• Record Q2 2023 revenue of $22.5 million and Adjusted EBITDA of $1.3 million
  • Annual Recurring Revenue increased by 67% to $25.0 million as of the end of the quarter

TORONTO, ON – August 29, 2023 – Think Research Corporation (TSX.V:THNK) (“Think” or the “Company”),  a company focused on transforming healthcare through digital health software solutions, is pleased to announce Second Quarter 2023 results. The Company’s Management Discussion and Analysis (MD&A) along with unaudited consolidated interim financial statements for Q2 2023 are available on SEDAR at www.sedar.com and on Think’s website.

Think’s three core business lines, including Software and Data Solutions (SaaS solutions), Clinical Research (clinical trial studies) and Clinical Services (physical clinics), collectively drive its financial performance and results.

Sachin Aggarwal, Chief Executive Officer of Think Research said, “With record revenue and positive Adjusted EBITDA, the second quarter continued the strong performance trend set in the last two quarters. Strong 67% Annual Recurring Revenue growth was driven by SaaS licensing in our Software & Data Division and reached $25 million at the end of the quarter. Think is in a great position to help constrained healthcare delivery systems improve access to high quality health services and best practices where and when they are needed. Our strong and growing pipeline reflects the urgency of this problem.”

Think’s Software and Data solutions are increasingly relied upon by acute care and community care doctors, nurses and pharmacists to support their practices. Think solutions now reach more than 326,000 clinicians. In certain jurisdiction-wide deployments, Think’s platform connects clinicians to the healthcare networks that employ them, to patients for virtual care, and to each other for referrals.

Think currently licenses its solutions to approximately 16,000 facilities with over 3 million patients and residents annually receiving better care due to the essential data that Think produces, manages and delivers.

Business Outlook

Think’s primary revenue streams of Software and Data solutions and Clinical Research are built on recurring and re-occurring multi-year contracted commitments from governmental agencies and large enterprise clients such as global pharmaceutical companies. Accordingly, Think’s management believes that the Company’s performance should be adequately protected in the short-term against uncertain macroeconomic conditions.

Moreover, Think’s Software and Data solutions business is currently solving urgent short-term healthcare service conditions, as well as looming long-term demographic challenges for health systems in Canada and abroad, including:

  • Rapid changes in medical research and treatment options;
  • Limited access to primary care and critically long wait times in emergency rooms;
  • Increasing demand for health care services as populations age and people live longer, with increasing health complexity; and
  • A long-term shortage of healthcare workers, including doctors, nurses and pharmacists, and a flight of these critical healthcare workers to higher paying urban jurisdictions.

As a result, Think’s sales pipeline for its SaaS solutions shows significant revenue growth potential in the Canadian market and internationally.

The Company plans to grow predictable and recurring revenue with improving margins by becoming an essential data solutions provider for healthcare systems globally so they can deliver the best outcomes for patients. Think’s Digital Front Door (“ DFD”)  solution can provide additional capacity for healthcare systems through third-party care providers, such as doctors, nurses and care navigators from outside the client’s network. 

To fulfill this objective, Think’s focus is to:

  • Execute long-term agreements with new flagship enterprise and government customers for Think’s core suite of Software and Data solutions, including its Digital Front Door, Learning Management System (“LMS”), and Pharmapod solutions;
  • Add more users to current customer agreements by promoting further adoption and usage. Currently, more than 326,000 clinicians, including doctors, nurses and pharmacists, can access Think’s solutions;
  • Extend the functionality of Think’s platform through internal development and through partnerships with care and technology providers. As more users, care providers and functionality are added, Think’s solutions become more essential to health systems and customers; and
  • Continue to manage costs to ensure sustainable profitability.

Think’s rapid improvements in financial performance, including three sequential quarters of positive Adjusted EBITDA is helping to offset higher financing charges related to Think’s floating interest rate associated with its long-term debt. Although Think has yet to consistently achieve sufficient positive cash flow from operations to cover all non-operating expenses, Think is actively managing costs, while demonstrating improvements in revenue growth.

Notable Contracts and Events in Q2 2023

  • On June 1, 2023, June 21, 2023 and July 18, 2023, Think announced that its Pharmapod system was selected by an Ontario long-term care chain, an expansion of a long-term care implementation into New Brunswick, and a pharmacy chain with approximately 300 locations across Canada to help them manage medication incidents.
  • On June 12, 2023, Think raised a non-convertible loan from Beedie Capital amounting to $1.8 million proceeds of which were used to paydown the deferred and contingent consideration for prior year acquisitions to avoid dilution to shareholders.

Q2 2023 Financial Highlights

  • The Company achieved record revenue of $22.5M for the three months ended June 30, 2023, up by $4.1M or 22% compared to $18.4M for the second quarter of 2022. Year to date revenue of $44.3M was up $5.7M, or 15% from $38.6M in the first half of the prior year. This year-over-year growth reflects the impact of organic growth in Software and Data Solutions and Clinical Research that was offset by a decline in Clinical Services revenue. Sequentially, revenue for Q2 of 2023 increased by $0.7M or 3% compared to $21.8M in the three months ended March 31, 2023 reflecting growth in Think’s Software and Data Solutions business, primarily as a result of the large SaaS contract announced on March 7, 2023. Revenue in Think’s Clinical Services business declined to $5.9M in the first half of 2023 compared to $8M in the six months ended June 30, 2022.  
  • Annual Recurring Revenue, (“ARR”) reached $25.0M at the end of June 2023, representing growth of 67% compared to $14.7M at the end of June 2022. Quarter over quarter growth in ARR was 12% compared to $22.0M at the end of March 31, 2023. This growth in ARR stemmed primarily from one large new contract along with multiple smaller client engagements.
  • Gross profit rose to $11.7M for Q2 2023 and $23.1M for the year-to-date, up 25% and 25% respectively compared to the same periods a year ago. Gross profit was up 3% compared to the immediately preceding quarter. These increases were due to a combination of higher revenues, a higher share of revenue from transactions that carry a higher gross profit margin, and cost efficiencies realized from the company’s previously disclosed cost optimization efforts. Gross margin of 52% in Q2 2023 and 52% in the year to date represents an increase from 51% in Q2 2022 and 48% in the first half of 2022.
  • Operating expenses declined to $14.2M,  in Q2 and $28.2M in the year-to-date 2023 representing a decrease of 13% or  $2.1M and 7% or $2.2M compared to the prior year periods. As a percentage of revenue, operating expenses declined to 63% and 64% in the three and six months ended June 30, 2023 compared to 89% and 79% in the prior year periods due primarily to a cost optimization program executed by the Company.
  • Think achieved EBITDA of $1.4M in the second quarter and $1.6M in the first half of 2023 compared to a loss of $4.0M in Q2 2022 and to a loss of $6.4M in the first six months of 2022.
  • Adjusted EBITDA rose to $1.3M for the three months ended June 30, 2023 compared to an Adjusted EBITDA loss of($1.6M for the same period a year ago.  Adjusted EBITDA for the first half of 2023 of $2.4M was $4.3M higher compared to an Adjusted EBITDA loss of $1.9M in the six months ended June 30, 2022. These improvements were due primarily to improvements in revenue combined with operating cost reductions. The resulting Adjusted EBITDA Margin was 6% in Q2 and 6% in the year to date 2023 compared to losses of 9% in Q2 2022 and 5% in the first half of the prior year.   
  • Net loss was $2.3M for the three months and ($5.9M for the six months ended June 30, 2023 compared to $7.5M and $13.7M for the comparable periods in the prior year. The decrease in net loss when compared to 2022 is primarily due to higher revenue coupled with lower operating costs as a result of Think’s cost optimization program. 

Q2 2023 Revenue Performance Highlights by Line of Business:

The Company has three primary streams of revenue that include: (1) Software and Data solutions, (2) Clinical Research, and (3) Clinical Services.


  1. “Software and Data Solutions” revenue consists of SaaS and professional services revenue.
  2. “Clinical research” revenue consists of revenue from BioPharma.
  3. “Clinical services” revenue consists of revenue from the clinics owned by TRC.

Revenue from Think’s Software and Data Solutions business grew by $3.5M or 50% from $6.9M (43% of revenue) in Q2 2022 to $10.4M (46% of revenue) in Q2 2023 primarily due to organic growth associated with the launch of the new SaaS and services initiative set out in the Notable Contracts section above.

ARR reached $25.0M at the end of June 2023, representing growth of 67% compared to $14.7M at the end of June 2022. Quarter over quarter growth in ARR was 12% compared to $22.0M at the end of March 31, 2023. Think’s Net Retention Rate for ARR was 106% for the twelve months ended June 30, 2023.

Clinical Research revenue increased by $2M, or 27% in Q2 2023 to $9.2M compared to $7.3M in Q2 2022. Revenue in the comparable period was depressed due to the operational impacts of COVID-19, which were only fully resolved in late Q3 of 2022.

Clinical Services revenue declined by $1.4M or 32% in Q2 2023 compared to the comparable period in 2022 due to operational challenges in sales and marketing.

Liquidity and Capital Resources

The Company’s agreements with its lenders regarding certain covenants become more restrictive at the beginning of each quarter from January 1, 2022 to January 1, 2024. Therefore, despite Think’s rapid improvements in financial performance, including three sequential quarters of positive Adjusted EBITDA, the Company determined that it was not in compliance with the minimum EBITDA covenants as set out in the Bank of Nova Scotia Credit Facility and under the Beedie Convertible Facility (the “Credit Facilities”) and could potentially be in non-compliance with certain covenants set out in the Credit Facilities in future months in 2023. The Company is actively engaging with its lenders and proactively addressing this matter. For further details, please see the Company’s MD&A.

Selected Financial Information


  1. “EBITDA” and “Adjusted EBITDA” are non-GAAP financial measures, are not standardized measures under IFRS and may not be comparable to similar financial measures disclosed by other issuers. See “Non-IFRS Financial Measures”.
  2. “Adjusted EBITDA Margin” is a non-GAAP ratio, is not a standardized measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers. See “Non-IFRS Financial Measures”.

The tables above and below include non-IFRS financial measures and non-IFRS ratios. See the “Cautionary Note Regarding Non-IFRS Financial Measures” section of this press release for the relevant definition of each non-IFRS financial measure and non-IFRS ratio.


  1. “EBITDA” and “Adjusted EBITDA” are non-GAAP financial measures, are not standardized measures under IFRS and may not be comparable to similar financial measures disclosed by other issuers. See “Non-IFRS Financial Measures”.
  2. “Acquisition, restructuring and other” expenses relate to costs incurred in connection with business combinations, reorganization of the Company’s capital structure and workforce, and legal, advisory and banking expenses.
  3. “Stock-based compensation” relates to expenses recognized for equity awards issued under the Company’s Omnibus Equity Incentive Plan.

Conference Call Details:

CEO Sachin Aggarwal and CFO John Hayes will host a conference call to discuss the results, with a Q&A session to follow.

TIME: 9:00AM EST, Tuesday August 29, 2023

Conference Call Participant Details: To join the conference call without operator assistance, you may register and enter your phone number HERE to receive an instant automated call back. Participants can also dial direct to be entered to the call by an Operator: 

Toronto: 416-764-8659

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Webinar URL:  https://app.webinar.net/6WVYnEMnalm

Conference Replay

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Expiration Date: 09/03/2023

About Think Research Corporation

Think Research Corporation is an industry leader in delivering knowledge-based digital health software and data solutions. The Company’s evidence-based healthcare solutions support clinical decision-making, improve access to services, enable practitioners to gain better capabilities and knowledge, and help to standardize care to facilitate better healthcare outcomes. Think Research has gathered a significant amount of data by building its repository of knowledge through its digital solutions platform and group of companies. The Company’s focused mission is to become an essential platform that helps healthcare clinicians, institutions and networks to provide the best care and information.

Think licenses its solutions to over 16,000 facilities for over 326,000 primary care, acute care, and long-term care doctors, nurses and pharmacists that rely on the content and data provided by Think to support their practices.  Over 3 million patients and residents annually receive better care due to the essential data that Think produces, manages and delivers.

In addition, the Company collects and manages pharmaceutical and clinical trial data via the BioPharma Services entity that Think acquired on September 10, 2021.  BioPharma Services is a leading provider of bioequivalence and Phase 1 clinical research services to pharmaceutical companies globally. Think’s other services include a network of digital-first primary care clinics and medical clinics that provide elective surgery. Visit: www.thinkresearch.com.

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

Non-IFRS Financial Measures

This MD&A makes reference to certain non-GAAP financial measures and non-GAAP ratios. These measures and ratios are not recognized measures under International Financial Reporting Standards (“IFRS”), do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures and ratios are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Non-IFRS measures and ratios have limitations as analytical tools and should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS and should be read in conjunction with the consolidated financial statements for the periods indicated. The Company uses non-IFRS financial measures and ratios, including “ARR”, “EBITDA”, “Adjusted EBITDA” and “Adjusted EBITDA Margin” to provide investors with supplemental measures of its operating performance and to eliminate items that have less bearing on operating performance or operating conditions and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. Specifically, the Company believes that Adjusted EBITDA and Adjusted EBITDA Margin, when viewed with the Company’s results under IFRS and the accompanying reconciliations, provides useful information about the Company’s business by removing potential distortions that may arise from transactions that are not operational in nature. By eliminating potential differences in results of operations between periods caused by factors such as restructuring, transaction, impairment and other charges, the Company believes that Adjusted EBITDA and Adjusted EBITDA Margin can provide a useful additional basis for comparing the current performance of the underlying operations being evaluated. The Company’s agreements with lenders include certain financial performance covenants which include EBITDA (as defined in the Company’s credit agreement with its lenders) as a component of the covenant calculations and require the Company to maintain certain levels of EBITDA on a consolidated basis. ARR is used by some investors and analysts as a predictor of future revenues because it reflects new sales, renewals and lost customers. The Company believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures and ratios in the evaluation of issuers. The Company’s management also uses non-IFRS financial measures and ratios in order to facilitate operating performance comparisons from period to period.

Non-GAAP financial measures and non-GAAP ratios used by the Company include:

Annual Recurring Revenue (“ARR”), means revenue associated with software and services contracts that are expected to have a duration of more than one year, normalized to a one-year period.

“EBITDA” means net income (loss) before amortization and depreciation expenses, finance and interest costs, and provision for income taxes.

“Adjusted EBITDA” adjusts EBITDA for non-cash stock-based compensation expense, gains or losses arising from redemption of securities issued by the Company, asset impairment charges, gains or losses from disposals of property and equipment, foreign exchange gains or losses, impairment charges on property and equipment, business acquisition costs, and restructuring charges.

“Adjusted EBITDA Margin” means Adjusted EBITDA divided by revenue of the Company for the applicable period.

“Net Retention Rate” means the total of retained revenue from existing customers over a one-year period, expressed as a percentage.

A reconciliation of EBITDA and Adjusted EBITDA to IFRS net income (loss) is presented under “Select Information and Reconciliation of Non-IFRS Measures” in the Company’s MD&A filed on SEDAR.

For more information: https://www.thinkresearch.com/ca/investors/

For further information: Mark Sakamoto, Executive Vice President, Think Research, 416.388.7119, mark.sakamoto@thinkresearch.com