Irish data analytics and diagnostic commercialisation company Diaceutics said revenue grew 32 per cent in the first six months of the year, as its new platform was adopted by more large pharma customers.
The company is also set for a change in leadership, as chief executive Peter Keeling said he would step down from the company he co-founded after 18 years in the role, with Ryan Keeling stepping into the role.
Diaceutics, which provides data, analytics and technology-enabled services to the precision medicine market, said almost half of its revenue is now recurring, and its order book had also grown more than 40 per cent.
Revenue for the six months was £9.9 million (€11.4 million), almost a third higher than the same period a year earlier. Recurring revenues were £4.6 million, a 66 per cent growth year on year.
“If you look at our revenue profile in the past, it was very much representative of a consulting firm, advisory service, point intime revenue,” said Ryan Keeling. “The recurring revenue as part of our model, getting our clients on to multi year subscriptions, allows us to have a lot more predictability. So the recurring revenue, coupled with the order book really allows us to look at the business differently and make our investments accordingly.”
The company’s losses widened to £2 million, from £1.1 million a year earlier, and earnings before interest, tax, depreciation and amortisation were £200,000, in line with Diaceutics’ accelerated investment strategy that it announced earlier this year.
Chief financial officer Nick Robert said the company expected to return to profitability from 2025 onwards.
“The spending is very disciplined. We are spending, I guess, slightly ahead of the growth curve, but to help enable that we are maximising the amount of growth that we can achieve,” he said. “We have ambitions this year will be a 23 per cent year on year growth in revenue. We want to continue to maintain that in the 20s. That’s high growth as a business, and we’re spending effectively to achieve and maintain that. That said, it’s very measured, and it’s over a period of time.”
The company has also signed four enterprise-wide engagements to date this year, with a total contract value of $20.1 million.
Looking ahead to his transition away from the CEO role, Peter Keeling said it was the right time for the business for the transition.
“The way that Ryan and I have managed this over the years since we’ve built the business together - and we have really built the business together - is to always imagine this day where the culture, the direction, the technology and innovation of the business is handed seamlessly over him,” Mr Keeling said.
“So whilst it comes across as a transition, the way we regard it is it’s very much a natural segue to the business and that has two benefits. One is Ryan, surrounded by the management team that we put in place are aptly and ably positioned, I think to drive and, dare I say accelerate, the growth of the business. They can bring energy and pace to the company as much as anything else. But equally it allows me to support that mission with engagement with other corporates, whether it be through partnerships or through joint ventures, that really enhances that business. It gives me the freedom to do that and allows Ryan the kind of the freedom to operate that he needs in order to drive the business.”