Beamtree Holdings Wins Significant Revenue Contract in Saudi Arabia
BEAMTREE HOLDINGS LIMITED (BMT) Share Update September 2024 Tuesday 24th
Beamtree Holdings Secures Major Revenue Contract in Saudi Arabia
Beamtree Holdings Limited (ASX: BMT) has announced a major contract win in Saudi Arabia, securing a $1.4 million deal to supply its clinical coding technology, PICQ, to the Centre for National Health Insurance.
Instant Summary:
- Beamtree secures a $1.4 million contract for its PICQ technology in Saudi Arabia.
- The contract is with the Centre for National Health Insurance (CNHI).
- This follows a previous $0.5 million contract with the National Health Information Centre.
- Total annual recurring revenue from these contracts is around $1 million.
- The contract was won in partnership with Lean, a leading health technology provider in Saudi Arabia.
Contract Details
Beamtree Holdings Limited, a leading provider of AI decision support and data insights solutions for the healthcare sector, has secured a $1.4 million contract to supply its PICQ technology in Saudi Arabia. The contract, initially set for two years, will be used by the Centre for National Health Insurance (CNHI) to monitor data quality among Ministry of Health hospitals.
This contract follows a previous $0.5 million deal with the National Health Information Centre, bringing the total annual recurring revenue from these contracts to around $1 million. Both contracts were won in partnership with Lean, Saudi Arabia's leading provider of health technology solutions.
Strategic Importance
The contract with CNHI marks a significant strategic milestone for Beamtree in Saudi Arabia. It was the subject of an international tender, highlighting the competitive value proposition of Beamtree's software. Saudi Arabia is undergoing major health system reforms, prioritizing the improvement of hospital data as a core driver of financial efficiency and clinical outcomes.
CNHI's decision to purchase PICQ software as its data audit technology paves the way for wider use of Beamtree technology in coding software sales to more than 400 hospitals in Saudi Arabia. Additionally, the new Integrated Coding Platform, which includes PICQ, will be launched into the Saudi Arabian market by Lean later this year.
International Expansion
The CNHI win also validates Beamtree's strategy for new international market entry. This model involves an initial non-recurrent audit of national data infrastructure leading to recurrent software subscription. This strategy was successfully deployed in the Republic of Ireland, where PICQ is now under recurrent contract.
Beamtree is currently engaging in regional data audits in the NHS in England and in British Columbia in Canada, targeting future recurrent software contracts following these projects. The new contract will deliver approximately $0.5 million in revenue in the remainder of FY25, subject to the usual rights of termination for non-performance.
The $1.4 million contract win in Saudi Arabia is a significant boost for Beamtree Holdings. This contract not only increases the company's recurring revenue but also strengthens its strategic position in a key international market. The successful partnership with Lean and the validation of Beamtree's software in an international tender highlight the company's competitive edge.
In the broader market, this announcement is likely to positively impact Beamtree's stock price as investors react to the increased revenue and strategic growth potential. The company's successful entry into the Saudi Arabian market could also pave the way for further international expansion, enhancing long-term investor confidence.
Investor Reaction:
Analysts are likely to react positively to this news, noting the strategic importance of the contract win and the potential for further international expansion. The partnership with Lean and the validation of Beamtree's technology in an international tender are seen as significant endorsements of the company's competitive position.
Conclusion:
Investors should monitor Beamtree's progress in implementing the new contract and its potential for further international expansion. The company's strategic growth in Saudi Arabia and other markets could provide significant long-term value for shareholders.