Induct (INDCT) Q4 2024 earnings summary

Executive summary

• EBITDA rose to NOK 2.1 million in Q4 2024, up 66.4% year-over-year, with YTD EBITDA at NOK 9 million, reflecting cost reductions and business optimization.

• Operating costs dropped to NOK 2.6 million in Q4 2024 from NOK 4.2 million in Q4 2023, with full impact of streamlining expected in 2025.

• Partnership with AstraZeneca enables full implementation of the asthma clinical pathway in Portsmouth, with plans for NHS England-wide rollout.

• Tilskuddsportalen expansion to Sweden is underway, with ARR potential expected to surpass Norway's.

Financial highlights

• Platform revenue in Q4 2024 was NOK 3.7 million, down 18.5% year-over-year due to product focus shift; consulting revenue increased to NOK 0.2 million.

• Gross margin for platform remained high at 94.6% in Q4 2024; consulting gross margin improved to 20.9%.

• Net profit after tax in Q4 2024 was negative NOK 3.0 million, similar to Q4 2023.

• Booked equity at end of Q4 2024 was NOK 31.7 million, up from NOK 22.2 million in Q4 2023.

• Interest-bearing debt at Q4 2024 was NOK 14.5 million, mainly from convertible loans and a bank loan.

Outlook and guidance

• Q1 2025 forecast: EBITDA of NOK +3 million, higher revenues than Q4 2024, cash positive operations, and positive net profit after tax.

• Annual recurring revenues from full NHS England asthma pathway rollout estimated at 70-80 MNOK, with gross margin above 95%.

• Ambition to expand digital clinical pathways to other diseases with similar or greater global revenue potential.