Your thoughts on WELL’s quarter? Looks messy, does this change your outlook?
Thank you
Q4 EPS was a loss of 7c vs estimates of 5.8c. Revenue of $234M missed estimates of $263M. EBITDA was negative $3.74M vs expectations of $35.5M. The company reclassified some revenue from Circle to deferred revenue, and this was the main variable in the miss. This will still become revenue over the next 18 months. Overall, revenue rose 19% for the year. 2025 guidance calls for $1.45B in revenue and EBITDA of $190M+. This is ahead of current estimates, even if we discount things a bit. This includes consolidation of Healwell results and assumes the deferred revenue does come in. The company did not provide much disclosure to the Q4 results, preferring to focus on the full year. Certainly the Circle issue did not go over well with investors, and CRH was also hit by a cyber attack. But the outlook does look better than the past. We would agree it is a messy report, and the company needs to put its recent troubles behind it. If it can execute on its stated guidance, we think investors will forgive it for 2024's indiscretions. The conference call is later today and we may get more details then. We would remain comfortable holding or accumulating slowly if it weakens further.