Reliq Health Technologies Inc.

For the quarter ended March 31, 2023, revenue increased over 88% to roughly $4.7 million. Software and services revenue rose 69% to about $1.8 million. The company said this was its first profitable quarter, with a net gain of $731,000, and adjusted EBITDA improved by over 2000% versus the same period last year. Looking ahead, management said the quarter ending June 30 should capture the bulk of the $15 million in contracted hardware sales that have already been ordered, with those hardware shipments also expected to drive later software revenue. They also said collections should improve significantly in the June quarter and that the company does not expect to need to raise capital or take on debt to fund operations.

Lisa Crossley framed the quarter as an early-stage transition period, saying the company began substantive business-model changes in January and that the March quarter only partially reflects them. She emphasized a strategic move toward larger healthcare organizations, phase deployments, stronger adherence management, and better collections, while saying these changes should support much stronger software growth and cash flow later in the year. Her tone was confident and optimistic, especially around the long-term opportunity from blue-chip clients and the $15 million hardware pipeline.

No CFO spoke on this call; Lisa Crossley provided the financial commentary. She highlighted the 88% revenue increase to about $4.7 million, the 69% rise in software and services revenue to about $1.8 million, the $731,000 net gain, and adjusted EBITDA improvement of over 2000%. She also said hardware is sold on 12- to 24-month payment plans, so receivables will remain elevated, but stale receivables should disappear by the end of June as collections normalize, improving the company’s cash position. She added that management expects no need for external financing and plans to initiate a share buyback later this year once there is sufficient free cash flow.

There was no live analyst Q&A, but the CEO addressed recurring shareholder questions. She explained that Accountable Care Organizations are value-based groups focused on reducing costs, and said Reliq’s platform has been proven to reduce hospitalizations and related healthcare costs by over 80%, which should support adoption. She also addressed capital needs directly, saying the company does not expect to raise capital or take on debt and expects to begin a share buyback later this year. She said a more detailed progress update should come in a mid-July webinar, with another update in early September.