Release Date: August 27, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- PharmX Technologies Ltd (ASX:PHX, Financial) reported a 9% growth in revenues and a 13% growth in earnings for FY24.
- The company maintains a strong cash position, even after paying out a $9.9 million court settlement.
- PharmX Technologies Ltd (ASX:PHX) successfully sold its pharmacy software business, generating $6.25 million in proceeds.
- The company has secured exclusive partnerships in beauty and nicotine vaping products, expected to drive significant revenues.
- PharmX Technologies Ltd (ASX:PHX) has a high market penetration, with 99% of Australian pharmacies using its offerings.
Negative Points
- The company faced a $1.8 million statutory net loss for FY24, partly due to the legal case settlement and the sale of the pharmacy software business.
- Despite revenue growth, statutory costs grew by 15%, impacting overall profitability.
- The sale of the pharmacy software business resulted in a net loss of $1.864 million.
- The company is still in the early stages of its marketplace platform, which is not yet generating significant revenue.
- PharmX Technologies Ltd (ASX:PHX) had to absorb corporate overheads previously allocated to the sold pharmacy software business, affecting EBITDA.
Q & A Highlights
Q: Can you talk a little bit around Gateway and options for growth within that aspect of the business? Are you seeing that as more the stable part with marketplace really looking to be the driver going forward?
A: Although Gateway is a mature business, there is still significant growth potential. We aim to increase the number of suppliers, which will drive engagement from pharmacies and enhance our analytics capabilities. Additionally, our marketplace platform and analytics are expected to contribute significantly to revenue growth in the coming years. β Thomas Culver, CEO
Q: What is the profitability of the marketplace on a standalone basis, or is it still burning cash?
A: We view the business as a whole rather than isolating the marketplace. The overall business is generating cash, and we continue to invest in R&D. β Andrew Jonathan George Newbery, Interim CFO
Q: Can you talk us through what's driving the 20% month-on-month growth within the marketplace and the trajectory of that growth?
A: The growth is driven by improved usability, product engagement, and strategic partnerships. We've optimized user interfaces and processes, leading to higher customer engagement and order values. Exclusive partnerships, like the recent launch of the MCoBeauty brand, have also significantly boosted growth. β Thomas Culver, CEO
Q: How much revenue is being generated on the marketplace at the moment?
A: While we haven't disclosed specific numbers, the marketplace is growing rapidly. We prefer to look at the business as a whole, and the overall message is that there is encouraging growth. β Andrew Jonathan George Newbery, Interim CFO
Q: Do you have teams or people working with pharmacies to explain new features and improve adoption of the marketplace?
A: Yes, we have key account managers who support pharmacies in using the platform. We also focus on communication, branding, and exclusive promotions to enhance adoption and engagement. Regular research helps us understand market trends and improve our offerings. β Thomas Culver, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
