Limeade an employee well-being company has announced today that they have received a takeover offer from webMD Health Service for $0.425 per. share valuing the company at $A111.5mil. Significant increase from yesterdays closing price but well down from all time highs. i never owned this as the financials were always a bit unfavourable for my liking and i did think this would be the first area of cuts to companies in a difficult environment but it did peak my interest during COVID when maintaining staff was essential and I heard a lot of companies who were flushed with cash at this time were spending big on staff well-being and attempting to make the workplace a more enjoyable experience.

Good for shareholders but my takeaway is that some of these beaten down stocks that are every chance of not turning profitable will be taken out in coming months. Obviously never invest for a takeover but there would be a few on market that must be getting a look at currently given the circumstances. Limeade did a massive cut of costs some months ago including staff and it was questionable whether they would be able to turn a profit without going to the market for a CR so seems like a good deal for shareholders.

Limeade is a company I do not own but as a functional medicine practioner I have a key interest in health and well-being so I do like to monitor them.

They re-confirmed guidance of

• proforma revenue of 55-58 mil
• proforma adjusted EBITDA loss of 6-8mil
• proforma net loss after tax of 8-11 mil.
• cash balance sheet at 2.5mil (down from 8.7mil), no debt and 15 mil debt facility with comericia bank.
• expecting to be cashflow postivie 2H 2022

based on information management are expecting to avoid a Capital Raise but it is touch and go, they recorded operating cash outflows of $4.8mil for the qtr versus 2 mil in perating cash outflows in Q2 2021.. They report a 99% retention rate for the year but the contracts seem to be multi year contracts and therefore it is unknown whether any were due for renewal for this period or not. The top 20 enterprise customers on avg have 16 months remaining on their contrats, so retention should remain but it would be important to monitor this statistic to identify whether this product has ongoing purpose or a one off use and then get rid of within a company.

sales pipeline appears relatively strong. Pipeline at Q2 2022 was $43.4 mil including $18 mil in finalist and verbal stages they signed 47 new customer agreements for $0.6mil of CARR (on top of the 60 for $0.7mil in Q1).

DISC - Not held.

Limeade operates in the employee experience software industry. 

Through its software solutions, Limeade helps organisations better care for their employees. Limeade believes that when organisations invest in their employees, it is easier for them to attract, retain, engage and enable them to perform better. Limeade solutions are designed to elevate the employee experience and infuse care across all levels of an organisation.

Limeade has over 230 employees and is headquartered in Bellevue, Washington State, US, with offices in Canada and Germany.