Alcidion Group (ALC) Q1 2025 earnings summary

Executive summary

• Q1 is historically a softer period, with results in line with expectations and forecasts for the quarter ended 30 September 2024.

• Q1 FY25 new total contract value sales reached $5.2M, with $2.0M revenue to be recognized in FY25.

• Signed a $4.0M, five-year contract with Hume Rural Health Alliance for Miya Precision platform deployment.

• Sold and renewal revenue for FY25 at end of Q1 stands at $28.5M, excluding North Cumbria contract.

• Significant milestones include being selected as preferred provider for North Cumbria NHS and a new five-year partnership with Hume Rural Health Alliance.

Financial highlights

• New contracted sales of AUD 5.2 million in Q1, with 88% recurring product revenue and 12% implementation services.

• Cash receipts from customers were AUD 6.3 million in Q1.

• Operating cash outflow of AUD 3.9 million, a material improvement from Q1 last year.

• Staff costs reduced to AUD 6.5 million from AUD 8.5 million year-over-year.

• Cash balance of AUD 7.9 million and no debt at quarter end.

Outlook and guidance

• Material improvement in Q2 operating cash flow expected due to increased invoicing and cost base realignment.

• Targeting EBITDA positive for FY 2025, with break-even at AUD 36 million revenue.

• Currently contracted and renewal revenue of AUD 28.5 million for FY 2025, excluding North Cumbria contract.

• Over AUD 130 million in contracted and renewal revenue to be recognized over the next five years.