Shares in Zhongchao Inc. (Nasdaq: ZCMD), the provider of healthcare information and education, lost 1% intraday Friday after announcing two-digit revenue growth.
The Shanghai-based online healthcare information provider said in a statement that its revenue in 2019 reached $14.9 million, up 16% year-over-year. Its net income hit $4 million, or 19 cents per share, in 2019, compared with $3 million, or 14 cents per share in 2018.
Zhongchao attributed the revenue growth primarily to the increased orders from existing not-for-profit organization customers including contribution from patient-aid projects that the company launched, according to the statement.
“We are actively looking for additional locations to establish new offices and expand our current offices and sales and delivery centers,” Zhongchao said in a filing with the Securities and Exchange Commission.
The newly-listed company, founded in 2012, operates platforms MDMOOC for healthcare professionals and Sunshine Health Forums for the public.
The company followed the model of online course Massive Open Online Course, or MOOC, while, specifically, its courses are aimed at unlimited participation and open access for the healthcare industry.
“Our platforms of MDMOOC and Sunshine Health Forums continue to expand, gathering the increasing number of subscriptions and click-throughs,” James Yang, the executive officer of Zhongchao, said in the statement Friday.
As of March 2020, the Sunshine Health Forums, which was launched in 2016, has hit a major milestone with accumulative subscribers and click-throughs exceeding 5.1 million and 1.3 billion, respectively, the company said in the filing.
“This, combined with the continuing shift of the healthcare information, education and training services industry from offline to online, particularly against the backdrop of the COVID-19 pandemic, as well as increasing publicity and strengthened financial condition following our recent Nasdaq listing and the IPO bodes well for us,” Yang added.
Zhongchao launched the virtual seminar series on April 24 to connect global healthcare professionals and enabled them to share knowledge and experience in their fight against the coronavirus pandemic.
The company lifted off in a $12 million initial public offering on February 24 in New York. CapitalWatch columnist Donovan Jones, the creator of VentureDeal, said in his analysis that the IPO of Zhongchao is a “potentially interesting opportunity for a ‘risk-on' investor.”
Shares in Zhongchao were trading at $2.04 per share midday Friday, down 1% after gaining 3% when the market opened.