Nordhealth (NORDH) Q3 2024 earnings summary

Executive summary

• Achieved 23.7% organic ARR growth year-over-year in Q3 2024, with implemented ARR at EUR 41.8 million and signed ARR at EUR 43.8 million.

• Net retention rate at 115% and churn at 6.2% over the last 12 months, dropping to 4% excluding one-time events.

• Annualized CAGR of 56% over the last six years, with no acquisitions in 2023 or 2024 to date.

• Strong cash position with EUR 20 million in cash and no interest-bearing debt as of September 30, 2024.

• Recurring revenue grew 21.7% YTD 2024 vs. YTD 2023; EBITDA-CAPEX positive in Q2 and Q3 2024.

Financial highlights

• Total Q3 revenues grew 26.9% year-over-year to EUR 11.2 million; recurring revenues up 25.9% to EUR 10.4 million, maintaining a 93% share of total revenues.

• Adjusted EBITDA improved to EUR 1.4 million (12.5% margin) in Q3 2024 from EUR 0.7 million (7.8%) in Q3 2023.

• Free cash flow improved by EUR 1.6 million year-over-year, with cash equivalents and investments totaling EUR 20 million at quarter-end.

• Adjusted EBITDA minus CapEx was positive for the second consecutive quarter.

• Net loss of EUR 0.8 million in Q3 2024, improved from EUR 1.9 million loss in Q3 2023.

Outlook and guidance

• Recurring revenue growth guidance for 2024 (at constant currency) raised from 15%-20% to 18%-23%.

• Dropped EBITDA minus CapEx breakeven by Q1 2025 guidance, having already achieved it in Q2 and Q3 2024.

• 2025 guidance to be provided with Q4 results.