Physitrack Q2: 31% proforma growth - ABG

Q2: Limited deviations on sales and adj. EBITDA Small negative cons adj. EBITDA revisions expected Conference call at 10.00 CEST

Q2 details Physitrack delivered sales of EUR 3.05m which is 1.5% above ABGSCe 3.01m (0.7% vs Factset cons EUR 3.03m), +18% q-o-q and +57% y-o-y driven by 31% proforma growth (four acquisitions contributes to the full growth in the quarter). On product mix, we note that the virtual care segment came in better than we expected while subscription revenues came in a tad below. Adj. EBITDA reached EUR 0.90m (0% vs. ABGSCe 0.90m and -6.6% vs cons 0.97m), for a margin of 29.6% (ABGSCe 30.0% and cons 31.9%), following that both sales and adj. opex (ex. D&A) was a tad higher than we expected. The rolling average 12-month churn rate is now at 1.3% (monthly), thus slowly continuing to improve (Q1’22 showed 1.4%). Finally, we note that Physitrack exited the quarter with an ARR of EUR 9.8m, up from 7.7m in Q1’22 but note that it is partly boosted by the acquisition of Champion Health.

Consensus likely to lower ‘22e adj. EBITDA by 2-5% The top line came in slightly above Factset consensus expectations, but so did adj. opex ex. D&A. In total, we expect cons to slightly lower ‘22e adj. EBITDA by low to mid-single digits. In addition, we note that Physitrack reiterates its target of exceeding 30% organic growth annually, and an EBITDA margin of 40-45% in the medium term.

YTD performance and conf. call details The share is -34% YTD (while OMXSPI is -24%). A webcast will be held at 10.00 (CET). In addition, we look forward hearing more at the conference call starting 10.00 CEST. Link to webcast: https://tv.streamfabriken.com/physitrack-group-q2-2022.

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