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• Revenue Growth: 7% increase in revenue with contributions from all business segments.

• Teleclinic Revenue: Doubled to CHF11 million with an EBTA exceeding CHF3 million.

• Cash Balance: CHF95 million at the end of 2024.

• Gross Margin Improvement: Increased by 350 basis points.

• Adjusted EBTA: CHF48.6 million, slightly below the guidance of CHF50 million.

• Non-RX Business Profitability: Achieved profitability in 2024.

• Germany Segment Growth: 6.9% growth in local currency.

• EU Segment Growth: 3.6% top-line growth, reversing a previous decline.

• Active Customer Base: Increased by 13% to 10.3 million.

• Capital Raise: Planned CHF200 million to support RX growth and refinancing.

• Net Debt: CHF228 million, with plans to reduce significantly post-capital raise.

• Warning! GuruFocus has detected 3 Warning Signs with XSWX:DOCM.

Release Date: March 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• DocMorris AG (XSWX:DOCM) achieved significant milestones in 2024, including a fivefold increase in new RX customers since the introduction of Carlink.

• The company reached profitability in its non-RX business, reflecting successful execution of its breakeven program.

• Overall revenue increased by 7%, with contributions from all business segments.

• Teleclinic doubled its revenues, demonstrating strong performance and attractive profitability metrics.

• Effective cash management resulted in a cash balance of CHF95 million at the end of 2024.

Negative Points

• The EBTA came in lower than last year, reflecting additional marketing expenses for the ERX business.

• There was a slight decline in basket size, order frequency, and repeat order rate, attributed to the influx of new customers.

• The company is unable to provide a detailed short and mid-term guidance due to being in a capital raise mode.

• Marketing expenses increased significantly, impacting the adjusted EBTA.

• The company faces challenges in gaining new customers, partially due to cautious marketing spendings in the first quarter.

Q & A Highlights

Q: What caused the restatement of RX revenues in the annual report? A: Daniel Wuest, CFO, clarified that there was no specific restatement for RX revenues. A restatement of CHF 3 million was due to a positive legal decision, resulting in a cashback from suppliers, but it was not specific to RX revenues.

Q: Can you confirm the 50% RX growth for Q1 2025? A: Walter Hess, CEO, confirmed that the 50% growth is based on the EUR 37 million base from Q1 last year, reflecting growth in both euros and local currency.