Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenue for the year increased by 5% to EUR9.9 million, despite delays in customer deployments.
- Recurring revenue grew by 9% to EUR7.2 million, indicating strong ongoing customer engagement.
- Gross margins remained strong at 67%, consistent with the previous year.
- The company added eight major new logos in the United States, a record for any 12-month period.
- The partnership with Baxter was extended for two more years and expanded to include the Canadian market, enhancing market reach.
Negative Points
- Two significant customer deployment projects were postponed, impacting revenue for the year.
- The adjusted EBITDA loss for the year was EUR8.8 million, influenced by delayed projects and increased investment in resources.
- The company faces challenges in the private hospital market in Australia, affecting potential growth in that region.
- Customer churn is primarily due to financially challenged customers unable to refresh hardware, impacting revenue stability.
- Hardware prices, although decreasing, still pose a challenge in terms of affordability for some customers.
Q & A Highlights
Q: Could you help us understand what sort of costs have already been incurred related to the two delayed deployments?
A: Darragh Lyons, CFO: There hasn't been a significant amount of direct costs incurred on those projects in terms of OpEx. We've built up investment in the US to support the expected pipeline, but no specific direct losses on those contracts. We view them as postponements and expect them to resume in 2025.
Q: Regarding the Baxter VAR, could you talk about the size and style of customers being delivered by Baxter versus the traditional sales force?
A: James Fitter, CEO: Early purchase orders from Baxter are typical of our business, starting with proof of concept in 50-80 beds, but they are enterprises. Of the eight new logos added last year, they have 11,300 licensed beds, with an 8,000-bed expansion opportunity not yet contracted.
Q: How is MyStay Mobile positioning itself in the market? Is it attracting interest as an add-on for existing customers or as a beachhead product for new customers?
A: James Fitter, CEO: Currently, it's more of an add-on for existing customers, particularly appealing to Gen Z and millennials. We believe the future is mobile-first, but we haven't yet found a customer going mobile-only.
Q: Can you confirm the status of the pipeline outlook, particularly regarding the merged hospital delay and the Children's Hospital in Ireland?
A: James Fitter, CEO: We have purchase orders for both projects. The Children's Hospital of Ireland is expected to have practical delivery in June, with hopes to open this year. BJC's new building, Plaza West, is scheduled for delivery at the end of this year, indicating promising engagement.
Q: How should we think about gross margin expectations going forward?
A: Darragh Lyons, CFO: The full-year gross margin of 67% is more representative of future expectations. The first half had less nonrecurring revenue, while the second half saw more nonrecurring revenue, which has lower margins. We expect margins to remain in the mid to late 60s as we deploy more projects.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
