ImExHS Limited (IME) Earnings Call Transcript & Summary

Good morning, and thank you for joining us this morning. With me on the call is Reena Minhas, our CFO. For the 6 months to 30 June 2025, IMEXHS delivered revenue of $13.7 million (sic) [ $13.8 million ], up 4% year-on-year and, on a constant currency basis and excluding prior period one-off, the growth rate was 7%. Underlying EBITDA was $0.3 million, flat versus the prior comparable period. ARR reached $32.8 million, up 11% year-on-year. We closed the half with $2.5 million cash and $1.3 million of debt, supported by a $2.6 million capital raise completed in April, May. Operationally, AQUILA+ moved from plan to proof, with new wins in Colombia and Mexico contributing to new ARR, while radiology services improved margins through repricing and automation. I will start with what the business is and the scale we now operate at. IMEXHS is a medical imaging software and services company focused on making high-quality radiology more efficient and accessible. We serve hospitals, clinics and diagnostic centers with a cloud-native RIS-PACS AI suite. Our product vision is to embed intelligent workflow, analytics and AI throughout the imaging chain to cut cost and turnaround times, always serving our customers with the best post-sale support, the highest security standards and fastest implementation times of the market we operate. We operate 2 businesses: medical imaging software company providing RIS-PACS, Universal Viewer and AI; and radiology services business. The software business is subscription-based and cloud-led and the services use our platform to deliver on-premises and remote reporting. On Slide 3, we have some figures. On 30 June, we did complete more than 549 installed sites, conduct 8.9 million of new imaging studies per year and serve 3,400 monthly specialist users. Our patient portal has 6.3 million users, and we work with 25 partners across 15 countries. Finally, the Net Promoter Score is 58. These metrics reflect a broad and active installed base that underpins ARR growth and cross-sell potential. Slide 5 chart tracks footprint and utilization since 2020. We now operate more than 549 live sites across 18 countries, processing more than 2.1 million studies per quarter, consistent with the 8.4 million to 8.9 million annual run rate on this chart. This picture is clear. footprint and number of studies grew every year, and the user base expanded materially, driving software adoption and ecosystem leverage. On Slide 5, we operate in 18 countries with certifications across multiple geographies that support high-quality operations and production standards, also confirm the scalability of our product. This reach fits our pipeline and derisks concentration. Turning to Slide 6, financial highlights. Revenue of $13.7 million, up 4% year-on-year, and 7% on a constant currency basis and excluding one-offs; underlying EBITDA of $0.3 million and ARR of $32.8 million, up 11% year-on-year. We finished the half with $2.5 million cash and $1.3 million debt at 30 June 2025, following a $2.6 million raise across placement, directors placement and SPP. I will break that down by business unit. Our focus is to accelerate growth of our software business due to its scalable and low CapEx consumption nature. In consequence, the revenue split shows software at $4.7 million, up 11% year-on-year, excluding one-off and radiology at $9 million, up 1%. Software ARR, up 20% year-on-year and radiology ARR $20.9 million, up 6% versus the previous year. Corporate costs down from $1.4 million on the previous year to $1.3 million on the current year. Turning to Slide 8. The total ARR at 30 June 2025 is $32.8 million, 11% up versus 31 December 2024. From this, software corresponds to $11.9 million, 20% up versus 31 December 2024; and to radiology, $20.9 million, 4% up versus 31 December 2024. We present ARR on a constant currency basis, and we adjust estimates as contracts move to actual volumes. Our mission is impact at scale, deliver diagnosis faster and more accurately. We focus on improving radiology efficiency and productivity while lowering costs for users. On Slide 10, our software strategy is to consolidate leadership; in Lat Am, scale SaaS and drive automation and cost efficiency. These pillars are tied to measurable ARR growth and margin expansion. Every company effort is focused on accelerate growth while protecting profitability. That is why our resources are dedicated to specific markets like Mexico, Ecuador, Peru, Chile and Colombia, where we already have footprint and good performing partners and salespeople. We are also treating with special attention the Central American countries where we are experiencing good traction. Turning to Slide 12, software business highlights. AQUILA+ moved from plant to proof. And we added new enterprise win at Clinica del Occidente and Hospital Moncaleano in Colombia with a combined $183,000 new ARR. We also won Nurológico México,, adding to $106,000 new ARR, and diagnostic extension brings that customer to $490,000 ARR. Partner Program now includes 25 partners in 15 countries. And this channel contributed 33% of software new ARR in 1H FY '25 versus 11% in 1H FY '24. The product road map has been delivered on time by our team, adding to our products several modern functionalities like AI-assisted reporting, AI-supported academic searches, income counter, integration with AI tools from DeepC, Entelai and Limmer, enhanced security protocols and importantly, improved architecture for more cost-effective cloud storage availability. With these videos, we are showing how some of these functionalities work with a seamless and intuitive integration into the radiology workflow like this AI agent for assisting reporting and AI visualization tools fully embedded into our view. On Slide 16, we are constantly working on improving margins. In 1H, we reduced the cloud storage costs, improved delivery costs, automated processes of the administration and finance teams and renegotiated prices of some existing contracts. We are deploying automation and AI-driven workflow optimization to lower delivery costs while protecting quality. This complements disciplined pricing and partner-led deployment to preserve unit economics as ARR scales. We are moving to a segmented value-based pricing architecture, where we have defined 4 customer segments and built tailored value propositions for each. On design, the model is customer-centric and anchored in the jobs to be done for each segment. The expected financial impact is clear, an uplift in contract values of 30% to 60%. Finally, this pricing enables structure upsells. AQUILA+ becomes an attached layer for existing customers and the framework supports secondary revenue, for example, advanced modules, analytic PACS and premium support. The net result, a pricing system that matches value to price, improves unit economics and supports sustainable ARR growth without compromising competitiveness. Our software plan for 2025 to 2026 has 2 tracks. First, commercial execution, rolling out the new segmented and value-based pricing model, and we will support this with a partner program boost and tighter pipeline to close discipline. The channel already gives us reach with 25 partners across 15 countries, and it delivered 33% of software new ARR in 1H FY '25. We will double down on enablement, deal governance and implementation speed. Second, expansion. The priority for the rest of 2025 is the focus markets. And in 2026, entry plans may consider Argentina, while maintaining enhanced partner support to scale efficiently without adding fixed costs. Now let's review our services business. RIMAB is our radiology services arm. The model combines outsourcing of on-premise services with teleradiology delivered on our own software platform. allowing hospitals and clinics to flex capacity without adding fixed cost. Financially, in 1H FY '25, RIMAB delivered $9.1 million in revenue, underlying EBITDA of $281,000 and closed the half with ARR of $20.9 million. This provides a solid recurring base while we reshape the portfolio for profitability. Our operating rhythm is technology first. AI is already at work in call center workloads. We are piloting models to optimize X-ray and mammography worklists. And we have rolled out real-time operational dashboards. The operating context in Colombia remains challenging. We are facing regulatory uncertainty and delayed payments. So we are running RIMAB with profitability first, repricing or exiting low-margin contracts, applying stricter credit controls and protecting working capital. These actions lifted 1H margins as we renegotiated prices for 100% of maturing contracts, reinforcing structural savings. Technically, RIMAB benefits from tight software services integration, diagnostics precision, scalable delivery and ongoing AI adoption. This integration is our edge in quality and cost. RIMAB run on 4 execution pillars. Contract management. We are renegotiating or exiting low-margin contracts and enforcing price discipline. In fact, in Q2, we repriced 100% of maturing contracts. Cost control. We are using AI in the call center and triage to cut manual handling and reduce repeat touch points; pilot models in X-ray and mammography optimize worklist and shorten turnaround. Capital protection, working capital is managed tightly, stronger credit terms, escalation paths and when necessary service suspension for persistent late payers. Collections improved in Q2 and actions continue in H2 to normalize receipts. Fourth, client segmentation. We profile clients by risk and contributions to focus capacity on the highest quality cohort and to avoid exposure that does not meet our margin policy. These steps operate together, and the goal is sustainably improving margins and liquidity while maintaining diagnostic quality and coverage. On Slide 21, strategic outlook. We enter H2 with momentum. Priorities are to accelerate AQUILA+ sales and upsell, maintain services margin discipline and keep executing cost out and automation. Focus remains on quality growth, profitable contracts, quicker implementations and capital-efficient distribution. Turning to Slide 22, FY '25 guidance. For FY '25, we expect revenue to be in a range of $27.5 million to $28.2 million and underlying EBITDA to be in the range of $1.3 million to $1.6 million. Thank you to our loyal and supportive investors, also to customers, partners, staff and Board members. We are now happy to take questions. Reena, do we have any questions?

[Operator Instructions] There's no questions, German.

Having no questions, we can close the session for today. Thanks again, and have a good day.