I would now like to hand the conference over to Mr. James Fitter, CEO. Please go ahead.
Thanks very much, and good morning, everyone in Australia. Good afternoon to those here in the United States, where I'm calling from, and in Dublin, Ireland, good evening to my colleagues who will be joining me very shortly. Firstly, just the usual legal disclaimer around particularly around forward-looking statements, which I'd encourage you to read. I'd also just remind you that all amounts in the presentation are in euros, which remains our reporting currency unless otherwise specified. And of course, we are referring to our full year results for the year ended December 2023. Joining me on the call today is Helena, our Chief Financial Officer, Niall, our Chief Product and Strategy Officer, and JP, our Chief Operating Officer, who are gonna be updating you on a couple of the key developments in their respective sections.
Just a reminder, our vision is to power personalized, exemplary care experiences. The agenda today, we are going to obviously look at the 2023 year in review. Niall is gonna speak to one of the key growth drivers, which is our virtual care strategy. He's also gonna talk about MyStay Mobile, which is the product formerly known as BYOD, which we very successfully launched here in Los Angeles. I'm currently at the ViVE Healthcare Conference, a very large gathering here in Los Angeles. We're having a fantastic response to the launch of that product. Then JP is managing the Baxter partnership for us, and he's gonna provide some real updates on where we're at with the Baxter partnership.
Of course, I will then conclude by sharing our outlook on 2024, and hopefully leave plenty of time for your questions. Let's start with the 2023 in review. I'm not gonna steal too much of Helena's thunder, and these high-level numbers should come as no real surprise because we telegraphed them in our FY23, which we released at the start of January. Total revenue for the year is at EUR 9.4 million, recurring revenue at EUR 6.6 million. Very pleased with the improvement in gross margin, which has improved by 6 percentage points, and of course, very pleased with a strong cash balance to finish the year. But as I said, I'll let Helena discuss these in more detail in her section.
Most importantly for any company is, of course, new customer adoption. I think everyone who knows this company knows that we are in the elephant hunting business. We have a very elongated sales cycle, which has always been challenging. But we have had a very strong hypothesis that, as a result of the changes during the pandemic, that we were seeing renewed demand for bedside technology. And that was certainly evidenced by 2023 representing a record year for net new logos. Importantly, 6 net new logos, and importantly, the geographical distribution. Obviously, the United States and Australia have been our key markets for many years, but we were really encouraged to win our first new business in New Zealand, where we will be deploying at the new Dunedin Hospital.
And of course, in our own backyard at the new Children's Hospital of Ireland, which is a very important win, particularly for our engineering resources, who are obviously largely based in Dublin. So, a very exciting year in terms of new customer wins. And of course, in the United States, both Catholic Health and University of Miami, which are now, all of these projects, oh, sorry, beg your pardon, Catholic Health, University of Miami, and Inova are all now live and up and running, and we're currently in progress deploying at Epworth, at the Children's Hospital, and workshopping the project for the new Dunedin Hospital. Perhaps equally important are the expansions and upgrades that we enjoyed during the year. So we have expanded our partnership with Bumrungrad in Thailand for a further three years.
We've completed a 1,000-bed expansion at NYU Langone Health, who are not only our flagship customer on the East Coast of the United States, but also our co-design partner for the MyStay Mobile project, which I think many of you are aware of already. At BJC HealthCare, we are midway through the deployment. We've deployed four of the 10 expansion hospital sites are now live. We're also in the process of fully migrating BJC to cloud, which again, reinforces the investment we made in our cloud product. We were very pleased to sign our third consecutive extension at the University of California, San Francisco, who were, of course, our first customer in the United States.
And this brings many of these partnerships to over a decade long, which is a great testament of the value we're delivering across the enterprise. In terms of financial highlights, again, I wanna focus on the contracted bed growth, which has been 45% over the last two years, so running at around a 22%-23% annual growth rate. Our annualized recurring revenue is at EUR 7 million or just under AUD 12 million. This year was a really important year. It was a decision we made last year to sunset our Gen Two product, which is our Windows product, which we end of life on the thirty-first of December. And as that, we have seen some tactical churn from three customers that were unwilling or unable to migrate to Android hardware.
We'll have a look at the financial impact of that in a second, but it's, it's been, reasonably positive from our perspective. In terms of the after-tax loss, if we exclude the one-off, treatment of the Regis legal case in 2022, we improved our operating loss by, nearly EUR 3 million or 27%, which is a sign that we've, been very disciplined around cost control and obviously starting to see the benefits of, our revenue coming on stream. And of course, I wanna thank everyone on this call who participated in the capital raise, which we completed in August.... Thank you for those institutions that were so supportive, and of course, for the share purchase plan, where we had, a 180% oversubscription of the SPP, which we are, are very grateful for.
So in terms of highlights, as I mentioned, JP is gonna give an update on the Baxter partnership. Very exciting news as we've just received, as we intimated in the forecast, we've just received our first purchase order from Baxter yesterday, as JP will speak to that in his presentation. We've been selected as vendor of choice for two further U.S. enterprise customers, which represent an additional 4,500 beds. As I just mentioned, we've enjoyed multi-year renewals of two major contracts at Bumrungrad and UCSF. We've added over EUR 15 million or nearly AUD 25 million in new total contract value from existing customers through upsell and obviously through new customers added during the year.
We've just completed yesterday the full launch of our MyStay Mobile product, which is now commercially available. The pilot went live at NYU Langone in Long Island in February, and Niall will be sharing further information around that. As I mentioned, we completed the capital raise. We continue to see very strong sales pipeline, reflecting Gartner's assessment that interactive patient care has finally, after quite a long journey, reached the plateau of productivity, which we are very excited about. As I mentioned, BJC is in full expansion mode. We've seen a 9% growth in contracted beds during the course of the year, and as I mentioned, with a further 4,500 beds in contract negotiation. We're going to talk a bit about meal ordering today.
I think everyone is or should be cognizant that we published a very interesting case study with Omaha Kids, showing that they now have 95% adoption of digital meal ordering and have seen an 87% reduction in food waste, which is a very powerful testament. I mentioned the new logos we've already added, and I also wanted to thank shareholder support for the appointment of Barbara Nelson and Mark Cullen, who were both appointed to the board of directors during the course of the year. So to give a visual of what I was just discussing around, as I mentioned, the year-over-year numbers mask what's been a pretty busy year all around on the implementation side.
We saw a 190% increase in live bed installation during the year, with 1,950 beds coming on live. But as I mentioned, we have seen some tactical churn with three customers for a similar equivalent number of beds that have chosen not to renew. These were entertainment-only, lower-margin beds, and as you can see in the fourth bullet point here, the beds we turned on this year have an average revenue per bed, which is 94% higher than the beds that we did not renew. So everything else being equal, those beds will result in an additional EUR 1 million in recurring revenue in 2024.
You can see here we have this large group of contracted, not yet installed beds, which are primarily the BJC expansion, the Children's Hospital of Ireland, and Catholic Health, which we are actively scheduling for delivery this year, and in some cases, early into 2025. We have the 4,570 beds that are currently in contract negotiation. We'll share a little more granularity about that later in the presentation. So, very positive momentum in the bed funnel. 2023 really has been a really important year for the company, setting us up for the growth that we're embarking on right now, and I think it's fair to say that 2024 is the most exciting time in the company's history.
We've really enjoyed great success from the investment we've made in cloud. We know how much it reduces the complexity of deployment, but perhaps more importantly, cloud is what has really facilitated the ability for us to now deliver the MyStay Mobile solution on the patient's own device. It's also... It was called out by Baxter as a very clear factor in their decision to choose us as their preferred partner in this space. Some important data points here that probably won't come as any surprise, but 88% of global cloud decision makers are adopting cloud. We see that in our own conversations with customers, where almost every conversation we have with an existing customer has adopted a cloud-first strategy.
All but one of the contracts we signed in 2023 are for cloud, and as we've observed earlier, at materially higher prices than our legacy Gen Two contracts. So MyStay Mobile, as I mentioned, we had the full product launch here yesterday. It's been extremely well received. We've had fantastic feedback. The genesis of this is very simple but very powerful. It is our response to what we've known for many years, is that hospitals do not like or do not have the desire or the resources to deploy capital in patient rooms. So up until now, we've had to rely on the ability for the capital budget to vote in favor of patient engagement.
What we know, all too sadly, is that as enthusiastic as the patient experience and nursing teams may be, that often when we go into the capital budget, we run into competing priorities, and we know that the hospital, you know, needs to buy a new da Vinci robot, they want to upgrade their MRI machines, and sadly, patient experience has fallen down the list of priorities. Being able to deliver this now on the patient's own device is something that is expected in the digital world we live in. Most importantly, it's going to expand our addressable market in a really meaningful way.
We know already in the conversations we're having with US customers that we're never gonna be in a position to deploy hardware in the room, that being able to make it, this, interface available on a patient's device is gonna be a game changer. And it's gonna open us up to new markets. So right now, we continue to focus our sales energies in the United States and Australia, but we have, as I think we've discussed earlier, identified the UK, Canada and Germany as markets that are of interest to us. We have no ambitions to tackle any of those in 2024, although we may certainly look at some exploratory work in the UK towards the end of the year. But I'll leave Niall to talk further about that as we move forward.
In terms of product usage and utilization, so across our 10,000 beds, we had nearly 750,000 OneView admissions last year. This has resulted in substantial time saving. Importantly, we know entertainment is still a key component of the platform. You can see here the utilization stats that patients are using the OneView platform for television for over 8 hours a day, and using the tablet for nearly 12 hours a day, which are significant increases on 2022 levels. You also see we've had a really meaningful increase in assigned education. But I want to just talk a little bit about our vision for meal ordering, because as I mentioned, the Omaha case study has been incredibly powerful, and I think it's a place that we can deliver really meaningful ROI.
I just want to socialize a few numbers here. If you think about the 700,000 admissions that we had last year, you know, if we assume that we can get the same sort of penetration rate that we're enjoying at Omaha, and 90% of the patients use the device to order their meals electronically, we'd have 640,000 patients using the meal ordering. Our typical length of stay is 3 days, so that would equate to effectively nearly 2 million patient days, where patients could use it to order their meal. Typically, our patients order 2.5 meals a day, but let's assume it's 4 million meals ordered during the course of the year.
We know from the work we've done with our user group, that nurses believe that every time they're using the OneView device to order a meal, they're saving about 3 minutes of nursing time. So those 4 million meals would equate to 12 million minutes of nursing time, which is nearly 22 years of nursing time saved in any given year from the 10,000 beds we have live. That's a huge driver of value. We know from conversations with an existing organization we're talking to, that they think from moving from their current solution, which is entirely paper-based, to OneView, could save them over $2.5 million a year. So it's very, very impactful and something that is another key driver of our MyStay Mobile solution.
Let me pass it across to Niall now, who's gonna do a quick recap on product innovation in 2023, and then talk a bit about virtual care and MyStay Mobile. Thanks, Niall.
Thanks, James. So I just wanted to share some of the innovations that our team have been working on this year. We target between 5 and 6 major software releases a year. And this year we did 5 software releases on our core bedside hardware platform, and then the first release of our MyStay Mobile product as well. I'm gonna talk a little bit more about that, and how that's part of our growth strategy for 2024. We enhanced the virtual care API that we delivered in 2022, so we added support for additional workflows. So these are observation workflows as part of virtual nursing. This is enabling virtual nurses or virtual sitters to observe patients one way through the OneView hardware at the bedside.
To be able to prompt patients at that moment, that observation is happening. I'm gonna talk a little bit more about virtual care when I get into the growth drivers as well. We did work around simplified pairing, and many of our customers use tablets paired with televisions, the user experience, and that was originally designed a number of years ago, before AirPlay and Chromecast became the norm. So we have simplified the user experience for pairing to better align with those consumer pairing needs. As James mentioned, meal ordering is an incredibly important part of our value proposition; it's described by customers often as our killer app. And a significant driver of efficiency.
So we continue to make enhancements to that feature, to make it easier to use, and also to add support for new customer workflows. We've made changes to support diversity, equity, and inclusion programs with our customers this year. For patients who are undergoing gender reassignment, it's obviously very important for them that they see their preferred name on the system, so we've made modifications to support that, in collaboration with our customers. We've also made technical improvements to the platform, and this is really to continue to improve the scalability of the platform for our enterprise customers, as our customers grow in size and complexity, and also to ensure the security and stability of the platform as well. Just a comment on the photo that you see on the right-hand side there.
So we enjoy extremely collaborative innovation partnerships with our customers. This is one example. So this is NYU Langone Health. We sent a senior delegation to our Dublin office in 2023. This was paid for by them, and the focus of two days of workshops was around the hospital room of the future. So some great collaboration there. We're just moving on to the next slide. I'm gonna talk through a couple of the three growth drivers for 2024, and then hand over to JP to talk about the third one, which is our Baxter partnership. But I'll start by talking about virtual care. But hospitals in the US and really around the world are undergoing a staffing crisis.
This is a quote from McKinsey and from a study that they did in 2023. It really shows the scale of the problem in the U.S. 45% of inpatient nurses reporting that they're likely to leave their role in the next six months. And increased workload burden is the primary factor that is cited behind that intent to leave. So it's clear that there's a need for change, that the status quo is just not a sustainable model. Just moving forward to the next slide, to what is virtual nursing? It's a complex problem, but an important part of the solution is virtual nursing. So I'll just kind of talk to you a little bit about what this is before talking about our virtual care strategy and our virtual nursing strategy.
So virtual nursing is where you have an expert nurse who's based in a remote command center. Typically, an organization would have one command center that is serving all of their hospitals. It doesn't have to be geographically located beside a hospital, it can be anywhere, because obviously it's connected via network connectivity. These remote or virtual nurses are supporting the on-floor nurses, so the nurses who are physically in the hospital with non-physical care. This will be things like supporting patient education, patient observation, physician rounding, the admission process, and preparation for discharge.
Really the goals of virtual nursing are to improve patient safety, and this happens through virtual nurses being able to reduce the interruptions that on-floor nurses face that can cause them to make errors, and also to provide a sustainable staffing model. And the reason for this is that you often have nurses who may be at the point in their career, as the McKinsey quote shows, that they no longer are up for the physical demands of the job. Nursing is obviously a very physically demanding job, but they still want to be able to leverage their training, and so virtual nursing gives them that opportunity to be able to do that in that remote manner. This is a really important trend in the U.S. market, and we're seeing increasing adoption and piloting of virtual nursing programs.
So what is our virtual care strategy? Just moving on to the next slide. So I think this is a really important point. So this is a competitive space. Obviously, whenever you have a big trend like this or a big customer need, you have a lot of people responding to that need. And there are established vendors in the market that provide virtual care platforms. So we chose not to build a solution here to try and compete with these established vendors, but instead to leverage the platform that we already have in the room, to leverage that patient television, and to be able to deliver virtual care by integrating into our customers' preferred providers.
This is really important because customers may have a preferred provider that they use today, they want the flexibility to be able to change that provider in the future, and so our platform-based approach allows them to do that. So what we're doing is we're using that television, as you can see in the little graphic there, that television is connected to a integrated camera and audio unit from the virtual care platform vendor, and then the OneView hub device that is behind that television is controlling that television as to whether that television is being used by the virtual care platform, or by the patient on the OneView system. I mentioned the virtual care API. We delivered the first iteration of that in 2022.
We delivered another iteration of that to support additional use cases in 2023, and that enables any certified virtual care platform, so that's a virtual care platform that we have certified with that API, to share that single screen. We certified our first partner on the API in 2023. That is Caregility, obviously a partner we've been working with for a number of years. And we have several other leading virtual care platform vendors in the certification process currently. And what's next after this? So next for us is looking at an AI-powered virtual care assistant that can support virtual and on-unit nurses by offloading some of those common patient questions or collecting information or personalizing engagement.
So your virtual care model consists of a virtual care assistant, a virtual nurse, and then an on-unit nurse providing physical care. So that is our vision. Next, I'm gonna talk about MyStay Mobile, which, as James mentioned, is another key growth driver for us as we go into 2024. There's really three drivers for change that are really important in creating the tailwind for this product. One is rising consumer expectations. So we all used digital technologies more in the pandemic across generations. I think whether it was ourselves, parents, children, we all survived digitally, essentially, for a number of years. We bring those expectations of convenience, of control, how we engage with online retail, how we engage with travel and tourism, how we engage with financial services.
We bring that to our healthcare experiences. The second driver is around smartphone adoption. So smartphone adoption is at an all-time high. Under fifties, you've got 97% of people in the U.S. market having smartphones. Even when you go up over 65, over 65-year-olds, you've got 76% smartphone adoption, so almost everyone has a smartphone these days. And then the third driver for change, and this is really linked to that sustainable staffing problem that I spoke about, is the need to reduce task burden to nursing. So surveys estimate that up to 12% of nurse time could be freed by delegating tasks to other roles, so for example, to patient care technicians. So moving on to introducing MyStay Mobile.
So what MyStay Mobile is doing is allowing capital-constrained healthcare organizations to benefit from the power of the industry-proven care experience platform that we've built, elevating patient care and reducing the task burden, reducing interruptions to nursing, and this is through self-service and automation. So it's really important. We've built this on the cloud-based platform that powers our hardware-based solution at the bedside today. So we're not building an entirely new full stack. This is leveraging all of the investment and work that has gone into that platform, all of the depth and breadth of integrations to electronic health systems, to other hospital systems that we've developed over years of serving top healthcare organizations. The difference here is we can deliver this as an entirely fast solution, so no hardware, no infrastructure required.
It's all of the features of our hardware-based solution that is in use in hospital rooms today. The only exception is live television, because typically there is already a television in the patient room. We've just gone live with a pilot of MyStay Mobile. We're piloting it with NYU Langone Health at the Long Island Community Hospital in Long Island. And as James mentioned, we've just launched the product to the market formally this year, this week, the ViVE Conference in L.A. And just moving on to the next slide. So for those of you with children, this is probably a too familiar image. What MyStay Mobile is doing is it's putting the patient at the heart of the experience, connecting them to digital information, digital tools on their own device, via a really simple, easy-to-use web application.
This is another really important point. This is not an app that they need to download from an app store. They get an SMS or an email at the point of admission, via integration into the electronic health record at the hospital. They get that link, and they can click on that link, and it takes them straight into MyStay Mobile. So it's really about making it as easy to use, removing as much friction as possible, and so we connect them to those digital tools and to that digital information. I'm gonna hand it over to JP now, to talk to us about the first growth driver, which is our Baxter partnership.
Thank you, Niall. I'm delighted to be here to give you guys an update on our Baxter partnership and the buyer agreement that we signed with them in May last year. We took part in a very competitive RFP, and we were delighted to be awarded that in May. As James has alluded to already, that Baxter called out a number of key success factors that helped us get over the line, across our tablets, our TV and set-top box offering, which delivers virtual nursing, the all-in-one digital door sign, or MyStay Mobile, as well as the fact that we're both in the cloud and the configurability of the set-top box. All of those things together are our Care Experience Platform, and they're gonna fit very nicely now into Baxter's care communications platform.
Under the agreement, the CXP platform will be sold to the Baxter customer base. It has been a long time since May. Baxter acknowledged and said, "We need to really get this..." They do this very frequently and launch new products, so... Just to make sure that we got it right. To date, we've engaged with over 100 different Baxter personnel across many different functions. What I'd say is that we're very now deeply integrated into Baxter's internal processes, from order to cash, through project management, implementation, and through their support team. We're highly aligned with their delivery methodology, as well as their support methodology, and we're really ready to hit the ground running now and support the delivery of the platform to potential new customers.
The care experience platform is installed in Baxter's customer experience centers in Cary, Batesville and Irvine in the States. We have launched the market launch has commenced, and we are going to be at every major trade show that Baxter will be attending as well throughout the year. And I'm happy to say that we did receive our first PO this week from a very high-profile children's hospital in Florida for our digital door sign, and we continue to be in negotiation on the inpatient beds for that opportunity. So next slide, please. And we are engaged with the Baxter's connected care sales force, so that's approximately 25 reps that are working across the United States, who have a deep and meaningful relationship already established with many different hospital systems.
This is gonna increase our customer base and the reach significantly in the market. And as the partnership matures, Baxter are going to be empowered to implement our platform, meaning they'll run the projects, and they will do the installations. So scaling this, we will be looking to use Baxter's own people in time. What this is really doing for Baxter is filling that last gap in their own product portfolio around patient experience, the digital door signs and digital whiteboards, to better connect their patients and deliver their own strategy around the connected patient room. So as partnerships have gone, it couldn't have gone any better so far.
... We're highly aligned and very, very much engaged, and the Baxter team is very, very motivated to deliver the Care Experience Platform to their customers, and they're very excited, as well as adding in the MyStay Mobile as well. So with that, I'll hand it over.
Thanks, JP. So that first slide there shows our capital structure, and our market cap, based on the latest share price, is EUR 272 million. So looking now at our income statement, recurring revenue is up by 7%. Total revenue for the year was EUR 9.4 million, up 5% on the prior year. This increase is due to higher non-recurring revenues. The average revenue per bed per day for live beds has increased by 13% year-on-year, due to the sunsetting of lower revenue Gen Two beds, and a higher mix now of Gen Three deployments.
Hardware deliveries for two US and one European customer, which were planned to ship in December, have slipped into 2024 due to unexpected project delays, and this has reduced the forecasted total revenue for the year by approximately EUR 2.9 million, as we had flagged in our business update to the market at the beginning of January. The gross profit margin percentage is 6 points higher at 66%, due to the higher portion of software revenue in the year compared to the prior year. Operating expenses reduced by 14%, mostly due to the headcount reduction program initiated in the last quarter of 2022, and also the office footprint downsizing, and we continue to tightly manage our costs. The operating EBITDA loss for the year is EUR 5.74 million, 20% lower than the prior year.
When you exclude EUR 1.36 million of one-off net income from the settlement of the Regis legal case in 2022, so that we're comparing like with like, the loss after tax for the group has reduced by 27% or EUR 3.2 million compared to the prior year. Moving now to the balance sheet. The year-end cash balance of EUR 11.5 million reflects the AUD 22.8 million, or EUR 13.8 million equity raise, which was completed in August of 2023, and this incorporated both a placement and an oversubscribed SPP. Property, plant, and equipment has increased due to the capitalization of the lease on a new, smaller Dublin office.
We are currently in discussions with the Irish Revenue Commissioners to agree a schedule of repayments for the EUR 2.5 million debt warehouse payroll tax liabilities, which were an Irish government COVID pandemic support. We expect, in the coming weeks, to agree a zero interest rate, five-year repayment schedule, with repayments commencing in this coming May, and that's in line with published revenue commissioner guidance. Turning now to the cash flow statement. The group finished the year with EUR 11.5 million in the bank. This reflects the equity raise, which took place in July and August. Total operating cash flows were EUR 7.3 million for the year, and when we exclude the one-off legal claim proceeds of EUR 1.3 million in the prior year, the operating cash inflow-outflow is actually EUR 3 million lower.
This is driven by customer receipts being almost EUR 1 million higher in 2023, and the impact of the cost reduction program, which I mentioned previously. I would signal here that headcount has recently increased in the aftermath of the equity raise as we ramp up to fulfill Baxter resourcing and the MyStay Mobile development. This is our ESG slide. ESG is important at OneView, and this slide shows our ESG principles and progress. We are pleased with progress in furthering our strategy in 2023, and our strategy covers not only our own internal ESG impact, but the OneView solution positively impacts the ESG aspects of other stakeholders. A great example of this is the reduction or elimination of paper menus by using the OneView meal ordering platform.
That concludes the financial results part of the presentation, and I'll hand back to you now, James.
Perfect. Thanks, Helena. Let's talk now about market conditions and the outlook for 2024. So as you've just heard, we have multiple growth drivers, three very clear engines of growth that are gonna drive significant top-line growth for us in 2024, and I think also significant improvement in margins. So as Helena has alluded to, the delay of hardware for a couple of customers towards the end of 2023 is gonna land into 2024, which is obviously going to give us a top-line boost out of the gate this year. Leveraging the in-room platform for virtual care. So the two big conversations we have going on, as I mentioned, with a couple of major enterprise groups, are really focused around what Niall referred to: think of us as the enterprise app store at the bedside.
How do we give our customers the flexibility to deploy their providers of choice, so their vendors of choice on the OneView platform in a seamless way? And I think our API strategy has really delivered on that front. The commercial availability of MyStay Mobile, I can't overstate the significance of this enough. I think we've all, I think for all of our shareholders, you guys have understood how hard the sales cycle is in enterprise healthcare. As I mentioned, we're in the elephant hunting business. We're trying to get very large, very complex organizations to deploy a platform that has a very broad range of touch points. We never get any pushback on the value proposition of the software. The only pushback we ever get is the lack of desire to have to fit hardware into patient rooms.
So, that has been an ongoing challenge for the business for many years. Literally, for as long as I've been here, we've heard, why can't we allow patients to deliver the solution on our own device? We can now do that as of today. The other really meaningful development here is we have not, up until now, supported iOS devices. So during the pandemic, for example, a huge number of US customers received philanthropic donations of iPads, and they asked us, could we deploy on the iPad? Up until now, we couldn't do that. With MyStay Mobile, we can deploy on an iPad or an iPhone. So that, again, is gonna open up a much bigger segment of the market. The Baxter partnership is an incredible asset for us.
I think we've been incredibly successful in winning some of the most discerning health systems in the country. The hardest thing for any small technology company is market reach, and Baxter have an unquestioned market reach in the United States. As JP mentioned, we've trained up 25 of their connected care executives. We have subsequently trained up a further 70 of their account executives. So we're in effect going from having a dedicated sales force internally at OneView of 4 people to having nearly 100 people out offering the OneView platform to U.S. customers. We couldn't buy that sort of access, so that is phenomenal.
The second thing that is important to understand is that when we originally signed the agreement with Baxter, MyStay Mobile was not a commercially viable product, so it was not part of the reselling agreement. We have just renegotiated the reselling agreement, in recent weeks to make sure that MyStay Mobile is part of the agreement, so they will have the ability to sell that as well. The other thing I wanna touch on, I mean, unsurprisingly, at this health event we're at, almost every booth is talking about AI. AI is obviously transforming the world in which we all live, in an incredible way. We have embraced AI across the company.
I have personally applied to and been accepted to study AI for business program at Oxford this year, where I'm spending 1 week a quarter in a very interesting cohort of professionals from around the world talking about how we can deploy initiatives across the company. We've already deployed GitHub Copilot 12 months ago across our engineering resources and seeing meaningful productivity gains already. Unsurprisingly, we've also uploaded all of our product documentation and marketing collateral into a custom version of GPT, which allows staff members to query the product suite, which is again a basic but important driver of internal productivity. So we're obviously exploring ways to deploy AI externally in our products.
We've got countless ideas that we're kicking around, and we look forward to sharing more information about those as they come to fruition. Next thing I wanted to mention is that we have, even though it's mid-February, we've just signed our first major new logo of the year, which is Mercy Health, a very large, extremely well-respected healthcare system based in the Midwest of the United States. We have a satellite office in St. Louis, which is servicing this account. As you can see here, Mercy owns 44 hospitals across seven states here in the US.
We are currently deploying at their Love Family Women's Center in Oklahoma City in April this year, and we are in late stage red line negotiations over an enterprise agreement for a further 2,800 of their beds, which represents just under half of their enterprise. So fantastic organization. They are a home to the Mercy Virtual Hospital, which some of you may be familiar with, which is one of the... I think it was the world's first virtual hospital in the United States. So fantastic new partner to add to our list. So just in summary, the three growth drivers are very clear in my mind. Virtual care is what has been driving the business over the last couple of years.
As I mentioned, almost every major conversation we're in with academic teaching hospitals is, how do we bring video into the room to support their hybrid models of care? MyStay Mobile, I think, speaks for itself. It's gonna shorten our sales cycle. It gets us out of the capital budget, and it's impossible to overstate how important that is. And as JP has articulated, there has been an enormous body of work going on between ourselves and Baxter. The fact we've received our first purchase order this week, I think speaks volumes about the promise of this partnership, and I have no doubt we are gonna enjoy a mutually beneficial, beneficial partnership for many years to come. So just a reminder on what differentiates ourselves from the competition.
We have what we believe is the most innovative technology stack in the business. We are the only cloud-hosted vendor in our space, which is a key point of differentiation. It was what helped us be selected by Baxter. It eliminates the cost of new smart TVs by leveraging our compute device behind the TV, which, again, was a point of differentiation they called out. We spent a lot of time building a value framework, which I'll talk a little bit further. I think Niall has spoken very impactfully around the impact of our virtual care API, and we're obviously very proud. We've spent a lot of time making sure that our solution is scalable. Scalability is the single most important issue when we're dealing with the institutions of the caliber of the institutions we're dealing with.
I think the fact that we have these multi-year renewals with the likes of UCSF, BJC, and NYU speaks to the value that we're delivering to our customers today. That value is articulated through the value framework that I wanna thank Nikki Fetterman, who runs this project for us internally. Who's done amazing work around delivering a data strategy and a data platform that allows us to measure value for our customers across these very clear six different segments. That, of course, results in a logo slide globally, which I think would be the envy of most customers of our size. So that concludes my remarks, but I would be delighted to take any questions if anyone has any.
Thank you. If you wish to ask a question via the phone, please press star one on your telephone set when your name is announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. If you wish to ask a question via the webcast, please type your question into the Ask a Question box. Your first question comes from Dan Hurren, from MST Marquee. Please go ahead.
Well, good morning, and thanks so much for taking my question. Unsurprisingly, I want to talk about the Baxter transaction or the Baxter agreement. Look, I'd just like to ask about the motivation of the Baxter sales force, and anything you can tell us how they're remunerated in regards to OneView products, and does the adding of MyStay Mobile into that agreement change any of those dynamics?
Sure. Hi, Dan, how are you? So look, I think the motivation for Baxter is pretty clear. So Baxter obviously is the dominant provider of hospital beds in the United States. They are a very significant provider of nurse call systems in the United States, and they have a unified care communication called Voalte, a platform called Voalte. Those two of those three things obviously any hospital room has to have a hospital bed. There's a legal requirement to have a nurse call system. So for Baxter to grow their business in the United States, they're relying on a number of growth opportunities. Obviously, a new construction, which is growing at about 4% per year.
But for them to be successful in the bed business, they have to displace a competitor, and for them to be successful in their nurse call business, they have to displace a competitor. So one of the things they particularly like about the Care Experience Platform that they're selling for us is that around 70% of U.S. hospitals don't have a Care Experience Platform. So there is a huge white space opportunity for them to demonstrate that they're bringing innovation. I think they understand that the product we offer is extremely complementary alongside their nurse call system, because we're putting more convenience and control in the hands of the patients, which is gonna liberate nursing.
So in terms of how they're compensated, they are compensated, whether they're selling our core platform or whether they're selling MyStay Mobile. It's no different for either way, mate. So I think they are highly energized. Certainly the engagement we've had with them to date suggests that this is something that is gonna make their lives easier. They will be carrying quota for the OneView solution, in the same way they'd be carrying quota for their nurse call solution.
Thanks, James, and just touch on something you've just said there. You talked about their opportunities to display their competitors, but is there opportunity to sell the OneView product into their existing previously installed customer base?
100%. Absolutely it is. So, when I say the opportunity to displace is for... If they want to sell their nurse call system in the United States, they have to displace a competitor. In 70% of hospitals in the United States, they don't have to displace a OneView competitor, because there isn't... There is not a OneView competitor in the market, in 70% of U.S. hospital beds. Do you understand my point?
No, no, I get it. I get it. Just clarifying. I thought you were making a point about the way that they could sell. No, got it. And perhaps, James, could I bother you? Could you just give us a broad overview of the P&L impact, comparing a customer win or an installation of a traditional versus the new BYOD system?
Yeah, 100%. So, I think if you think about a typical 300-bed hospital, I think you're aware of, our kind of APU, you know, is roughly around $1,000 per bed per annum, so you're looking at $300,000 of OpEx. But in order to deploy the OneView solution in year one, for those 300 beds, you have to deploy the tablet. The tablet has to be mounted either on an articulated arm or on a meal table. It needs a custom case to deploy the tablet, and it needs a compute device behind the television.
So you're looking at, with installation costs in a, in a union labor market, you could be looking between anywhere between $2,000-$2,500 per room, in order to turn the solution on for our core platform. So you're looking at $750,000, maybe $1 million of CapEx, in order to turn the solution on. So that gets you into the CapEx budget, which is the last place you want to be. So now with BYOD, they are simply gonna subscribe for software for the year, and the cost of that software subscription is obviously gonna be a fraction of the capital cost that would otherwise have been incurred.
And in terms of... Sorry, in terms of-
Yeah. Because as I think you're aware, when we're selling hardware, particularly if we're selling Samsung tablets, you know, we can't generate much margin on that. That's a cost plus kind of transaction. Similar for the other in-room hardware, it's the sort of stuff where there's a list price, pretty clear visibility for the customer. So by moving to a pure SaaS, pure software model, we get the hardware out of the business, which should ultimately lead to blended gross margins that move up pretty dramatically from the mid-60s, where we are currently, hopefully into the mid-80s.
Right. If I could just push on that a little bit, James. Putting the hardware aside, as you said, about the recurring revenue,
Yeah.
The revenue and, I guess, EBITDA impact of a BYOD installation versus the traditional?
Well, look, we're obviously still in price discovery, but I think we feel as though the value proposition, the only thing you're not getting with MyStay Mobile is free to air television. And I think we would argue a pretty strong case that free to air television has very little value. So I think the impact is gonna be, on the software side, is gonna be not dissimilar to where we are currently.
Got it. Thanks, James. I've got some more questions, but I'll jump back in the queue if there's time at the end. Thank you.
Thanks, Dan. I appreciate it.
Thank you. There are no further phone questions at this time. I'll now hand over for webcast questions.
Hi, we have two questions in on the webcast. James, the first one, I think you've already addressed. It's from Anup Khera, and the question is: Can you talk about the incentives that Baxter salespeople are given to sell OneView? So I think you may have addressed that when you talked about the quotas and the targets, but do you want... Have you anything to add to that?
Yeah. So as I mentioned, Anup, yes, the Baxter folks will be carrying a quota for OneView. They'll be incented the way they would typically be within the Baxter organization. We have also put a separate OneView incentive program in place for Baxter reps, so that they will be incented for the first order that they deliver, and the most successful Baxter reps will enjoy effectively a OneView President's Club-style arrangement, which will incent them further.
Right. Second question is: Can you advise on the onboarding timeline for the order book?
Yeah, look, it really varies to a pretty significant extent. A lot of these issues are beyond our control. Obviously, most of the business that's contracted, not yet installed, is scheduled for delivery this year. Although, in a couple of cases, some of those hospitals might not be opening until 2025. So it's really, to a large extent, we have accelerated our ability to deploy our product, obviously by migrating to cloud, which is taking some of the burden away. But when we're deploying in a large, complex environment like BJC, where we are deploying into operating hospitals, we are constrained sometimes by room availability, which can impact the ability at which we can move at speed.
I hope that answers the question.
Okay, I've nothing further on the webcast questions at this time.
Can we just check if there's any further questions on the phones before we wrap up?
Dan has jumped back in, I believe, so I'll hand it over.
Thank you. Dan Hurren, please go ahead. Go ahead.
Thanks very much. Sorry, just a couple of very boring questions from me. I was just wondering, in the broadest terms, could you talk us through the shape of the operating expense lines in FY 2024?
Yeah, look, as I think we telegraphed during the CAPRA, we set out to add around 20 staff back into the business. In the fourth quarter of 2022, like every other tech company in the world, we downsized our staffing levels by about 20%. So effectively what we've done, Dan, is we've basically replenished that headcount, brought them back onto the books, with a view to making sure that we are prepared. Baxter have made it very clear to us that they wanna make sure that we are able to scale to their needs and requirements. So we've brought that headcount back on. We've obviously trained those folks up. As JP mentioned, as we begin to deliver, the implementation burden will be shared with Baxter as we continue to enjoy success with them.
We're gonna step up our, our OpEx by, I would say, year-over-year. Helena, would it be, say, 20-ish% in the initial, phase, with a view that as we can hand off in, perhaps in the latter part of the year, we might see, some of that cost come back out of the business?
Yeah, that's about right, James.
Thank you. And just in regards to that, the tax liability, just how will that be reported through the P&L? Will that just come through the tax line later?
It's already gone through the P&L. It's really just a deferral of payroll taxes back in the time of COVID, mainly in 2020, Dan. I guess the thing is, at the moment, it's shown as a current liability due to accounting rules, because there was no arrangement to repay it at the end of the year. But we're highlighting it, that it's not actually a current liability. It's gonna be spread over equally in 5 years, starting in May. And most importantly, there were changes in the government legislation two weeks ago, and it's now any interest charges have been forgone, and it's a zero rate debt.
Understand. That's great. Thanks very much.
Okay.
Great. Well, if there are no further questions, yeah, thanks, thanks so much. I think we'll, we'll wrap things up there.
Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.