Alcidion Group (ALC) H2 2024 earnings summary

Executive summary

• FY 2024 revenue was AUD 37.1 million, down 8% year-over-year, with recurring revenue at 74% and gross margin of 86.1%.

• Underlying EBITDA loss for FY 2024 was AUD 3.4 million, improving to AUD 600,000 in H2 due to cost-saving initiatives.

• Major new and extended contracts included North Cumbria NHS Trust (10-year, AUD 30–40 million), South Tees NHS Trust (10-year, AUD 23–54 million extension), and Hume Rural Health Alliance (AUD 4 million TCV).

• Annualised cost savings of AUD 6.4 million achieved, with Q4 staff costs reduced to AUD 6.2–6.3 million.

• Cash balance at year-end was AUD 11.8 million, with no debt.

Financial highlights

• Full year revenue of AUD 37.1 million, down AUD 3.3 million (8%) from the prior year.

• Annual recurring revenue increased by AUD 1.5 million (6%) year-over-year, with product revenue at AUD 26.2 million.

• Gross margin remained steady at 86.1%, expected to rise to approximately 90% in FY25.

• Positive operating cash flow of AUD 4.3 million in H2, reversing an AUD 11.4 million outflow in H1.

• Recurring product revenue comprised 74% of FY24 revenue.

Outlook and guidance

• Entering FY 2025 with a stronger balance sheet and improved working capital.

• AUD 28 million of contracted and renewal revenue expected to be recognized in FY 2025, excluding potential material revenue from North Cumbria.

• Targeting EBITDA breakeven at approximately AUD 36 million in revenue, with confidence in achieving EBITDA positive results in FY 2025.

• Long-term contracted and renewal revenue of around AUD 130 million through FY 2029.

• Increased procurement activity and market opportunities expected in H1 FY25.