Carasent Ab · OMXSTO:CARA
Carasent Ab — Q3 2021 Earnings Presentation
20 slides from Carasent Ab's earnings presentation, Oct 27, 2021
Slide 1: Interim report Q3 2021
Interim report Q3 2021 27 October2021
Slide 2: Disclaimer
Disclaimer Certain statements made in this Presentation may include forward-looking statements. These statements relate to the Company’s expectations, beliefs, intentions or strategies regarding the future. The forward-looking statements reflect the Company’s current views and assumptions with respe
Slide 3: Agenda
Agenda 1 Q3 highlights 2 Business and market update 3 Financial review 4 Outlook
Slide 4: Q3 2021 summary
Q3 2021 summary Organic growth of 26% for the group 1 Revenue growth of 109% 2 and 29% of Evimeria & Avans Soma Revised guidance to 30 – 35% organic growth for Evimeria and Avans Soma 4 Continued strong order inflow and 3 (from 35%) due to delayed revenues backlog from new customers Raised NOK 420 m
Slide 5: Carasent at a glance
Carasent at a glance ▪ Cloud-based proprietary medical record software solution for the private healthcare segment ▪ Broad ecosystem of integrated third party services ▪ Two acquisitions completed during the last year, including Avans Soma in December 2020 and Metodika in May 2021 ▪ Significant oppo
Slide 6: Consistent track-record of growth
Consistent track-record of growth Revenue LTM Adj. EBIT margin 1 ✓ CAGR 2019 – YTD 2021: ✓ 117.4 48% Revenue growth 98.2 83.2 64.4 70.6 31% 58.3 Organic revenue growth 52.5 47.9 41.8 44.3 18% 18% 39.9 15% 15% 14% 6% 9% 10% 12% 117% 2% 3% Net retention rate YoY in Q3 2021 Q1-19 Q2-19 Q3-19 Q4-19 Q1-2
Slide 7: Overall market trends
Overall market trends DRIVERS The healthcare industry is facing underlying structural issues PROBLEM The need for high-quality healthcare at lower cost to society has never been greater SOLUTION Digitalization is transforming healthcare
Slide 8: Broadening our offering through acquisitions…
Broadening our offering through acquisitions… Occupat- Specialist Outpatient Inpatient In patient Back to Primary care ional care care rehab rehab care rehab 1 A broader and more holistic offering 2 Increased addressable market Highly positive response from existing and 3 potential customers New fun
Slide 9: …with aim of becoming “one Carasent” – unlocking synergies
…with aim of becoming “one Carasent” – unlocking synergies Historical Strategic direction Products with overlapping functionality One platform Unlocking synergies 1 2 3 Significant costs of maintaining several Cross sale of products Highly scalable model platforms
Slide 10: Investment highlights
Investment highlights 1 Exposure to an attractive niche segment of the non-cyclical Nordic e-health market 2 Proven track record of revenue and earnings growth 3 Attractive business model with high degree of revenue visibility and solid earnings profile 4 Potential for accelerated growth and expansi
Slide 11: Financial Review
€3 CARASENT Financial Review
Slide 12: Q3 2021 – Summary
Q3 2021 – Summary Quarterly revenue and EBIT development (group) Key highlights 1 Revenue Adj. EBIT margin +109% 1 Strong revenue growth continues 37 32 28 Driven by a combination of acquisitions and 2 20 organic growth 17 18 16 22% 18% 19% 18% 12% 13% 11% 3 Scalable operating cost base Q1-20 Q2-20
Slide 13: Organic growth of 26% for the group in Q3
Organic growth of 26% for the group in Q3 Revenue development Comments NOKm, constant currency +26% +32% organic organic growth growth Organic growth YoY of 26% for group in Q3 and 32% YTD 97 44% 66 Growth driven by existing customer base and 37 new customers 28% 29 13% 51% 22% Revised guidance to 3
Slide 14: Delayed revenues from new customers affecting growth
Delayed revenues from new customers affecting growth 2021 2020 Contracted ARR – new clinics Entry point license, cumulative (NOKm) 5.5 ▪ Strong momentum within new 4.0 sales 3.2 1.4 0.6 0.9 ▪ Revenue postponed by delayed implementation processes Q1 Q2 Q3 ▪ Customers focus on pandemic related activit
Slide 15: Organic growth driven by loyal and consistently growing customer base
Organic growth driven by loyal and consistently growing customer base Existing customer base New customers Strong traction in core Attractively positioned Limited historical Patient growth Digitalization growth Price improvements markets vs. competition churn Revenue from vintage 2012-2019 customers
Slide 16: Scalable model with increasing margins
Scalable model with increasing margins Q3 2021 vs. Q3 2020 Adj. EBITDA development NOKm Margin Adj. EBITDA Adj. EBIT 35 Adj. EBITDA Margin 13.2 6.8 23 36% 33% 6.4 3.2 12 36% 36% 18% 18% 25% Q3-20 Q3-21 Q3-20 Q3-21 2019 2020 YTD 2021 Improving margins driven by scalable operating cost base Note: EBIT
Slide 17: Outlook
Outlook
Slide 18: Outlook
Outlook • New guidance for 2021: • 30 – 35 % from previous of 35% organic revenue growth for Evimeria and Avans Soma • Guidance of 40% EBITDA margin maintained for Evimeria and Avans Soma • While organic growth rates within the quarter were lower than our expectations, the long-term prospects remain
Slide 19: Multiple avenues for further growth
Multiple avenues for further growth New products / services New segments Geographic expansion • Continued development of • Several attractive segments • Norwegian expansion ongoing Organic adjacent products and services identified • Several attractive regions initiatives • Standalone products in new
Slide 20: Q&A
Q&A 20