Proactive Investors - Cloud DX (TSXV:CDX), the healthcare tech group, has renewed 11 client contracts, worth CA$1.25 million, and is hoping to extend deals for an additional three customers.
Renewals have been agreed with several types of healthcare providers ahead of the agreements expiring at the end of March.
Recurring subscription revenues from the renewed contracts are expected to rise to CA$575,000 per year, reaching a total of CA$1.5 million by the end of 2025.
With said contracts expected to be worth CA$1.25 million, Cloud DX forecasts that CA$410,000 will feed through to free cash flow in 2024.
Customers renewing contracts include three Canadian hospitals, two Ontario family health teams and five Ontario community paramedic services.
Other clients include the Canadian Lung Health Foundation and the Canadian Provincial Health Ministry.
Cloud DX says it is hopeful that the final three clients will renew their contracts, which would mark a 100% renewal rate.
Contracts from the virtual care provider typically range in length from between 12 to 84 months.
Typical deals see customers provided with Connected Health Kits, which provide approved medical devices to monitor vital signals and, in most cases, a customised tablet computer.
Connected Health Kits are then given to patients who require chronic care management, post-surgical recovery, remote rehabilitation, or palliative care.
Patients are therefore able to use these kits to receive care plan reminders, communicate with care teams over text and video and/or answer surveys.