Practo in a press statement on Thursday, reported a significant 90 per cent improvement in adjusted EBITDA for FY24 compared to FY23, alongside a 22 per cent growth in revenue.
The company achieved positive adjusted EBITDA in Q4 and is poised to maintain this positive trajectory throughout FY25. Focusing sharply on its core business resulted in a 68 per cent compound annual growth rate (CAGR), reducing adjusted negative EBITDA from Rs 162 crore to Rs 17 crore. Contribution margins also saw an impressive rise to 40 per cent in FY24 from -1 per cent in FY22, indicating enhanced operational efficiencies, the press statement from the company read.
Practo's core business—which includes software, appointment booking, and telemedicine—continues to be profitable, generating healthy cash flows. Over the past year, the company experienced significant growth in tier 2 and 3 markets, with revenues in these areas increasing by 50 per cent, while tier 1 markets saw a 20 per cent growth. The hospital management system Insta, trusted by over 1,500 healthcare centres worldwide, now holds a 15 per cent market share in the UAE and boasts a 98 per cent customer retention rate, remaining cash flow positive.
The company further stated that FY24 also marked notable progress in improving health outcomes for consumers with the introduction of the ‘excellence score’.The ‘excellence score’ enhances health outcomes by providing an objective assessment based on extensive patient feedback, helping patients find the best healthcare providers.
Shashank ND, co-founder and CEO of Practo, commented, “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 minimising wasted resources due to misdiagnosis. 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.”
In FY24, extensive consumer research highlighted trust and AI's role in healthcare. Practo will focus on profitable growth and developing AI-enhanced products in FY25. The company plans to strengthen its core business, explore international expansion, and advance its Foundation's goal of #Mission10kCataracts by providing free cataract surgeries in Karnataka, Andhra Pradesh, and Telangana, keeping the cost per surgery under Rs 2000, the press statement added.
