Physitrack: Strong LC growth, but small margin miss - ABG
Q1 sales in line with our estimates, adj. EBITDA 4% below
Expect cons '23e adj. EBITDA to come down ~3-6%
Share is -36% YTD, trading at 15x '23e EV/adj. EBITA
Q1 details
Physitrack delivered sales of EUR 3.73m which is in line with ABGSCe 3.73m (-2% vs Factset cons EUR 3.81m), +6% q-o-q and +45% y-o-y driven by 36% proforma growth. On product mix, we note that Lifecare sales were better than we expected, while Wellness came in slightly below. Adj. EBITDA reached EUR 0.92m (-4% vs. ABGSCe 0.96m and -6% vs cons 0.98m), for a margin of 24.7% (ABGSCe 25.7% and cons 25.8%), following 1% higher opex than we expected. The rolling average 12-month churn rate is now at 1.1% (monthly), i.e., an improvement versus Q4’22 which showed 1.2%, and Physitrack exited the quarter with an ARR of EUR 11.3m, up 3% from 11.0m in Q4’22. Finally, we note that Physitrack ended the quarter with EUR 0.7m in cash after utilising an additional ~EUR 2.2m of its credit facility. However, the cash flow was impacted by ~EUR 1.6m in earn-out, and the company emphasises it does not expect to require any capital or debt raising in the short to mid-term.
Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/physitrack/Equity-research/2023/5/physitrack---strong-lc-growth-but-small-margin-miss-/
