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PointClickCare Gears Up for IPO

PointClickCare Corp. has filed an F-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). No terms were given in the filing, but the offering is valued up to $100 million. The company plans to list on the Nasdaq Global Market under the symbol PCLK.

The underwriters for the offering are JPMorgan, Goldman Sachs, RBC Capital, William Blair and Canaccord Genuity.

This is a leading provider of comprehensive cloud-based software solutions for the North American senior care industry. Its software-as-a-service (SaaS) platform is designed specifically to enable critical business functions of skilled nursing and senior living facilities, including care delivery management, financial management, marketing, business intelligence and compliance. The company believes the PointClickCare platform is the system of record for senior care facilities that helps customers improve quality of care and demonstrate better patient outcomes, enhance financial performance, facilitate interoperability among health care providers and simplify regulatory compliance.

The senior care industry is in a period of transformation, presenting a range of challenges for senior care providers. Driven by the confluence of a rapidly aging population and increasing health care costs, patient care delivery for seniors continues to transition from hospitals to senior care facilities, with senior care facilities experiencing a corresponding increase in patient acuity. At the same time, the industry is facing a changing reimbursement and payment landscape, growing demand to improve quality of care and demonstrate better patient outcomes, greater emphasis on managing patients across multiple facilities in the continuum of care and an increasingly complex regulatory and compliance environment.

In the filing, PointClickCare described its finances as:

Our total revenue increased from $82.1 million in fiscal 2013 to $102.2 million in fiscal 2014, representing a 24% year-over-year increase, and increased from $48.2 million in the six months ended April 30, 2014 to $58.7 million in the six months ended April 30, 2015, representing a 22% period-over-period increase. Our subscription and support revenue increased from $70.5 million in fiscal 2013 to $90.6 million in fiscal 2014, representing a 29% year-over-year increase, and increased from $41.7 million in the six months ended April 30, 2014 to $54.6 million in the six months ended April 30, 2015, representing a 31% period-over-period increase. Subscription and support revenue represented 86%, 89% and 93% of total revenue in fiscal 2013, fiscal 2014 and the six months ended April 30, 2015, respectively. We had a net loss of $3.3 million in fiscal 2013 and a net loss of $11.0 million in fiscal 2014. Our net loss for the six months ended April 30, 2014 was $5.3 million and we generated net income of $0.3 million in the six months ended April 30, 2015.

The company intends to use the proceeds from the offering for working capital and general corporate purposes, including investing further in sales and marketing and research and development efforts, as well as funding the costs of operating as a public company.

By Chris Lange


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