Medadvisor [ASX:MDR], Australian developer of healthcare software for patients, announced its return back into profit in its half-year 2023 results announcement — declaring profits had surged 161%.
Investors were tipping the MDR share price as high as 8% earlier this morning, which evened out to a more moderate 2% increase as shareholders recalibrated.
MDR was worth 27 cents by early afternoon, still up 12% over the past week.
Over the past 52 weeks, MDR’s share value slipped 14%, and it currently lags both in its sector and the S&P 200:
Source: TradingView
Medadvisor makes a comeback with higher profit
Medadvisor posted a 161% surge in profit for 1H 2023 — $12.12 million — taking the group out of the $7.52 million loss to $4.59 in profit.
This result was helped along by an uptick of 66% in revenue, an increase of $25.42 million on revenue gained the same period in 2021.
With record operating revenue of $64.1 million (up from $38.65 million last year), the medical software group managed a 110.1% increase in gross profit.
Operating revenue was made up of $54.9 million taken from sales in the US, an increase of 71.1% — underpinned by program expansion and higher pharmacy participation — and $9.2 million earned at home in Australia another increase of 40.3%.
Australian revenue was supported by GuildLink, delivering an immediate uplift of $2.4 million — not including underlying revenue.
Gross profit came to $38.4 million, from $18.3 million earned in the first half of FY22, and the gross margin improved 12.7 ppts to 60% (up on 47.3% in FY22).
Medadvisor reported $8.6 million in EBITDA — up from $4.5 million — and NPAT of $4.7 million, up on the $6.7 million earned the same time the previous year.
Source: MDR
The group noted a capital position of $32.7 million in cash in December, a net increase of $27.3 million.
The balance sheet was supported by a fully underwritten capital raise in August, which raised $14.6 million (before costs).
MDR said the funds will support an acceleration of growth initiatives and cover acquisition costs for GuildLink.
Medadvisor CEO Rick Ratliff said:
‘Record revenue of $64.1 million was supported by our ability to significantly grow our global pharmacy network and US digital reach.
‘In the US, we grew revenue by 71% to $54.9 million. This was driven by the expansion of our vaccine programs combined with increased pharmacy participation and more brands executing programs on the US digital platform.
‘Australian revenue grew 40% to $9.2 million with GuildLink contributing $2.4 million over five months. We aim to complete the integration in June this year and are reviewing Australian operations to reduce costs to support a more sustainable base.’
Ratliff said MDR’s growth rate is likely to moderate in the second half as the US exits the winter period, the group’s seasonal peak.
The company will focus on increasing patient reach in Australia and rollouts in New Zealand as it pushes for profitability in the remaining months of FY23.
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Regards,
Mahlia Stewart,
For The Daily Reckoning Australia
