Release Date: August 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Beamtree Holdings Ltd (ASX:BMT, Financial) reported a record year in FY24 with a 21% growth in reported revenue.
- 47% of the revenue growth was driven by international markets, particularly in the UK, Canada, and Saudi Arabia.
- The company achieved a cash flow breakeven status by the end of the year, maintaining a healthy cash balance.
- Significant investments in product development, including autonomous coding using AI, have shown high levels of accuracy in trials.
- Strong partnerships with global entities like Lean and Abbott are expected to drive future growth.
Negative Points
- Despite revenue growth, the company still reported a net loss of $5.1 million for the year.
- The cost base increased by 12%, primarily due to higher people costs, including short-term contractors.
- The company faces a long sales cycle in the healthcare sector, which may delay revenue realization.
- There is a significant reliance on international markets for future growth, which could pose risks related to geopolitical and economic factors.
- The company’s profitability is still in the early stages, with expectations to tip into profitability in FY25.
Q & A Highlights
Q: What's the estimated cash position at June 30, 2025?
A: We will be delivering a cash flow breakeven year in 2025. (Tim Kelsey, CEO)
Q: Could you clarify, do you mean you will reach cash flow breakeven during the period or the annual cash flow should be positive?
A: We will reach cash flow breakeven during the period rather than being cash flow positive through the whole of FY25. (Mark Mclellan, CFO)
Q: Can you provide more details on the $60 million ARR target?
A: We are reaffirming the $60 million target, driven by the work undertaken in FY24 to build the pipeline across all segments. We expect 70% of growth to come from international markets. (Mark Mclellan, CFO)
Q: What are the key drivers for the growth in coding services?
A: The big opportunities are developing in the coding side of our business, particularly in Saudi Arabia around the integrated coding platform. (Mark Mclellan, CFO)
Q: How is Beamtree leveraging AI in its products?
A: We are using AI and analytic technology to solve basic problems in modern health care, particularly waste. Our technology reduces the cost of services and improves clinical outcomes. (Tim Kelsey, CEO)
Q: Can you elaborate on the international expansion strategy?
A: We are focusing on key international markets like the UK, Canada, and Saudi Arabia. We have seen significant growth in these areas and expect this trend to continue. (Tim Kelsey, CEO)
Q: What are the new product developments in FY24?
A: We have invested significantly in coding services and developed a novel application of RippleDown for autonomous coding. We also upgraded the digital platform for the Health Roundtable in Australia. (Tim Kelsey, CEO)
Q: How is the company performing financially?
A: Annual recurring revenue grew by 12%, and overall profitability improved by 29% year on year. We expect to tip into profitability in FY25. (Mark Mclellan, CFO)
Q: What are the key geographic markets for Beamtree?
A: Key markets include Australia, New Zealand, Saudi Arabia, the UK, and Canada. We expect significant growth in these regions in FY25. (Tim Kelsey, CEO)
Q: What is the outlook for FY25?
A: We remain extremely positive about the outlook, aiming for $60 million ARR by the end of 2026. We expect significant revenue growth and profitability in FY25. (Tim Kelsey, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
