Oneview quarterly report details progress on many fronts

Our healthtech Investment, Oneview Healthcare (ASX: ONE) released its quarterly report today, which detailed the company’s rapid progress this quarter.

The big wins for us were as follows:

• A big jump in contracted beds (12%) after signing a deal with Inova Health System - read our Quick Take.
• Rapid progression of ONE’s relationship with Baxter International’s sales team, Baxter is the largest hospital bed supplier in the US and this relationship has rapidly expanded ONE’s sales pipeline and already delivered its first purchase order - read our latest ONE note.
• Significant improvements to the functionality of its MyStay product - which should make it an increasingly powerful tool for improving the efficiency of hospitals and the overall patient experience. We’ve tried the MyStay app ourselves - read our note on why we think this product is so important to ONE’s future success.

ONE has a cash balance of €9.1M as of March 31st which we think gives it plenty of runway to move towards sustained profitability from recurring revenue streams - particularly in light of its recent roll out of its MyStay product which we think promises to transition ONE quickly towards a true blue, rapidly growth SaaS company.

Today’s update also included details on how ONE will payback funds from an Irish Government COVID relief program - we see the terms as fair and reasonable being split across 60 months and a 0% interest rate.

We’re also a big fan of ONE CEO James Fitter who presents well and has a deep grasp of what’s needed to improve hospitals and patient experience - he shared his views on the intersection of technology and healthcare on the following podcast:

(Source)

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 in 2024 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.

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.