Interim report Q4 2022
15 February2022
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 respect to future events and are subject to risks and uncertainties.
All though the Company believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation.
Carasent ASA is making no representations or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Carasent ASA, nor any of its directors, officers, employees or advisors will have any liability to you or any other person resulting from your use.
My reasons
- Health care in the entire western world is losing efficiency in a time when the opposite is badly needed
- Health care providers are still using paper notes, letters and phones to a very large extent
- In addition, big data, AI and APIs creates new possibilities within patient engagement, automated functions, digital triage and decision support
- The Nordics is in the forefront and Carasent's solutions are the best
- We have the opportunity to be a significant part of the solution for our customers and can take those solutions to multiple markets
Q4 Highlights
Business and market update
Rapid growth
- Carasent have during a short period of time grown very rapidly
- Multiple acquisitions
- Large new development projects
- Very rapid hiring
- The basis is sound and the projects right. We now need to set processes and structures to ensure that we fulfill our full potential
Near term
Business focus Clear lines of responsibility Strategic review
Strong foundation
- Leading solutions with large TAMs
- In depth expertise
- Strong development capacity and exciting projects
- Successful business models and cultures
- Growing and non-cyclical market
- Customers in need of digitalization and efficiency
Financial Review
Q4 2022 Financial summary
Q4 2022 –Summary
Quarterly revenue and Adjusted EBITDA development (group) Key highlights
- Track record of consistent revenue growth since inception
- Total growth of 41% in Q4, of which 16% was organic
- Acquisitions of Medrave, Confrere and HPI completed since Q4 2021, contributing with NOK 11.7m revenues during the quarter
- Margins are trending negatively during 2022 following an extensive new recruitment program
WebdocEHR revenues grew 21% (adjusted) despite slowdown in new sales
▪ Webdoc EHR revenues grew 25% YoY – 21% growth adjusted for a shift in revenue model for certain existing customers from variable addon services to EHR license revenues
- Other EHR (Adcuris, Adopus, Metodika) had a growth of 4% YoY
- Platform services grew 89% and consists of Webdoc add-ons and other EHR add-ons, Medrave, Confrere and HPI
- Organic growth of platform services was is impacted by variable add-ons YoY (due to vaccinations in Q4 21), shift in revenue model described above and currency effects
Organic growth in recurring revenues of 15% and total growth of 41%
Recurring revenue bridge Q4 2021 – Q4 2022 (NOKm)
EBITDA margin development – scalable cost base in nature
| Employees |
Q3
2021 |
Q4
2021 |
Q1
2022 |
Q2
2022 |
Q3
2022 |
Q4
2022 |
| G&A |
7 |
8 |
8 |
9 |
13 |
14 |
| R&D |
59 |
60 |
73 |
76 |
89 |
103 |
| S&M |
9 |
10 |
11 |
13 |
13 |
15 |
| Operations |
29 |
30 |
37 |
37 |
38 |
46 |
| Total |
104 |
108 |
129 |
136 |
153 |
178 |
Adjusted EBITDA margin and number of employees Key highlights
- Carasent have during a short period of time grown very rapidly through new expansion projects and multiple acquisitions
- We have onboarded a significant number of employees during 2022, including significant investments in management capacity
- This has affected operating margins during the last few quarters. Acquisitions has also had a dilutive impact on operating margins
- The operating cost base is highly scalable in nature and focus is now on driving efficiencies and optimizing performance
- The long-term prospects remain highly intact as Carasent is building the foundation for longterm growth
Significant investments in new expansion initiatives
- Investing into organic growth initiatives, both in existing and new markets
- Investment into new initiatives has accelerated recently and consists of Webdoc's expansion into Norway and Webdoc X
- These initiatives are currently not generating any revenues, but have potential to drive long term organic growth significantly
- Investments related to existing markets have decreased as a share of revenue during the last few years
- Capex in existing markets is related to development of new functionality and products that will drive organic growth in our existing markets
Comments Historical capex breakdown (NOKm)
Performance in line with updated guidance
Revenue guidance 2022 (excluding M&A and currency) Adj. EBITDA margin guidance 2022
▪ Performance in line with / slightly better than updated guidance provided in Q3 2022
- Revenue guidance excludes new acquisitions and currency effects reported revenues of 195.3m includes a net negative effect of currency and acquisitions of 2m
- Group adjusted EBITDA margins excluding acquisitions was 24.5% (23.7% including Confrere and HPI, which was not included in guidance)