CloudMD Provides Update on Growing Momentum Driven by Client Demand for Navigated Healthcare Solutions & Increased Operational Efficiencies

Rhea-AI Summary

CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF, Frankfurt: 6PH) shared an update on the success of its initiatives to grow the Company’s share of wallet among large global organizations and drive down costs by creating operational efficiencies. Key client successes include an additional 100,000 lives covered via new client signings for CloudMD portfolio solutions, with almost 50% of new clients in Q3 launching with more than one service. Major operational efficiency initiatives include the consolidation of internal cloud technology infrastructure into a singular tenant, expected to result in significant annual cost savings and reduced management overhead.

Positive

• Successful initiatives to grow the Company’s share of wallet among large global organizations.
• An additional 100,000 lives covered via new client signings for CloudMD portfolio solutions.
• Almost 50% of new clients in Q3 launched with more than one service.
• Consolidation of internal cloud technology infrastructure into a singular tenant expected to result in significant annual cost savings.

Negative

• None.

Customer wins subsequent to Q2 have resulted in an additional 100,000 lives covered and an increase in the number of new and existing clients subscribing to multiple CloudMD services.

VANCOUVER, British Columbia, Nov. 09, 2023 (GLOBE NEWSWIRE) -- CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF, Frankfurt: 6PH) (the “Company” or “CloudMD”), an innovative health services company transforming the delivery of care, today shared an update on the success of its initiatives to grow the Company’s share of wallet among large global organizations and drive down costs by creating operational efficiencies.

Key Client Successes Since Q2 2023:

• An additional 100,000 lives covered via new client signings for CloudMD portfolio solutions, including Health Care navigation (mental and physical health), Internet Based Cognitive Behaviour Therapy (iCBT), and Mental Health Coaching solutions. Major new clients include a large multinational technology company (48,000 lives) and a large media and telecommunications company (10,000 lives).
• Continued momentum for increasing lifetime customer value with expanded take up of multi-service offerings in new and existing accounts. Almost 50% of new clients in Q3 launched with more than one service, and nearly one-third of existing clients added at least one new service during this period.

Major Operational Efficiency Initiatives:

• Consolidation of internal cloud technology infrastructure into a singular tenant scheduled to be completed by year-end, expected to result in significant annual cost savings, reduced management overhead, and additional capacity to deliver on more critical items.
• Increasing customer satisfaction through enhancements to personalized intake, allowing for greater control over operations and substantial monthly cost savings.  

“I am excited that our focus on full integration of our portfolio of solutions across all aspects of our business, which is being led by our exceptional leadership team, is resulting in accelerating momentum, driving revenue, and reducing costs within the organization,” said Bram Lowsky, EVP, Health & Wellness Solutions, CloudMD. “As an increasing number of organizations seek to reduce the complexity, high costs, and often disappointing outcomes of supporting their employees with disjointed multi-vendor solutions, we are seeing strong interest in our game-changing full-service navigated approach to mental health, healthcare, and workplace safety. By choosing to work with CloudMD, clients and partners that select our complete suite of solutions really can have it all. And the growing number of organizations investing in our solutions to deliver better outcomes for their valued employees continues to validate the strength of our approach.

“The executive and leadership team at CloudMD continues to be laser-focused on delivering profitable growth and executing on our strategic plan to reduce costs with significant initiatives to build operational efficiencies,” said Karen Adams, CEO, CloudMD. “The industry and our customers are asking for a more enhanced solution to solve the mental and physical health issues that individuals face. Customers value our comprehensive approach to not only connecting individuals with the right resources but also the ability to engage and return to function. This is being accomplished with a clear focus on continued cost reductions and improvement of EBITDA.”

About CloudMD Software & Services

CloudMD is an innovative North American healthcare service provider focused on empowering healthier living by combining leading-edge technology with an exceptional national network of healthcare professionals. Every day, our employees and healthcare providers live our values of delivering excellence, collaboration, connected communication, and accountability to solve complex health problems. CloudMD’s industry-leading workplace health and wellbeing solution, Kii, supports members and their families with a personalized and connected healthcare experience across mental, physical, and occupational health. Kii delivers superior clinical health outcomes, consistent high engagement, and measurable ROI for payers such as employers, educational institutions, associations, governments, and insurers. CloudMD is also a market leader in workplace absence management through data-driven prevention, intervention, and return-to-work programs. 

In addition, the Company sells health and productivity tools to hospitals, clinics, and other healthcare service providers to empower them to deliver better care. Visit www.cloudmd.ca to learn more about the Company’s comprehensive healthcare offerings.

Forward Looking Statements

This news release contains “forward-looking statements” and “forward-looking information” within the meaning of Canadian securities laws, including statements about the Company’s initiatives and the expected timing and impact of such initiatives. These statements are based upon information currently available to CloudMD’s management. All information that is not clearly historical in nature may constitute forward‐looking statements. In some cases, forward‐looking statements may be identified by the use of terms such as “forecast”, “assumption” and other similar expressions or future or conditional terms such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and “should”. Forward-looking statements contained in this news release are based on certain factors and assumptions made by management of CloudMD based on their current expectations, estimates, projections, assumptions and beliefs regarding their business and CloudMD does not provide any assurance that actual results will meet management’s expectations. While management considers these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect. Such forward‐looking statements are not guarantees of future events or performance and by their nature involve known and unknown risks, uncertainties and other factors, including those risks described in the Company’s MD&A (which is filed under the Company’s issuer profile on SEDAR+ and can be accessed at www.sedarplus.ca), that may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward‐looking statements. Although CloudMD has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward‐looking statements, other factors may cause actions, events or results to be different than anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such forward‐looking statements. Accordingly, readers should not place undue reliance on forward‐looking information. CloudMD does not undertake to update any forward-looking information, whether as a result of new information or future events or otherwise, except as may be required by applicable securities laws.

FOR ADDITIONAL INFORMATION, CONTACT:

Investor Relations
Investors@cloudmd.ca 
1-647-484-1405

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

FAQ

What is the update provided by CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF, Frankfurt: 6PH)?

CloudMD shared an update on the success of its initiatives to grow the Company’s share of wallet among large global organizations and drive down costs by creating operational efficiencies.

What are the key client successes mentioned in the update?

The key client successes include an additional 100,000 lives covered via new client signings for CloudMD portfolio solutions, with almost 50% of new clients in Q3 launching with more than one service.

What are the major operational efficiency initiatives highlighted in the update?

The major operational efficiency initiatives include the consolidation of internal cloud technology infrastructure into a singular tenant, expected to result in significant annual cost savings and reduced management overhead.