MedAdvisor (MDR) - FY25 and FY26 guidance with revenue of $93-99m for FY25
Proceeds from the recent capital raise will place MedAdvisor in a good position to capitalise on targeting organic revenue growth of circa. 15% and margin expansion for the consolidated group.
In conjunction with running a target cost optimisation program, with approximately $12.8 million in savings are expected between FY24–FY26 as stated by the company in their recent announcement dated 1 April 2025.
The story so far…
- The company has provided FY25 and FY26 guidance with revenue of $93-99m expected in FY25, and revenue growth of approximately 15% as well as margin expansion expected from FY25 to FY26 (as per announcement 1 April 2025). Guidance is underpinned by the following initiatives:
- Strengthened and diversified US health program pipeline.
- Reshaped sales structure & processes to de-risk and accelerate revenue growth.
- Margin expansion through the launch of THRiV next-gen patient engagement platform in the US.
- Enhanced fee models and new service offerings to drive growth in ANZ.
- Ongoing business optimisation, including Transformation 360 and the accelerated costout program.
- US saw growth in higher margin THRiV powered patient engagement programs which now represents nearly 35% of 2Q FY25 revenue. Below are some actions to capture further market opportunities (see April presentation for full details):
- Restructured sales team with appointment of experienced leadership (early FY25) and cut underperformers
- Revamping customer success function by optimising headcount and team structure for greater efficiency and effectiveness
- The Company has fast-tracked sales restructuring and a targeted cost optimisation program. As per the company’s recent announcement (1 April 2025), approximately $12.8 million in savings are expected between FY24–FY26, with $4.5 million in FY25 and $8.4 million in FY26. Operating expenses are forecast to fall from $67.4 million in FY24 to $54.5 million in FY26. Key measures include headcount reductions of ~44% in the US and ~15% in ANZ.
- MedAdvisor is ideally positioned as MedAdvisor Solutions works with over 34,000 pharmacies across the US with reach to over two-thirds of the population. In Australia, more than 95% of Australian pharmacies use MedAdvisor Solutions software to improve pharmacy workflow and to connect with over 3.7 million patients. The ANZ business continues to grow with the launch of new services and revenue streams, including telehealth and e-commerce.
- The Company is currently undertaking a formal strategic review process to evaluate strategic options to maximise shareholder value. It is of the belief of the Board that MedAdvisor Solutions’ current market valuation does not reflect the combined value of its Australian and US business units. Findings of the review continue to be refined in alignment with the Company’s stated objective of maximising shareholder value and maintaining the Company’s position as a leader in pharmacy-driven patient engagement. The Company expects the review process to be completed by 30 June 2025.
- Refreshed Board Changes includes Linda Jenkinson has announced (1 April 2025)her decision to step down as Chair from the Board to focus on other priorities in the US. Kate Hill has been appointed as the Interim Chair, with the Board changes taking effect immediately. Kate is an experienced auditor and business advisor with over 30 years’ experience of working with privately owned and ASX-listed companies across a broad range of business issues. A former senior partner and first female board member of top 4 accounting firm Deloitte, she has in recent years turned her focus, her energies, and considerable professional experience into Non-Executive Director roles. She is an experienced director of small to mid-cap companies listed on ASX and other global exchanges, with a successful track record in leading change involving new business models, new markets, and new technologies.
- CEO & Managing Director – Rick Ratliff, prior to joining MedAdvisor, has spent over 30 years in the healthcare and pharmaceutical technology sector in key markets in which MedAdvisor Solutions operates. He has led the development of a number of large-scale technology enabled healthcare businesses within global organizations such as IBM and Accenture as well as via start-up and early stage businesses including Healthvision, Surescripts and ConnectiveRx. Rick also worked with the Australian Federal Government to develop and deliver My Health Record, the leading online EHR available to all Australian citizens.
- The company has a well-equipped board and management team, with extensive hands-on operational experience in financing, healthcare and pharmaceuticals, along with commercial development in technology and healthcare. Some key MedAdvisor Directors also invested $375,000 in the recent placement (subject to shareholder approval).
About the company
MEDADVISOR LIMITED (MDR) is an ASX-listed, global leader of pharmacy-driven patient engagement solutions that provide personalized patient experiences to help simplify the patient medication journey.
Leveraging THRiV, a cloud-based, AI-enabled platform, MedAdvisor Solutions empowers the pharmacy of the future through improved pharmacy workflow and patient engagement solutions.
MedAdvisor Solutions works with over 34,000 pharmacies across the US with reach to over two-thirds of the population. In Australia, more than 95% of Australian pharmacies use MedAdvisor Solutions software to improve pharmacy workflow and to connect with over 3.7 million patients. For more information, please visit: medadvisorsolutions.com/investors
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