Heeding the old adage “he who fails to plan, plans to fail”, digital health company 1st Group (ASX: 1ST) has shared their growth plans for FY22 with the market.
With several brands already under their belt, the Company is building integrated platforms for online search and appointment booking services. Their flagship product, MyHealth1st is a health services platform that facilitates appointment booking for a wide range of healthcare providers. 1st Group also owns PetYeti, a platform that functions similarly to MyHealth1st but designed for pets and veterinarians, and GoBookings, a tailored scheduling platform.
The integrated digital strategy outlined in their FY22 Roadmap covers three key areas through which growth initiatives will be focused: channel partnerships, digital strategy and product development.
Widening the scope of their MyHealth1st platform, the Company intends on expanding its reach in allied health and specialist healthcare providers. A marketing campaign is being planned to target and onboard over 500 new practices by December 2021.
The Company has also made significant investment into BNPL technology with 200 practices offering flexible payment options through Openpay and Afterpay, with Latitude Pay next in line to go live by the end of the first quarter. Revenue growth from these partnerships is expected to materialise in the second quarter.
September will bring a refresh to the MyHealth1st platform with a significant upgrade planned. The platform has been overhauled to improve search functionality and booking experience, a culmination of 18 months of R&D work. The Company is hoping that the renewed site will deliver a better online experience for users and deliver increased website traffic leading to potential revenue opportunities through advertising spend to attract more clinics.
The improved platform will also support revenue growth by supporting the work being undertaken with BNPL partners, hospitals and private health insurers like Medibank Private where the platform is being integrated into their websites.
1st Group also reflects on the performance of previous products brought to market, noting that not all new product launches were as successful as they’d originally hoped. The new MyHealth1st platform represents a more “mature approach to product development and evolution”. Slow and steady wins the race.
Remaining accountable to their shareholders,clients and users, the Company has also provided key performance measures: annual recurring revenue, annualised churn rate (of cancelled customer contracts) and Lifetime Value to Customer Acquisition cost ratio.
Klaus Bartosch, Co-Founder and Managing Director said: “We have a busy year ahead and, importantly, a year to mature the range of strategic channel partnerships we have secured to drive accelerated growth and leadership in the allied and specialist markets. Jointly with our partners we are engaging over 1,000 healthcare businesses to bring them onto the MyHealth1st platform. We expect that by December most joint marketing programs will be in full flight.”
Bartosch also mentioned the recent reshuffle within multiple arms of the Company, saying: “There have also been significant changes to the Company’s operations over recent weeks, including a complete change of the Company’s technical leadership team, marketing team and related processes and procedures. These changes are necessary for improved performance as we prepare for our next phase of growth.”
Providing a clear and well defined strategy hasn’t had it’s intended effect on improving investor confidence with the share price falling 3% since open, continuing the downtrend that has been plaguing the stock for almost a month now.
Samantha Freidin is a business journalist at Emerald Financial whilst also completing a Masters of Marketing and Digital Communications at Monash University.
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