Good morning, everybody. Welcome to Fisitrack's Q2 2021 Interim Results Webcast. Thank you for joining the call this morning. I'm joined by Charlotte Goodwin, our CFO. And we are going to take you through a little introduction.
We'll be looking at some quick highlights for the quarter, just in case you're short on time this morning. Because a lot of you will have joined the call And they don't you don't know much about us other than what you've read in the press and in our presentations. We'll give you a little bit of an update as to who we are and how the business works. We'll give you a business update from Q2. We'll look at the financial results and we'll do a little market outlook looking forward and then we'll open up for Q and A.
Total time for the call around 30 to 40 minutes depending on how many questions that you ask. So thank you again for joining. Just a quick introduction to myself and the management team. So I'm Henrik Molin. I'm the CEO and Co Founder.
I'm Swedish, I'm from Umea in the north of Sweden where I grew up. I have a degree in Finance and Accounting from Handelsuestolen in Umea And I grew up in an entrepreneurial family. My dad ran a very successful travel business until he retired. I learned a lot on how to run a business from him in terms of growing strongly, but not at the price of taking on too much risk. And this is a pattern that you see in Fisitrack in the way that we run the business, so that runs in a family, so to say.
I was mostly an entrepreneur for other people before I co Founded Fisitrack with my friend Nathan Skorso, an accomplished tech entrepreneur at Dutch. And The combination I think in terms of having a deep friendship, Nate's extraordinary focus on tech, architecture and design from his well, I think it's well over a couple of decades of experience at this point and myself with a focus on business development and finance. And that I think that's been a really, really nice combination. And of course, in the management team, we also have some exceptional people. And let me In terms of Andrew Knox, who is our Chief Operating Officer, who has a very, very strong background.
Among other things, he co founded the IBM venture program on the European side. He's the glue that keeps the first of all the entities because we are made up of several entities following M and A transactions, but also the glue that keeps together the team as one in terms of knowing everybody does and what everybody needs to do. And this is a very, very nice addition to the management team. I'll let Charlotte introduce herself.
Hi. Yes. My name is Charlotte Goodwin. I'm the CFO of FissyTrack. My background, I started my career out at PwC where I worked in the technology, media and telecommunications division and I work with clients from all sizes there from small tech startups right through to large listed corporates.
Well, recently I was director of group finance at a Company called Wilmington PLC, which is very acquisitive tech focused group listed on the London Stock Exchange. So here to sort of assist Busy Track in its Transition to a listed company and very pleased to be here. Yes, and I will start off, I'll obviously go into some more detail further on, on the financials, but To give you a little bit of context right upfront, I'll pull out some financial highlights here. So in the first The slide here, you'll see in the 6 months ended May 2021, we delivered overall revenue growth of 184%. Some of this growth was driven by our recent acquisitions and on a pro form a basis with these acquisitions included in the prior year comparators, Revenue growth was 37% for the 6 months to May.
Within this 37% growth, we were pleased to see growth within each of our three businesses, both The 2 SaaS businesses, Physiotrac and Physiotools and our virtual care business Rehab Plus. This resulted in us exiting Q2 with a revenue run rate of €7,200,000 per year. And on the profit side, in the 6 months, we saw adjusted EBITDA growth of 61% and delivered adjusted EBITDA margins of 34%. So I'll pass you back to Henrik now to discuss some of the operational highlights for the quarter.
Thank you, Charlotte. And so just quickly running through some of the business highlights on the M and A side in terms of what we executed So far, we continue to focus on EBITDA expansion in Physiotools. It's been a very successful project in terms of reducing costs through synergies. And so we've had an EBITDA expansion with the margin EBITDA margin on a run rate basis increasing by 100%. We've also integrated very nicely the rehab plus business.
We keep accelerating that with the help of Physitrax and Physitools is excellent technology. And I can say the overall M and A activity remains very high. We were looking at some very, very interesting companies at the moment in various stages of our M and A pipeline. And so we anticipate to continue to executing well there with a lot of discipline, but with a lot of speed once we are comfortable with whatever target companies that we do acquire. So more to come on that side of things in the coming quarters.
As you also know, we successfully completed an IPO on Nasdaq First North Premier And we were quite well received by the markets. And for that, we are very, very grateful. We'll come to that a little bit later on as well. But in terms of a business, this has been a very, very favorable journey for us and we have a very, very nice outlook in terms of what a publicly listed environment will do to us as a business. Notable wins in terms of bigger brands, Circle BMI Healthcare Became a customer that's the biggest private hospital group in the UK.
Very, very nice to welcome them into the PhysiTrak family. CBI Health is the biggest physiotherapy provider in Canada. Also very, very nice to call them friends at this point. And on the public healthcare side, notable wins apart from several NHS Trusts in the UK, Alberta Health Services in Canada was also a very, very nice win. Overall, activity has been very, very strong and the continuation of digitization, which has become a bit of a trend following COVID-nineteen that very much continues for us.
But more on that later, but those were the highlights. Now let me back the tape slightly just because I can appreciate some of you are new to the company and so we'll give you a few soundbites here just for you to get some context. So we are a B2B virtual care company. So our customers are mainly clinical providers in the public and private sector, more so on the private sector on a global level, 90% of our business is software as a service or pure software as a service meaning that there's a very, very high degree of recurring revenue in our revenue streams. And we also have a 10% focus on Virtual Care Delivery, where we act as a healthcare provider ourselves, I'll get to that more in a moment, that's about 10% of the business today.
We have a high growth, high profitability philosophy in the company, something I spoke about in the introduction, very, very important to grow at a pace which doesn't put the company at risk. As the largest shareholder of the business and my co founder being the 2nd largest shareholder, this is especially important for us to protect value with this type of philosophy, but without actually compromising on the upside that that gives. It's been very, very favorable in the past. In terms of the target market that we address, it's multibillion, It's global. You have some very, very strong macro drivers to that addressable market.
In terms of size, we've seen that. We're about SEK 7 point €1,000,000 on a run rate basis at the end of our fiscal quarter, the growth numbers have been very, very strong for us And we continue to see very, very high potential in what we do. And for those that of you that are interested, the RESD profile is very interesting with a lot of projects that we have to support the delivery of care in rural areas, a lot of research into, among other things, of various cancer diagnosis and of course some of the projects with providing care to some of the indigenous population in Australia and the Royal Fire Doctors. But more to read about that on our Investor Relations page. Just a quick soundbite here.
We're a truly global company. Where you see a red dot, you have a person on the ground. And so We do a lot of business development out in the world. We have representation on the ground in Melbourne, in Jakarta. We have some finance functions in New Delhi.
The application and content is developed in Europe and so with Application development in the Netherlands, coding in Poland, software service sorry, software reliability engineering in Poland as well, content development in the UK and in Finland, It says representation in several mainly European countries, strong presence in North America and also representation in South America. We have a templated model for growing internationally in that we use a proprietary technology for localization and translations And it doesn't take a lot of resources. That means that we can actually push out quite widely, which we do on a regular basis, and I'll return to that as we look at the market outlook and new markets that were penetrating. So overall, very, very nice to be a truly global company and without actually putting the business at risk by doing so. This is my last slide in terms of the business background, but just illustrating what we do in terms of the two business models that are part of the company.
On the left side there, you see that Fisdrag has a pure play SaaS offering where we provide technology to healthcare providers all around the world on a subscription basis. They subscribe to our technology like you would to a Netflix or to a Spotify or something like that. They use that technology with their patients to enhance the quality of care that they do. So very, very nice recurring revenue streams and it's about 90% of the business today. On the right side of and then you have that semicircle there.
We are actually a care provider ourselves through our subsidiary Rehab Plus in the UK, where we provide care to patients using our own technology. And this is how we get some of the unit economics associated with Patient care, 10% of the business today and there's a lot of interesting potential there that we're looking to develop in the UK, in Germany and in the U. S. As we continue growing. So that was it in terms of a background.
Now over to the business update. And we saw the initial public offering on the 18th June. So that was a very, I think, a very nice moment for us as The company to get to that milestone will be well received by the markets. We raised over SEK 200,000,000 in the process. There was substantial interest in the shares in the IPO and that's also filtered through in terms of the post IPO activity.
Now we are very, very positive about the impact that the IPO has had on the company in terms of our ability to grow customers. They really like having a company that's transparent, Great reporting, governance overlay and that gives people a lot of comfort as they participate in these tenders that we do in the healthcare industry. Also internally, obviously, having that scoreboard in terms of what the markets feel about us as The company, as they learn about our initiatives, our performance, etcetera, is a very, very valuable tool. So we couldn't be happier about this. So the IPO allows us to continue with the acquisition plans.
As you've seen on the IPO prospectus, if you read that, most of these funds are earmarked for further M and A. And we're very, very happy to be in that position because there's a lot, a lot of interesting activity in our M and A program at this point. Now just mentioning the M and A program, and I alluded to this in my introduction here, the Physiotools Acquisition has been very, very favorable to us in terms of also in terms of looking at the chart there on the top left, The Physiotools' library combined with ours makes up the biggest clinical home exercise library for physiotherapy in the world. So this has really, really boosted the content and the service as a whole and it's something that really supports the notion that people are actually ready to pay for great software as a service. And so we're able to ride on the Overall, software as a service trend would raise prices.
As you've seen, your Netflix subscriptions and your Spotify subscriptions have become a little bit more expensive in the last Year, year and a half or so and this is certainly something that we see filtering through in terms of price sensitivity at our end. And so that's very, very positive for the average revenue per user situation. In terms of market expansion with Physiotools, it was very, very exciting to launch in a big way in Finland and also in Sweden. So thanks to Physiotools' very strong presence in Finland and a subsidiary of Physiotools called Mobilis in the Swedish market. And this is really, really nice for us, not just because we're Swedish, but I think it's a very sophisticated market.
There's a lot of potential there and couldn't be happier to be there. And as I mentioned, EBITDA expansion through cost synergies mainly at this point, but we have started the synergies on the revenue side as well because Physiotools' average revenue per user ARPU is a lot lower than Physiotracks, despite the fact that It's a very, very nice product and it's a very, very well regarded business and this is certainly something that we are working on. We initiated some of that ARPU expansion at the end of Q2. So it's something that's expected to filter through in results in the coming quarters. It's a slower burn in terms of the pace of that because Fuzi Tools' Customer base is mainly based on yearly subscriptions, but we're systematically doing that month by month going forward.
And then quickly on RehabPlus, So very, very nice to have such a team of amazing entrepreneurs on board and very, very much a nice enhancement to Physitrack's overall business. It's a space we wanted to go into for a long time. And at their end, we certainly hope that they feel that we enhance their clinical offering with our technology. It's very, very nice. And as I alluded to, the market expansion with us being able to go into the care space, providing care to patients directly, very, very positive for us.
And of course, this has led to nice EBITDA expansion from just the acquisition itself, but also generating revenue that scales per patient user in the UK, in Germany, in the U. S. Is something that's very much exciting us at the moment. So, so much for the business update and I will pass you to Charlotte for an update on the financial results.
Yes. Thank you very much. So firstly, I'll take you through revenue and if I can direct you to the graph on the left here initially. For the 6 months ended May, total revenue grew by 184 percent or €2,100,000 against the comparative period. On a pro form a basis with the results of our recent acquisitions included in the prior comparators for illustrative purposes, revenue grew by 37% Or €890,000 This revenue growth was primarily driven by an increase in the user the number of users of the SaaS platforms.
Although price rises have now been implemented for both of our SaaS businesses, these were executed at the end of Q2 for Physitrack and the start of Q3 for Physiotools and the upside of these will be Flowing through in Q3 and beyond. On the right here, you can see the revenue by quarter with the prior year results having been adjusted on a pro form a basis. For the 3 months ended May 2021 compared to the prior year, total revenue grew by 127% or €960,000 to €1,700,000 On a pro form a basis for the quarter, revenue grew by €300,000 or 21%. It's worth mentioning here that 2020 sales cycles were very outside of the norm with COVID-nineteen causing disruption. What we've seen this year is an expected return to historically normal sales cycles with purchasing weighted towards the back half of the calendar year, where we expect the majority Our new enterprise sales activity to take place.
It should also be noted here that there is a movement of customers between the SaaS platform since the acquisition of Physio tools. So it's best going forward to assess the SaaS revenue as a whole rather than looking at Physiotrac and Physiotracools on a standalone basis. Moving through to the next slide. Looking at profit, Busytrac Group delivered EBITDA of €800,000 for the 6 months ended 31st May 2021 compared to €700,000 in the comparative period. As a result of the acquisition of Rehab Plus and IPO preparation, Specific one off costs totaling €328,000 linked to these projects were incurred, which impact comparability.
Adjusting for these one off items, EBITDA of €1,100,000 was generated in the 6 months, meaning EBITDA increased 61% compared to the same period last year. It should be noted that we expect to see the majority of the IPO related costs in the Q3 results as this is the quarter when the IPO took place. Overall, this resulted in adjusted EBITDA margin of 34% being achieved compared to 60% in the comparative period. This decline year on year reflects the previously signaled impact of the physio tools and rehab plus acquisitions coming into the group, which operates in a relatively higher cost base than Physitrack Standalone, a number of cost synergies have been identified and executed in these acquired businesses, particularly in physio tools. It's expected that these will start to flow through towards the second half of the financial year.
Moving through to the next slide. So here we have a picture of cash. In the 6 months ended May 2021, the group's net debt position increased by €570,000 from €500,000 to €1,100,000 Good underlying cash generation was offset by the acquisition of Rehab Plus, which was acquired with a €309,000 net debt position with a further €531,000 paid out in relation to this acquisition in the period. Additionally, one off IPO and M and A costs of €328,000 were incurred in the period. Excluding for these good underlying cash generation €549,000 was seen in the 6 months.
And moving through to the final financial slide. On this slide, you'll see a summarized balance sheet position. The movements here when compared to the balance sheet 12 months ago are for the most part driven by the 2 recent acquisitions. Notable movements include goodwill has increased on recognition of the goodwill generated on the acquisition of Physiotools and Rehab Plus. Deferred revenue has also increased as physio tools performs the majority of its billing 12 months in advance as opposed to Physiotrac's monthly billing model.
And the 3rd consideration has arisen, which relates to the rehab plus acquisition and is based on significantly stretching revenue targets with a profit underpin built in. That's all from me for now and I'll pass you back to Henrik.
Thank you, Charles. That's great. So a little bit about what we can expect from the market going forward And there are some very exciting opportunities. We have, in fact, never been busier as a sales team and that includes the Well, that actually excludes a few weeks during the worst part of the COVID lockdowns in 2020. But in terms of pre pandemic, post pandemic, this the highest activity of tenders and sales that we've ever seen.
We continue to see a very favorable macro climate for digital health. What happened in last year when we saw a very, very large amount of activity, especially in Q2, We saw as a bit of a Heinz ketchup bottle effect, ketchup effect and that we actually see that This was the start of something in terms of digitization. So very, very much not a temporary state, although the intensity of what we saw in Q2, It's unlikely that you will see that amount of business appearing in the space of 4 to 6 weeks, which was the case last year. But some very, very interesting growth dynamics And also looking at the second part of this slide there, the organic growth levers, we see this Digitization trend coming to more countries. And so I think we are very well positioned for the next wave of digitization of markets that have traditionally being more focused on paper in terms of medical records and in terms of especially I'm home access prescriptions and things like that.
We are building up a very strong presence in places like Southeast Asia, in Eastern Europe, in South America and beginning to look at a little bit at Africa as well. So this is definitely a place or a market which will continue to grow over the next few years. And we're very much pioneering some of that moving to digital. It's very, very exciting to be an entrepreneur pushing out like that. And of course, just reminding you, we have a business model for expansion that focuses on low risk and low cost for pushing out the new markets.
So it's very much a proposition that is not putting our financial stability at risk in any shape or form. So very, very exciting with that upside at the low risk. And on the right side, of course, the M and A initiative, we continue to very systematically on a disciplined model to explore M and A opportunities in several markets for notably the virtual care piece. Very, very interesting to expand that into Germany. Riaplaza is a very successful company in the UK and this is something that we look forward to taking internationally as well, while executing on the potential that we see in the UK market, so Germany, U.
S. For virtual care very much On top of the agenda, we are working our way through opportunities there. We have an approach which actually gives us an edge in terms of sourcing because we can look at people that are very, very good at digital inside of our own user base and this is actually how we came across So, the REA plus when we executed that M and A transaction last year, super users of Fisitrack with great potential, with fantastic entrepreneurs. So more of that to come, also things that can enhance the platform, things that might make more sense to acquire than to develop ourselves. Although Limited in scope, there are a few things that we'd like to do that have a little bit of a longer runway than developing it ourselves.
So we're actively looking at some of that. And of course, lastly, the geographical expansion in the way that we did the physio tool situation and got established in the Nordic countries, Very, very interesting and it's something that we're looking at. So active in all of these, a lot of things going on. We and again, we are disciplined up to the point where we're very, very comfortable with the company, with due diligence on the legal side and the financial side. Once we are comfortable, we tend to execute with quite some speed.
The Physiotools acquisition was completed in 9 weeks. RIA plus It was 12 once we were comfortable with what was going on. My final slide here before we open up for questions, just reminding you about the growth and margin and dividend distribution targets. So first on the left side, we can expect growth to be in the 30% region. This is something that on an organic level, obviously, the M and A side of things will boost that further.
Something worth pointing out That what Charlotte was alluding to, there is seasonality in our growth model. It's not a straight line across the year. 2020 was a bit of an exception with that. You saw a lot of activity in the space of a few weeks in Q2 of 2020, we don't expect that to repeat itself again. We are reverting back to normal Tender activity and tender pacing, which is normally a year end heavy activity.
So Q3, Q4, This is when people consume budgets that for digital and for investments that usually are awarded or allotted towards mid year or in Q3. So just a heads up on that, that you're not going to have a straight curve in terms of growth. And so Q3, Q4, the biggest month in terms of revenue generation on the enterprise side of things. And as I said earlier, we've never been busier on that front. Profit margins 40% to 45 percent EBITDA margins, which is less than what we have historically clocked in at on the SaaS platform.
What you have to keep in mind is that you acquire businesses that have lower margins, you will have a margin traction. And then as we did with Fisio Tools, you work on expanding the margin with synergies and also looking at the pricing situation and things like that. So you can continue to see this sort of accordion behavior in terms of our margins. It's not going to be a straight line there either. You can expect These fluctuations, which is just part of the day to day of running a business like ours that combines organic with inorganic growth.
And lastly, dividends, we think that's successful stable companies with a nice financial profile. They should be paying dividends. We are no exception. However, in the short to medium term, we expect to reinvest cash notably in the M and A program. But in the longer term, We obviously we like the fact that companies yield something in terms of cash on investment for shareholders and we're not strangers to that either.
And that concludes our presentation and we're happy to take questions both in the chat field, if you have anything there. And we have Nav on standby as our operator for taking questions over the phone. Now I have a question already here on the M and A program, and I believe we answered that. But just the question is what can we expect in terms of M and A in the near term. And as I said, we are active within those three pillars of expansion through M and A, virtual care enhancing the software platform and geographical expansion a la physio tools.
We have active Potential targets in all of these in various stages, but we are very disciplined about how we work our way through those and how we do our homework. And there is a funnel methodology where you start with a long list of interesting companies, which we can uniquely source through our user base when it comes to virtual care providers. You work them through a shortlist and then eventually as you do your due diligence on them from a financial and legal perspective, You come out with something that's worth having a discussion with management and entrepreneurs about. And if everything goes well, we We speed things up quite nicely at the end and we have an ability to execute with an excellent in house team and outside legal counsel and advisers to Just make those things very, very nice. But we don't run into anything where we are not 100% comfortable with what's on the table in terms of an opportunity.
Okay. We don't have any more chat questions at the moment. So let's see if there's anybody on the phone that wants to ask anything.
Thank you. We have a question from the line of Joakim Gunnell from DNB Markets. Please go ahead.
Thank you very much and good morning, Henrik and Charlotte. Congratulations to a great start as a listed company. So I have obviously a few That's from my side. And I think we can start off where we ended here on the M and A program. Can you perhaps comment a bit more on how becoming a listed entity in a rather fragmented, Largely private tilted space will become a key competitive advantage for you.
And also, I mean, with regards to what we have seen with, I mean, yes, quality the investor appetite for digital health models as of late, if you have seen any Trends in, I mean, call it prices demanded from sellers and perhaps also since I get a sense here that your M and A program could be tilted towards virtual care In the near term, can you perhaps say something there on how business in virtual care I mean complement your current capabilities from Real Plus.
All right. Very good Joakim and thank you for great questions and thank you for the congratulations. Regarding the M and A program, how do things change when you're a listed company? Well, you have the visibility, you have A brand recognition and you have a stability profile that's very favorable as you reach out to fellow entrepreneurs. Usually, they We do tend to, on the virtual care side, to reach out to people that are customers and that know us.
And so it's not like we come in from nowhere, but it certainly helps to be a known entity with a verifiable background, the fly by night operation and you lift the phone to somebody and say, hey, so How about considering an M and A transaction with us? So being listed is actually a huge advantage to that. Now in terms of This is we're obviously we like acquiring with cash. I actually think that entrepreneurs that have spent a big part of their lives Building a business, taking a lot of risk, they deserve to get cash upfront in a transaction. That makes it a little bit Easy for them to jump out of bed in the morning and to continue to be an entrepreneur inside of a group because that's what we want.
We want companies that are on the up and up. We don't want founders that want to sell their business and then jump off and live on the beach a few months after the transaction is done. So we actually think that cash helps that. Now, the interesting part of this is that when you're a listed entity and you have shares that trade in public markets, The founders can actually choose if they want to acquire shares in the market with some of that cash. So that's something that we certainly have had some interest of with the discussions that we have had, which I think is that's a great idea now in terms of using the shares as Acquisition currency, that's not something that we're looking at in the short term.
We actually like cash, I think, is a superior way of doing M and A. But obviously, in the long run, we might come across somebody that actually absolutely does want shares as a consideration and it's much, much easier to put something like that together If you're a listed company and then as a private company with shares that has a value that who knows, that might or might not be realized. And lastly, on this point, it's definitely an edge to be an entrepreneur. It's an edge to be a company when you acquire You're on the M and A track rather than the private equity fund, because there's a context for an entrepreneur to come into, which is Very dynamic and very fun, not to say it's not fun to be acquired by a private equity fund. So by all means, that's something that anybody listening wants to do.
So Don't let me stop you, but it might be fun to actually be part of a dynamic business that's full of entrepreneurs that want to grow together. And we have a nice way to align interests between the performance of an M and A story and the payout. So, a lot of, lot of upsides, so it's a long list of things. Now, in terms of the I had a Joerg, I'm going to just I had a follow-up on that that just came in which is relevant. I don't have to skip back to it.
Can I say something about how big these companies are in terms of revenue that we're looking at? I think there is a sweet spot for companies in that we are looking at that's between €1,000,000 €5,000,000 of turnover, give or take. So I think size wise, they're small enough to have a lot of upside potential in a big market like Germany or the U. S. And so there's a lot of appetite left for the entrepreneurs to really work hard to achieve growth.
If they're too big and too established, You might not have that type of pace and the type of hunger anymore. So I think that's important. And also, of course, in terms of we're now a relatively small business with a core team of, say, 45, 50 people and to take on a company that's too big It could have an adverse effect in terms of the synergies because if it's too big, it's hard to work through all the employees and and finding the pockets of potential and cost savings and things like that. So we really need to make sure that we Have something in the sweet spot that has the upward momentum and also have the size that's easy to work through. Now to the virtual care question, We see a lot of potential.
There is potential in the Rehab Plus business model as it is now with in terms of the growth and the pace of that growth with the people that they have, the technology that they have, the scaling that they're able to do because it's more human heavy than a software business. We do see that We can enhance that further with our technology, looking at things that we can do with, for example, digital triage where you start your relationship with a customer in an app format instead of a face to face or a virtual call, for example. So there's Some things you can do there to make sure that you have the scalability of that existing business model, which is B2B based on referrals from insurance companies and corporates mainly. We're also looking at other enhancers in terms business model that could be interesting to revisit in the future earnings call. I'm not sure if that was a good answer to that.
Yes, I think that was extensive enough. But perhaps to continue on that topic, I mean, There will be a slight change in the revenue mix or composition here over the coming years. Obviously, there seems to be a lot To do within a virtual care as opposed to the already very proven SaaS models that you have. But can you say anything here about How this will basically impact both, call it, I mean, How that will enable you to both deliver on your medium term 30% plus organic growth, but also perhaps How that bridges with continued margin expansion from where we stand now given that as you say, I mean, the scalability of the These models are slightly different from each other over the coming years.
Yes. So these are good questions. I expect to have More information related to Rehab Plus's business model, we're working on a few things there that will align it more in terms of the scalability and in terms of the repetitive nature of revenue streams That's more SaaS like in nature. And without my back pocket, I'm very confident that Even though you have a higher tilt towards virtual care, it's not going to impact the margin or the growth targets in that. But this is not something that we are ready to discuss on this quarterly call, but it is something to look out for and then, I'd say, short to medium term on that.
Great. We'll have a look elsewhere that then. But what I found quite impressive here is obviously that although you face, I mean, tough year over year comparisons here in Q2, And as you said, there are no differences in the business model. The growth rates was quite nice on a pro form a basis here, especially in So can you say anything? Because it seems as churn are quite low in the chart in the SaaS model at the low single digits.
So but perhaps as opposed to revenue growth, what changes have you seen on a year over year Development when it comes to actual utilization of the platform, are users as engaged as they were a year ago, etcetera?
I'd say that users are more engaged because they are realizing that they have to provide for what, of course, during the more intense lockdown periods, which we experienced in mainland Europe and places like the U. S, It was very intense. They realized that we do have to be able to we have to use digital to engage for the patients. And so you saw a shift in behavior there where health care providers very quickly had to adjust to the digital way of doing business. And the interesting part of that is that we think that this is a permanent change in behavior And it's something that's definitely creating a different relationship to our software to compare to what it was before, whereas you used to see it as a complement to hands on treatment.
And you give somebody a home exercise program as you're face to face with that person and that patient and they use it mostly when they come home. But now, this is something that's it's more of a continuous and more of a fluent Relationship to the tech where you look at doing digital triage and intake prior to the first appointment that a patient does. And so you start engaging with the technology already then. And then by the time that the patient comes in to see you, you will be looking at your screen to see what And then they might already have received an exercise program at that point in time. And of course, people have looked at the hybrid version of the CARE model where they do virtual similar to reapply, so virtual first And then they do hands on stuff and then they mix the disciplines.
And so, it's created, I'd say a more active user profile, which I think is very, very positive overall. And I think this is probably the new reality, the new norm for how people interact with the technology. I don't see a reversion back to this just being tech that you can use as to supplement to a face to face situation. It's very much something that's a bigger part of the patient journey.
Understood. And perhaps A final for me, Dan. Given that you have already managed to establish such, I mean, a critical user base in your current geographical So footprint, can you comment a bit more here on where you would say you are in terms of your monetization journey? You commented in the report here that, okay, you have already initiated some price increases here, given the enhanced platform capabilities. But what other initiatives are there here to drive ARPU growth over the yes, say coming 1 to 2 years?
And perhaps also alluding to that, it would seem that the largest share of your Most of your existing users are definitely, I mean, exercise prescription and education users. But where are you now in terms of Although, I mean, delivering and executing on cross selling initiatives to other modules as well.
All right. Very interesting. So, 1st of all, looking at the revenue situation, as we alluded to, there is less price sensitivity for great software as a service products, things that become mainstream in people's lives. People were used to having Free models where you'd pay with your data or you have freemium models where people would have a free subscription and Pay with advertising that we would have to listen to in the Spotify streams, etcetera. But over time, this has very much gone away and people are now used to having software as part of their lives that they want to pay for, you know, Apple Music or Spotify or Netflix and all those things.
So certainly, there's an understanding for that, you know, Technology costs money, technology that delivers something important and technology that does something great for you, for your life, for your business is worth paying for. And this is something that we have seen as well in the business where we had a lot of price sensitivity for software even though we had So much amazing content, so many amazing features that we built up over the years. Still, price sensitivity was very, very high. But Over the years, people are actually willing to pay a lot more money for things that make a big difference for us. And certainly, that's something that's underpinning Revenue growth with existing subscribers is not pushing away new subscribers either because you can actually see that the pacing at which we sign up new businesses, small to midsize businesses, tender activity, It's never been this high.
And so that price sensitivity is going away. Now, in terms of cross selling, Something that we have seen definitely a trend for is that people want to have a better Visibility for their business inside of the technology, they want to tailor the patient experience with the sort of the unique methodology and the way they want to communicate and the brands, etcetera. And we've actually seen a lot, a lot of activity for custom Apps at our end, which is an important ARPU expander through cross selling, we have actually never, ever been busier And on that front and that's certainly bearing fruit, we think that where custom apps, You can see that with the likes of Nuffield Health, for example, in the U. K, the biggest private care provider in the U. K.
We have our customer, for example. So usually, historically, larger companies would be the only target group for these type of apps. Now, what we've seen is that the smaller companies, the small to mid sized companies, are more hungry for to have to communicate the brand identity and their methodology with the custom apps. And so we've actually vastly expanded the scope for upsells in the user base for custom apps. And there's a fair amount of activity in terms of data.
Also, we have a busy data range and Aussie telehealth remains stable at a very high level that was established during 2020. So, all in all, a lot of interesting potential without actually having to grow the user base at all. And just tying into that, by the way, because I had a question here that came in through the chat. Looking at your subscribers, seems like they are leveling out a bit from the boost during Q2, Q3 2020 in the range between 34,000,000 to 37 So, 37,000, what are your own expectations and strategies to grow the base in the second half? Well, so, first of all, we've never been busier in terms of tender activities.
So there was a lot of knee jerk reactionary behavior to the lockdowns and the pandemic in 20 which filtered through actually Q2, Q3. So a very, very big boost there compared to I don't think we'll live through a Q2 2020, again, as a business. And you can expect that you'll have Q3, Q4 focus in terms of purchasing activity and that also comes with a growing user base. We have Again, we see a continued scope for strong growth of the subscriber base as well, not just the ARPU piece and the cross selling, etcetera. And that's part of the growth perspective for the end of the year.
We are at probably 50% higher in terms of monthly Growth subscriber growth compared to a pre pandemic level, sometimes 100% higher. So it is definitely very, very high. And last point on this, you do still have some you still have lockdowns That come in and out of people's life, you do see that some of the expansion that people might have planned during pre COVID. They might have put some of that on ice. The biggest source of growth is for us in terms of subscriptions are really the existing customers growing bigger and opening up more clinics, etcetera.
So, you see a little bit of You know, risk management there in terms of that people might not want to open something when there's a Delta version of the virus spreading out in the world, But that's, I think that eventually that will go away and I actually see that the subscriber base will continue to expand, not to Q2 2020 levels again, but definitely what we've seen in terms of the pacing pre and post the big lockdowns. All right. Joakim, did you have any more stuff that you wanted to ask about while on the call?
For now I am fine. Thank you, Hendrik and Charlotte and hope you have a great continued summer.
Yes. Thank you. You too, Jorgen. Okay, we have one question here. Can you describe how one of the new large customer works, who pays you, the hospital group, indeed.
So if you're looking at the software as a service side of PhysiTrak, we will if it's a really big one, you're subject to a tender process where they would invite several companies in the same space to participate. In all honesty, if this happens in a place like Australia or the Netherlands or probably in the UK, there is really only one clear winner of that because Nobody else has the size of the library and has the tech and the stability as a company. Most certainly, it's helped by the IPO. If you look at the U. S.
Market, we do have more competition in North America. And in that case, you might have, I'd say, It's usually between 3 providers. And depending on what the customer wants, it might be tilted towards somebody else that has a component in their stack that we don't have. Now, but once you if you win a tender, There's usually a contractual process depending on how tough they are and how tough the lawyers are, but we have some very tough lawyers as well on board actually, so that helps. But after the contractual process, you look at the rollout that's mostly based on semi automated processes, meaning that people we have certification programs that rollout across a big group.
And so we actually if you look at a company like CBI in Canada, they start with, I think, 1,000 subscribers. There's potential to grow that to 50,000. They're absolutely huge. But it doesn't change anything for us because they use the same Onboarding methodology in terms of, you know, there's some nice video based tutorials. We scale a lot of the automated processes from the small to midsize side of things when we roll out in a big ecosystem like that.
And then over time, it's a lot about just delivering a really stable, innovative and great service that they love using. And if you do that right, they will be very happy with you. And an additional thing that will happen to a customer as They work with you is that if they do really well, they will win more business. So as they grow, they win more business. Well, then they need more licenses, they need Customer apps, they need data, they need the telehealth piece and then we grow with them.
So it's usually a very symbiotic relationship. Some of this is described in the AgBio prospectus where we look at a couple of case studies with some of our customers and how they've grown their revenue with us. And as such, we've been rewarded with doubling and in some cases with quadruple of revenues with The same customer over time just because they've been very successful with the tech that we brought up. So I hope that makes sense. And who pays?
Again, always businesses For the SaaS side of things, when we look at the virtual care side of things, it's an insurance company or it's a corporate that will pay the bill for the patients that go through RehabPlus' virtual care program. All right. I don't see any more questions here on the little question ticker. And Did we have anything more on the phone, Nav?
There are no further questions. I'll hand it back to you.
Joakim, he ate up all the questions. Okay. But thank you very much everybody for participating in this first interim results webcast from Fisitrack. Thank you so much for your confidence in us and we look forward to speaking to you again in the near future. Have a great day.
Thank you very much.