DocMorris (DOCM) H1 2024 earnings summary

Executive summary

• Achieved break-even in the base business (excluding eRx) in H1 2024, driven by CHF 14 million in cost improvements and efficiency gains.

• CardLink launch in April 2024 accelerated eRx revenue, reversed earlier Rx sales decline, and quadrupled new Rx customer acquisition year-over-year in July.

• TeleClinic doubled sales year-over-year, contributed positive EBITDA, and is expected to exceed CHF 10 million in revenue for 2024.

• Cash position at CHF 195 million at June 2024, with an additional CHF 26 million from property sale in August.

• Maintained market leadership in telemedicine and strengthened balance sheet through property and business sales.

Financial highlights

• External sales in local currency increased by 8.4% year-over-year, reaching CHF 530.1 million in H1 2024.

• Gross margin stable at 21.6%; gross profit and adjusted EBITDA improved year-over-year.

• Personnel expenses reduced by CHF 8 million; other operating income/expenses improved by CHF 2 million.

• Net loss from continuing operations reduced to CHF 37.9 million from CHF 58.2 million year-over-year.

• Free cash flow positive, with net working capital improved by CHF 20 million since December 2023.

Outlook and guidance

• 2024 external revenue expected to grow 5–10%, reflecting eRx adoption and CardLink timing.

• Adjusted EBITDA guidance for 2024 set at around CHF -50 million, due to increased investment in eRx customer acquisition.

• CapEx for 2024 projected at around CHF 30 million.

• Mid- to long-term adjusted EBITDA margin target of 8% remains unchanged.

• Free cash flow breakeven expected 12–18 months after EBITDA breakeven.