MedAdvisor (ASX:MDR), a healthcare technology company that provides digital medication management solutions, has reported strong growth in the third quarter of FY23. The company’s operating revenue increased by 50.4% to AUD 17 million ($12.2 million) compared to the third quarter of FY22.
Commenting on the Company’s achievements over Q3 FY23, CEO & Managing Director Rick Ratliff, said: “We have achieved an excellent quarter result with operating revenue increasing 50.4% to $17.0 million compared to 3Q FY22… The growth we have achieved is underpinned by our expanding global pharmacy network and digitisation strategy, supporting the delivery of more health awareness campaigns through our network”
The company saw strong growth with US revenue growth of 59.5% to AUD 11.8 million, while Australia saw revenue growth of 33.3% to AUD 5.2 million. Gross profit increased by 53.7% to AUD 10.3 million, and the gross profit margin increased by 1.3 percentage points on the previous year.
MedAdvisor’s US digital reach expanded to 70 million individuals, an increase of 10 million (16.7%) individuals over the quarter. The company’s integration of GuildLink pharmacies in Australia is on track, with 86% of the 1,494 GuildLink pharmacies migrated to a MedAdvisor account, and the system integration set to be completed by 30 June.
Despite a net operating cash outflow of AUD 12.3 million, the company’s operating cash receipts totaled AUD 25.2 million, up 38.5% on the previous year. The increase in operating costs was largely due to the timing of Q2 FY23 quarterly pharmacy abatement payments in the US, and expected costs associated with performance-based remuneration and Australian people costs for the GuildLink integration. Administration and corporate costs were heightened due to one-off costs associated with the GuildLink integration, US cloud migration, and the One-Company initiative focused on product innovation, analytics, global platform planning, and enterprise branding.
Looking forward, CEO and Managing Director Rick Ratliff expressed strong optimism about the company’s various initiatives, affirming: “As the company continues to scale its advanced technology platform, we believe the digital expansion momentum will continue to year-end as more pharmacies utilise our digital capability. By financial year-end, we expect to increase the number of individuals that have opted into digital communications through their pharmacies to over 100 million”