Diaceutics PLC (DXRX) Earnings Call Transcript & Summary

Good afternoon, and welcome to the Diaceutics plc Final Results Investor Presentation. [Operator Instructions] The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and will publish responses where it's appropriate to do so. Before we begin, I would like to submit the following poll. And I would now like to hand you over to the team of Diaceutics plc. Good afternoon to you.

Good afternoon, everybody, and welcome to today's call hosted by Diaceutics to discuss the company's full year 2024 results issued earlier today. My name is Simon Geelon, and I manage Diaceutics Investor Relations program. On the call today to discuss the results are Ryan Keeling, the Chief Executive Officer of Diaceutics; and Nick Roberts, the company's CFO. Before I hand you over to Ryan for his formal remarks, I would draw your attention to the forward-looking statement slide in our presentation, which is on screen now and also available to download at Investor Meets Companies and diaceutics.com. At this time, I will now turn the call over to Ryan Keeling. Ryan, go ahead, please.

Thank you, Simon, and thank you all for joining us today. Good afternoon, and good morning to those of you joining us from the U.S. I'm delighted to report on what was a great year in 2024 for Diaceutics. The format of today is I'll talk you through some top lines, then I'm going to hand you over to Nick to take a deeper dive into some of the financials. And then I'll come back and do a bit of a refresh on the overall value proposition of the business. And I'll also take the opportunity to talk a little bit about 2025 and some of the observations we have in the market, particularly at a macro level. Just zooming us back then to '24. For those of you who have followed us or indeed are new to the story, the story of Diaceutics is one of a journey and one of business transformation. And we feel through '24, we have moved the needle on most of the KPIs that are really indicating the direction of travel for our business, that is toward high recurring revenue, significant ARR proportion, increased revenue earnings, also quality of revenue and really talk to that business transformation that we are seeing enabled by our data, enabled by our tech and more recently enabled by what we feel is a very appropriate use of AI in the business. Just going through some of the specifics. We are at the end of the 2024 saw the end of our 2-year investment cycle in the business. Just to remind you, at the back end of '22, we were -- had funds available to the tune of around GBP 20 million. We wanted to invest around GBP 8 million of that in the business really to enable scale and to secure future growth of the business. We believe we've executed well against that 2-year program in a disciplined way. Nick will talk to the specifics of that, but we feel we already see the return on investment and the exceptional performance in 2024 is to an extent, part of the delivery on that GBP 8 million that we've invested over the last 2 years. We continue to grow the platform. and scale the capabilities there. I talked a little bit about how we're leveraging AI. We, as other businesses in this space are in an era where we can benefit from a technology that is absolutely transformative in terms of what we can do with our data, what we can do with the products and ultimately, how we can impact the lives of patients. Remember, the purpose is a strong North Star for this business and our ability to bring new and novel product, which we have done through the last 12 months is really important and AI is right at the core of that. As we go from using natural language processing, which is where we were with AI 2 or 3 years ago, now to producing our own agentic AI models to really reach that next best action and do more with what we already have in the business is incredibly exciting. We continue to expand our business and our team, and we invest in that key talent, particularly in the U.S. Through the last 12 months, we have hired at a senior level in the U.S. We have brought a significant number of new VPs into the business, largely focused on commercial activities. We also opened our U.S. HQ, and we have continued to build our U.S. sales team, again, making some significant inroads into our most significant market. In terms of DXRX Signal, that is our lead product. I'll talk more about that and I have a use case to show you later for those not familiar with it. But suffice to say, it continues to go from strength to strength. And last year, we identified over 600,000 patients in our data that we ultimately provided back to our pharma customers. This is 600,000 patients that may not have had the opportunity to be treated with the optimal treatment for their disease. And we believe we're playing a key part in educating physicians around what the next best action is for those patients. We continue to grow with our customers. Last year, we secured three new multiyear enterprise-wide engagements with total ARR of GBP 4.3 million. Those enterprise deals symbolize our increased embeddedness with our customers. We won't have them with every customer. But as we get more scaled and ultimately closer to our customers, we believe we will own more of those in the coming year and beyond. PMx is a product that we had a soft launch of last year. It is effectively an end-to-end commercialization solution. An easy way for you to think about PMx is it's a solution that is ultimately reaching everything we've built in the business to date. That is our data, our technology, our engagement solutions, our marketing stack and the right amount of analytics and expertise in the terms in form of advisory and ultimately, client management, all come together to provide an end-to-end solution. Very exciting for us and a key part of our growth plans for the business is extracting more revenue per brand. And we've shown with our first PMx deal in '24, we've gone from an average of GBP 400,000 per year per brand to potentially over GBP 3 million, very exciting journey for the business. We're now working with 18 of the top 20 global pharma companies, and that is an excellent client list for us to have. The only two we're not working with our indigenous Chinese pharma and we don't have plans to do any inroads into that market at this time. But suffice to say, we are well established and growing in those top 18 pharma and are very excited about the opportunity there. And I'll touch on it again, just given the importance. We really have moved into an execution phase now for this business. We've scaled the business. We've built the data. We've built the expertise and the people. We've built the platform. We'll continue to evolve our exciting road map there, but the days of significant build and development and R&D in the business are behind us. We'll continue to innovate, as I say, but not to the same extent as we were and be very much customer-driven and customer-led going forward. The U.S. market will remain a key focus of ours. I'll talk a bit about the macro environment there in a few slides' time. But suffice to say, we are very excited about the journey we're on in the U.S. and the building of the team there is really already driving growth for us. With that, I'm going to pause, and I'm going to pass over to Nick to give you a run through some operational and financial highlights.

Thanks, Ryan, and thanks, everyone, for joining us. So a few slides here. I'll start off with this operational dashboard. This isn't all of our operational KPIs, obviously, but it is some of what we measure our success by and I think really talk to the traction we've had over the last few years. Ryan already talked to the seven enterprise-wide engagements. Just to remind everyone, we classify an engagement with a customer as enterprise when we're working with three or more of their assets with their drugs that are currently in market, and we must be well embedded with those assets. So either have worked with them for multiple consecutive years and/or have an element of annual recurring revenue with each of those brands as well. So we saw that increase up from four to seven in 2024 with an ARR of GBP 10.6 million, which is around about 2/3 of what our total ARR is. So you can see how important that enterprise -- those enterprise-wide customers are to our business. And those would also form, in addition, 18 of the top 20 pharma companies. So those enterprise-wide engagements, they'd be part of those 18 top pharma companies that we're working with and that Ryan spoke to earlier. The number of people we have in the business, really the lifeblood of the business is up from 184 as at the end of December '23 to 199. We will continue to invest in our people, that's invest in their skills and their training over the coming years, but also increase the headcount as well. The rate of increase will be lesser than over the last 2 years, that 2-year investment cycle, but it is important that we continue to add talent in our team, specifically in the U.S. market, which is around about 90% of our revenue, which is predominantly in U.S. dollars. A couple of other key metrics on here for us that we help measure our success, traction with our customers. The number of customers we work with, up 18% from 44 to 52 and the number of therapeutic brands we work with, up 23% from 69 in 2023 to 85 in 2024. They're really important metrics. We want to continue to build the number of brands we work with. So that's within existing customers as well as add new customers. And alongside that, we've seen the average revenue per brand increase 10% from GBP 380,000 in 2023 to GBP 420,000 in 2024. I'll talk to PMx. Ryan touched on this briefly, but I'll talk to this a bit more and how that is really driving the average revenue per brand for future years. Finally, I'll just touch on the bottom right box here, add a bit more color. Ryan talked about the investment in AI, investment in our technology. That investment in 2024 was GBP 3.6 million, up from GBP 2 million in 2023. And we continue to invest in the data that we use in the business. Data is key, lab data, claims data. There are other data sources in there as well. But that informs everything we do from Signal all the way through our offering to our scientific and engagement services. Everything we do for our customers, all the advice we give them has a foundation in real-world data. So they know that this isn't anecdotal, this is evidence-based advice we're giving them. I'll start talking about some of the key financial metrics now and our financial strength, which hopefully you'll see runs deep. So we continue to deliver exceptionally high margins. They're up to about 88% gross margin in 2024. Our 3-year revenue CAGR, compound annual growth rate, 32%. We continue to grow our ARR, our annual recurring revenue. That is key to our business. That's key to the visibility of earnings, also the quality of earnings. As Ryan said, we're on a journey there from what was predominantly a consulting business in 2021 to a business now which has roughly 55% of its revenues on a recurring basis. And finally, we have a strong balance sheet, GBP 12.7 million of cash as at the end of 2024, no debt, and we are fully funded to deliver on all of our organic growth plans for the foreseeable future. We continue to grow the business. We will continue to grow the business in 2025. And I think really importantly, we are focusing on growing the level of profitability. Just to remind you, those that are new to the story, we were profitable after tax in 2022. We took a 2-year investment -- we decided to invest a 2-year cycle where we would see a free cash outflow of GBP 8 million. That's put us in great stead in terms of our technology base going forward. Now we're scaling the business from 2025 onwards, and we'll shift back to profitability and ultimately, cash flow generation. Some of the key financial metrics. Obviously, more of these are captured in the RNS, but I just want to touch on some of the key ones. Most of these were pretrailed as part of the trading update in January of 2024. But just to reiterate, revenue up to GBP 32 million for 2024. That's up 39% on a constant currency basis, 36% '23 to '24 and a 32% 3-year CAGR. So all really strong metrics. Just to remind you, our business is predominantly focused in the U.S. That accounts for around about 92% of our revenue. Most of that revenue is contracted in U.S. dollars. That is pharma's main market for commercializing their drugs, and that is where we built and optimized our business for. Our annual recurring revenue is up 23% to GBP 16.8 million. And for the first time, we published an NRR or net revenue retention number, which I'm really pleased to see is 109%. That's something we'll continue to track and report to the market. That's really important, I feel, for investors to understand the quality of our earnings, but also our ability to generate more revenue from our existing clients, I think really showing how we're embedded and partnering with them. Our order book was GBP 24.9 million as at the end of 2024. And of that, GBP 17.7 million will be recognized in 2025. So that's contracted -- already contracted revenue for 2025. That gives us somewhere around about 44%, 45% visibility on our guided revenue number for this year, which is around about GBP 40 million, which is a great level of revenue coverage and slightly up on around about 40% coverage we started the 2024 year in. The overall order book retracted ever so slightly from the end of 2023. Most of that -- all of that retraction in the overall size of the order book related to contracted revenue that's in '26 and 2027. So it didn't impact our coverage for this year and our ability to hit guidance in the market. And we identified what the issue was there and have rectified that subsequently this year, we've seen that position correct and a significant increase in our order book for '26, '27 and '28 increase in the first part of this year. Our gross profit margin up to 88%, up from 83% in 2023. And again, really pleased with that performance. That is slightly above where we'd expect it to be. On an ongoing basis, we'd expect around 85%. So really pleased with the 3% overperformance there. Really, that's down to just mix of sales, a slightly higher focus on our data side of the business, which is slightly higher margin of the business. Not on this slide, but a key area I want to cover off is adjusted EBITDA. So we saw our adjusted EBITDA increased 50% to GBP 4.2 million, up from GBP 2.8 million in 2023. That's an EBITDA margin of 13% slightly up on the 12% in 2023 and resulted in a net loss after tax of GBP 1.7 million, which is about similar to the net loss after tax in 2023. As I mentioned earlier, that's the second of our 2-year investment phase. So from 2025 onwards, we're expecting that EBITDA margin to increase up into the high teens. That will result in a net profit after tax. That's the breakeven, that's the breakeven profitability we're looking for and our initial shift into cash flow generation again. I'll just quickly follow -- finish off on the finance by giving an outlook on to the beginning part of 2025, so our trading for the first 4 months of 2025. Really pleasing, we saw the revenue up 35% to the end of April 2025 at GBP 8.4 million. Our TCV was up 93% to GBP 18.7 million, and we saw our cash increase from GBP 12.7 million to GBP 13.7 million as at April 2024 -- sorry, 2025. And of course, a lot of that cash flow generation in the first quarter of this year is generated by that invoicing that is done in the back half of 2024. Our order book, I alluded to this earlier, our order book as at the end of April is around about GBP 35 million. So you can see a significant step-up on the GBP 24.9 million that we did have as at the end of December '24 and a correction of that slight retraction we saw in the 2024 year. I'm now going to hand over to Ryan to speak a little bit more about the business.

Thank you, Nick. And I'd like to take the opportunity just to refresh on the business case and ultimately, the value proposition that we present. We lead with this headline. And for those of you who follow us, you'll have heard me say this before, but I'll reiterate. Our purpose, our alignment to our customers is really focused around helping them find patients. We do that particularly well in challenging disease areas, complex disease areas or where the diagnostic journey for patients is quite convoluted and hard to track and manage for the physician. And to date, a lot of that has been in precision medicine, but the future is beyond precision medicine, and I'll talk to that also. In terms of our assets, we have four key assets in this business, three of which I'll walk you through now. One is the lab network. Just to remind everyone what this is, we have over 1,000 labs globally that we partner with. We're now up around 650 of those in the United States. And we go after a certain sector of the lab, which is a very small to medium-sized lab, but many of them that we partner with to enable a data feed of what is effectively proprietary data into Diaceutics that we use to power the business. We do a lot of work with that data in order to standardize it. And through the last 2 years, we've built automation to really make the analytics and the data pipeline coming out of those labs fully automated. Our business is very much focused on getting insights quickly. We talk a lot about speed to insight. And we are best-in-class as it pertains to receiving data from the lab in a very timely way and ultimately providing that through to our customers for use cases that I'll go into in a moment and the speed at which we do it will become clear as to why. The platform is how we deliver our offering. And effectively, that's an integration between Diaceutics and our customers at their marketing level, at their sales level, such as their CRM, et cetera. And we continue to build ever-increasing tech and capability there to really make it easy to switch Diaceutics on and hard to switch us off. The fourth asset that we don't talk to in this slide, but is implied is our people, and we continue to grow very successfully as it pertains to the talent we have in the business. It's hard to find people that can deliver within Diaceutics. We have a very specific role. We have a very specific purpose. And therefore, growing talent from within is a key part of what we try to do. We have significant links now with local university and another academia. So we have a very scalable solution in graduate training programs, et cetera, and that's been a successful thing for us now under our third year. We also are filling the funnel in terms of people at the top end with new VPs coming into the business, bringing significant experience and capability as well as continued investment across our people. The people drive the business, and it is a key differentiator for us. While we are automating and scaling and building a lot of tech, it is the people that front it and ultimately deliver that really is servicing pharma in a way that we're not just selling something into them, we're really serving them, and you'll see more on that as we talk to customer centricity in a minute. Next slide, please. Quick touch on a case study. This is our lead product called Signal. And in its simplest form, what Signal does is enable pharmaceutical companies, large and small, to understand where are the physicians that are treating patients eligible for their drug. And this chart at the bottom is an example of 18 months' worth of data with each bar representing the number of patients starting on what was a newly launched drug in lung cancer. And the bar represents the number of patients starting on that drug each week. We switched our data on 6 months into the first year of launch for this drug. And you can see the pale blue bar is the additional patients that we find that ultimately started on that treatment. And you can see week-on-week and ultimately into the following year, we were able to almost double, in some cases, more than double the number of patients who are starting on that drug, transforming the forecast, transforming the success of this. It's still a current plan today, and we have a significant ROI opportunity. Just to put some context around it, each patient is on average, worth around about $220,000 per patient per year for this customer. And that means that there's a significant ROI based on the cost to bring in our data. That's an ROI that we believe we can work on in terms of charging more and we have a solution in PMx that starts to close the gap in terms of that return on investment. Next slide. A quick recap on what is precision medicine. And ultimately, we are very fortunate in that we work in a part of the pharmaceutical sector that is growing. Last year, there were 48 precision medicine drugs brought to market and are FDA approved. That's more than we've ever seen and more than actually we were anticipating because some got accelerated approvals. So the market is growing. And that is, to a large extent, why we had a great year in 2024. There were more drugs coming to market. And that increase is a trend that is not new. We're seeing on average a market that's increasing 30% year-on-year. And we've long since talked about where our growth will come from will be from new brands, new drugs coming to market as well as driving more revenue per brand. And in 2024, we did both. We increased the number of drugs, and we increased the revenue per brand that we're working on. In terms of precision medicine, we see around 250 PMs currently in the market. As of the end of '24, we're working on 85 of those. So that gives you some sort of sense of where the headroom is. Beyond precision medicine, there's a significant opportunity, again, which we will quantify another time. But suffice to say that there is increased appetite for our services, given that we've shown so much success in precision medicine. Next slide, please. Why did we focus on precision medicine and why does it still fuel and drive a lot of our growth? One of the things you need to understand is that by nature of precision medicine drug is very reliant on the diagnostic pathway, the diagnostic journey of these patients, i.e., the tests that are performed to diagnose the disease, particularly in the context of molecular-derived medicine, molecular diagnostics, et cetera. Us having such rich access to lab and genomic data enables us to be very differentiated in precision medicine because we really understand fundamentally how these patients are diagnosed. So that's part of the reason why we're so focused there. The next piece is that there's complexity. Precision medicine brings complexity to the market. And we're seeing new drugs coming to market all the time. I just talked about that in the previous slides, new tests, new biomarkers required. And there's a lot to keep up with. It's not simple and it's not easy. It's a great story for patients and great for patients who maybe previously had a disease that wasn't treatable or certainly wasn't treatable in a targeted way. We're now seeing science really deliver in terms of availability of drugs, but that presents challenges for commercialization and presents challenges for just keeping up to speed with the latest trends. The other thing, of course, is that the precision medicine is typically targeting smaller patient cohorts. And we are at a point where we might be trying to identify patients that a physician might only see one patient like this per year or maybe it's every 5 years if it's a particularly rare disease. And that changes the dynamics of how we think about prescribing and knowledge and understanding of disease. And if you think about our data back to the timely nature of our data, a physician might be faced with a treatment decision they need to make today. If we know in real time that they have a patient with the disease, that enables our pharmaceutical client to engage and ultimately try to educate and bring that patient on to drug. That is the use case where we're strongest, and that's a key part of what we do with Signal and laterally with our Physician Engage and PMx solution. Next slide, please. Speaking of PMx, I'm going to pass over to Nick, who's going to walk you through our PMx solution with a particular slant on the financial construct and how we are ultimately driving more value for Diaceutics by bringing together everything that we've built to be it into one solution.

Thanks, Ryan. So I think based on the Signal case study you saw earlier, the uniqueness of the data and our ability to target patients, find those hard-to-find patients. I think coupled with the complex requirements that Ryan just went through regarding precision medicines, we saw that Signal is a great offering for our customers. It really helps them target their sales teams in finding patients, engaging with physicians and converting patients on to drug. But there was a gap. There was a gap in that our customers needed more support and we could offer that underpinned by Signal and our other offerings to really drive better engagement with physicians and better levels of prescription and patients moving on to drug. And that's what PMx is. It basically takes what we have, Signal at the core of it, our data and then adds on Physician Engage, it adds on Lab Engage. It adds on our consulting expertise, our go-to-market expertise, and it allows us to really educate the market and maximize the return on investment for our customers. What that means for our customers is that they can go to market quicker. They can ramp up to maximum sales potential in a shorter amount of time and increase their ROI and essentially the value of their company. PMx isn't just a pam for us. It is something that we have developed and we have launched with the first commercial arrangement signed in August 2024, which I'll talk to in just one moment. Essentially, what PMx does by bundling all of the products together that we have in a bespoke suite of offerings, which gives the customer a tailored output depending on the specifics of their drug launch. It allows us to increase the revenue for that one brand from around about GBP 400,000 that we're currently at to over GBP 3 million per brand per year. PMx won't be applicable for all drugs and all customers we're working with, but we think it is a significant advantage for many biotechs currently looking to commercialize their own assets if and when -- if they're unable to out-license those to big pharma, which has typically been the model for them. As I mentioned, we signed our first PMx agreement in August of 2024, and there's an RNS in the market about that. That was an 18-month offering to launch a precision medicine oncology drug in the U.S. And that went very successfully. We realized GBP 1.5 million of that revenue up to the point where the partner we are working with actually out-licensed that to Partner Therapeutics, and we successfully transitioned from them to the new license owner, Partner Therapeutics and have continued to work with them from March of this year onwards. That deal, so we signed a new deal, which superseded the old one and dovetailed in. That is worth GBP 11.5 million up until September 2028. And it is a significant win for us, both in terms of its value. As I said, that increased the average revenue for this brand per year to just over GBP 3 million and increases the visibility we have now that contract goes out into 2028 and is all recurring revenue and will contribute towards ARR. The one significant change we saw from the original PMx deal to the new one that we agreed with Partner Therapeutics is that we had a success fee-based element in the original deal. That allowed us to really work with our customer, partner with them and where they were successful in commercializing that drug in the market, we would also financially benefit. We were happy to negotiate with Partner Therapeutics, whereby they wanted a straight service fee agreement. For us, that removes some of the potential upside. However, it did also remove some of the potential downside of the commercial traction of that drug and again, contributes more towards the annual recurring revenue for this business going forward. So again, really happy to partner with Partner Therapeutics going forward and looking forward to successfully launching their drug in the U.S. I'll finish off by just talking about what constitutes a PMx agreement. This is a very busy slide. I'm not going to talk us through every single point. The colored boxes along the top there, running from left to right, they are the key stages we think about when we're working with a partner and talking to them about launching and commercializing a drug in the U.S. market. And under each of those colored boxes are the services, the solutions that we offer to them. When we're contracting with a partner, when we're bespoking the PMx offering, we sit down with them, understand their requirements, what we know of the market, what we've learned dealing with this for over 20 years now. And we tailor a precision medicine commercialization solution, a PMx solution for their drug. And that requires us picking off some of these key services, bolting them together over multiple years. So it's really a combination of all of our learnings and all of our products developed over the last 20 years or so. I'm really pleased that we continue to launches, as Ryan said, a soft launch last year. We continue to launch it this year. We are running a webinar this week on the 15th of May on the Fierce Pharma website. That will be hosted by us, and we'll also have representatives from L.E.K., a leading consulting firm in the U.S. and globally and one of our customer partners, and Merus, who will be talking about our PMx offering, the challenges of commercializing biotech assets in the market and how we can help them overcome that. So really pleased that that's happening in the next couple of days. You can see that on the Fierce Pharma website and via LinkedIn, if you're interested in watching that. I'm going to hand over to Ryan now to just talk about our customer success and see the rest of the meeting.

Thank you, Nick. And just conscious of time, I want to leave enough time for questions. I'll maybe accelerate through the next few slides. Our journey here is really about getting much closer to customers, evolving from being a vendor to more toward partner. You can see here some of the success we have there. Overall, we have a 3.7 out of 4 score in terms of customer satisfaction. It's a key part of our business. And you can read for yourself some of the sentiment there on the slides. Suffice to say, something we're very proud of. And again, it's a key differentiator for us. These are very sophisticated customers. They know what they want. They know the level of service they expect. And we try as best we can to deliver that. And for the most part, we're being successful there. Next slide. I'll talk more about the recruitment just in terms of the specific folks that we brought into the business. We're really transforming the leadership in this business and notable hires such as Sandra Blake, who we brought in as our Chief People Officer, really transformed the way we think about our people deal and ultimately, the direction of travel, other key hires in marketing with Amie McNiece joining the team, really driving that execution phase for our business, along with a host of other commercial focused VPs that are leading significant parts of the business. A majority of these are U.S.-based, and that's a bellwether for the direction of travel for our business. Next slide. I'm going to sum up and just recap on the business, where we are now as we continue the journey off the back of a strong '24. Nick talked a bit about the 2025 outlook. And just to recap, we have a very strong competitive advantage. We have three unique assets in the network of labs, the data and the platform and of course, our people that we've talked about. We are proving out that compelling value proposition. We're now in our fourth year of consistent growth, and that is not an overnight success. That's the work and investment that we've built in this business. But I think we're saying -- showing what we said we would do. In terms of financial strength, we have a high-margin business. We are continuing to drive on that recurring revenue, improve the quality of our revenue. We have blue-chip customers, a 3-year revenue CAGR of 32% and we have good funding as we move into a of profitability for the business. We're well set, and that's a key part of the journey so far. I want to pause for a moment and just address what's not on the slide, and that is a dynamic macro environment, particularly relevant as such a high proportion of our business is in the U.S., and it would be remiss for me at least not to acknowledge that our customers, pharma, in particular, are ultimately observing a market that is potentially evolving. And we've seen some changes, for instance, at the FDA, which might have an impact on the ability to approve drugs. It may speed it up. It may slow down, really hard to know, but we feel well-placed to see what opportunities could come out of that without needing to pivot without needing to add to our positioning. We feel there's a well placed for our model there. We see potential pressure coming under our customers in terms of drug pricing. And very recently and even in the last 24 hours, there's been some evolution there. I'm personally talking directly to a number of our CEO customers. I'm very fortunate that they've given me some audience there, and I'm building a relationship that is into a few years now in maturity, freedom having a relatively candid conversation and getting a good inside track on where they're concerned, where they see opportunity, where they're going to double down. A key message coming out of that for me is big focus on drugs on market, already on market, approved and the freedom to operate there. That's a great story for us given that the majority of our revenue and a big portion, for instance, Signal revenues is for already approved drugs. So there's a level of immunity there and certainly an area for us to really focus in. As for other things like FX headwinds with changing dollar given so much of our revenue in dollar, we're hedged there to an extent. But if that goes -- tracks up above kind of 133, 134 and beyond. There may be some impact to our top line in terms of just that FX conversion to sterling come year-end. To date, we're tracking as expected, and Nick and I remain comfortable with the guidance in the market, both in terms of revenue and that to profitability. We can obviously manage elements of the business as it pertains to cost, and we're doing that. Profitability is -- will be delivered this year, and we're very consistent and comfortable with that. And as for -- what else we're doing, it's effectively just monitoring very closely, getting really close to customers, making sure that we know what they need at this time, and we feel we're well positioned to respond to that as we go and keep watching. Right now, the business is as expected. We put out numbers up until the end of April in the RNS. The released precisely to give you some insight to a very live view of the business up until a few weeks ago. And as of now, we're still tracking to the plan. With that, I'm going to hand back to Simon, and he can facilitate some questions, please.

Sure. We have lots of interesting questions here. Paul L asks, what's the ongoing expense to pay labs and data sources? And how will this cost grow and develop over time?

Yes. So happy to answer that. Thanks for the question. So currently, our data spend is around about GBP 4.2 million per year. We don't deliberately split out exactly how much of that is relation to labs and other data sources. Again, that would be confidential information that would be quite proprietary to the business, both from a competitor point of view as well as otherwise. But we don't see that significantly changing. We feel that, that is -- again, we've built a lab network and a good level of coverage there to see through our needs. So we do expect to grow the GBP 4.2 million up to around about GBP 5 million or so in future years, but not significantly higher than that. There is an element of lab network maintenance costs within the business. So that is teams that are employed to help manage the platform and the lab network relationship. But again, they're just part of what we consider to be the normal operations of the business. And we don't see that significantly changing over the coming years. And that is predominantly because we have built a level of lab coverage in the U.S., but also more globally, which is stable and basically feeds all of our data and requirements for, let's say, the foreseeable future.

You secured three new enterprise-wide engagements in the year. How large is the remaining addressable market for similar large-scale contracts among your existing and potential customers? And that's from Christopher T.

I can answer that. There are -- there's a couple of variables there that you need to consider. Obviously, our ability to sign enterprises based on the number of drugs that our customers have that are applicable to our model. Historically, that was precision medicine drugs. Now it's more kind of diagnostically enabled drugs. So a long answer to a quick question, which is we see immediately four more that are ripe for opportunity where we already have some traction and already selling into some of their brands and ready to tip over into enterprise through new launches they're bringing to market or indeed some acquisition they're doing or as we expand out our definition, we can bring more drugs in. So that's what we would expect to see through this year, and we're tracking well against that.

Ryan, a question for yourself. Any plans to move the listing to the U.S. or have a dual listing?

I'm going to not answer that one just at this moment in time. We will always look at what is the best opportunity for Diaceutics and how we ultimately bring value to shareholders and deliver on the business promise. Right now, we're happy enough where we are, and we're always looking at how we continue to build operations in the U.S., which is key for us and the best way to do that.

Given the significant percentage of global pharma companies that you have as customers right now, how do you plan to expand revenue growth with that customer base?

Again, it's a simple model. So we -- our growth will come from two axis. One is more brands within those existing customers and their pipelines are rich. And that's their indigenous pipeline are indeed as they acquire, bring new license and new drugs, or working with those biotechs that are bringing those drugs to market and extracting more revenue per brand, and that is through upselling, bringing new products to market and ultimately our pricing as we go. That has been the recipe to do it. It's delivered strong growth. We'll continue to do that. Key metrics to observe there is the end of brands per year and the revenue per brand. And with PMx, we've shown how we might leapfrog along the way there.

A lot of talk at the minute about data breaches and cybersecurity. How confident are you in the security of your enormous data lake?

Yes. Great question. And look, it's a risk for every business, but particularly a risk for a business that is so -- has data so embedded in its core operations. We have, we believe, taken all the precautions that are reasonably available to us. I'm somewhat comfortable with the fact that we typically use best-in-class solutions. We don't do an awful lot off the shelf. We built a tech stack primarily based on AWS and are using tried and tested models and ultimately solutions that are industry standard. It's the way we put them together, we think, is novel. We have twice yearly third-party penetration testing, et cetera, and we also have of their third-party capability in terms of assessing our stack, assessing the privacy, everything we're doing there, we're trying to have validated. So no one is immune. And unfortunately, from a data breach perspective and ultimately some sort of data issue, it's probably it's a when, not an if. And I think that's the same for every business. Our job is to minimize that and to try to be very transparent and open. We are somewhat protected. And again, I put that in the caveat in that everything we have is anonymized at a patient level. We strip out the patient identifiers at source, so nothing on-prem, i.e., in the cloud in the Diaceutics cloud has basically identified. So even if there was a breach, and again, we do everything to safeguard against that. We're some level of protection there given that it's all anonymized. And at that stage, it's all got a digital token. And while not completely clear in that regard, it means that we're not having to deal with real data. And just by extension, this is such a key area. We don't stand still in this area. We continue to invest in best-in-class technology to take preventative action to make sure that this doesn't happen.

Ross B asks, do you foresee any opportunities from the expected simplification of GDPR?

TBD, I'm not ready to comment there yet, maybe. But Europe, we talked about Europe in the past, and thank you, Ross, for bringing it to my attention. We -- while we continue to grow and offer our services in Europe, it is significantly far behind in our priorities from the U.S. And therefore, while that market is evolving and the opportunities evolve, we still remain very focused on the U.S. and will do for at least the next 12 months.

A couple of questions have come in around potential interest from private equity or other parties that might be interested in acquiring Diaceutics. What is the major shareholders and view in terms of the price at these levels? And I think the general assumption in the questions that have been asked here is that you'd resist any approaches anywhere close to the current share price. Any comment on that one?

What I'd say is I think that there is a perception of good value to be had with U.K. publicly traded business of the minute. I think Diaceutics is in that bracket. Ultimately, our mantra is to do what is the right thing for the business in terms of the plan that we have, the strategy that we have, the purpose that we have and ultimately as well, make sure that we are doing the right thing for our shareholders. I don't think there's a business in the U.K. that's probably traded at the minute that isn't getting some inbound from private equity. And therefore, I think that it's clear that, that's part of the conversation going forward. Right now, I reaffirm that we have a plan. We're executing against that plan. And that's where I want to leave that conversation.

One specific question here. Given the likely explosion in neurological panel testing and diagnostics for neurology and the accompanying trialing of new therapeutics, how are you positioning yourself for the expected tsunami of tests and therapeutics in neurology, in particular, Alzheimer's. Now I don't know if that's something you want to go into now, but...

I can talk to release, Simon. That's a great question. And I think it talks to -- we are at near and I were -- we've demonstrated our model and we can show value well beyond what was traditionally perceived as precision medicine. And I think you heard me use the term diagnostically informed treatment. So there's an explosion of tests and ways to ultimately better understand neurological disorders such as Alzheimer's. The great benefit for us, and I think I talked to this if I didn't today, I have in the past, when we have built our lab network, we, from day 1, have built a data pipeline, which receives all the data from the lab -- and that means future tests, et cetera, as well. So we have a lot of that data already to the extent that there's testing in that area. But as labs introduce new tests, they'll automatically come online into our feed. And that's exciting and somewhat future-proofs us and sets us for scale. So while there may be some need to strategically adjust the network to really target it, we feel that we're already getting a good -- some insight there, and we're already having conversations and in fact, already selling some data into that space. So it's certainly a key area of expansion in the future.

Ryan, how differentiated is your DXRX platform vis-a-vis competitors? And what further enhancements do you plan in the coming year?

The platform and the data and the AI and ultimately, all the products are very much interwoven in terms of that differentiation and value proposition. Where we are seeing great success and great growth opportunity is in building additional product on top of the data. We have a key differentiator in terms of the latency of that data, data comes to us sometimes within 6 hours of when a test result was sent out to the physician. That's incredibly quick compared to any other type of data or any other type of interaction potential with the physician. Couple that then with AI, couple that with a marketing stack, which allows us to now directly engage with the physician, and that's really getting our clients excited that we can bring an end-to-end solution to them. It's not just the data that's enabling them. We can actually now deliver that a message straight to the physician at exactly the right time and differentiate, couple that with AI agentic models where we can maybe propose next best action or automate a lot of that interaction to that. It may be that we're actually identifying early indicators of disease well before that confirmatory diagnosis and that allows us to track patients well ahead of where we were before. And that's exciting from a pharma perspective and not just on the commercial side, but also on the medical side, that's where we're going. And we're adding more data to our proprietary lab data set. We've built a multimodal data set, which levers in EHR data claims. We're buying these off the shelf and putting it alongside our proprietary lab data, and that allows us to get a much more longitudinal and tangible view of the patient, again, enabling a lot of that product evolution, which really is an exciting road map for us.

Nick, maybe one for you. You secured three new enterprise-wide engagements this year or in the last year. How large is the remaining addressable market for similar large-scale contracts among your existing and potential customers?

Yes. So I think seven enterprise-wide engagements is a good start, and it's -- and we made good progress in 2024. Ultimately, I would like to see all of the 18 of the top 20 global pharma we work with move into that same bracket. So there is some overlap. So the seven are in the 18 of the top 20, but there's obviously an additional 11 there to go after. That will mean expanding from one or two therapeutic brands each of these customers to 1/3 or beyond. That is certainly within our grasp, and we're making good progress on that by adding more brands per year.

Great. Thank you both very much. That concludes the Q&A session.

That's great. Ryan, Nick, Simon, thank you for addressing those questions from investors today. And of course, the company can review all questions submitted today, and we will publish those responses on the Investor Meet Company platform. But before redirecting investors to provide you with their feedback, which is particularly important to the company. Ryan, could I please ask you for a few closing comments?

Yes. I think the -- again, thank you all for joining us today. 2024 was a breakout year for us. The numbers speak for themselves, and we're very happy with the direction of travel in the business. '25 has got off to a good start. Again, you can see the numbers that we're presenting. And we feel well positioned to continue the growth story of this business. and bring us back to the purpose and ultimately, the difference we're making to patient lives is now increasingly tangible. 600,000 patients through 2024 were in some way touched by Diaceutics and hopefully in a very positive and informed way. That fuels this business and hopefully fuels the future success of which we feel there is a lot of in the future. So thank you for joining us and hopefully update you again in the near future.

Fantastic, Ryan, Nick, Simon. Thank you very much indeed for updating investors today. Could I please ask investors not to close this session as you will now be automatically redirected to provide your feedback in order that the Board can better understand your views and expectations. This will only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team of Diaceutics plc, we would like to thank you for attending today's presentation, and good afternoon to you all.