New acquisition published, German company Wellnow
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Wellnow have signed TESLA :).
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Yes, Tesla is new in :).
Spread the word in Finland :).
Will do and done now 
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Is this feeling the tech drop - kind of fear moving into this one with the stock price action since IPO.
Especially after putting a bit of money into mercell
Yes, I feel the Mercell pain too 
. There are similarities based on the stock price development as well the financial model. Both try to create recurring revenue and profit from the scale benefits eventually.
Where Mercell lack is the organic business growth. They need to grow by M&A and have paid a bit too much on latest acquisitions. Cost savings should save this year and create foundation for next level after current business units are under the same systems and integration is complete.
Physitrack on the other hand is growing organically and by M&A. Also they seem to focus more on profitability while growing. Especially the Wellnow should grow faster now after covid restrictions are lifted. Tesla reference is one proof of that.
ARR is now around 12M⏠with Wellnow and PT Courses acquisitions. And they still have around 10M⏠cash and no debt thanks to IPO. P/S is 5,03 with current estimated ARR level. Inflation should not effect too much on cost side unless salaries suddenly go up. And EBITDA marginals are quite good despite being lower than earlier year. New business is not that profitable than original.
But all the tech and growth business selloff have affected PTRK. And also the lack of news lately, I think.
It is a bit shame that EPS went negative last year due the different one time costs. Positive EPS would have shown up on different trackers and filters. Interesting to see the Q1 results and guidance forward.
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New acquisition
Physitrack PLC (publ), a leader in the global digital health space, has today completed the acquisition of UK-based Champion Health Ltd (Champion), a leading workplace health platform based in the UK. Physitrack will pay a total cash consideration of GBP 2.5 million upfront for the acquisition, and a further potential aggregate earn-out consideration of up to GBP 7.894 million over four years, subject to Champion achieving stretching growth and profitability targets in that period. The acquisition concludes a major leap for Physitrack and its new subscription-based wellness offering Access, accelerating the development towards a comprehensive product in holistic health and wellness for SMEs and enterprises.
Financials and Purchase price
Champion exited April 2022 with a revenue run rate of âŹ0.4m and EBITDA margins of roughly 30%, with over 95% of revenue being subscription based. At 31 December 2021, Championâs gross assets were EUR 0.3 million. Initial one-off acquisition and integration costs are estimated to reach around EUR 0.3 million over six months. In the twelve months ending December 31, 2021, Champion delivered revenue of âŹ0.1m.On a standalone basis, Champion is expected to execute growth at significantly above the Physitrackâs communicated organic sales growth target of exceeding 30% annual growth in the medium-long term. Champion is also expected to boost growth across Physitrackâs existing business lines in the medium term.
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Q1 figures released.
Quarter ended 31 March 2022 (January â March 2022)
- Revenue increased by 67 per cent from the comparative period in 2021 to generate total sales of EUR 2.6m (EUR 1.5m). On a proforma basis revenue grew by 29 per cent. This increase was primarily driven through an increase in subscribers on the SaaS platform and continued focus by management on retention, reducing churn.
- Adjusted EBITDA increased by 44 per cent from the comparative period in 2021 to EUR 0.7m (EUR 0.5m), resulting in an Adjusted EBITDA margin of 29 percent (34 per cent). The movement from the prior year comparative was driven by recent acquisitions, as well as the Groupâs current focus on ensuring that the underlying business is structured, with the right systems and processes to support its scale-up ambitions.
- Adjusted operating profit of EUR 0.4m (EUR 0.2m) was generated resulting in a margin of 17 per cent (13 per cent) driven by a fall in amortisation due to the amortisation period of certain historic assets ending.
- Adjusted ordinary and diluted earnings per share totalled EUR 0.02 (EUR 0.02).
- Cashflow generated from operations before the payment of adjusting items equalled EUR 0.5m (EUR 0.5m).
- Churn lower due some actions taken, 1,9% â 1,4%
- EPS -0,01âŹ, Adjusted +0,02âŹ. Focus on growth with good balance on profitability.
- Cash position still solid despite the M&A activity.
- Slight decrease in revenue Q4/21 vs Q1/22 caused by volatility in Physiotest. H2 is stronger half.
- Annualized ARR with Champion Health 11,2MâŹ
Erik Penser comments after Q2
Price target lowered a bit due a bit lower margins and higher profit request on the market.
Fortsatt hög tillvÀxt
OmsĂ€ttningen under Q2â22 uppgick till EUR 3,1m (EUR 1,9m), vilket motsvarar en total tillvĂ€xt om 57% y/y och proforma tillvĂ€xt pĂ„ 31%. PĂ„ segmentnivĂ„ bidrog Lifecare Technology, som stĂ„r för 75% av intĂ€kterna, med 27% tillvĂ€xt mot 25% tillvĂ€xt under H1â22. Virtual Wellness som stĂ„r för resterande intĂ€kter, vĂ€xte med 44% under Q1â22 mot 49% H1â22. Churnen uppgick till 1,3% (1,8%) under det andra kvartalet.
Uppvisar fortsatt god lönsamhet
Periodens justerade EBITDA landade pÄ EUR 0,9m (EUR 0,7m) vilket motsvarar en marginal om 30% (34%). Den lÀgre marginalen var vÀntad, dÄ bolaget tidigare kommunicerat att förvÀrvade bolag har lÀgre marginaler Àn övriga gruppen. FörvÀrven har Àven kostat i form av integrationskostnader. Med fÀrre förvÀntade förvÀrv i nÀrtid förflyttas fokus till lönsamhet och organisk tillvÀxt.
FörÀndrade prognoser och nytt avkastningskrav
Bolagets ökade investeringar samt kostnadsinflation leder till att vi ökar kostnaderna samt sÀnker tillvÀxttakten marginellt i nÀrtid. Vi sÀnker vÄrt motiverade vÀrde till 60 - 65 kr per aktie (75 - 77kr). SÀnkningen beror Àven pÄ ett ökat avkastningskrav som följer analysavdelningens nya ramverk för avkastningskrav, som har som syfte att bÀttre reflektera risken med att investera i mindre bolag.
Full analysis, more details
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Q3 published. Good revenue growth but profitability lacks a bit, likely due the changes and integrations.
Another strong quarter, with top line growth of 72 per cent, significant EBITDA growth, and growing momentum in the Wellness segment
Jul - Sep 2022
· Revenue increased by 72 per cent from the comparative period in 2021 to generate total sales of EUR 3.4m (EUR 2.0m). On a proforma basis revenue grew by 28 per cent. This proforma growth was achieved in both the Lifecare Technology (17 per cent) and Virtual Wellness (57 per cent) divisions.
· Adjusted EBITDA of EUR 0.9m (EUR 0.6m) was generated resulting in an Adjusted EBITDA margin of 27 per cent (30 per cent). This movement was driven by recent acquisitions, as well as the Groupâs focus on continued investment in the two divisions allowing a strong footing for their scale-up ambitions.
· Operating profit after taxation of EUR 0.02m (EUR 0.03m).
· Adjusted operating profit of EUR 0.2m (EUR 0.2m) was generated resulting in a margin of 6 per cent (10 per cent).
· Adjusted ordinary and diluted profit per share totalled EUR 0.01 (EUR 0.01).
· Cashflow generated from operations before the payment of adjusting items equalled EUR 0.5m (EUR 0.1m).Jan - Sep 2022
· Revenue increased by 65 per cent from the comparative period in 2021 to generate total sales of EUR 9.0m (EUR 5.4m). On a proforma basis revenue grew by 30 per cent. This proforma growth was achieved in both the Lifecare Technology (22 per cent) and Wellness (53 per cent) divisions.
· EBITDA increased by 340 per cent from the comparative period in 2021 to EUR 1.2m (EUR 0.3m).
· Adjusted EBITDA of EUR 2.6m (EUR 1.8m) was generated resulting in an Adjusted EBITDA margin of 29 per cent (32 per cent).
· Adjusted operating profit of EUR 0.9m (EUR 0.7m) was generated resulting in a margin of 11 per cent (12 per cent).
· Adjusted ordinary and diluted profit per share totalled EUR 0.05 (EUR 0.05).
· Cashflow generated from operations before the payment of adjusting items equalled EUR 1.7m (EUR 1.7m).Operational highlights
· Continued investment in Access Ecosystem to broaden the Champion Offering for the inclusion of mental health therapy and further acceleration of Champion Health â Physiotherapy.
· Launched the re-branded Champion Health â Nordics and Champion Health in Germany.
· Transition of development team in-house, comprising seventeen highly skilled tech developers. Through a fresh perspective, the new team have fast tracked development of key features including Easylink, EasyPrint and EasyAssign.
· Investment in a new Learning Management System (LMS) forming the backbone of the continued education element of this business line.Henrik Molin, Co-founder and CEO of Physitrack PLC, commented:
âDespite the challenging macro environment for businesses and individuals, Physitrack Group manages to strengthen the position further this quarter as we keep experiencing significant top line and EBITDA growth. Underpinned by its robust business model, the Group is well positioned to continue enhancing offerings in both operating segments. We see a strong momentum in the Wellness segment, with a massive market opportunity ahead of us, further propelled by increasing demands for cost savers such as higher efficiency and less employee turnover.â
Annual recurring (ARR) growing nicely
New Mental Health service published under Champien Health brand, .
Champion Health, part of Physitrack Group, launches Mental Health Therapy in premium product
Champion Health, part of the Physitrack Group, today announces the launch of another integrated care pathway into its premium Employee Wellbeing product â Mental Health Therapy. The new care pathway seamlessly integrates into Championâs user journey as of today and is expected to significantly accelerate the growth of its SaaS offering.
The acquisition of Champion by the Physitrack Group, announced in May of 2022, opened up the possibility for Champion to enhance its holistic wellbeing with Physitrackâs virtual-first care offerings delivered through the Access ecosystem, while also establishing a strong commercial foothold in the corporate wellness market. The global digital health market is projected to be a USD 222 billion market by 2026, according to Facts & Factors Research.[1]
Through the integration of another Care pathway into Champion following the successful launch of Physiotherapy in July of 2022, new growth avenues in SaaS with substantial revenue potential are opened up, and the Groupâs expansion in the UK, the Nordics, Germany and the US is substantially accelerated.
Q4 report published some time ago. Free operating cash flow positive and overall on track to targets.
Market reaction surprised although there are some mixed signals. But overall on better track
Erik Penser analysis:
target price 48-52SEK
PTRK_Q4.pdf (608,5 KB)
Also DNB target set 41SEK to 40SEK, recommendation BUY
Big discrapency in TP and price action since IPO. General tech SaaS - letdown or anything which is missed? Liabilities & market turmoil for subscriptions in an inflation environment i would presume. However I appreciate your posts here.
I have tried. But cannot sell myself on how physiotherapy etc. is better done remote than trough physical meetings for evaluation by the expert.
Yes, there is quite a difference and actually getting very underpriced for what I can see. Stable ARR and positive operating margin.
Main issues are several acquisitions and those costs that have drained the IPO money. But that was the target, so canât argue too much, except for the valuations. Also deferred payments for the acquired companies will put some pressure. Some were cut already and some paid as well.
About the SaaS type of approach on physiotherapy. I found it quite helpful. There was few visits to therapist who gave me access to some trainings to do between the meetings. Videos in the service instead of a piece of paper give better access to rehearsals and are way more practical. That does not cost me anything extra but the service provider pays monthly fee to have access to service.
And it is not only Physiotherapy anymore. Wellness part is growing faster and should have good traction especially in UK.
Per Nordnet, some valuations for scalable and growing SaaS platform provider
P/B 0,83
P/S 1,43
P/E is high, 113 but that does not give objective valuation since all the profit are pushed to acquisitions and growth.
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Fast growing about 30%. CEO stated about double margin at the end of 2023 with 100% topline in the cirtual care leg, not included in est as below :).
Cheap.
23 = EV/EBIT 13
24 = EV/EBIT 6
25 = EV/EBIT 3.5
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Very low multiples here.
Quite interesting that the market is not reacting on CEO:s estimate regarding 100% topline and ebitda margins of 15-20% by the end of 2023 in the wellness leg.
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Finally the share is getting some support level around 14-15SEK.
Maybe some idea of better Q1 perfomance 
Physitrack PLC has adjusted its previously communicated financial calendar for 2023. The date for publication of the Q1 interim report has been changed from 16 May 2023 to 2 May 2023.
Updated financial calendar
2 May 2023 â Interim report Q1 (1 Jan 2023 â 31 March 2023) â new date
3 May 2023 â Annual General Meeting
15 August 2023 â Interim report Q2 (1 Jan 2023 â 30 June 2023)
14 November 2023 â Interim report Q3 (1 Jan 2023 â 30 Sep 2023)
29 February 2024 â Year-end-report (1 Jan 2023 â 31 Dec 2023)
Q1 published
- Solid growth, 101% on Wellness side (!).
- EPS (0,00) and adjusted +0,01.
- No more deferred earnouts this year, 1,6M⏠paid on Q1
- No need to raise funds short-to-mid term
Another strong quarter which achieves record revenue levels and exceeds medium term targets
Jan - Mar 2023
- Revenue increased by 45 per cent from the comparative period in 2022 to generate total sales of EUR 3.7m (EUR 2.6m). On a proforma basis revenue grew by 36 per cent. This proforma growth was achieved in both the Lifecare (15 per cent) and Wellness (101 per cent) divisions.
- Adjusted EBITDA of EUR 0.9m (EUR 0.7m) was generated resulting in an Adjusted EBITDA margin of 25 per cent (29 per cent).
- Adjusted operating profit of EUR 0.1m (EUR 0.4m) was generated resulting in a margin of 3 per cent (17 per cent).
- Adjusted ordinary and diluted profit per share totalled EUR 0.01 (EUR 0.02).
- Cashflow generated from operations before the payment of adjusting items equalled EUR 0.7m (EUR 0.5m).
Operational highlights
- A positive start to the financial year with revenue increasing by 45 per cent against prior year comparative and 36 per cent on a pro-forma basis, exceeding our medium term target of 30 per cent growth.
- The Group continues to focus on driving efficiencies in the underlying profitability of the business and is pleased to see adjusted EBITDA reach an all-time high of EUR 922k generating an EBITDA margin of 25 per cent.
- Despite a success based earnout of EUR 1.6m being paid to previous owners of acquired subsidiaries during the quarter, the Group has ample room in its revolving credit facility and does not expect to require any capital or debt raising in the short to midterm. No further deferred consideration payments are expected during 2023.
Solid as usual. Next move will be focusing on cashflow and marg exp.
Think this will be great!
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