Nordhealth As · OSL:NORDH
Nordhealth As — Q3 2022 Earnings Presentation
35 slides from Nordhealth As's earnings presentation, Nov 25, 2022
Slide 1: Nordhealth
(X] nordhealth
Slide 2: Q3 2022 presentation
Q3 2022 presentation 25 November 2022
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 🚀 Nordhealth: Acquire & build great vertical SaaS businesses in select healthcare market 🐶 Veterinary: Build great software that empowers veterinary professionals to save time so they can focus on delivering great care, delighting pet parents and growing their business Therapy…
Slide 7: Strategy
Strategy Profitability ● One product per vertical ● Focus on migration ● Reduce CAC/New ARR through centralisation and improvement in onboarding efficiency ● Lean corporate G&A (no additional headcount). All other functions in BU ● No further significant net increase in headcount required to achieve
Slide 8: 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 Q3 2022 22%…
Slide 9: Q3 2022 KPIs
Q3 2022 KPIs 33% total 16% organic +8% organic 108% organic ARR growth ARR growth new customer net retention rate LTM ARR Q3 2022 LTM ARR Q3 2022 recruitments LTM ARR Q3 2022 LTM ARR Q3 2022 EUR 30.7M EUR 29.3M EUR 0.38 2.4% organic Signed ARR Implemented ARR ARR per share ARR gross churn Q3 2022 Q3
Slide 10: 33% YoY ARR growth
33% YoY ARR growth • Signed ARR grew at 33% in LTM ending Q3/22; churn 3.3% • Signed ARR excl. acquisitions grew 16% to €26.9M; organic churn 2.4% • EasyPractice was acquired Q1/2022; Vetera was acquired Q2/2022 • EasyPractice and Vetera signed ARR grew 36% and 13.5% respectively in LTM ending Q3/22
Slide 11: 3% QoQ ARR growth in Q322
3% QoQ ARR growth in Q322 • Signed ARR grew at 3.3% in Q3/22 • We only had price increases for EasyPractice amounting to EUR 0.2M in Q3/22 • Cloud products share of new customers 70% • Annualised churn 3.6% negatively impacted by EasyPractice annualised churn rate of 15.8% due to its product-led str
Slide 12: ARR has grown 80% per annum since 2018
ARR has grown 80% per annum since 2018 • 38% growth in Veterinary cloud in 2022 • 70% growth in Therapy cloud in YTD Q3/22 mainly driven by the acquisition of EasyPractice • Growth in Veterinary in YTD Q3/22 driven by the acquisition of Vetera Veterinary cloud Veterinary hosted Therapy cloud Therapy
Slide 13: Recruitments & Promotions
Recruitments & Promotions Hanna Chiorazzo previously at BC platforms, joins as the new Chief People Officer Szymon Olko previously at Opera, joins as Engineering Director for Provet Cloud Fabio Carneiro previously at Booking.com and Mailchimp, promoted to VP Product & Design for Provet Cloud Nordhea
Slide 14: KPIs by business segments (Pro Forma)
KPIs by business segments (Pro Forma) 🐶Veterinary Therapy Total Cloud Hosted Cloud Hosted Cloud Hosted All ARR 2021-Q3 (€M) € 4.0 € 8.6 € 5.3 € 8.2 € 9.3 € 16.8 € 26.1 ARR 2022-Q3 (€M) € 6.8 € 8.3 € 6.5 € 9.1 € 13.3 € 17.4 € 30.7 Growth 68.3% -4.0% 23.2% 11.2% 42.8% 3.4% 17.5% Migration (€M) €…
Slide 15: Veterinary Update
02 Veterinary Update Charles MacBain, CEO Nordhealth 15
Slide 16: Veterinary ARR development by product
Veterinary ARR development by product • Provet Cloud new customer recruitments EUR 0.9M and migrations from hosted systems EUR 0.5M account for 50% of the Veterinary Cloud growth in YTD Q3/22 • Vetera signed ARR growth of 14% YTD Q3/22 Provet Cloud Hosted products Vetera Reported in constant currenc
Slide 17: 34% YoY ARR growth
34% YoY ARR growth • 34% ARR growth YoY • Organic signed ARR growth of 20% including price increase impact of EUR 0.3M • Organic ARR gross churn of 1.8% • Vetera acquired Q2/2022 • Vetera signed ARR growth of 14% Reported in constant currency (using year 2021 end currency rates) Nordhealth 17
Slide 18: Provet Cloud has experienced strong, growing beachheads outside the Nordics
Provet Cloud has experienced strong, growing beachheads outside the Nordics Q3 2021 ARR Q3 2022 ARR Nordics USA UK Spain Other Calculated based on constant currency (using year 2021 end currency rates) USA = USA, Canada, and Caribbean countries UK = United Kingdom and Ireland Nordhealth 18
Slide 19: Therapy Update
03 Therapy Update Charles MacBain, CEO Nordhealth 19
Slide 20: Therapy ARR development by product
Therapy ARR development by product • Aspit new customer recruitments account for 43% of the growth in YTD Q3/22 • Diarium new customer recruitments account for 30% of the growth in YTD Q3/22 • EasyPractice new customer recruitments account for 51% of the growth in YTD Q3/22 Diarium+Nordhealth Connec
Slide 21: 32% YoY ARR growth
32% YoY ARR growth • ARR growth at 32% • YTD Q3/22 over 420 new clinics and and nearly 1,800 new users of therapy softwares • Organic signed ARR growth of 13% including price increase impact of EUR 0.3M • Organic ARR gross churn of 2.9% • EasyPractice acquired Q1/2022 • EasyPractice signed ARR growt
Slide 22: Q3 2022 YoY EasyPractice
Q3 2022 YoY EasyPractice • Signed ARR growth of 36% including price increase impact of EUR 0.2M • Net Revenue Retention was 103% Reported in constant currency (using year 2021 end currency rates) Nordhealth 22
Slide 23: Financial Update
04 Financial Update Mari Orttenvuori, CFO Nordhealth 23
Slide 24: 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. • Q3/22 recurring revenue EUR 7.2M, up 36% QoQ • 90% of total revenue of EUR 8.0M • YTD Q3/22 recurring revenue EUR 20.8M, up 66% YoY • 92% of total revenue of EUR 22.6M • Q3/22 EBITDA-CAPEX EUR -2.7M
Slide 25: Profit & Loss statement
Profit & Loss statement • Total revenues YTD Q3/22 EUR 22.6M; up 62% YoY • Total revenues Q3/22 EUR 8.0M; up 39% YoY - QoQ organic growth in recurring revenue 19% • Q3/22 EBITDA EUR -1.3M • YTD Q3/22 EBITDA EUR -4.4M • Significant talent acquisition activity in 2022; net increase in YTD Q3/2022 161
Slide 26: Balance Sheet
Balance Sheet Cash and Cash Equivalents ● EUR 42.1M of cash and cash equivalents at the end of Q3/22 Change in assets ● Goodwill increased from the acquisitions of EasyPractice in Q1/22 and Vetera in Q2/22 financed through money market funds ● Increase in other shares is the minority interest in Pet
Slide 27: Cashflow
Cashflow Cash flow from operating activities ● Cash flow in YTD Q3/22 mainly impacted by investments in growth markets and product development in accordance with the plan Cash flow from investing activities ● EasyPractice (Q1/22) and share of Vetera acquisitions (Q2/22) paid in cash from the money m
Slide 28: Financial calendar
Financial calendar Q4 2022 results presentation on 7 March 2023 2022 Annual financial statements release 14 April 2023
Slide 29: 2022 ARR Forecast
2022 ARR Forecast ARR Forecast (€M) Concluding remarks 1. Focus on improving profitability YE 2021 Signed ARR 24.0 a. Migration - operational efficiencies Acquisitions 3.0 b. Focus on key markets c. No significant net new hires 2022 Organic Growth 5.5 2. New customer acquisition in current markets 3
Slide 30: Q&A
05 Q&A Nordhealth 30
Slide 31: 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 33: Appendix
(X) nordhealth Appendix ay
Slide 34: 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 35: 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