Kovo HealthTech Corporation (TSX-V:KOVO) saw its 2021 revenue increase thanks to two strategic acquisitions that led to accretive growth throughout the year.
For the year ended December 31, 2021, the healthcare technology company reported a 96% increase in year-over-year revenue, at US$5.9 million compared to $3.0 million in the 2020 financial year.
The figure beat Kovo’s previously stated guidance of $5.3 million to $5.7 million for the 2021 financial year.
READ: Kovo HealthTech launches next generation OneRev billing-as-a-service platform
During the year, Kovo completed two acquisitions: Midwest Medical Billing and The Cvikota Company, which added revenue and positive earnings as the company looks to build its core Revenue Cycle Management business.
Kovo told investors that organic growth also contributed to its bottom line, with its Software-as-a-Service (SaaS) medical billing software and services business.
Kovo finished 2021 with Annualized Recurring Revenue of nearly C$15 million (US$12 million), a more than 243% growth over 2020. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) increased to US$242,000 for the year ended December 31, 2021 compared to adjusted EBITDA of $135,000 for the year ended December 31, 2020, with margins of approximately 4%, in-line with the prior year. The company said it anticipates adjusted EBITDA of approximately 10% in 2022.
Kovo said it is now processing C$250 million in medical billing annually.
"In addition to successfully going public, integrating two accretive acquisitions, securing financing to power future growth and expanding our clients served to more than 1,700 healthcare providers, Kovo and its subsidiaries are now processing over C$250 million in total billing claims annually," CEO Greg Noble said in a statement. "As the company officially closes out 2021 in a position of strength, we anticipate 2022 to be a step-change year for Kovo, our clients and our shareholders.”
CFO Inder Saini added that the company is on track to meet the 30% organic growth target as stated in its initial 2022 guidance earlier this year.
"Kovo has now reached a new milestone of predictable growth where the company continues to consistently and reliably deliver positive cash flow from its RCM operations, adding to — and improving — our working capital month-over-month,” Saini said.
Vancouver-based Kovo helps healthcare providers digitally track and manage complex patient care registration, services, billing and payments seamlessly, using its OneRev technology platform.
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