Nordhealth As · OSL:NORDH
Nordhealth As — Q1 2023 Earnings Presentation
37 slides from Nordhealth As's earnings presentation, May 16, 2023
Slide 1: Nordhealth
(X] nordhealth
Slide 2: Q1 2023 presentation
Q1 2023 presentation 16 May 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 Build and acquire software that empowers healthcare professionals to save time so they can focus on delivering great care and growing their business Nordhealth 6
Slide 7: Strategy
Strategy Profitability ● One product per vertical ● Focus on migrating acquired products to Provet Cloud and EasyPractice ● Reduce CAC/New ARR through improvement in onboarding efficiency ● Lean corporate G&A (no additional headcount). ● No further significant net increase in headcount required to a
Slide 8: Bridge from 2022 year end ARR to implemented ARR
Bridge from 2022 year end ARR to implemented ARR 31.8 -0.9 –1.2 29.7 • Signed ARR: signed and implemented recurring revenue at the end of the quarter multiplied by four. • Implemented ARR: quarterly recurring revenue multiplied by four. • Impact of FX revaluations to 2022 end currency rates impact w
Slide 9: Q1 2023 KPIs
Q1 2023 KPIs 19.0% 110% organic 3.5% 2.3 CAC / new implemented ARR growth net retention rate gross churn implemented ARR Pro Forma LTM Q1 2023 LTM Q1 2023 Pro Forma LTM Q1 2023 Pro Forma LTM Q1 2023 8.0% total EUR 32.0M EUR 33.4M EUR 0.40 implemented ARR growth implemented ARR Signed ARR implemented
Slide 10: 8% QoQ implemented ARR Growth in Q1 2023
8% QoQ implemented ARR Growth in Q1 2023 1.4 33.4 +8.0% 2.0 -0.3 32.0 0.1 0.6 • Implemented ARR grew 8.0% 29.7 (growth was 6.6% excluding transactional/payment revenue) • New customer acquisition accounted for 24% of the growth • 79% of new customers came from Cloud products • 45% of implemented ARR
Slide 11: 19% YoY Pro Forma implemented ARR Growth
19% YoY Pro Forma implemented ARR Growth 1.4 33.4 +19.0% 2.3 -0.9 32.0 1.4 2.4 • Pro Forma implemented ARR growth at 19.0% in LTM ending 26.9 Q1/23 (growth was 21.9% excluding transactional/payment revenue) • New customer acquisition accounted for 39% of the growth • 67% of new customers came from C
Slide 12: KPIs by business segments (Pro Forma)
KPIs by business segments (Pro Forma) 🐶Veterinary Therapy Total Cloud Hosted Cloud Hosted Cloud Hosted All 2022-Q1 (€M) € 5.1 € 7.7 € 5.9 € 8.3 € 11.0 € 15.9 € 26.9 2023-Q1 (€M) € 7.1 € 8.3 € 7.3 € 9.4 € 14.4 € 17.6 € 32.0 Growth 39.8% 7.9% 23.5% 13.3% 31.0% 10.7% 19.0% Migration (€M) € 0.2 €…
Slide 13: Revenue growth coupled with efficiency measures have yielded improvement in profitability
Revenue growth coupled with efficiency measures have yielded improvement in profitability 1.1 0.8 0.7 0.4 0.4 -0.1 -0.4 -0.6 Adj. EBITDA, normalised -1.1 -1.1 Adj. EBITDA-CAPEX, normalised -1.4 -1.6 -1.8 -2.0 -2.3 -2.9 -3.0 -3.6 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Adjusted for one-
Slide 14: People
People At the end of Q1/23 total number of employees amounted to 378 (400 at the end of previous quarter) of which 127 (140) work in Therapy, 225 (233) in Veterinary and 26 (27) in HQ G&A. 404 392 400 378 332 257 Q4/2021 Q1/2022 Q2/2022 Q3/2022 Q4/2022 Q1/2023 Nordhealth 14
Slide 15: Veterinary Update
02 Veterinary Update Charles MacBain, CEO Nordhealth 15
Slide 16: Veterinary business update
Veterinary business update 2023 Focus ● Nordic legacy migrations ● Acquire new customers in UK, US, Spain, Italy Growth ● 3 large enterprise deals signed, each have over €150,000 in implemented ARR - implementation has begun for all three clients ● US has over 100 customers ● 48 customers have been
Slide 17: 13% QoQ implemented ARR growth
13% QoQ implemented ARR growth 1.4 16.8 +12.7% 1.2 -0.1 15.4 • Growth in first quarter 2023 was 0.4 12.7 % (10.6% excluding 0.2 transactional revenue) 13.6 • New customer acquisition accounted for 11% of the growth • 100% of new customers came from Cloud products • 46% of implemented ARR on Provet C
Slide 18: 21% YoY Pro Forma implemented ARR growth
21% YoY Pro Forma implemented ARR growth 1.4 16.8 +20.6% 1.2 -0.2 15.4 • Pro Forma implemented ARR 0.7 growth at 20.6% in LTM ending 0.8 Q1/23 (growth was 29.1% 12.7 excluding transactional/payment revenue) • New customer acquisition accounted for 30% of the growth • 75% of new customers came from C
Slide 19: Profitability improving QoQ
Profitability improving QoQ Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 • Revenue growth (EUR 0.2M) together with reorganisation activities initiated in Q4/22 had a positive impact on profitability development in Q1/23 -0.6 -0.8 • Reduction in headcount from 233 in Q4/22 to -1.2 -1.2 225 in Q1/23 -1.6 -1.7 -1.9 A
Slide 20: Therapy Update
03 Therapy Update Charles MacBain, CEO Nordhealth 20
Slide 21: Therapy business update
Therapy business update 2023 Focus ● Aspit migration to EasyPractice ● Launch booking portal in Finland Growth ● Migrated first customer from Aspit to EasyPractice in February 2023 ● EasyPractice implemented ARR grew 6.8% in Q1 2023, with no price increase ● Price increases for all products except E
Slide 22: 4% QoQ implemented ARR growth
4% QoQ implemented ARR growth 4.0% • Growth in first quarter 2023 was -0.3 0.8 4.0% (3.6% excluding 0.4 16.7 transactional revenue) -0.3 16.0 • New customer acquisition accounted for 50% of the growth • 69% of new customers came from Cloud products • 44% of implemented ARR on Cloud products in Q1/23
Slide 23: 18% YoY Pro Forma implemented ARR growth
18% YoY Pro Forma implemented ARR growth +17.5% 1.0 -0.8 0.7 16.7 • Pro Forma implemented ARR 1.5 growth at 17.5% in LTM ending Q1/23 (growth was 16.7% excluding transactional/payment 14.2 revenue) • New customer acquisition accounted for 47% of the growth • 62% of new customers came from Cloud prod
Slide 24: Strategic reorganisation measures improved profitability
Strategic reorganisation measures improved profitability 1.5 • Revenue growth together with reorganisation 1.2 activities initiated in Q4/22 had a positive 1.1 impact on profitability development in Q1/23 0.9 • Reduction in headcount from 140 in Q4/22 to 127 in Q1/23 0.8 0.7 0.6 0.5 0.4 0.4 Adj. EBI
Slide 25: Financial Update
04 Financial Update Mari Orttenvuori, CFO Nordhealth 25
Slide 26: Profit & Loss statement
Profit & Loss statement Consolidated Income Statement Unaudited Unaudited Audited • Total revenues Q1/23 grew 22% YoY to EUR 8.7M EUR in thousands Q1 2023 Q1 2022 FY 2022 Recurring revenue 7 889 6 453 28 216 Other revenue 782 603 2 833 • Recurring revenues Q1/23 grew 22% YoY to EUR Total revenue 8 6
Slide 27: Balance Sheet
Balance Sheet Consolidated Income Statement Cash and Cash Equivalents Unaudited Unaudited Audited EUR in thousands 31-Mar-23 31-Mar-22 31-Dec-22 ● Cash balance remains strong at EUR 32.2M of Intangible assets 11 440 5 170 10 280 cash and cash equivalents Deferred tax assets 540 646 585 ● Payment of
Slide 28: Cashflow
Cashflow Consolidated Income Statement Cash flow from operating activities Unaudited Unaudited Audited ● Cash flow in Q1/23 mainly impacted by continuing EUR in thousands Q1 2023 Q1 2022 FY 2022 Cash flow from operations growth investments; not adjusted for one-off items Profit before income taxes (
Slide 29: Financial calendar
Financial calendar Q2 2023 results presentation on 22 August 2023 Extended quarterly presentation in Q3 2023 on 14 November 2023. It will be held as a physical event with an opportunity to participate either virtually or physically
Slide 30: Conclusion
Conclusion ● Confirming guidance ○ 15-20% growth in recurring revenue in 2023 from 2022 (constant currency Dec. 31st 2022 FX rates) ○ EBITDA - CAPEX break-even by Q1 2025 ● Signed ARR & Implemented ARR on target ● EBITDA and EBITDA - CAPEX improvements better than expected ● Focus on migrating acqui
Slide 31: Q&A
05 Q&A Nordhealth 31
Slide 32: Key definitions
Key definitions Implemented ARR is recurring revenue of software subscriptions annualised by multiplying the quarter’s recurring revenue by four. This includes also value of volume-based transactions (e.g., SMS messages) as well as rebates from third parties (e.g., payment solution providers). Excha
Slide 33: Slide 33
Slide 34: Appendix
(X) nordhealth Appendix ay
Slide 35: 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 recurring…
Slide 36: 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 37: 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