Kovo HealthTech Corporation (TSX-V:KOVO) has posted annual revenue growth of 180% in 2Q, driven by organic growth of its core software-as-a-service (SaaS)-style medical billing software and services business and two strategic acquisitions completed in 2021.
The company’s CEO Greg Noble said Kovo continued to generate predictable and stable revenues thanks to a disciplined operating strategy, the strength of its billing-as-a-service platform, and stable demand for US digital back office healthcare billing solutions.
“Even excluding incremental revenue attributed to our 2021 acquisitions, Kovo has achieved organic growth of 83% over the first two quarters of 2022,” he said.
READ: Kovo HealthTech says it is focusing on evaluating potential acquisition targets
For the three months ended June 30, 2022, the company reported revenue of $2,609, compared to $931 for the same period in 2021.
The company noted that 2Q marked its 14th consecutive quarter of positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), achieving adjusted EBITDA of $266 for 2Q 2022, compared to $60 in the year-ago quarter.
Kovo CFO Inder Saini added that the company is on track to meet its 30% organic growth target, exclusive of acquisitions, outlined in its initial 2022 guidance.
“Kovo consistently and reliably delivers positive cash flow from our RCM operations, and as we continue to strengthen and ready the company for our next roll-up, accretive acquisition, we're maintaining a strong focus on improving our working capital month-over-month," Saini said.
Kovo is a healthcare technology company that specializes in billing-as-a-service offering SaaS recurring revenue contracts and software to more than 1,700 US healthcare providers.
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