LifeSpeak Inc. Announces Second Quarter 2024 Results and Board Changes

• Second quarter 2024 revenue of $12.4 million consistent with first quarter 2024 revenue
•  Adjusted EBITDA¹ for second quarter 2024 of $2.6 million and Adjusted EBITDA Margin¹ of 21%
• Subsequent to quarter end, the Company signed a significant partnership agreement with GreenShield, a leading Canadian integrated health and benefits organization

TORONTO, Aug. 14, 2024 /CNW/ - LifeSpeak Inc. ("LifeSpeak" or the "Company") (TSX: LSPK), the leading whole-person wellbeing solution for employers, health plans and other organizations, announced today its financial and operational results for the three and six months ended June 30, 2024. All references to dollar values in this press release are in Canadian dollars, unless otherwise indicated.

"LifeSpeak's revenue and Adjusted EBITDA have stabilized over the past three quarters," said Michael Held, CEO and Founder of LifeSpeak. "We believe that this consistent sequential financial performance demonstrates LifeSpeak's ability to weather challenging economic conditions while executing its business plan. Looking ahead, we are confident that we have achieved a level of consistency for the business that we can build on. We believe that our recent agreement with GreenShield, one the most significant partnerships in our history, is evidence of that opportunity."   

Consolidated Business Highlights for the Three Months Ended June 30, 2024

(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 June 30, 2024, unless otherwise stated)

• Second quarter 2024 revenue reached $12.4 million, a decrease of 6% compared to the same period in 2023 but a slight increase over the first quarter of 2024.
• ARR² of $48.3 million as at June 30, 2024, representing a decrease of 7% over the same period in 2023. Of the $48.3 million of ARR², approximately $41.3 million, or 85%, originated from enterprise clients. Of the $48.3 million of ARR², approximately 65% originated from clients outside of Canada.
• ARR² is reported on a constant currency basis using a 1.300 USD:CAD exchange rate. When adjusting for the exchange rate at the end of the second quarter 2024 of 1.369 USD:CAD, ARR² would be approximately $49.9 million.
• Second quarter 2024 Adjusted EBITDA¹ of $2.6 million, a decrease of $0.7 million compared to the same period in 2023 and consistent with first quarter 2024 Adjusted EBITDA¹.
• Second quarter 2024 Adjusted EBITDA¹ Margin of 21%.
• Second quarter 2024 net loss of $2.2 million, a decrease from a net loss of $6.3 million in the second quarter of 2023.
• Notable client additions for the second quarter of 2024 included Stepping Stones Group, LIXIL Americas, and Los Almos National Laboratory as new clients.
• Expansion of the Company's base of multi-product clients continued with the successful closing of a cross-sale expansion with Hoffmaster Group, subsequent to quarter end. Going forward, the Company anticipates continued uptake in cross-sell as it further executes on opportunities within the current portfolio, as well as an increase in multi-product sales with net new clients.
• Subsequent to quarter end, the Company signed a significant partnership agreement with GreenShield, a leading Canadian integrated health and benefits organization. The multi-product agreement is significant to LifeSpeak in its scale and is validation of the Company's continued strategy of partnering with organizations that value the Company's services and view them as additive to their own product offering. 
• Subsequent to quarter end, the Company announced the appointment of Lee Dabberdt as its new Chief Financial Officer, effective August 5, 2024. The Company believes that Ms. Dabberdt will strengthen its senior leadership team and augment its ability to scale its business.
• The Company has breached financial covenants triggering an event of default on its term loan commitment. This also resulted in a cross default on the Company's convertible term loan. The Company is currently in active discussions with its lenders to remedy the covenant breaches. LifeSpeak has historically had strong relationships with its lenders and intends to continue to work productively and constructively with them going forward.

ARR, Number of Clients, Consolidated Net Dollar Retention Rate and Logo Retention Rate

ARR² was approximately $48.3 million as at June 30, 2024, with core enterprise client ARR² of approximately $41.2 million.

ARR² was broken down as follows over the last five quarters:

Total Number of Clients³ was 893 as at June 30, 2024, compared to 996 as at June 30, 2023.

Number of Clients³ as broken down as follows over the last five quarters:

Consolidated Net Dollar Retention Rate⁴ for the quarter was 84%, compared to 89% during the same period in 2023. Net Dollar Retention⁴ for Enterprise Clients was approximately 84% as at June 30, 2024, as compared to 89% for the comparative period in 2023. Consolidated Net Dollar Retention⁴ is lower primarily due to an increase in overall Enterprise Client churn, offset by cross-sell and multi-product opportunities within the existing Enterprise Client base.

Logo Retention Rate⁵ was 75% as at June 30, 2024 compared to 89% for the comparable period in 2023. The lower Logo Retention Rate⁵ is primarily attributable to the loss of smaller enterprise client logos within the portfolio of customers. Despite the decrease in Number of Clients³, the relative contribution to ARR² of new clients is, on average, larger than that of lost clients.

Financial Results for the Three and Six Months Ended June 30, 2024:

Board Changes

With a view to his extensive other commitments, Kevin Smith has advised the Company that he will step down as a director of the Company effective today. Sanjiv Samant has agreed to become the Chair of the Audit Committee, and Rajesh Uttamchandani will join the Audit Committee as an additional member. Mr. Samant is founder and managing partner of PROPELR Growth Fund (formerly Round13 Growth Fund) and a seasoned investment banker and strategic advisor. The Company wishes to thank Mr. Smith for his extensive contributions to LifeSpeak and Mr. Samant and Mr. Uttamchandani for taking on these new roles.

Conference Call Notification

The Company will hold a conference call to provide a business update on Wednesday, August 14, 2024, at 8:00 a.m. ET hosted by:

• Nolan Bederman, Executive Chairman
• Michael Held, CEO
• Lee Dabberdt, CFO

A question-and-answer session will follow the business update.

This live call is also being webcast and can be accessed by going to:

https://events.q4inc.com/attendee/398785728

An archived telephone replay of the call will be available for two weeks by dialing 1.226.828.7578 or 1.866.813.9403 and entering access code 714810.

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 Loss", and the non-IFRS ratios, including "Adjusted loss per share – basic", "Adjusted 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 loss before income tax recovery, finance expenses, net and amortization and depreciation.

"Adjusted EBITDA" is defined as EBITDA before acquisition and other costs, share based compensation, foreign exchange loss (gain), impairment, changes in fair value of contingent consideration, synergies realized and additional one-time items. These non-cash and/or non-recurring costs are independent events and incurred over several financial periods.

"Adjusted EBITDA Margin" is calculated as Adjusted EBITDA divided by revenue for the relevant period.

Adjusted Net Loss / Adjusted Earnings (Loss)

"Adjusted Net Loss" is defined as net loss before other costs, share based compensation, foreign exchange loss (gain), impairment, changes in fair value of contingent consideration, synergies realized and additional one-time items. These non-cash and/or non-recurring costs are independent events and incurred over several financial periods.

"Adjusted loss per share – basic" is defined as Adjusted Net Loss divided by the weighted average number of shares outstanding – basic for the relevant period.

"Adjusted loss per share – diluted" is defined as Adjusted Net Loss divided by the weighted average number of shares outstanding – diluted for the relevant period.

(In thousands ofCanadian dollars)	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Net loss	(2,246)	(6,253)	(3,848)	(6,604)
Add:
Share-based compensation	(298)	1,390	249	2,856
Foreign exchange loss (gain)	(733)	1,844	(2,522)	1,893
Changes in fair value of contingent consideration	-	13	-	(3,538)
Synergies realized (1)	130	299	130	537
Additional one-time costs (2)	667	733	942	1,250
Adjusted Net Loss (3)	2,480	(1,974)	(5,049)	(3,606)
Adjusted loss per share – basic (4) By: PR Newswire Association LLC. - 14 Aug 2024 Return to news Partners Upcoming Life Sciences Events October 2024 Basel: Festival of Biologics Basel Barcelona: World Orphan Drug Congress Europe Barcelona: World Vaccine Congress Europe See Events » Add an Event » Latest company news Intelligent Bio Solutions Announces Adoption of its Non-Invasive Drug Screening Solution by Global Engineering Leader, Pyrotek 14 Oct 2024 (GlobeNewswire) Novo Nordisk A/S - share repurchase programme 14 Oct 2024 (GlobeNewswire) NZ Technologies and Barco Forge Strategic Partnership to Revolutionize Medical Imaging Interfaces with Artificial Intelligence 14 Oct 2024 (PR Newswire Association LLC.) About Biotechgate The Canadian Life Sciences Database is a product of Venture Valuation and part of the global Life Sciences lead generation and intelligence platform Biotechgate. Our mission is to provide up-to-date company and business information of the Biotech, Pharma and Medtech sectors to professionals everywhere, in order to support them in identifying the most appropriate business partners, customers and suppliers. Visit our global portal: www.biotechgate.com © Venture Valuation Follow us: