CompuGroup Medical (COP) CMD 2024 summary

Strategic vision and digital transformation

• Focus on creating the future of e-health through digitization, AI, and integrated solutions across the patient journey.

• Significant investment in AI to enhance product innovation, R&D efficiency, and service support, with ChatCGM and other AI-driven tools already in use.

• Transition from local silos to a unified European product house, streamlining operations and accelerating innovation.

• Emphasis on supporting healthcare professionals with end-to-end digital solutions, from appointment booking to diagnostics and follow-up.

• Mission to leverage data analytics, communication, and medical knowledge for individualized medicine and improved patient outcomes.

Financial performance and guidance

• Achieved €1,208m in LTM revenues as of June 2023, with a 64% recurring revenue share and 13% year-over-year growth.

• Organic revenue growth sustainably elevated to ~5% per annum, with adjusted EBITDA margin stabilizing at 22%.

• Free cash flow ramping up, reaching €82.43m in H1 2023, and leverage at 2.7x.

• On track to exceed FY 2023 guidance and mid-term ambitions: >5% organic revenue CAGR, >70% recurring revenue share, and ~27% adjusted EBITDA margin by 2025.

• Moving out of the investment phase, with R&D intensity decreasing as a percentage of revenue.

Business segment highlights and growth drivers

• Ambulatory Information Systems (AIS) DACH: 78% recurring revenue, strong ecosystem connectivity, and regulatory tailwinds driving digitization.

• AIS Europe: 74% recurring revenue, strong market positions in 10 countries, and successful rollout of Ségur digitization in France.

• Hospital Information Systems (HIS): 22% revenue CAGR (2017-22), 69% recurring revenue, and order intake target raised to €140m–€160m.

• US segment: Revenues tripled since 2019, 80% recurring revenue, 6% organic growth in H1 2023, and 6–9% CAGR expected through 2025.

• Data business: ~25% revenue CAGR (H1 2019–H1 2023), >80% recurring revenue, and expansion into AI-powered analytics and real-world evidence projects.