Practo Reports 90% Improvement in Adjusted EBITDA in FY24
June 14th, 2024: Practo has reported strong results for FY24, achieving a 90% improvement in EBITDA compared to FY23 and a 22% growth in revenue. The company achieved a positive adjusted EBITDA in Q4 and is on track to maintain this positive momentum in the full year of FY25. A sharp focus on core business resulted in a 68% CAGR, reducing adjusted negative EBITDA from INR 162 crore to INR 17 crore. Additionally, its contribution margins rose to 40% in FY24 from -1% in FY22, reflecting enhanced operational efficiencies.
Its core business, comprised of software, appointment booking, and telemedicine is profitable, and generates healthy cash flows. In the last year, the company observed significant growth in tier 2 and 3 markets, with revenues in these regions growing by 50%, while tier 1 markets grew by 20%. Its hospital management system, Insta, trusted by over 1,500 healthcare centers globally, now has a 15% market share in the UAE. Insta also reported a 98% retention rate of our customer base and is cash flow positive.
FY24 was also the year Practo made significant progress in improving health outcomes for consumers with the launch of the ‘excellence score’. For the past 16 years, Practo has been at the forefront of using computer and data science to improve health outcomes. With over 40 crore consumers, 150,000 doctors, and 80,000 healthcare establishments adopting its products and services, Practo has helped scale digital health adoption in India. ‘Excellence score’ further aids this goal, contributing to improved health outcomes. It provides an objective assessment based on the largest repository of patient feedback, helping patients find the right providers.
“The future holds exciting possibilities. Data science offers the promise of preventing human error in diagnosis, matching patients with the right healthcare providers, reducing unnecessary costs through accurate diagnoses, and minimizing wasted resources due to misdiagnosis. And Practo stands at the forefront of this data-driven healthcare revolution. We were among the first to leverage cutting-edge data science to develop tools and platforms that improve health outcomes for millions.” says, Shashank ND, Co-Founder, and CEO of Practo.
FY 25 and beyond
Extensive 1500 hours of consumer research in FY24 highlighted the importance of trust in choosing healthcare providers and the potential role of AI in enhancing these interactions. Practo plans to build on these insights in FY25. The company’s top priority in FY25 is to grow profitably and build innovative products that continue to improve health outcomes. With advancements in AI, Practo expects to upgrade its products to include the best AI features for both consumers and providers. Additionally, Practo aims to strengthen its core business and evaluate international expansion opportunities.
Furthermore, Practo looks forward to expanding its Foundation work as it pursues its goal of #Mission10kCataracts by enabling free cataract surgeries across Karnataka, AP, and Telangana while maintaining the cost per surgery.
Read the Practo Annual Letter attached to know more.