MedAdvisor Limited
ACN 145 327 617
Level 2, 971 Burke Road
Camberwell Vic 3124
mymedadvisor.com/investors
ASX RELEASE (ASX: MDR)
only | Melbourne, Australia, 18 July 2022 - World-class medication management platform, | ||
use | MedAdvisor | Limited (MedAdvisor or the Company) is pleased to provide | this quarterly |
activities report outlining progress achieved over the June 2022 quarter (4Q FY22), alongside | |||
the Company's Appendix 4C Quarterly cashflow report. | |||
4Q FY22 highlights (vs 4Q FY21): | |||
• Rick Ratliff appointed MedAdvisor's new CEO & Managing Director. Based in the US, Rick | |||
personal | commences his role on 18 July 2022 | ||
○ With significant experience in health and pharmacy software in the US and | |||
trial recruitment program, with further programs expected to go live through 1Q FY23. | |||
Australia, Rick is well placed to support MedAdvisor's US growth opportunities | |||
• 4Q FY22 operating revenue up 34.1% to $17.8 million | |||
○ Australian revenue up 40.0% to $3.6 million underpinned by increased network | |||
and transaction volumes | |||
○ US revenue up 32.6% to $14.2 million driven by execution of a COVID awareness | |||
program and recommencement of the Company's largest pharmaceutical | |||
client program | |||
• 4Q FY22 receipts from operations up 7.2% to $15.4 million | |||
• FY22 operating revenue up 74.8% to $67.8 million (on FY21); up 18.6% on a like-for-like | |||
(LFL) basis (FY21 LFL operating revenue: $57.1 million) | |||
• Cash at 30 June 2022 grown to $7.6 million | |||
• Annualised Australian SaaS Revenue of $8.2 million, up 24.2% on pcp | |||
• Post-quarterend, Walmart executed the first digital program (July 2022) for a clinical | |||
For | Business activity update | ||
Group | |||
• Rick Ratliff appointed MedAdvisor's new CEO & MD based in the US, commencing 18 July | |||
2022. With over 30 years' experience, Rick has tremendous experience and a strong | |||
track record of growth in healthcare, specifically in the pharmacy technology sector in | |||
both | the US and Australia, and is a hands-on leader and | collaborator. |
MedAdvisor 4Q and FY operating revenue continue to grow strongly
June 2022 quarterly activities report
For personal use only
He has direct experience in the markets and segments in which MedAdvisor is operating, and his broad and deep relationships across the industry include many organisations that are existing and potential Adheris customers, as well as US-based health technology investors.
USA
- 4Q FY22 operating revenue of US$10.1 million (A$14.2 million), up 23.4% on constant currency pcp (4Q FY21: US$8.2 million) driven by execution of a digital COVID vaccination awareness program and recommencement of the Company's largest pharmaceutical client program.
- Pausing of the regular program for MedAdvisor's largest single product impacted revenue by US$5.3 million during six months of FY22, with the program recommencing in 4Q contracted at similar levels.
- FY22 operating revenue of US$39.0 million (A$53.6 million), up 10.2% on a constant currency like-for-like basis (FY21 LFL operating revenue: US$35.3 million).
- Successful launch of a new program in the Medicare Advantage market, known as eHealth, generated US$6 million of revenue in FY22.
- Significant efforts have been made to diversify the customer mix over the course of the last 12 months with a net 12 new brands running programs compared to the same time last year.
- As at 30 June 2022, 13 digital programs (31 March 2022: 12) were live through the pharmacy network already activated for digital programs.
- Four THRiV programs have launched to date, and 29% of the active pipeline is composed of THRiV proposals.
- John Ciccio, who has led MedAdvisor's US Adheris business since its acquisition from Syneos Health has resigned, effective 15 July 2022. John will work with MedAdvisor's new US-based CEO and Managing Director, Rick Ratliff, on transition of responsibilities over July. John successfully separated Adheris from Syneos and created a refreshed vision based on a new revenue model, THRiV and the Company wishes him well for his future endeavours. Adheris co-founders Lucas Merrow (Non-Executive Director) and Jim Rotsart (EVP Client Services) will continue to drive the US operations.
- Walmart has executed the first digital program in July 2022 for a clinical trial recruitment program, with further programs expected to go live through 1Q FY23.
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For personal use only
Australia and Rest of World
- 4Q FY22 saw a continuation of the strong performance delivered throughout FY22, with revenue up 40.0% to $3.6 million (4Q FY21: $2.6 million) underpinned by increased network capacity and transactional revenue, historically low churn and a new pricing structure.
- FY22 operating revenue was up 43.7% to $14.1 million (FY21 operating revenue: $9.8 million) reflecting investment in new products, business development initiatives, lower churn and investment in sales infrastructure. Specifically, this growth was attributable to:
- Transaction fees: COVID-19 and flu vaccination campaigns, booking reminders, confirmation and promo SMS, along with increased usage from newly installed API (Australia) and Green Cross Health (New Zealand) pharmacies
- SaaS fees: Organic growth and onboarding of new pharmacy groups including API and Green Cross Health to the platform, as well as a new premium pricing model introduced in July 2021.
- Annualised Australian SaaS Revenue was up 24.2% on pcp to $8.2 million.
- The Australian pharmacy network has shown strong growth since March and now stands at over 4,300, up 4% in 4Q FY22.
- The New Zealand roll out is progressing to plan with 204 pharmacies (58% of the Green Cross Health network) migrated to date, representing 25% of the NZ market. Pharmacy churn has reduced to 1.3% annualised.
- Transaction revenue continued to perform strongly, with the COVID-19 booster program and Rapid Antigen Test messaging. To date, more than 5 million COVID-19 vaccinations have been administered through pharmacies in the MedAdvisor network. COVID-19 vaccinations utilise the MedAdvisor PlusOne booking functionality, which contributes to transaction revenue and provides an important source of patient sign ups.
- Patient numbers at 30 June 2022 were 2.9 million (30 June 2021: 2.0 million). Feedback from customers continues to be overwhelmingly positive since MedAdvisor upgraded to its new V6 platform during 2022.
- Patient Orders are up over 50% year on year, with in-app payments up 87%, showing increasing patient engagement.
- Gross margin was 83.3% for FY22, reflecting an improvement of 23 basis points on FY21 due to a lower cost to serve post re-platforming, with cost reduction and efficiencies being realised in FY22.
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Financial update | |
• FY22 operating revenue of $67.8 million, was up 74.8% on pcp; up 18.6% on a LFL basis | |
only | (FY21 LFL operating revenue: $57.1 million) |
o This was slightly lower than previous guidance of $72 million to $74 million | |
use | revenue due to the pausing of the Company's largest product in the US for 6 |
months, impacting sales by $7.3 million (US$5.3 million). This program | |
recommenced in Q4 contracted at similar levels for CY22. | |
• Net operating cash outflow in 4Q FY22 was $(4.0) million adjusted for lease payments, | |
and $(1.7) million for FY22, with cash receipts of $15.4 million for the quarter and $75.9 | |
million for FY22 | |
o Cash receipts in 4Q FY22 totaled $10.1 million for US and $5.3 million for Australia | |
and the rest of world - a decrease on 3Q FY22 representing timing of receipts | |
and payments only. |
- Statutory net operating cash outflow from operations was $(0.2) million for FY22, a substantial turnaround from the $(12.5) million net operating cash outflow in FY21.
personal | |||||||||||||||||||||
Q4 FY22 | FY22 | ||||||||||||||||||||
Operating cash flow | MedAdvisor | MedAdvisor | Total | MedAdvisor | MedAdvisor | Total | |||||||||||||||
US | ROW | US | ROW | ||||||||||||||||||
Receipts from customers | 10.1 | 5.3 | 15.4 | 60.7 | 15.2 | 75.9 | |||||||||||||||
Payments to suppliers and | (12.5) | (6.5) | (19.0) | (55.7) | (20.4) | (76.1) | |||||||||||||||
employees | |||||||||||||||||||||
For | Net cash flow from operations | (2.4) | (1.2) | (3.6) | 5.0 | (5.2) | (0.2) | ||||||||||||||
(0.3) | (0.1) | (0.4) | (1.2) | (0.4) | (1.5) | ||||||||||||||||
Lease payments classified as | |||||||||||||||||||||
financing activities | |||||||||||||||||||||
Net cash flow from operations inc. | (2.7) | (1.3) | (4.0) | 3.8 | (5.5) | (1.7) | |||||||||||||||
lease payments | |||||||||||||||||||||
- Cash at 30 June 2022 was $7.6 million (30 June 2021: $7.2 million).
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For personal use only
Related party transactions
During 4Q FY22, the Company made the following payments to related parties:
- $35,836 to a related party that provides data services to the Company in the ordinary course of business; and
- $193,851 in fees and executive remuneration paid to Directors.
- ENDS -
This document has been authorised for release by Robert Read, Chief Executive Officer & Managing Director.
For more information please contact: | |
Company | Investors |
Annabelle Grant | Ronn Bechler |
Acting Chief Financial Officer | ronn.bechler@marketeye.com.au |
corporate@medadvisor.com.au | +61 400 009 774 |
+61 3 9095 3036 | |
Media | |
Tristan Everett | |
tristan.everett@marketeye.com.au | |
+61 403 789 096 |
About MedAdvisor
MedAdvisor is a world-class medication management platform that empowers patients to more simply manage their medication and improve adherence. MedAdvisor's highly automated and intuitive software system connects patients to tools and education materials from their preferred pharmacy. MedAdvisor works with 25,000 pharmacies in the US to deliver programs to help patients take their medication safely and effectively. In Australia, MedAdvisor has connected over 2.6 million patients through more than 70% of Australian pharmacies. MedAdvisor has partnered with Cotiviti in the US and is on track to become one of the largest players in the global digital adherence market. In 2018 and 2020, MedAdvisor was recognised in the AFR Fast 100. Visit: mymedadvisor.com/investors
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MedAdvisor Limited published this content on 18 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 July 2022 06:23:03 UTC.