Cogstate has upgraded guidance today in their 1H22 Results. A strong result, exert from report below.
1H22 Financial Results & Business Update
All figures in US$
PCP = Previous Corresponding Period
Cogstate Ltd (ASX:CGS) has today released its Appendix 4D – half year report for the six months ended 31 December 2021 (1H22).
Highlights:
RECORD 1H22 REVENUE OF $23.1M, UP 67% COMPARED TO PCP
• Clinical Trials revenue of $20.8m, up 66% compared to PCP
• Healthcare revenue of $2.2m, up 93% compared to PCP 1H22 SALES CONTRACTS EXECUTED OF $54.5M, UP 141% COMPARED TO PCP TOTAL REVENUE BACKLOG OF $132.9 MILLION AT 31-DEC-21, UP 78% COMPARED TO PCP
• Clinical Trials revenue backlog of $92.0m, up 85% compared to PCP
• Healthcare revenue backlog of $40.9m RECORD EBIT OF $6.1M COMPARED TO PCP LOSS OF $0.4M NET CASH OF $24.6M AT 31 DECEMBER 2021*
• Cash inflow from operations of $1.3m, including movements in passthrough costs paid on behalf of customers. Cash inflow was $1.8m excluding the effect of passthrough costs.
• Net cash increased $2.2m from $22.4m at 30 June 2021, including proceeds from exercise of employee share options of $1.4m FULL YEAR GUIDANCE
• Group FY22 revenue in the range of $44-$47m with FY22 Operating expenses to remain in the range of 31%-33% of revenue, taking FY22 EBIT margins to a range of 20%-24% (up from previous guidance of 15%- 18%).
Commenting on the result, Cogstate’s CEO, Brad O’Connor, said:
“Cogstate is continuing to deliver strong results, with a record level of sales, revenue and profitability.”
“Clinical Trials sales contracts executed during 1H22 were $54.5m, up 141% on the prior period. The growth reflecting the continued increase in investment in Alzheimer’s disease research by large pharmaceutical companies. The result takes Cogstate to a record future contracted revenue amount of $92 million in Clinical Trials, an increase of 85% from a year ago. At 31 December 2021, Cogstate was working on 117 clinical trials, across more than 30 different indications and more than 45 customers. We remain positive on the future outlook given our confidence that large pharmaceutical companies will continue to invest in Alzheimer’s disease research and given that Cogstate is well positioned as the industry moves to more virtual (decentralised) clinical trials. We have added a dedicated Channel Manager to our business development team as we seek to expand our sales reach across the industry.”
“In our Healthcare segment, our partnership with Eisai continues to develop, with a primary focus on product launch. In January 2022, Eisai announced that Cogstate technology, branded as CogMate, will be marketed directly to consumers in Taiwan and Hong Kong, targeting municipalities and corporations. This is the first release of Cogstate technology in the Asian region, excluding Japan. Similar launches are expected in additional countries, including the USA, in 2022.”
“In Japan, where NouKNOW has been established for some time, over 26,000 assessments have been performed through initial engagements with municipalities and businesses seeking to offer employees, residents, and customers easy-to-use digital solutions for understanding their brain health. Additionally, from February 2022, the Raku-Raku smartphone (developed by FCNT LIMITED) will be shipped with a version of NouKNOW pre-installed on the device. The Raku-Raku smartphone is marketed to the senior population in Japan and has shipped more than 7 million units.”
“We continue to remain positive on the future growth prospects in both Clinical Trials and Healthcare segments. The growing investment in Alzheimer’s disease research, along with the industry shift to decentralised trials, uniquely positions Cogstate for future growth. In addition, Cogstate, through its partnership with Eisai, is uniquely positioned to provide highly scalable, scientifically proven, digital tools required to identify the earliest signs of memory impairment, be it in support of new drugs coming to market, or for early diagnosis which is critical for meaningful intervention around care planning and symptomatic treatments.”
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