Total Brain outlines growth pathway to emerge from COVID-19, shares jump
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Health monitoring platform Total Brain (ASX:TTB) says revenue momentum is growing after a tumultuous 2020.
TTB said the COVID-19 pandemic caused some operational chaos and nine-month delays in some of its key sales pipelines.
However, it still managed to book annual recurring revenues (ARR) of $4m through the end of December — a gain of 46 per cent from the prior year.
Following this morning’s update, the stock jumped by around 20 per cent to 35c.
TTB was one of the companies flagged by the investment team at Raas as one of the ASX small caps with significant 2021 upside, as part of Stockhead’s year-end expert roundup.
In this morning’s update, the company flagged that it’s about to close a deal for the deployment of its Mental Fitness 360 platform with a large US government agency, in conjunction with IBM.
The initial rollout will be for around 25,000 users, and will generate around $570k in ARR, Total Brain said.
The contract also includes provisions to scale up the offering to around 200,000 users, which in a blue-sky scenario would flow through to around $3.5m in ARR.
Following a number of investments in the 2020 year, TTB said it’s now positioned to materially boost top-line revenues while keeping its cost base steady.
The company flagged a pipeline of $8.9m in ARR contracts across three channels — Corporate, Affinity, and Clinical.
Based in Sydney and San Francisco, TTB’s tech offering is a SaaS platform that allows users to scientifically measure their brain capacity while also “managing the risk of common mental conditions”.
The platform aims to improve productivity and mental wellbeing among workers, leading to improved economic outcomes and lower healthcare costs.
TTB says its platform is based on 18 years of medical research, with a resulting platform which measures “the 12 brain capacities that define mental health, and screen for the risk of 7 mental health conditions”.
It provides an app for employees to monitor their mental health, as well as a platform that provides clinical health feedback to large corporations and government departments.
In the wake of the March 2020 selloff, shares in TTB slumped from around 80c to below 30c, before trading close to that range for the rest of the year.