Physitrack PLC

STO:PTRK

Earnings Call Transcript 2022-Q2

[Henrik Molin, executive]

Good morning, everybody. Welcome to Physitrack's Q2 webcast. My name is Henrik Molin, and I'm the CEO and Co-Founder of Physitrack. I'm joined today by my CFO, Charlotte Goodwin. And we have a little exciting presentation for you today. You got a little taste for the excitement that we feel over being Physitrack right now with that little introduction video from Champion Health that we saw. It's a very, very significant move for Champion with the integration of the care brands that the group acquired over the last few months and it's a very exciting journey ahead.

Now I'll kick this off by pointing out a few headline KPIs and some of the key points in our development over the last quarter. So just top row there, 62% year revenue growth since last year, and that's including acquisitions, more importantly, because we are in the game of generating organic revenue growth with margins, and we've had a 31% pro forma revenue growth in this first 6 months. And this is very, very exciting because things are moving very much in the right direction and according to plan and with the promises made to investors in relation to the IPO, which is now a year and 2 months old.

Now EUR 1.7 million of adjusted EBITDA year-to-date, 40% increase. We're very happy about that. And then let me point out a few of the highlights I'll go into details in the coming slides. And something to point out just here to begin with because we are having a very significant SaaS-like revenue, subscription revenue as well in the Virtual Wellness business line. SaaS is not just isolated to the products known as Physitrack and Physiotools, et cetera. So we've actually renamed the -- what was known as the SaaS business line to the Lifecare Technology business line because we actually touch lives and we help our customers change and improve lives of their patients and their employees and everybody that's involved in using the Physitrack product. So just a heads up on that.

But on the left side, at the bottom there, the Virtual Wellness business line, some very exciting movements there, and you've got a little taste for that in the video from Champion Health in the beginning. So the integration of the first care pathway into Champion Health was a big thing in the quarter, alongside what has been waited a long time, I think, from our investors and also from big multinational customers, the integration of our wellness brands into one brand that is now Champion Health, making us more competitive, larger as a global player, and that obviously is a more logical play to understand on the equity side of things with the story. There are plans to integrate more of these care pathways in the coming weeks, months and quarters. And we will see emotional well-being and also very, very exciting, the biometric-first coaching pieces find its way into the subscription ecosystem, which is incredibly successful known as Champion Health.

On the right side there, what was formerly known as the SaaS business line, name known as the Lifecare business line. We continue to develop, accelerate, innovate, and we now have everything known for the -- as is the previous SaaS business in the Lifecare division and that we are in the process of renaming Physiotools to Physitrack, the Finnish -- our Finnish subsidiary, just to make that a little bit more logical. And also you can see what the long-term play here is in terms of platform integration, very, very exciting and important.

We saw nice movement there on revenue generation, which we'll walk you through in the next slides here, but notable was that we had a new subscription model here for PT Courses, and that's accelerating very, very nicely, and this is something that's building up something that over time will be an incredibly attractive subscription bundle, especially in the U.S. market. So I'll give you a little bit more detail on that in the coming slides. I'm now going to spend 10 to 15 minutes on going through the different areas of this and Charlotte will as well contribute here, and then we'll open up for questions. Questions you can put in the chat field, which is on your screen. We unfortunately can't open up for telephone calls. And now hopefully, we can reinstate that in the future.

Now let's just kick things off with the business updates. And of course, as I indicated here in my introduction, Lifecare, which is the SaaS piece that we had described previously, the -- it's now known as Lifecare, 75% of the business, looking at Virtual Wellness. This is now known as Champion Health and with an integration of the care brands that we have and now with subsidiaries in the U.K., the Nordics, Germany, very exciting markets, very exciting moves there.

It's worth pointing out a little bit of the state of play. And you can see that on the right here, the -- with the size of the group, so EUR 12.2 million run rate with Wellness and Champion Health making up EUR 3.4 million and Physitrack making up EUR 8.8 million. At this point in time, the journey continues. We're very excited about what the future will bring and what's going to add to the right side of this graph.

A quick little reminder on Lifecare and what that looks like now, well diversified book of business and the product range, the heart of it is the second box there from the left exercise prescription and education, which is fronted by the Physitrack and Physiotools brands. But of course, as you know, we are not a one-trick pony. We have a lot of exciting different type of products that we offer our customers, not to be on the enterprise side, but these are also some things that are coming down a little bit in terms of the size of our customer base for the more advanced products like what you see on the very left there of the chart with patient onboarding and triage starting to make up a very, very interesting part of the book of business with our customer range, which is very attractive now also for midsized customers.

Now you can also note that we've added PT Courses on the right just to emphasize that this is a bundle play for us. There's a lot of need for continuing education, the need to renew licenses, if you are physiotherapists, occupational therapies, et cetera, and to include that in a subscription bundle from our side, it's a very interesting strategic play notably for the U.S. market, but also something that we can expand globally as well.

In terms of Lifecare, looking at interesting things that we've done, sold subscriber growth continues. Revenue growth on the back of new subscribers, revenue growth on the back of existing subscribers continues to grow, very buoyant market, a lot of things going on for us, and we're very happy that the enhancements and the innovation continues and a notable event in this quarter that we've seen is the formation of our first in-house engineering team. We previously third parties for our engineering efforts, and I'm happy to say that we have very successfully migrated that effort in-house. And now we have a very capable team of linears in-house that has come from some very, very reputable, big brand companies.

And so we're very excited about what that's going to do to our innovation, the stability of the platform and our ability to move forward. And I should say, because we are quite good at this with relatively speaking, limited investments in the tech platform. It is a mature, stable platform that we continue to reap very, very nice revenue and profit benefits from without necessarily have to invest an incredible amount of money into that. And the lifting that development effort in-house is a big milestone in that direction.

Now if you look at the catalog and the content, which is at the heart of our business, we continue to invest in that, and we continue to build the library, even though we have the biggest exercise library for clinical exercises in the world at this point, with over 15,000 exercises, our work is never done. So we keep enhancing and innovating, which is great to see. And looking there at the bottom left, we are finding ways to be interesting to our target market, not just in terms of really advanced bells and whistles adding to the platform.

Sometimes the best innovation is simplifying. And in some markets, and this is -- I think, will be a very interesting play for the emerging markets, but also in places like Sweden and public health care focused rehab markets, the ability to actually use our system without having to download an app or to remember your iTunes password, I always forget mine. And the ability to just touch lives by our customers. This is very, very important just to make that journey as simple as possible. So we're seeing some simplifications there, which I think will have a nice impact.

And of course, the people are more and more time constrained out there. You compete with a lot of attention in your phones and on your iPads and your web pages. And so we try to make things the patient journey as smooth and fast as possible, so multiple thumbnails and some ability like a Snapshot plans being able to figure out what it is that you need to do with your exercises without having to go in and play a long video every single time that you do it, for example, that's quite an important part of the innovation journey. And of course, as I mentioned, we have added some great exercises in neurology and in pediatrics in this quarter and more to come.

Now let's take a look at the wellness side of things. And just as a reminder, this is one of the reasons we wanted to go there. Of course, we have a massive total addressable market shift here for us in this. But of course, we are in a holistic world where prevention and wellness go hand-in-hand with trying to limit the need for rehabilitation and for fixing things that perhaps go wrong physically and emotionally speaking. So a big, big driver for us is, of course, that, but just looking at the market that we now have access to with this fantastic Champion Health product now in 3 big geographical areas, it is very, very significant for us.

And just as a reminder, you've seen this before, but having that holistic product, making sure that you have everything that you need as an employee, both in terms of your urge to be healthy or happy are more productive in terms of nice content like the Netflix or well-being approach that Champion has had, but opening this up to be able to take care of people when they have emotional well-being issues or they have musculoskeletal issues. You will see more of this. You're going to see more of the advanced tools that you have to support prevention and with, among other things, this -- the biometric testing that we have as a part of the Champion Health, the Nordic team that they developed in conjunction with Nightingale Health. I'll get to that in a moment.

But very, very excited about the one wellness brand. You saw that 1-minute video there in the beginning. This is very important. As we speak to very big corporates, it's great for them to know that we're not just in one geography. We're not just in one place, and we have a very, very nice holistic product with many components that have been contributed to by a lot of smart people in several geos. And so this is making some significant waves in -- among employers in several of these geos and the very significant growth that we have seen with the Champion Health platform, now clocking in at over 2 million users, we will see that continue very dramatically in the coming months and quarters. And so that's making us very, very happy.

Just looking at the first care escalation, which we announced previously, that first opening up of the care pathways into Champion Health have just started that journey and right in line with what we have envisioned and communicated in the past with creating a fantastic holistic wellness product that also can cater to intervention and treatment inside of the same ecosystem.

And I mentioned Nightingale, this was a big one. It's quite important that we can virtualize and we can create this scalability for notably the biometric first testing piece, which is an important part of Champion Health Nordic and will continue to play a very important role in both the U.K. and in Germany as we get access to more and more of this technology and we can roll that out.

So some very, very promising early results for the rollout that we had in Sweden here of the Nightingale-powered biometric coaching product and more to come in Germany, more to come in the U.K. as well. And that concludes my little presentation on where we are with the business. And I will now hand over to Charlotte Goodwin, Physitrack's CFO. Over to you, Charlotte.

[Charlotte Goodwin, executive]

Thank you very much, Henrik. So if we move to the next slide, I'll start off here with an overview of the key financials for the 6 months ended June 2022. In this period, revenue has increased 62% to EUR 5.6 million from EUR 3.5 million in the prior year. Roughly half of this growth is due to the acquisitions of Fysiotest, PT Courses, Wellnow and Champion Health. On a pro forma basis, with the revenue from these entities included in the prior year comparators, revenue increased 31%, which is in line with our medium-term targets.

In the quarter, the Physitrack Group has delivered adjusted EBITDA of EUR 1.7 million, up 40% from the prior year. And this resulted in adjusted EBITDA margins of 29% for the 6-month period, down slightly from 34% in the prior year. This fall represents the well-signaled impact of the Virtual Wellness acquisitions on the group's margin.

Operating cash flow has fallen slightly due to a shift in working capital positions, and it's pleasing to see our efforts on increasing customer retention, yielding results. Average monthly churn for the period continues to fall and is it now 1.3% in the quarter, down from 1.8% in the prior year.

Moving to the next slide. Focusing on revenue now. On the left here, you can see group revenue by quarter, both on an absolute and pro forma basis. On the right-hand side, we can see revenue split by Lifecare Technology and Virtual Wellness. In Lifecare Tech, which currently makes up around 3/4 of our revenue, the growth is driven by increasing user numbers, the price rise implemented in June 2022 and strong levels of upsells of notably our custom app product. Our June 2022 price rise impacting self-serve Physitrack customers with the largest absolute price increase we have levered to date. It was pleasing to see that we did not experience an increase in churn in response to this, demonstrating the value that customers see in our product.

Price increases on our enterprise customers and the Physiotools customers, who are mainly built annually will be rolled out over the next 12 months. The Virtual Wellness business, which currently makes up the remaining 1/4 of the group's revenue has experienced strong year-on-year pro forma revenue growth. It's also pleasing to note that an increasingly large proportion of this division is now made up of subscription revenue, offering a more stable revenue growth profile and a move towards increasing margins.

Moving to the next slide. Moving to profit. On the left-hand side here, we have EBITDA for the 6 period. Last year, in H1, EBITDA was a loss of EUR 0.2 million, with adjusting items of EUR 1.4 million stripped out, adjusted EBITDA was EUR 1.2 million. In the current year, EBITDA has risen to EUR 0.5 million. And within this, there are EUR 1.2 million of non-recurring adjusting items, primarily relating to the acquisition of PT Courses, Wellnow and Champion Health by a working capital movement of EUR 0.4 million.

Intangible asset additions were EUR 2.1 million in the 6 months and consisted of development of the Lifecare Tech platform and investment in the Virtual Wellness ecosystem. Past the previously signaled spend on billed fees for internal systems such as Chargebee, Pendo and NetSuite. There was acquisition spend in the period of EUR 7.6 million in relation to PT Courses, Wellnow and Champion Health, plus related M&A and integration costs of EUR 0.8 million and also EUR 0.1 million move on foreign exchange on our cash balances. This leaves the group exiting the quarter with a cash balance of EUR 4.1 million.

We announced on the 6th of May in conjunction with the acquisition of Champion Health that we're intending to put in place a debt facility in order to fund future growth. On the 27th of July 2022, we entered into a GBP5 million revolving credit facility with a 3-year term. Interest margins will be between 2.5% and 4%, depending on our level of leverage.

Turning to the next slide. Now moving to the group's balance sheet. The first line here includes the internally-developed technology platform as well as intangible assets and goodwill arising on acquisitions. This figure now includes the accounting for the Champion Health acquisition. Cash we've already covered, and trading receivables have increased due to the recent acquisitions, particularly Champion Health, which builds upfront for 1- to 3-year contracts and is expanding rapidly as well as the relative increase of our customer base in the Lifecare Tech division and the sales of custom apps in the quarter.

Deferred revenue is primarily generated by Physiotools and Champion Health in particular [Technical Difficulty] 12 months or longer contracts. Deferred tax arises on the intangible asset balance is recognized on acquisition and will unwind over the period of the amortization of these assets. The third consideration relates to the Rehabplus, Fysiotest, Wellnow and Champion Health acquisitions.

That's all for me. So I'll pass you back to Henrik.

[Henrik Molin, executive]

Thank you, Charlotte. I will spend just a few more seconds on reiterating what the growth plan and the strategy are. And on the left-hand side, the growth dynamics, we are in a favorable macro environment. I keep saying that, but looking at what's going on in the world, we are under high stress because of inflation, because of rising interest rates. A lot of companies are under pressure, unfortunately, to do nice things for the employees and it's never -- that's not a bad thing to do that, but they're under more pressure than they perhaps would like. And I think that we can come in and really help there with the Champion Health platform and some very significant initiative. It provides a relatively low cost way of doing some nice things in a stressed environment. So it is quite favorable for us, even though things are tough.

Looking at the Lifecare side of things, there is, of course, the increased digitization. I spoke a little bit about the innovation initiatives that are supporting that. But of course, there is a lot of movement in the healthcare industry. There's a lot of rehabilitation. There's a lot of things going on to support people that need help at this point in time. And we're doing what we can to help there. It is something that is favorable for our revenue position here. And that's something that's creating quite positive momentum for us.

Looking at the middle there, organic growth levers. And of course, this is the most important part of what we do is to make sure that we build, we innovate and we accelerate based on technology that we have built ourselves, technology that we have acquired with the fantastic teams that make Physitrack into a great place to be every single day in terms of working for us and also catering to our customers with the needs that they have. There's a lot going on there in terms of the next moves and capturing the next wave of digitization in the healthcare industry and an employee well-being, of course.

On the right side there, M&A is at the heart of what we do. We have a very nice track record there. We have some incredibly gifted, talented people that have put that strategy together, executed very well with some very dynamic entrepreneurs that have come on board and have helped us develop what is now a very significant effort in the well-being space, of which you saw an example there in the intro clip for Champion Health. And what you have seen there is just very much not a buy-and-hold strategy. It is a buy and bill. It is a buy and accelerate, and it's something that's there to help organic growth going forward. And I'm happy to say that this fantastic team on the wellness side, although they come from several different individual companies originally, they are working together like a super strong team and they're lifting that strategy and that division are very, very nicely together. And that's the whole point of our M&A strategy.

Now in terms of activity going forward, we are seeing a lot of opportunities. We are evaluating things on an ongoing basis. And we are always on the lookout for great ideas and great initiatives now in the next period going forward, you can probably expect us to not execute a new transaction. You should never say never, but the work that we are doing organically and which is boosting our top line very, very nicely. This is keeping us quite busy and we're quite happy with the results of that. So that's likely to be more of a focus than pushing through another M&A deal. But it is -- as I now reiterate, it is at the heart of what we do and that we are very interested in a lot of smart people that come our way through the M&A pipeline.

So with that said, reiterating our financial goals, we have no reason to lower the expectations here in terms of top line growth, as you've seen after -- I think this is the sixth report as a listed company. We have no plans to change guidance there in terms of top line growth. If you look at the profit margins, so in the medium term, that means there's still a couple of years out, but we are on a journey to expand margins via organic growth, via synergies and via the fantastic acceleration that we see both in Lifecare and Wellness and so 40% to 45%, which is lower than what we are used to running the business at, if you look at it from very, very early on. And so we very much reiterate that medium-term and margin expansion goal of 40%, 45%.

And lastly, on the right side, we like dividends, we like distributions, we like saying thank you to our shareholders for their patience and for their willingness to support this amazing journey, but cash is more likely to be invested back into the business to help fuel growth and some of the amazing things that our team is doing on a daily basis to make this into a fantastic story.

So that concludes the presentation, and now we're going to hop over to the Q&A. And so unfortunately, you're going to have to make do with my voice a little bit longer because I'll be reading out the questions in the chat that's come in, and then we'll answer them dynamically as we go through this. Hopefully, we can open up phone questions in the near future.

[Henrik Molin, executive]

Now let's start here with a question, could you elaborate on the performance of the 2 more recent acquisitions that seem to be showing negative growth, Fysiotest and PT Courses? What is needed to accelerate growth of these acquisitions.

And so it's a 2-part question. And Charlotte, you can focus on the second one, while I just answer the first part there.

Now we are retooling PT Courses into a subscription business. And so what happens is when you -- it's mostly in the revenue recognition level, if you sell things al a carte, you get the revenue recognition with everything upfront. As you sell yearly subscriptions, you define the subscription -- I mean, your period over a 12-month period and then that's a natural technical effect out of that moment. So that explains most of what we see there on the PT Courses side of things.

Fysiotest, we are rolling out the virtual version of their product, which is based on in-person biometric-led coaching. And this is something with the Nightingale agreement, which will take some time to ramp. So you see some -- you see a little bit of a slump based on that. Fysiotest also in 2021 had a very buoyant development in terms of the risk management side of the business, which included COVID testing and management coaching and things like that.

And that naturally fell away from the P&L, but this is something that will be rebuilt and replaced with a lot of this virtual version of what they do, which we're incredibly excited about because it actually opens up for Fysiotest to reach their customers wherever they are with the ability to do blood test at home and do remote coaching using Physitrack's excellent telehealth technology. So more to come on that front. We're very excited about what's in the pipeline there.

Now question number 2, could we possibly get some insight in terms of your view on that Rule of 40 looking at cash flow metrics seems to be decelerating. So over to you, Charlotte for that one.

[Charlotte Goodwin, executive]

Yes, of course. So I mean the Rule of 40, we're still looking very strong. Revenue growth even on a pro forma basis of over 30% and our EBITDA margins once you pull out the acquisition costs of 30% in the quarter, it's actually slightly up on the previous quarter, slightly down on last year, but that was expected with the change in mix of revenue towards Virtual Wellness. So that being said, you can always do better. So we are pushing towards margin expansion, and we'll see that with high-margin products coming into the Wellness division and more subscription products, meaning that as time goes on, there's less effort having to go into sales as those contracts follow and we'll see those margins expand as always has been part of the strategy.

On the cash flow metrics with some of these businesses building up front and growing rapidly, you see a bit of a lag effect there on the working capital, but we're working hard on that. And we're pleased with where we are and we expect all those the margin expansions to feed in.

[Henrik Molin, executive]

Thank you, Charlotte. Continuing here. Can you elaborate on the organic ARR development in the quarter? And what are your expectations going forward?

Strong ARR development, both on Lifecare and on Wellness with the latter, we are seeing very explosive growth for Champion Health with our platform, growing incredibly well since the acquisition and so subscription revenue. We're also introducing more subscription-type products, and this is something that you see on what was previously known as Wellnow. Our Champion Health Germany saw very nice growth there as well and accelerates very rapidly as companies make nice investments into wellness efforts to support their staff. So very buoyant there.

And of course, we continue to see nice moves on the Lifecare side of things as well. So there is a growing need for our products in both existing and new markets and both in terms of the ecosystem, which grew according to plan in this quarter and, of course, the additional enhancements that you can get in terms of the custom apps, in terms of the data repository products, and these are things that carry both upfront revenue streams and ARR. And so as you purchase a custom app from us, you also have an ongoing maintenance journey with us that we get compensated from with the recurring revenue. That's a good answer there.

Additionally, and we have a couple of questions there on churn. On the churn rate, we see a continued rolling 12-month improvement, indeed, we do. Can you quantify or give additional color on what rate you find reasonable and satisfactory in the mid- to long term?

Well, so I often get the question, are you happy with the numbers, are you happy with performance? And if I get the question, are you happy with churn, I would say never happy with churn. Are you happy with the level of churn? No, I'm not happy with that. I am happy with the very strong trend that we've seen there, thanks to a lot of initiatives, especially in our customer value task force, which is a data-driven effort that looks at user activity on the platform that looks at things happening as well in the conversion funnel that can draw some conclusions as to how we should prioritize features, how we should educate our users to get the best use out of the platform. And this has proven to have a really nice effect, notably the ease at which you can find exercises in the world's biggest exercise library, 15,000 exercises.

Now I am going to be careful with setting a level for what makes me happy in terms of churn, but we are still moving that needle on churn. We're moving it lower, and we will be happy to report back in the coming quarter on that sustained trend if we continue to do things right with this fantastic effort in the customer value task force.

Now the following question here, how should we interpret the speed increase in OpEx, excluding D&A? Is it a result in opportunistic investments? Or do you see cost wage inflation hitting you?

So I'll start on the question and maybe Charlotte can chime in. We see very limited impact from cost wage inflation. We have, among other things, that you saw, we recruited a very substantial in-house development team from some very, very interesting places. That's a recent position to what we did. That's actually a cost replacement. And at the same time, it is a hedge or for a lack of a better word, to increases from -- in costs from third-party providers. And so my guess is, if we were to cap the third-party development effort, we probably would have seen an effect of wage inflation hitting that, but because that's a recent hire of that quite big team. It's something that's sort of capping that increased risk in a very, very nice way.

As far as the rest of the business is concerned, we have seen some price increases on our end as well because we are as well subscribers to SaaS products like Slack and some of the components on -- in the Physitrack side that we use for measuring things and for enhancing things, and those have also been subject to price increases. But we've been quite savvy and this is something that's part of our DNA. We are quite good at negotiating long contracts. We are good at negotiating grandfathering in price raises. And whenever we get faced with things like that, we're just -- we are quite good in pushing those out into the future. So far, very, very limited impact on that.

Now in terms of steep increase in OpEx ex D&A, I probably wouldn't categorize it as steep on an absolute basis. But in terms of what that comes from, indeed, you have to be opportunistic in this type of market. There are some very, very smart people out there that are looking for new homes in terms of their future careers, some very, very intelligent driven people that have because they might have been working for a company that didn't have this high-growth, high-margin philosophy in terms of running the business and had to let go off staff. Some of those people have found their way to us, which has really, really delighted me, some very, very clever people coming on board, helping us on this journey and to achieve our mission here. And so that explains -- that explains most of that.

So as we sometimes say, you can't starve your way to grow. Sometimes you have to invest in exciting initiatives, in exciting people to just help you on that journey. And luckily, we can do so with a padding of quite nice margins to begin with.

Now following up here, comments regarding continued weakness in Fysiotest versus really strong growth in Wellnow.

I think I explained that with the move that we see in the product offering of what is previously known as Fysiotest and the introduction of more scalable, more potentially profitable technology and products in terms of that Nordic presence that we have. That's also finding its way into Germany next and along the way as well in the U.K. as Nightingale makes that remote connecting piece possible for us. So profitability is going to increase along with the top line as well. These are higher-margin products, which are quite interesting.

In terms of Wellnow, fantastic job by Alex and Enno in the last couple of quarters, that business has increased several times actually in terms of the run rate that they have had coming into it. And in addition to that, they have had a focus on transforming their business model as much as possible towards a subscription model, which is working incredibly well as well. And so we have high hopes that, that success continues with the existing team and with the existing product, but also adding some of these high-margin products that are set to lift the overall profitability of the group quite nicely. So I hope that's -- that's a good answer to that.

Now last question I have here, can we expect churn decreasing?

Well, as we said -- as I said, we are never happy. I'm never happy to see customers leave. I think if you look at our churn compared to what's the average in B2B businesses at this cruising altitude, meaning it's relatively cheap products with quite flexible contract terms. We are extremely low in that respect at about 1.3%. It is a strong negative trend on the churn coming down there in terms of the number, the efforts that we see and that we keep pushing every single day, they are quite significant. So yes, I do believe that we can expect churn decreasing or I'm going to be even more unhappy about life and about where we are.

Can we maybe see any acquisition during H2?

I would find that unlikely. Stranger things have happened. We have been quite opportunistic. We have a really, really strong M&A effort here. We have some smart people working on this that can move fast. But I think that we have more important things to do right now in terms of boosting organic growth. So that's where you're likely to see the focus on. We don't think that this is an environment where you should be issuing shares and raising more capital to fund M&A or organic growth or anything in between. And so we -- again, from that perspective, it's very unlikely that you see something being executed. And thus, the risk of a cap raise from our side is extremely low. And of course, Charlotte told us about the very nice credit line there that we have in place, the first in the history of the company, and that's more than enough to support this great organic growth that we see without the need to raise any capital. So that's just a side bar on that.

Any specific country that is growing under rest of the world?

We're seeing some nice moves set in Asia. We continue to see some interesting things happening actually in Africa, and they're early days for some of these things, but the innovation that we're seeing, which sometimes is simplifying, as I explained, so I don't have to remember my iTunes password to get my exercise programs, that's really supporting the move there to capture the next wave of digitization. So a lot of interesting things.

Now I had a question here. Did you say that Champion have 2 million users?

Yes, indeed, and you heard that perhaps on the video as well that came on board very, very strong end user base there. These are employees that are on the platform. And I've asked to quantify how many of them can we expect to cross-sell to. Now remember, this is -- these are employees. And so they are connected to the individual companies that have invested in Champion Health to support the well-being of their employees. So of course, there are enhancements that you can offer these customers. And so one of the initiatives that we saw here was adding the addition of care escalation for musculoskeletal care onto the platform, and that's something that comes as a premium package.

And of course, Champion in itself without getting into detail, they have different packages. And so there are enhancements that you can -- that you can use to expand revenue and to solve different type of challenges for your customers. And so actually, all the customers in our user base at the moment, they are U.K.-based, our international teams, of course, but they are U.K.-based -- and for the U.K. teams, we are able to provide that care piece, which is powered by Rehabplus, formerly known as Rehabplus, but Champion Health care there in the U.K. And so the opportunity is very, very significant across the board. And of course, it's nice to have that impact, too many users. That's very significant and it keeps going at quite a dramatic pace at this point in time.

All right, I don't see any more questions coming into the chat. And so unless there's anything more coming in, I'd like to thank everybody for participating today. Thank you for following the Physitrack journey. Thank you for being loyal employees and partners and investors. And I look forward to speaking to you again soon. Thank you. Have a great day.