Nordhealth (NORDH) Q2 2024 earnings summary

Executive summary

• Achieved 17.4% LTM organic ARR growth, with implemented ARR at €40.8M and signed ARR at €42.7M in Q2 2024; net retention at 108% and net churn at 5.1%.

• Adjusted EBITDA turned positive, reaching €1.3M in Q2 2024 (11% margin), up from -€0.2M and -2% margin in Q2 2023.

• Free cash flow improved by €3.5M LTM; cash and investments at €20.4M at June end, with no interest-bearing debt.

• ARR per share reached €0.52; LTV to CAC at 12.5; CAC to new ARR at 0.8.

• Company serves over 60,000 professionals in 30+ countries with a multi-product cloud strategy.

Financial highlights

• Q2 2024 revenue grew 33% YoY to €12.2M; recurring revenue up 21% YoY to €9.9M, with recurring share at 81%.

• Adjusted EBITDA margin improved to 11% in Q2 2024 from -2% in Q2 2023.

• Free cash flow improved by €3.5M LTM; positive free cash flow achieved for the first time since IPO.

• Net loss narrowed to -€1.6M in Q2 2024 from -€2.5M in Q2 2023.

• H1 2024 revenue grew 25% YoY to €22.4M; recurring revenue at €19.1M (85% of total), up 19% YoY.

Outlook and guidance

• Recurring revenue growth guidance maintained at 15%-20% for 2024 at constant currency.

• Dropped EBITDA minus CapEx breakeven target for Q1 2025 to prioritize growth investments, especially in Provet Cloud and EasyPractice migrations.

• Updated 2025 guidance to be provided with Q4 2024 results.