Medhelp Care (MEDHLP) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was 19,759 TSEK, down 1.4% year-over-year, with stable sales despite lower summer activity and macroeconomic caution.

• Gross profit rose to 19,461 TSEK, with a record gross margin of 89.6% due to reduced production costs.

• EBITDA increased to 5,773 TSEK (29.2% margin), and net income reached 2,912 TSEK, reflecting strong profitability improvements.

• Contracted Annual Recurring Revenue (CARR) grew 4.1% year-over-year to 84,446 TSEK, supported by new contracts with Skandia and AFRY.

• Major new partnership with Kry to take over healthcare advisory production in 2025, shifting to a per-call cost model for improved predictability.

Financial highlights

• Q3 revenue: 19,759 TSEK (-1.4% YoY); gross profit: 19,461 TSEK (89.6% margin, up from 86.1%).

• Q3 EBITDA: 5,773 TSEK (29.2% margin, up from 18.9%); net income: 2,912 TSEK (up from 47 TSEK YoY).

• Cash flow from operations: 3,861 TSEK (up from 1,024 TSEK YoY); total cash flow for Q3: 93 TSEK.

• Nine-month revenue: 61,064 TSEK (-1.7% YoY); EBITDA: 10,101 TSEK (16.5% margin, up from 12.4%).

• CARR at period end: 84,446 TSEK (up from 81,107 TSEK YoY).

Outlook and guidance

• Focus remains on profitability improvements, new sales opportunities, and expanding partnerships.

• Anticipates further growth from new contracts and the Kry partnership, with cost model changes expected to enhance predictability.

• Sees potential for additional expansion within existing large clients and continued low churn.