ONE Quarterly update

Our health tech Investment Oneview Healthcare (ASX: ONE), just became the first of our portfolio companies to put its December quarterly report out.

Usually, companies put this report out closer to the end of January (the deadline is typically the last day of the month).

If a company puts it out early, it's our opinion that management must be pretty happy with the results AND comfortable with its current cash position.

ONE just put out both a quarterly cashflow report and a business update - here are our key takeaways from the two announcements

1) Contract wins & negotiations

ONE recently signed a deal with Dunedin Hospital in New Zealand - the first in NZ for the company.

ONE also confirmed it was in “late-stage negotiations with two other major US health systems, representing over 2,800 beds”.

Given ONE currently has over 16,000 beds under contract, the two companies would represent ~17.5% more beds versus ONE’s current portfolio.

2) Bring Your Own Device (BYOD) launch progress

In today’s update, ONE confirmed that the development and marketing of its phase 1 BYOD product had been completed and that agreements have already been signed with multiple hospital networks.

ONE has signed up the #1 hospital in New York (NYU Langone Health) and Bon Secours Health System, one of the largest providers of private healthcare in Ireland (with 900 beds across five hospitals), to pilot its BYOD product this month.

It's now been just under two months since the BYOD product was launched through ONE’s partnership with Baxter, and sales are expected to start coming in over the next few weeks.

In our last note, we covered the Baxter partnership and what it could do for ONE’s business - We Just Increased our Investment in ONE.

3) Financials update -

ONE also gave a brief update on its financials for the year ending 2024 and what's to come in Q1 2024.

There was mention of delayed hardware deliveries that were expected to be with customers in December but have now moved into Q1 2024.

ONE said that the impact of the delays on the company's 2023 financials would be ~€2.9m (A$4.7m) - guidance by ONE now is for total revenue for 2023 to be ~€9.3m (A$15.1m) for the full year 2023.

ONE expects to recognise the ~€2.9m in revenues in H1 2024.

What we want to see next from ONE:

• Contract more beds - we want to see ONE hit 25,000 beds in 2024.

• Sign more deals with new hospitals - We think the Baxter partnership could be a game changer for ONE, especially considering it has a large share of the current hospital bed market in the US. The partnership was launched on the 6th of November so we should know throughout the year whether or not the partnership delivers for ONE.

• Progress on the BYOD product - The BYOD product could be the real scale opportunity for ONE given it is less frictionless and quicker to rollout into new hospitals. We will be watching to see if ONE can get new deals over the line for the new product.