Forum Topics BMT BMT Growth opportunity and moat
a month ago

Just watched the recent interview, some fantastic questions lobbed kindly at the company, great work. I'm in the health data / innovation / clinical risk / AI space for work. On reflection of the growth opportunity I think the moat around the clinical decision tools may have been a bit overstated. Health round table is an absolute bastion and a great foundation of stable revenue.

The other three offerings I think don't have a great competitive advantage, the main risk being that when a hospital or a health service sign up for an electronic medical record platform these features are essentially built in. In particular the clinical deterioration alert is a highly contested space and difficult to get market share as an independent service. The AI is based on a logistic regression and I think their are more advanced predictive models that could be better suited for this purpose.

I'm watching with interest but haven't taken a position for these reasons.


a month ago

Just finished watching myself! Great interview. This is very useful insight. I had similar questions around whether they have a sufficient moat.

Information which I'd love but have come up short on:

  • Competitive landscape and the valuations of said competitors. Altera seems to be the main player in Australia but have not dug into financials.
  • What the sales cycle currently looks like where the business has a foothold. I read on another straw that 6+ month trials are a necessity at the moment before closing. I'd be intrigued to understand how successful they are at closing customers at various stages in the funnel as well as how the sales cycle improves as their market share in a particular region grows.
  • What the primary objections of customers who they do not close or who churn are.

The other elephant in the room seems to be the lack of on-market buys for the directors. What do they know that we don't?

Nevertheless, their ratios are improving and I can see a solid high-margin business in the making. Enough for me to take a speculative position on my brand new SM portfolio. Holding out in RL though. :)