AOTI (AOTI) H2 2024 TU earnings summary

Executive summary

• Revenue for 2024 expected to exceed $58.1m, up over 32% year-over-year from $43.9m in 2023.

• Sales mix diversified, with Veterans Affairs (VA) sector now less than 60% of total revenue, down from 72% in 2023.

• Expanded into new market channels including managed Medicaid, workers' compensation, long-term care, and skilled nursing facilities.

• TWO2 therapy continues to show strong clinical outcomes and cost reductions, supporting further adoption.

Financial highlights

• Adjusted EBITDA margin for 2024 expected to rise to approximately 13.8%, up from 3.9% in 2023.

• Receivables increased due to shift in sales mix and payment terms outside the VA sector.

Outlook and guidance

• Board confident in sustaining over 30% revenue growth in 2025 and the medium term.

• Expanded sales channels anticipated to drive continued high growth.