Aiforia's Financial Statements Bulletin 2022: Growth continues, driven by the development of the clinical market
Aiforia Technologies Plc, Financial Statements Bulletin (unaudited), 2 March 2023 at 09:00 a.m. EET
This release is a summary of Aiforia Technologies Plc's financial statements for the financial year 2022. The full Financial Statements Bulletin is attached to this release.
Unless otherwise indicated, figures in brackets refer to the financial year 2021.
July–December 2022
- Group turnover increased by 107% to EUR 1,135 (548) thousand
- EBITDA was EUR -4,597 (-2,174) thousand
- Operating result (EBIT) was EUR -5,814 (-2,841) thousand
- Profit for the financial period was EUR -6,227 (-5,233) thousand
- The Group's net debt at the end of the period was EUR -22,008 (-35,197) thousand
- Cash and cash equivalents at the end of the period amounted to EUR 24,698 (38,098) thousand
- Aiforia signed a contract with City of Hope National Medical Center, one of the largest cancer and research centers in the US
- Aiforia signed its first customer contracts in the framework of commercial cooperation with Epredia
January–December 2022
- Group turnover increased by 92% to EUR 1,868 (974) thousand
- EBITDA was EUR -8,108 (-3,451) thousand
- Operating result (EBIT) was EUR -10,203 (-4,691) thousand
- Profit for the financial year was EUR -10,607 (-7,576) thousand
- Unadjusted earnings per share (EPS) were EUR -0.41 (-0.43)
- The parent company's loss for the financial year is EUR -8,355 thousand, and the distributable free equity is EUR 24,917 thousand. The Board of Directors proposes to the General Meeting that the loss for the financial year be retained in the retained earnings account and that no dividend be paid.
Key figures
| EUR 1,000 Group |
7-12/2022 | 7-12/2021 | Change, % | 2022 | 2021 | Change, % |
| Revenue | 1,135 | 548 | +107 % | 1,868 | 974 | +92 % |
| EBITDA | -4,597 | -2,174 | -112 % | -8,108 | -3,451 | -135 % |
| Operating loss | -5,814 | -2,841 | -105 % | -10,203 | -4,691 | -118 % |
| Net loss for the financial year | -6,227 | -5,233 | -19 % | -10,607 | -7,576 | -40 % |
| Equity ratio, % | 85 % | 87 % | -2 % | 85 % | 87 % | -2 % |
| Net debt | -22,008 | -35,197 | +37 % | -22,008 | -35,197 | +37 % |
| Cash and cash equivalents at the end of the financial year | 24,698 | 38,092 | -35 % | 24,698 | 38,092 | -35 % |
| Balance sheet total | 35,336 | 43,868 | -19 % | 35,336 | 43,868 | -19 % |
| Number of employees on average | 71 | 37 | +91 % | 65 | 41 | +59 % |
| Personnel expenses* | 3,773 | 1,876 | +101 % | 6,592 | 2,995 | +120 % |
| Investment in tangible and intangible assets | 3,068 | 2,417 | +27 % | 6,333 | 3,793 | +67 % |
| Earnings per share, undiluted and diluted***, EUR | -0.24 | -0.26** | -7 % | -0.41 | -0.43** | -4 % |
*Personnel expenses include capitalization of development expenses.
**IPO-related costs have been taken into account in the loss used in the earnings per share calculation.
***The Company’s potential dilutive instruments consist of stock options. As the Company’s business has been unprofitable, stock options would have an anti-dilutive effect and therefore they are not taken into account in calculating the dilutive loss per share. Thus, there is no difference between the undiluted and diluted earnings per share.
Jukka Tapaninen, CEO:
I am pleased with Aiforia’s year 2022. We have progressed in line with the plan set out at the time of the IPO. During the year, we strengthened our team in Europe and the US, expanded our offering with four new CE-IVD-marked products, made essential openings in the clinical market, and gained new customers on the preclinical side. We doubled our turnover, and sales growth was particularly encouraging in the US market.
Our growth strategy is supported by the accelerating development of the digital pathology market, as more hospitals and laboratories are ready to streamline diagnostic workflows with AI. We have built a competitive advantage for the company by investing EUR 5.9 million in product development during 2022. Our headcount increased by 59% during the year. The intense investment phase is now behind us, and we are well-positioned to move into a growth phase. We aim to achieve a positive cash flow from operations by the end of 2025.
At the time of the IPO, we set short and medium-term business targets for the company. By the end of 2022, we have five CE-IVD-marked clinical diagnostics AI models as well as a CE-IVD-marked viewer software, three clinical diagnostics accounts, nine large pharmaceutical accounts, and more than 5,000 users. I am confident that we will achieve all our short-term targets by the end of 2023.
The collaboration with the Mayo Clinic started in earnest in 2022. In the autumn, we installed Aiforia Create software for use by the clinic’s pathologists, and installed and validated Aiforia Clinical software. We expect Mayo Clinic to begin analyzing patient samples with Aiforia software in early 2023. We also signed contracts with other prestigious international institutes and hospitals such as City of Hope and Wake Forest. I am particularly pleased with the commercial collaboration with Epredia, which began in 2021 and is now starting to pay off.
Continuous customer experience improvement is at the heart of Aiforia's strategy. In 2022, we launched the Aiforia Community platform for our customers. The web-based platform consists of content designed for the users of the Aiforia software and brings together the global Aiforia community of healthcare professionals and researchers, currently covering users from over 50 countries.
Our medium-term goal is to reach a revenue of more than EUR 100 million by the end of 2030. Aiforia's mission is to enable accurate diagnoses and personalized patient care, thereby improving healthcare outcomes. We are ideally positioned to lead the transition to AI-assisted tissue sample analytics globally and deliver value to our customers and shareholders.
A warm thank you to Aiforia's personnel, customers and shareholders for this busy year. We continue to move forward with confidence in the execution of our strategy.
Business targets
Aiforia does not publish short-term outlooks or financial targets. However, the company has set short- and medium-term business targets at the time of the IPO. Aiforia’s short-term business targets are:
- Obtain a CE-IVD marking for six AI models intended for clinical diagnostics
- Acquire five customers in clinical diagnostics
- Acquire 10 large customers in the pharmaceutical industry
- Reach more than 5,000 users.
Aiforia’s mid-term business targets are:
- Create a product offering that covers 80% of the pathologist’s diagnostic workflow
- Achieve a positive cash flow from operating activities by the end of 2025
- Achieve revenue of more than EUR 100 million
- Reach 20,000 users
- Achieve 50 key customer relationships that would generate annual recurring revenue of at least EUR 250,000 per customer.
Short-term refers to the company's business objectives by the end of 2023. In the medium term, the company's business objectives are to be achieved by the end of 2030. The wording of the medium-term target related to key customers has been clarified since the IPO. Previously, the target was to achieve 50 key customer relationships that would generate annual recurring revenue of EUR 250,000 per customer on average.
Proposal by the Board of Directors on the treatment of the result for the financial year
The parent company's loss for the financial year is EUR -8,355 thousand and the distributable free equity is EUR 24,917 thousand. The Board of Directors proposes to the General Meeting that the loss for the financial year be retained in the retained earnings account and that no dividend be paid.
Webcast
Aiforia arranges a live webcast for investors, analysts, and media on 2 March 2023 at 11.00 a.m. Finnish time. The event will be held in English. The financial results will be presented by Jukka Tapaninen, CEO and Veli-Matti Parkkonen, CFO.
The webcast can be followed at https://aiforia.videosync.fi/q4-2022-result.
A recording of the event and the presentation materials will be available at https://investors.aiforia.com/ later in the day.
Further inquiries
Veli-Matti Parkkonen, CFO, Aiforia Technologies Plc, tel. +358405009878 https://investors.aiforia.com/
Certified Adviser
UB Securities Ltd, tel. +358 9 25 380 225
About Aiforia
Aiforia equips pathologists and scientists in preclinical and clinical labs with powerful deep-learning artificial intelligence software for translating images into discoveries, decisions, and diagnoses. The cloud-based Aiforia products and services aim to escalate the efficiency and precision of medical image analysis beyond current capabilities, across a variety of fields from oncology to neuroscience and more. Find out more at www.aiforia.com