- Third quarter 2022 revenue of $12.8
million, an increase of 116% compared to the same period in
2021
- Consolidated Annual Recurring Revenue (or
ARR1) as at September
30, 2022 reached $52.2
million, a 117% increase over the same period in 2021; on a
pro forma basis, enterprise client ARR increased 31% over the
comparable period
- Third quarter 2022 Adjusted EBITDA3 of $3.1 million, and Adjusted EBITDA
Margin3 of 24%
- Total Number of Clients2 increased by
266% to 987 as at September 30, 2022,
following record client additions within a 2022 quarter; on a pro
forma basis, Total Number of Clients increased by 34%
TORONTO, Nov. 10,
2022 /CNW/ - LifeSpeak Inc. ("LifeSpeak"
or the "Company") (TSX: LSPK), an integrated,
whole-person- wellbeing platform for employers, health plans, and
insurance companies, today announced its financial and operational
results for the three and nine months ended September 30, 2022. All references to dollar
values in this press release are in Canadian dollars, unless
otherwise indicated.
"LifeSpeak has become the premier platform for comprehensive
wellbeing content and support for employers throughout North America, and a leader in the space
across the globe," said Michael
Held, CEO and Founder of LifeSpeak. "During the third
quarter, we continued to integrate the products of our acquired
platforms, cross-sold products to existing clients, signed a
significant number of new clients, and executed on our core
strategy of building a platform to improve the wellbeing of
individuals. Despite broad economic headwinds, we have built a
company that is stronger than ever, with limited customer
concentration and multiple paths to expand our existing revenue
base, and win new customers. The continued integration of the
platform and team across the organization has resulted in increased
profitability, and we believe we are well positioned to execute on
our focused growth strategy for the balance of 2022, and into
2023."
Mr. Held continued, "The integration of our four acquired
businesses - Lift session, ALAViDA, Torchlight and Wellbeats –
continued as planned in the third quarter and we are now becoming a
single, powerful brand that unites our products' missions and
elevates LifeSpeak globally as a leader in holistic wellbeing. With
the successful ongoing integration of our acquired business, we are
now focused on accelerating growth by leveraging our expanded
SaaS-based offering, complementary client bases, enhanced
cross-selling opportunities, and expanded geographic presence."
_____________________________
|
1
|
See "Non-IFRS Measures,
Non-IFRS Ratios and Key Performance Indicators" for a definition of
"ARR"
|
2
|
See "Non-IFRS Measures,
Non-IFRS Ratios and Key Performance Indicators" for a definition of
"Number of Clients"
|
3
|
See "Non-IFRS Measures,
Non-IFRS Ratios and Key Performance Indicators" for a definition of
"Adjusted EBITDA" and "Adjusted EBITDA Margin"
|
Consolidated Business Highlights for the Three Months Ended
September 30, 2022
(All
capitalized terms not defined herein shall have the meaning
ascribed to them in the Management's Discussion and Analysis for
the three months ended September 30,
2022, unless otherwise stated)
- Third quarter 2022 revenue reached $12.8
million, an increase of 116% compared to the same period in
2021, representing a continuing trend of growth in the adoption of
the Company's platform.
- Gross Margin for the third quarter 2022 was 91%, an increase
compared to Gross Margin of 89% in the comparable period in
2021.
- Annual Recurring Revenue (ARR) of $52.2
million as at September 30,
2022, an increase of 117% over the same period in 2021. Of
the $52.2 million of ARR,
approximately $43.1 million, or 83%,
originated from enterprise clients, an increase of approximately
31% compared to the same period in 2021 on a pro forma basis. Of
the $52.2 million of ARR,
approximately 64% originated from clients outside of Canada.
-
- ARR is reported on a constant currency basis using a
1.30 USD:CAD exchange rate. Given
exposure to the US dollar and movement in exchange rates over the
quarter, when adjusting for the strength of the US Dollar ARR would
have been approximately $54.0 million
as at September 30, 2022, when using
a 1.37 USD:CAD exchange rate.
- Third quarter 2022 Adjusted EBITDA3 of $3.1 million, an increase of $1.5 million compared to the same period in
2021.
- Third quarter 2022 Adjusted EBITDA3 margin of $24%,
an increase when compared to an Adjusted EBITDA3 margin
of 20% in the second quarter of 2022, and a slight decrease from
26% when comparable to the same period in 2021.
- Third quarter 2022 net loss of $1.4
million, a decrease of $18.7
million compared to the same period in 2021, largely due to
a decrease in restructuring and other costs.
- Total Number of Clients of 987 as at September 30, 2022, a 266% increase when compared
to 270 at the same date in 2021, and an increase of 34% compared to
the same period in 2021 when calculated on a pro forma basis.
-
- Notable enterprise client additions for the quarter included
Common Spirit Health (Catholic Health Initiatives) (U.S.),
Stanley Black and Decker (U.S.), the
Workers Compensation Board of Nova Scotia
(Canada), and H&M Canada (Canada).
- Subsequent to quarter end, LifeSpeak signed several additional
significant enterprise clients, including BJ's Wholesale Club, Inc.
(U.S.) and Best Western Hotels & Resorts (U.S.).
- Partnerships and embedded solutions client additions continued
through the third quarter with the launch of new embedded
partnerships with MetLife Gulf, LifeSpeak's first Gulf region
client, highlighting the global nature of the platform, and the
launch of our partnership with WebMD.
- Subsequent to quarter end, LifeSpeak signed additional embedded
clients, including Manitoba Blue Cross (Canada).
- Cross-selling initiatives progressed through the third quarter
of 2022, with the successful closing of several cross-sale /
multi-product opportunities including Maximus Inc. (U.S.) –
LifeSpeak's largest cross-sale to date – PricewaterhouseCoopers
(U.S. & Canada), and
Grant Thornton (Canada). The Company anticipates continued
cross-sale growth in the fourth quarter of 2022, as net new clients
are added with multi-product solutions, and as the current
portfolio of client cross-sell opportunities are harvested.
________________________________
|
3
|
See "Non-IFRS Measures,
Non-IFRS Ratios and Key Performance Indicators" for a definition of
"Adjusted EBITDA" and "Adjusted EBITDA Margin"
|
Review of Operations and Outlook
Demand for the Company's SaaS-based mental health and
whole-person- wellbeing platform continues to be strong as
evidenced by growth in the Company's ARR and Number of Clients.
Similar to the Company's second quarter, LifeSpeak's third
quarter key performance indicators were impacted by reduced
recognizable revenue related to a large, embedded solutions client.
Although we continue to pursue renewal discussions with this
client, as the Company does with all existing and previous clients
of our platform, there has yet to be any significant developments
in these discussions and the client has not renewed its
contract.
Despite this impact, the fundamentals of LifeSpeak's core
business remain robust. When excluding the large, embedded client,
and accounting for acquisitions, ARR growth was approximately 22%
over the LTM period on a pro forma basis, and core enterprise
client ARR growth was approximately 31%. The historical and
continued pattern of growth in the enterprise client demographic,
which comprises approximately 83% of overall ARR as at September 30, 2022, and the diversity of
customer, industry, and sector concentration demonstrate the
continued strength of the core enterprise business and lay a strong
foundation for growth and resilience within the core LifeSpeak
portfolio.
Pro Forma
ARR4
|
In C$ millions, unless
otherwise noted
|
Q3-2021
|
Q4-2021
|
Q1-2022
|
Q2-2022
|
Q3-2022
|
|
YoY
Growth
|
|
|
|
|
|
|
|
|
Total
Enterprise ARR
|
$32.9
|
$36.7
|
$39.4
|
$41.0
|
$43.1
|
|
31 %
|
Total
Embedded Solutions & Other ARR
|
$18.7
|
$19.0
|
$11.7
|
$9.2
|
$9.1
|
|
(7 %)
|
Total
ARR
|
$51.5
|
$55.6
|
$51.1
|
$50.2
|
$52.2
|
|
1 %
|
|
|
|
|
|
|
|
|
Total ARR (Ex
Large Embedded Solutions
Client)
|
$42.7
|
$46.4
|
$49.6
|
$50.2
|
$52.2
|
|
22 %
|
Additionally, growth in the Number of Clients continued
quarter-over-quarter, with strong net adds in the enterprise client
base. Total Number of Clients increased to 987, or by approximately
266% when compared to the 2021 comparable period on an as-reported
basis. On a pro forma basis, Number of Clients grew by
approximately 35% year-over-year. Q3 is traditionally impacted by
lower activity within the quarter given seasonality, however, on a
net new pro forma basis, LifeSpeak added 65
new enterprise customers, exceeding the number added in the
respective Q1 and Q2 periods. This indicates strong underlying
momentum for Q4, which is traditionally the busiest quarter for new
enterprise customer additions.
____________________________
|
4
|
Pro
Forma ARR is calculated
assuming that the acquisitions of "Lift session",
"ALAViDA", "Torchlight" and
"Wellbeats" as described in
our AIF had been
completed prior to the applicable period. This metric is provided
for illustrative purposes to provide a comparative measure to
show ARR as if all
businesses had been reporting as a combined entity.
|
Pro Forma
Number of Clients5
|
|
Q3-2021
|
Q4-2021
|
Q1-2022
|
Q2-2022
|
Q3-2022
|
|
YoY
Growth
|
|
|
|
|
|
|
|
|
Total
Enterprise Clients
|
720
|
803
|
847
|
903
|
968
|
|
34 %
|
Total
Embedded Solutions Clients
|
12
|
14
|
15
|
18
|
19
|
|
58 %
|
Total Number of
Clients
|
732
|
817
|
862
|
921
|
987
|
|
35 %
|
Consolidated Net Dollar Retention Rate6 for the
quarter was 78%, an increase from 76% in the previous period,
largely due to expansion and cross-sell within enterprise clients,
and growth within embedded solutions clients. Despite the negative
impact of the large, embedded solutions client to consolidated Net
Dollar Retention Rate, the Net Dollar Retention Rate for enterprise
clients remained strong at approximately 97% as at September 30, 2022.
Logo Retention Rate7 was 87% as at September 30, 2022, however upsell and cross-sell
within the portfolio of existing enterprise clients is effectively
maintaining the overall Net Dollar Retention Rate near where the
Company would expect it to be. As retention is measured on an LTM
basis, the lower Logo Retention Rate is primarily attributable to
the loss of smaller client logos following the acquisition of
Wellbeats in the first quarter of 2022 and is expected to normalize
through the balance of the year. Despite a slightly lower Logo
Retention Rate, new logo additions are, on average, larger on an
ARR basis than those of logos being lost. In addition, as the
cross-sell and up-sell efforts continue, the Company expects Net
Dollar Retention Rate to increase as existing clients are sold
additional products and services over time.
In addition to the continued focus on revenue growth, the
Company has also made progress in acquisition integration, which
has led to the ability to generate significant cost savings. While
there has been a reduction in headcount, largely through identified
redundancies, the Company has been focused on optimizing the cost
base in all areas. The focus on integration has resulted in
significant annualized cost savings, and in the third quarter of
2022 the Company generated annualized cost savings of approximately
$1.2 million, bringing total
annualized savings to approximately $7.8
million. The implementation of these synergies is largely
complete, and the Company views its current operating state as more
than capable to execute on its growth plan into the future.
________________________________
|
5
|
Pro Forma Number of
Clients is calculated assuming that the acquisitions of "Lift
session", "ALAViDA", "Torchlight" and "Wellbeats" as described in
our AIF had been completed prior to the applicable period. This
metric is provided for illustrative purposes to provide a
comparative measure to show Number of Clients as if all businesses
had been reporting as a combined entity.
|
6
|
See "Non-IFRS Measures,
Non-IFRS Ratios and Key Performance Indicators" for a definition,
"Net Dollar Retention Rate".
|
7
|
See "Non-IFRS Measures,
Non-IFRS Ratios and Key Performance Indicators" for a definition,
"Logo Retention Rate".
|
Financial Results for the Three and Nine Months Ended
September 30, 2022
Selected
Consolidated Financial Information
(in thousands of
Canadian dollars)
|
|
Three Months Ended September
30,
|
|
Nine Months Ended September 30,
|
|
|
2022
|
2021
|
|
2022
|
2021
|
Revenue
|
|
12,766
|
5,921
|
|
33,616
|
16,428
|
Less:
|
|
|
|
|
|
|
Product Development and
Content
|
|
1,179
|
671
|
|
3,613
|
1,455
|
Gross
Profit.................................................
|
|
11,587
|
5,250
|
|
30,003
|
14,974
|
Gross Profit
Margin (1)
|
|
|
|
|
|
|
Gross Profit
Margin......................................
|
|
91 %
|
89 %
|
|
89 %
|
91 %
|
|
|
|
|
|
|
|
Deduct
Expenses:
|
|
|
|
|
|
|
Sales and
marketing.....................................
|
|
2,662
|
2,525
|
|
9,686
|
6,150
|
General and
administrative.........................
|
|
6,485
|
2,151
|
|
20,309
|
4,960
|
Share-based
compensation..........................
|
|
1,587
|
3,865
|
|
7,431
|
5,198
|
Foreign exchange loss
(gain).......................
|
|
(4,032)
|
(103)
|
|
(3,591)
|
(26)
|
Depreciation and
amortization....................
|
|
4,421
|
28
|
|
11,277
|
56
|
|
|
11,123
|
8,466
|
|
45,111
|
16,339
|
|
|
|
|
|
|
|
Income (loss) before
restructuring and other
costs and finance
expense...........................................
|
|
464
|
(3,216)
|
|
(15,109))
|
(1,365)
|
|
|
|
|
|
|
|
Restructuring and other
costs (2)..................
|
|
686
|
16,587
|
|
10,435
|
17,502
|
Revaluation gain on
contingent consideration
|
|
(2,216)
|
--
|
|
(3,951)
|
--
|
Finance expense,
net...................................
|
|
3,804
|
273
|
|
6,675
|
661
|
|
|
|
|
|
|
|
Income (loss) before
income taxes.............
|
|
(1,810)
|
(20,076)
|
|
(26,268)
|
(19,478)
|
Income taxes (recovery)
..............................
|
|
(405)
|
--
|
|
(2,051)
|
--
|
|
|
|
|
|
|
|
Net income
(loss) .........................
|
|
(1,406)
|
(20,076)
|
|
(24,217)
|
(19,478)
|
|
|
|
|
|
|
|
Earning (loss) per
share - basic..................
|
|
(0.03)
|
(0.43)
|
|
(0.49)
|
(0.65)
|
Earnings (loss) per
share- diluted...............
|
|
(0.03)
|
(0.43)
|
|
(0.49)
|
(0.65)
|
|
|
|
|
|
|
|
Non-IFRS
Measures
|
|
|
|
|
|
|
EBITDA
(3)......................................................
|
|
6,415
|
(19,775)
|
|
(8,316)
|
(18,810)
|
Adjusted EBITDA
(4) ......................................
|
|
3,078
|
1,561
|
|
5,872
|
5,653
|
Adjusted Net Income
(Loss) (5).....................
|
|
(4,743)
|
1,260
|
|
(10,028)
|
4,986
|
Adjusted earnings
(loss) per share – basic
(6)
|
|
(0.09)
|
0.03
|
|
(0.20)
|
0.17
|
Adjusted earnings
(loss) per share – diluted(7)
|
|
(0.09)
|
0.03
|
|
(0.20)
|
0.17
|
|
Notes:
|
(1)
|
Gross profit margin is
calculated as gross profit divided by revenue for the relevant
period.
|
(2)
|
Restructuring and other
costs are costs related to the entry into of the Company's credit
agreement and recapitalization distributions and expenses related
to the investment by the Institutional Investors, costs and
expenses in connection with the Company's IPO and related matters
and costs and expenses in connection with the Company's
acquisitions, including potential transaction bonuses (for the
purposes of calculating Adjusted EBITDA and Adjusted Net
Income).
|
(3)
|
"EBITDA" has the
meaning ascribed herein under "Cautionary Note Regarding
Non-IFRS Measures, Non-IFRS Ratios and Key Performance
Indicators".
|
(4)
|
"Adjusted
EBITDA" has the meaning ascribed herein under "Cautionary
Note Regarding Non-IFRS Measures, Non-IFRS Ratios and Key
Performance Indicators".
|
(5)
|
"Adjusted Net Income
(Loss)" has the meaning ascribed herein under "Cautionary
Note Regarding Non-IFRS Measures, Non-IFRS Ratios and Key
Performance Indicators".
|
(6)
|
"Adjusted earnings
(loss) per share – basic" has the meaning ascribed herein under
"Cautionary Note Regarding Non-IFRS Measures, Non-IFRS Ratios
and Key Performance Indicators".
|
(7)
|
"Adjusted earnings
(loss) per share – diluted" has the meaning ascribed herein
under "Cautionary Note Regarding Non-IFRS Measures, Non-IFRS
Ratios and Key Performance Indicators".
|
Conference Call Notification
The Company will hold a conference call to provide a business
update on Thursday, November 10,
2022, at 8:30 a.m. ET hosted
by:
- Nolan Bederman, Executive
Chairman
- Michael Held, CEO
- Michael McKenna, CFO
A question-and-answer session will follow the business
update.
CONFERENCE CALL
DETAILS
|
DATE:
|
Thursday, November 10,
2022
|
TIME:
|
8:30 a.m. ET
|
DIAL-IN
NUMBERS:
|
1.833.950.0062 or
1.844.200.6205
|
REFERENCE
NUMBER:
|
479506
|
This live call is also being webcast and can be accessed by
going to:
https://events.q4inc.com/attendee/599245852
An archived telephone replay of the call will be available for
two weeks by dialing 1.866.813.9403 and entering access code
325147.
Non-IFRS Measures, Non-IFRS Ratios and Key Performance
Indicators
LifeSpeak supplements its results of operations determined in
accordance with IFRS with certain non-IFRS financial measures,
non-IFRS ratios and key performance indicators that the Company
believes are useful to investors, lenders and others in assessing
its performance and which highlight trends its core business that
may not otherwise be apparent when relying solely on IFRS measures.
LifeSpeak management also uses non-IFRS measures, non-IFRS ratios
and key performance indicators for purposes of comparison to prior
periods, to prepare annual operating budgets, for the development
of future projections and earnings growth prospects, to measure the
profitability of ongoing operations and in analyzing our financial
condition, business performance and trends. As such, these measures
and indicators are provided as additional information to complement
those IFRS measures by providing further understanding of the
Company's results of operations from management's perspective,
including how it evaluates its financial performance and how it
manages its capital structure. LifeSpeak also believes that
securities analysts, investors and other interested parties
frequently use these non-IFRS measures, non-IFRS ratios and key
performance indicators in the evaluation of issuers. These non-IFRS
measures, non-IFRS ratios and key performance indicators are not
recognized measures under IFRS and do not have a standardized
meaning prescribed by IFRS and may include or exclude certain items
as compared to similar IFRS measures, and such measures may not be
comparable to similarly-titled measures reported by other
companies. Accordingly, these measures and indicators should not be
considered in isolation nor as a substitute for analysis of our
financial information reported under IFRS.
Non-IFRS Measures, Non-IFRS Ratios and Reconciliation of
Non-IFRS Measures
The Company uses non-IFRS measures, including "EBITDA",
"Adjusted EBITDA", "Adjusted Net Income (Loss)", and the non-IFRS
ratios, including "Adjusted earnings (loss) per share – basic",
"Adjusted earnings (loss) per share – diluted" and "Adjusted EBITDA
Margin". This press release also makes reference to "Annual
Recurring Revenue" or "ARR", "Net Dollar Retention Rate", "Number
of Clients" and "Logo Retention Rate", which are key performance
indicators used in our industry.
EBITDA and Adjusted EBITDA
"EBITDA" is defined as net profit or loss before income tax
expenses, finance costs and depreciation and amortization
"Adjusted EBITDA" is defined as EBITDA before non-recurring
restructuring and other costs related to the entry into of the
Company's credit agreement and recapitalization distributions,
expenses related to the investment by the Institutional Investors,
costs and expenses in connection with the Company's IPO and related
matters, cost and expenses related to the Company's acquisitions,
synergies realized in connection with the acquisitions, share-based
compensation, foreign exchange loss (gain) and shareholders
distributions. These non-recurring costs are independent events
which are non-recurring in nature and incurred over several
financial periods.
"Adjusted EBITDA Margin" is calculated as Adjusted EBITDA
divided by revenue for the relevant period.
Selected
Consolidated Financial Information
(In thousands
of Canadian dollars)
|
|
Three Months Ended September
30,
|
|
Nine Months Ended September 30,
|
|
|
2022
|
2021
|
|
2022
|
2021
|
Net income
(loss)........................
|
|
(1,406)
|
(20,076)
|
|
(24,217)
|
(19,478)
|
Add:
|
|
|
|
|
|
|
Amortization and
depreciation
expense
|
|
4,421
|
28
|
|
11,277
|
56
|
Finance
expense..........................
|
|
3,804
|
273
|
|
6,675
|
611
|
Income tax expense
(recovery)...
|
|
(405)
|
--
|
|
(2,051)
|
--
|
EBITDA
(1)...................................
|
|
6,415
|
(19,775)
|
|
(8,316)
|
(18,810)
|
Add:
|
|
|
|
|
|
|
Restructuring and other
costs(2)..
|
|
686
|
16,587
|
|
10,435
|
17,502
|
Share-based
compensation.........
|
|
1,587
|
3,865
|
|
7,431
|
5,198
|
Foreign exchange loss
(gain) .....
|
|
(4,031)
|
(103)
|
|
(3,591)
|
(26)
|
Revaluation gain on
contingent consideration
|
|
(2,216)
|
--
|
|
(3,951)
|
--
|
Shareholders
distributions (3).......
|
|
--
|
--
|
|
--
|
600
|
Synergies realized
(4) ...................
|
|
472
|
--
|
|
2,410
|
--
|
Additional one-time
costs (5) ......
|
|
166
|
987
|
|
1,454
|
1,189
|
Adjusted EBITDA
(6)................
|
|
3,078
|
1,561
|
|
5,872
|
5,653
|
Adjusted EBITDA Margin
(7) ........
|
|
24 %
|
26 %
|
|
17 %
|
34 %
|
Notes:
|
(1)
|
"EBITDA" has the
meaning ascribed herein under "Cautionary Note Regarding
Non-IFRS Measures, Non-IFRS Ratios and Key Performance
Indicators".
|
(2)
|
Restructuring and other
costs are costs related to the entry into of the Company's credit
agreement and recapitalization distributions and expenses related
to the investment by the Institutional Investors, costs and
expenses in connection with the Company's IPO and related matters
and costs and expenses in connection with the Company's
acquisitions, including potential transaction bonuses (for the
purposes of calculating Adjusted EBITDA and Adjusted Net
Income).
|
(3)
|
Shareholders
distributions includes private company legacy profit sharing
payment to shareholders.
|
(4)
|
Synergies realized
relates to the impact of the full period of cost synergies related
to the reduction of employees and professional services in relation
to acquisitions.
|
(5)
|
One-time costs related
to IPO specific adjustments, acquisitions specific adjustments and
transition costs related to the Wellbeats acquisition.
|
(6)
|
"Adjusted
EBITDA" has the meaning ascribed herein under "Cautionary
Note Regarding Non-IFRS Measures, Non-IFRS Ratios and Key
Performance Indicators".
|
(7)
|
"Adjusted EBITDA
Margin" has the meaning ascribed herein under "Cautionary
Note Regarding Non-IFRS Measures, Non-IFRS Ratios and Key
Performance Indicators".
|
Adjusted Net Income (Loss) / Adjusted Earnings (Loss)
"Adjusted Net Income (Loss)" is defined as net income (loss)
before non-recurring restructuring and other costs related to the
entry of the Company's credit agreement and recapitalization
distributions, expenses related to the investment by the
Institutional Investors and costs and expenses in connection with
the Company's IPO and related matters, cost and expenses related to
the Company's acquisitions, synergies realized in connection with
the acquisitions, share-based compensation, foreign exchange loss
(gain). These non-recurring costs are independent events which are
non-recurring in nature and incurred over several financial
periods.
"Adjusted earnings (loss) per share – basic" is defined as
Adjusted Net Income (Loss) divided by the weighted average number
of shares outstanding – basic for the relevant period.
"Adjusted earnings (loss) per share – diluted" is defined as
Adjusted Net Income (Loss) divided by the weighted average number
of shares outstanding – diluted for the relevant period.
Selected
Consolidated Financial Information
(In thousands
of Canadian dollars)
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2022
|
2021
|
|
2022
|
2021
|
Net income
(loss)........................
|
|
(1,406)
|
(20,076)
|
|
(24,217)
|
(19,478)
|
Add:
|
|
|
|
|
|
|
Restructuring and other
costs(1)..
|
|
686
|
16,587
|
|
10,435
|
17,502
|
Share-based
compensation.........
|
|
1,586
|
3,865
|
|
7,431
|
5,198
|
Foreign exchange loss
(gain) .....
|
|
(4,032)
|
(103)
|
|
(3,591)
|
(26)
|
Revaluation gain on
contingent consideration
|
|
(2,216)
|
--
|
|
(3,951)
|
--
|
Shareholders
distributions (2).......
|
|
--
|
--
|
|
--
|
600
|
Synergies realized
(3) ...................
|
|
472
|
--
|
|
2,410
|
--
|
Additional one-time
costs (4) ......
|
|
166
|
987
|
|
1,454
|
1,189
|
Adjusted Net Income
(Loss) (5)
|
|
(4,743)
|
1,260
|
|
(10,028)
|
4,986
|
Adjusted earnings per
share – basic (6)
|
|
(0.09)
|
0.03
|
|
(0.20)
|
0.17
|
Adjusted earnings per
share – diluted
(7)
|
|
(0.09)
|
0.03
|
|
(0.20)
|
0.17
|
Notes:
|
(1)
|
Restructuring and other
costs are costs related to the entry into of the Company's credit
agreement and recapitalization distributions and expenses related
to the investment by the Institutional Investors, costs and
expenses in connection with the Company's IPO and related matters
and costs and expenses in connection with the Company's
acquisitions, including potential transaction bonuses (for the
purposes of calculating Adjusted EBITDA and Adjusted Net
Income).
|
(2)
|
Shareholders
distributions includes private company legacy profit sharing
payment to shareholders.
|
(3)
|
Synergies realized
relates to the impact of the full period of cost synergies related
to the reduction of employees and professional services in relation
to acquisitions.
|
(4)
|
One-time costs related
to IPO specific adjustments, acquisitions specific adjustments and
transition costs related to the Wellbeats acquisition.
|
(5)
|
"Adjusted Net Income
(Loss)" has the meaning ascribed herein under "Cautionary
Note Regarding Non-IFRS Measures and Key Performance
Indicators."
|
(6)
|
"Adjusted earnings
(loss) per share – basic" has the meaning ascribed herein under
"Cautionary Note Regarding Non-IFRS Measures, Non-IFRS Ratios
and Key Performance Indicators".
|
(7)
|
"Adjusted earnings
(loss) per share – diluted" has the meaning ascribed herein
under "Cautionary Note Regarding Non-IFRS Measures, Non-IFRS
Ratios and Key Performance Indicators".
|
Key Performance Indicators
Annual Recurring Revenue
"Annual Recurring Revenue" or "ARR" is equal to the annualized
value of contracted recurring revenue from all clients of our
platform at the date being measured. Contracted recurring revenue
is revenue generated from clients who are, as of the date being
measured, party to contracts with LifeSpeak. Such revenue is
annualized by: (i) in the case where a contract was in existence
for the entire month, multiplying recognized revenue in the
calendar month of the date measured by 12; and (ii) in the case
where a contract was entered into mid-month, extrapolating
recognized revenue at the date measured for the entire calendar
month, and then multiplying by 12. Contract lengths typically range
from one to three years and, based on our past experience, the vast
majority of clients renew their contracts upon expiry. ARR is
mainly comprised of revenue from enterprise and embedded solutions
and includes revenue from small business and ancillary services
(comprised of portals, kits and events purchased by our existing
clients or distributed through our channel partners). ARR provides
a consolidated measure by which we can monitor the longer-term
trends in our business.
"embedded solutions client ARR" is ARR at a particular
date attributable to our embedded solutions clients.
"enterprise client ARR" is ARR at a particular date
attributable to enterprise clients.
Net Dollar Retention Rate
"Net Dollar Retention Rate" for a period is defined by
considering a cohort of clients at the beginning of the period, and
dividing the ARR from enterprise and embedded solutions
attributable to that cohort at the end of the period, by the ARR
from enterprise and embedded solutions attributable to that cohort
at the beginning of the period. Net Dollar Retention Rate provides
a consolidated measure by which we can monitor the percentage of
recurring ARR retained from existing clients
Number of Clients
"Number of Clients" is defined as the number of clients at the
end of any particular period as the number of enterprise clients
and clients of our embedded solutions for which the term of
services has not ended, or with which the Company is negotiating
contract renewal and which meet a minimum revenue threshold.
Logo Retention Rate
"Logo Retention Rate" for a period is defined by considering a
cohort of clients at the beginning of the period, and dividing the
Number of Clients from that cohort at the end of the period, by the
Number of Clients from that cohort at the beginning of the period.
Logo Retention Rate provides a consolidated measure by which the
Company can monitor the percentage of contracted clients retained
every year.
About LifeSpeak Inc.
LifeSpeak is the leading whole-person-wellbeing platform for
employers and other organizations that brings together digital
education with human support. Our suite of wellbeing solutions
allows organizations to provide best-in-class content and expertise
that scales, meeting each individual wherever they are on their
personal wellbeing journeys. As the parent company to LIFT Digital,
ALAViDA Health, Torchlight, and Wellbeats, LifeSpeak provides
in-depth expertise across mental health, wellness, fitness,
nutrition, substance use, and caregiving. With more than 30 years
of collective experience, LifeSpeak works directly with Fortune 500
companies, government agencies, insurance providers, and others
across the globe to uncover gaps in wellbeing at the individual and
organizational levels, ultimately enhancing workplace performance
outcomes. To learn more, follow LifeSpeak on LinkedIn
(http://www.linkedin.com/company/lifespeak-inc), or visit
www.LifeSpeak.com.
Forward-Looking Information
This press release may contain "forward-looking information"
within the meaning of applicable Canadian securities laws.
Forward-looking information may relate to the Company's future
business, financial outlook and anticipated events or results and
may include information regarding the Company's financial position,
business strategy, growth strategies, addressable markets, budgets,
operations, financial results, taxes, and the Company's plans and
objectives. In some cases, forward-looking information can be
identified by the use of forward-looking terminology such as
"plans", "targets", "expects" or "does not expect", "is expected",
"an opportunity exists", "budget", "scheduled", "estimates",
"outlook", "forecasts", "projection", "prospects", "strategy",
"intends", "anticipates", "does not anticipate", "believes", or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might",
"will", "will be taken", "occur" or "be achieved". In addition, any
statements that refer to expectations, intentions, projections or
other characterizations of future events or circumstances contain
forward-looking information. Particularly, information regarding
the Company's expectations of future results, revenue growth, ARR,
EBIDTA, EBITDA margin, adjusted EBITDA, adjusted Net Income (Loss),
Number of Clients, Net Dollar Retention Rate, performance,
synergies, achievements, prospects, industry trends, or
opportunities, including for cross-selling, or the markets in which
the Company operates is forward-looking information. Statements
containing forward-looking information are not historical facts but
instead represent management's expectations, estimates and
projections regarding possible future events or circumstances.
This forward-looking information and other forward-looking
information are based on opinions, estimates and assumptions in
light of the Company's experience and perception of historical
trends, current conditions and expected future developments, as
well as other factors that the Company currently believes are
appropriate and reasonable in the circumstances. Despite a careful
process to prepare and review the forward-looking information,
there can be no assurance that the underlying opinions, estimates
and assumptions will prove to be correct. These opinions, estimates
and assumptions include, but are not limited to, the following: the
Company's ability to build its market share and enter new
geographies; the total available market for its products; the
Company's ability to retain key personnel; the Company's ability to
maintain and expand geographic scope; the Company's ability to
execute on its expansion plans; the Company's ability to increase
Number of Clients generally and during particular time periods; the
Company's ability to continue investing in infrastructure to
support its growth and brand recognition; the Company's capability
to execute on its growth plan in the future; the Company's ability
to continue maintaining and enhancing its technological
infrastructure and functionality of its platform; the Company's
ability to obtain financing on acceptable terms; the Company's
ability to effectively integrate its recent acquisitions; the
Company's ability to generate sufficient cash to deleverage, the
impact of competition; the changes and trends in the Company's
industry or the global economy; and changes in laws, rules,
regulations, and global standards.
The risks and uncertainties that may affect forward-looking
statements include, among others: performance of the market sectors
that the Company serves; general market performance including
capital market conditions and availability and cost of credit;
foreign currency and exchange risk; impact of factors such as
increased pricing pressure and possible margin compression; the
regulatory and tax environment; that expected cost and revenue
synergies are not realized within the expected timeframe or at all;
that revenue, ARR, EBITDA margin and cash flow expectations are not
met for any number of reasons; political, labour or supplier
disruptions; that our clients face recessionary pressures, and
other risks detailed from time to time in the Company's filings
with Canadian provincial securities regulators, including the risk
factors which are described in greater detail under "Risk Factors"
in the Company's annual information form for the fiscal year ended
December 31, 2021. Although the
Company has attempted to identify important risk factors that could
cause actual results to differ materially from those contained in
forward-looking information, there may be other risk factors not
currently known to the Company or that the Company currently
believes are not material that could also cause actual results or
future events to differ materially from those expressed in such
forward-looking information. There can be no assurance that such
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information.
Accordingly, prospective investors should not place undue
reliance on forward-looking information. The forward-looking
information contained in this press release represents the
Company's expectations as of the date of this press release (or as
the date it is otherwise stated to be made) and is subject to
change after such date. However, the Company disclaims any
intention or obligation or undertaking to update or revise any
forward-looking information whether as a result of new information,
future events or otherwise, except as required under applicable
Canadian securities laws.
All of the forward-looking information contained in this press
release is expressly qualified by the foregoing cautionary
statements. Prospective investors should read this entire press
release and consult their own professional advisors to ascertain
and assess the income tax, legal, risk factors and other aspects of
an investment in the Company.
SOURCE LifeSpeak Inc.