Beamtree Holdings Limited (ASX:BMT) a leading provider of AI decision support and data insights solutions, announced today a key strategic partnership with Lean, Saudi Arabia’s leading provider of innovative health solutions. This strategic partnership follows the successful completion of Beamtree’s first major contract to support data transformation in public health services of the hospital network data analytics audit for Saudi Arabia.

Beamtree state it will extend their ability to provide further products and services into Saudi via this strategic partnership with Lean.

Beamtree has now received full payment for phase 1 of the data transformation project of US$1.45m (AU$2m). The next phase is the proposed implementation of Beamtree’s products across Ministry of Health hospitals and then more broadly across public and private hospital networks (over 450 hospitals in total).

The partnership with Lean is aimed at strengthening their offering in the Saudi market. The new partnership with Lean will promote Beamtree products and services in the Kingdom of Saudi Arabia and follows the successful completion of phase 1 of an audit of public hospitals in Saudi. The audit conclusions of phase 1 included strategic recommendations to improve analytics and use of important patient healthcare data for better patient outcomes, reduced wastage and operational efficiency.

Beamtree is a pioneer of AI data and decision support services and operates in 25 countries in the world – Saudi Arabia has put data and decision support at the heart of Vision 2030, its major national health reform program.

Lean is Saudi Arabia’s leading health technology enterprise, working as a key enabler of innovative health solutions in Saudi Arabia. Lean is contributing to digitalising the Saudi health ecosystem and boosting the health sector services by launching sustainable operational products and stimulating partnerships between the public and private sectors.

The partnership aims to support health services in Saudi Arabia improve the quality of hospital data and analytic insight through the audit and automation of clinical record classification. 

Beamtree Market Update released to the ASX on 17th May 2022

Beamtree Holdings Limited (ASX: BMT), provides AI decision support and data insights solutions.

The company confirmed new contract wins since the start of 2022 are worth $16m total contract value and around $3.0m per annum in revenue over the next 12 months.

Also stated that there has been accelerated international growth with sales of products and capabilities in the period, with Beamtree’s services now operating in more than 20 countries.

Financial Summary for 1H FY2022

$7.1 million which is +91% growth in group’s revenue and 24% YoY growth exc. acquisitions

Recurring revenue 85 % Exceeded management forecast

Net cash of $6.5 million

ARR (annual recurring revenue) $16.8 million as at 31 Dec 2021

Operational EBITDA loss of $0.5 million . Management explained that this loss was due to Investment in headcount for sales, product and technology capabilities.

Customer Renewal 100% globally.

BMT-Business-Update.pdf

BMT-Business-Update-Presentation.pdf

Beamtree (ASX :BMT) held its AGM today. It provided 1st Qtr. FY22 Trading updates as part of the AGM presentation.

Trading update highlights for this last quarter include the following;

• Key new contracts including major strategic partnerships with Southern Health in New Zealand to implement data capture technology and the strategic partnership with Central Adelaide Local Health Network (CALHN) in South Australia to implement its decision support platform.
• FY22 Q1 Revenue Growth +23.1% PCP (excluding acquisitions)
• 100% retention rate of contracts in the first quarter.
• Delivered key contract milestone to deadline in the Kingdom of Saudi Arabia where it is running a national audit of public hospitals.
• Launched the Global Health Comparators program, a collaborative led by its international hospital members and committed to improving patient-centred care worldwide. The program will integrate the successful Global Health Data@Work initiative into Beamtree, including its existing membership of eight hospitals from the United States, England, Italy, the Netherlands and Belgium. The initiative leverages the capabilities of their new acquisition Potential(x) – an early strategic synergy

Beamtree has today announced a strategic partnership with the Central Adelaide Local Health Network (CALHN). The partnership will see the implementation of RISQTM (the company's data quality product) in four Adelaide hospitals, the launch of a new trial using RippleDown (their AI decision support product) and the Ainsoff Index (which is used for early detection of deteriorating patients). The aim is to obtain greater health data accuracy and the management of potential hospital-acquired complications. Over the next six months, there will be a new trial that uses RippleDown to support clinical decision making and integrate the Ainsoff Index into the Electronic Medical Record (EMR). This is the first public hospital implementation of the Ainsoff Index since Beamtree acquired Ainsoff Pty Ltd in August 2021.

Beamtree will acquire 100% of the shares in Potential(x) Holdings Pty Ltd (“Potential(x)”), a complementary and market leading specialist health & human services data analytics firm.

Potential looks like a very good fit for Beamtree and the terms of the aquisition look very good from a Beamtree shareholder perspective with relatively small dilution and only 7.4 times Potential's operational EBITDA.

BMT management growth intent was clear during their FY21 presentation. The growth by acquisition journey, as always, will be an interesting ride. Content to stay on board with this one for the time being. 

Announcement key points below:
• The acquisition will materially increase the scale, capability and global customer reach of Beamtree. On a pro-forma basis FY21 Revenue is circa $20m of which is 82% is recurring. The Beamtree team will more than double to 110+.
• The acquisition is fully funded with consideration to Potential(x) shareholders comprising up to 30m shares in Beamtree and $4m cash. This implies an Enterprise Value for Potential(x) of $19.6m on a debt free, cash free basis (1.8x F21 revenue and 7.4x FY21 operational EBITDA).
• Potential(x)’s Managing Director and majority shareholder, Duane Attree, will join Beamtree’s executive team and become a substantial shareholder. Potential(x) shareholders will own 9.6% of Beamtree. Management and the Board of Beamtree will own 34% of the company.
• The acquisition increases Beamtree’s pro-forma FY21A EBITDA by 86% with 9.6% dilution to existing Beamtree shareholders.
 

Renewal of Key Contracts & New Contract Wins