Appendix 4D
MedAdvisor Limited
ABN 17 145 327 617
Results for Announcement to the Market
Half-year ended 31 December 2021
(Previous corresponding period: Half-year ended 31 December 2020)
Half-yearended | Half-yearended | Movement | |||
31 Dec 2021 | 31 Dec 2020 | ||||
$'000 | $'000 | % | $'000 | ||
Revenue from ordinaryactivities | 38,652 | 12,929 Up | 199% | 25,723 | |
only |
Loss from ordinaryactivitiesaftertax attributable to the members of | (7,524) | (7,765) | Down |
use | |||
M dAdvisorLimited | |||
Loss forthe half-yearattributable to the members ofMedAdvisor | (7,524) | (7,765) | Down |
Limited | |||
Half-yearended | Yearended | ||
31 Dec 2021 | 30 June 2021 | ||
personal | (cents) | (cents) | |
(3.67) | (2.13) | ||
Net tangible assetsperordinarysecurity | |||
Dividends
Not applicable
ControlGained orLost overEntities
Not applicable
Other
Additional disclosure requirements in accordance with ASX Listing Rule 4.2A are contained in this report.
-3% 241
-3% 241
This report should be read in conjunction with the annual report for the year ended 30 June 2021, investor presentation for the half-yearForended 31 December 2021 and any public announcements made by the Company during the interim reporting period in accordance with
the continuous disclosure requirements of the Corporations Act 2001 and the ASX Listing Rules.
The financial statements have been subject to a review by the auditors and the review report is included in the Interim Financial Report. The Review conclusion contains a Material Uncertainty paragraph in relation to going concern.
The information set out above and in the attached half-year Financial Report is provided to the ASX in accordance with a resolution of the directors.
Robert Read
CEO & Managing Director
25 February 2022
Camberwell, VIC
For personal use only
Appendix 4D
Half-year Report
For the six months ended 31 December 2021
MedAdvisor Limited (ASX: MDR) | ABN 17 145 327 617
For personal use only
Contents
Page | |
Directors' Report | 1 |
Auditor's Independence Declaration | 5 |
Consolidated Financial Statements | |
Consolidated Statement of Profit or Loss and other Comprehensive Income | 6 |
Consolidated Statement of Financial Position | 7 |
Consolidated Statement of Changes in Equity | 8 |
Consolidated Statement of Cash Flows | 9 |
Notes to the Consolidated Financial Statements | |
1. Basis of Preparation | 10 |
2. Critical accounting judgements, estimates and assumptions | 10 |
Key Performance | |
3. Earnings per Share | 11 |
4. Operating Segments | 12 |
5. Revenue | 13 |
6. Expenses | 14 |
Assets | |
7. Cash and Cash Equivalents | 15 |
8. Trade and Other Receivables | 15 |
9. Other Assets | 15 |
10. Property, Plant & Equipment | 16 |
11. Right-of-Use Assets | 16 |
12. Intangible Assets | 17 |
Liabilities | |
13. Trade and Other Payables | 18 |
14. Borrowings | 18 |
15. Other Liabilities | 19 |
16. Lease Liabilities | 19 |
17. Employee Benefits | 19 |
Equity | |
18. Issued Capital | 20 |
Other Disclosures | |
19. Contingent Liabilities & Contingent Assets | 20 |
20. Events after the Reporting Date | 20 |
Directors' Declaration | 21 |
Independent Auditor's Review Report | 22 |
Corporate Directory | 24 |
For personal use only
Directors' Report
The Directors present their report, together with the interim consolidated financial statements and notes for MedAdvisor Limited (the Company or MedAdvisor) and its subsidiaries (together, the Group) for the half-year ended 31 December 2021 and the Auditor's review report thereon.
Directors
The names of the Directors of MedAdvisor during or since the end of the financial half-year were:
- Chris Ridd (Non-Executive Director & Chair)
- Robert Read (Executive Director and Chief Executive Officer)
- Joshua Swinnerton (Executive Director and Founder)
- Sandra Hook (Non-Executive Director)
- Jim Xenos (Non-Executive Director)
- Lucas Merrow (Non-Executive Director - appointed 10 August 2021)
- Peter Bennetto (Non-Executive Director - resigned 26 November 2021)
- RaeAnn Grossman (Non-Executive Director - appointed 1 February 2022)
Principal Activities
The principal activities of the Group continue to be the enhancement and growth of the MedAdvisor medication and adherence platform. The platform is focused on improving health outcomes by connecting health professionals with their patients using technology and enhancing medication adherence through health programs.
Review of Results and Operations
MedAdvisor has again continued to perform strongly in the half with a focus on delivering a step change in its engagement with customers in both the US and Australia. The half saw record revenues, growth in gross profit dollars and a reducing EBITDA loss.
MedAdvisor has become the backbone of COVID-19 in pharmacy vaccinations in Australia and in the US has augmented its revenue model with digital programs being the catalyst.
Market Performance: United States of America (US)
Financial highlights
The US business continues to perform strongly, generating US$39.6 million of revenue against an Earn Out level of US$32.5 million for CY21. 1H FY22 revenue of US$23.5 million (A$32.1 million) was up 21.8% on a like-for-like basis (1H FY21: US$19.3 million), underpinned by a continued focus on increasing digital programs. As at 31 December 2021, 9 digital programs were live through the pharmacy network already activated for digital programs.
Dynamic engagement (Thriv)
As part of MedAdvisor's investment in the US business to utilise the Company's extensive knowledge and expertise and improve margins, the Dynamic Engagement model (marketed as "Thriv") has been a key focus. Thriv leverages advanced algorithms and predictive analytics to ensure the right patient gets the right message at the right time, through the most effective channel.
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Directors' Report (continued)
Thriv will be focused on adherence programs during FY22. This new offering delivers an improved revenue model and expanding margins, and is now live with the first program launched as planned in January 2022. We have good engagement with our customers and over the next 12 months expect Thriv to become MedAdvisor's largest product line.
Digitalisation
In addition to implementing Thriv, the focus in the US is to continue to digitalise the pharmacy network. At 31 December 2021, approximately 37% of the network had agreed to go digital including the recently announced Walmart deal. Once live, this represents a digital patient reach in excess of 40 million patients in the US. We are working closely with these pharmacy chain partners to make the necessary systems' configuration to facilitate digitalisation.
Payer programs
During the half MedAdvisor invested in a new line of business in the payer market, including its partnership with Cotiviti and a new eHealth partnership. A significant portion of the revenue generated relates to a program to support seniors navigate health insurance plans that allow them to keep their doctor, pharmacist, and drug coverage, whilst maintaining affordability.
MedAdvisor invested significantly in the launch of the program to ensure its success, with results in line with expectations. Included in the revenue result for the first-half was payer revenue of US$6.1 million (A$7.7 million). This revenue was at a lower initial margin impacting overall gross margin.
Moving forward, this revenue will be largely generated in the first half of the financial year, with future margins expected to be higher due to the introduction of digital enhancements and leveraging better predictive targeting.
Market Performance: Australia and Rest of World
Financial highlights
Following the appointment of a new General Manager of Sales & Marketing in June 2021, MedAdvisor invested in the sales capability and capacity of the team. This has delivered positive momentum in the growth of the network, patient sign ups and an improved health program pipeline. Revenue for the period was up 33.0% to $6.6 million (1H FY21: $5.0 million), reflecting the increased network capacity from signing Australian Pharmaceutical Industries (API) in July and returns from investment in sales capability and capacity. Gross margin was up to 82.7%, reflecting a lower cost to serve post re-platforming.
Pharmacy Network & API Contract
During the half the pharmacy network grew from approximately 3,700 stores at 30 June 2021 to over 4,000 as at 31 December 2021. This has been driven in part by the signing of a 5-year contract with API in July and the Company's investment in its sales capability and capacity.
Annual Recurring Revenue was up 30.4% to $7.7 million (1H FY21: $5.9 million). Following the price rise and introduction of the premium pricing model in June 2021, pharmacy churn has remained low at less than 3% on an annualised basis.
Patient growth has been significant and is up from 2 million at 30 June 2021, to 2.4 million as at 31 December 2021. Working with our pharmacy network and partner groups, patients per store has increased around 10% to 585, and is an area the Company will continue to work on in the second half.
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MedAdvisor Limited published this content on 24 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 February 2022 00:20:37 UTC.