Corporate News

Delivery against strategic aims and growth plans for key future markets identified

Kooth (AIM: KOO), a leading digital mental health platform , announces audited final results for the financial year ended 31 December 2021.

Strategic highlights

• Increased reach and uptake of Kooth's services in key markets

― Children and Young People (CYP): 7.1 million are able to access Kooth's products (2020: 6.2 million), with an uptake of 1-in-33 of that population using Kooth (2020: 1-in-36)

― Adult: 3.8 million people now have access (2020: 1.5 million), with eight new whole population contracts signed during the period (2020: five)

• Ongoing growth in Kooth's offering for employees, Kooth Work

― Launched first benchmark to measure mental health of a business

― Strategic focus on frontline and key workers delivered contract wins

• International has seen continued focus, with the US highlighted as a key market to enter in 2022

― US leader onboarded and go-to-market strategy outlined

• Continued recruitment of new employees, with 406 at year end (2020: 306), of which 252 are clinical and practitioners

Financial highlights

• 28% revenue growth in line with expectations, continuing adoption of digital-first healthcare
• >90% of revenue from contracts of 12+ months
• 109% Net Revenue Retention (2020: 107%)
• 89% ARR growth to £1.7m for Kooth Adult
• Gross margin 0.3ppt down with benefit from covid in 2020 due to quicker go live periods and flattening of demand curve offset by improving operational efficiency in 2021
• Strong balance sheet with £7.1m net cash at 31 December 2021, with net cash generated from operations of £1.9m offset by capitalised development costs of £2.5m during the year

Current trading and outlook

The new financial year has started in line with expectations, giving a current ARR of £18 million. Kooth has signed a number of new contracts in 2022, including continued momentum for Kooth Adult with new commissions in Greater Manchester, Norfolk, Warwickshire, and the Wirral. Finally, we are starting to see a positive response to our early steps in the US market.

Tim Barker, Chief Executive Officer of Kooth said :

"Following Kooth's entry to AIM in 2020, we have grown from strength to strength. In 2021, working in partnership with the NHS, over 200,000 people across the UK used Kooth. We have begun to grow in new corporate markets and have embarked on our strategy to establish Kooth in the US. We have achieved this because our mission of making effective, personalised digital mental health care accessible to all is more important now than it's ever been.

"We look to the future with confidence, as underlined by the contracts already signed in 2022. At a time when the NHS is under extreme pressure, our approach to providing free mental health support without barriers or waiting lists has never been more pertinent. With Dr Tim Budden joining as Chief Technology Officer, and Kevin Winter as our North American General Manager, we are well positioned to continue to focus and deliver to help tackle the global crisis in mental health. "

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 ('MAR') (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018).

Notes to Editors

About Kooth

Kooth (AIM:KOO) is the UK's leading digital mental health platform. Our mission is to provide accessible and safe spaces for everyone to achieve better mental health. 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 four services are:

• Kooth: for children and young persons
• Kooth Student: for university and higher-education students
• 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'.