ONE quarterly - more hardware ahead of sales push

Our health tech Investment Oneview Healthcare (ASX:ONE) quarterly report has revealed a significant investment in hardware ahead of a major sales push in Q3.

The outlay on hardware was €500K (~A$730k) which was part of the reason net cash outflows for this quarter were €1.98m (~A$2.9m).

Receipts from customers were down 19% on last quarter from €1.6m to €1.3m (~A$2.3m - $2.8m). We know that ONE sales are lumpy so this isn’t completely out of character for the company.

Other things to note were that the increased sales and marketing spend seems to be having the desired effect with the US Sales pipeline growing by over 100% for the quarter.

Given the share price action today, it seems that for now the market is relatively pleased with the results.

Our perspective on the ONE quarterly is that while we’d hoped the company was closer to operating cash flow positive, the sales pipeline should see some bigger conversions in the next quarter after the breakthrough BJC Health System deal in May.

That was ONE’s biggest deal ever and we hope it’s a sign of things to come.

Although there was no specific update on total contracted beds (which is like an active user metric for any tech company), we did some back of the envelope calculations based on the information in this quarterly report, and we think ONE is now hovering around the 14.5K contracted bed mark.

That’s mighty close to our #1 objective from our ONE Investment Memo.

What’s next for ONE? We want to see a big deal come through from the sales pipeline and ONE to smash through the 15K contacted bed mark.