By Najat Kantouar
HealthBeacon, the Irish digital-therapeutics company, has reported a widened pretax loss due to increased costs. The company stated that it will need approximately €11 million ($11.6 million) in additional funds over the next 18-24 months to support its long-term growth.
For the six months ending June 30, HealthBeacon recorded a pretax loss of €7.1 million, compared to a loss of €6.2 million during the same period last year. This increase in loss was mainly due to the cost of additional infrastructure required to support the specialty-pharmacy launch.
The company’s adjusted loss before interest, taxes, depreciation, and amortization (EBITDA) reached €5.4 million, compared to a loss of €4.6 million previously. EBITDA is a preferred metric for the company as it excludes exceptional and one-off items.
Despite the challenging financials, HealthBeacon reported relatively flat revenue of €861,000, down slightly from €867,000. However, the company did see an improved gross margin of 67%, up from 10%. This increase was driven by a significant change in the product mix.
Management is confident that with working-capital initiatives and cost-saving measures in place, the company will have sufficient cash resources to continue trading until the end of the year.
HealthBeacon has revised its annual recurring revenue guidance, now aiming for approximately €17 million by the end of the fourth quarter in 2024.