Cloud DX (TSX-V:CDX, OTCQB:CDXFF) Inc has reported results for the second quarter of 2022 and the six months ending June 30, 2022, showing strong growth in new commercial contracts and product revenue.
The company, a leading North American digital health platform and provider of remote patient monitoring (RPM) solutions, said it had signed or extended 19 new commercial contracts as of June 30, 2022, an increase of 158% compared to the contracts/extensions it signed in all of 2021.
Cloud Dx noted that its product revenue in Q2 was 16.4% higher than Q2 2021 and over the six months to June 30, 2022, increased by 24.1% versus the same period in 2021, due to new customers in Canada and the US purchasing Connected Health Kits, while its other revenue increased by 23.3%.
READ: Cloud DX says to provide enhanced remote monitoring solutions for patients in Canada in partnership with Teladoc Health
However, Cloud Dx said its total revenue decreased by 9.7% in the second quarter to $242,225, while revenue of $579,488 for the six-month period was down 11.1% over the same period in 2021, reflecting lower subscription revenue, which fell by 34.5% mostly because of the impact of COVID-19-related stress in early 2022 on its hospital customers. The company said patient enrollment after May 2022 is expected to recover.
The company said its net loss decreased by 54.8% in the second quarter and by 29.9% in the six months ending June 30, 2022, versus the same periods in 2021, due to a reduction in one-time 2021 costs related to its qualifying transaction and operational efficiencies.
Government grant funding was $310,962 in the quarter, a 601.7% increase from the same period in 2021 due primarily to timing of payments on active grants, it added.
In the United States, Cloud Dx noted that contracts were signed during the quarter with large clinical practices in Massachusetts, Pennsylvania and Michigan, while partner Maxwell Telecare signed contracts with five physician practices. Oregon Health and Science University began using Connected Health to educate nurses on remote patient monitoring.
In Canada, notable contracts included a unique partnership with Equitable Life, while the first Medtronic Canada hospital contract was signed with St Mary's Hospital in Kitchener Ontario. The company said it has now been awarded contracts for RPM with five Paramedic Services in Ontario for community long-term care.
On August 26, 2022, Cloud DX announced a master partnership agreement with notable tele-medicine leader, Teladoc Health to add its offerings and features into Connected Health for sale to customers around the world.
The company said it will hold an earnings call on Monday, August 29, 2022, at 9.00am PDT / 12.00pm EDT with registration via the following link: https://us06web.zoom.us/webinar/register/9616611801701/WN_Gaur8Tl3SFa4niTUvmUxWA
Cloud DX also said it will be presenting at the 2022 Emerging Growth Conference on Wednesday August 31, 2022, at 7.15am PDT / 10.15am EDT, with registration via the following link: https://goto.webcasts.com/starthere.jsp?ei=1552112&tp_key=1068906453&sti=cdxxf
Cloud DX's Connected Health remote patient monitoring platform is used by healthcare enterprises and care teams across North America to virtually manage chronic disease, enable aging in place, and deliver hospital-quality post-surgical care in the home. Its partners achieve better healthcare and patient outcomes, reduce the need for hospitalization or re-admission, and reduce healthcare delivery costs through more efficient use of resources.
The company is the co-winner of the Qualcomm Tricorder XPRIZE, 2022 Top Innovator by Canadian Business, a 2021 Edison Award winner, a Fast Company 'World Changing Idea' finalist, and one of 'Canada's Ten Most Prominent Telehealth Providers'.
Cloud DX is an exclusive partner to Medtronic Canada and Equitable Life of Canada.
Contact the author at jon.hopkins@proactiveinvestors.com