ONE - a record pipeline of sales opportunities going into 2025
Our health tech Investment OneView Healthcare (ASX: ONE) just put out its FY24 preliminary report and a new presentation to go with it.
Usually these prelim reports don't reveal much new information because they are backward dated (i.e. the report covers up to 31 Dec 2024).
BUT the presentation to go with it had a few interesting nuggets that we thought were worth pointing out:
- Live beds, Contracted beds & sales pipeline are all up
Live beds and the contracted beds numbers were already known news from ONE’s December quarterly report.
But we did notice ONE mention that it was going into FY25 with a “record pipeline of sales opportunities”.
Given the partnership with $29bn Baxter International, we are hoping this translates to increased growth in beds in 2025…
For anyone who missed it we wrote a Quick Take on a recent linkedin post we saw from Baxter which featured ONE.
Source: ONE strengthening its partnership with Baxter International
- ONE delivered 3 key new products in 2024
We saw in today’s presentation that ONE had delivered the latest generation for three key products - the MyStay BYO device’s, Digital Whiteboard and Digital Doorsigns.
This may not seem like a big development because they were all previously announced products, but we think that by delivering an updated version of the product, ONE can now transition to focusing on selling the product as opposed to developing.
For us it's a signal that ONE is ready to market its full product suite as a one stop solution…
The slide from later in today’s presentation really hammered that point home:
- We also noticed a big focus on “product upsell” opportunities.
One recurring theme we noticed in ONE’s presentation was the idea of “landing and expand” the company’s value proposition.
At a very high level it's ONE’s way of saying, once a deal gets done it usually has a flow on effect to value added “upsells”.
The slide on page 12 showed how that has worked for ONE in the past across 5 different customers.
We think ONE is approaching a point where the upsell potential for the company has increased significantly (especially with the key product launches mentioned earlier).
Now ONE can “Land” a customer then upsell its Digital whiteboard, doorsign and mystay offering.
On page 29 of the presentation ONE mentioned there was a “92% upsell opportunity”.
We are hoping to see this strategy trigger a step change in sales for ONE in 2025.
The presentation overall is a pretty good run through of what ONE offers and what it is working toward.
Check out the presentation here.
What’s next for ONE?
We are hoping to see more sales deals roll through and a conversion of sales through ONE’s value-added reseller partnership with Baxter International.
We especially 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:
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.
