REG - Diaceutics PLC - Revenue growth of 24% in H1 with 55% now recurring

DiaceuticsAnnouncement

23/07/2024 07:00

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RNS Number : 3683X  Diaceutics PLC  23 July 2024

Diaceutics PLC - Trading Update

 

Diaceutics grows revenues by 24% in H1 2024 with 55% of revenues now recurring

 

Worked with 63 individual customer brands in H1 2024 - an increase of 26%

 

Six customer engagements now at enterprise-wide level

Leveraging Diaceutics proprietary AI to increase return on investment from
data

Diaceutics is now demonstrating its ability to be the primary
commercialisation partner for pharma and biotech companies launching precision
medicines

 

Strong balance sheet with cash of £16.7 million

 

Good momentum - performing and growing to meet significant customer demand

 

Belfast and London, 23 July 2024 - Diaceutics PLC
(https://www.diaceutics.com/) (AIM: DXRX), a leading technology and solutions
provider to pharma and biotech companies, today provides a trading update
for the half-year ended 30 June 2024.

 

Ryan Keeling, Diaceutics' Chief Executive Officer, commented: "We are
pleased to report continued strong performance and growth across our business
in the first half of 2024, providing good visibility as we head into our
historically stronger second half. This performance demonstrates the
significant value our customers place on our differentiated offering, as
reflected by the increasing number of precision medicines we are working with
and the significant number of enterprise-wide engagements we have secured to
date. Our customers are continuing to accelerate their shift to precision
medicine to improve patient access, capture lost revenue and increase
profitability and we are confident we have the team and resources in place to
scale our business as we capture this growing market opportunity and in doing
so, help our customers find patients in need."

 

Trading Update to 30 June 2024

Revenue grew 24% to approximately £12.3 million in H1 2024 (H1 2023: £9.9
million), 28% on a constant currency basis.

 

The Company continues to improve the quality of its earnings, with
approximately 55% of all revenue in the period being recurring (H1 2023: 47%),
and the visibility of its future earnings, with the order book at 30 June 2024
growing 16% to approximately £27.9 million, up from £24.1 million at 30 June
2023. Annual Recurring Revenue (ARR) was £14.2 million as at 30 June 2024
(£13.7 million at 31 December 2023).

 

The Company is benefitting from both the growing deployment of precision
medicines in the life science sector and the increased adoption of DXRX
platform solutions by our global pharma and biotech customers.

 

Diaceutics' transition towards a recurring revenue model is progressing in
line with plans, with approximately 55% of revenues in H1 2024 being
recurring. The Company expects that 60% of its full year revenue in 2024 will
be delivered in the historically stronger second half with approximately 60%
of the revenue being recurring for the 2024 year. As a result, the growth
profile of both the order book and ARR in the first half are not perfectly
correlated with revenue growth.

 

As at 30 June 2024, the order book that will be realised as revenue in H2 2024
was approximately £8.9 million and gives circa 71% visibility on FY 2024
analyst consensus estimates (H1 FY23: 70% visibility on FY 2023 revenue).
These metrics are in line with the Board's expectations for this point in the
year, providing good levels of revenue visibility as the Company enters its
historically stronger second half of the year.

 

Diaceutics works with 17 of the top 20 global pharma companies and has
increased the number of enterprise-wide engagements it has with pharma and
biotech customers from four to six engagements.

 

These enterprise-wide engagements demonstrate the successful execution of
Diaceutics' strategy to offer more products and services to existing
customers. An enterprise-wide engagement is characterised by a customer
deploying the DXRX platform across three or more of the precision medicines in
their portfolio, or a customer engaging Diaceutics as the primary
commercialisation partner for their precision medicine.

 

Diaceutics worked with 63 individual customer brands in H1 2024, an increase
of 26% (H1 2023: 50).

 

Cash at 30 June 2024 was £16.7 million (31 December 2023: £16.7 million).
The Company continues to invest in line with its accelerated growth strategy
as announced in January 2023.

 

Outlook

·    Continued growth in line with H1 2024

·    Adjusted EBITDA* and cash in line with expectations

·    Accelerated investment strategy to scale for growth is on track

·    New enhanced technologies across the DXRX platform delivering
operational leverage

·    Market opportunity significant and growing, including expansion
beyond pharma

·    Exploring commercialisation partnerships

·    Continuing to land and expand enterprise-wide engagements with
existing customers

·    Global pharma and biotechs continuing to accelerate their shift to
precision medicine to improve patient access, capture lost revenue and
increase profitability

 

* Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation
and exceptional items.

 

Enquiries:

 Diaceutics PLC  
 Ryan Keeling, Chief Executive Officer                  Tel: +44 (0)28 9040 6500
 Nick Roberts, Chief Financial Officer                  investorrelations@diaceutics.com

 Stifel Nicolaus Europe Limited (Nomad & Broker)        Tel: +44 (0)20 7710 7600
 Ben Maddison, Nick Harland, Kate Hanshaw

 Alma Strategic Communications                          Tel: +44(0)20 3405 0205
 Caroline Forde, KInvara Verdon                         diaceutics@almastrategic.com

 

About Diaceutics

At Diaceutics we believe that every patient should get the opportunity to
receive the right test and the right therapy to positively impact their
disease outcome. We provide the world's leading pharma and biotech companies
with an end-to-end commercialisation solution for precision medicines through
data analytics, scientific and advisory services enabled by our platform DXRX
- The Diagnostics Network ®.

 

 

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