PharmX Technologies (PHX) H2 2024 earnings summary

Executive summary

• Revenue grew 9% year-over-year to $6.7m, with underlying EBITDA up 17% and NPAT up 34% compared to FY23.

• Sale of the pharmacy software business generated $6.25m in proceeds, with $4.6m net cash and a loss on disposal of $1.9m.

• A court settlement of $9.9m was paid in full, and a capital return of 0.75c per share ($4.5m) was distributed in December 2023.

• Platform growth was strong, with Marketplace up 20% month-over-month and Gateway up 4% year-over-year.

• Cash position increased 2% year-over-year, with a closing balance of $13.1m at June 2024 and $4m forecasted by December 2024.

Financial highlights

• Statutory revenue rose 32% to $8.1m, including legal case impacts; underlying revenue from continuing operations was $6.7m.

• Underlying EBITDA margin was 23%, with underlying EBITDA at $1.8m and underlying NPAT at $0.5m.

• Statutory NPAT was a loss of $1.8m, impacted by legal costs and the loss on disposal of discontinued operations.

• Underlying operating cashflow (excluding R&D) nearly doubled to $2.0m after the business sale.

• Cash on hand at year-end was $13.1m, up 2% from FY23.

Outlook and guidance

• Strategy for FY25 focuses on expanding supplier numbers, platform adoption, and analytics capabilities.

• Emphasis on prudent cost controls, funding investments from cashflow, and maintaining system stability and security.

• Market conditions are favorable, with population growth, increased digitization, and regulatory changes supporting industry expansion.

• Forecasted cash balance of $4m by December 2024.