• Continued double digit revenue growth (10%) driven by international revenue growth of 31% and customer renewals at +95%
• Current sales pipeline of $61m with $13m in later stages, providing confidence in meeting $60m ARR target
• Cost growth limited to 5% year-on-year, delivering 101% improvement in operating performance

Beamtree Holdings Ltd (ASX:BMT), a leading provider of AI-based decision support and data insights solutions for the healthcare sector, has released its financial results and trading update for the six months ending 31 December 2024 (1H FY25). The company reported continued double-digit revenue growth of 10%, driven by a 31% increase in international revenue and customer renewals at over 95%. Beamtree's current sales pipeline stands at $61m, with $13m in the later stages of the procurement process, providing confidence in meeting the company's $60m annual recurring revenue (ARR) target. Cost growth was limited to 5% year-on-year, leading to a 101% improvement in operating performance, with the company achieving a small operating profit of $5k in 1H FY25 compared to a $546k loss in the same period last year. Beamtree also delivered break-even operating cash flow in 1H FY25, versus a $2.3m cash outflow in the same period in FY24. The company enters 2025 with a strong cash balance of $3.7m, down from $5.0m at 30 June 2024, and has secured a NZ$7.5m (AU$6.75m) debt facility to further strengthen its cash position and support its growth plans. Beamtree has also announced several significant customer and contract developments, including the launch of its new Integrated Coding Platform in Saudi Arabia, verbal agreements for multiple implementations of its new autonomous coding solution across Australia, Canada, and the UK, and the signing of two major recurring revenue contracts for its PICQ Coding solution in Saudi Arabia.

Beamtree expects reported revenue growth of ~10% for FY25, with forecast reported recurring revenue growth of 12% to 14% for FY25. The company's forecast ARR growth target for FY25 is 20% year-on-year. Management continues to target a reduction in cash burn in the second half versus the first half, with the aim of delivering a cashflow break-even business by the end of FY25.

Beamtree enters 2025 with a strong pipeline of opportunities across all its markets and products, supporting the acceleration of recurring revenue growth in the second half. The company will continue to focus on delivering profitable growth and carefully managing investment required to support overseas expansion, with the long-term aim of delivering annual recurring revenue of $60m by the end of 2026.