Think Research Corporation (TSX-V:THNK, OTCQB:THKKF) has reported second-quarter results, posting a significant year-over-year revenue bump and issuing full-year guidance.
In the three months ended June 30, 2022, the company said it brought in revenue of $18.4 million, an 80% increase from $8.2 million in the same period of 2021. Specifically, Think’s software and data solutions revenue was $6.9 million, clinical research operations revenue was $7.3 million and clinical services revenue was $4.3 million.
"We are very pleased to report significant revenue increases for both Q2 and the first half of 2022 relative to the same periods in 2021, despite experiencing some revenue delays related to deferrals within our clinical research program associated with delays in our sponsoring drug program," Think Research CEO Sachin Aggarwal said in a statement.
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"We expect these studies to come back on track during the second half of the year. Further, Think is increasingly winning larger deals and we are confident that our current trajectory is aligned with the company's near and longer-term growth and profitability expectations," he added.
Gross profit for the quarter was $9.4 million, an increase of 66% from $5.7 million in the same period of 2021. The rise in gross profit was primarily related to the increase in revenue, which in turn stemmed primarily from acquisitions supplemented by organic revenue growth, the company said. Its net loss increased by $1.9 million compared to the previous year.
Think’s cash balance as of June 30, 2022, was $6.1 million, slightly lower than $6.3 million at the end of 2021. This was due in part to a $10 million draw on its new credit facility with Beedie Investments Ltd.
Looking ahead, the company announced a fiscal 2022 revenue target of between $84 million and $90 million, including $21 million to $22.5 million for the three months ending December 31, 2022. The company’s EBITDA target is between $6 million and $9 million, including $1.5 million to $2.3 million for the fourth quarter.
Think Research is an industry leader in delivering knowledge-based digital healthcare software solutions. The company's focused mission is to organize the world's health knowledge so everyone gets the best care. Its evidence-based healthcare technology solutions support the clinical decision-making process, standardize care, and improve patient outcomes.
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