Mr. Shahbazi further added, "As of the end of Q2-2024, WELL proudly supported a network of over 3,900 providers and clinicians delivering care through our physical and virtual clinics. Our Canadian clinic transformation program continues to drive efficiencies in our clinics systemwide while driving enhanced organic growth. The clinics that have recently joined our network under our M&A or absorption programs are improving in terms of their overall operations and profitability. This success is driven by our focus on cost optimization, digital workflow integration, patient engagement technologies, and the implementation of advanced AI tools such as the ambient AI scribe and various co-pilot technologies powered by our partner HEALWELL AI.  We remain committed to empowering healthcare professionals with the latest in cutting-edge technology."

Eva Fong, WELL's Chief Financial Officer, added, "I am proud to announce that during Q2 2024 we paid down $14 million in debt and reduced our leverage ratio to 2.67x for bank debt and 3.45x for all debt including convertible debentures. I'm also pleased to report that we achieved positive IFRS net income in Q2 2024, and notably, our net income remains positive even if we exclude the unrealized gains from our investments in HEALWELL AI. Much of our progress is due to the comprehensive cost-cutting program that was implemented earlier this year that has significantly strengthened our operational efficiency and generated substantial annualized cost savings. In Q2-2024, we generated a record $35.2 million in cash flow from operating activities. In addition to these substantial savings and strong cash flows, this fiscal year we plan to reduce our yearly share dilution to its lowest level ever since being launched as a company. The Company is in an excellent position to continue funding its organic growth and future acquisition plans through cash flows from operations."

Second Quarter 2024 Financial Highlights:

• WELL achieved record quarterly revenue of $243.1 million in Q2-2024, an increase of 42% as compared to revenue of $170.9 million generated in Q2-2023. This growth was mainly driven by organic growth of 21% including clinic absorptions and 16% without absorptions.

• Adjusted Gross Profit⁽¹⁾ was $107.4 million in Q2-2024, an increase of 18% as compared to Adjusted Gross Profit⁽¹⁾ of $90.8 million in Q2-2023.

• Adjusted Gross Margin⁽¹⁾ percentage was 44.2% during Q2-2024 compared to Adjusted Gross Margin⁽¹⁾ percentage of 53.1% in Q2-2023. The decline in Adjusted Gross Margin percentage is mainly attributed to the acquisition of businesses in the past year that had lower gross margin percentage.

• Adjusted EBITDA⁽¹⁾ was $30.9 million in Q2-2024, an increase of 11% as compared to Adjusted EBITDA⁽¹⁾ of $27.8 million in Q2-2023.

• Adjusted EBITDA to WELL shareholders was $23.0 million in Q2-2024, an increase of 3% as compared to Adjusted EBITDA to WELL shareholders of $22.3 million in Q2-2023.

• Adjusted Net Income⁽¹⁾ was $12.3 million, or $0.05 per share in Q2-2024, as compared to Adjusted Net Income⁽¹⁾ of $14.4 million, or $0.06 per share in Q2-2023.

• Net Income was $117.0 million or $0.45 per share in Q2-2024, driven by material unrealized gains of WELL's investment in HEALWELL AI.

• Free cashflow attributable to WELL shareholders⁽¹⁾ was $8.7 million during Q2-2024, compared to $9.4 million during Q2-2023.

Second Quarter 2024 Segmented Results

• Canadian Patient Services revenue was $76.7 million in Q2-2024, an increase of 42% as compared to $54.2 million in Q2-2023.

• SaaS and Technology Services revenue was $16.9 million in Q2-2024, an increase of 27% as compared to $13.3 million in Q2-2023.

• U.S. Patient and Provider Services revenue was $149.5 million in Q2-2024, an increase of 45% as compared to $103.5 million in Q2-2023.

• Canadian Patient Services Adjusted EBITDA was $9.0 million in Q2-2024, an increase of 2% as compared to $8.9 million in Q2-2023 mainly due to lapping of a number of one-time positive impacts to profitability in Q2-2023.

• SaaS and Technology Services Adjusted EBITDA was $4.0 million in Q2-2024, an increase of 94% as compared to $2.1 million in Q2-2023.

• U.S. Patient and Provider Services Adjusted EBITDA was $23.2 million in Q2-2024, an increase of 9% as compared to $21.3 million in Q2-2023.

Second Quarter 2024 Patient Visit Metrics:

WELL achieved a record 1.4 million patient visits in Q2-2024, an increase of 38% compared to Q2-2023 and representing 5.6 million patient visits on an annualized run-rate basis. Patient visits were comprised of 759,000 patient visits in Canada and 640,000 patient visits in the US. Canadian Patient Services visits increased 41% while US Patient Services visits increased 34%, on a year-over-year basis. Growth in patient visits over the past year was primary driven by organic growth, including the clinic absorption program as well as acquisitions.

Total care interactions were 2.1 million in Q2-2024, a year-over-year increase of 48% compared to Q2-2023 and representing 8.4 million total care interactions on an annualized run-rate basis.

Second Quarter 2024 Business Highlights:

On April 30, 2024, the Company announced a five-year collaboration with Microsoft to enhance digital healthcare across North America, integrating Microsoft's cloud and AI with WELL's platform. This partnership focuses on elevating WELL's scalability and operational efficiency, aiming to transform healthcare delivery for large enterprises, including the public sector. The collaboration will also modernize WELL's cloud infrastructure, optimize costs, ensure data security, and integrate Azure OpenAI Service to advance healthcare solutions.

On May 2, 2024, the Company announced the launch of the second generation WELL AI Decision Support ("WAIDS"), featuring advanced chronic disease screening for conditions like diabetes and hypertension. This enhanced WAIDS version facilitates patient risk stratification and expands its disease detection capabilities. Powered by HEALWELL AI, the technology aids clinicians in decision-making, addressing chronic diseases that significantly impact Canadians.

On June 1, 2024, the Company completed the purchase to acquire all primary care medical clinics operated by Shoppers Drug Mart Inc. ("Shoppers") under "The Health Clinic by Shoppers?" brand. The acquisition included 10 clinics, with over 35 physicians, located in British Columbia and Ontario.

Events Subsequent to June 30, 2024:

On July 10, 2024, the Company announced the approval of a historic $44 million project, Health Compass II, the largest DIGITAL project ever awarded to advance AI-powered tech enablement for care providers. This initiative, led by WELL and its consortium partners, aims to enhance AI and interoperability in Canadian healthcare. As the lead commercialization partner and first customer, WELL will provide expertise and interoperability, enabling the development of new AI tools to support healthcare providers and improve patient outcomes.

On July 17, 2024, the Company announced the launch of its AI-powered co-pilot for cardiologists, powered by HEALWELL AI, to improve the detection of cardiovascular disease (CVD). This co-pilot, an extension of the WELL AI Decision Support (WAIDS) product offering, will be deployed in WELL Diagnostic Centers, Canada's largest cardiology and medical diagnostic group, across over 40 locations in Ontario. This initiative aims to assist cardiologists in identifying high-risk patients, enhancing early detection and management of CVD.

Outlook: 

WELL anticipates maintaining its strong performance through the remainder of 2024, with a strategic focus on enhancing operations for organic growth and profitability. The Company aims to pursue capital-efficient growth opportunities while effectively managing costs to deliver robust growth and sustained cash flow to shareholders. The Company's strong organic growth and healthy cash flow position it well to continue executing its growth strategies while progressively reducing debt.

Management is pleased to improve its guidance, which includes only announced acquisitions, as follows:

• Annual revenue for 2024 is projected to be in the range of $970 million to $990 million.

• Adjusted EBITDA for 2024 is projected to be in the upper range of $125 million to $130 million, despite increased cash costs due to lower share issuance and share based incentives.

• Free cashflow attributable to WELL shareholders is expected to be approximately $55 million.

WELL plans to advance its U.S. and Canadian Patient Services businesses through both organic and strategic growth, prioritizing capital efficiency. This approach will enable the Company to use business cash flows for debt reduction and minimizing share issuance. In Canada, WELL aims to strengthen its market leadership as the nation's premier pan-Canadian clinical network, offering a highly integrated, tech-enabled outpatient healthcare system.

Leveraging its deep technological expertise, WELL is prioritizing investments in AI technologies, with plans to continue to develop and launch innovative products and enhancements across its provider and clinic network.

Conference Call:

WELL will hold a conference call to discuss its 2024 Second Quarter financial results on Wednesday, August 14, 2024, at 1:00 pm ET (10:00 am PT). Please use the following dial-in numbers: 416-764-8650 (Toronto local), 778-383-7413 (Vancouver local), 1-888-664-6383 (Toll-Free) or +1-416-764-8650 (International).

The conference call will also be simultaneously webcast and can be accessed at the following audience URL: https://well.company/events.

Selected Unaudited Financial Highlights:

Please see SEDAR for complete copies of the Company's condensed interim consolidated financial statements and interim MD&A for the quarter ended June 30, 2024.

Footnotes:

1. Non-GAAP financial measures and ratios.
   In addition to results reported in accordance with IFRS, the Company uses certain non-GAAP financial measures as supplemental indicators of its financial and operating performance. These non-GAAP financial measures include Adjusted Net Income, Adjusted Net Income Per Share, Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Margin, and Adjusted Free Cash Flow. The Company believes these supplementary financial measures reflect the Company's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business.
   Adjusted Net Income and Adjusted Net Income per Share The Company defines Adjusted Net Income as net income (loss), after excluding the effects of stock-based compensation expense, amortization of acquired intangible assets, time-based earnout expense, change in fair value of investments, non-controlling interests, and revenue precluded from recognition under IFRS 15 that relates to certain patient services revenue that the Company believes should be recognized as revenue based on its contractual relationships. Adjusted Net Income Per Share is Adjusted Net Income divided by weighted average number of shares outstanding. The Company believes that these non-GAAP financial measures provide useful information to analyze our results, enhance a reader's understanding of past financial performance and allow for greater understanding with respect to key metrics used by management in decision making. More specifically, the Company believes Adjusted Net Income is a financial metric that tracks the earning power of the business that is available to WELL shareholders.
   EBITDA and Adjusted EBITDA EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA represents net income (loss) before interest, taxes, depreciation, and amortization. The Company defines Adjusted EBITDA as EBITDA (i) less net rent expense on premise leases considered to be finance leases under IFRS and (ii) before transaction, restructuring, and integration costs, time-based earn-out expense, change in fair value of investments, share of loss of associates, foreign exchange gain/loss, and stock-based compensation expense, (iii) revenue precluded from recognition under IFRS 15 that relates to certain patient services revenue that the Company believes should be recognized as revenue based on its contractual relationships, and (iv) gains/losses that are not reflective of ongoing operating performance. The Company considers Adjusted EBITDA a financial metric that measures cash that the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives. EBITDA and Adjusted EBITDA should not be considered alternatives to net income (loss), cash flow from operating activities or other measures of financial performance in accordance with IFRS.
   Adjusted Gross Profit and Adjusted Gross Margin The Company defines Adjusted Gross Profit as revenue less cost of sales (excluding depreciation and amortization) and Adjusted Gross Margin as adjusted gross profit as a percentage of revenue. Adjusted gross profit and adjusted gross margin should not be construed as an alternative for revenue or net income (loss) determined in accordance with IFRS. The Company does not present gross profit in its consolidated financial statements as it is a non-GAAP financial measure. The Company believes that adjusted gross profit and adjusted gross margin are meaningful metrics that are often used by readers to measure the Company's efficiency of selling its products and services.
   Adjusted Free Cashflow The Company defines Adjusted Free Cashflow as Adjusted EBITDA Attributable to Shareholders, less cash interest, less cash taxes and less capital expenditures. Adjusted Net income, Adjusted Net Income per Share, Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Margin, and Adjusted Free Cashflow are not recognized measures for financial statement presentation under IFRS and do not have standardized meanings. As such, these measures may not be comparable to similar measures presented by other companies and should be considered as supplements to, and not as substitutes for, or superior to, the corresponding measures calculated in accordance with IFRS.

2. Total Care Interactions are defined as Total Visits plus Technology Interactions plus Billed Provider Hours.

3. Organic growth includes growth attributable to "absorptions" which are characterized by clinics acquired for nominal consideration (ie. Less than 0.02x revenues). The overall organic growth inclusive of absorptions in Q2 was 21% but would have been 16.% without absorptions.

WELL HEALTH TECHNOLOGIES CORP.

Per: "Hamed Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director

About WELL Health Technologies Corp.

WELL's mission is to tech-enable healthcare providers. We do this by developing the best technologies, services, and support available, which ensures healthcare providers are empowered to positively impact patient outcomes. WELL's comprehensive healthcare and digital platform includes extensive front and back-office management software applications that help physicians run and secure their practices. WELL's solutions enable more than 37,000 healthcare providers between the US and Canada and power the largest owned and operated healthcare ecosystem in Canada with more than 180 clinics supporting primary care, specialized care, and diagnostic services. In the United States WELL's solutions are focused on specialized markets such as the gastrointestinal market, women's health, primary care, and mental health. WELL is publicly traded on the Toronto Stock Exchange under the symbol "WELL" and on the OTC Exchange under the symbol "WHTCF". To learn more about WELL, please visit: www.well.company.

Forward-Looking Statements

This news release may contain "Forward-Looking Information" within the meaning of applicable Canadian securities laws, including, without limitation: information regarding the Company's goals, strategies and growth plans; annual revenue and patient-visit run rates; free cash-flow guidance; expectations regarding continued revenue and EBITDA growth; expectations surrounding the reduction in debt, share issuances and earn-out payments; expected annual savings from various cost cutting initiatives; the expected benefits and synergies of completed acquisitions ; and the expected financial performance as well as information in the "Outlook" section herein. Forward-Looking Information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. Forward-Looking Information generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-Looking Information involve known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by the Forward-Looking Information and the Forward-Looking Information are not guarantees of future performance. WELL's comments expressed or implied by such Forward-Looking Information are subject to a number of risks, uncertainties, and conditions, many of which are outside of WELL 's control, and undue reliance should not be placed on such information. Forward-Looking Information are qualified in their entirety by inherent risks and uncertainties, including: direct and indirect material adverse effects from adverse market conditions; risks inherent in the primary healthcare sector in general; regulatory and legislative changes; that future results may vary from historical results; inability to obtain any requisite future financing on suitable terms; the expected profitability of acquisition targets; the expected benefits from different commercial partnerships; any inability to realize the expected benefits and synergies of acquisitions; that market competition may affect the business, results and financial condition of WELL and other risk factors identified in documents filed by WELL under its profile at www.sedar.com, including its most recent Annual Information Form. Except as required by securities law, WELL does not assume any obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise.

This news release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about estimated annual run-rate revenue and Adjusted EBIDTA, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraph. The actual financial results of WELL may vary from the amounts set out herein and such variation may be material. WELL and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, WELL undertakes no obligation to update such FOFI. FOFI contained in this news release was made as of the date hereof and was provided for the purpose of providing further information about WELL's anticipated future business operations on an annual basis. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein.

Neither the TSX nor its Regulation Services Provider (as that term is defined in policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

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