Beamtree Holdings Limited (BMT) Earnings Call Transcript & Summary

Good afternoon, everyone, and thank you for joining Beamtree's Half Year 2022 Results Investor Webinar. Joining us today is CEO, Tim Kelsey; Finance Director, Cassandra Chen; Chief Strategy Officer, Cheryl McCullagh; Chief Commercial and Development Officer, Duane Attree; and Chairman, Mike Hill. [Operator Instructions] I would also like to remind you that today's presentation is being recorded. I would now like to hand over to Mike Hill, Non-Executive Chairman of Beamtree.

Thank you, Lauren, for the introduction, and thanks, everybody, for joining us here today. We've got a great number of participants joining the call. So I appreciate your time to listen to the team. I'll take you through the half-yearly investor presentation. I'll begin today by acknowledging the traditional custodians of the land on which we meet today. I pay my respects to their elders past and present. I extend that respect to the Aboriginal Torres Strait Islanders people here today. First of all, I want to say that Beamtree is progressing every 6 months from strength to strength. Seriously, the growth, the effort of the team that is putting to form Beamtree in what it is today, and what we can see where Beamtree is headed in the near term is extraordinary. Revenue of 91%, including acquisitions, to $7.1 million for the half. Or taking the acquisition out, a 24% pcp organic growth. ARR, $16.8 million, up over 160% including the acquisition, or close to 20% on an organic basis, means that we are making very strong momentum both on the acquisitive strategy as well as what's going on with the organic side of the business. 100% customer renewal is also something that can't be surpassed. This is certainly a set of software products that are embedded deeply in diagnostics and hospitals, which make it incredibly important for those customers to continue to use the products and the extension of the products that you'll hear about today as those businesses continue to strive for better patient outcomes. Some really positive highlights that the team will talk you through: the work that's being done with the likes of CALHN in Adelaide; Southern DHB, New Zealand; Royal Children's Hospital in Melbourne and Queensland; the extension of what we're doing in Saudi Arabia; the work that's going on in South Africa with Ampath, the #2 pathology player in South Africa is really exciting, bearing in mind one of our largest customers here today is #3 in South Africa, Lancet, so there's some great work being done by the team there; successful integration of Potential(x) and the Ainsoff acquisition and obviously, the Pavilion business that was acquired sometime before has been working really well. Duane will talk to a really positive Health Roundtable momentum experienced in the advisory-led business and the data insights part of our value-add to customers. We are investing for growth. We want people to know that we have -- we strive for a seriously bigger company in the near term. And that means we have put on both OpEx into the business as far as executive firepower, sales support and also, obviously, product development has been -- some exciting new releases across the product range that the team can touch on as well. I'm going to hand it across to Tim, Duane, Cheryl and Cass who will take you through the half-yearly investor presentation. And as Lauren said, we'll make time for questions. We'll monitor those questions as we go today, but also try and pick them all off at the end of the presentation, if that's okay with everyone. So over to the team to talk us through the half-yearly investor presentation.

Thanks very much, Mike, and thank you to all the participants in the webinar for your time. So Lauren, if you could move to the next slide, please? So -- and the next one? Thanks to Mike for his words. You've been introduced to the cast today. So next slide, please. Thank you. So this is just the highlights of the half year. We've had a very strong half year, in fact, supporting governments and health systems around the world not just with resilience during the COVID pandemic, where that's been in the acute phase, but also subsequently as recovery starts to become a priority. We've seen during the half year a very strong growth in international pipeline, and we'll shortly be making some market announcements about contracts in a number of countries including the U.S., the U.K. and Europe. I'm actually excited to speak to you from Riyadh and Saudi Arabia, where I'm in discussions with the Saudi Arabian government about continuing work here to support them with data quality and automation of administrative process in the health care system. But just to summarize the results here. So strong revenue performance with 24% year-on-year growth within what was the Beamtree business prior to, of course, the merger and acquisition with Potential(x), but on a statutory basis, 91% growth in the half year, very high quality revenue with 85% recurring revenue across the whole group. Strong cash position, ARR continued growth there. So some highlights. I think for me, the most important of these highlights during the -- in the context of the COVID pandemic, really just underlining how important our products are to our clients is the fact that we have -- we report 100% retention rate of existing clients. That's across all our products, including the data quality products, the coding products and the decision support products. So next slide, please. So just some highlights. Mike mentioned some of these during the year. I'd point to there in September, the top dot point there, you can see it rather small, but we'll obviously release this deck following this presentation. But the partnership we've established with central Adelaide local health network, Cheryl will detail this a little bit more, but this is the first time we have expanded our AI decision support platform into a major public hospital, providing support with the prediction of risk of deterioration of patients, a really important pain point for hospitals, very important to patient safety and also to the efficiency of operations, a very important contract signed back in September now underway. And in fact, that program goes live with clinical frontline staff next month. Another highlight would be in October, third point down -- in fact, second point down, we've established the global health comparators program. So building on the expertise that Potential(x) brought with its management of Health Roundtable. Again, Duane will cover that off a little bit shortly in essentially an enabling collaboration between hospital providers to improve quality through better use of data and comparative benchmarking. We've now launched an international program to bring together hospitals, leading hospitals across the world to be able to share their data for that purpose. And then finally, the -- just to highlight, the -- we've heard about Ampath, the -- just to highlight one area of significant growth for us has been rippled down in pathology. That was a core component of the original Pacific Knowledge Systems business, and pathology remains for us a very, very important growth market. And we've expanded operations of RippleDown in laboratories now into 2 additional countries across the world. So next slide, please. And this just gives you a bit more of a sense of that global pattern of operations that we're now engaging in, so literally well over 1,000 hospitals now participating, in use of our products, many laboratories and across 23 countries. Next slide. So some highlights. In addition to, as I mentioned, obviously, the merger with Potential(x) and doubled the size of the business in terms of the number of staff. And as Mike said, we've invested heavily, as we said we would, in implementation of our growth strategy in people, particularly in product and in go-to-market. So we've established a London office, which has now grown significantly as demand for services there grows, and have developed a very -- a new leadership team across the business. Next slide, please. Next slide. So just to remind everybody before I hand over to Duane, why we're here. So essentially, Beamtree brings together companies which have had a very long established and successful history in Australia, very proud Australian pioneer of automation and the use of artificial intelligence and machine learning in decision support. So really supporting the operations of health care, particularly hospitals and laboratories as we've just heard, to automate administrative process, for example, automate the coding of clinical records and also to automate the clinical process to support clinicians make better use of their time by providing them with support. That means they don't have to pay attention as much as they might otherwise have to do to the more menial tasks that can be conducted by our technology. And the reason this is important is because this strikes at the very heart of one of the biggest issues in modern health care, which is the prevalence of waste. So as you can see here, research -- and in fact, this is almost certainly an underestimate. Research is very widely cited in health care reports, at around 15%, 15% of hospital expenditure in the developed world is wasted in a number of important ways and is therefore not being used to best advantage for patients. And that's where we offer most advantage. One of the reasons why our products report 100% retention rate is that once they are in deployment, they are so effective at supporting administrative and clinical decisions that to take them out of operation would actually increase costs and reduce clinical effectiveness in our client organizations. Next slide, please. And this is the vision that we support, the vision of the Learning Health System. As you can see, this starts with data quality. So right at the beginning of the journey of the -- of knowledge management in health care, where the data is being created from those free text notes in the clinical record being standardized into what I call classifications, we support the reduction in errors in those classifications so that health systems can be -- can reliably use that data for very important purposes, financial purposes, billing, for example, but also crucially for analysis of how well they're treating their patients, how can they target their efforts to reduce instance, say, of harm, avoidable harm that occur to patients in their hospitals. That takes us then through to the second sort of part of the journey of the Learning Health System, which is once you've got that reliable, authoritative data, you're able to start using it for benchmarking, for comparing your quality to those of your peers and your -- both nationally and internationally. And then finally, with those insights, you're able to turn those into actionable rules that can actually support clinicians and the coders and other members of the team in your health care system to make better decisions in very near real-time. So that's the vision we're supporting the Learning Health System. Next slide, please. And this just breaks it out into the 4 kind of key areas of our operations. So first of those is a series of products around clinical coding where we essentially offer automation of the process for validation, the quality of clinical data, really important right around the world, and now moving into our first prototypes of actually the automation of the coding process altogether, a very exciting set of innovations. We'll be making some announcements about our first partners with those early prototypes over the next few weeks. In the analytics and insights area, obviously, with the acquisition of Potential(x) really become a world-class center for data science and comparative benchmarking. Now, as I say, not just deeply embedded in the Australian environment, but now beginning to operate internationally in a number of context. And then finally, just going to that box at the bottom on the left-hand side, automation and decision support, where we've been field-leading in diagnostics and pathology for many years and now beginning to migrate our expertise in the application of decision support into the hospital with a number of breakthrough applications that have been facilitated through the acquisition of Ainsoff. And then finally, advisory and services -- sorry, just that fourth box, which we regard in a way as a kind of lead delivery. So we don't do a huge amount of advisory. What we do, though, what we're really doing is demonstrating to a client, often a country, in fact that's one of the reasons I'm in Saudi Arabia where we've just concluded a major program that's reviewed the quality of data across the public health system in Saudi Arabia. And that's revealed a number of important recommendations for the Saudi government to consider in relation to improving data quality, and we're now talking to them about moving to a more automated adoption of some of our services in order to process that data quality improvement more rapidly. So those are the kinds of core areas of our operations. Next slide, please. And just very quickly remark on the quality of the integration. So obviously, doubling the size of our company through the -- through merger with Potential(x) has been a tremendous opportunity and the rationale we explained at the time we did it to accelerate growth in global markets to also just deepen our expertise in data science and build our ability to really make a much more kind of viable offer in that space, and of course, just to grow our market share through the merger. But I'm very, very glad to report that the integration process has been very successful inside Beamtree. And now we very much have one Beamtree focused on our core mission, the Learning Health System. Next slide, please. Yes. So just to recap really on that point, just the quality of the integration. We set up a program that's gone very well, and the government has been excellent. Next, next slide. Yes. So at this point, I'm just going to hand over now to Duane to take us through in a little bit more detail the ways in which we're driving synergies through the acquisitions, through the mergers of both Potential(x) and of Ainsoff. Thank you, Duane.

Thanks, Tim. Good afternoon, everybody. My name is Duane Attree, Chief Commercial and Development Officer. So as we -- as Tim has alluded to, we've brought now together a range of capabilities over the last 3 or 4 months into the Beamtree Group. And what we're now in a position to do is start to think through the go-to-market and product strategy for all of those capabilities. So this slide essentially takes that Learning Health System model and seek to identify the different target areas, the different uses and end users of our products and services. So if you think about learning in any context, what we need is a level of data and information that we can consume, we need time, and then we create an action and a feedback cycle. And so what we're trying to articulate with this product framework is that we will address clinical and informatics users in very rapid learning cycles, particularly using the RippleDown decision support. So I will engage with a Beamtree product as a clinician or an informatics user, and I will get immediate feedback. And then that scales out through an organization's context so it might form part of management reporting or alert in a similar cycle to management reporting. So that might be weekly or monthly. And then we're going to get to a point at which an organization seeks to learn, as Tim alluded to, in terms of comparative performance because it is where we start to find ways to create peer-to-peer and knowledge networks that in the Australian and New Zealand context, we'll share a lot of their operating models, and that largely goes to market through the Health Roundtable model. And then we see that extending into a globally relevant product and network of hospitals that are sharing their information and taking a much longer cycle of feedback. So the global excellence program will run for about 12 months for every participant, and we'll have a cycle of collecting data, identifying the different research goals and then embedding that into their local context. So this is how we're starting to think about products and services that integrate and cut across each of these 4 domains, but equally don't preclude any client from picking one entry point for the Beamtree solution set. So this is still work-in-progress. It's been tested in the market at the minute in terms of its narrative, and then obviously, the go-to-market and structure and product set that will complement this as it evolves over the next little period. Next slide, thanks. So just to expand on some of those points. Tim's already mentioned the CALHN partnership. The Southern DHB is the adoption of the activity bar coding, and that was conducted late last year in terms of the contractor signing, and we're not far away from the first milestone of that deployment. We have continued to roll out PICQ and RISQ within the local market and see us hold steady in terms of the market share there, as Tim said. And the international expansion is really where we're seeing the thesis of growth come to light. So a number of opportunities there, the completion of the Saudi work, as Tim said. We also completed a discovery project for Johns Hopkins; Aramco, a large private provider in Saudi; and a number of international opportunities in the RippleDown segment. Next slide, please. Our partnership model is really important to us. That sort of holds us really in good stead in terms of understanding client context and been delighted with some of the outstanding growth in the Ability Roundtable, which is our disability segment. Seen a 30% year-on-year growth in that partnership with the Ability Roundtable. And the Health Roundtable equally maintains its leadership position within the comparative and peer-to-peer network within Australia and New Zealand with some really good progress so far in a very tough operating environment for our Health Roundtable members and the introduction of multiyear subscriptions, which has led to forward commitments of around 20% of our membership into the next 2 years, which is the first time in the Health Roundtable's history of 26 years that we've got such strong commitment into the future. In terms of some of the new products that have come to market, so we've seen the RippleDown pathology expand into the microbiology setting. We can talk a little bit about the Abbott channel partner, I'm sure, in a moment with Cheryl's input. There has been some enhancements on our core products, RippleDown, PICQ, RISQ, and we've continued to evolve the analytics platform within predominantly the Health Roundtable setting. We have introduced a new dashboard, largely targeted at private hospitals in identifying where they may be at risk of health fund clawbacks from hospital-acquired complications, and that's delivered some terrific results for our beachhead client, where we adopted that. And we know quite deeply that well-being is an issue within the health sector, and that's only been compounded in the last 12 to 18 months. And so have been delighted to spend a lot of time and thought leadership and really understanding that issue within our hospital sector. And the Royal Children's Hospital late last year conducted a procurement exercise to take up the well-being index. That's separate from around 20-odd hospitals that take up the well-being index through the Health Roundtable channel. I'll hand now to Cheryl to walk us through, as we've iterated, the strategy and how that's playing out in terms of our future aspirations.

Thanks, Duane. Hi everyone, I'm Cheryl McCullagh. I'm the Chief Strategy Officer for Beamtree. And I'm just going to describe a little bit about the strategic directions that we're taking. So this diagram represents the growth across 3 horizons. And although we're working in all 3, our focus has been really on the current expansion phase and delivering on our growth acquisition and really proving the rationale for our integration so far. So we've done a lot of work in smoothing the generation of our cash flow, particularly through the opportunities that the adjacent markets and collaborative opportunities between Potential(x) and ourselves have given us in terms of some crossover of that market and especially expansion into the international market. We're looking after our people through a whole lot of development and incentives, and we brought in some new talent, particularly in the product development area. With clients, we are building trusted relationships and opportunities for listening so that we are ahead of what they're needing in terms of their health service development and promoting those listening opportunities wherever we can. And in technology, we've really invested deeply in the stability of our products so that they're there for the long term. In sales, we've done a lot of connection globally and enhanced our international teams to ensure that we are present in those leading markets internationally as well. In innovation horizon. We've established our thought leadership group. This group, the Global Impact Committee, is about to publish its first findings. We're using multiple forums to identify client needs and look at innovative market opportunities, particularly focusing on automation, and exploiting the talent we have already in classification coding and in decision support across those products over and build new products that are better and offer more to a health service. And in the transformation phase, we're encouraging cooperation, obviously, with our existing clients, but also with our new markets and potential spaces that are not in the traditional health settings, more in home care, more activity in the aged sector and certainly, in developing research areas. Next slide. Thanks. So we've been thrilled about the interest that has come from the Ainsoff products. Ainsoff, one, is a deterioration index that's focused on tracking patients through their care and identifying risk in a patient specific to their condition and their baseline. So it produces fewer false alerts and is far more specific and sensitive to identify risk in a patient. And this has been really exciting to many health providers across the world in almost every continent. And our first go-live in a major public hospital from our first contract last September with Adelaide is planned for March this year. And this will be the first implementation at scale, and that will really give confidence to the other clients that are looking at this product to say that this will work in that large-scale facility. Next slide. Thanks. So just a couple of highlights from our collaboratives. It's really important for us to work with clients and make sure that we are doing what is important to them. So part of what we do is actually servicing these collaboratives to make sure that we are hearing what's ahead of the market. The Global Impact Committee is really important to us in terms of actually facing some of the big health problems and asking questions about what we should be doing next as health leaders. Our international collaborative Global Impact Committee -- our Global Health Comparators, sorry, is growing, and we have now got people interested in a range of countries that we haven't seen before, Wales, Italy, Belgium and obviously, Australia as well. But you'll also see us promoting the well-being index that Duane mentioned. Well-being is important to every health sector that we're talking to. It doesn't matter whether it's in the acute sector or in other sectors. And this is going to be a really important step to manage, monitor risk in staff and to automate their support processes to make sure that we actually are helping with the workforce issues that exist in all health services right now. I'll move to next slide, then pass over to you, Cass. Thanks.

Thank you, Cheryl. Hi, everyone. I'm Cassandra Chen, Chief Financial Officer for Beamtree. I will now take you through the detailed financial results. At the half year, the group has achieved again a strong top line revenue growth and its total reported revenue increased by 91% to $7.1 million. Organic revenue grew by 24% year-on-year, driven by new contract wins, 100% renewal rate and also strong performance in delivery and advisory projects. Potential(x) acquisition was completed at 30th of September and has contributed $2.5 million revenue, $0.5 million EBITDA to the group for this half. ARR as of December '21 is now $16.8 million, which is over 160% growth year-on-year. Total operating cost is $7.7 million for the period. It has increased by $5.1 million compared to the last period, and it's mainly driven by $2 million costs contributed from acquisition and another $2 million cost increase in employee expenses as investment made from additional head count. Overall, the additional investment made is 50% invested in product and technology, 25% in sales and marketing and remaining, in various areas such as people, culture [indiscernible] and customer support. Overall, business has doubled in scale with head count of almost 100 staff as at December '21. Other cost has also increased in hosting fees and IT-related costs, reflecting increasing business activities across the group. [ I'll report our ] $350,000 operating cost incurred in the first half is related to delivery of the Saudi project, which is not recurring in the second half. So overall, the reported operational EBITDA loss is $180,000. And below the line expenses comprise of from the listing cost, some of the transaction costs related to acquisitions, share-based payment expenses, which is noncash expenditure, and depreciation on the transaction expenses related to the acquired intangibles and R&D. Overall, it was a [indiscernible] period with a premium. Moving on to the next slide. This slide provides you more details on operating revenue. Group recurring revenue now represents 85% of total revenue, driven by completion of Potential(x), which the business generates higher recurring data analytics revenue and new contract wins. In terms of overall revenue profile, 50% of total operating revenue is now subscription licensing from SaaS product, 32% is recurring revenue from data analytics platform and remaining is advisory and consultancy. Revenue from core SaaS products, including RippleDown, PICQ and RISQ, grew by 11% overall, in particular, RISQ grew by 29%. Moving on to the next slide. The group ARR, annualized recurring revenue, is now increased to $16.8 million. The acquisition of Potential(x) has substantially increased Beamtree's ARR through data analytics by adding $9.2 million as at the half year. Underlying ARR for SaaS and licenses has gone up by 17%, and it's driven by new contract wins. And overall, Beamtree has demonstrated continuous yearly growth in the last 3 years. Moving on to the balance sheet. So as at the half, we had $7 million cash on hand. Our net cash position was $6.5 million as Beamtree carries $0.5 million investment [ made as part of ] Potential(x) transaction. Total trade and receivables have increased by [ $3 million ] comparing to 30th of June. Debtor balance of Potential(x) contributes $1.8 million to the total, of which $1.6 million related to Health Roundtable received post half year-end. The remaining debtors balance largely related to the milestone payments from our Saudi project, which we expect to receive in the second half. Movement in noncurrent asset largely comprises of software intangibles, right-of-use assets from AASB 16 and goodwill. Increase in intangible asset reflecting acquired assets through acquisitions and continued investment in product and innovation. Increase in other liabilities are mainly driven by the additional employee benefits as group head count grows. And movement in other current liabilities is the [ $5.5 million ] liability we booked as at the half related to the [ 11 million ] deferred shares for our Potential(x) acquisition. We'll move on to the last slide on our cash flow statement. Total net operating cash flow is mainly impacted by timing of receiving foreign payments, $1.9 million milestone payment from completion of Saudi project expected to receive in the second half and debtor balance of $1.6 million related to Health Roundtable, as I mentioned earlier, is received post half year-end. Investing cash flow reflects investment in research and product development and net of cash consideration paid for the acquisition. Financing cash flow is reflecting the movement of proceeds from the exercise of options and lease payment. So that is all the financial highlights we provided today. Now I will hand back to Tim.

Thanks, Cass. So Lauren, over to the participants for any questions. I can see one from [ Mark Yao ], which is asking about, can you please provide some insight into the pipeline, and near-term opportunities you can share? So Mark, you'll understand that we aren't able to give details of contracts that haven't yet been signed but are in the pipeline. But let me give you a quick sense of what the growth trajectory has been. And the honest answer is that it's far more -- there's far more demand for our services in countries that are in -- now very squarely facing on to COVID recovery than I think we'd anticipated. That's particularly true in the U.K. where we're now in close negotiation with several large NHS hospital trusts for application of a variety of our services, including coding, the decision support applications that we've heard about the Ainsoff products and indeed also in pathology. And that's partly because the NHS in England, in particular, is, and Wales, is actually looking at ways in which it can automate clinical process to reduce the burden on clinicians so that they can work on key priorities around things like reducing the [Audio Gap] so engaged in detailed very advanced conversation that include the U.S. and Italy, Hong Kong and so on. So a very strong developing pipeline internationally as well as in Australia, of course, as well. So just to answer that question. [ Lyn ] has asked what is the underlying EBITDA margin for this half? Cass, could you just provide an answer to that?

Yes, sure. As I mentioned earlier, the additional investment we've made in the first half is to investment modeling technology to enhance and expedite our future growth. The underlying business, as usual, EBITDA remains positive and we'd be seeing at 25%. Thanks, [ Lyn ].

Thank you. [ Michael ], I'm aware of time here. So Mike, some direction maybe for you, but just to answer [ Michael Comeli's ] question around forecast cash burn in the next 6 months, Cass, what can we give guidance on that?

For the next 6 months, so we have brought in all the capabilities in Q4 as of right now from January '21 to now reporting [ '22 Q4 ]. So our -- you should expect our operating expenses to remain safe for the next 6 months. In fact, our cost synergy is expected to achieve from the acquisition of Potential(x) as well.

And I'll just quickly answer the question from [ Stuart Lowe ], who's asking, we've recruited quite rightly as you spot a significant number of new developers and product-related capability. They -- when we launched the growth strategy at the time of the capital raise last year, the growth strategy really was about investing in our technology platforms as well as in go to market, and that's been a very important priority for us. So those people are focused on developing not just new products, which, of course, they are doing, but also on stabilizing and maximizing the efficiency of the platforms for delivery of our current product set. So to say that our clients are able very seamlessly to move from one product within our portfolio to another, that's the -- that's been our principal focus. And we're adding resources quickly really because demand is accelerating, and we want to be able to maximize our market opportunity, particularly overseas to deliver on that demand. And then [ Julie Tay ] also has asked a question around could you please give me some more color around Potential(x) reported revenue contributions in the half year? On the face of it, given Potential(x) financial year '21 revenue of $11 million, would it be fair to deduce the revenue outcome could best be flat for the financial year, assuming some pickup in the second half? So Duane, maybe you could just give a quick sense of that.

Yes. I think perhaps just, Cass, to confirm my assumption that, that contribution is only one quarter not the full half year. So it's important to just recognize that, that's a quarterly contribution. We do see some uplift in Potential(x), but it's not in the sort of 15%, 20% of the rest of Beamtree. However, we are contributing to, obviously, the Global Health Comparators' work. And so that growth will come through into the Beamtree Group, and we look to report as an integrated business over the course of the next 6 to 12 months. So that work is underway. And while there is growth, it's not at the speed of other parts of the business, and we expect that to pick up once we get the [ data ] acquisition and our products deployed internationally that the analytics comes as a consequence of having good data in clients, and then the value add of how to use the analytical capability.

Yes. I'd underscore that. I think that we never -- the logic of the acquisition wasn't really about, in a way, disturbing the excellent and steady kind of growth of Health Roundtable Australia or the other networks that Potential(x) has been servicing, but really to look at taking the capabilities of Potential(x) globally and start to build what we believe are very strong growth opportunities in relation to international markets. A comment on Abbott. Probably remiss of me not to have commented on that. We are in the -- we will be making some commentary on the relationship with Abbott. There will be some changes. We're very excited by the opportunity that the Abbott relationship is developing, a step change, I think, in the way in which we've worked with Abbott the past. Abbott has some very exciting plans to -- really to significantly improve sort of the marketing support for RippleDown in international markets, and we'll be coming back to investors in more details on that in due course. But yes, very excited about a very different, I hope much more dynamic relationship with Abbott in the future. We're now, I think, Lauren, more less at time. Is that right? What was the...

Yes, we've got a couple more minutes and maybe we'll cap it by finishing off with [ Matthew ] and [ Leo's ] final questions.

Okay. So [ Matthew Keane ] has asked, clearly, the company is set up for growth. What quantum of revenue can the new cost base sustain? So [ Matthew ], all along, we've said that we, when we did the capital raise and growth strategy, that we would invest that money and grow the business over the next phase of its journey to an ARR business of $50 million plus. We're still absolutely focused on doing that. This is -- we have a structured plan for delivery of that opportunity. I am very excited by the way in which, frankly, COVID recovery, I think, provides us with an accelerated opportunity to reach that objective. But the quantum of revenue will be in that order based on the investments we're now making. [ Lyn ] has asked the question, any synergy identified for the combined 2 companies so far? So [ Lyn ], I think that takes us back to Duane's slide or the slide that Duane talked us through, which is the kind of dynamic of the opportunities for our services to facilitate efficiency and quality at a range of levels from the individual clinician through the organization through the peer network and so on. And that's really where the synergies lie. It's bringing together the expertise that Beamtree formally has in automation and classification with that of data science and comparative collaborative benchmarking that Potential(x) has so much experience in to enable us to offer very consolidated single -- really single platform for hospital and health system clients to be able to maximize the value of knowledge management. So that's, I think, hopefully, that kind of addressed that question, but very, very focused on driving synergies of that kind. So just one final question as I think we've got time to take, which is from [ Aneesh Travide ]. How do you market your product to new hospital groups? So to be absolutely honest here, we don't do that marketing -- much marketing because word of mouth is so strong based on the affection and commitment that our clients have to our product set that we usually find that it is just a recommendation from one hospital system to another. We are -- obviously, overseas, we are now stepping up our kind of market engagement, but it's really more kind of government level or senior leadership level. So over the last couple of months since Australia's border has opened, I've met personally with a number of representatives of governments in Europe and obviously, in the Middle East, as we begin to understand what they want us to support them to do. So that's really how we're doing it. It's quite, in a way, quite low key, low profile, but very much just listening to clients at fairly pretty senior levels, both in governments and health systems to understand how we can support them. So that, I think, probably brings us to the end of the session. Can I just thank all our participants for attending. I hope we answered your questions effectively. Obviously, if people do have any other questions, they're quite welcome to reach out directly to us. But thank you very much. Perhaps then back to Mike, just for a closing comment.

Yes. So thanks, Tim. Thanks, Duane, Cass, Cheryl, Lauren and everyone that's joined us here today. There's a lot going on inside Beamtree, and it's hard to distill down to 1 or 2 really exciting parts of the business. But there's the core diagnostics, the RippleDown business that it's where it all started from and the news that Tim just alluded to in us renewing their relationship with Abbott because it comes up in April of this year. So there's a lot going on behind the scenes with Abbott to refresh, renew and expand that relationship. The Ainsoff business that automates the clinical process to measuring patient deterioration, you heard, that's really exciting because it's rolling through hospitals, customers. And the acceptance of that can move into even broader uses across hospitals and indeed, as Tim mentioned earlier, across sort of governments of countries looking at problems inside of health care. So it's a really exciting part of the business. The computer-assisted coding, we haven't really touched on a lot, but that's a really critical part of the way patients move through hospitals, invoices get created, complicated codes, complicated costs within hospital organizations, picking up areas in data is all front of mind and part of what Beamtree can provide. The data insights that Duane talked to are the relevance of the health care roundtable and all the insights that come from sharing problems, sharing data analysis and solving for the whole health care sort of problems about improving patient outcomes and improving efficiencies and reducing wastage and all those sorts of really important parts of the business. There is a lot going on inside Beamtree. And I can tell you this that in 6 months' time, it's going to be different to what it is today. And if you look back 6 months, it was different to what it is today. So there's a lot of going on -- we're fast approaching that $20 million ARR. We are targeting the $50 million ARR, as Tim mentioned, and the pipeline is very strong. So watch the space. I really thank the team for all their hard work because there is, as I say, lots happening behind the scenes, and I hope that today was useful for all our investors. So thanks very much.

Thank you, everyone. That concludes today's call. Really appreciate your time. Have a good afternoon.