Nordhealth As · OSL:NORDH
Nordhealth As — Q1 2025 Earnings Presentation
46 slides from Nordhealth As's earnings presentation, May 13, 2025
Slide 1: Nordhealth
(X] nordhealth
Slide 2: Q1 2025 presentation
Q1 2025 presentation 13 May 2025
Slide 3: Today's presenters
Todayʼs presenters Charles MacBain Alexander Cram CEO CFO Nordhealth 3
Slide 4: Agenda
Agenda 1.0 Company Update 2.0 Veterinary BU Update 3.0 Therapy BU Update 4.0 Financial Update 5.0 Q&A Nordhealth 4
Slide 5: Company Update
01 Company Update Charles MacBain, CEO Nordhealth 5
Slide 6: Q1 2025 KPIs
Q1 2025 KPIs €44.9M 21.5% 115.5% 4.6% Signed ARR Organic ARR growth Net retention rate Churn Q1 2025 YoY Q1 2025 LTM Q1 2025 LTM Q1 2025 €1.1M 2.4% Adj. EBITDA CAPEX Adj. EBITDA CAPEX margin LTM Q1 2025 LTM Q1 2025 Nordhealth 6
Slide 7: 51% organic and acquisition-led growth CAGR since 2018
51% organic and acquisition-led growth CAGR since 2018 Signed ARR M€ R 51% CAG Excludes the Vets4Pets and AmeriVet post-pilot rollout ARR Nordhealth 7
Slide 8: 21.5% YoY ARR growth
21.5% YoY ARR growth ARR M€ ● 21.5% YoY ARR growth ● 20.1% Net upsell primarily driven by CVS implementation and other Provet ARPU and user growth ● 4.6% churn rate ● Vets4Pets or AmeriVet post-pilot rollout ARR not included in the waterfall * Exchange rate difference impact between 2023 and 2024
Slide 9: Adj. EBITDA-CAPEX has stabilised close to break-even
Adj. EBITDACAPEX has stabilised close to break-even Adj. EBITDACAPEX M€ Nordhealth 9
Slide 10: Veterinary Update
02 Veterinary Update Charles MacBain, CEO Nordhealth 10
Slide 11: Veterinary business update
Veterinary business update ● AmeriVet, a 200+ location US clinic chain, was the US customer we signed in 2024 and are piloting in 2025 ● PetVet365, a 35 location US clinic chain was signed in May 2025 ● In total, SME Enterprise, €900k in new customer ARR was signed in Q1 2025 ● Implemented 410 CVS
Slide 12: 33.2% YoY Veterinary ARR growth
33.2% YoY Veterinary ARR growth ARR M€ ● ARR grew 33.2% YoY ● Net retention rate 126.8%, primarily driven by CVS and other enterprise clients rolling out new clinics ● 3.4% ARR churn was impacted by sunset of Provet Net and Vetserve products. Excluding these, churn would have been 2.8% ● Vets4Pets
Slide 13: Veterinary long-term average churn less than 3% and net retention 120%
Veterinary long-term average churn less than 3% and net retention 120% 2021 2022 2023 2024 LTM Q1 2025 Average Total ARR Growth 18.3% 17.2% 42.9% 29.9% 33.2% 28.3% New customer ARR 6.2% 12.2% 9.7% 7.1% 6.4% 8.3% Net Upsell 13.3% 7.1% 34.8% 27.6% 30.1% 22.6% Churn rate -1.2% -2.1% -1.6% -4.8% -3.4% -
Slide 14: Growth in revenues has improved Veterinary LTM adj. BU EBITDA-CAPEX
Growth in revenues has improved Veterinary LTM adj. BU EBITDA CAPEX Veterinary adj. BU EBITDA CAPEX M€ LTM Q1 2025 BU adj. EBITDACAPEX improved by €0.6M vs FY2024. Main drivers of improvement LTM Q1 2025 vs 2024 ● Recurring revenue €1.5M ● Other revenue €0.4M ● COGS & customer service
Slide 15: US, UK, Southern Europe propelling growth in Q1 2025
US, UK, Southern Europe propelling growth in Q1 2025 ARR (m€) ● 48% of ARR at the end of Q1 2025 came from outside Nordics vs. 6% at the end of 2021 ● 33% of ARR at the end of Q1 2025 came from Growth Markets US, UK, Southern Europe) ● 20212025 Q1 Growth Markets CAGR was 130% Nordhealth 15
Slide 16: Provet's enterprise solution is well positioned to capture enterprise opportunity
Provetʼs enterprise solution is well positioned to capture enterprise opportunity ARR (m€) ● Enterprise share of total ARR has grown from 21% in 2021 to 43% in 2025 Q1 ● 60% of ARR growth since 2022 has come from enterprise clients. ● Despite focus on enterprise, our customer concentration remains l
Slide 17: Veterinary Migration to Provet Progressing
Veterinary Migration to Provet Progressing ARR M€ ● Cloud share of ARR increased from 40% in 2021 to 78% in 2025 Q1 ● Annualised churn rate for non-cloud was 10.5% in 2025 Q1 ● Vetserve and Provet Win were sunset in 2024, Provet Net will be sunset during 2025. ● We are working on migrating Sanimal
Slide 18: Therapy Update
03 Therapy Update Charles MacBain, CEO Nordhealth 18
Slide 19: Therapy business update
Therapy business update ● Migrated 160 Aspit users to the Unified Platform with 1 user churning. Roll-out continues at a measured pace so we can act on early feedback and protect retention ● Launched AI Scribe in April for Norwegian physiotherapists; within two weeks we already have 250+ daily acti
Slide 20: 6.6% YoY therapy ARR growth
6.6% YoY therapy ARR growth ARR M€ • ARR growth at 6.6% YoY due to focus on migration and exiting market saturation • Net retention rate was 101.3% • Churn rate was 6.2% Reported in constant currency (using year 2024 end currency rates). Nordhealth 20
Slide 21: Therapy long-term average churn close to 5%
Therapy long-term average churn close to 5% 2021 2022 2023 2024 LTM Q1 2025 Average Total ARR Growth 15.7% 13.9% 6.6% 9.2% 6.6% 10.4% New customer ARR 7.7% 11.3% 9.4% 8.1% 5.3% 8.4% Net upsell 9.7% 7.2% 5.0% 6.6% 7.4% 7.2% Net retention rate 108.0% 102.6% 97.2% 101.1% 101.3% 102.0% Churn rate -1.7%
Slide 22: Investments in product development decreased Therapy adj. BU EBITDA-CAPEX
Investments in product development decreased Therapy adj. BU EBITDACAPEX Therapy adj. BU EBITDA CAPEX M€ Main drivers of result decline LTM Q1 2025 vs 2024 ● Recurring revenue €0.2M ● Product development costs €0.6M Nordhealth 22
Slide 23: Therapy ARR development by market
Therapy ARR development by market ARR M€ • Aspit was acquired in 2021 and EasyPractice in 2022 • Growth has been slow as we have focused our R&D efforts on Aspit migration, which will unlock €3M savings • Once migration is completed (timing TBC, we will resume work on add-on and new country expa
Slide 24: Therapy Migration is progressing in Norway
Therapy Migration is progressing in Norway ARR (m€) ● Cloud share of ARR increased from 34% in 2021 to 49% in LTM 2025 Q1 ● Churn for non-cloud was 3.7% in LTM 2025 Q1 ● Full focus on Aspit migration in 2025 Nordhealth 24
Slide 25: Financial Update
04 Financial Update Alexander Cram, CFO Nordhealth 25
Slide 26: Annual Report 2024
Annual Report 2024 Published on 11 April 2025. Audited by KPMG. Available to download on company website.
Slide 27: 23.0% growth in total quarterly reported revenues YoY
23.0% growth in total quarterly reported revenues YoY €ʼM • Total reported revenues grew by 23.0% YoY to €12.5M in Q1/25 €10.1M in Q1/24 • Reported recurring revenues grew by 20.7% YoY to €11.1M in Q1/25 €9.2M in Q1/24 • Share of recurring revenue in Q1/25 was 88.6% 90.3% in Q1/24 Nordhealth
Slide 28: Quarterly adj. EBITDA-CAPEX improved by €0.1M
Quarterly adj. EBITDA CAPEX improved by €0.1M Main drivers of result change Q1/25 vs Q1/24 • Revenue €2.3M • COGS & customer service €0.7M • Product development €1.0M • Sales & marketing €0.2M • Professional services €0.2M Nordhealth 28
Slide 29: Quarterly adjusted cash flow improved YoY
Quarterly adjusted cash flow improved YoY €ʼM • Adjusted cash flow improved by €2.1M, from €0.8M in Q1/24 to €2.8M in Q1/25 mainly due to better improvements in trade debtors balance. • Movements in trade debtors in Q1/25 €1.9M favourable vs Q1/25. Largest individual item is that in Q1/25 we rece
Slide 30: Strong cash position and no debt
Strong cash position and no debt Balance sheet 31 March 2025 €ʼM Assets • Cash, cash equivalents and money market funds amounted to €22.2M at the end of Q1/25 vs. EUR 22.8M at the end of Q1/24 • Intangible assets primarily consist of capitalised R&D expenses Liabilities and equity • No interest be
Slide 31: 2025 Guidance update
2025 Guidance update Reiterating guidance: ● 1217% organic growth in veterinary and therapy recurring revenue Dec. 31st 2024 constant currency) excluding acquisitions ● EBITDA CAPEX plus or minus €2M excluding acquisitions Nordhealth 31
Slide 32: Financial calendar
Financial calendar Q2 2025 results presentation on 19 August 2025. Full year financial calendar can be found on company website.
Slide 33: Q&A
05 Q&A Nordhealth 33
Slide 34: Appendix
(X) nordhealth Appendix ay
Slide 35: Key definitions - 1/2
Key definitions - 1/2 Recurring revenue includes revenues from software subscriptions as well as revenues from of volume-based transactions (e.g., SMS messages) as well as rebates from third parties (e.g. payment solution providers). ARR is recurring revenue annualised by multiplying the quarter’s l
Slide 36: Key definitions - 2/2
Key definitions - 2/2 Adjusted cash flow is the sum of cash flow from operations and cash paid for capitalised expenses, adjusted for one-time expenses not likely to incur in the near future. Margins are used to compare relative profit between periods. EBITDA margin and EBITDA - CAPEX margin are cal
Slide 37: Profit & Loss statement
Profit & Loss statement Consolidated Income Statement Unaudited Unaudited Audited EUR in thousands Q1 2025 Q1 2024 FY 2024 Recurring revenue 11 057 9 159 40 196 Other revenue 1 424 988 5 479 Total revenue 12 480 10 147 45 675 Other operating income 2 37 137 Total operating income 12 483 10 184 45 81
Slide 38: Balance Sheet
Balance Sheet Consolidated Balance Sheet Unaudited Unaudited Audited EUR in thousands 31Mar-25 31Mar-24 31Dec-24 Intangible assets 13 425 12 756 13 267 Deferred tax assets 87 526 84 Other capitalized long-term expenses 29 92 35 Goodwill 40 579 46 265 41 381 Machinery and Equipment 297 445 297 Oth
Slide 39: Cashflow
Cashflow Consolidated Cash Flow Statement Unaudited Unaudited Audited EUR in thousands Q1 2025 Q1 2024 FY 2024 Cash flow from operations Profit before income taxes 2 675 2 348 6 637 Taxes paid in the period 129 27 124 Other non-cash items 758 183 1 132 Depreciation and amortization 2 7
Slide 40: Business Segments
Business Segments 🐶Veterinary Therapy Other Businesses Cloud Non-Cloud Cloud Non-Cloud Cloud Non-Cloud Products Provet Vetera DACH EasyPractice Physica Navisec IT Operations Provet Pay Sanimalis Norway Diarium Psykbase Provet Net Finland) Booking Portal Vetvision Denmark) Share of ARR 47%…
Slide 41: Strong organic growth accelerated by acquisition and migration strategy
Strong organic growth accelerated by acquisition and migration strategy 9 acquisitions completed since 2005, 4 in last 5 years Migrated Migrated Migrated In Progress Migrated 2005 2009 2019 2019 2019 Acquired Praktiikka Vetserve In Progress In Progress In Progress Flagship 2021 …
Slide 42: Nordhealth - QoQ ARR growth
Nordhealth - QoQ ARR growth ARR M€ • QoQ ARR growth was 2.5% • 2025 Q1 Annualised churn rate was 7.3% *) Exchange rate difference impact between 2023 and 2024 year end currency rates. Negative impact was mainly related to weakening of NOK vs EUR. Nordhealth 42
Slide 43: Veterinary - QoQ ARR growth
Veterinary - QoQ ARR growth ARR M€ 27.6 • QoQ ARR growth was 5.5% • Increase in net upsell was driven by enterprise customers and annual price 25.4 increases Reported in constant currency (using year 2024 end currency rates). Nordhealth 43
Slide 44: Therapy - QoQ ARR growth
Therapy - QoQ ARR growth ARR M€ • QoQ ARR growth was 1.3% • 2025 Q1 Annualised churn was 11.8% due to price increases and contract renewals that happen in January. We estimate that churn rate will return back to normal level in Q2. Reported in constant currency (using year 2024 end currency rates
Slide 45: Headcount development
Headcount development Nordhealth 45
Slide 46: Expanded product offering to solve additional customer pain points
Expanded product offering to solve additional customer pain points Practice Management Appointment Calendar & Electronic Health Inventory management Invoicing Software Online Booking Records Payments Terminal Payments Online payments Recurring payments Pay by email or SMS link Telemedicine Imaging A