Dublin, Ireland - HealthBeacon, the Irish digital therapeutics company, saw a decline in its shares following a revision of its revenue guidance for 2023. The group cited delays in the rollout of its technology as the reason behind the decrease. Additionally, Chief Executive Jim Joyce will be stepping down from his position with immediate effect.
As of 0749 GMT, shares in Dublin were down by 11% or EUR0.17, reaching EUR1.41.
Adjusted Revenue Expectations
HealthBeacon now anticipates an exit annual recurring revenue of around 3.2 million euros ($3.4 million) for December. This figure is lower than the previous guidance of mid-teens expected by the end of the year. The company is attributing this revision to the challenges faced during the technology rollout.
Looking ahead, HealthBeacon is targeting an annual recurring revenue of approximately EUR17 million by the close of the fourth quarter of 2024.
Financial Measures and Funding Options
To mitigate financial strains, HealthBeacon is taking measures to decrease its monthly cash burn to approximately EUR700,000 by the end of 2023. The company aims to achieve cash break-even by the second quarter of 2025.
Furthermore, HealthBeacon revealed that it is evaluating funding options to cover the EUR11 million needed over the next 18 to 24 months. This financial support is crucial for delivering growth through 2024.
Interim Leadership Transition
As part of the executive changes, CEO Jim Joyce will step down from his position. However, he will remain involved with the company as an adviser and non-executive director. In the interim, non-executive director Rebecca Shanahan will take over leadership responsibilities.