TSX-V:KOVO) said it is increasing its 2023 annual recurring revenue (ARR) projection to US$12 million following a strong second quarter and the signing of three new clients with an estimated ARR value of US$1.14 million.
This projection represents a 9% increase to the second quarter of 2023, the company said.
During 2Q, the healthcare technology and Billing-as-a-Service leader reported a 36% quarter-over-quarter jump in revenue from US$1.93 million to US$2.63 million.
Its loss per share was $0.02, the same as the previous quarter and compared to a loss per share of $0.01 in the year-ago quarter.
For 2023, the company expects a net loss between US$3 million and US$3.3 million due to investments in its software development and marketing costs related to the recent launch of its new platform KovoCloud, which is expected to begin generating revenue in the fourth quarter.
As KovoCloud’s revenue growth accelerates, the company expects to return to positive earnings before interest, taxes, deprecation and amortization (EBITDA).
"To harness our SaaS and software solutions business, Kovo recently introduced our innovative KovoCloud platform, welcomed a new CTO to lead our AI innovation and have signed on three new long-term clients, which are due to begin billing toward the end of 2023," Kovo CEO Greg Noble said in a statement.
"The strategic evolution to focus on our SaaS strengths is a natural fit to Kovo's market-leading RCM e-health solutions and allows Kovo to continue to invest in meeting the specialized technology needs of US-based small and medium-sized healthcare providers.”
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