ONE Signs Large Deal - Grows Contracted Beds By 12%

Today, our healthtech Investment, Oneview Healthcare (ASX: ONE) signed a Master Services Agreement with Inova Health System for 1900 beds.

It’s a big win - a chunky deal that instantly tacks on 12% to the company’s bed total bringing it to 17808 beds.

ONE continues to deliver and this has been reflected in share price performance - the company’s shares are up ~320% in the last 12 months.

Previously, ONE had alluded to 4,572 beds in late stage contract negotiations in the company’s annual report - something we covered in our latest ONE note.

Importantly, this agreement is with another highly prestigious healthcare network - the best US hospitals use ONE’s tech and they sign long term contracts - today’s agreement was for a 5 year initial term.

The other good aspect to today’s news is that it came from outside the Baxter International value added reseller agreement, meaning ONE can get runs on the board from different places.

We’re bullish on what the Baxter International agreement can unlock in terms of ONE’s growth trajectory - Baxter is the largest hospital bed supplier in the US.

From a macro perspective, ONE may also be benefiting from the tailwinds in the tech sector as well.

It’s a potent combination, particularly in light of the ongoing MyStay rollout which promises to reduce any friction in the sales pipeline further for ONE - this is what it looks like:

What’s next for ONE?

It’s pretty simple - 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 in 2024.

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.