Slide 1: Kooth 2023 Full Year Results
Kooth 2023 Full Year Results A transformational year as we expand into the US market to help tackle the youth mental health crisis 26 March 2024 Tim Barker Sanjay Jawa Chief Executive Officer Chief Financial Officer
Slide 2: There is a growing, global crisis in youth mental health
There is a growing, global crisis in youth mental health New, transformative approaches are needed Healthcare systems are working with Kooth Demand is outpacing support available to scale-up support to address this challenge Double digit growth in youth seeking support, a worldwide ARR shortage in m
Slide 3: 2023 strategic progress
2023 strategic progress Successful launch of contract with California Department of Health Care Services (DHCS) to deliver behavioral 1 health care to the State’s population of 13-25 year olds, representing a $188 million, four-year opportunity Development and launch of Soluna, Kooth’s next-generati
Slide 4: Financial highlights
Financial highlights Revenue Net Cash 66% revenue increase, a record year driven by US growth and £33.3m | £20.1m £11.0m | £8.5m continuing adoption of digital-first healthcare 2023 2022 2023 2022 £64.6m year end ARR Annual recurring revenue Adjusted EBITDA 98% of revenue from contracts of 12+ months
Slide 5: Income statement
Income statement Financial year to 31 December £m 2021 2022 2023 Record organic revenue growth to £33.3m driven by US expansion ARR 16.9 21.1 64.6 contributing £14.2m (2022 £1.5m) Revenue 16.7 20.1 33.3 YoY growth 28% 21% 66% Gross margin increases to 77.6% (2022 68.9%) A favourable mix of Direct Co
Slide 6: Incredible team effort to go live in California on 1/1
1. California Incredible team effort to go live in California on 1/1 Project Achievements HR & Recruitment Product & Engineering Employment Youth engaged Contractual >60 deliverables 25k applications >200 in co-design of received Soluna Interviews New features New services 3 built 3k conducted 67 del
Slide 7: Soluna: our next generation platform, for the next generation
2. Soluna Soluna: our next generation platform, for the next generation Content, community, and coaching in a single, integrated platform Engaging mobile app in multiple languages, culturally relevant content Pre-clinical coaching support to achieve positive life outcomes Professional support in 19
Slide 8: Soluna's person-centered approach helps youth
2. Soluna Autonomy Freedom to choose your own path Relatedness Connection to others who share your values Soluna’s person-centered Mastery Self- Psychological approach helps youth Joy as you improve your skills → determination → flexibility develop psychological flexibility Open up Self-efficacy Be pres
Slide 9: Demonstration
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Slide 10: Kooth in Pennsylvania: pilot progress
3. Pennsylvania Kooth in Pennsylvania: pilot progress >95k students can access, uptake of 1-in-10 high school students 88% of students reported they got the support they needed of students who provided feedback said they felt heard, 93% understood and respected of School Administrators said they fel
Slide 11: Executing our strategy to support Medicaid populations
4. Medicaid Executing our strategy to support Medicaid populations: Partnership and pilot with Aetna Better Health of Illinois The Medicaid opportunity Aetna, a subsidiary of CVS Health (NYSE:CVS, $95bn+ market cap) Medicaid is the largest single health insurance provides Medicaid managed care servi
Slide 12: Executing our strategy to expand into additional States
5. US Expansion Executing our strategy to expand into additional States: Investment in growing our Sales and Research teams Analysis to identify priority States investing in youth mental health Now Engage Hire with State Deliver a pilot Expand the pilot Lobbyists representatives Engaged in 10+ state
Slide 13: NHS short-term financial pressures
6. UK NHS NHS short-term financial pressures NHS England projects a 2023 £7bn budget deficit for 2023/24 NHS mandate to implement January cost savings to balance budget Returning NHS spending to pre-pandemic levels Financial pressure with focus on NHS financial solvency March Mandate to reduce ICS runn
Slide 14: UK priorities
6. UK NHS UK priorities Last twelve months (LTM) churn (contract reduction or loss) increased (£2.3m) | (£2.0m) Prioritising contract retention and renewals 2023 2022 Research studies to demonstrate impact Net revenue retention Policy and public affairs focus on the impact of digital support 98% | 1
Slide 15: Summary
Summary Executing on our strategy to expand into US States 66% revenue growth to £33.3m 1 >$1bn market. California, Pennsylvania, pipeline of additional States Over 95% of revenue from contracts of 12 months or longer Expanding to support Medicaid populations 2 ~40% of US youth. Partnership with Aet
Slide 16: Outlook
Outlook Continue to deliver California platform enhancements and drive awareness and uptake Our proven track record, strong recurring revenue and net cash position give us an excellent platform for profitable growth as we enter 2024 with the expectation of gross margins of 70%+ , an EBITDA margin in
Slide 17: 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 18: Appendix
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Slide 19: Income statement
Income statement A record 66% organic revenue growth to £33.3m driven by US expansion contributing £14.2m (2022 £1.5m), in the UK fee uplifts and new business contributing £19.1m (2022 £18.6m). Financial year to 31 December Year end ARR grew to £64.6m a CAGR of more than 50% over the last three year
Slide 20: Balance sheet
Balance sheet £m 31 Dec 2021 31 Dec 2022 31 Dec 2023 Goodwill 0.5 0.5 0.5 Development costs 2.9 3.7 8.8 Strong debt-free balance sheet with £11.0m net cash and £20.8m net assets. Other non-current assets 0.6 0.2 3.0 Total non-current assets 4.0 4.4 12.3 Development costs capitalised of £8.7m in 2023
Slide 21: Cashflow
Cashflow £m 31 Dec 2021 31 Dec 2022 31 Dec 2023 Cash generated from continuing operations Adjusted EBITDA 2.1 1.6 2.3 £1.5m. This has reduced from 2022 reflecting Movement in Net Working Capital -0.3 2.5 -0.8 the working capital required to support growth Operating Cashflow 1.8 4.1 1.5 in the business
Slide 22: Population usage
Digital mental health is still nascent in the NHS for CYP 1-in-7 Grow usage Demand is 1-in-5, up from 1-in-7 in 2017. Population usage £1.2bn NHS budget for CYP mental health 22/23 ~1.25% of that is spent on Kooth CYP >£100m ARR market opportunity Today: ~60% of population have access, 1-in-40 uptak