Oneview Healthcare PLC (ONE.AX) Earnings Call Transcript & Summary

Thank you for standing by, and welcome to the Oneview Healthcare Half Year Financial Results. [Operator Instructions] I would now like to hand the conference over to Mr. James Fitter, CEO. Please go ahead.

Thanks, Ashley. And good morning to everyone in Australia, good afternoon to those here in the United States, and good evening to those joining in Dublin, including Darragh Lyons, our CFO; and Toni Pettit, our Company Secretary. As always, I'd just like to start with a reminder around the legal disclaimer and forward-looking statements and just a clarification that all the amounts we're going to refer to are in euros. And a reminder, we are a December year-end, so we are reporting the first half results for the 6 months ended June 2025. Any reference to the full year refers to the prior year of 2024. Just a reminder of our mission is to improve connected care experiences every day, and our vision is really focused around redefining the digital environment of care to make it accessible, seamless and reliable for all. And as always, that mission continues to resonate with all of our employees, and I think with all of our shareholders. Our footprint includes 3 of the hospitals that have been recognized in the top 20 in the United States. So joining me today, as I mentioned, is Darragh, who's now 11 months with the company as Chief Financial Officer. So some of you will have met him on the full year results call earlier in the year. But welcome to Darragh, who'll be talking through the financial numbers in some detail. So unsurprisingly, we're going to talk through the financial results. We're going to talk about the innovative work we're doing on the product front, particularly around our AI strategy. Of course, we'll be providing commercial and sales updates, deployment updates, and, of course, the outlook for the balance of the year and hopefully leave plenty of time for questions. So let me start with the key highlights, and I don't want to steal Darragh's thunder, so I'm just going to point to a couple of these. The headline that I think will attract most attention is that total revenue is up 36% for the year, which is a very pleasing result given the revenue profile we've had in recent years. So delighted with that outcome. We've added a further 2 net new customer logos in the half year. And you'll note in this presentation we're referring to live endpoints, which is a reflection of the fact that our product portfolio has diversified to include not just bedside technology, but door signs and whiteboards. So a reference to an endpoint is a reference to any device in the patient room that is revenue generating, and Darragh will talk through a little bit more around that. Gross margin was down slightly in the first half as a function of the fact that we were delivering a substantial amount of hardware in line with the revenue growth. And on the following slide you're going to see the visualization of the revenue over the last 5 years. What's most pleasing about this revenue growth is just the broad base of opportunities that we're working on in the first half of the year. Some of these have been customers for many years that are continuing to expand their footprint, which would include the likes of NYU Langone, BJC Healthcare, University of Miami, but also a number of new logos that are now in flight in deployment mode. And we're going to talk a bit about speed to revenue and pace of deployment. But this sets us up very nicely for the second half and is a great foundation for the first year with some very significant customers that are going to be continuing to be expanding in the second half of the year. In terms of investment highlights, efficiency is a key theme. We've really been working, as I mentioned, towards faster and more efficient deployments. We'll talk about how we're doing that shortly, but obviously, we're embedding AI-powered solutions across every business function in the business. We'll talk more about that in a second. You will have noted from the 4C that we have restructured our Australian and some other functional teams to better align our operations with current business opportunities. We're obviously cognizant of the challenges that the Australian market is facing, particularly when it comes to private hospitals. That's having an impact on both customer affordability for digital health solutions and, of course, on pricing as well. On the execution front, as I mentioned, we've added 2 new customer logos in the first half of the year. The sales pipeline is expanding really nicely. I'm going to talk through that in some detail. And as we mentioned in the 4C, we just signed a very important 3-year extension with a very significant customer, which is going to deliver 20% year-on-year revenue growth from that customer alone, which is great to see that we have some pricing power. In terms of innovation, we are working on an entire rebuild of our front end, which is probably the most significant rebuild we've done for some time. We've been running the same front-end user experience for the last dozen years. So it's a big change, something that's really been driven by customer feedback, and we're super excited about how that's panning out. And we're going to talk to you a bit about how we're embedding AI engagement products into that work. And then we're also going to talk about the bedrock of our AI strategy, which, of course, is our ISO 42001 certification. For those of you who are not familiar, ISO 42001 is the international standard that specifies requirements for establishing, implementing, maintaining and, of course, continually improving an artificial intelligence management system within organizations. And we were the first, and I believe to this date, the only ASX company -- listed company to have achieved that certification, and we are certainly the only one of our U.S. competitors to achieve that, which we're extremely proud of. So with that, let me pass across to Darragh, who will talk through the numbers in a bit more detail, and I'll come back and talk a bit more about the product innovation. Over to you, Darragh.

Great. Thanks, James, and good morning, and good afternoon to you all on the line. So we had a very good first half of the year in terms of top line growth, as James has mentioned, with 36% growth in the first half of the year. That growth was driven by a 7% increase in our recurring software service revenue and then nonrecurring or our deployment revenue more than doubled to EUR 2.5 million in the first half of the year. That higher proportion of nonrecurring revenue has weighed on gross margin relative to H1 2024, and that is responsible for the 12-point decline from the 73% gross margin posted in H1 2024. Our H1 2025 gross margins were also impacted by a couple of deployments that we did at the start of the year involving lower-margin hardware. But we do see that as a temporary hardware mix shift and not indicative of future trends on gross margin. Our cash OpEx increased by 17% to EUR 8.3 million in the first half of 2025 compared to 2024, and there's 3 main reasons behind that. We had the full year impact of the investment in resources, which is to support the greater deployment activity that we were expecting in the U.S. and which we're now seeing and would hopefully accelerate over the coming months. Secondly, we also invested in accelerating the delivery of that new front-end user experience that James has mentioned and he'll bring you through in a few moments' time. And then we also incurred EUR 168,000 in restructuring charges associated with the restructuring that we affected in June that James has mentioned. That restructuring, as James has said, mainly impacted the Australian business, where, as you all know, the private health care market has been suffering there for several years. In addition to that, we also realigned some of our other functional areas to gain efficiencies from them. So in aggregate, the restructuring resulted in a 10% reduction in our global headcount. The higher cash OpEx number offsets the gains that we made from our strong revenue performance in the year, and that resulted in an overall EBITDA loss of EUR 4.5 million for the first half of 2025. Moving on then to the balance sheet and capital position. So we had EUR 8.2 million of cash at 30th of June '25. So our H1 2025 operating cash burn of EUR 4.8 million is aligned with the operating EBITDA loss for the year. We do expect cash burn to be lower in the second half of the year. We will see the benefit of that restructuring, which was effective in June, so that will -- that has already kicked in from July post period end. And we do estimate that, that will deliver at least EUR 1.1 million in annual cost savings. We also have some other management efficiency initiatives that James will speak to later in the presentation, and we hope we will see some additional benefit to them during the second half of the year. And then finally, historically, we've always had stronger cash receipts during the second half of the year, and we expect that to be the case during the second half of this year also. So the final thing then I just want to call out is the fact that we have very strong levels of proprietary hardware and that hardware is located in the U.S. And we believe that, that's a very important investment for us to have made given the current trade and tariff volatility that we're seeing in the U.S. in particular. We have EUR 2.6 million of inventory on the balance sheet at 30 June. And in addition, there's another EUR 600,000 that's included within other assets at 30 June in relation to in-transit proprietary hardware that we've since reclassified into inventory. And we do see utilization of that inventory in deployments over the next 6 months has also been beneficial to our overall cash burn in that period. So passing back to James, who's going to bring you through how we're reimagining the patient experience with AI.

Thanks, Darragh. Much appreciated. So for those following along now on Slide 14. And there's obviously -- I think in health care, as I think we all know, everything really begins with security and trust. We're dealing with very large enterprise health care systems where there is an obsession around security. And to that end, the foundation of becoming ISO 42001 certified for us was absolutely the right way to begin our journey to AI. And our journey really began a couple of years ago where 3 of our executive leadership signed up for executive education programs, including myself, Darragh, and another of our senior leaders, to make sure that we are really understanding at the highest level of the company what the expectations are. Clearly, this is an incredibly fascinating time for any software company. And it's that foundation which forms the basis of what we're doing in terms of building customer-facing products and also thinking about how we work internally and how we deliver value for shareholders around internal efficiencies. So that journey was absolutely critical. I think it's a time when a lot of companies are making statements and marketing AI products without having necessarily gone through the discipline and the protocols and the governance that is so important, particularly in health care. So that's allowed us to really think very carefully around the development of products. So I want to speak a little bit about what we're doing internally first and then I'm going to talk about what we're doing externally. So internally, really, for anyone who's running a software company, it's hard to imagine how much life is changing. This AI revolution is really reshaping the software industry in ways that we never could have imagined. It is accelerating innovation, it's improving product quality, it's enabling our teams to focus on higher-value work rather than routine tasks. And this transformation is already underway at Oneview through a whole bunch of initiatives around our entire software development life cycle. So as you look at this slide, you'll see these red boxes, which should be familiar to anyone who works in the software business around planning and requirements, design, development, testing, our release methodology, our deployment methodology, and our ongoing operations and support. And we've challenged our leadership of each of these areas of the business to really embrace the tools that are available, and we've really focused on setting the company, setting everyone in the company AI-specific learning objectives. We're all going to be on this journey together. Clearly, there's a lot of anxiety around the impact these kind of initiatives are going to have on workforce going forward. But at the moment, we have taken the view that the best thing we can do for our shareholders and for our employees is to head off on this journey together. And that's meant the establishment of 2 communities of practice, one that is focused specifically on engineering and then a second community of practice that is focused on business automation and initiatives. The engineering co-op meets weekly and the business community practice meets fortnightly. And we're showing real progress across the business. And I think that's as sensible a way as we've been able to come up with how we deal with these challenges. And we're seeing really powerful employee engagement around these tools, making these tools available to everyone and encouraging them to get their hands on the tools. In terms of our customer-facing AI strategy, I think as those who follow the company closely know, we unveiled Ovie, which is our virtual care team member at 2 tradeshows in the United States during the first quarter of this year, had really positive feedback from a customers' perspective and current customers around this. And this really leans into how we're thinking about our whole new front-end that we're building. And the front end is built around 2 key components. On the left-hand side of this slide, we'll talk about the patient-centric value of the platform. And on the right-hand side is the care team-centric value of the platform. We very much focus on those 2 groups equally. So what we're trying to do here is really leverage the massive leaps that have been made in natural language processing. We know that voice is becoming a modality of choice, particularly for younger patients, but increasingly throughout the demographics. We know that voice is going to become much more of a driver. So in its simplest form, we are redesigning the front-end so that it knows or it has the context to be able to share with the patient what's the next most important thing for the patient on their journey. That could be ordering a meal, it could be completing education content, it could be dealing with their discharge planning, but it will be surfaced to them in a way that is seamless and gives them the sense that the system understands who they are and why they're here. They'll then be able to use voice through the Ovie voice for natural conversations around simple tasks, which might be controlling their environment, controlling the room temperature, changing channels on the television, or asking questions of the virtual care assistant, which would include such questions as, when am I going to be allowed to go home, what medication am I on, what are my medication side effects. We see this as a really important component of taking pressure off the care teams. And then the Ovie console is the real-time dashboard that is surfacing for the care team, the intelligence around the dialog that the patient is having with the system. So we know that if the patient is asking questions around their medication, it might prompt us to pass fresh education content across on that medication. We know there are certain words that are going to trigger an immediate response. If a patient is asking questions about end-of-life or about suicide, that would trigger an immediate reaction for the care team that someone needs to round on the patient. So Ovie rounds is the extension of taking the context awareness that the system has developed and sharing that information automatically with nurse unit managers and leaders to ensure that circle is closed. So on the next slide, you'll get a sense of how we think about where Ovie fits in, in the delivery of virtual care. We know, and I think anyone who's followed the company knows that virtual care has been a huge driver of demand for our platform in the last 2, 3 years. That's continuing to this day. And I think every conversation we're involved with in customers, regardless of where they are, the conversations around how do we use the Oneview platform to use us as the conduit for delivery of virtual care. As we mentioned in the latest 4C, we're expanding portfolio of authorized vendors through the API. So we now have Caregility, Teladoc, and we're currently working on care.ai and Artisight to qualify those vendors for that program. So Ovie is a precursor to the virtual nurse. It allows the patient to communicate in their own language with the virtual patient assistant and ask the basic questions. So it's always on, it's always available. The virtual nurse is an escalation point for Ovie to say, listen, at this point, we think you should be talking to a virtual nurse. And obviously, the virtual nurse is the ultimate arbiter of when do we bring the floor nurse in for that personalized connection, the physical care, the urgent care that is such a critical part of every hospital's ecosystem and what really motivates nurses. So I think this is a very logical and a very appropriate use of AI at the patient's bedside. This is just a sense of what that's going to look like. On the next slide, you'll see the patient-centric vision. So Ovie is asking the patient to order breakfast. It's reminding them they have an upper body x-ray, and it's also asking them how they slept last night. And again, that's all helping the context for the care team who on the right-hand side can see and look at any unit and ascertain who on the unit has not yet ordered their meal, who hasn't completed their education content. So historically, we have had this information available to customers on a monthly lookback basis. We're moving this to real-time data, which is going to provide real operational data that's going to allow the care team to orchestrate the delivery of care and lead to a much enhanced experience, both for the care team and for the patient. So a huge step forward for us as a business. I think from a competitive point of view, it's going to place us in a really unique position where we are obviously ahead of the competition in our AI governance. And I think we've got a product suite that we're building that's also going to put us at the forefront of this dramatic change in the industry. The final thing we're doing around AI-powered insights is really leveraging the real-time data we're getting from the patient's use of the system. So we're working with one of our academic teaching hospitals to develop this clustering analysis, which is looking at the demographics of the patient. It's taking their age, their gender, their disease state and helping us give a sense of how active they are with the system, how are they engaging with the system. And what we're looking to do is establish a correlation between that use and the HCAHPS satisfaction data. So the HCAHPS score is the survey that every patient is surveyed in the United States 6 weeks after discharge and asked 11 questions around their patient experience. And what we're hoping to establish is a link between the engagement of the system with the way the patient is rating the organization. And the second derivative of that, where we really want to get to is to be able to demonstrate that a highly engaged patient ultimately leads to lower readmissions for the health system. So really important work that's driving some real value for our customers going forward. So let me turn to the commercial and sales updates. Just a reminder, our global footprint, we continue to have enjoyed success on 4 continents. We are very much predominantly focused in the United States and Australia. But just a reminder that we have had the Bumrungrad partnership in Thailand for 6 or 7 years, and we have won, although we're still waiting for the new Children's Hospital of Ireland to open its doors, which is scheduled for June of 2026. But we hope to be delivering hardware for that project this year. So the reality is that the patient experience is a global phenomenon. We also have some sales activity in some new interesting corners of the world that may well come to fruition in the second half. So in the United States, just a reminder of where we've enjoyed success. You'll see on this map that we've enjoyed success across the country. What really began as an important footprint on the East and West Coast has really filled out in the Midwest and, of course, now in Florida and in Southern California. So U.S. current customers account for 73% of our live endpoints and would account for probably 6 or 7 point higher of our contracted endpoints. So most of our new business in recent times has been in the United States. However, in Australia, that's not to say we don't have an important business, because we do. We've had a long-standing, decade-long partnership with Epworth and similarly with the Children's Hospital in Sydney. We've also more recent years, we've been enjoying new partnerships with Avive and Adeney. So Australia remains an important market for us, but we are cognizant of the challenges that market is facing, which is why we have rightsized our Australian workforce in the current half year. But Australia, as you can see here, still represents 23% of our total live endpoints. In terms of our commercial strategy, I think it's pretty obvious. We've talked in the past around how important landing and expanding is, and that is a trend that continues to this day. We know that adding new logos is an incredibly challenging pursuit. The sales cycle in this industry is ridiculously long and being elongated in certain circumstances by security concerns. I think every -- well, every new customer we onboard, we are going through very complex security assessments, which take time and need to be satisfied. But we're really pleased to see that the caliber of the customers we've been able to attract. We've never failed a security assessment in our history. And as we know, once we're in, we now have the opportunity to expand both vertically and horizontally with our new product portfolio, which is delivering a 92% product upsell opportunity. And we remain blessed with very low churn, with one notable exception in Australia, which I'll talk about shortly. In terms of new customer logos, as I think you will remember from last year's presentation, we've enjoyed more commercial success in the last 2 years than we did in the previous decade. That trend is continuing. Although we only landed 2 new logos in the first half of this year, that's not a function of where the sales funnel is. In fact, on the contrary, I think we're in a position for a very strong second half. Our sales organization have never been busier. We have several new logos that are already in contract negotiations. So the question I think everyone wants to ask is what's happening with the Baxter partnership. And the bottom line is that the partnership is maturing very, very nicely. As we foreshadowed in the 4C, we have around 180 opportunities. We're really proud of the momentum that's building through the partnership. And while some of these deals have taken a little bit longer to close than expected, the depth and the breadth of their pipeline is unprecedented. We've already won 4 logos and obviously extended and expanded the value-added reseller agreement in 2024. And now this pipeline has reached a level of maturity that we're really confident that the groundwork laid in recent quarters is going to translate into meaningful growth. And that's -- I know that's a frustration for the market, but I can say that our sales organization and Baxter's sales organization are really joined at the hip and working some very significant opportunities, which we're very excited about. To give you a bit of a sense of what that looks like, we've just taken the trouble of sharing the geographical footprint of the opportunities that they're currently working. You can see that they represent over 180 opportunities in 41 states across the United States that represent nearly 50,000 beds, which is roughly 5% of the U.S. market. So there's a ton of activity going on. And you can see, I think when we think about how difficult Australia has been to see that we have 18 -- they have 18 opportunities in California, 26 in Florida, 22 in Texas. They are the kind of numbers that we can only dream about in the Australian market. So I think we've really positioned ourselves well for future success. Baxter has obviously been having their own leadership changes with the new CEO starting on the 3rd of September, but the level of engagement at the sales level and the executive sponsor level is extremely strong. So we're very excited about where that's going. In terms of deployment updates, I think you are all aware we've evolved from what effectively was a single platform solution. 2024 was a really important year for the company in terms of new product innovation. We delivered the digital whiteboard, we delivered the digital door sign, we delivered MyStay Mobile. Those products are giving us opportunities to open conversations with organizations where we might land with a door sign and then expand to the core product or vice versa. That is providing real value for us just in our existing customer base alone, where we're seeing some substantial movement. And recent customers like Inova, who are deploying the door sign, the whiteboard and the core platform in every room is obviously where we want to get to. So we're really happy with where the portfolio is. And obviously, finishing the new front end is the final piece in that puzzle. In terms of live endpoints, this is the progression that we see from the end of 2024 through to June 2025 and what we're targeting for December 2025. So as I mentioned, we've had one customer that did churn during the half year, which was an Australian customer where we lost 894 endpoints. It was simply due to budgetary constraints from a private hospital group in Australia who, in fact, wrote us a very glowing reference when they had the difficult decision to discontinue the product. Fortunately, for us, that product was a fairly lower margin product, in the sense it was entertainment and meal ordering only. And as you can see on the next slide here, the beds that have replaced those beds that were decommissioned have been deployed at a 96% higher average revenue per bed than the beds that were decommissioned. So you never want to lose a customer, and we were very upset to do so. But the fact of the matter is we've been able to replace those beds and more with a significantly higher revenue. And here, you can see the average revenue per endpoint, which we're showing 5% growth despite a significantly weaker U.S. dollar in the second quarter. It's nice to see the 5% growth year-over-year. The other thing I just wanted to touch on was the investment we're making in more efficient deployments. So JP Howe, who's our Chief Operating Officer, has been tasked with working with our U.S. team to really shorten our delivery time frames. Historically, we've seen 6 to 9 months as a standard deployment window. So we've tasked JP with getting that down to 90 days, and I'm pleased to report that we're showing great progress on that. And the ways we're doing that are multifaceted. We've made a significant investment in configuration tooling to reduce our project implementation time lines, which will also reduce ongoing support overheads and costs. And ultimately, we want to get to a point where we can enable a partner to install and operate our software without having to use a Oneview employee. That's [ nirvana ] for us. We've set ourselves an objective of getting there in mid-2026. I feel like we're on good track there. We're looking at infrastructure automation with AI agents, which shouldn't come as a surprise to anyone. And we're continuing our migration to containers, which is going to help SDLC no end. And then we're looking at how we can use AI for complex feature configuration in the field. So there's a lot of work going on here. We're already starting to see the benefits of it from a speed to revenue point of view. I think it's going to be really significant for shareholders in 2026 and beyond. So in terms of the outlook, the performance, as Darragh mentioned, we're really pleased with the top line growth in the first half of 2025. We've obviously seen a reasonable uplift in recurring revenue, again, slightly impacted by the weaker U.S. and Australian dollars in the second quarter of the year. The pipeline, though, is what we're particularly focused on. We're obviously, as I've mentioned, very pleased with where that's at. We're pleased with the maturity of the pipeline. And as we mentioned earlier, we've got several logos that are in late-stage contract negotiation. In terms of product initiatives, the new user experience will be delivered in the second half of this year. We're super excited about how that's going to help us deliver for new customers. And as part of that, we're delivering the AI-powered products that I've already spoken to, and I addressed ISO 42001. So productivity is going to be the other big winner. We've already obviously taken some cost out of the business. Never pleasant doing that, but I think it sets ourselves up for a very nice second half. We've got great momentum on the deployment side. We've got a leaner cost base, and we're coming into what's typically a seasonally stronger second half of the year. And the final slide here is just showing the recent deployments at Inova, which is the #1 health system in Washington and Virginia, where you can see that in this room, they have deployed all 3 devices, the television, the digital whiteboard, and the digital door sign. And obviously that's where we'd like to get to with all of our customers. So with that, that concludes my formal remarks, and we would be delighted to take any questions, if anyone has any.

[Operator Instructions] Your first question on the phones come from Wei Sim with Jefferies.

James, can you hear me?

Sure can.

So just the first one that I've got is in regards to some of that headcount reduction that we had come through. I'm guessing there'd be some redundancy costs associated to that. So would that have all been booked in the June half?

Yes, it would. Darragh, could you just...

Yes. With EUR 168,000 of restructuring costs were booked, and that's included in that cash OpEx expense for the first half of the year.

Right. And so I guess is there any remaining that would be booked in the second half is what I'm trying to understand.

No, it's fully booked. We've yet to see any benefit given that it was only executed in June, but the full costs are booked in the half year.

Okay, great. And then just in regards to the EUR 2.6 million of inventory that we have, how many beds would that account for? Or how should we think about that relative to how long that it'd last for?

Yes, it's a mix of different devices, but it's certainly we're thinking of it over a 12-month time frame at least.

And it's slightly more than we typically would have carried because we obviously wanted to try and get ahead of the tariffs. So you might recall in the February results, we spoke to that we'd actually expedited delivery of the hardware to get ahead of it.

Yes. No, that makes a lot of sense. Jen, you had a question?

Hi, this is Jennifer Xu. Just one more question is several -- like couple of weeks ago, like in the Q2 report, it shows the AI partnership with care.ai and also Artisight. Do you have any details or updates what particularly it looked like?

Sure. Let me take that one, Jennifer. So basically, with our virtual care API, the model we have set about is that with our virtual care strategies, we want to enable health systems to choose any of the virtual care providers and then leverage our API to be able to deliver the virtual care experience through the Oneview platform on the existing television in the room. So we have validated Caregility and Teladoc previously and [ VitalChat ], it's another smaller operator. We are currently -- and this is very much customer-led. So we have a customer in New York that has selected care.ai as their virtual care partner, but they want to deliver it through Oneview. Similarly, we have 2 prospective customers who are both Artisight customers who have asked, could they deliver Artisight through the Oneview platform. Does that make sense? Does that answer your question?

Yes. That makes sense. And also for the second half, when you mentioned about redesign of the front-end user experience, is that also related to these 2 partnerships?

No, no, it's not. So that's being built in-house based on research we've done with our existing customers, really dating back on customer feedback and market research we've done over the last 18 months or so. But we think it's going to enhance our competitive position. And ultimately, it will allow us to potentially deploy our solution on a smart TV instead of putting a set-top box behind the TV. So it could also lead to further capital constraints being reduced on prospective customers, which is a second goal. The first goal is obviously enhancing the user experience, but the second goal is around a delivery methodology.

[Operator Instructions] Your next question comes from Dan Hurren with MST Marquee.

Look, unsurprisingly, I do want to talk about the Baxter VAR. I guess from an outsider looking in, it appears to have certainly been [ perhaps what we ] originally thought. An obvious question, just do you remain confident that the VAR is structured in the right way, that the incentives for the Baxter team are correct and correctly aligned? Or do you think that this does need -- it could be changed again in any kind of reextension or revalidation?

No, I think there's really good alignment on it. And I know there was a lot of painstaking negotiation around making sure we got that alignment right in the get-go. I think with all things, it's all around making sure that the incentives are appropriate for the sales organization. And certainly, that's true. We know that the Baxter reps, in order for them to achieve all of their variable comp, they have to sell at least some Oneview this year. So I think that alone suggests to me that they see it as pretty important to their own hip pocket, which ultimately is what a lot of people in the sales world are focused on. So no, I think the alignment is good, Dan. Look, I think it was one thing that perhaps we underestimated was Baxter, by their own admission, were still suffering a little bit of indigestion from the Hillrom acquisition when we first started. So perhaps their sales organization wasn't as optimized as it could have been. And secondly, I think they might have misunderstood just how complex -- because the platform touches so many stakeholders in large enterprise health systems, it is a complex sale. And we know that ourselves. And I think perhaps they thought it might have been a little bit of an easier sale than it's turned out to be. But at this juncture, as I said, we have a very mature -- they have a very mature pipeline of opportunities. And I think they're pretty enthused about where we're at.

Okay. And just perhaps a bit more of a mechanical question. There's been a couple of bits of delayed revenue over the last 18 months. Could you just run us through where we are with those and where you expect they might land?

So the Children's Hospital of Ireland, as I mentioned, still hasn't got a definitive opening date. We have delivered some equipment to them. We are hoping to deliver -- Darragh, it's about EUR 500,000 or EUR 600,000 of hardware to them in the second half, is that right?

Yes, that's right.

And then BJC was the other one that was on hold post the Saint Luke's acquisition. And we've had some good engagement with BJC. We've booked over EUR 1 million of revenue with them year-to-date. So there's still a bit more to catch up with them. But hoping that is going to come through in the second half or worst case in the first quarter.

So it'd be in the vicinity of potentially $1 million of that deferred revenue -- sorry, EUR 1 million landing in the second half?

Potentially, yes.

There are no further phone questions at this time. I'll now hand back to address any webcast questions.

Thanks, Ashley. Yes, we have 3 questions in the queue here. They're all from Martyn Jacobs from Bell Potter. So the first question is live beds at H1 were 13,526. Your previous road map had an expectation of 14,952 by June 2025. What drove the shortfall, which appears to have driven the single-digit rise in recurring revenue?

Want to take that one, Darragh.

Yes. Sure. So it's really the points that James has raised there in terms of CHI and also those deferred customers from before. We had hoped that there would be additional deployments there relative to what has been. There has been some good progress there, but we had assumed slightly better progress in the year. So they're the main drivers. So there's probably between those 2, there's 650 endpoints in CHI. There's probably another thousand endpoints from those U.S. deferred customers that we expected to come through in the year. So that -- and then the final piece is that customer in Australia, albeit it was low-margin customer, it was a big bed number with 894 endpoints. So that accounts for the rest of the difference.