Physitrack PLC

Hello and welcome to Physitrack's Q4 2022 results webcast. I am Henrik Molin, the CEO and co-founder of Physitrack, and I'm joined by Charlotte Goodwin, Physitrack's CFO. So let's get going. We will give you a quick summary of Q4, and I will walk you through some of the more details there of the business and the quarter and also for the full year. Charlotte will walk you through the financial results. We'll revisit the strategy and outlook. and then you can ask questions using the Q&A function on your Zoom screen. The chat function has been disabled, so it's the Q&A function. That's your role to pleasure there for asking us questions. So let's get going here, looking at the quarter as a summary. So 57% of combined growth, organic, inorganic, organic, and looking at the performer growth, Largely in line with our medium-term financial goals, 27% performance growth there in the quarter compared to prior comparatives. 3.4 million euros of EBITDA increased by 31%. So a stellar quarter. It's the biggest quarter so far in history. And we keep being on a very, very nice trajectory here for both business lines. Some highlights on those on the left side there. Wellness, absolute record performer growth and performance. in the division as a whole. These are home run performances by everybody in that division. Just one exception to that, which you know I'll speak some more about that in a moment. But looking at the German division, well now 386% and top line revenue growth on an organic basis. Champion Health 224%, Champion Health plus 139. This is really nice explosive growth. that these fantastic entrepreneurs are achieving. It's a great market for us, and we keep delivering into that, which is fantastic. Speaking of something that hasn't worked according to expectations this year, physio test hasn't performed the way that we expected it to, but we have some Great firepower there in terms of management that has now stepped in to lead that business. Christopher Svensson, our previous Nordic Sales Director for Physiotest, is now the Managing Director of Physiotest. And we have high hopes that we'll see a return to growth there after a very, very challenging start of the relationship with us. Some interesting things in their pipeline. And we have full confidence in Christopher and Alex Stilou as the dream team that's going to That's going to accelerate this going forward. And, of course, as you saw, I was very, very proud to play that video for you when you look at the self-service and the SME launch of Champion Health. This really opens up product-led growth for Champion Health, which was previously only enterprise sales focused for companies. 500 employees and up, a little bit more on that later on. But I found really great, impressive play on that video because it's really about what we want to do to bring well-being widely across the world, not just to big companies. On the right side there, Life Care, some interesting steady performance there from that division, nice growth, really, really high margins. But looking at some of the drivers there and what's going on under the hood, well, very, very happy about the PT courses rejuvenation with Thinkific coming in and delivering the new platform there. And that sets us up for some nice bundle offerings and continued nice user-based growth. And, you know, we've already added a couple of thousand new customers there with the subscription model, and there's more to come. But the new digital content and the platform, the new platform is launched in the next couple of weeks. This is really giving us some interesting tools for growth in the U.S. market. And also something that's been very promising, the GoMobulus platform.

we have now a platform to create which we would simply product will come in the future.

So, in the whole view, the wellness division is now 31% of the business, and I can tell you two years ago, almost exactly, it was 0% of this company, and the way that that's been built under the leadership of Ryan Ebert, the way that things have progressed there makes me incredibly happy. It's been a great way to diversify, to cater to the needs of individuals around the world and not just care providers and being a secondary provider into end individuals. That's what makes us immensely proud. And there's more to come there, but very, very explosive growth. There's a margin expansion progress there. So we started again from absolutely zero two years ago, where we are now. It gives us very high hopes of where the wellness world is going to sit as we try to come forward. And just a snapshot here of where we are size-wise, 13.7 million euro run rates. Life care is now 9.4 million. Wellness is 4.3 million of that. It's been a very, very nice journey, and there's more to come on that journey as well going forward. Looking quickly at the life care side of things, I'll give you some of the business highlights of the quarter, but just to remind you, it is a holistic product ecosystem that we put into the hands of healthcare providers around the world. from small guys to be the one-person high street physio guy in Tasmania, Australia, to be the mega clinic, you know, thousands of practitioners in Canada and everything in between, 15 languages. Some of the relationship starts very small with exercise prescription technology, the second box on the left. Some big, more advanced customers look at analysis. They look Look at statistical tools and all of the white labeling, which is the custom operation there on the left. And, of course, PT Core, which is the e-learning component of that strategy so that we can make sure that people can keep and renew their physiotherapy licenses, occupational therapy licenses in the U.S. market. So development on the right side there, continued growth in the user base and the ecosystem. So that's very nice to see. Below that graph, you see that the journal has been created. And that's just a lot of things on the platform with our customer value task force and another initiative that may use data and user patterns to draw conclusions about things that we need to do to make the journey better and onboarding better and so on. So that's really paying off. And as a reminder, about a year ago, that journey was about twice that. And so it's been a really, really nice journey there. On the left side there, a couple of things there, that simplification of the division. So just things like having that holding company overlay to PhysioTools with Tanila Holdings. That's now gone. We've merged those two to simplify. I mentioned the Mobulus integration with PhysiTrack. That's also been taken care of. Mobulus came along for the ride when we acquired PhysioTools, and was a great participant in that. But we are... Better off as a more simple product range in terms of cost base, but also the experience and innovation, etc. So very, very nice. That's all been made possible by a very, very strong development team that's now in-house. It's been a great journey. with that engineering team. And a lot of them came from a multi-billion dollar company called Zendesk. It was very humbling to see these guys come aboard with us and to see us as a safe haven, see us as a great place for growth and to achieve your dreams of really contributing to elevating the world's wellbeing. Even though you come from a big, big company like Zendesk, well, it's a nice place to come with his track as well. So that's been very, very good. And a lot of these boosts that we've seen to product-led growth, a lot of the methodology that underpins enterprise sales now, that wouldn't have been possible if we hadn't had that team on board. So very happy about that. PT courses we spoke about, and there'll be more to come with that platform going forward. Just moving on to wellness now, you see an echo here of that strategy on the life care side of things, holistic, everything that you need in one place. Make sure that you don't need to go to a separate provider if you have a specific need. You try to cater to all of that in the same beautiful ecosystem powered by Champion Health. So that's really the strategy. And looking at the development of that division, nice, strong growth, 54% year on year. Looking at the right side of things, just filtering for the physio test challenges that we have had with that performance, actually the underlying growth of those other companies on an aggregate basis, 202%. And that's organic over the last 12 months. This is really, really a high momentum. It's a rocket ship of a division in terms of execution. And we're really seeing those in the numbers. There's more of that to come. And it's been really, really nice seeing the emergence of that division. It's great to entrepreneurs working together, achieving those kind of numbers for us. And so we've had some nice events over the years.