Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice.
But if we do run out of time there's any questions I've been able unable to answer, please, send it through to investor@alcidion.com, and we'll seek to answer that as soon as possible. Just as a reminder to everyone, the webcast is being recorded. And it will be available later on today on our website for those who are keen to see a recording. Into the body of the presentation. As you'll have seen from the release, the morning, the q three has continued to build on the momentum that we've established over the last few quarters. Of particular note and, know, particularly to those on the call who have followed us for some time was the announcement that we signed the North Cumbria deal to deploy Maya Precision, As Their Integrated Patient, As Sorry. As Their Enterprise, Electronic Patient Record Platform. And I'll Touch On The Details Of That A Little Bit Further In A Moment With Those Who Are Not Across Those Details. But, Really, North Cumbria is a significant validation for Alcidion and a well deserved, reward, I must say, for the hard work that's been put in by the the Alcidion team across all, areas of business.
17m 41s
In both delivering on other customer deployments to ensure that we had, you know, key referenceability that allows us to win very, very significant deals of this nature that are highly competitive. Terms of the tender process we go through. Also, during the quarter, we're able to secure our first contract in Wales with the Halda Health Board, and we see, this we see the opportunity for several other are several other opportunities we see potential for. In Wales of a significant size, and of a similar size is what I meant sorry, in respect of the opportunities that Wales presents as a new country for us. And, you know, that will happen, hopefully, over the course of the next twelve to eighteen months. During the quarter, we delivered strong operating cash flow and see ourselves very well positioned heading into the q the fourth quarter, which is historically our strongest period for cash collections. Following the continued strong trading that we have had in respect of, new opportunities and the size of all those opportunities, we have upgraded our EBITDA guidance for FY '25. And expect to deliver EBITDA in excess of 3,000,000 is a record result for the business.
19m 2s
I'll just unpack the financial highlights in a little bit more detail for you. During the quarter, we signed new sales with a combined total contract value of $48,800,000 for the quarter, which with approximately 11,500,000.0 of that able to be recognized as revenue in f y twenty five. And the rest being recognized in, subsequent years as recurring revenue. This represents our largest quarter for new TCV sales ever. And further builds upon the $13,100,000 of new TCV that we signed in the second quarter. Approximately 91% of those new contracted sales in q three relate to recurring product revenue, with the balance related to services, almost entirely product implementation services. At the end of q three, we had about 40,200,000.0 of contracted revenue able to be recognized. Through the end of the financial year. Q3 cash receipts for customers were $13,100,000 for the quarter reflecting our strongest Q3 for cash receipts. Important to note that that does not include any contribution from North Cumbria, which we expect to come in as cash receipts in the fourth quarter. We delivered a positive operating cash flow for the quarter of $2,500,000 a material improvement on the same period last which was negative 1,400,000.0.
20m 30s
At the March 31, we have 10,200,000.0 of cash and no debt. We've already covered a lot of this information, in the highlights on the prior slide, but it's worthwhile just, pointing out a couple of key areas on the left hand side graph. Which is quarterly new sales, you can see a significant increase in new during the quarter predominantly driven by the signing the North Cumbria contract as reflected in that bar. And then on the right hand side, the clear seasonality in our cash receipts and the material uplift we typically see in the second half of the year. We expect this trend to continue as we enter into the fourth quarter. Particularly as we end in Q3 with a very strong debt as ledger of 17,700,000.0 and typically, we would collect the majority of that in a quarter. Just a a few of the key business, highlights for the quarter I'd like to detail in a little bit more. We mentioned I mentioned at the start that we signed a couple of very key contracts, but we also signed renewed several existing PCS PaaS customers throughout this quarter as well. In February, we announced our first customer in Wales, which was Hal Dhar University Health Board.
21m 48s
And they'll be using flow observations and SmartPay modules from the Myra Precision suite. The contract was awarded after a competitive tender process. And, again, this provides that market validation of our patient flow flow solution, a product which we believe to be a clear lead across The UK and ANZ in respect of managing patient flow, which, as I've talked about before, is a is continues to be a very, very challenging problem. For, customers really, the world over in respect of that challenge around more demand for our health care services and beds than we have capacity to deliver. Wales itself presents an attractive market opportunity for contracts of similar size. Being in that 4 and a half to 5, to $6,000,000 range over five years. And as we deepen our referenceability in this new landscape in Wales, we hope to see, more interest in the MyaPrecision platform. In the months and years ahead. Shortly after Halda, we signed the very significant contract for North Cumbria just to reiterate and remind everybody, 37 and a half million over ten years with opportunity to extend further modules into that customer. So they bought the majority of our modules, but have opportunities, for example, to take SmartPage, and also have opportunities to take some of our partner modules, which we, you we hope to see happening through into the next financial year.
23m 26s
Following the contract signing, the implementation process at Northumbria has already started. And, you know, given the modular of the way in which we roll it out, which is a key feature of the Myer offering, We will expect North Cumbria to start to see tangible benefits quickly, and we'll be able to report on those as we have been able to report during the last quarter on some of the very significant benefits that South Tees is seeing an eye hope everyone's had the opportunity to read some of the exciting feedback we're getting from South Tees as they continue to roll out the Myra Precision Platform More Deeply Across All Their Clinical Areas. As I Touched On, We Also Renewed Several Of Our PCS PaaS Customers In The UK, Again, it continues just to reiterate the importance and the value of recurring revenue, the long term nature of the contracts, and the continued renewal of contracts that we see, year on year. As many of you will have last week, we announced the appointment of professor Andrew Way as a nonexecutive director. He will be replacing Victoria Weeks, who will step down around the midyear, and I thank Victoria very much for her service.
24m 40s
She will still be with us for a few months, but as the chair of the audit and risk committee, Victoria has overseen continued, depth and and quality in the governance activities across LCDN, and we're very grateful for the input that she has had over the last three years. Andrew is a highly accomplished chief executive. Most recently as the CEO of Alfred Health. Which was a position he held for fifteen years. And during that time, you saw, incredible, depth of deployment of digital capabilities into to the Alfred, including, the Mya Precision So It's Fabulous To Have Him On Board With Firsthand Knowledge And Experience Of The Day To Day Impact That Our Solutions Can Have. On Productivity. Prior To Moving To Australia, Andrew also worked in The UK where he had an extensive career in the NHS, most recently before he came to Australia as the CEO of Royal Free. NHS Trust. So as we continue, you know, to work in that market, it's gonna be fantastic to have Andrew's experience on the board across not only Australia, but also his experience. In The UK. Just turning now to outlook. As I said at the end of we have approximately $40,200,000 in contracted and scheduled renewal revenue able to be recognized in FY 2025.
26m 5s
Historically, Q4 is our highest quarter for customer receipts as I, said at the outset, and we'd expect that trend to continue. It's underpinned by a debtor ledger at the end of q three of 17,700,000.0, and that includes that does include the invoicing for North Cumbria, which we would expect to come through in the fourth quarter. That's for the phase one deployment and payment. Following some of these strong contract wins we've had for q two and q three, we've upgraded upgraded our guidance, from expecting to be EBITDA positive to expecting that to be at least 3,000,000 and a full year cash flow positive result as well. We're pleased with the continued interest in our solution across all of our markets. And we continue to see building, the pipeline building as opportunities in those markets, enter into procurement phases. Or they enter into engagement with us. Many of you know that the NHS has seen a lot of political activity in the last month, and we're continuing to keep an eye on that. But we even despite that decision for NHS England to be disbanded, which is going to take a couple of years, it's by 2027.
27m 20s
And keeping in note keeping in mind that most of the staff from NHS England will actually transition over to the Department of Health and Social Care. Despite all of that activity, we are continuing to see opportunities come to market in England, particularly around that electronic patient record or EPR program, which still has a number of trusts to go to market. So that is still happening. So I remain optimistic about the opportunity for Alcidion in that market, both for those APR opportunities, but also, I think, you know, importantly, turning our mind to the opportunity for optimization and enhancing the value of digital investments that they've made in England. You know, it is a world where reduced staff in England and increased expectations on productivity are going to require further deployment of digital solutions to actually, you know, transition that from a, you know, a resource staff heavy environment into one that is producing greater productivity for less people. So, you know, I I see the opportunity increasing However, we are waiting to see what the ten year plan indicates in terms of where those priority areas are. Alcidion with a platform, digital health platform that is really focused on the use of data to support increasing efficiency in health care is really well positioned as we, you know, as we look to, those new opportunities that'll be outlined for England from that ten year plan.
28m 54s
In the coming months. Before I open up to questions, I also just wanted to sort of you know, touch on the current you know, wider macro environment. You know, one of the interesting areas that's highlighted are as a result of sort of recent economic and tariff policies in The US US is that a large number of those health tech contracts that we see awarded, are actually, yeah, large US health tech companies in The UK market and some of the other markets that we're you know, interested in looking at. And we are hearing from several customers an increasing willingness to look at solutions outside of The US health tech market. And, you know, it may be that I'll sit in could be a benefactor of that shift in in sentiment over time. Obviously, you know, we'll this will take some time to play out and unlikely to. Change existing procurements that are in play, but it could be a tailwind for Alcidion as as we look to the future opportunities. I'm going to stop there and provide an opportunity for questions. Matt is gonna join us and let us know if we have received any questions to date.
30m 2s
Thank you, Kate. Yeah, we have received some questions, a couple before the call and a couple during the call. We've had a number of questions on the impact of NHS England, which I believe Kate has answered in the call. So I'll move on to the next question we got before the meeting or before the call. Sorry. So we would like could you provide clarification for cash receipts expectations in Q4? Will this exceed FY 2023 and FY 2024? So I think I will take this question, Kate. So q four has always been, our strongest quarter for receipts. Receipts were 18,600,000.0 in Q4 last year. And as Kate touched on just earlier, we end the March with $17,700,000 on the debt ledger. With that in mind, we expect Q4 will be a strong or stronger in the current year. So some questions that have come in. And there's there's a few that are very similar. So the first one is in q three f y twenty four, you noted bids on $200 plus million in EPR tenders, including NCIC, with preferred vendors to be named by end of '24. Have preferred vendors been named now? Can you provide an update on these bids?
31m 35s
I am not sure that I indicated that it'll be announced by the end of twenty twenty four, although I stand corrected if I did. They certainly we had, as a talked about on these calls before, many of those tenders for APR bids have been had had been delayed, are moving now. Obviously, we won North Cumbria. There are other bids still going through their process. So, you know, I'm I'm comfortable with where we're at the moment. All bids, once they're decided sorry, are actually you know, notified to the market in The UK. And I have pretty well kept people up to up to date on this on these calls as to how we've been progressing with those.
32m 24s
Thank you, Kate. The next question is for new TCV sales of $48,800,000 North Cumbria was 37,500,000.0 fuel was 5.5, and the balance was 5.8. What did the balance of 5.8 comprise of? Were they all Silverlink renewals? Or were there other contracts as well?
32m 45s
There would have been other contract renewals, other smaller contracts, other, you know, contracts that are not of a size that get announced to the market. So I can't tell you off top of my head how many total individual contracts made that up. PCS made up a large part of it, but there were also patient track contract renewals, SmartPage contract renewals. This is a pretty heavy time of year. For renewals in The UK in particular.
33m 14s
Thank you, Kate. The next question, is the uplift in contracted revenue so to the 40,200,000.0 versus what was reported at the h one results attributable to more North Cumbria revenue recognition or other new contracts?
33m 30s
Mostly other new contracts that have come through during that time. I think we're still pretty well in line with what we expected to. Recognize from North Cumbria.
33m 40s
You, Kate. Another question. Congratulations on this result. Appreciate it if you could discuss the following Recurring organic revenue growth projections, I. E, patient number growth or CPI linked fees, and the second part of that question is around the pipeline. I'll I'll ask that separately.
34m 3s
I think that question is saying, you know, what is it what is it that drives any increase in the contracted recurring revenue. And for us, that the majority of that is CPI. So there's generally annual CPI increases across our recurring contracts, generally built into the contract. However, if the customer increases the scope so they might want to buy additional modules or they may extend the beds that are covered by those modules and that is also a trigger. For increasing the recurring revenue. Thank you, Kate. There's a question here, which I think I'll probably take. Can you comment on the FX benefit on revenue? And balance sheet items and its contribution to the FY 'twenty five earnings upgrade? So we know, we operate a business out of The UK. We have sterling bank accounts in in The UK course, and we receive and remit money in The UK in sterling. So at like, while we do have an exposure, the upside on the revenue is offset by the downside on the costs largely. Similarly in the balance sheet, it's kind of naturally hedged with your debtors and creditors offsetting each other. So in in terms of the question, how much has that contributed to the upgrade?
35m 23s
It's very little is the answer. So most of the other questions are around a pipeline. I'll ask this one first quickly, though. That's a short one. When do we expect Huel data to go live?
35m 41s
I think it is around August, September.
35m 47s
Definitely before Christmas, isn't it?
35m 49s
Yes. Definitely.
35m 51s
Being an Australian company, do you think this helps secure Australian contracts?
35m 58s
Unfortunately, no. I do not. It is very competitive, and you know, they that there is nothing factored in at the moment. However, I am starting to see quite a change post the tariff situation on the macro at a macro level around sentiment on this in this particular, area. So we may see some impact of it going forward, but, historically, no. I have not.
36m 26s
And before I get to the pipeline question, has there been any churn contract losses in the last quarter? And what have you learned from those losses?
36m 36s
Look. Typically, have very low churn from our customers' perspective. Although, I think if not last quarter, then it must must it was fairly recent that Derby and Burton, people will know, chose an EPR provider that wasn't us, and they were using our patient track solution. So they have, they will be moving to the new EPR providers patient track equivalent type module. And I think they haven't done it already, they're they're gonna be doing that in the next couple of months. It's a small amount overall, and and so there is that will happen you know, in a very you know, rarely happens, but it's worth pointing out that it does. It's not never, but it's fairly rare.
37m 21s
Thank you, Kate. So we have three more that are open. They're all largely related to the sales pipeline, but I'll just throw this one in there. So if you could kinda comment on on the pipeline and where we're at with that. And are you more excited about Australian or UK op opportunities at this stage?
37m 42s
Well, I mean, I'm excited about them all, to be fairly I don't probably favor any of anyone over the other. But, you know, we are really well placed We have got some incredibly strong validation out of our deployments in The UK and in Australia that our customers are happy to go into print about. So that helps us as we continue to build the Alcidion presence, the value of our software, and demonstrate that we can do that quickly because we do it in this modular manner. So, you know, the pipeline what I can say to you, because I report on this fairly regularly, the pipeline is larger today than it was the last time I stood in front of you. The pipeline is made up of a range of opportunities, including EPR opportunities, flow opportunities, virtual care opportunities, smart page opportunities, opportunities that come from existing customers and from new market op new customers. They that pipeline that I'm referring to all refers pretty well to Australia and New Zealand and The UK. We will continue to look at opportunities potentially to move into new markets, and certainly, I think that'll be a feature of FY '26 to to focus on some new markets.
39m 2s
But right now, the pipeline is healthy. The opportunity that is presented to us is there, and we're looking forward to to prosecuting that in the next six to twelve months.
39m 15s
You, Kate. Next, looks like all the questions that we have for today. Thank you very much everyone for your time. I'd like to thank your the the board and the staff of Alcidion for their continued work, and, of course, to thank you as shareholders for your continued support. Look forward to keeping updated on a regular basis on our progress. Thanks.
Key Insights
Alcidion reported its strongest quarter ever for new total contract value (TCV) sales, signing $48.8 million in new contracts in Q3, including a significant $37.5 million, 10-year deal with North Cumbria for the Maya Precision platform.
The company delivered strong operating cash flow of $2.5 million in Q3 (a material improvement from negative $1.4 million in the prior year), with Q3 cash receipts of $13.1 million and no debt as of March 31, 2024.
Alcidion upgraded its FY25 EBITDA guidance, now expecting EBITDA in excess of $3 million and a full-year cash flow positive result, citing strong contract wins and a robust sales pipeline.
Recurring revenue remains a key focus, with approximately 91% of new Q3 contracted sales relating to recurring product revenue; at the end of Q3, $40.2 million in contracted and scheduled renewal revenue is able to be recognized in FY25.
The sales pipeline is larger than previously reported, spanning Australia, New Zealand, and the UK, with continued optimism for further contract wins—especially as macro trends may favor non-US health tech providers and as digital health adoption accelerates in key markets.
