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© 2025 Cogstate Ltd. All rights reserved. Investor Update Half Year Financial Results 20 February 2025For personal use only
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2 2 Disclaimer This presentation has been prepared by Cogstate Limited (‘Cogstate’). The information in this presentation is of a general na ture and does not purport to be complete, nor does it contain all the information which would be required in a prospectus prepared in accordance with the requirements of the Corporations Act. This presentation may contain statements, opinions, projections, forecasts and other material (forward look ing statements), based on various assumptions. Those assumptions may or may not prove to be correct. None of Cogstate, its respective officers, employe es, agents, advisers or any other person named in this presentation makes any representation as to the accuracy or likelihood of fulfilment of any fo rward looking statements or any of the assumptions upon which they are based. The information contained in this presentation does not take into account the investment objectives, financial situation or p articular needs of any recipient and is not financial product advice. Before making an investment decision, recipients of this presentation should consider th eir own needs and situation and, if necessary, seek independent, professional advice. To the extent permitted by law, Cogstate and its respective officers, employees, agents and advisers give no warranty, repres entation or guarantee as to the accuracy, completeness or reliability of the information contained in this presentation. Further, none of Cogstate and it s respective officers, employees, agents and advisers accept, to the extent permitted by law, responsibility for any loss, claim, damages, costs or expenses arising out of, or in connection with, the information contained in this presentation. Any recipient of this presentation should independently sati sfy themselves as to the accuracy of all information contained herein. For personal use only
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3 1H25 Business & Financial Highlights all figures in US$ 1. Strong financial performance • Record revenue, 61% gross margins, 20% EBIT margins, $5m positive operating cashflow • Margins over the last two half-year periods are consistent with pro-forma model 2. Higher than historical revenue yield in current year from contracts executed during the half • $20.3m of net new contracts executed during 1H25 added $12.4m to FY25 revenue • Changes to the mix of indications and product solutions is altering revenue yield – resulting in higher short-term revenue 3. Technology investment has created efficiency gains • Margin improvements following automations in data analytics, data management and workflow management • The number of full-time employees at 31-Dec-24 down to 154 (161 at 30-Jun-24, 166 at 31-Dec-23) 4. Cogstate continues to invest in data analysis and advanced analytics • Increase in operating expenses largely represents scientific and data engineering resources • Advanced analytics critical to automated error detection solutions that are a key part of Cogstate product roadmap 5. Further growth is subject to growth in sales contracts • Sales contracts executed in 1H25 up to $20.3m, but still less than recognised revenue during the period • Larger, more strategic channel partners are providing access to increasing number of opportunities providing avenue for potential scale For personal use only
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4 1H25 Financial Results (All figures in US$) Clinical sales contracts executed -20% Contracted future revenue $99.1m Clinical Trial backlog declined 8%. Healthcare: Eisai amendment negative impact. Group Revenue Profit before Tax Operating net cash flow +14% Cash Balance as at 31 December $23.9m Clinical Trials revenue growth of 27% Healthcare down due to Eisai contract amendment $34.2m Up from $30.1m at 30 June US$1.0m spent on share buyback during 1H25 +150% $5.2m Strong Clinical Trials revenue growth. Return to historical levels of SW license revenue mix. +86% $20.3m Growth in both Alzheimer’s and other indications. Seeing an increased number of opportunities . +19% +$5.4m $5.0m Up from PCP of ($0.4m) Growth in Clinical Trials. For personal use only
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5 Highlights • Revenue growth resulting from Clinical Trials, offset by decline in Healthcare • Strong improvement in gross profit margin from cost management and return of SW license revenue mix to historical levels • EBITDA and EBIT margins improving and close to target model • Strong growth in Profit before T ax US$ millions 1H25 Jul-Dec 2024 2H24 Jan-Jun 2024 1H24 Jul-Dec 2023 Revenue 23.9 23.2 20.2 Gross Profit 14.7 13.8 10.8 GP% 61% 59% 54% Operating Expense (8.5) (7.7) (7.6) Depreciation & Amortization (1.4) (1.3) (1.4) EBIT 4.8 4.7 1.8 EBIT% 20% 20% 9% Net Interest 0.4 0.3 0.3 Net Profit before Tax 5.2 5.0 2.1 Cogstate GroupFor personal use only
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6 Highlights Clinical Trials • Growth in revenue resulting largely from in-period revenue yield • Strong improvement in gross profit margin with return to historical levels of SW license mix and ongoing strong cost management Healthcare • Decline in revenue a result of renegotiated global licensing agreement • Maintaining margin through cost control despite decline in revenue US$ millions 1H25 Jul-Dec 2024 2H24 Jan-Jun 2024 1H24 Jul-Dec 2023 Revenue 22.7 21.5 17.9 Direct Costs (excluding depreciation) (7.0) (6.7) (6.8) SG&A (1.9) (2.1) (2.1) Gross Contribution 13.7 12.7 9.0 GP% 61% 59% 50% Segments Revenue 1.2 1.8 2.2 Direct Costs (0.3) (0.6) (0.5) Gross Contribution 0.9 1.2 1.7 GP% 75% 67% 79% Clinical Trials (including Research) HealthcareFor personal use only
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7 Highlights • Increased receipts from customers by $6.6m from growth in Clinical Trials • The increase in payments to employees and suppliers was limited to $2.2m, reflecting strong cost management • Lower cash flow used in Financing activities due to lower share buy-back, down $2.0m • US$34.2 million of cash and cash equivalents on hand Cash Flow US$ millions 1H25 2H24 1H24 Net Profit after Tax 3.9 3.4 2.0 Depreciation & Amortization 1.4 1.2 1.4 Disposal of Assets 0.0 0.1 0.0 Non-cash employee benefits (0.1) 0.1 0.7 Grant funding received (0.1) (0.2) (0.1) Exchange Rate differences (0.4) (0.2) (0.3) Change in working capital 0.3 1.8 (4.1) Operating Cash Flow 5.0 6.2 (0.4) Cash Flow used in investing activities (0.5) (0.8) (0.3) Cash flow used in Financing activities (0.4) (0.6) (2.6) Total Cash Flow 4.1 4.8 (3.4) For personal use only
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8 0 10 20 30 40 50 60 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 2H24 1H25 US$ Million Clinical Trials Sales Contracts, by Half Year 1H25 Clinical Trials Sales Contracts $20.3m • Alzheimer’s $14.2m • 1H24 $6.7m • 2H24 $4.1m • Other indications $6.1m • 1H24 $4.2m • 2H24 $11.9m • Across all indications, seeing an increased number of opportunities, reflecting: • Expansion of Cogstate offering • Improved funding environment for US biotech • Increased volume of opportunities via channel partners For personal use only
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9 23.9 16.3 21.5 16.7 13.3 16.4 1.1 2.2 2.2 2.2 7.1 0 5 10 15 20 25 30 35 40 45 FY25 FY26 FY27 FY28 FY29+ US$ Millions Actual 1H25 Revenue Contracted Future Clinical Trials Revenue Contracted Future Healthcare Revenue Contracted Revenue Run-Off Highlights • $99.1m contracted future revenue • $84.3m Clinical Trials • $14.8m Healthcare • $41.3m contracted FY25 revenue • vs $36.7m PCP • $17.4m 2H25 (vs $16.5m PCP) For personal use only
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10 CNS Clinical Trials Pipeline Momentum Continues to Build • CNS market size forecasted to reach $230B by 2032 • Highest forecasted growth in AD; followed by PD, Mood, Migraine and other CNS • CNS accounted for an average of 15% of all product focused transactions in four of the past five years • 2024 activity: • Lundbeck's acquisition of Longboard Pharmaceuticals • $2.6 billion to secure the late -stage anti-seizure drug bexicaserin. • AbbVie's deal with Aliada Therapeutics • $1.4 billion to acquire a drug candidate that targets amyloid plaques in the brain • Takeda License agreement with AC Immune • for Immunotherapy T argeting Alzheimer’s Disease;100 million upon closing and up to $2.1 billion at milestones • CNS growth reflected in increase in Cogstate channel partnership interest Source: Gores, M., Lutzmayer, S., Nayak, S., & Miao, Y. (2024). Fostering success in CNS innovation: Why CNS innovators should feel empowered to stay the course. IQVIA. https://www.iqvia.com/-/media/iqvia/pdfs/library/white-papers/cns-whitepaper-32024.pdf For personal use only
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11 Partnership Spotlight • Strong initial pipeline growth from Medidata across 28 unique customers and a range of indications – ADHD, ALS, Alzheimer's Disease,Angelman syndrome,Autism spectrum disorder,Bipolar Disorder,Depression, Dermatitis, Huntingdon's Disease,Influenza, Multiple Sclerosis, Oncology,Narcolepsy,Parkinson's Disease,Restless Leg Syndrome,Schizophrenia • Potential for partnership to provide substantial scale to Cogstate business poised for efficient delivery Partnership announced 29 Oct 2024 First award achieved 4 Dec 2024 Trained global team 10 Feb 2025 Medidata is the leading provider of SaaS and data analytics solutions for clinical research 11 For personal use only
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12 Data integrations for seamless delivery with channel partners • Imperative for efficient engagement with and through eCOA channel partners Enhanced offering for data insights and analytics • Data management and monitoring automations • Improved data visualization for customers delivered more efficiently Workflow automations for leveraging clinician network of global consultant resources • Purpose built app to trigger and triage central reviews • Expanding into new geographies and indication areas with flexible staffing capability Cogstate Business Poised for Scale For personal use only
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13 Guidance for 2H25 Clinical Trials Revenue: • 2H25 revenue is expected to be consistent with 1H25 revenue • Based on contracted revenue position at 01 January 2025 ($16.3m expected to be recognised in 2H25 vs $14.5m PCP) and high probability sales prospects • If sales contracts executed in 2H25 outperform 1H25, then there could be revenue upside, subject to timing of execution of sales contracts Margins: • There are no significant changes to the cost base planned and therefore gross margins and EBIT margins for 2H25 should be consistent with 1H25 Operating Cashflow : • Additional tax payments of approximately $1.5m are expected to be made during 2H25 • Excluding timing of tax payments, cashflow from operations for 2H25 should be consistent with 1H25 For personal use only
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15 Appendix - Medidata • Founded in 1999, Medidata was acquired by French software company Dassault Systèmes in 2019 for US$5.8bn • Medidata is a leading provider of SaaS and data analytic solutions that support clinical research • Medidata’s EDC (electronic data capture) system, Rave, is an industry leading cloud-based clinical data management system used to capture, manage and report clinical research data electronically • Medidata’s eCOA (electronic clinical outcome assessment) is a technology that helps collect electronic data from patients, physicians and caregivers. It is used in clinical trials as part of the unified Medidata Platform. • eCOAs in central nervous system (CNS) disease can be complex, requiring design, implementation and training by clinical experts. • Medidata’s partnership with Cogstate enables them to sell their Medidata Platform solutions into CNS trials with the required expert scientific services and complimentary digital assessments. For personal use only