Medhelp Care (MEDHLP) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were 20,116 TSEK, down 2.0% year-over-year, mainly due to the loss of large customers and reduced short-term sick leave.

• Gross profit increased to 19,978 TSEK with a record gross margin of 88.0%, driven by customer migration to the AI health platform and lower production costs.

• EBITDA rose to 2,338 TSEK (11.6% margin), up from 1,451 TSEK (7.1%) in Q2 2023.

• CARR (Contracted Annual Recurring Revenues) increased 3.8% year-over-year to 83,682 TSEK.

• 65 new customers were added in H1 2024, including a major contract with Skandia for 2,200 employees starting November 2024.

Financial highlights

• Q2 2024 net sales: 20,116 TSEK (down 2.0% year-over-year); H1 2024: 41,305 TSEK (down 1.8%).

• Gross profit Q2: 19,978 TSEK (up from 18,862 TSEK); gross margin 88.0% (up from 83.8%).

• EBITDA Q2: 2,338 TSEK (up from 1,451 TSEK); EBITDA margin 11.6% (up from 7.1%).

• Net result Q2: -624 TSEK (improved from -859 TSEK); EPS: -0.02 SEK.

• Operating cash flow Q2: 3,280 TSEK (up from 1,338 TSEK); total cash flow Q2: -951 TSEK.

Outlook and guidance

• Management expects improved growth as market conditions recover, with continued focus on efficiency and customer migration to the AI platform.

• Optimism for higher growth in coming quarters, supported by new partnerships and a strong sales pipeline.