Mobile-health Network Solutions (Nasdaq: MNDR), a leading telehealth provider in the Asia-Pacific region, has announced a remarkable 77% increase in revenue for the fiscal year ending June 30, 2024. The company's revenue surged to $14.0 million from $7.9 million in the previous year, underscoring the escalating demand for telehealth services across Southeast Asia. This growth was predominantly fueled by a $6.0 million rise in the telemedicine and other services segment, complemented by a modest $0.1 million from the sale of medicine and medical devices.
Despite the impressive revenue growth, the company reported a net loss of $15.6 million for fiscal 2024, a significant increase from the $3.2 million loss recorded in fiscal 2023. This was largely due to a 316% year-over-year increase in operating expenses, totaling $13.9 million. A major component of these expenses was a $9.1 million non-cash, share-based compensation expense, related to the company's Employee Incentive Plan and payments for IPO-related and business development services. Additional factors contributing to the heightened operating expenses included a $3.0 million increase in selling, general, and administrative expenses, and a $1.6 million rise in salaries and benefits for staff instrumental in the company's IPO and revenue growth.
On a positive note, Mobile-health Network Solutions saw its gross profit climb by $1.4 million, or 132%, to $2.5 million, with the gross profit margin improving to 18.2% from 13.9% the previous year. Co-CEO Dr. Siaw Tung Yeng expressed optimism about the company's future, anticipating a sharp decline in non-cash, share-based compensation and IPO-related expenses in fiscal 2025, which is expected to significantly enhance the company's financial performance.
The company's expansion is reflective of the broader adoption of telehealth services in Southeast Asia. Its unique offering as an affordable, quality, 24/7 provider with access to a wide range of medical specialists has solidified its presence in Singapore and the wider region. Co-CEO Dr. Rachel Teoh Pui Pui highlighted the company's distinctive position in the market and its potential for accelerated growth in the coming years.
Mobile-health Network Solutions' achievements have earned it recognition as #41 in the Financial Times 2024 listing of 500 High-growth Asia-Pacific Companies. As the first Asia-Pacific telehealth provider to be listed in the US, the company is strategically positioned to leverage the increasing demand for telehealth services in the region. With the telehealth industry poised for further growth, Mobile-health Network Solutions' robust revenue performance and strategic market positioning suggest a pivotal role in the future of healthcare delivery in Southeast Asia, contingent on addressing its operational challenges.
