Carasent ASA ("Carasent" or the "Company) has concluded that a larger and more
attractive market can be reached with less investment by developing Webdoc for
new segments in Sweden instead of continuing development of Webdoc for Norway.
Therefore, intangible assets of about 40 MNOK will be written off in Q2 2023. At
the same time the company has concluded that running costs are too high and will
initiate a savings program with the aim of yearly savings of 35-40 MNOK,
primarily by reducing the number of consultants and full-time employees.
Carasent, through its leading product Webdoc, holds a strong position in the
Swedish market. In the last couple of years, a considerable part of the
Company's R&D capacity has been invested in adopting Webdoc for the Norwegian
market. The strategic review process executed during 2023 has concluded that
Webdoc's total addressable market ("TAM") in Sweden is roughly 800 MSEK with
current functionality. By investing 12 months of further development into
additional functionality for Webdoc in the Swedish market, the TAM increases
further by 500 MSEK to 1.3 BSEK. Looking at the Norwegian market, the necessary
development of Webdoc would require at least 3 years, unlocking a market
potential of 350 MSEK.
For new markets Carasent continues to develop Webdoc X for which the Company
sees great potential. The development of Webdoc X will gain from that the
Company now can focus on one large development project.
- "Webdoc is a well-known and popular EHR solution among private providers in
Sweden. By continuing to develop useful functionality for our current customers
and new segments, we will create a foundation for continued strong growth. The
TAM for Webdoc in Norway is too small to justify the development initiatives
required to take a competitive product to the market. Therefore, Carasent will
focus on developing Webdoc for Sweden. New markets are better served by Webdoc X
which is designed to be adaptable for new markets and which we continue to
develop." - says Daniel Öhman CEO of Carasent.
Key expansion opportunities for Webdoc in Sweden will be surgical care and
private healthcare in the Stockholm region, which together contribute with a TAM
of 500 MSEK. Webdoc is already well positioned in these markets with revenues of
approximately 40 MSEK. By building a surgical planning module, better
integration towards the EHR system used by region Stockholm and other functions
Webdoc will be even more competitive. This will also increase the value of the
product in current segments.
Carasent has also concluded that costs have grown too rapidly and that running
costs are too high. A cost savings program will therefore be initiated. Total
savings is expected to amount to 35-40 MNOK on a yearly basis, primarily related
to capital expenditures. The majority of savings comes from lowering the number
of employees and consultants. The total cost of realizing the savings program is
estimated to 4 MNOK in Q2 2023. Most of the savings will be realized by the end
of Q2 and all by the end of Q3.
- "Carasent holds a strong position in a growing and non-cyclical market but has
unfortunately grown too rapidly and it will take too long to grow into our
current cost base. We therefore have to carry out these cost savings. This is
not a lowering of our growth ambitions. It is about setting a clear focus and
improving efficiency." - says Daniel Öhman CEO of Carasent
Carasent will host an investor call about these changes today at 15.00. Please
use the following link for the webcast:
https://channel.royalcast.com/landingpage/hegnarmedia/20230424_3/
For further details please contact:
Daniel Öhman, CEO Tel: +46 70-855 37 07, or
Svein Martin Bjørnstad, CFO Tel: +47 979 69 493
