Corporate News
Half Year Results
27 September 2022
Strategic momentum and demand; underlined by revenue growth of 13%
Kooth (AIM: KOO), the UK's leading digital mental health platform, announces unaudited half year results for the six months ended 30 June 2022. All figures relate to this period unless otherwise stated.
Strategic Highlights
- Number one provider of mental health access for children and young people (CYP) to NHS England
- Kooth Adult contract wins increase access to 7.2 million people (2021: 3.0 million)
- Kooth Work momentum with new contracts, focusing on frontline and key workers
- Ongoing investment in business development, platform investment and US expansion
Financial Highlights
- Revenues up 13% to £9.0m (2021: £8.0m)
- Annual Recurring Revenue (ARR) up 11% to £18.5m (2021: £16.6m)
- Strong gross margin of 68.4% (2021: 69.4%)
- Adjusted EBITDA of £0.5m (2021: £1.1m) reflecting US setup and business development investment
- Recurring Revenue 95% (2021: 94%)
- Net Revenue Retention 107% (2021: 116%)
- Robust balance sheet; net cash of £8.3m supports investment for long-term growth
Post-Period End Highlights
- Significant, strategic pilot contract (expected to be formalised in the coming days) awarded by the State of Pennsylvania, USA for $3 million, supported by new, in-market hires including counsellors, technology specialists and business development personnel
Financial headlines
Six months ended 30 June 2022 £'000 | Six months ended 30 June 2021 £'000 | Change | |
Total revenue | 9,022 | 7,964 | +13.3% |
Recurring revenue | 18,483 | 16,617 | +11.2% |
Gross profit | 6,170 | 5,527 | +11.6% |
Gross margin | 68.4% | 69.4% | -1.0ppt |
Adjusted EBITDA | 539 | 1,130 | -52.3% |
Profit/(Loss) after tax for the period | (342) | 38 | -1,000% |
Cash generation | 1,231 | 976 | +26.1% |
Cash position | 8,310 | 8,799 | -5.6% |
Earnings per share (diluted - £) | (0.01) | 0.00 |
Tim Barker, Chief Executive Of Kooth Said:
"Kooth has strong momentum for its mission to make effective, personalised mental health care accessible to all. Our platform is now freely available to more than 15 million people in the UK providing early intervention support for adults and making us the largest single access provider for mental health support for under 18s. This is a testament to the reach of our partnership with the NHS. In the US, post period end, we have won our first major contract, a significant milestone within a year of establishing Kooth North America, as well as a growing pipeline of opportunities with State Governments and Medicaid providers in a market that has already announced in the year to date $6 billion of additional youth mental health funding.
Our pipeline and strong retention rates support our confidence that Group revenue for the full year will be in line with the range of market expectations. In the long-term, we anticipate that our robust balance sheet will continue to enable us to invest to meet increasing demand for Kooth's platform. We expect to continue our investment in talent and technology to scale up and help tackle the global issue of mental health, which remains one of the world's biggest challenges."
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this announcement via a Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain. The person responsible for this announcement is Sanjay Jawa, CFO.
Enquiries:
Kooth plc | ||
Tim Barker, CEO | ||
Sanjay Jawa, CFO | ||
Panmure Gordon, Nominated Adviser and Joint Broker | ||
Corporate Finance: | +44 (0) 20 7886 2500 | |
Dominic Morley, James Sinclair-Ford | ||
Corporate Broking: | ||
Erik Anderson | ||
Stifel, Joint Broker | +44 (0) 20 7710 7600 | |
Ben Maddison, Nick Adams, Nicholas Harland, Richard Short | ||
FTI Consulting, Financial PR | ||
Jamie Ricketts, Alex Shaw, Usama Ali | ||
About Kooth plc:
Kooth (AIM:KOO) is the UK's leading digital mental health platform. Our mission is to make effective, personalised mental health care accessible to all. Our platform is clinically robust and accredited to provide a range of therapeutic support and interventions. All our services are predicated on easy access to make early intervention and prevention a reality.
Our three services are:
- Kooth: for children and young people
- Kooth: for adults
- Kooth Work: for employees
Kooth is a fully safeguarded and pre-moderated community with a library of peer and professional created content, alongside access to experienced online counsellors. There are no thresholds for support and no waiting lists. Currently, Kooth sees over 4,000 logins a day.
For adults, Kooth operates across distinct locations and serves specific cohorts, including parents, teachers, victims of crime, and those who have suffered from or continue to experience domestic violence. It is also offered as a benefit by a number of corporate organisations delivering anonymous digital mental health support services to employees.
Kooth is the only digital mental health provider to hold a UK-wide accreditation from the British Association of Counselling and Psychotherapy (BACP).
In 2021, Kooth was named 'Best Newcomer' at the European Mediscience Awards, winner in the category of 'Tech for Good' at the UK Tech Awards and recognised as the 'HealthTech Pioneer of the Year' at the UK Business Tech Awards for its role in 'Supporting the Nation's Mental Health'.