Oneview Healthcare PLC

Thank you for standing by and welcome to the OneView Healthcare half-year financial results. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. If you wish to ask a question via webcast, please enter it into the ask a question box and click submit. I would now like to hand the conference over to Mr. James Fitter, CEO. Please go ahead.

Thanks, Ashley, and good morning to everyone in Australia. Good afternoon to those here in the United States, and good evening to those joining in Dublin, including Dara Lyons, our CFO, and Tony Pettit, our Company Secretary. As always, I'd just like to start with a reminder around the legal disclaimer and forward-looking statements and just a clarification that all the amounts we're going to refer to are in Euros. And a reminder, we are December year-end, so we are reporting the first half results for the six months ended June 2025. Any reference to the full year refers to the prior year of 2024. Just a reminder of our mission is to improve connected care experiences every day and our vision is really focused around redefining the digital environment of care to make it accessible, seamless and reliable for all and as always that mission continues to resonate with all of our employees and I think with all of our shareholders. Our footprint includes three of the hospitals that have been recognised in the top 20 in the United States. So joining me today, as I mentioned, is Dara, who's now 11 months with the company as Chief Financial Officer. So some of you will have met him on the full year results call earlier in the year. But welcome to Dara, who will be talking through the financial numbers in some detail. So unsurprisingly, we're going to talk through the financial results. We're going to talk about the innovative work we're doing on the product front, particularly around our AR strategy. Of course, we'll be providing commercial and sales updates. and of course the outlook for the balance of the year and hopefully leave plenty of time for questions. So let me start with the key highlights. I don't want to steal Dara's thumb, so I'm just going to point to a couple of these. The headline that I think will attract most attention is that total revenue is up 36% for the year, which is a very pleasing result given the revenue profile we've had in recent years. So delighted with that outcome. Added up further to many customer logos in the half year. And you'll note in this presentation we're referring to live endpoints, which is a reflection of the fact that our product portfolio has diversified to include not just bedside technology but dual signs and whiteboards. So a reference to an endpoint is a reference to any device in the patient room that is revenue generating, and Dara will talk through a little bit more around that. Cross-margin was down slightly in the first half as a function of the fact that we were delivering a substantial amount of hardware in line with the revenue growth. And on the following slide you're going to see the visualisation of the revenue over the last five years. What's most pleasing about this revenue growth is just the broad base of opportunities that we're working on in the first half of the year. Some of these have been customers for many years that are continuing to expand their footprint, which would include the likes of NYU Wangone, BJC Healthcare, University of Miami, but also a number of new logos that are now in flight in deployment mode and we talked a bit about speed of revenue and pace of deployment. But this sets us up very nicely for the second half and is a great foundation for the first year with some very significant customers that are continuing to be expanding in the second half of the year. In terms of investment highlights, efficiency is a key theme. We're moving, working, as I mentioned, towards faster and more efficient deployments. We'll talk about how we're doing that shortly, but obviously we're being AI-powered solutions across every business function in the business. We'll talk more about that in a second. You will have noted from the 4C that we have restructured our Australian and some other functional teams to better align our operations with current business opportunities where obviously cognitive of the challenges that the Australian market is facing, particularly when it comes to private hospitals. That's having an impact on both customer affordability for digital health solutions and, of course, on pricing as well. On the execution front, as I mentioned, we've added two new customer logos in the first half of the year. The sales pipeline is expanding really nicely, and I'll talk through that in some detail. And as we mentioned in the 4C, we just signed a very important three-year extension with a a very significant customer, which is going to deliver 20% year-on-year revenue growth from that customer loan, which is great to see that we have some pricing power. In terms of innovation, we are working on an entire rebuild of our front-end, which is probably the most significant rebuild we've done for some time. We've been running the same front-end user experience for the last dozen years, so this is a big change, something that's really been driven by customer feedback. and we're super excited about how that's panning out and we're going to talk to you a bit about how we're embedding AI engagement products into that work. And we're also going to talk about the bedrock of our AI strategy which of course is our ISO 42001 certification. For those of you who are not familiar, ISO 42001 is the international standard that specifies requirements for establishing, implementing, maintaining and of course continually improving an artificial intelligence management system within organizations. And we were the first, and I believe to this day, the only ASX company to have achieved that certification, and we are certainly the only one of our U.S. competitors to achieve that, which we're extremely proud of. So with that, let me pass it across to Dara, who will talk through the numbers in a bit more detail, and we'll come back and talk a bit more about the product innovation. Over to you, Dara.

Thanks James and good morning and good afternoon to you all on the line. So we had a very good first half of the year in terms of top line growth as James has mentioned with 36% growth in the first half of the year.

That growth was driven by a 7% increase in our recurring software revenue and then a non-recurring or deployment revenue more than doubled to 2.5 million in the first half of the year. That higher proportion of non-recurring revenue has weighed on gross margin relative to H1 2024 and that is responsible for the 12.6 line from the 73% gross margin posted in H1 2024.

Our H1 2025 gross margin

We're also impacted by a couple of deployments that we did at the start of the year involving lower margin hardware. But we do see that as a temporary hardware mix shift and not indicative of future trends on gross margin.

Our cash OPEX increased by 17% to 8.3 million in the first half of 2025, converted to 2024, and there's three main reasons behind that.

We had the full year impact of the investments in resources, which is to support the greater deployment activity that we were expecting in the US and which we're now seeing and will hopefully accelerate over the coming months. Secondly, we also invested in accelerating the delivery of that new front-end user experience that James has mentioned and he'll bring you through in a few moments time. And then we also incurred €168,000 in restructuring charges associated with the restrictions that we affected in June that James has mentioned. That restructuring, as James has said, mainly impacted the Australian business where, as you all know, the private healthcare market has been suffering there for several years. In addition to that, we also realigned some of our other functional areas to gain efficiencies from them.

So we now can get the restructuring results in a 10% reduction in our global headcount. The higher CashFX number offset, again, we made from our strong revenue performance in the year,

And that resulted in an overall EBITDA loss of 4.5 million for the first half of 2025.

Moving on down to the balance sheet and capital position.

So we had 8.2 million of cash as of June 25. So our HIT 1 2025 operating cash burn of 4.8 million is aligned with the operating EBITDA loss for the year. We do expect cash burn to be lower in the second half of the year. We will see the benefit of that restructuring, which was effective in June, so that has already kicked in from July, post-period end, and we do estimate that that will deliver at least 1.1 million in annual cost savings. We also have some other management efficiency initiatives that James will speak to later in the presentation, and we hope we will see some additional benefits to them during the second half of the year. And then finally, historically we've always had stronger cash receipts during the second half of the year and we expect that to be the case during the second half of this year also. So the final thing then I just want to call out is the fact that we have very strong levels of proprietary hardware and that hardware is located in the US and we believe that that's a very important investment for us to have made given the current trade and tariff volatility that was seen in the US in particular. We have 2.6 million of infantry on the balance sheet at 30 June and in addition there's another 600,000 that's included within other assets at 30 June in relation to in transit proprietary hardware. that we've since reclassified into infantry. And we do see that utilization of that infantry in deployments over the next six months has also been beneficial to our overall cash flow in that period. So passing back to James, who is going to bring you through how we're reimagining the patient experience with AI. Thanks, Eric. Much appreciated. So for those following along now on slide 14, And obviously, I think in healthcare, as I think we all know, everything really begins with security and trust. We're dealing with very large enterprise healthcare systems where there is an obsession around security. And for that end, the foundation of becoming ISO 42001 certified for us was absolutely the right way to begin our journey to AI. And our journey really began a couple of years ago where three of our executive leadership signed up for executive education programs including myself, Sarah and another of our senior leaders to make sure that we are really understanding at the highest level of the company what the expectations are. Clearly this is an incredibly fascinating time for any software company and it's that foundation which forms the basis of what we're doing in terms of building customer-facing products and also thinking about how we work internally and how we deliver to shareholders around internal efficiencies. So that journey was absolutely critical. I think it's a time when a lot of companies are making statements and marketing AI products without having necessarily gone through the discipline and the protocols and the governance that is so important, particularly in healthcare. So that's allowed us to really think very carefully around the development of products. I want to speak a little bit about what we're doing internally first, and then I'm going to talk about what we're doing externally. So internally, really, for anyone who's running a software company, it's hard to imagine how much life is changing. This AI revolution is really reshaping the software industry in ways that we never could have imagined. It is accelerating innovation. It's improving product quality. enabling our teams to focus on higher-value work rather than routine tasks. And this transformation is already underway at OneView through a whole bunch of initiatives around our entire software development lifecycle. So if you look at this slide, you'll see these red boxes, which should be familiar to anyone who works in the software business around planning and requirements, design, development, testing, our release methodology, our deployment methodology, and our ongoing operations and support. And we challenge our leadership of each of these areas of the business to really embrace the tools that are available. And we've really focused on sharing the company, sharing everyone in the company, AI-specific learning objectives. We're all going to be on this journey together. Clearly, there's a lot of anxiety around the impact these kind of initiatives are going to have on workforce going forward. But at the moment, we have taken the view that the best thing we can do for our shareholders and for our employees is to head off on this journey together. And that's meant the establishment of two communities of practice. One that is focused specifically on engineering and then a second community of practice that is focused on business automation and initiatives. The engineering co-op meets weekly and the business community practice meets fortnightly. And we're showing real progress across the business and I think that's a and sensible ways we've been able to come up with how we deal with these challenges. And we're seeing really powerful employee engagement around these tools, making these tools available and encouraging them to get their hands on the tools. In terms of our customer-facing AI strategy, I think as those who follow the company closely know, we unveiled Ovi, which is a virtual care team member at two trade shows in the United States during the first quarter of this year had really positive feedback from a customer's perspective and current customers around this. And this really leans into how we're thinking about our whole new front end that we're building. And the front end is built around two key components. On the left-hand side of this slide, we're talking about the patient-centric value of the platform. And on the right-hand side is the care team-centric value of the platform. We very much focus on those two groups equally. So what we're trying to do here is really leverage the massive leads that have been made in natural language processing. We know that voice is becoming a modality of choice, particularly for younger patients, but increasingly throughout the demographics. We know that voice is going to become much more of a driver. So in its simplest form, we are redesigning the front end so that it knows or it has the context to be able to share with the patient what's the next most important thing for the patient on their journey. That could be ordering a meal, it could be completing education content, it could be dealing with your discharge planning, but it will be surfaced to them in a way that is seamless and gives them the sense that the system understands who they are and why they're here. They'll then be able to use voice through the OB Voice for natural conversations around simple tasks, which might be controlling their environment, controlling the room temperature, changing channels on the television, or asking questions of the virtual care assistant, which would include such questions as, you know, when am I going to be allowed to go home? You know, what medication am I on? What are my medication side effects? We see this as a really important component of taking pressure off the care teams. And then the OB console is the real-time dashboard that is surfacing for the care team, the intelligence around the dialogue that the patient is having with the system. So we know that if the patient's asking questions around their medication, it might prompt us to pass fresh education content across on their medication. We know there are certain words that are going to trigger an immediate response. If a patient's asking questions about end of life or about suicide, that would trigger an immediate reaction for the care team that someone needs to round on the patient. So OB rounds is the extension of taking the context awareness that the system's developed and sharing that information automatically with nurses and managers and leaders to ensure that that circle is closed. So on the next slide, you'll get a sense of how we think about where Ovi fits in in the delivery of virtual care. We know, and I think anyone who's followed the company knows, that virtual care has been a huge driver of demand for our platform in the last two, three years. That's continuing to this day. I think every conversation we're involved with in customers, regardless of where they are, the conversations around how do we use the OneView platform to use us as the conduit for delivery of virtual care. As we mentioned in the latest policy, we're expanding our portfolio of authorised vendors through the API. So we now have Caregility, Teladoc, and we're currently working on Care AI and Artisite to qualify those vendors for that program. So OVI is a precursor for the virtual nurse. It allows the patient to communicate in their own language, with the virtual patient assistant and ask the basic questions. So it's always on, always available. The virtual nurse is an escalation point for Ovi to say, listen, at this point, we think you should be talking to a virtual nurse. And obviously the virtual nurse is the ultimate arbiter of when do we bring the floor nurse in for that personalised connection, the physical care, the urgent care that is such a critical part of every hospital's ecosystem. and what really motivates the nurses. So I think it's a very logical and a very appropriate use of AI at the patient's bedside. This is just a sense of what that's going to look like on the next slide. You'll see the patient-centric vision. So OB is asking the patient to order breakfast. It's reminding them they have an upper body x-ray. And it's also asking how they slept last night. And again, that's all helping the context for the care team who on the right hand side can see and look at any unit and ascertain who on the unit has not yet ordered their meal, who hasn't completed their education content. So historically we have had this information available to customers on a monthly look back basis. We're moving this to real time data which is going to provide real operational data that's going to allow the care team to orchestrate the delivery of care and lead to a much enhanced experience both for the care team and for the patient. So a huge step forward for us as a business. I think from a competitive point of view, it's going to place us in a really unique position where we are obviously ahead of the competition in our AI governance. And I think we've got a product suite that we're building that's also going to put us at the forefront of this dramatic change in the PE industry. The final thing we're doing around AI-powered insights is really leveraging the real-time data we're getting from the patient's use of the system. So we're working with one of our academic teaching hospitals to develop this clustering analysis, which is looking at the demographics of the patient, taking their age, their gender, their disease state, and helping us give a sense of how active they are with the system, how are they engaging with the system. And what we're looking to do is establish a correlation between that use and the HCAHPS satisfaction data. So the HCAHPS score is the survey that every patient is surveyed in the United States, six weeks after discharge, and ask 11 questions around their patient experience. And what we're hoping to establish is a link between the engagement of the system with the way the patient is rating the organisation. And the second derivative of that, where we really want to get to, is to be able to demonstrate that a highly engaged patient ultimately leads to lower readmissions for the health system. So really important work that's driving some real value for our customers going forward. So let me say that there are commercial and sales updates. Just a reminder, you know, our global footprint, we continue to enjoy success on four continents. We are very much predominantly focused in the United States and Australia. Just a reminder that we have had the Huling Grad Partnership in Thailand for six or seven years. And we have one, although we're still waiting for the new Children's Hospital of Ireland which is scheduled for June of 2026, but we hope to be delivering a hard work of that project this year. So the reality is that the patient experience is a global phenomenon. We also have some sales activity and some new interesting corners of the world that may well come to fruition in the second half. So in the United States, just a reminder of where we've enjoyed success. You'll see on this map that we've enjoy success across the country. What really began as an important footprint on the east and west coast has really filled out in the midwest and of course now in Florida and southern California. So US customers account for 73% of our live endpoints and would account for a probably six or seven point higher of our contracted endpoints. So most of our new business in recent times has been in the United States. However, in Australia, that's not to say we don't have an important business, because we do. We've had a long-standing, decade-long partnership with Epworth and some with the children's hospital in Sydney. We've also, in more recent years, we've been enjoying new partnerships with Aviv and ADE. So Australia remains an important market for us, but we are cognizant of the challenges that market's facing, which is why we have right-sized our Australian workforce in the current half year. But Australia, as you can see, still represents 23% of our total live endpoints. In terms of our commercial strategy, I think it's pretty obvious. We've talked in the past about how important landing and expanding is, and that is a trend that continues to this day. We know that adding new logos is an incredibly challenging pursuit. The sales cycle in this industry is ridiculously long and being elongated in certain circumstances by security concerns. I think every new customer we onboard, we are going through very complex security assessments which take time and need to be satisfied. But we're really pleased to see the caliber of the customers we've been able to attract. We've never failed a security assessment in our history. And as we know, once we're in, we now have the opportunity to expand both vertically and horizontally with our new which is delivering a 92% product upsell opportunity. And we remain blessed with very low churn, with one notable exception in Australia, which I'll talk about shortly. In terms of new customer logos, as I think you will remember from last year's presentation, we've enjoyed more commercial success in the last two years than we did in the previous decade. That trend is continuing, although we only landed two new logos In the first half of this year, that's not a question of where the sales funnel is. In fact, on the contrary, I think we're in a position for a very strong second half. Our sales organisation has never been busier and we have several new logos that are already in contract negotiations. So the question I think everyone wants to ask is what's happening with the Daxter partnership and the bottom line is that the partnership is maturing very, very nicely. We have, as we foreshadowed in the 4C, we have around 180 opportunities. We're really proud of the momentum that's building through the partnership. And while some of these deals have taken a little bit longer to close than expected, the depth and the breadth of their pipeline is unprecedented. We've already won four logos and obviously extended and expanded the Bariata-Russo agreement in 2024. And now this pipeline has reached the level of maturity that we're really confident that the groundwork laid in recent quarters is going to translate into meaningful growth. And I know that's a frustration for the market, but I can say that our sales organisation and Baxter's sales organisation are really joined at the hip and working with some very significant opportunities, which we're very excited about. To give you a bit of a sense of what that looks like, we've just taken the trouble of sharing the geographical footprint of the opportunities that they're currently working. You can see that they represent over 180 opportunities in 41 states across the United States that represent nearly 50,000 beds, which is roughly 5% of the U.S. market. So there's a ton of activity going on, and you can see, I think, when we think about how difficult Australia's been to see that we have 18 opportunities in California, 26 in Florida, 22 in Texas. They're the kind of numbers that we could only dream about in the Australian market. So I think we've really positioned ourselves well for future success. Baxter's obviously been having their own leadership changes with a new CEO starting on the 3rd of September, but the level of engagement at the sales level and the executive sponsor level is extremely strong. So we're very excited about where that's going. In terms of deployment updates, I think you are all aware we've evolved from what effectively was a single platform solution at 2024 with a really important year for the company in terms of new product innovation. We delivered the digital whiteboard. We delivered the digital door sign. We delivered MyStay Mobile. Those products are giving us opportunities to open conversations with organisations where we might land with the door sign and then expand to the core products or vice versa. That is providing real value for us just in our existing customer base alone where we're seeing some substantial movement and recent customers like Innova who are deploying the door sign, the whiteboard and the core platform in every room is obviously where we want to get to. So we're really happy with where the portfolio is And obviously finishing the new front end is the final piece in that puzzle. So the live endpoints, this is the progression that we see from the end of 2024 through to June 2025 and what we're targeting for December 2025. So as I mentioned, we've had one customer that did share in the half year, which was an Australian customer. We lost 894 endpoints. It was simply due to budgetary constraints from a private hospital group in Australia who, in fact, wrote us a very glowing reference when they had the difficult decision to discontinue the product. Fortunately for us, that product was a fairly lower margin product in the sense that it was entertainment and meal ordering only. And as you can see on the next slide here, the beds that have replaced those beds that have been deployed at a 96% higher average revenue per bed than the beds that were decommissioned. So you never want to lose a customer and we were very upset to do so but the fact of the matter is we've been able to replace those beds and more with a significantly higher revenue. And here you can see the average revenue per end point which was sharing 5% growth despite a significantly weaker US dollar in the second quarter, it's nice to see the 5% growth year over year. The other thing I just wanted to touch on was the investment we're making in more efficient deployments. So JP Howe, who's our Chief Operating Officer, has been tasked with working with our US team to really shorten our delivery timeframes. Historically, we've seen sort of six to nine months as a standard deployment window. So we've tasked JP with getting that down to 90 days and pleased to report that we're showing great progress on that. And the ways we're doing that are multifaceted. We've made a significant investment in configuration tooling to reduce our present implementation timelines, which will also reduce ongoing support overheads and costs. And ultimately, we want to get to the point where we can enable a partner to install and operate our software without having to use a OneView employee. We set ourselves an objective of getting there in mid-2026, and I feel like we're on good track there. We're looking at infrastructure automation with AI agents, which shouldn't come as a surprise to anyone, and we're continuing our migration to containers, which is going to help SDLC at no end. And then we're looking at how we can use AI for complex feature configuration in the field. So there's a lot of work going on here. We're already starting to see the benefits of it from a speed to revenue point of view. I think it's going to be really significant for shareholders in 2026 and beyond. So in terms of the outlook, you know, performances, as Darren mentioned, we're really pleased with the top line growth in the first half of 2025. We've obviously seen a regional uplift in recurring revenue, again, slightly impacted by the weaker US and Australian dollars in the second quarter of the year. The pipeline, though, is what we're particularly focused on. We're obviously, as I've mentioned, very pleased with where that's at. We're pleased with the maturity of the pipeline. And as we mentioned earlier, we've got several logos that are in late-stage contract negotiation. In terms of product initiatives, the new user experience will be delivered in the second half of this year. We're super excited about how that's going to help us deliver for new customers. And as part of that, we're delivering the AI-powered products that I've already spoken to and addressed ISO 42001. So productivity is going to be the other big winner. We've already obviously taken some costs out of the business. Never pleasant doing that, but I think it set itself up for a very nice second half. We've got great momentum on the deployment side. We've got a leaner cost base, and we're coming into what's typically a seasonally stronger second half of the year. And the final slide here is just showing the recent deployments at Nova, which is the number one health system in Washington and Virginia, where you can see that in this room they have deployed all three devices, the television, the digital whiteboard and the digital drawer side. And obviously that's where we'd like to get to with all of our customers. So with that, that concludes my formal remarks and we would be delighted to take any questions if anyone has any.

Thank you. If you wish to ask a question on the phone, please pre-style one on your telephone and wait for your name to be announced. If you wish to ask a question via the webcast, please type your question into the Ask a Question box. Your first question on the phone comes from Wayson with Jeffrey. Please go ahead.

Hi, Jameson here. Sure. Great. Thank you for taking my question. So the first one that I've got is in regard to some of that headcount reduction that has come through, I'm guessing there'd be some redundancy costs associated with that. So would that have all been booked in to true and hard?

Yes, it would. Yeah, we had 160,000 of restructuring costs were booked and that included in that cash output expense for the first half of the year.

Right. And is there any remaining that would be booked in the same half, is what I'm trying to understand?

Oh, no, it's fully booked. We've yet to see any benefits given that it was only executed in June, but the full costs are booked in the half year.

Okay, great. And then just in regards to, you know, the $2.6 million of inventory that we had, how many beds would that account for, or how could you think about that, you know, relative to, you know, how long a bed is possible?

Yeah, it's a mix of different devices, but it's certainly, we're thinking of it over a 12-month time frame of peace. Okay, great. Thank you.

And it's slightly more than we typically would have carried because we obviously wanted to try and get ahead of the tariffs. So you might recall in the February results, we spoke to that. We actually expedited delivery of the hardware to get ahead of that.

Yes. No, that makes a lot of sense. James, you had a question?

Hi, this is James. Just one more question is, A couple of weeks ago, in the Q2 report, it shows the AI partnership with Care AI and also IDSize. Do you have any details or updates what particularly it looks like?

Sure. Let me take that one, Jennifer. So, basically, with our virtual care API, the model we have set about is that with our virtual care strategies, we want to enable health systems to choose any of the virtual care providers, and then leverage our API to be able to deliver the virtual care experience through the OneView platform on the existing television in the room. So we have validated Caregility and Teladoc previously and VitalChat, another smaller operator. We are currently, and this is very much customer-led, so we have a company in New York that has selected CareAI as their virtual care partner but they want to deliver it through OneView. Similarly, we have two prospective customers who are both Artisite customers who have asked, could they deliver Artisite through the OneView platform?

Does that make sense? Does that answer your question? Yes.

Yes, that makes sense. And also for the second half, when you mentioned about redesign of the front-end user experience, Is that always through these two partnerships?

No, no, it's not. So that's been built in-house based on research we've done with our existing customers, really going back on customer feedback and market research we've done over the last 18 months or so. But we think it's going to enhance our competitive position and ultimately it will allow us to potentially the full-hour solution on a smart TV instead of putting a set-top box behind the TV. So it could also lead to further capital constraints being reduced on prospective customers, which is a second goal. The first goal is obviously enhancing the user experience, but the second goal is around a delivery methodology.

Got it. Thank you.

Pleasure.

Once again, if you wish to ask a question on the phone, please press star 1 on your telephone. Your next question comes from Dan Horan with NHT Marquis. Please go ahead.

Morning, James. Thanks for taking the question. Look, I do want to talk about the ambassador there. I guess from the outside looking in, it appears to have certainly been perhaps what I originally thought.

An obvious question, do you remain confident that the VAR is structured in the right way, that the incentives for the Baxter team are correct and correctly aligned? Or do you think that this could be changed again in any kind of re-extensional or revalidation? No, I think there's really good alignment on it. And I know there was a lot of, painstaking negotiation around making sure we've got that alignment right in the get-go. I think with all things, it's all around making sure that the incentives are appropriate for the sales organisation, and certainly that's true. We know that the backs of reps, in order for them to achieve all of their variable comp, they have to sell at least some one view this year. So I think that alone suggests to me that they see this as pretty important to their own hip pocket, which ultimately is what a lot of people in the sales world are focused on. So, no, I think the alignment's good, Dan. Look, I think there's one thing that perhaps we underestimated was, you know, Baxter, by their own admission, was still suffering a little bit of indigestion from the Hill Rom acquisition when we first started. So perhaps their sales organisation wasn't as optimised as it could have been. And secondly, I think they might have misunderstood just how complex, because the platform touches so many stakeholders in large enterprise health systems, it is a complex startup. And we know that ourselves. I think perhaps they thought it might have been a little bit of an easier sell than it's turned out to be. But at this juncture, as I said, we have a very mature, they have a very mature pipeline of opportunities. And I think they're... They're pretty enthused about where we're at.

Okay, okay. Thank you. And just a bit more of a mechanical question. There's been a couple of bits of delayed revenue over the last 18 months. Could you just run us through where we are with those and where you expect they might land?

Yep. So the Children's Hospital of Ireland, as I mentioned, still hasn't got a definitive opening date. We have delivered some equipment to them We are hoping to deliver about $500,000 to $600,000 in the second half, is that right? Yeah, that's right. And then BJC was the other one that was on hold post the St Luke's acquisition, and we've had some good engagement with BJC. We've booked over a million of revenue with them year to date, so there's still a bit more to catch up with them, but hoping that is going to come through in the second half or worst case in the first quarter.

So it'd be in between a million dollars of that deferred revenue, sorry, a million euros loan you're stepping out. Potentially, yeah.

Good. Okay. Thanks so much, Bill. Take care. Thank you.

Thank you. There are no further phone questions at this time. I'll now hand back to address any mid-time questions. Hi, Bessie. We have two questions in the studio. They're all from Mark and Jacob from Bell College. So the first question is, live beds at H1 were 13,526. Your previous roadmap had an expectation of 14,952 by June 2025. What drove the shortfall, which appears to have driven the single-digit rise in recurring revenue?

Could I go on there?

Yeah, yeah, sure. So it's really the points that James has raised there in terms of EHLs.

and also those deferred customers from before. We had hoped that there would be additional deployments there relative to what has been. There has been some good progress there, but we have assumed likely better progress in years. So they're the main drivers.

So there's probably between those two, there's 650 endpoints in CHRIs. There's probably another 1,000 endpoints from those U.S. deferred customers that we expect to come through in the year.

So that, and then the final piece is that customer in Australia, although it was a low-margin customer, it was a big Fed number with 894 endpoints.

So that accounts for the rest of the difference.

Our next question is, the resultant presentation has yet to appear on IRIS.

It's on ASF, so it should be on IRIS, I would think.

Thanks, James. And then the last question for Martin is, is the reduction in the workforce signaling that OPEX can now teach?

Yeah, I think that's right.

Yeah.

Yeah, yeah. We obviously haven't seen the benefits, as we've said, and I'll say restructuring coming through, but we see that in the second half of the year. So I think that's a great function.

Thanks. No more questions. Pardon me. We have another phone question registered. This is from Laysen with Jeffrey. Please go ahead.

How large are these contracts in terms of their points?

Yes, the way we mentioned the overall size of these enterprises in the Appendix 4C, so I think it's like 300 and 700 beds. So again, these are land and expand type contracts. We're in there. We've actually already deployed to both, I think, at this stage. So we'll be very much trying to leverage up those contracts over time.

Okay. If I could just one last one in regards to, I guess, our December 15,000 target for live endpoints. Are you able to give a bit of color of, I guess, what the build-up of that is? Just trying to understand whether this is kind of like a conservative, realistic, or aspirational kind of number that we'd be looking at to get to that. Okay, thanks.

Barry, you want to add?

Yeah, so, yeah, it's obviously, you know, our best estimate of what it is at the moment, where it is based on

largely scheduled deployments during the second half of the year and you know we obviously have a very strong pipeline that you know we're hoping that will come to fruition over you know with some contracts in very late stage and contract negotiation at the moment so I suppose they're probably the upside to this number that if we can get some of those signed and get them deployed this year then hopefully we'll be able to show through that number but That's what we have on the pad at the moment really in terms of what we expect our project team to be busy on for the second half of the year in terms of those endpoints and hopefully we can get through that number with some bounces of the ball on the pipeline.

Got it. And then one final one. Just in terms of slide 31, when we talk about that uplift, that's a very nice, solid number that we're looking at on the ARR endpoint. Are you able to give any color to this breakdown as to how that pricing uplift has increased sheltering?

Sorry, say that again, Wes?

So that ARR to endpoint breakdown, so it goes from 1.47 to 1.5 to 4?

Yeah.

Yeah. How much of that is like sell-through versus price increase, if that's something that we should be thinking about?

Yeah, so a major piece of that is, I suppose, the fact that we've taken out some pretty low margins endpoints from that Australian customer. And then the new endpoints that we're adding, I suppose, are at our current prices and are much stronger. So that accounts for quite a piece of that.

So I suppose the key for us would be to obviously grow the endpoints and then, you know, each customer to be able to have several endpoints in each room is how we can grow that in growth time.

Perfect. Thank you. Good call from me.

You have another phone question from Martin Jacobs with Bell Potter. Please go ahead.

Hi, guys. Yeah, the presentation's come through, and that's about 25 minutes after the conference started. But anyway, so just a query on the live endpoint slide. Two points here. Firstly, What's the margin differential between the US deployments that have come through and the Australian deployments that have been decommissioned? So we obviously don't give the pricing by jurisdiction or be commercially sensitive, but I suppose that slide 31 that we just referred to would give you an indication of some of the endpoints that we have replaced in Australia with new deployments in the US.

Well, I haven't seen that yet, but you can't give some sort of basic colours to the different... Well, I suppose our standard pricing is pretty similar across all jurisdictions, but, you know, I suppose it just depends on the price of the money.

I think it's the 96% number that he's referring to, Daryl. So, I'm on James. So the average recurring revenue from new endpoints that were installed during the half were 96% higher than those that were decommissioned.

Okay.

So all in itself. Does that make sense? Yeah, yeah. Yeah, yeah, yeah. Okay, got it. And the second question is, can you just clarify for me the numbers back at December 24? So when the full year result was reported, live beds were about 12,500. And in this slide, you've got some additional endpoints

and then a revised December 31, 2013. Can you sort of talk to that?

Yeah, so we were previously reporting on beds, and obviously we have additional products that we're now selling which weren't included in that bed number. So that's the step up from that to reflect the fact that we're now reporting on endpoints.

Right, so you sort of have to do a door sign and might stay mobile, those kinds of things. Yeah, door sign, whiteboard, and, you know, you've got more than one endpoint in the room. Right, okay, got it.

Thank you. Well done on the revenue question.

Thank you. Thank you. There are no further phone questions at this time. I'll hand back for any further webcast questions. Thanks, Ashley. We have a final question here from Greg Ward from Trafalgar Capital. Have you seen any significant change in the competitive landscape? Specifically, have any players been able to close the technology leave you have?

No. Hi, Greg. How are you? No, look, I think I'd say that the competitive landscape is pretty consistent with where it's been in prime years. We know that Epic has been pushing Epic TV, which really is a pretty inferior product, bearing in mind that every customer we have in the United States is an Epic customer. So they've obviously looked at Epic TV and decided that it's subpar. But no, I think the competitive environment, as I think you know, there's been a couple of our competitors have changed hands in the last four months, notably GetWell Network and And I think oftentimes when there's a change of ownership, it does have an impact on customer satisfaction. We know that GetWell in particular has been through a very significant reduction in force, and I think that is flowing through to some customer dissatisfaction issues that we have been able to avail of. We're in a number of conversations with existing customers, and we've been able to get well customers that we're pretty enthused about. So if anything, I think our competitive position is strong and getting stronger. I think we've got real leadership in the AI space with solid foundations which none of our competitors can lay claim to. So I think we're very well positioned for 2026 and beyond.

Thank you.

As there are no further questions today, that concludes our conference. Thank you for participating. You may now disconnect.

And we're continuing our migration to containers, which is going to help SDLC at no end. And then we're looking at how we can use AI for complex feature configuration in the field. So there's a lot of work going on here We're already starting to see the benefits of it from a speed to revenue point of view. I think it's going to be really significant for shareholders in 2026 and beyond. So in terms of the outlook, you know, performances, as Darren mentioned, we're really pleased with the top line growth in the first half of 2025. We've obviously seen a regional uplift in recurring revenue, again, slightly impacted by the weaker US and Australian dollars in the second quarter of the year. The pipeline though is what we're particularly focused on. We're obviously, as I've mentioned, very pleased with where that's at. We're pleased with the maturity of the pipeline and as we mentioned earlier, we've got several logos that are in late stage contract negotiation. In terms of product initiatives, the new user experience will be delivered in the second half of this year. We're super excited about how that's going to help us deliver for new customers. As part of that, we're delivering the AI-powered products that I've already spoken to and addressed ISO 42001. So productivity is going to be the other big winner. We've already obviously taken some costs out of the business. Never pleasant doing that, but I think it set itself up for a very nice second half. We've got great momentum on the deployment side. We've got a leaner cost base and we're coming into what's typically a seasonally stronger second half of the year. And the final slide here is just showing the recent deployments at Nova, which is the number one health system in Washington and Virginia, where you can see that in this room they have deployed all three devices, the television, the digital whiteboard and the digital drawer side. Obviously that's where we'd like to get to with all of our customers. So with that, that concludes my formal remarks and we would be delighted to take any questions if anyone has any.

Thank you. If you wish to ask a question on the phone, please pre-style one on your telephone and wait for your name to be announced. If you wish to ask a question via the webcast, please type your question into the Ask a Question box. Your first question on the phone comes from Wason with Jeffrey. Please go ahead.

Hi, Jameson here. Sure. Great. Thank you for taking my question. The first one that I've got is in regards to some of that headcount reduction that has come through, I'm guessing there'd be some redundancy costs associated with that. So would that have all been booked in the dream half?

Yes, it would.

That's correct.

Sorry, you just... Yeah, yeah, we... Yeah, we had 168,000 of restructuring costs were booked, and that included in that cash output expense for the first half of the year.

Right. And is there any remaining that would be booked in the same half, is what I'm trying to understand?

Oh, no, it's 40 books. We've yet to see any benefits, given that it was only executed in June, but the full costs are booked in the half year.

Okay, great. And then just in regards to, you know, the $2.6 million of inventory that we had, how many beds would that account for, or how could you think about that, you know, relative to, you know, how long a bed is possible?

Yeah, it's a mix of different devices, but it certainly, we're thinking of it over a 12-month time frame, at least.

Okay, great. Thank you. And it's slightly more than we typically would have carried because we obviously wanted to try and get ahead of the tariffs. So you might recall in the February results, we spoke to that. We actually expedited delivery of the hardware to get ahead of it.

Yes. No, that makes a lot of sense. Jane, did you have a question?

Hi, this is Jane. Just one more question is, A couple of weeks ago, in the Q2 report, it shows the AI partnership with Care AI and also IDSize. Do you have any details or updates what particularly it looks like?

Sure. Let me take that one, Jennifer. So, basically, with our virtual care API, the model we have set about is that with our virtual care strategies, we want to enable health systems to choose any of the virtual care providers. and then leverage our API to be able to deliver the virtual care experience through the OneView platform on the existing television in the room. So we have validated CareDuity and Teladoc previously and VitalChat, another smaller operator. We are currently, and this is very much customer-led, so we have a customer in New York that has selected CareAI as their virtual care partner but they want to deliver it through OneView. Similarly, we have two prospective customers who are both Artisite customers who have asked, could they deliver Artisite through the OneView platform?

Does that make sense? Does that answer your question?

Yes. Yes, that makes sense. And also for the second half, when you mentioned about redesign of the front-end user experience, Is that also included through partnerships?

No, no, it's not. So that's been built in-house based on research we've done with our existing customers, really going back on customer feedback and market research we've done over the last 18 months or so. But we think it's going to enhance our competitive position and ultimately it will allow us to potentially the full-hour solution on a smart TV instead of putting a set-top box behind the TV. So it could also lead to further capital constraints being reduced on prospective customers, which is a second goal. The first goal is obviously enhancing the user experience, but the second goal is around a delivery methodology.

Got it. Thank you.

Pleasure.

Once again, if you wish to ask a question on the phone, please press star 1 on your telephone. Your next question comes from Dan Horan with NHT Marquis. Please go ahead.

Morning, James. Thanks for taking the question. Look, I do want to talk about the ambassador there. I guess from the outside looking in, it appears to have certainly been perhaps what I originally thought.

An obvious question, do you remain confident that the VAR is structured in the right way, that the incentives for the Baxter team are correct and correctly aligned? Or do you think that this tells me it could be changed again in any kind of re-extensional or revalidation? No, I think there's really good alignment on it. And I know there was a lot of, painstaking negotiation around making sure we've got that alignment right in the get-go. I think with all things, it's all around making sure that the incentives are appropriate for the sales organisation, and certainly that's true. We know that the backs of reps, in order for them to achieve all of their variable comp, they have to sell at least some one view this year. So I think that alone suggests to me that they see this as pretty important to their own hip pocket, which ultimately is what a lot of people in the sales world are focused on. So, no, I think the alignment's good there. I think there's one thing that perhaps we underestimated was, you know, Baxter, by their own admission, was still suffering a little bit of indigestion from the Hill Rome acquisition when you first started. So perhaps their sales organisation wasn't as optimised as it could have been. And secondly, I think they might have misunderstood just how complex, because the platform touches so many stakeholders in large enterprise health systems, it is a complex startup. And we know that ourselves. I think perhaps they thought it might have been a little bit of an easier sell than it's turned out to be. But at this juncture, as I said, we have a very mature, they have a very mature pipeline of opportunities. And I think they're... They're pretty enthused about where we're at.

OK. OK. Thank you. And just a bit more of a mechanical question. There's been a couple of bits of delayed revenue over the last 18 months. Could you just run us through where we are with those and where you expect they might land?

Yep. So the Children's Hospital of Ireland, as I mentioned, still hasn't got a definitive opening date. We have delivered some equipment to them We are hoping to deliver about $500,000 to $600,000 in the second half, is that right? Yeah, that's right. And then BJC was the other one that was on hold post the St Luke's acquisition, and we've had some good indication with BJC. We've booked over a million of revenue with them year to date, so there's still a bit more to catch up with them, but hoping that is going to come through in the second half or worst case in the first quarter.

So it'd be in between a million dollars of that preferred revenue, sorry, a million euros loan you're setting up.

Potentially, yeah.

Good. Okay. Thanks so much, Rob. Take care. Thank you.

Thank you. There are no further phone questions at this time. I'll now hand back to address any mid-term questions. Hi, Bessie. We have two questions in the studio. They're all from Mark and Jacob from Bell College. So the first question is, live beds at H1 were 13,526. Your previous roadmap had an expectation of 14,952 by June 2025. What drove the shortfall, which appears to have driven the single-digit rise in recurring revenue?

Could I go on there? Yeah, yeah, sure. So it's really the points that James has raised there in terms of EHLs.

and also those deferred customers from before. We had hoped that there would be additional deployments there relative to what has been. There has been some good progress there, but we have assumed likely better progress in years. So they're the main drivers. So there's probably between those two, there's 650 endpoints in CHRIs.

There's probably another 1,000 endpoints from those U.S. deferred customers that we expect to come through in the year.

So that, and then the final piece is that customer in Australia, although it was a low margin customer, it was a big bad number with 894 endpoints.

So that accounts for the rest of the difference.

Our next question is, the resultant presentation has yet to appear on IRIS.

It's on ASF, so it should be on IRIS, I would think.

Thanks, James. And then the last question for Martin is, is the reduction in the workforce signaling that objects have now peaked?

Yeah, I think that's right.

Yeah, yeah.

We obviously haven't seen the benefits, as we've said, in update restructuring coming through yet, but we see that in the second half of the year. So I think that's a great function.

Thanks. No more questions. Pardon me. We have another phone question registered. This is from Laysen with Jeffrey. Please go ahead.

How large are these contracts in terms of their points?

Yes, the way we mentioned the overall size of these enterprises in the Appendix 4C, so I think it's like 300 and 700 beds. So again, these are land and expand type contracts. We're in there. We've actually already deployed to both, I think, at this stage. So we'll be very much trying to leverage up those contracts over time.

Okay. If I could just one last one in regards to, I guess, our December 15,000 target for live endpoints. Are you able to give a bit of colour of, I guess, what the build-up of that is? Just trying to understand whether this is kind of like a conservative, realistic or aspirational kind of number that we'd be looking at to get to that. Okay, thanks.

Barry, anything else?

Yeah, so, yeah, it's obviously, you know, our best estimate of what it is at the moment, where it is based on

largely scheduled deployments during the second half of the year and you know we obviously have a very strong pipeline that you know we're hoping that will come to fruition over you know with some contracts in very late stage contracts negotiation at the moment so I suppose they're probably the upside to this number that if we can get some of those signed and get them deployed this year then hopefully we'll be able to show through that number but That's what we have on the pad at the moment really in terms of what we expect our project team to be busy on for the second half of the year in terms of those endpoints and hopefully we can get through that number with some bounces of the ball on the pipeline.

got it uh and then one final one just because of slide 31 when we talk about that the uplift uh that's a very nice um you know solid number that we're looking at uh on the ar end point um is that are you able to give any color to the um this breakdown as to how that's kind of pricing up to the increased shelter sorry i said that again where So that ARR to endpoint breakdown, so it goes from 1.47 to 1.5 to 4?

Yes.

Yeah. How much of that is like sell-through versus price increase, if that's something that we should be thinking about?

Yeah, so a major piece of that is, I suppose, the fact that we've taken out some pretty low margins endpoints from that Australian customer and then the new endpoints that we're adding I suppose are at our current prices and are much stronger so that that accounts for quite a piece of that so I suppose the key for us would be to obviously grow the endpoints and then you know each customer to be able to have several endpoints in each room is how we can grow that in growth time

Perfect. Thank you. Good call from me.

You have another phone question from Martin Jacobs with Bell Potter. Please go ahead.

Hi, guys. Yeah, the presentation's come through, and that's about 25 minutes after the conference started. But anyway, so just a query on the live endpoint slide. Two points here. Firstly...

What's the margin differential between the US deployments that have come through and the Australian ones that have been decommissioned?

So we obviously don't give the pricing by jurisdiction of the commercial census, but I suppose that slide 31 that we just referred to would give you an indication of some of the endpoints that we have replaced in Australia with new deployments in the US.

Well, I haven't seen that yet, but you can't give some sort of basic colours to the different... Well, I suppose our standard pricing is pretty similar across all jurisdictions, but, you know, I suppose it just depends on the particular money.

I think it's the 96% number that needs to be printed out. So, my name is James. So the average recurring revenue for new endpoints that were installed during the half were 96% higher than those that were decommissioned.

Okay.

So all in itself. Does that make sense? Yeah, yeah, yeah, yeah. Okay, got it. And the second question is, will you just clarify for me the numbers back at December 24? So when the full year result was reported, live beds were about 12,500. And in this slide, you've got some additional endpoints

and then a revised December 31, 2013. Can you sort of talk to that?

Yeah, so we were previously reporting on beds, and obviously we have additional products that we're now selling which weren't included in that bed number. So that's the step up from that to reflect the fact that we're now reporting on endpoints.

Right, so you sort of have to do a door sign and, like I say, mobile, those kinds of things.

Yeah, door sign, whiteboard, and, you know, you've got more than one endpoint in the room. Right, okay, got it.

Thank you. Well done on the revenue question. Thank you.

Thank you. There are no further phone questions at this time. I'll hand back for any further webcast questions. Thanks, Ashley. We have a final question here from Greg Ward from Trafalgar Capital. Have you seen any significant change in the competitive landscape? Specifically, have any players been able to close the technology leave you have?

No. Hi, Greg. How are you? No, look, I think I'd say that the competitive landscape is pretty consistent with where it's been in prime years. We know that Epic has been pushing Epic TV, which really is a pretty inferior product, bearing in mind that every customer we have in the United States is an Epic customer. So they've obviously looked at Epic TV and decided that it's subpar. But no, I think the competitive environment has been... As I think you know, there's been... A couple of our competitors have changed hands in the last four months, notably GetWell Network and... and I think often times when there's a change of ownership it does have an impact on customer satisfaction. We know that GetWell in particular have been through a very significant reduction in force and I think that is flowing through to some customer dissatisfaction issues that we have been able to avail of. We're in a number of conversations with existing GetWell customers that we're pretty enthused about. So if anything, I think our competitive position is strong and getting stronger. I think we've got real leadership in the AI space with solid foundations which none of our competitors can lay claim to. So I think we're very well positioned for 2026 and beyond.

Thank you.

As there are no further questions today, that concludes our conference. Thank you for participating. You may now disconnect.