Enlitic reported a robust 41.1% increase in quarterly revenue alongside the completion of its strategic acquisition of Laitek, positioning the company for operational cash flow break-even by the end of 2025.
- 41.1% revenue growth to US$0.80m in Q4 FY24
- Completion of Laitek acquisition expands service offerings
- Multiple new global customer and distribution agreements signed
- A$23.4m capital raise supports acquisition and growth
- Operational cash flow break-even targeted by end of 2025
Strong Revenue Growth and Strategic Acquisition
Enlitic, a healthcare technology company specialising in AI-driven medical imaging software, has reported a significant 41.1% increase in quarterly revenue to US$0.80 million for Q4 FY24, up from US$0.57 million in the previous quarter. This growth was bolstered by the mid-October completion of its acquisition of Laitek, a US-based provider of medical imaging data migration and routing services, which broadens Enlitic's product suite and market reach.
The acquisition, valued at approximately US$4.95 million, was funded through a successful capital raise comprising a A$22.5 million conditional placement and a A$906,000 share purchase plan. This financial backing has not only facilitated the acquisition but also strengthened Enlitic's balance sheet, with cash reserves rising to US$7.16 million at the end of December 2024.
Expanding Customer Base and Global Partnerships
Enlitic has secured multiple new customer and distribution agreements during the quarter, including notable partnerships with Darwinist, Medica Group, Philips Healthcare, Bayer, DMC Healthcare, National Cancer Centre Japan, and UltraRad. These agreements are expected to contribute to revenue growth in calendar year 2025, following client onboarding and integration phases.
Particularly, the three-year global distribution contract with Darwinist integrates Enlitic's Ensight 2.0 platform with Darwinist's Beagle platform, potentially generating shared revenue up to US$300,000. Meanwhile, the Medica Group agreement is poised to deliver approximately AU$310,000 annually, underscoring Enlitic's expanding footprint in the telemedicine and teleradiology sectors.
Cost Synergies and Operational Outlook
Despite a net operating cash outflow of US$4.4 million in Q4, largely due to one-off acquisition and integration costs related to Laitek, Enlitic has identified and implemented cost synergies exceeding US$2 million. These efficiencies are expected to normalize quarterly cash outflows to approximately US$4.2 million in Q1 FY25.
CEO Michael Sistenich highlighted that the combination of anticipated revenue growth and a substantially lower normalized cost base forms the foundation for Enlitic's expectation to reach operational cash flow break-even by the end of 2025. This milestone would mark a significant step in the company's transition from investment phase to sustainable profitability.
Looking Ahead
Enlitic's open pipeline opportunity has expanded to US$93.3 million, reflecting the combined potential of Enlitic and Laitek's customer prospects. The company remains focused on commercializing its AI-driven data standardization solutions and scaling its customer base globally.
While the integration of Laitek presents some short-term financial pressures, the strategic acquisition and robust new contracts position Enlitic well for accelerated growth and enhanced market presence in the healthcare technology sector.
Bottom Line?
Enlitic’s strategic acquisition and expanding partnerships set the stage for a pivotal 2025 as it targets operational break-even and sustained growth.
Questions in the middle?
- How quickly will new customer contracts translate into recurring revenue streams?
- What are the risks associated with the integration of Laitek’s operations and technology?
- Can Enlitic sustain its cost efficiencies while scaling its commercial footprint?