Kooth Plc · LSE:KOO
Kooth — H1 2024 Earnings Presentation
26 slides from Kooth's earnings presentation, Sep 17, 2024
Slide 1: Kooth H1 2024 Interim Results
Kooth H1 2024 Interim Results Tackling the growing global crisis in youth mental health 17 September 2024 Tim Barker Sanjay Jawa Chief Executive Officer Chief Financial Officer
Slide 2: Strategic progress: US acceleration continues, UK headwinds ongoing
Strategic progress: US acceleration continues, UK headwinds ongoing but green shoots on future policy direction 1 Launch of Soluna in California on Jan 1 Positive early outcomes and youth feedback 2 4 Entering $30bn Medicaid market with Aetna launch in Illinois NHS financial pressures remain Governme
Slide 3: H1 2024 Financial highlights. Record revenue, margin, EBITDA
H1 2024 Financial highlights. Record revenue, margin, EBITDA 179% revenue growth to £32.5m driven by US expansion (£23.2m) Revenue Net cash 181% ARR growth to £60m reflecting our California contract £32.5m | £11.7m £14.9m | £5.8m 2024 2023 2024 2023 95%+ of revenue from contracts of 12+ months Gross
Slide 4: Growing global crisis in youth mental health
Growing global crisis in youth mental health
Slide 5: Growing youth mental health crisis in the US
There is a growing youth mental health crisis in the US, with serious lifelong consequences 22% of high school students seriously considered suicide in the past year 10% attempted suicide one or more times 57% of teen girls feel "persistently sad or hopeless" Poor mental health for life 75% of lifel
Slide 6: In the UK, the NHS is struggling to cope with growing demand
In the UK, the NHS is struggling to cope with the growing demand % of England population under 18 in contact with NHS mental health services Over one million UK children and young people were referred to NHS mental health services in 2023/24 53% increase in referrals in last 5 years 82% of NHS Trust
Slide 7: Kooth provides preventative, population-wide mental healthcare
As with all things in health, prevention is better than cure. Kooth provides preventative, population-wide mental healthcare Early and responsive support, A digital front door into Reach youth where they are from self-help to professional support other healthcare services Education Signposting & Ref
Slide 8: Kooth scales to a population-wide service
Kooth scales to a population-wide service. 95% of youth get the support they need from self-directed or single-session therapy % Users Outcomes T OR PP 6-12 5% Goal-based outcomes (CoGS) SU counselling 74% achieve a positive change in life goals of users sessions L NA IOS ES Session wants and needs
Slide 9: Free at the point of use, B2B2C subscription-based business
We are a free at the point of use, B2B2C subscription-based business $ (min-max age) (1-in-N usage) ARR We estimate Annual Digital and Grow usage, Customer selects subscription age-range to usage based on community demonstrate 25m data points includes marketing engagement impact support costs Grow c
Slide 10: UK case study in growth and expansion
UK case study in growth and expansion Timeline 2004 First CYP contract in area R 2012 - 2022 Closed and CAG 28% expanded individual contracts across region ARR 2021 Aligned commissioner age ranges and pricing 2022 10 commissioners merged into one ICS and expanded with Kooth Adult 10
Slide 11: A young person's journey often starts at school
A young person’s journey often starts with them hearing about Kooth at school. Free, instant signup, no referral needed Self-guided tools Peer-support Professional support Care navigation Currently US only 11
Slide 12: Kooth demonstrably improves lives and saves healthcare systems money
Kooth demonstrably improves lives and saves healthcare systems money Improvement in 70% of cases Pediatrician-related Self-harm behaviour savings >3x short term health Physician visits averted economics saving Substance-abuse averted Antidepressant prescriptions avoided Smoking averted Hospitalisati
Slide 13: Operational update
Operational update %E kooth
Slide 14: Soluna launch: positive early outcomes and youth feedback
California Soluna launch: positive early outcomes and youth feedback Reach: Growing uptake and addressing health inequality Sign-ups in every one of California’s 58 counties 53% of service users from areas with highest health inequality Impact: Positive outcomes and youth feedback 70% report positiv
Slide 15: Entering $30bn Medicaid market with Aetna launch in Illinois
Medicaid Entering $30bn Medicaid market with Aetna launch in Illinois Aetna, a subsidiary of CVS Health (NYSE:CVS, $95bn+ market cap) provides Medicaid managed care services across 16 states Aetna Better Health of Illinois partnership initial one-year focus on supporting 11,000 young people across 3
Slide 16: Progress in Pennsylvania
Pennsylvania Progress in Pennsylvania 1-in-10 of eligible students used the service in its first year Funding award 88% of students reported they got the support they needed Extended contract to mid-2025 agreed with the Department of Human Services, with initial tranche of funding of School Administr
Slide 17: On track to add two additional state pilot projects this year
US Growth On track to add two additional state pilot projects this year Analysis to identify priority States investing in youth mental health Now Engage Hire State budget Deploy & with State Lobbyists process Expand representatives Engaged in 10+ states Sales & clinical expertise State budget finalis
Slide 18: NHS financial pressures remain, but green shoots on future policy
UK NHS financial pressures remain, but green shoots on future policy direction Significant financial pressures on UK NHS and local authorities NHS England projecting £2.2bn deficit Funds diverted to elective care backlogs and statutory services Future Government NHS policy* Analogue → Digital Treatment
Slide 19: Investing in mental health prevention would contribute >£7bn to GDP
Prevention Investing in mental health prevention would contribute >£7bn (0.3%) to GDP in 2030 Prosperity through health: Impact of 20% reduction in incidence rate of major disease categories on UK GDP Investing in prevention of mental ill-health has the highest positive economic impact of any condit
Slide 20: Outlook
Outlook 1 Continued innovation to scale our platform, people, and reach 2 Strong US pipeline. Further two pilot contracts expected to be signed in the current financial year Evolving the NHS to prevention + digital through continued investment in advocacy and technology 3 Soluna launching in UK in Q2
Slide 21: Investment case + why we exist
Investment case + why we exist Growing crisis in youth mental health Growing Demand Why Kooth exists Shift to prevention is only way to address this Our purpose is to build mentally healthier populations, leaving no one behind Largest UK digital provider Market position Rapidly scaling in the US, 70
Slide 22: Important disclaimer
Important disclaimer The information contained in these slides and the accompanying oral presentation (together, the Presentation) has been prepared by Kooth plc (the “Company”). The Presentation is subject to updating, completion, revision and amendment without notice and as such it may change mate
Slide 23: Appendix
Appendix
Slide 24: Income statement
Income statement 179% revenue growth, this has been driven by US growth (contributing Half year to 30 June (unaudited) £23.2m), fee uplifts within ‘Children and Young People’ offset by churn in our UK revenue lines where revenue for the period fell by 5.8% to £9.3m. £m 2022 2023 2024 ARR growth of 1
Slide 25: Balance sheet extract
Balance sheet extract £m (Unaudited) 30 June 2022 30 June 2023 30 June 2024 Goodwill 0.5 0.5 0.5 Development costs 3.1 5.8 10.2 Strong debt-free balance sheet with £14.9m Other non-current assets 0.5 1.8 1.9 net cash and £25.3m net assets. Total non-current assets 4.1 8.1 12.6 Trade and other receiv
Slide 26: Cashflow
Cashflow Half year to 30 June (unaudited) £m Cash generated from continuing 2022 2023 2024 operations £8.1m. Increase from 2023 Adjusted EBITDA 0.5 0.0 7.8 reflects the US expansion in California. Movement in Net Working Capital 1.7 0.3 0.3 Operating Cashflow 2.2 0.3 8.1 Corporation tax paid of £0.5m r