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Physitrack PLC - Physiotherapy and Telerehabilitation SaaS

Software/SaaS
#1

Physitrack, founded in 2012, is a global digital healthcare provider, mainly focused on the B2B physiotherapy and musculoskeletal care market.

web site: https://www.physitrackgroup.com/

Physitrack PLC is is a UK based company with roots in Nordics, other founder member Henrik Molin is from Sweden.
Physitrack had it’s IPO on First North Premier Growth in Sweden in June -21. IPO was open only to Swedish and Finnish, which is likely one reason there was no open chain yet here.

About

Physitrack is a global digital healthcare provider with staff on four continents, customers in 17 time zones, and patients in 187 countries, mainly focused on the B2B physiotherapy and musculoskeletal care market.

The company has two business lines and active M&A program:

SaaS offering - tailored to both small and large healthcare establishments

The Physitrack technology platform digitizes the entire patient journey, from initial contact to patient interactions and outcomes tracking, empowering practitioners to deliver better care.

The SaaS platform is offered through a cloud-based software suite that can be tailored by customers to specific patient needs and is also offered as a white label solution.

The Virtual care offering caters to payers such as insurance companies and hospital operators through in-house physiotherapists using Physitrack technology in parallel with hands-on care as needed with specific patient types.

Customers pay us monthly or yearly recurring subscription fees for access to our technology.

Virtual care offering - Leverages world-leading tech to provide excellent care

Following the acquisition of Rehabplus in 2021, Physitrack has extended its offering from a pure technology offering to also include virtual care, catering predominately to corporate payers that pay us based on each care episode.

We consider there to be a paradigm shift ongoing in how care is delivered and perceived. Through strategic initiatives and acquisitions, Physitrack deems it prepared to monetize this opportunity.

M&A program - accelerating growth and technology edge

Physitrack’s organic growth is complemented with acquisitions, serving to increase the user base or for new market entry. Furthermore, we have identified acquisition targets that can add value to Physitrack’s product range, unlock certain market segments and ensure growth of Physitrack’s enterprise customer base.

Material

Q2/2021 report

Ja Q2 presentation material

IPO Prospectus

Q2 new significant partners
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growth have exceeded the expectations, even taken M&A in to account
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Very profitable but M&A costs took the cash flow temporarily negative
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Global market

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Physitrack is part of telehealth market that is going to 10 fold in less than 1 years
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Telerehabilitation market is more niche and where Physitrack is strong and less competetion. Growth is remarkable there as well
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Some comptetitors from IPO prospectus
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over 50% conversion rate from trials !!

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History:

  • | 2012 | The company is founded by Henrik Molin and Nathan Skwortsow.
    The idea for Physitrack came about in late 2011, when a relative of Henrik was given a paper home exercise handout after a knee operation and suggested there should be an app for it.
  • | 2013 | First version in English and Dutch with 180 exercises launched at year-end.
  • | 2014 | First SMB customers in the Netherlands following endorsement agreement with a large insurer, first Enterprise customer signed. Launch in Australia and the UK.
  • | 2015 | Launch in the US and Canada. Accepted into the Apple Mobility Partner program, with Apple’s designers re-defining UIUX. Launch of Apple re-designed solution.
  • | 2016 | Launch of Physitrack Telehealth and PhysiData.
  • | 2017 | Launch of Physitrack AI.
  • | 2018 | UK government innovation grant won for Physitrack Telehealth.
  • | 2019 | First major US hospital system sale.
  • | 2020 | 173 percent annual growth. Launch of M&A program, acquisition of major competitor Physiotools OY.
  • | 2021 | Continued M&A activity, acquisition of Rehabplus and expansion into Virtual care.

Some financials from H1/2021 report

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3 Likes
#2

New acquisitions on Q3
https://www.physitrackgroup.com/investors/press-release?slug=physitrack-plc-publ-physitrack-acquires-fysiotest-enhances-product-offering-and-expands-addressable-market

And DNB target 85SEK, recommendation Buy
https://articles.finwire.com/FWS0066646-physitrack-lyfter-pa-dnb-analys

#3

Q3 results are out

As expected, EPS negative due the M&A and IPO costs.

Organic growth above 40%
Revenue growth around 100% YoY

Third quarter 2020/21 (June 2021 – August 2021)

  • Revenue of EUR 2.0m (1.0m) for the quarter ended 31 August 2021. An increase of EUR 1.0m or 104 per cent compared to the same period last year.
  • Proforma[1] revenue growth of 22 per cent for the quarter ended 31 August 2021 compared to the same period last year;
  • This growth was achieved in all businesses:
    • 22 per cent revenue growth of the existing Physitrack business compared to the same period last year against a strong prior year comparator
    • 10 per cent revenue growth of the acquired Physiotools and Mobilus (“Physiotools”) businesses on a proforma basis
    • 96 per cent revenue growth of the acquired Rehabplus business on a proforma basis;
  • 3 month adjusted EBITDA[2] of EUR 0.7m (0.6m) increased by 23 per cent compared to the same period last year;
  • Adjusted EBITDA margins[3] of 34 per cent, a decrease from 57 per cent compared to prior year due to lower margins of recently acquired companies;
  • Loss after tax of EUR 0.9m (0.4m profit) for the quarter, due to incurring one off IPO and M&A costs.
  • Earnings and diluted earnings per share of EUR -0.07 (EUR 0.04).

Churn is very low and ARR growing strongly, Q2 7,2M€ to Q3 7,5M€
H2 is stronger period on order intake.

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IPO costs were around 1,1M€. After the share issue balance sheet is very strong and no debt
Also a new acquisition was made at the end of September. Small in scale but enables SaaS offering in the future globally.

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1 Like
#4

Ett väldigt spännande bolag som jag tror kommer vinna väldigt mycket mark framöver.

1 Like
#5

Nedan finner ni en presentation.
Bolaget prickar av det mesta, hög tillväxt, SaaS, globala, grundare med skin in the game ( äger 47%).

1 Like
#6

Thanks, seemed to be good presentation about the business.
Erik Penser have also targets similar to DnB, fair valued at 83-85SEK.

Swedish language is not my forte, but materials are mainly familiar from previous due diligence.

Physitrack seem to have been flying under any radar lately, hence the valuation fell down. Some news would be welcome.

There are also still good amount IPO money for further M&A activity. That cash also goes into integration of services together but still should be targets in pipeline based on comments.

1 Like
#7

Penser analysis, freely downloadable

PHYSITRACK20211118.pdf (3,7 MB)

https://epaccess.penser.se/bolag/physitrack/

#8
#9

A fast-growing company with high margins in an industry that is growing strongly and consolidating, a company that in many cases has shown that they are good at raising ARPU.

A management with skin in the game, released nothing in connection with the IPO, they own about 47%.

I think the virtual part will grow strongly in the future. It will be exciting to see what they do with the cash of 165mSEK in the future.
The last line has been weighed down by IPO / M & A costs.

1 Like
#10

Great analyze -

1 Like
#11

Här finns en fin presentation på svenska.

#12

Here is another podd in Swedish :).

#13

DNB is out with a fresch analyze, 85SEK as fair value.

DNB ute med en färsk analys gällande Physitrack!
Price - 85SEK!
We expect 32% organic sales growth YOY in 2022e and a 33%+ EBITDA margin. Physitrack is only at the start of its journey, emerging as a leader in the telerehabilitation market.
Disc - äger! Kan ha misstolkat allt!

1 Like
#14

I have no access to DNB analysis, any other insight than sales and EBITDA expectations?
85SEK is kept as fair value, previous was the same, I think.

News flow have been quite low on PTRK. Either way there should be significant upside as soon the growth story is intact.

#15

Great work @cfc2! We need more company introductions on the forum!

1 Like
#16

Thank you @Brutal . We have similar forum in Finland and the habit for decent initial company analysis comes from there :blush:

Physitrack Q4 report is out with strong but expected figures.

Additionally ARR has grown already to 10,4M€ at the end year.

Based on November 2021 actuals, annual run rate “ARR” of SaaS subscription revenue was EUR 7.7m (Q3 2020/21 EUR 7.5m), exiting the year, annualised revenue including virtual care is EUR 10.4m.

Financial highlights for the fourth quarter and twelve month period ended 30 November 2021

Fourth quarter 2020/21 (September 2021 – November 2021)

  • Revenue of EUR 2.4m (1.0m) for the quarter ended 30 November 2021. An increase of EUR 1.4m or 165 per cent compared to the same period last year.
  • Proforma revenue growth of 47 per cent for the quarter ended 30 November 2021 compared to the same period last year.
  • This growth was achieved in all businesses:
    • 47 per cent revenue growth of the existing Physitrack business compared to the same period last year against a strong prior year comparator
    • 11 per cent revenue growth of the acquired Physiotools and Mobilus (“Physiotools”) businesses on a proforma basis
    • 150 per cent revenue growth of the acquired Rehabplus business on a proforma basis;
    • 122 per cent revenue growth of the acquired Fysiotest business on a proforma basis;
  • 3 month adjusted EBITDA of EUR 0.8m (0.4m) increased by 106 per cent compared to the same period last year;
  • Adjusted EBITDA margins of 32 per cent, a decrease from 41 per cent compared to prior year due to lower margins of recently acquired companies;
  • Profit after tax of EUR 0.3m (0.1m) for the quarter.

12 Month period ended 30 November 2021 (December 2020 – November 2021)

  • Revenue of EUR 7.7m (3.1m) for the year ended 30 November 2021. An increase of EUR 4.6m or 153 per cent against the same period last year;
  • Proforma[1] revenue growth of 36 per cent for the year ended 30 November 2021 against the same period last year. This growth was achieved in all businesses:
    • 46 per cent revenue growth of the existing Physitrack business compared to the same period last year
    • 11 per cent revenue growth of the acquired Physiotools and Mobilus (“ Physiotools” ) businesses on a proforma basis
    • 75 per cent revenue growth of the acquired Rehabplus business on a proforma basis
    • 122 per cent revenue growth of the acquired Fysiotest business on a proforma basis;
  • 12 month adjusted EBITDA[2] of EUR 2.6m (1.6m), increased by 58 per cent compared to the same period last year;
  • Adjusted EBITDA margins[3] of 33 per cent, a decrease from 53 per cent compared to prior year due to previously communicated lower margins of recently acquired companies;
  • One-off IPO and M&A expenses were incurred of EUR 1.6m, resulting in a loss after tax of EUR 0.6m (0.6m profit) for the 12 months.

New acquisition from US market.

Not so cheap valuation but good number of current clients and potential for cross-selling.

https://www.physitrackgroup.com/investors/press-release?slug=physitrack-acquires-us-based-e-learning-provider-ptcourses-com-diversifies-product-offering-and-accelerates-us-market-penetration

1 Like
#17

Really nice and cheap, will open many many doors.

#18

DNB raise TP to 87SEK

TP till 87SEK i PHYSITRACK.
To hit the ground running in the US!

Physitrack continues to build its credentials by
showcasing rapid organic growth coupled with M&A at
high profitability, leading us to lift our 2022–2023e adj.

EBITDA by ~2%. We see a sound buying opportunity
and highlight the fundamental attractiveness of
Physitrack’s leadership in the nascent telerehabilitation
industry, and a long runway for 30%+ organic growth at
expanding margins, while emerging as the industry
consolidator. We reiterate our BUY and have lifted our
target price to SEK87 (85).

1 Like
#19

Positive news from DnB :partying_face:

also Erik Penser updated analysis. Keeps fair value at 85SEK

PHYSITRACK20220127.pdf (2,5 MB)

1 Like
#20

From minute 35 they talk about Physitrack again.

1 Like