VSee Health Reports Third Quarter 2024 Revenue Up 131% Year-over-Year
SAN JOSE, Calif.--(BUSINESS WIRE)--November 15, 2024--
VSee Health, Inc. (Nasdaq: VSEE), a provider of comprehensive telehealth services that customize workflow streams and enhance patient care, today provided a business update and reported financial results for the three and nine months ended September 30, 2024.
Financial & Business Highlights
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Revenue was $3.4 million for the third quarter of 2024, up 131% over
the third quarter of 2023.
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Revenue was $6.6 million for the nine months ended September 30, 2024,
up 51% over the nine months ended September 30, 2023.
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Contracted with Seven Corners Correctional Health, the operator of 24
federal prisons, to offer accessible, quality specialty care to the
inmate population they serve.
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Expanded our telehealth and billing services to major healthcare
clients through a partnership with SkywardRx, including nonprofit,
hospital and Fortune 20 corporate clients.
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Partnered with Ava Robotics for the development of a VSee
Health-powered Ava robot that allows providers to extend their reach and
provide personalized care remotely to hospital intensive care units.
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Launched Aimee, an innovative virtual healthcare, labs and prescription
drug service that patients can access whether or not they have health
insurance, providing low-cost access to quality healthcare.
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Launched a sea ambulance telehealth initiative utilizing Starlink
satellite technology, providing US veterans and residents in remote areas
with access to virtual doctor consultations and emergency care.
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Introduced a GLP-1 telehealth program to address obesity and chronic
diseases, integrating prescription medication, personalized care plans,
and behavioral interventions to provide affordable, impactful healthcare
solutions for underserved communities.
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Partnered with BabyLiveAdvice to address maternal care disparities by
launching an innovative virtual maternal care model to provide
comprehensive care for underserved communities.
Management Commentary
"This quarter marks a transformative moment for VSee Health, the completion of our first full quarter post-merger. The integration of VSee Lab and iDoc Virtual Telehealth Solutions has solidified our position in delivering scalable, tailored telehealth solutions," said Imo Aisiku, M.D., co-CEO and Chairman of VSee Health. "We believe our combined company is uniquely positioned to address critical challenges in healthcare, from expanding access in underserved communities to optimizing workflows for enterprise-level clients. This period has demonstrated the resilience of our platform and our capacity to drive meaningful impact."
"We believe that our ability to combine fast customization, enterprise scalability, and robust security is what sets us apart in the crowded telehealth space. This quarter's strategic initiatives and partnerships, including the launch of programs addressing obesity, maternal health disparities, and veteran care, exemplify our commitment to delivering scalable solutions that improve lives while creating long-term value for our stakeholders," added Milton Chen, Ph.D., co-CEO of VSee Health.
Third Quarter Financial Results
Third quarter consolidated financial statements include the accounts of VSee Health, Inc. and its subsidiaries, VSee Lab, Inc. and iDoc Virtual Telehealth Solutions, Inc., which are both 100% wholly owned subsidiaries of VSee Health following the business combination on June 24, 2024.
Revenue was $3.4 million for the third quarter of 2024, compared to $1.5 million for the third quarter of 2023, an increase of 131%. The increase was primarily driven by $1.1 million or 100% of revenue from the acquisition of iDoc in the second quarter, as well as higher technical and engineering fees, and professional and other fees and. Technical and engineering fees increased by 267% due to a higher volume of engineering, customizations and integration services provided to the U.S. Department of Health and Human Services and existing customers. Professional and other fees increased by 40% due to higher project management services primarily to a recently signed significant client. Subscription revenue also increased 9% due to higher usage volumes.
Operating expenses for the third quarter of 2024 increased by $58.2 million. The increase was driven by one-time goodwill impairment charges of $55.0 million. The increase was also driven by higher general and administrative expense, primarily from amortization expense and an increase in expenses related to the acquisition of iDoc, as well as transaction related expenses from the recapitalization and acquisitions of DHAC and iDoc, primarily for professional and advisory service fees.
Net loss for the third quarter of 2024 was $51.8 million, compared to a net loss of $0.1 million for the third quarter of 2023. The increase was primarily driven by one-time goodwill impairment charges of $55.0 million, and a $0.7 million loss on extinguishment related to note conversions and shares issued to vendors. These were partially offset by a $5.7 million gain on the change in fair value of debt and derivative financial instruments.
Nine Month Financial Results
Revenue was $6.6 million for the nine months ended September 30, 2024, compared to $4.3 million for the nine months ended September 30, 2023, an increase of $2.2 million or 51%. The increase was primarily driven by 100% of revenue from the acquisition of iDoc in the second quarter, as well as higher technical and engineering fees, and professional and other fees. Technical and engineering fees increased by 161% due to a higher volume of customizations, engineering, and integration services for a recently signed significant client and existing customers. Professional and other fees increased by 50% due to increased project management services, higher patient visits, and higher hardware purchases from new customers during the second quarter. These increases were offset by a 2% decline in subscription revenue due to the churned enterprise customers in 2024, as some clients gradually shifted back to face-to-face consultations.
Operating expenses for the nine months ended September 30, 2024 increased by $58.6 million to $63.0 million. The increase was driven by one-time goodwill impairment charges of $55.0 million, as well as higher general and administrative expenses, primarily from amortization expense and an increase of expenses related to the acquisition of iDoc. Additionally, transaction expenses from the recapitalization and acquisitions of DHAC and iDoc contributed to the increase, primarily for professional and advisory service fees.
Net loss for the nine months ended September 30, 2024, was $52.1 million, compared to a net loss of $1.0 million for the same period in 2023. The increase was primarily driven by one-time goodwill impairment charges of $55.0 million, $1.6 million initial fair value loss on the Quantum Note, and $0.7 million loss on extinguishment related to note conversions and shares issued to vendors. These were partially offset by a $6.3 million gain on the change in fair value of debt and derivative financial instruments.
As of September 30, 2024, VSee Health had cash of $2.3 million.
Pro Forma Financial Results
The unaudited pro forma financial information in the tables below summarizes the combined results of VSee Health's operations and iDoc's operations, as though the acquisition of iDoc had been completed as of the beginning of 2023.
Proforma total revenues for the third quarter of 2024 were $3.4 million compared with $3.1 million for the third quarter of 2023. Proforma total revenues for the nine months ended September 30, 2024, were $9.2 million compared with $9.4 million for the same period of 2023.
The proforma net loss for the third quarter of 2024 was $0.4 million, or $(0.02) per share, compared with a net loss of $1.3 million, or $(0.09) per share, for the third quarter of 2023. The proforma net loss for the nine months ended September 30, 2024, was $2.4 million, or $(0.16) per share, compared with a net loss of $3.4 million, or $(0.24) per share, for the same period of 2023.
The following table summarizes the pro forma financial information:
For the Three Months For the Nine Months Ended
Ended September 30, September 30,
------------------------- --------------------------
2024 2023 2024 2023
----------- ------------ ------------ ------------
Total
revenues $ 3,354,437 $ 3,076,235 $ 9,191,682 $ 9,390,435
Net loss $ (368,063) $(1,322,199) $(2,436,877) $(3,435,940)
Weighted
average
shares:
Basic and
diluted 15,077,548 14,806,820 14,821,999 14,602,506
Net loss
per
share:
Basic and
diluted $ (0.02) $ (0.09) $ (0.16) $ (0.24)
About VSee Health
VSee Health's AI telehealth platform is the fastest way for enterprises to go from ideation to market go-live. Field-hardened on over 1.5M HIPAA-compliant video encounters every month, its customizable telehealth building blocks each meet stringent security standards, and are ready to scale. VSee Health has deployed services in over 50 countries, including Iraq, Syria, Marshall Islands and El Salvador. Its clients include NASA Space Station, US Department of Health and Human Services, McKesson, Magellan, DaVita, GE, countless startups, and the entire country of Qatar.
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