Babylon Holdings Limited · OTC:BBLNF
Babylon — Q1 2022 Earnings Presentation
20 slides from Babylon's earnings presentation, May 12, 2022
Slide 1: Q1 2022 Earnings
1 Q1 2022 Earnings May 2022 Putting an accessible and affordable quality health service in the hands of every person on Earth
Slide 2: Disclaimer: Use of Non-IFRS Financial Measures
Disclaimer Use of Non-IFRS Financial Measures This presentation includes certain financial measures to evaluate Babylon’s projected financial and operating performance, and measures calculated based on these measures, including Adjusted EBITDA and Adjusted EBITDA Margin, that are not prepared in acc
Slide 3: Summary Progress for Q1 2022
Summary Progress for Q1 2022 3 274% Revenue growth year-over-year +50ppt Adjusted EBITDA Margin improvement year-over-year(1) 4.1x Growth in U.S. VBC membership year-over-year(2) Key Highlights Total revenue of $266m, representing a 274% increase from Q1 2021 revenue of $71.3m, and 521% on a normali
Slide 4: Value-Based Care Membership Growth
4 Value-Based Care Membership Growth US Value-Based Care Membership(1) 59K 59K 56K 73K 140K 225K 8K 8K 12K 12K 11K 31K 16K 16K 15K 15K 66K 66K 84K 100K 167K 271K Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Medicaid Medicare Commercial • Added over 100,000 U.S. VBC Members in Q1 via three new VBC
Slide 5: Strong progress in our Home State Health population
We are continuing to see strong progress in our Home State Health population 5 of appointments avoided an Emergency Room or Urgent Care visit(2) Notes: (1) Home State Health VBC Household Penetration, Oct 2020 to Mar 2022. Babylon defines household penetration as obtaining a sign-up from at least on
Slide 6: New VBC Cohorts are Ramping Up Much Faster
6 • Compared to New York and Missouri contracts, our weekly high-risk sign up rates for Georgia have been 4-5x faster and Mississippi rates have been 8-10x(2) faster • Continuous optimization and tailored outreach approach driving improvement in penetration rates over time • Onboarding high-risk pro
Slide 7: Revenue and Revenue Growth
7 Revenue and Revenue Growth (unaudited) $43m $28m $16m $41m $71m $57m $74m $120m $266m Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 +159% +5% +34% +30% +61% +123% Revenue Growth ($m) Notes:(1) $28.4m of one-off upfront revenue recognition in connection with a software licensing arrangeme
Slide 8: Underlying Revenue and Adjusted EBITDA Margin
8 $43m $28m $16m $41m $71m $57m $74m $120m $266m Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Revenue (1) Notes:(1) $28.4m of one-off upfront revenue recognition in connection with a software licensing arrangement in Q1 2021. Adjusted EBITDA Margin for Q1 2021 has been calculated excludin
Slide 9: Operational Leverage: Technology & SG&A costs as % of revenue
9 135% 92% 39% 38% 36% 21% 10% 150% 44% 73% 79% 57% 65% 22% 285% 137% 112% 116% 92% 86% 32% Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Technology costs SG&A costs 253ppt 128ppt SG&A margin and 125ppt technology margin improvement since Q3 2020 Notes:(1) $28.4m of one-off upfront revenue
Slide 10: 2022 Full-Year Guidance Update
2022 Full-Year Guidance Update Increasing Revenue Guidance • Raising our guidance above the top of our previous range of $900m-$1.0bn to $1.0bn+ Solidifying Adjusted EBITDA Guidance • Adjusted EBITDA guidance to be a maximum loss of $(295)m at $1.0bn revenue Reiterating Long Term Profitability Guida
Slide 11: Financial Statements and Reconciliations
11 21 Financial Statements and Reconciliations
Slide 12: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss (unaudited) 12 12 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Software licensing revenue 35,964 8,281 7,983 7,824 7,756 Clinical services revenue 8,070 10,064 10,764 13,119 12,115 Value-based care revenue 27,259 39,133 55,715 98,745 246,575 Revenue 71,293 57,478
Slide 13: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (unaudited) 13 13 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 ASSETS Non-current assets Right-of-use assets 2,505 10,135 7,297 7,844 20,014 Property, plant and equipment 1,446 2,879 5,964 24,990 25,694 Investments in associates 10,422 12,600 11,583 -- Goodwil
Slide 14: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows (unaudited) 14 14 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Cash flows from operating activities Loss for the period (10,847) (64,875) (65,975) (232,815) (91,357) Adjustments to reconcile Loss for the period to net cash provided by (used in) operating activities: R
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation and Calculation of IFRS Loss for the Period Margin and Adjusted EBITDA Margin 15 15 Note: We are not able to reconcile projected 2022 Adjusted EBITDA or 2022 Adjusted EBITDA Margin to their respective most directly comparable IFRS measures as we are not able to forecas
Slide 16: Appendix
Appendix 16 8
Slide 17: Home State Health Patient Case Study
Home State Health Patient Case Study 17
Slide 18: Thank you!
18 30 Thank you!
Slide 19: Risk factors
• We have a history of incurring losses, may not be able to achieve or maintain profitability, anticipate increasing expenses in the future and may require additional capital to support business growth. Additional financing may not be available on favorable terms or at all. • Our historical operatin
Slide 20: Risk factors (continued)
•Failure to adequately expand our direct sales force will impede our growth. •We may invest in or acquire other business and we may have difficulty integrating any such acquisitions successfully. We may also enter into collaborations and strategic alliances with third parties that may not result in