Earnings Call: H1 2025

Sep 2, 2025

Currently, Aquila Plus moved from plan to proof, with new wins in Colombia and Mexico contributing to new ARR. While radiology services improved margins through repricing and automation. I will start with what the business is and the scale we now operate at. ImExHS is a medical imaging software and services company focused on making high-quality radiology more efficient and accessible. We serve hospitals, clinics, and diagnostic centers with a cloud-native RespEx AI suite. Our product vision is to embed intelligent workflow, analytics, and AI throughout the imaging chain to cut costs and turnaround times, always serving our customers with the best post-sale support, the highest security standards, and fastest implementation times of the market we operate. We operate two businesses: one medical imaging software company providing RespEx, Universal Viewer, and AI, and a radiology services business. The software business is subscription-based and cloud-led, and the services use our platform to deliver on-premises and remote reporting. On slide three, we have some figures. On 30 June, we did complete more than 549 installed sites, conduct 8.9 million of new imaging studies per year, and serve 3,400 monthly specialist users. Our patient portal has 6.3 million users, and we work with 25 partners across 15 countries. Finally, the Net Promoter Score is 58. These metrics reflect a broad and active install base that underpins ARR growth and cross-sell potential. Slide five chart tracks footprint and utilization since 2020. We now operate more than 549 live sites across 18 countries, processing more than 2.1 million studies per quarter, consistent with the 8.4 to 8.9 million annual drawn rate on this chart. This picture is clear: footprint and number of studies grew every year, and the user base expanded materially, driving software adoption and ecosystem leverage. On slide five, we operate in 18 countries with certifications across multiple geographies that support high-quality operations and production standards, also confirm the scalability of our product. This reach fits our pipeline and de-risk concentration. Turning to slide six, financial highlights: revenue of $13.7 million at 4% year-on-year and 7% on a constant currency basis and excluding one-offs. Underlying EBITDA of $0.3 million and ARR of $32.8 million at 11% year-on-year. We finish the half with $2.5 million cash and $1.3 million debt at 30 June 2025, following a $2.6 million raise across placement, directors placement, and SPP. I will break that down by business unit. Our focus is to accelerate growth of our software business due to its scalable and low CapEx consumption nature. In consequence, the revenue split shows software at $4.7 million at 11% year-on-year, excluding one-off, and radiology at $9 million at 1%. Software ARR up 20% year-on-year and radiology ARR $20.9 million at 6% versus the previous year. Corporate cost down from $1.4 million on the previous year to $1.3 million on the current year. Turning to slide eight, the total ARR at 30 June 2025 is $32.8 million, 11% up versus 31 December 2024. From this, software corresponds to $11.9 million, a 20% up versus 31 December 2024, and to radiology $20.9 million, 4% up versus 31 December 2024. We present ARR on a constant currency basis, and we adjust estimates as contracts move to actual volumes. Our mission is impact at scale: deliver diagnosis faster and more accurately. We focus on improving radiology efficiency and productivity while lowering costs for users. On slide 10, our software strategy is to consolidate leadership in LATAM, scale SaaS, and drive automation and cost efficiency. These pillars are tied to measurable ARR growth and margin expansion. Every company effort is focused on accelerated growth while protecting profitability. That is why our resources are dedicated to specific markets like Mexico, Ecuador, Peru, Chile, and Colombia, where we already have footprint and good performing partners and salespeople. We are also treating with special attention the Central American countries where we are experiencing good traction. Turning to slide 12, software business highlights. Aquila Plus moved from plan to proof, and we added new enterprise wins at Clínica del Occidente and Hospital Moncaliano in Colombia, with a combined $183,000 new ARR. We also won Neurológico de México, adding $206,000 new ARR, and Dio Diagnóstico Extension brings that customer to $490,000 ARR. Partner program now includes 25 partners in 15 countries, and this channel contributed 33% of software new ARR in 1H FY25 versus 11% in 1H FY24. The product roadmap has been delivered on time by our team, adding to our product several modern functionalities, like AI-assisted reporting, AI-supported academic searches, income counter, integration with AI tools from DeepSea, Entelly, and Glimmer, enhanced security protocols, and, importantly, improved architecture for more cost-effective cloud storage availability. With these videos, we are showing how some of these functionalities work with a seamless and intuitive integration into the radiology workflow, like this AI agent for assisting reporting and AI visualization tools fully embedded into our viewer. On slide 16, we are constantly working on improving margins. In one area, we reduced the cloud storage costs, improved delivery costs, automated processes of the administration and finance teams, and renegotiated prices of some existing contracts. We are deploying automation and AI-driven workflow optimization to lower delivery costs while protecting quality. This complements disciplined pricing and partner-led deployment to preserve unit economics as ARR scales. We are moving to a segmented value-based pricing architecture where we have defined four customer segments and built tailored value propositions for each. On design, the model is customer-centric and anchored in the jobs to be done for each segment. The expected financial impact is clear: an uplift in contract values of 30% to 60%. Finally, this pricing enables structured upsells. Aquila Plus becomes an attached layer for existing customers, and the framework supports secondary revenue, for example, advanced modules, analytic packs, and premium support. The net result: a pricing system that matches value to price, improves unit economics, and supports sustainable ARR growth without compromising competitiveness. Our software plan for 2025 to 2026 has two tracks: first, commercial execution, rolling out the new segmented and value-based pricing model, and we will support this with a partner program, boost, and tighter pipeline to close this year. The channel already gives us reach with 25 partners across 15 countries, and it delivered 33% of software new ARR in FY25. We will double down on enablement, deal governance, and implementation speed. Second, expansion: the priority for the rest of 2025 is the focus markets, and in 2026, entry plans may consider Argentina while maintaining enhanced partner support to scale efficiently without adding fixed costs. Now, let's review our services business. RIMAB is our radiology services arm. The model combines outsourcing of on-premise services with teleradiology delivery on our own software platform, allowing hospitals and clinics to flex capacity without adding fixed costs. Financially, in 1H FY25, RIMAB delivered $9.1 million in revenue, underlying EBITDA of $281,000, and closed the half with ARR of $20.9 million. This provides a solid recurring base while we reshape the portfolio for profitability. Our operating rhythm is technology-first. AI is already at work in call center workflows. We are piloting models to optimize X-ray and mammography worklists, and we have rolled out real-time operational dashboards. The operating context in Colombia remains challenging. We are facing regulatory uncertainty and delayed payments, so we are running RIMAB with profitability first, repricing or exiting low-margin contracts, applying stricter credit controls, and protecting working capital. These actions delivered 1H margins as we renegotiated prices for 100% of maturing contracts, reinforcing structural savings. Technically, RIMAB benefits from tight software services integration, diagnostics precision, scalable delivery, and ongoing AI adoption. This integration is our edge in quality and cost. RIMAB runs on four execution pillars: contract management. We are renegotiating or exiting low-margin contracts and enforcing price discipline. In fact, in Q2, we repriced 100% of maturing contracts. Cost control: we are using AI in the call center and triage to cut manual handling and reduce repeat touch points. Pilot models in X-ray and mammography optimize worklists and shorten turnaround. Capital protection: working capital is managed tightly. Stronger credit terms, escalation paths, and when necessary, service suspension for persistent late payers. Collections improved in Q2, and actions continue in H2 to normalize receipts. Fourth, client segmentation: we profile clients by risk and contributions to focus capacity on the highest quality cohort and to avoid exposure that does not meet our margin policy. These steps operate together, and the goal is sustainably improving margins and liquidity while maintaining diagnostic quality and coverage. On slide 21, strategic outlook: we enter H2 with momentum. Priorities are to accelerate Aquila Plus sales and upsell, maintain services margin discipline, and keep executing cost out and automation. Focus remains on quality growth, profitable contracts, quicker implementations, and capital-efficient distribution. Turning to slide 22, FY2025 guidance: for FY2025, we expect revenue to be in a range of $27.5 to $28.2 million, and underlying EBITDA to be in a range of $1.3 to $1.6 million. Thank you to our loyal and supportive investors, also to customers, partners, staff, and board members. We are now happy to take questions. Reena, do we have any questions? At the moment, please either raise your hand and I can let you into the call as a speaker, or type in the Q&A box if you have any questions. I'll just give it one more moment, Heman. There's no questions, Heman. Having no questions, we can close the session for today. Thanks again and have a good day.