- Digital health platform that generates recurring revenue
- Attractive return on investment (ROI) potential
- Strong balance sheet
What Wellteq Digital Health does:
Wellteq Digital Health Inc is a global provider of personalized digital health and wellness solutions across the continuum of care.
The Canada-listed company’s digital health platform - paid for by employers, insurers and healthcare providers - algorithmically coaches the four pillars of behavioural health - sleep, mindset, nutrition and activity - for employees, insurance policyholders and healthcare patients.
Through a smartphone app, a personal profile is created to help keep users engaged with rewards, games and coaches. Wellteq provides a health risk assessment and allows users to reach their fitness and health goals using wearable technology and by completing fitness tracking activities.
Wellteq analytics provides dashboards for users that display information such as heart rate, sleep quality, stress levels and mood. These statistics allow employers to monitor the health and engagement of their employees in real-time, which can help reduce the risk of workplace burnout.
In addition, the company’s Internet of Medical Things (IoMT) hub acquires patient data via hundreds of connected devices and applies natural language processing (NLP) to analyze data either in the Hub or in the Cloud for use in analytics for physicians and patients.
Wellteq works alongside corporations to help deliver a return on investment (ROI) based on the corporation’s organizational objectives. The Wellteq platform has shown success stories in industries such as insurance, construction, logistics, and aviation, all demonstrating the value of a seamless wellness experience and the impact that measuring behavioral data can have.
The company’s growing portfolio of corporate clients includes Willis Towers Watson, UBS, DBS, nib Health Funds, Bupa Health Insurance, and Northern Trust.
Wellteq Digital Health is led by CEO Scott Montgomery, an athlete, trainer and corporate leader for more than 17 years, who co-built Onsite Health Solutions before selling the company in 2012.
How is it doing:
Wellteq Digital Health has made notable progress in 2021.
In October, the company said it had completed the execution of a perpetual license agreement for sleep chronotype assessments and educational content with one of Asia Pacific’s leading sleep technology providers. Under the agreement, Wellteq noted that it has unrestricted usage rights in relation to the assets of the license.
The company said it recognizes the existing importance of sleep within established occupational Health and Safety divisions of industries where fatigue-related accidents can cause serious injury, fatality, and significant direct and liability costs.
Wellteq noted that its sophisticated coaching programs across activity, nutrition, sleep, and mental health are strongly positioned to be an industry leader within the digital sleep solution markets across the corporate and healthcare industries.
Earlier in the same month, the company announced a three-year contract extension with its largest client, nib health funds, Australia’s fourth-largest private health insurer which provides private health insurance coverage to over 1.2 million policyholders.
In line with the Australian health insurer’s Payer to Partner journey, Wellteq noted that nib is focused on providing greater access to personalized treatment and care for its members as it moves away from being a traditional payer of claims and towards its ambition of becoming a health partner.
In September, Wellteq revealed that it expected its Software-as-a-Service (SaaS) revenue for fiscal 2021 to be in the range of C$1.1 million to C$1.25 million, an increase of more than 100% year over year.
The company noted that its SaaS revenue comprises about 75% of its total revenue for the year, which is projected to be in the range of C$1.5 million to C$1.65 million, excluding other income.
Wellteq added that its revenue is expected to accelerate further through fiscal 2022, driven primarily by paid subscriber growth as well as an increase in its corporate wellness revenue growth rates and new revenue streams across the continuum of care.
The company also announced that its registered user base had grown by about 100% during the eight months ending August 31, 2021, to 17,092 users, up from 8,553 registered users during the full calendar year ending December 31, 2020.
Wellteq said it expects future user growth to be driven by the company’s largest insurance client, which is ramping up deployment of Wellteq’s corporate wellness solutions to over one million of its consumer insurance customers.
User growth is also anticipated to increase with the acquisition of new large corporate clients. Wellteq said these new corporate partnerships are expected to accelerate its premium SaaS revenue streams.
The company projects user numbers to experience “high triple-digit growth, or higher,” during the fiscal year ending June 30, 2022.
Wellteq also noted that it held nearly C$7.2 million in cash as of August 31, 2021, which the company said will allow it to grow revenue organically and inorganically with plans to achieve positive earnings before interest, taxes, depreciation, and amortization (EBITDA) in fiscal 2023.
Inflection points:
- New revenue streams launching in 2022
- Accelerating sales growth
- Merger & Acquisition opportunities
What the boss says:
Speaking with Proactive’s Andrew Scott in September 2021, Wellteq Digital Health CEO Scott Montgomery said: “We’ve seen over 100% user growth this year and are seeing even faster growth projected over the coming quarters in the next 12 months.”
“A digital (health) platform is certainly gathering momentum and interest,” Montgomery added.
Contact Sean at sean@proactiveinvestors.com
