In This Article:
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Total Revenue: 283 million, slightly down year-on-year.
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Recurring Revenue Growth: 6% increase, accounting for 75% of total revenue.
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Adjusted EBITDA Margin: 19%, slightly lower than the previous year.
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Adjusted EPS: 0.35.
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Free Cash Flow: Improved compared to last year, 56 million.
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Net Debt: Increased to 777 million from 698 million.
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AIS Segment Revenue Growth: 1% increase, with recurring revenues up by 5%.
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Hospital Segment Revenue: Down 4% year-on-year.
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Pharmacy Segment Margin: Strong margin of 36%, up 4 percentage points from Q3 2023.
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Guidance for 2024: Organic revenue development between -2% and 0%; adjusted EBITDA between 220 million and 250 million; free cash flow between 40 million and 60 million.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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CompuGroup Medical SE & Co KgaA (CMPUY) has launched innovative AI and cloud-based solutions, demonstrating strong innovation capabilities.
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Recurring revenues grew by 6% year-on-year, indicating a strong and loyal customer base.
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The company has improved its service and support functions, significantly increasing customer satisfaction metrics.
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Operational excellence initiatives are underway, focusing on improving internal processes and enhancing customer interactions.
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The company is leveraging its strong position in digital healthcare across 19 countries, with a focus on expanding AI and data-driven solutions.
Negative Points
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Total revenues slightly declined year-on-year due to lower one-time revenues and project delays.
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Adjusted EBITDA decreased, primarily due to continued investments in R&D.
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The company faces challenges in predicting the timing of one-time revenues, impacting financial forecasts.
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There is uncertainty regarding the timing of regulatory initiatives like the Hospital Future Act and Secure, affecting revenue projections.
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Net debt increased due to share buybacks and acquisitions, raising concerns about leverage levels.
Q & A Highlights
Q: Can you provide more details on the delay of projects impacting one-time revenues and the split between the former CHF and standalone HIF segments? A: The delay in projects is primarily due to the Hospital Future Act and larger project delays. We no longer provide a split between the AIS and ZHS segments as they were merged at the beginning of the year. Our focus on deleveraging is primarily through organic growth and working capital management, though single asset sales cannot be excluded. Daniela Hommel, CFO