Nordhealth As · OSL:NORDH
Nordhealth As — Q4 2024 Earnings Presentation
47 slides from Nordhealth As's earnings presentation, Mar 4, 2025
Slide 1: Nordhealth
(X] nordhealth
Slide 2: Q4 2024 presentation
Q4 2024 presentation 4 March 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: Q4 2024 KPIs
Q4 2024 KPIs 20.5% 113.0% 5.1% 0.7 Organic ARR growth1 Net retention rate Churn2 CAC / new ARR LTM Q4 2024 YoY Q4 2024 LTM Q4 2024 LTM Q4 2024 19.6 LTV / CAC €42.3M €44.3M €0.53 LTM Q4 2024 Implemented ARR Signed ARR ARR per share3 December 2024 Annualised Q4 2024 Q4 2024 Annualised 1. Organic ARR g
Slide 7: 53% organic and acquisition-led growth CAGR since 2018
53% organic and acquisition-led growth CAGR since 2018 Signed ARR M€ Excludes Vets4Pets and US enterprise R 53% chain post-pilot CAG rollouts Nordhealth 7
Slide 8: Organic ARR growth is accelerating
Organic ARR growth is accelerating YoY Change in Signed ARR M€ Nordhealth 8
Slide 9: 20.5% YoY implemented ARR growth
20.5% YoY implemented ARR growth ARR M€ • Implemented ARR excluding other businesses grew 20.5% YoY • Net upsell primarily driven by CVS implementation and other Provet Cloud ARPU and user growth • 5.1% ARR churn was impacted by sunset of Provet Win and Vetserve products. Excluding these, churn wo
Slide 10: 20% ROI on investments in CAC, R&D and acquisitions in the last 3 years
20% ROI on investments in CAC, R&D and acquisitions in the last 3 years ● Contribution Margin = Recurring Revenue - COGS Customer Service - Maintenance R&D (for legacy products) - G&A costs ● Total investment = Acquisitions + previous year CAC R&D ● ROI Change in Contribution Margin / Total in
Slide 11: Veterinary Update
02 Veterinary Update Charles MacBain, CEO Nordhealth 11
Slide 12: 29.9% YoY Veterinary implemented ARR growth
29.9% YoY Veterinary implemented ARR growth Implemented ARR M€ • Implemented ARR grew 29.9% YoY • Net retention rate 122.7%, primarily driven by implemented new clinics for CVS and other enterprise clients • 4.8% ARR churn was impacted by sunset of Provet Win and Vetserve products. Excluding these
Slide 13: Adjusted Veterinary BU EBITDA - CAPEX improved by €1.6M YoY
Adjusted Veterinary BU EBITDA CAPEX improved by €1.6M YoY Veterinary BU EBITDA CAPEX (m€) Main drivers of improvement Q4/24 vs Q4/23 ● Recurring revenue growth €1.4M ● Professional services revenue €0.3M ● Net increase in product development costs €0.5M ● Net decrease in other costs
Slide 14: Veterinary growth propelled by international expansion
Veterinary growth propelled by international expansion Implemented ARR (m€) ● 46% of ARR at the end of Dec. 2024 came from outside Nordics vs. 6% in Dec. 2021 ● 32% of ARR at the end of Dec. 2024 came from Growth Markets US, UK, Southern Europe) ● 20212024 Growth Markets CAGR was 148% ● 90% of the
Slide 15: Provet Cloud's enterprise solution is well positioned to capture enterprise opportunity
Provet Cloudʼs enterprise solution is well positioned to capture enterprise opportunity Implemented ARR (m€) ● The veterinary market has consolidated in the Nordics and UK and is currently consolidating in Southern Europe and US. We are well positioned to take advantage of this trend. ● In 2021, we
Slide 16: Veterinary Migration to Cloud Progress
Veterinary Migration to Cloud Progress Implemented ARR M€ ● Cloud share of ARR increased from 37% in 2021 to 74% in 2024 ● 1.0 m€ ARR was migrated during 2024 ● Churn rate for non-cloud was 9.0% in 2024 ● Vetserve and Provet Win were sunset in 2024 ● We are working on migrating Provet Net Finland
Slide 17: Therapy Update
03 Therapy Update Charles MacBain, CEO Nordhealth 17
Slide 18: 9.2% YoY therapy implemented ARR growth
9.2% YoY therapy implemented ARR growth Implemented ARR M€ • ARR growth at 9.2% YoY • Net retention rate (including price increases) 101.1% • Churn was 5.4% in 2024 vs. 7.8% in 2023 Reported in constant currency (using year 2023 end currency rates). Q4 2023 ARR has been revised to exclude “Other B
Slide 19: Adjusted Therapy BU EBITDA - CAPEX remained positive in 2024
Adjusted Therapy BU EBITDA CAPEX remained positive in 2024 Therapy BU EBITDA CAPEX M€ Main drivers of result improvement Q4/24 vs Q4/23 ● Recurring revenue growth €0.4M ● Net increase in product development costs €0.4M ● Net decrease in other costs €0.1M ● Restructuring costs omitted
Slide 20: Therapy ARR development by market
Therapy ARR development by market Implemented ARR M€ • Aspit was acquired in 2021 • EasyPractice acquired 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 a
Slide 21: Therapy Migration is progressing in Norway
Therapy Migration is progressing in Norway Implemented ARR (m€) ● Cloud share of ARR increased from 30% in 2021 to 45% in 2024 ● 0.1 m€ ARR was migrated in 2024 ● Churn for non-cloud was 2.5% in 2024 ● Full focus on Aspit migration in 2025 Nordhealth 21
Slide 22: Financial Update
04 Financial Update Alexander Cram, CFO Nordhealth 22
Slide 23: 19.5% growth in total quarterly reported revenues YoY
19.5% growth in total quarterly reported revenues YoY €ʼM 19.5% • Total reported revenues grew by 19.5% YoY to €12.1M in Q4/24 €10.1M in Q4/23 • Reported recurring revenues grew by 22.4% YoY to €10.7M in Q4/24 €8.7M • Share of recurring revenue in Q4/24 was 88.5% 86.4% in Q4/23 Nordhealth 2
Slide 24: 24.0% growth in total annual reported revenues YoY
24.0% growth in total annual reported revenues YoY €ʼM 24.0% • Total reported revenues grew by 24.0% YoY to €45.7M in FY 2024 €36.8M in FY 2023 • Reported recurring revenues grew by 21.5% YoY to €40.2M in FY 2024 €33.1M in FY 2023 • Share of recurring revenue in 2024 was 88.0% 89.8% in 2023
Slide 25: Quarterly Adjusted EBITDA - CAPEX improved by €1.5M
Quarterly Adjusted EBITDA CAPEX improved by €1.5M Adjusted EBITDA CAPEX, M€ Drivers of result improvement Q4/24 vs Q4/23 • Revenue €2.0M • Increase in product development costs €0.6M Adjusted EBITDA CAPEX adjusted for restructuring and other one-off items €0.1M in Q4/24, €0.2M in Q4/23
Slide 26: Annual Adjusted EBITDA - CAPEX improved by €4.9M YoY
Annual Adjusted EBITDA CAPEX improved by €4.9M YoY EBITDA CAPEX (adjusted), M€ Drivers of result improvement 2024 vs 2023 • Recurring revenue €7.1M • Other revenue €1.7M • Increase in product development costs €2.7M • Increase in other costs €1.2M Adjusted EBITDA CAPEX adjusted fo
Slide 27: Quarterly adjusted cash flow improving steadily YoY
Quarterly adjusted cash flow improving steadily YoY €ʼM • Adjusted cash flow improved by €2.7M, from €3.2M in Q4/23 to €0.5M in Q4/24 mainly due to: • Improvement in profitability by €1.3M. • Better improvements in trade debtors balance i.e. ‘cash collectionʼ, by €0.8M. • Other working capital c
Slide 28: Annual adjusted cash flow improving steadily YoY
Annual adjusted cash flow improving steadily YoY €ʼM • Adjusted cash flow improved by €8.0M, from €10.6M in FY 2023 to €2.6M in FY 2024 mainly due to: • Improvement in profitability by €4.2M • One-off adverse working capital change of €3.8M in 2023. Clients received reduced upfront billing terms
Slide 29: Strong cash position and no debt
Strong cash position and no debt Balance sheet 31 December 2024 €ʼM Assets • Cash, cash equivalents and money market funds amounted to €19.6M at the end of Q4/24 vs. EUR 22.2M at the end of Q4/23 • Intangible assets primarily consist of capitalised R&D expenses Liabilities and equity • No interest
Slide 30: Looking ahead to 2025
Looking ahead to 2025 Veterinary ● Complete CVS rollout ● Pilot success and begin implementing signed enterprise customers in UK and US ● Sign new enterprise customers Therapy ● Migrate majority of Aspit customers to unified platform ● Launch AI dictation and clinical notes in 2025 Nordhealth 30
Slide 31: Guidance update
Guidance update 2024 Update ● Recurring revenue grew 21.8% in 2024 vs. 2023 Dec. 31st 2023 constant currency), the top end of our guidance ● Adjusted EBITDA CAPEX improved from €6.1M in 2023 to €1.2M in 2024 2025 Guidance Update Veterinary and Therapy ● 1217% organic growth recurring revenue
Slide 32: Financial calendar
Financial calendar Q1 2025 results presentation on 13 May 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: Profit & Loss statement
Profit & Loss statement Consolidated Income Statement Unaudited Unaudited Unaudited Audited EUR in thousands Q4 2024 Q4 2023 FY 2024 FY 2023 Recurring revenue 10 712 8 749 40 196 33 085 Other revenue 1 393 1 379 5 479 3 740 Total revenue 12 104 10 128 45 675 36 825 Other operating income 35 41 137 1
Slide 36: Balance Sheet
Balance Sheet Consolidated Balance Sheet Unaudited Audited EUR in thousands 31Dec-24 31Dec-23 Intangible assets 13 267 12 480 Deferred tax assets 84 547 Other capitalized long-term expenses 35 101 Goodwill 41 381 49 008 Machinery and Equipment 297 498 Other shares and similar rights of ownership 6
Slide 37: Cashflow
Cashflow Consolidated Cash Flow Statement Unaudited Unaudited Unaudited Audited EUR in thousands Q4 2024 Q4 2023/** FY 2024 FY 2023 Cash flow from operations Profit before income taxes 1 994 3 308 6 637 10 806 Taxes paid in the period 127 19 124 51 Other non-cash items 95 902 1 132
Slide 38: Business Segments
Business Segments 🐶Veterinary Therapy Other Businesses Cloud Non-Cloud Cloud Non-Cloud Cloud Non-Cloud Products Provet Cloud Vetera DACH EasyPractice Physica Navisec IT Operations Provet Pay Sanimalis Norway Diarium Psykbase Provet Net Finland) Booking Portal Vetvision Denmark) Share of…
Slide 39: 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 40: Nordhealth - QoQ implemented ARR growth
Nordhealth - QoQ implemented ARR growth ARR M€ • QoQ implemented ARR growth was 1.9% ● Annualised churn rate was 3.0% excluding other business Reported in constant currency (using year 2023 end currency rates). Provet Cloud Signed but not implemented ARR in Q3/24 was €2.1M.. Nordhealth 40
Slide 41: Veterinary - QoQ implemented ARR growth
Veterinary - QoQ implemented ARR growth ARR M€ • QoQ implemented ARR growth was 0.7% ● Decrease was mainly driven by seasonal effects (working day in December vs September) impacting: ○ Customersʼ revenues for clients that pay us a share of their revenue ○ Transactional fees ● Annualised churn ra
Slide 42: Therapy - QoQ implemented ARR growth
Therapy - QoQ implemented ARR growth ARR M€ • QoQ implemented ARR growth was 5.8% ● Annualised churn was 3.8% Reported in constant currency (using year 2023 end currency rates). Nordhealth 42
Slide 43: Veterinary average churn close to 2% and net retention above 118% over the last 5 years
Veterinary average churn close to 2% and net retention above 118% over the last 5 years Churn rate Net retention rate ● Churn in 2024 was impacted by sunsetting of Provet Win and ● Average net retention almost 118% - driven primarily by Vetserve products. growth in the enterprise client segment. ● O
Slide 44: Therapy churn and net retention impacted by one-off churn event
Therapy churn and net retention impacted by one-off churn event Churn rate Net retention rate ● Churn increased in 2023 due to losing our 2nd largest therapy ● Average net retention rate 110% impacted by customer following their acquisition by a healthcare company EasyPractice self-service model and
Slide 45: Headcount development
Headcount development Headcount At the end of Q4/24 total headcount amounted to 411. 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
Slide 47: Key definitions
Key definitions ARR is recurring revenue annualised by multiplying the quarter’s last month recurring revenue by 12. Exchange rates used to calculate ARR are adjusted on an annual basis at the end of the 1st quarter. Constant currency ARR growth rates are calculated by applying the end of the previo