PharmX Technologies (PHX) H2 2024 earnings summary

Executive summary

• Revenue grew 9% year-over-year to $6.7m, with underlying EBITDA up 17% and NPAT up 34% compared to FY23.

• Achieved transformative year with divestment of legacy pharmacy software, resolution of a major legal case, and continued growth in Gateway and Marketplace solutions.

• Enhanced leadership team with new CEO and key executive appointments to drive strategic objectives.

• Platform growth was strong, with Marketplace up 20% month-over-month and Gateway up 4% year-over-year.

• Cash position increased 2% year-over-year, with a closing balance of $13.1m at June 2024 and $4m forecasted by December 2024.

Financial highlights

• Statutory revenue reached $8.09m, up 32% year-over-year; underlying revenue (excluding legal case) grew 9% to $6.65m.

• Underlying EBITDA margin was 23%, with underlying EBITDA at $1.8m and underlying NPAT at $0.5m.

• Statutory NPAT was a loss of $1.8m, impacted by legal costs and the loss on disposal of discontinued operations.

• Operating cash flow (excluding net R&D tax incentive) rose 97% to $2.0m; cash on hand at year-end was $13.1m, up 2%.

• After legal repayments, cash reserves are forecast to exceed $4m by end of 2024.

Outlook and guidance

• Strategy for FY25 focuses on expanding supplier numbers, platform adoption, and analytics capabilities.

• Positioned for future growth with optimism for FY25, supported by strengthened leadership and expanded service offerings.

• Emphasis on prudent cost controls, funding investments from cashflow, and maintaining system stability and security.

• Market conditions are favorable, with population growth, increased digitization, and regulatory changes supporting industry expansion.

• Financial resilience enables continued investment in innovation and business expansion.