Diaceutics (DXRX) H2 2024 earnings summary

Executive summary

• Achieved a breakout year in 2024, completing a two-year investment cycle and transitioning to a high recurring revenue model with significant ARR growth, driven by data, technology, and AI-enabled solutions.

• Expanded U.S. operations with a new headquarters, increased team size to 199, and hired senior commercial talent, with the U.S. now accounting for about 92% of revenue.

• Secured three new multi-year enterprise-wide engagements, increasing total to seven, and launched the PMx solution, boosting average revenue per brand.

• Now working with 18 of the top 20 global pharma companies, supporting 85 therapeutic brands, up 23% year-over-year.

• DXRX Signal identified over 600,000 patients in the US in 2024, demonstrating strong data-driven impact.

Financial highlights

• Revenue rose to £32.2 million in 2024, up 39% year-over-year on a constant currency basis, with a three-year CAGR of 32%.

• Annual recurring revenue (ARR) increased 23% to £16.8 million; net revenue retention (NRR) published at 109%.

• Gross margin reached 88%, up from 83% in 2023, driven by a higher mix of data-related sales.

• Adjusted EBITDA grew 50% to GBP 4.2 million, with EBITDA margin rising to 13%; net loss after tax was GBP 1.7 million, similar to 2023.

• Cash at year-end was GBP 12.7 million, with no debt, and cash increased to GBP 13.7 million by April 2025.

Outlook and guidance

• Trading in the first four months of 2025 showed revenue up 35% year-over-year to GBP 8.4 million, and TCV up 93% to GBP 18.7 million.

• Order book as of April 2025 was GBP 35 million, up from GBP 24.9 million at year-end 2024, providing 44-45% visibility on 2025 revenue guidance of around GBP 40 million.

• Expecting a shift to profitability and positive cash flow in 2025, with EBITDA margin targeted in the high teens.

• Confident in delivering on guidance despite macro uncertainties, with a focus on cost management and customer engagement.

• Growing ARR and order book provide strong future revenue visibility.