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Over the last year, we have highlighted Reliq Health Technologies (RHT.V) (RQHTF) on several occasions and are favorable on this healthcare technology company. Reliq Health has been nothing short of an execution story and we are favorable on the continued success.
Reliq has several pilot programs with leading hospitals and networks in North America and Europe. The company benefits from a multi-faceted growth strategy and has several high-profile pilots in progress with leading hospitals and healthcare networks in North America and Europe.
A Continued Execution Story
Last week, Reliq provided a positive update regarding its Texas operations and said that the six new primary practices will add up to 5,000 new patients at full deployment to Reliq’s iUGO Care remote patient monitoring platform.
In late May, the healthcare technology company signed a master services agreement with CareOneTeam of Rockhill, South Carolina to offer clients implementation support services and increase the pace of patient onboarding. These services represent a new revenue stream for Reliq as well as being a significant value add for the company’s customers.
Last month, Reliq signed a memorandum of understanding with ForaCare to address hardware availability for iUGO Care customers. Based in Moorpark, California, ForaCare is a technology company dedicated to the design, development, and marketing of innovative medical device products for chronic disease management.
The last few months have been significant for RElie and we are bullish on the continued execution. In early April, the healthcare technology company announced the expansion of its contract with Paz Home Health LLC in Texas to provide its iUGO Care remote patient monitoring and telemedicine solution. The revised contract increases the number of Paz Home Health subscribers by 5,000 patients, bringing the total to over 15,000 patients total. This will generate over $9 million USD in annual recurring revenue at full deployment, by the fourth quarter of 2018.
An Attractive Growth Opportunity
In late March, Reliq issued a corporate update that provided great visibility into current growth initiatives as well as potential catalysts. At the time of this update, the company reported to have more than 12,000 monthly paying subscribers, representing more than $600,000 in monthly recurring revenue.
The healthcare technology company is quickly becoming a free cash flow machine and we expect numbers to continue to grow at above-average rates. Reliq recently made several additions to the sales team, and we expect this to significantly increase the number of paying subscribers.
As Reliq continues to educate new physicians and onboard new patients, we expect the number of paid subscribers to ramp quickly. Reliq recently reiterated its guidance for 2018 and we are favorable on these numbers. Overall company fundamentals have significantly improved over the last year and this is a trend we do not expect to change anytime soon.
A Stock Investors Need to Watch
Although Reliq Health continues to execute, the shares have been trending lower and we are monitoring the decline. Company fundamentals continue to strengthen and the company has several major catalysts for growth. We are bullish on the opportunity offered via Reliq Health and investors need to keep an eye on this one.
Over the last year, Reliq has expanded its reach and geographic diversity and has secured pilot programs with hospitals, organizations and cities in the United States, the United Kingdom, and Canada.
We are impressed by Reliq’s ability to continue to execute and the company possesses the traits that we look for in a potential investment opportunity (revenue, growth opportunities, leading management team, funded growth initiatives, and more). We are favorable on Reliq Health and we are monitoring the shares closely.