In Q3-2024, VHI reported revenue growth of 25%, a slight acceleration compared to the previous two quarters, driven by strong annual recurring revenue growth (ARR). Gross margins are healthy at 81%. EBITDA grew 33% to $4.6M compared to $3.4M for the same period in the last year. EBITDA margins improved to 28% from 26% prior year. VHI’s financial position remains solid with $81M of cash, which may allow the company to accelerate its pace of acquisitions. Combined with the expected acquisition of Strata Health, which VHI announced recently, VHI is now expected to have an ARR of $68M. Overall, a decent quarter, in line with the recent trend due to solid execution. We think VHI continues to be a great long-term healthcare software serial acquirer.
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