CloudMD Announces Rapid Growth of Enterprise Health Solutions Division

Secured $5 million in new, multi-year customer contracts since the beginning of the year

• Driving strong organic growth through cross-selling and integrated product offerings
  
• Identified over $500,000 in near-term operational synergies through the initial phase of integration
• Secured large corporate customer contract for new integrated health and wellness platform launching in April 2021
• CloudMD is one of a few companies in North America to provide one, centralized, whole-person solution for employers to better manage the health and wellness of employees
• Anticipated annual pro forma revenue growth rate of over 20% with healthy gross margins exceeding 50%
  

VANCOUVER, British Columbia, March 18, 2021 (GLOBE NEWSWIRE) -- CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF, Frankfurt: 6PH) (the “Company” or “CloudMD”), a healthcare technology company revolutionizing the delivery of care, is pleased to provide an update on its Enterprise Health Solutions (“EHS”) Division. Since launching the EHS Division, CloudMD has seen significant organic growth and integration synergies across the platform.

Organic Growth

The EHS Division offers one of the first centralized and connected platforms of health and wellness solutions for employers as part of their benefits programs. These solutions include employee assistance programs, mental health support, physician/allied health services, professional referrals, personalized healthcare navigation, speciality drug consultation, health literacy and education and other services aimed at prevention and early intervention of health concerns.

CloudMD closed the majority of its EHS business acquisitions in January 2021 and since then, the Company has secured $5 million in new, multi-year customer contracts for mental and physical health solutions. These recurring revenue contracts include organizations of all sizes including large corporate clients like Medavie Blue Cross. Additionally, the EHS Division has identified operational synergies by centralizing marketing, technology and finance functions, enabling a shared services approach with annual cost savings exceeding $500,000. The EHS Division is executing on market share growth, margin expansion, cross-selling and integration of capabilities. The Company expects to continue driving additional profitable, organic growth across the entire division. CloudMD anticipates the continued growth of the EHS Division, with annual pro forma revenue growth rate of over 20% and healthy gross margins exceeding 50%.