Diaceutics (DXRX) H1 2024 earnings summary

Executive summary

• Achieved 24% year-over-year revenue growth to £12.3m in H1 2024, meeting internal and market expectations and supporting 63 therapeutic brands.

• Transitioned from a data vendor to a promotional partner with the launch of PMx, securing the first commercial contract as a promotional partner for a breakthrough oncology precision medicine in the US.

• Investment cycle nearing completion, with focus shifting to profitability and cash flow generation in 2025.

• Expanded lab network, automation, and data capabilities, including rare-disease genomic lab data partners and European network growth.

• Strong commercial focus with increased sales hires, new leadership appointments, and strategic alliances such as with KPMG.

Financial highlights

• H1 2024 revenue reached £12.3m, up 24% year-over-year (28% at constant currency), with ARR at £14.2m and recurring revenue at 55%.

• Gross profit margin at 87% for H1, above management’s 85% target.

• Record order book of £27.9m, providing strong visibility for full-year revenue.

• EBITDA loss of £1.3m, in line with planned investment cycle, with profitability expected in H1 2025.

• Cash balance of £16.7m and no debt at period end.

Outlook and guidance

• Confident in achieving profitability and free cash flow generation in 2025, with continued investment in sales and marketing to drive growth.

• PMx expected to significantly increase average revenue per brand, targeting up to £2m per brand per year.

• Rare disease segment targeted to reach at least 10% of revenue by end of 2025, with potential for 20-30% longer term.

• Plans to expand beyond pharma into biotech, life sciences, and payers, deploying enhanced technologies across the DXRX platform.