Adheris Health (AHE) H2 2024 earnings summary

Executive summary

• Achieved inaugural full-year profit with record revenue of $122.1M, up 24.6% year-over-year, and positive EBITDA and NPAT for the first time, marking a significant turnaround from prior losses.

• Strong growth in both US and Australia, driven by THRIV platform, improved fee structures, and robust segment performance.

• Launched strategic investments in technology, Shared Services, and scalable patient engagement solutions, including Transformation 360° to support future growth.

• Finalised a 5-year growth strategy, targeting over $250M annual revenue and minimum 20% EBITDA margins by FY28.

• Over 200M patients reached, 37,000+ locations, and partnerships with top pharmacy chains and pharma companies.

Financial highlights

• FY24 revenue reached $122.1M, a 24.6% increase over FY23, with record performance in both ANZ and US segments.

• Gross profit rose 24.9% to $74.2M, with gross margin improving to 60.8%.

• Adjusted EBITDA exceeded $7.0M, a $10.1M year-over-year improvement, and NPAT swung to a $0.8M profit from an $11.3M loss.

• Cash on hand at 30 June 2024 was $15.6M, supporting future investments.

• Gross cash position improved by $1.4M to $15.6M.

Outlook and guidance

• Anticipates continued growth in FY25, driven by adoption of omnichannel solutions, new service offerings, and the launch of Transformation 360°.

• 5-year plan targets $250M+ revenue and >20% EBITDA margins, with 20-25% CAGR by FY28.

• Focus on AI-enabled platform transformation, data segmentation, and expanded scope of practice programs.