ONE 4C is strong, with more to come as Baxter partnership expands

Today our health tech Investment Oneview (ASX: ONE) released its Q1 2025 cash flow report, which we were pleased to see showing improved financial performance for the company.

It was a strong start to the year and a big quarter for ONE in terms of receipts - €4.2M ($7.5M) which helped reduce net cash outflows to €1.6M ($2.85M).

Those receipts represent an increase of ~63% on the same time last year and ~180% relative to last quarter’s receipts of €1.5M (~$2.7M).

We see this a strong result for ONE, and reflective of a number of its initiatives and sales from last year starting to flow through to receipts.

The quicker ONE can be self-sustaining through an operating cashflow positive status, the better.

This will mean far less of a likelihood that ONE will have to rely on capital markets to fund ONE’s growth through potentially dilutive equity raises.

In turn, as ONE approaches this status, we think that the shackles can come off on the charts, and ONE can produce another sustained re-rate.

We’ve been Invested in ONE since March 2021, and over the last 4 years we’ve seen ONE start to build major momentum as it drives at bringing US hospitals into the digital age.

That conviction was strengthened when we attended an April investor breakfast briefing hosted by Will Vicars, Chief Investment Officer at Caledonia.

Vicars has been backing the company since 2013 when it was a private company. In his role at Caledonia Vicars has developed a reputation for identifying powerful commercial trends and themes in global markets and getting in early as they emerged.

Read more about that breakfast below:

ONE investor breakfast briefing hosted by Will Vicars - here’s what we saw

We got an update on the Baxter partnership as well in this announcement, along with an update on contracted beds:

(Source)

So things seem to be humming along for ONE right now, as we await what we hope is another major deal that brings more contracted beds to ONE.

What’s next for ONE?

More contracted beds and a transition to the more smoothed out revenue streams of a true SaaS model with MyStay.

We want to see ONE hit 25,000 beds - it’s our number one objective for ONE in our ONE Investment Memo.

We think by hitting all the objectives in that Investment Memo it will move ONE closer to realising our ultimate upside scenario for our ONE Investment, our ONE Big Bet:

“ONE will sign on enough new hospital beds at an accelerating rate to achieve a $1Bn valuation (based on 5x to 10x forward ARR multiple) and be acquired by a large health tech provider.”

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is a lot of work to be done, many risks involved, and it will require a significant amount of luck. There is no guarantee that it will ever come true. Some of these risks we list in our ONE Investment Memo.

So we’ll be looking out closely for ONE to seal the remaining contracts in late stage negotiations and start to see Baxter’s 100 person strong salesforce deliver results.