Earnings call and preliminary annual report summary
ONE reaffirmed revenue guidance of €12.5 - €14m for 2022 - ONE remains one of our favourite investments and biggest positions.
Key metrics (with commentary):
- 5% Recurring Revenue growth - slightly disappointing, but still time to make up ground
- 37% Total Revenue growth (due to lumpy outlay of lower margin hardware sales) - this is reflected in non recurring revenue up 120% and cost of sales up 86%
- 9,487 beds live at 31 December 2021 (+3%) vs 9,121 at 30 June
- 2,355 beds contracted not yet installed.
- 11,842 contracted beds - we want to see 15K contracted beds by the end of 2022
40% increase in sales and marketing - means ONE is spending 20% of receipts on sales and marketing so they did what they said they would do here, hopefully, they reap the rewards in the sales pipeline
We think the lag from hardware push should come through in coming quarters with recurring revenue, potentially in the 20-25% range.
ONE has 12,123 beds in RFP/RFI which are still waiting on decisions - these formal processes represent 64% of ONE’s total sales pipeline of 18,927 beds.
RFPs (Request for Proposal) and RFIs (Request for Information) are lengthy affairs that push ONE’s contracted beds through the bureaucratic pipeline.
It’s good to see so many beds potentially there for ONE, now we just want to see its sales and marketing team convert.
