(Alliance News) - Kooth PLC on Monday said it expects annual revenue to jump 65%, despite headwinds in its UK market.
The London-based digital mental health platform said that revenue in 2023 is expected to be about GBP33.3 million, up 65% from a year ago.
It explained that this excludes USD4 million of revenue billed in 2023 relating to revenue received from US contracts, which had been expected to be recognised in 2023, but will now be paid and recognised early this year.
In January, Kooth launched its digital mental health platform and mobile app, Soluna, in California.
It also said that it is finalising discussions with the State of Pennsylvania regarding an extension of its current service contract, which began as a pilot programme in October 2022.
For the UK market, Kooth said it saw revenue growth for 2023.
However, it expects headwinds to remain "in the near term." It explained that this reflects "a focus on NHS cost saving and the ongoing acute care backlog".
Chief Executive Officer Tim Barker said: "2023 was a year of significant progress for Kooth, underlined by our largest contract win with the State of California. Alongside our work in Pennsylvania, Kooth is now a leader in the important US digital mental health market and a provider of choice for the provision of services to children and young people. This momentum, combined with our strong financial performance and our ability to generate recurring revenue, leaves us well placed for further progress in 2024."
Kooth plans on announcing its full-year results in March.
Shares in Kooth were down 2.3% to 286.28 pence each in London on Monday morning.
By Sophie Rose, Alliance News senior reporter
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Kooth Plc (KOO)