Nightingale Health (HEALTH) H2 2024 earnings summary

Executive summary

• Achieved major business targets and global milestones, including international commercial contracts, white label deals, and expanded partnerships in Finland, US, UK, Japan, and Singapore, with regulatory approvals driving adoption.

• Launched large-scale chronic disease risk assessment tools and completed analysis of 500,000 UK Biobank samples, creating the world's largest blood biomarker database.

• Acquired Welltus Inc. in Japan and all IP assets of the Velvet™ blood collection device, strengthening remote health and self-collection capabilities.

• Technology now in nationwide use in Finland, with 30% of the workforce covered through occupational health partnerships and over 50,000 risk assessments performed.

• Updated strategy to focus on B2B and B2G markets, discontinuing direct-to-consumer business lines.

Financial highlights

• Full-year revenue reached €4.36M, a 4% year-over-year increase and the highest to date; H2 revenue was €2.64M, up from €1.94M.

• EBITDA improved to €-10.43M (from €-11.84M YoY); net income at €-17.46M (from €-18.08M); EPS was €-0.29.

• Net cash at year-end was €63.4M, with liquid funds totaling €66.04M and no debt.

• Equity ratio remained strong at 92%; net debt to equity ratio at -76%.

• Cash and cash equivalents at year-end were €43.56M.

Outlook and guidance

• Primary focus is on winning new large international healthcare deals, increasing revenue, and improving adjusted EBITDA.

• Mid-term goals: agreements to analyze 2M samples annually in Europe and 10M in the US/Asia, and achieve positive EBITDA.

• Long-term goals: analyze 100M blood samples and generate €500M annual revenue.

• Commercial launch in Singapore expected by year-end/Q4 2024.

• Current financial runway deemed sufficient for midterm targets.