Nordhealth As · OSL:NORDH
Nordhealth As — Q4 2022 Earnings Presentation
38 slides from Nordhealth As's earnings presentation, Mar 7, 2023
Slide 1: Nordhealth
(X] nordhealth
Slide 2: Q4 2022 presentation
Q4 2022 presentation 7 March 2023
Slide 3: Today's presenters
Today’s presenters Charles MacBain Mari Orttenvuori CEO CFO Nordhealth 3
Slide 4: Agenda
Agenda 1.0 Company Update 2.0 Veterinary Update 3.0 Therapy 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: Our mission
🚀 Our mission Acquire and build great software that empowers healthcare professionals to save time so they can focus on delivering great care and growing their business Nordhealth 6
Slide 7: Q4 2022 KPIs
Q4 2022 KPIs 31% total 16.4% organic 1.2 104% organic ARR growth ARR growth CAC / new recurring net retention rate 2022 Proforma 2022 revenue Proforma 2022 2022 EUR 31.8M EUR 28.2M EUR 0.40 3.3% organic signed ARR recurring revenue ARR per share ARR gross churn Q4 2022 FY 2022 2022 Proforma 2022 Nor
Slide 8: 3.7% QoQ ARR growth in Q4 2022
3.7% QoQ ARR growth in Q4 2022 +3.7% 0.4 -0.2 31.8 0.9 30.7 • Signed ARR grew 3.7% QoQ • 72% of new customers came from Cloud products • 46% of ARR on Cloud products at year-end 2022 vs. 39% at year-end 2021 New Net customers upsell Churn Q3 2022 ARR Q4 2022 ARR Reported in constant currency (using
Slide 9: 16% YoY Pro Forma ARR growth
16% YoY Pro Forma ARR growth +16.4% • Signed pro-forma ARR growth at 16.4% in LTM ending Q4/22 0.9 -0.9 31.8 1.0 3.4 • New customer acquisition accounted for 76% 27.4 of the growth • Net retention was disappointing • Churn 3.3% • EasyPractice and Vetera signed ARR grew 39% and 20% respectively in LT
Slide 10: ARR has grown 75% per annum since 2018
ARR has grown 75% per annum since 2018 31.8 • Cloud ARR grew 35% YoY in 2022 9.3 • Veterinary cloud in 2022 grew 61% 24.2 organically* • Acquired EasyPractice Q1/2022 8.6 and Vetera in Q2/2022 6.7 11.9 3.9 9.6 7.9 3.4 Therapy hosted 2.7 6.9 Therapy cloud 3.4 6.1 5.9 7.9 Veterinary hosted 1.7 4.9 1.2
Slide 11: KPIs by business segments (Pro Forma)
KPIs by business segments (Pro Forma) 🐶Veterinary Therapy Total Cloud Hosted Cloud Hosted Cloud Hosted All ARR 2021-Q4 (€M) € 5.2 € 8.0 € 5.6 € 8.6 € 10.8 € 16.6 € 27.4 ARR 2022-Q4 (€M) € 7.9 € 7.9 € 6.7 € 9.3 € 14.6 € 17.2 € 31.8 Growth 51.5% -1.8% 19.9% 9.2% 35.2% 3.9% 16.3% Migration (€M) €…
Slide 12: Profitability by product
Profitability by product Therapy Cloud Veterinary Cloud Veterinary Therapy Cloud Therapy Veterinary Therapy Pro Forma, M€ Hosted Hosted Total Total Total Nordics International EasyPractice Diarium** Recurring revenue 9.8 1.3 2.6 2.1 4.3 8.9 13.7 15.3 29.0 COGS -1.5 -0.3 -0.5 -0.3 -0.3 -3.2 -2.3 -3.7
Slide 13: People
People At the end of Q4/22 total number of employees amounted to 400 of which 140 work in Therapy, 233 in Veterinary and 27 in HQ G&A. Q4/2021 Q1/2022 Q2/2022 Q3/2022 Q4/2022 As of 6.3.23 Customer Service 45 67 80 82 84 83 R&D 115 138 164 167 165 149 Business G&A 7 11 14 14 13 11 Sales & Marketing 2
Slide 14: Veterinary Update
02 Veterinary Update Charles MacBain, CEO Nordhealth 14
Slide 15: Veterinary business update
Veterinary business update Growth ● Provet Cloud ARR outside the Nordics more than doubled to €2.7M (122% growth) ● Signed 2 enterprise customers in Spain worth over €350k in ARR ● First Danish customer goes live on Provet Cloud Profitability ● Set end-of-life for two Nordic legacy vet PMS by the en
Slide 16: 19% YoY Pro Forma ARR growth
19% YoY Pro Forma ARR growth +19.3% • 19.3% Pro Forma ARR growth YoY 0.3 -0.3 15.8 0.6 • Organic signed ARR growth of 14% 1.9 including price increase impact of 13.2 EUR 0.3M • Organic churn of 2.3% • Vetera acquired Q2/2022 • Recruited 2 new enterprise customers in Spain in Q1 2023 with estimated A
Slide 17: Therapy Update
03 Therapy Update Charles MacBain, CEO Nordhealth 17
Slide 18: Therapy business update
Therapy business update Growth ● EasyPractice grew 39% in YoY Q4 2022 vs. Q4 2021 ● Localising EasyPractice for Norway, focusing on one specialty at a time ● Migrated first customer from Aspit to EasyPractice in February 2023 Profitability ● Shut down Mathilda project and refocused our efforts on Ea
Slide 19: 13% YoY Pro Forma ARR growth
13% YoY Pro Forma ARR growth +13.4% • 13.4% Pro Forma ARR growth YoY 0.6 -0.6 16.0 • YTD Q4/22 2000 new clinics started 0.4 1.5 using our therapy PMS 14.1 • Organic signed ARR growth of 10% including price increase impact of EUR 0.3M • Organic churn of 3.0% • EasyPractice signed ARR growth of 39% in
Slide 20: Financial Update
04 Financial Update Mari Orttenvuori, CFO Nordhealth 20
Slide 21: Investment in core platform has yielded strong growth in recurring revenue QoQ
Investment in core platform has yielded strong growth in recurring revenue QoQ Reported financials, adjusted for one-off items. +148% • Steady growth in recurring revenue; Q4/22 up by 25% QoQ at EUR 7.4M +25% • FY 2022 recurring revenue grew by 20%; 7.4 91% share of total revenues 7.1 7.2 6.5 5.3 5.
Slide 22: Share of recurring Cloud revenue increased to 34% in Q4/22
Share of recurring Cloud revenue of reported revenue increased to 34% in Q4/22 • Non-Recurring revenue has grown due to 366 1,076 higher number of implementation projects but 789 includes also Vetera one-off license revenues 603 904 929 746 as of Q2/22 951 • Variable Recurring revenue fluctuation is
Slide 23: Profit & Loss statement
Profit & Loss statement Consolidated Income Statement Unaudited Unaudited Unaudited Audited • Total revenues FY 2022 EUR 31.0M; up 53% EUR in thousands Q4 2022 Q4 2021 FY 2022 FY 2021 YoY Recurring revenue 7 382 5 900 28 216 18 464 Other revenue 1 076 503 2 833 1 836 • Total revenues Q4/22 EUR 8.5M;
Slide 24: Balance Sheet
Balance Sheet Consolidated Income Statement Cash and Cash Equivalents Unaudited Unaudited EUR in thousands 31-Dec-22 31-Dec-21 ● Cash balance remains strong at EUR Intangible assets 10 280 4 556 39.3M of cash and cash equivalents Deferred tax assets 31 45 Other capitalized long-term expenses 32 68 C
Slide 25: Cashflow
Cashflow Consolidated Income Statement Unaudited Unaudited Unaudited Audited Cash flow from operating activities EUR in thousands Q4 2022 Q4 2021 FY 2022 FY 2021 Cash flow from operations ● Cash flow in FY 2022 mainly impacted Profit before income taxes (4 318) (2 023) (14 061) (4 646) by investment
Slide 26: Guidance
Guidance ● 15-20% growth in recurring revenue in 2023 from 2022 ● EBITDA - CAPEX break-even by Q1 2025 Nordhealth 26
Slide 27: Financial calendar
Financial calendar Q1 2023 results presentation on 16 May 2023 Capital Markets day will be held during Q3/2023 - the date will be announced during the next few weeks
Slide 28: Q&A
05 Q&A Nordhealth 28
Slide 29: Key definitions
Key definitions Annual recurring revenue ("ARR") is the value of recurring revenue of software subscriptions that has been normalised for a single calendar year. These include all active subscriptions and subscriptions that have been signed but not yet implemented. ARR also includes the annualised v
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Slide 31: Appendix
(X) nordhealth Appendix ay
Slide 32: Business Segments
Business Segments 🐶Veterinary Therapy Cloud Hosted Cloud Hosted Products Provet Cloud Provet Legacy (Finland) EasyPractice Aspit (Norway) Nordhealth Pay Sanimalis (Norway, Sweden) Diarium Vetserve (Norway) Nordhealth Connect Vetvision (Denmark) Navisec Flex Vetera (DACH) Share of ARR Q4 2022 25%…
Slide 33: Veterinary ARR development by product
Veterinary ARR development by product 15.8 1.7 11.8 • Provet Cloud new customer recruitments account for 51% of the Veterinary Cloud growth in 2022 6.2 • Vetera signed ARR growth of 20% in 2022 8.6 6.9 6.8 6.1 Vetera 5.9 7.9 1.7 4.9 Hosted products 1.2 2.5 Provet Cloud 0.9 0.5 2018 2019 2020 2021 20
Slide 34: Therapy ARR development by product
Therapy ARR development by product • New customers recruitments share of the total 16.0 growth per product of year 2022: 0.7 • EasyPractice 41 % 2.4 12.4 • Aspit 39 % 0.6 • Diarium+Nordhealth Connect 30 % 9.3 8.6 Navisec Flex 3.4 EasyPractice 2.7 0.5 1.7 0.4 Aspit 3.3 3.5 0.3 2.8 2.3 1.3 Diarium+Nor
Slide 35: Provet Cloud has experienced strong, growing beachheads outside the Nordics
Provet Cloud has experienced strong, growing beachheads outside the Nordics +35% 4.4 3.3 +117% +99% +222% +98% Q4 2021 ARR 0.8 0.8 0.6 0.4 0.4 Q4 2022 ARR 0.4 0.2 0.2 Nordics USA UK Spain Other Calculated based on constant currency (using year 2021 end currency rates) USA = USA, Canada, Australia, a
Slide 36: Q4 2022 YoY EasyPractice
Q4 2022 YoY EasyPractice +39% 0.3 -0.3 2.4 0.6 0.03 • Signed ARR growth of 39% 1.7 • Net Revenue Retention was 104% New Net Price customers upsell increase Churn Q4 2021 ARR Q4 2022 ARR Reported in constant currency (using year 2021 end currency rates) Nordhealth 36
Slide 37: Our products
Our products Electronic Health Occupational and Veterinary Physiotherapists Psychotherapists Record Software Speech therapists World leading position Leaders in Norway and Finland, aiming to expand Practice Management Appointment Calendar & Unified Communication Inventory management Invoicing Softwa
Slide 38: Acquisition history
Acquisition history Several acquisitions completed since 2005 2005 2009 2017 2019 2019 Acquired Praktiikka Entering the therapy Acquired Sanimalis Acquired Provet Pet segment Acquired Navicre Acquired Trofast and Vetserve 2021 2021 2022 2022 2022 Acquired parts of Acquired Novasoft Acquired Aspit Yo