Earnings call transcript: Aiforia Technologies Q2 2025 sees revenue growth amid stock decline

Aiforia Technologies Oyj reported its Q2 2025 earnings, showcasing a modest revenue growth of 2% to €1.4 million. Despite the positive financial performance, the company’s stock fell by 11.95%, closing at €2.80. According to InvestingPro data, the stock is trading near its 52-week low, with a concerning gross profit margin of -164.24%. The decline in stock price reflects investor concerns over the company’s ongoing losses and future guidance, despite a healthy order book and strategic expansions. InvestingPro analysis indicates the stock is currently trading close to its Fair Value.

Key Takeaways

• Revenue increased by 2% to €1.4 million.
• Order book expanded significantly by 58% to €5.1 million.
• Stock price dropped by 11.95% following the earnings announcement.
• Continued investment in R&D, with expenditures rising to €3.7 million.

Company Performance

Aiforia Technologies showed resilience in Q2 2025, with revenue growth and a substantial increase in its order book. The company emphasized its strategic focus on expanding its clinical business, which grew by 60%. However, the improvement in EBITDA and EBIT, despite remaining negative, indicates ongoing challenges in achieving profitability. The company also reduced its workforce to 69 employees, aligning with its focus on operational efficiency and market expansion.

Financial Highlights

• Revenue: €1.4 million, a 2% increase from the previous year.
• Order Book: €5.1 million, a 58% growth.
• EBITDA: Improved to -€3 million.
• EBIT: Improved to -€5.4 million.
• Cash Position: €11.9 million.
• R&D Investment: €3.7 million, up by €1 million from last year.

Outlook & Guidance

Aiforia Technologies is focusing on European market expansion and enhancing its clinical offerings. The company is exploring opportunities in pharma companion diagnostics and anticipates potential U.S. market investments post-2030. The revenue forecast for FY2025 is €5.47 million, with a slight increase to €8.85 million projected for FY2026. However, the EPS forecasts remain negative for the upcoming fiscal years.

Executive Commentary

CEO Jukka Tapalenen stated, "We have been able to build the biggest and best portfolio in that market," highlighting the company’s leadership in medical AI solutions. CFO Willy Matty emphasized the company’s data-centric approach, saying, "We are a data company." Tapalenen also mentioned the company’s readiness to scale up its operations, reflecting confidence in future growth prospects.

Risks and Challenges

• Ongoing negative earnings and the challenge of achieving profitability.
• Market saturation and competitive pressures in the medical AI sector.
• Risks associated with delayed revenue recognition in the second half of the year.
• Potential regulatory challenges, particularly with the FDA application process.
• Economic uncertainties that could impact public funding and market expansion.

Aiforia Technologies remains committed to its long-term growth strategy, despite the immediate market reaction. The company aims to leverage its strong order book and innovative product offerings to navigate the challenges ahead and capitalize on emerging opportunities in the healthcare sector.

Full transcript - Aiforia Technologies Oyj (AIFORIA) Q2 2025:

Jukka Tapalenen, CEO, iForia: Yes. Good afternoon. My name is Juukka Tapalenen, I’m Foria’s CEO, and welcome everybody to first half earnings announcement. Today, so I’m going to give some highlights what happened in the first six months and Willy Matty, our CFO, will go through the numbers and then I will highlight a little bit our strategy going forward. But let’s get started.

The first half of the year, so it was in many ways, I think, really, really good. So we have some new closings on the customer side, and I will cover this in a later part of the presentation. So our order book grew 58% comparing to last year’s situation. So and on the revenue side, we were flat, but there are some good reasons why that happened. But all in all, on the sales side, we got a good success, and we were progressing as planned on getting those kind of first clinical customers on so that we can use as a reference and we can scale with those customers and then as a showcase for the others.

So significant amount of those clinical agreements done. But what was I think even more important than winning those customers so was the regulation part. Because as we are dealing mainly now on clinical side, of course, we have research customers, but the focus where we think that, okay, commercial perspective, the business is growing is the clinical. And there you need a lot of different kind of certifications related to security. And then we have this medical device category where we have our solutions.

So we got the IVDR. That’s the new regulation for Europe. So it used to be CE IVD, and it’s still CE IVD, but under the IVDR regulation. So we got a significant progress on that side, because that actually the important part, so that we’ve been able to build the biggest portfolio of CE IVD marked solutions in this marketplace. And that gives us a good opportunity to move forward.

And of course, so we are not alone. So this is kind of an interesting marketplace. So you have scanner vendors, you have the laboratory information system vendors, image management vendors, AR vendors and then you have kind of a reselling partner. So we’ve been moving forward on all of these fronts and strengthening the partnerships and trying to find new ways to the market with those companies. Just wanted to show this because if we look at the history and not going back to the ten years when the company was set up, but and building the core of the technology, getting the research customers.

But in 2020, so we decided to go on a clinical side because of the commercial reasons and multiple other reasons. So there’s a huge need for kind of additional resources and quality improvements. And of course, all of those things that AI can provide on kind of providing things that the human eye cannot do. But anyhow, so 2020, we decided to go to on a clinical market. ’twenty one, we won the first major deal, which was a Mayo Clinic, number one hospital in the world.

So that’s the best preference you can get in this industry. ’twenty two, we introduced the first five CE IVD mark solutions. And going forward from them, so we’ve been kind of growing the number of clinical closings every year. So 2023, it was a three. Last year, it was five closings.

And the first half of the year, this year, we closed five. So we are on a good track on kind of achieving our targets on that side. But just to name a few. So the NHS was, of course, a nice deal. So then the Memorial Group in Turkey, so that’s important as well.

So they took five AMOLs from our portfolio. So and it’s the biggest private hospital in Turkey. So that’s really important one. And then we have a lot of deals from Italy. So that was kind of yes, there was kind of some acceleration coming from a European Union because there’s this COVID recovery fund.

So far, there’s 15 hospital regions in Italy. So we have closed actually seven today and a couple of really meaningful ones. So Veneto region, 5,500,000 people. So on that particular opportunity, so now we are going to go to the next phase because solutions are implemented and now they continue to use it. So that’s probably the first real case as this business should be kind of evolving going forward.

But then the Lombardy region that we closed earlier this year, really significant. So if Veneto was size of Finland, Lombardia is size of Sweden. So it’s about 10,000,000 people in that region, 31 hospitals. And we could use the Veneto as a reference for Lombardia. So actually the customer said that, okay, so we want to have exactly the same system as Veneto has, because they wanted to get the best practice and guarantee so that somebody has been actually implementing this successfully, but multiple others.

And I think FIMLAB in Finland is a really important deal for us as well. So there was multiple lots that they chose iForia. So they chose solutions for nine different areas and iForia is part of all of those. And in a couple of areas, they are competitors offering. But as far as I know, so the iForea is the only company that has got actual orders from that public tender.

So and obviously, we try to serve our kind of a key customer in Finland as best as we can so and make the customer happy in that way. But my point is that there are multiple good closings. And the Paris region, for example, so that’s the biggest hospital group in Europe, so 38 hospitals. Now we have delivered one AI model to a couple of hospitals, but there’s a huge upsell opportunity. And even more important than that is that now we are in France.

So we have delivered something. We are considered as a French company. And the French government is now supporting the adaptation of AI to hospitals. So they’re giving grants so that the case of the hospital can do the initial investment on this area. So and we are all of those kind of public sector buying portals and all that kind of bureaucracy related to French market is sorted out.

We also kind of set up a legal entity so that we see that that market is the next big thing after the Italy. But all in all, I think that Europe is doing quite strong on this AI side. What else? So of course, we are kind of a technology company in a new market and we keep on going investing so that we stay ahead in technology. So and currently our offering is the widest and deepest in that sense so that we can really provide information that pathologists are needing for their decision making and provide efficiencies and accuracies doing that and a readiness to go to a next, next level as well.

We’ve been investing on integration with the multiple image management companies and alliance vendors so that, okay, it’s easier to scale. But that’s something that you need to do and it’s it doesn’t show as a kind of a it’s not really visible, but you need to make your solution to work with all the leading vendors in the market. And from this slide, I think the biggest point is the last bullet point, so which is the iForea Create. So that’s our development platform. And we’ve been renewing that technology.

So we’ve been heavily kind of invested on our foundation models. And we are using transformers, so we are connecting with the third party foundation models and getting ahead on that technology. So it means basically so that we have the current version, the older version, which is a CNN, Convolutional Neural Networks based kind of AI engines. And now we are bringing on-site this foundation model technology. And I think what is meaningful here is that, okay, so what does it actually bring?

What are the things, nice words, buzzwords, what’s happening in the industry? But the important thing is that, okay, so we can develop models faster and cheaper and with the better quality. I think those are kind of three things that comes out on our foundation models. And obviously, so we are kind of keeping a kind of a tight look on what’s happening in the market from a technology perspective, so that we can leverage all the latest ones in the market. This is what I already mentioned.

So really, really a big thing. So because May 22, Europe changed the regulation. Before that, it was a CEIV deal. And then May 22, so they introduced this new enhanced regulation IVDR. And we started to kind of build our processes, document our processes, doing those audits.

It took some time because there was no notified parties in the beginning so and so on. But all in all, the good thing is that we have done this kind of groundwork for this regulation. We have been accepted. So we have that in place. And under the new regulation, we can bring AI models.

So we don’t need to do all the kind of first steps again. So but now we can focus on bringing new AR models in the market. And this is the main thing if you think about it. So as I said, medical device and CE IVD. So and if you want to sell a clinical market, so there are only few companies who can actually do that.

You can have always those discussions so that, yes, yes, somebody can build an algorithm. So but that’s not the solution that you can deliver. No regulation, no kind of a maintenance cycles, user experiences, all of those things that software company needs to have in place. So we have that. And I think we are ready to scale on that side.

But I give now word to Wellyeman to continue with the numbers. And I’ll come back with strategy update at the end.

Willy Matty, CFO, iForia: Thanks, Jukka. And good afternoon from my side as well. In the following, I would go through some of the key financials from our first half twenty twenty five report. So as mentioned, our revenue growth was 2% to 1,400,000.0 and most of that came from Europe. Finland represented 14% and North America, 25%.

The order book growth was 58% to 5,100,000 And we invested actually €3,700,000 for total product development was main part of that €3,600,000 That’s about €1,000,000 more than last year. And as Joukka mentioned, there were successful progress in our product development in AI models and also this new AI engine, which is great news for me as well because, I mean, I have to check out the costs. EBITDA improved by EUR 1,200,000.0 to negative EUR 3,000,000 and EBIT improved by EUR 700,000 to negative EUR 5,400,000.0. We had on average 69 employees during the quarter. That’s pretty big drop from last year.

But on the other side, we have enjoyed new colleagues already this month that has started, and we’re going to wait a couple of more to start within a month or two. We had €11,900,000 cash at the end of the period. The revenue growth was flattish, so pretty much the same levels as a year before. But if you look at the figures, you could see that the cleaning business growth was approximately 60%. And if you add on that the delivery that Juka mentioned would have happened, let’s say, first half.

So the growth would have been something overall growth would have been something like 35%, and the clinical growth would have been over 100%. The order book growth, I said, 58%, and that came from the clinical business. So the growth was €2,000,000 or 90% from year before. And costs. We are pretty tight on costs.

Although the employee costs went down to €3,700,000 the other operating costs went up to €4,000,000 And that’s due to the fact that we invested pretty much on the computer power. The cloud costs were up. And also, we purchased quite a bit of samples to enable the model creation, which also increased the other operating cost compared last year. But going forward, I’m sure that we can keep cost control in place. But obviously, I mean, we are in a growth phase in that sense that we still maintain and have a strong mandate from our investors a couple of months back that we should keep up the progress on the product development that the market requires.

But this is pretty much from my side. And thank you, and Jocko.

Jukka Tapalenen, CEO, iForia: Yes. Just wanted to point out on the numbers. As Wellematti said, on the clinical side, we grew 60%. So overall growth was 2%, but David here is in the details as well, so that we decided to go to a clinical market. We decided to build the portfolio for that market and also capture the first big customers.

And on that road map, so we’ve been moving forward very well. So and because if you look at the profitability on a research side and a clinical side, obviously, we see that the profitability profit will come from a clinic. And now we have kind of first steps on that side of the business and it seems to be growing quite nicely. But this strategy so I’ve been showing this slide a few times, but still very valid. So there’s an active problem recognition.

So our customers, they know that they need something. So they’re actively looking for solutions. That’s why the large flagship hospitals are really important. And the reference value what they gave it’s really, really important in this phase. So that somebody can show what is the best practice, how it will be delivered, what type of components, what type of solutions you need to build a kind of a working model.

And demand is going up. So the cancer rates are going up, aging population, all of those same basic things are existing. And also the capacity, so in the different continents and countries, there are no countries that occur, so there would be an overcapacity of Pathology. So there’s a need and that need is growing. So our kind of a play or place in this workflow, So we are talking about the physical samples that if there’s a prediction so that you might have a cancer.

So leads to a tissue sample, tissue sample will be prepared, scanned. And then it comes to a software piece, which is kind of uploading those images, sharing those images to pathologists, storing. And what currently drives the market forward is the AI. And that’s the area where we are. So we are the ones who understands what’s on those samples.

So we can take the information from those huge files because physically small, but we are talking about two gigabit size of images and then you are looking for really, really tiny details. But what iForia can do here, so we do it much better than, yes, any of our competition. That they’re not just the heat maps, we go deeper. So we do a quantitative analysis. We populate the report.

We actually give the information that the pathologist needs for their decision making. And that is in a hot demand at the moment. So that drives the demand for the image management vendors, the software vendors, and that drives the demand for the scanner vendors as well. Of course, if you turn it around, so that the scanner penetration is important piece as well, so that they have the devices so that they can actually have the digital images and then can use an AI. So all in all, but they are in a connected to each other.

So what we have? So we have the technology leadership. So we use the foundation models transformers. We use the CNN, which is the latest kind of technology as well, which is actually working and deployed. So we are recognized as a leader on this side.

So we have a scalable business model. Now we have a couple of customers moving from a first phase to the phase that they are actually using the software and paying for the usage. So and that’s a profitable part of for us because in a first phase, you need to invest on selling, you need to invest on kind of delivering the solution. But once it’s there and the customer is ready, so you can add more AI models and you can scale up the usage. So that and that’s good for the software company.

Interoperability, as I said, so we are connecting with multiple systems and we have an interoperability agreements and testing done with the multiple scanners and multiple image management systems. And the last point, this is something that Akeso I would like to kind of everybody focus on as well. So it’s certified quality. To be able to operate in The U. S.

Hosting a patient data, you need to have a high HIPAA compliance. So you need to have multiple different kind of security regulations and certifications in place. You need to have some patents. And now you need to have the IVDR regulated products and the CE IVD products under that, meaning that, okay, so it’s a heavy investment. So but this is it’s a barrier of entry for this industry for sure, because whoever wants to come into this industry, it takes time to get all of those certifications in place.

Then we have it and we can now start selling in a volume on that side. Just a visualization of different, but we’ve been looking at kind of the main kind of areas where we want to part with. So and I have to say we have a pretty good offering at the moment. And that’s the most kind of or widest in the market at the moment. And then of course, we have a pipeline of our new coming products as well.

And this is an interesting picture because four years ago when we did the IPO, we said, okay we didn’t have any CER with that those days. And we said, okay, our strategy is that, okay, we built a portfolio of solutions that the users, they can cover 80% of the workflow with because it’s not really convenient, maybe not even possible that, okay, so you kind of pick and choose vendors, five, three vendors with the different user experience, different maintenance cycles and so on and try to manage that as a solution. So we decided that, okay, we bring all the relevant solutions with the high quality and we aim to 80% coverage by the end of a decade. So currently, we have a 60% coverage. So we cover all the kind of major kind of disease areas on pathology.

So this is something that so we as a company, we are really, really proud of. And of course now working with kind of increasing the number closer to 80%. But we are well on track on that target. And then coming back to the growth rate, 2% versus 60%. So I pick up the 60% because we’ve been focusing on getting these flagship customers in place and growing the clinical business because that gives us the opportunity to scale up big time.

So 2021, we got the Mayo and then we built those solutions. So three closings on 2023. This is, by the way, not all the closings, but these are the ones that we’ve been focusing on because we also gave one target out so that we want to have 15 kind of customers where there’s a potential ARR over €500,000 so annual recurring revenue over $05,000,000 So that doesn’t happen in the first year. So but there’s an opportunity to build up those customer relations in that level. And last year, five closings, really interesting one.

Finlap, I mentioned Castile Leon, interesting one. And that’s something so that fantastic deal. So it’s a big region in Spain, first good referenceable customers together with the Swedish image management vendor, etcetera. So it’s a fantastic deal. The challenge there was that they wanted to have a local implementation.

So now we are delivering that. So it will happen in Q3. But also that was impacting a little bit on the revenue that we could book in the first half of the year. So we could have actually kind of do a little bit better on our rev recs. So but the main point is that, okay, so it will be now delivered and we provide a fantastic solution to the end customer.

But those are the closings from last year. This year, so five meaningful closings in the first half of the year. And you can show that see that, okay, France is really picking up. So a couple of hospitals from a Paris hospital group. So we won the Nantes region.

Curie Institute is interesting, so really good reference. And they have already kind of announced that they are using Eyeforia, we got the deal. So that’s why it’s in a list. But really kind of nice closings. And Lombardia is, of course, commercially also a big one.

So moving forward. And so far, every tender that we’ve been participating, we have been winning. In some cases, they’ve been choosing one or two other vendors on the same tender, but we haven’t lost any. So that’s good to keep in mind as well. And going forward, I know that there are questions coming so that, okay, how do we accelerate?

So where do we when do we actually see the revenue growth happening? So and we had a big strategy exercise a couple of months ago. And outcome is that, okay, we see the opportunity in Europe. So the scanner penetration is 30% in Europe. So sounds slow, but small, but okay.

So it’s actually much better than in elsewhere in the world. And then we see these public fundings speeding up the adaptation. And that’s why as a European company, it’s natural so that we want to capture that opportunity and accelerate the business in Europe. We will grow the clinical offering, so there will be more CE IVD mark solutions coming up. And we look at the other kind of opportunities, how we can improve the user experience close to our core and domain.

So but we’ve been obviously planning all of these different areas, so how much revenue and what type of a growth will come from those areas. But this is in a high level, short term. Long term, this is obviously truly a global business. We have a good presence in The U. S.

So we want to capitalize that and start investing again in The U. S. Going forward. Then we have some interesting ones. So I mentioned that when you talk about the AI, currently what we offer is efficiency.

You can do much more with the same resources. You can do it with a better quality. You avoid mistakes. But the other thing is that now the prognostic model. So what we built with the Mayo Clinic so that you can start kind of predicting the patient outcome, combining the patient data, combining the AI driven data.

This is something that builds up the value of AI. First, the efficiency piece, but now the additional value are coming from things that you can’t do really with the human eye. So then we have also kind of been talking with a couple of pharma customers. And by the way, I didn’t mention that the ORION was a nice win from Finland on that side where we sell Eye4EA study solution. So that’s in good shape.

But pharma here means that you talk about the companion diagnostics. And we’ve been approached by proactively by a couple of very large pharma companies that are thinking that, okay, so when they are building a kind of a medicine or kind of that you need to kind of combine the AI. So AI need to kind of drive certain results. And based on that results, so you can then give certain treatment or certain medicine to the patient, so companion diagnostic type of things. But those are long term.

So that’s why I put it in 02/1930, even though some of those discussions already started. But this is really interesting marketplace, and there’s a good opportunity to make it really nice business. That’s it from my side. And now there’s room for some questions. I know that Antti is already ready.

Antti Lodro, Analyst, Inderes: Antti Lodro from Inderes. Let’s start from the top line and then go a bit further into the financials. But first of all, on the revenue, of course, it’s been on a relatively flat level for the last two years. And we’ve seen that the preclinical revenue has shrunk underneath and the clinical side has been taking over. Do you think this will be a recurring trend that the preclinical will be going sort of down?

Or do you think there’s room to bring that up again?

Jukka Tapalenen, CEO, iForia: Yes. Relative terms, it will go down for sure. But in absolute terms, think it will stay more or less in the same level. But our focus is really on building up the clinical business. And I have to say one thing so that we have an offering iForiaCreate, which is the fantastic development tool mostly used in research.

But the same customers who are buying on a clinical side, want to also buy the kind of research tools. So it’s something that makes us really strong on a clinical sales situation so because we can combine the offering. But the focus is clearly on a clinical side.

Antti Lodro, Analyst, Inderes: Right. And when you say the preclinical you expect it to be roughly on the same level in absolute terms. Is there a sort of a cyclical element that drives that up and down between?

Willy Matty, CFO, iForia: Not really. I mean, I think it’s quite stable going forward. So it’s kind of like easy to predict because it’s a type of license play or SaaS play in that sense. So you pocket the license fees upfront and then you recognize them throughout the license period. So it’s pretty stable.

But I say that so once or previously, when we kind of like tried to find business anywhere, so obviously, let’s say, like in U. S, it was easier to get those research preclinical type of our clients. And then you were capable of attracting some of those, which did some projects going forward. But now since we are more concentrating on the clinical side, that kind of like dropped out from the baseline revenue base. So it’s stable.

And going forward, as Joukka mentioned, so the research part includes the pharma companies. I think we have a great chance to take that business as well going But

Jukka Tapalenen, CEO, iForia: everything what we have done so has some meaning. So if you think about ten years ago when we started, so we started to build a platform so that you can build these AI models. We brought the first kind of version of Create out in 2017. So we started to get the research customers because it’s a fantastic tool for them. So and the outcome is that we got the 5,000 users from all the major universities and the research groups.

We got a lot of scientific documents out of that, so proof points that the technology works. And then we go to 2020, so when we start using that technology to build the offering to a clinical side. And we don’t want to kind of give away the research business, but we are not it will go there. So but it’s not something that you can scale it up big time. So but the clinical side, yes.

Antti Lodro, Analyst, Inderes: And then on the clinical side, were there any projects or customers where there were some timing effects, some deals and revenue getting booked to let’s say H2 for example instead of H1?

Jukka Tapalenen, CEO, iForia: Well, I think we are quite positive on an annual level. I mentioned the Spanish deal that the customer wanted to have because the tender rules was clearly saying so that you need to deliver on premise. And that was the first on premise delivery for us because we are cloud native and everything is in the cloud. But okay, this case, so we of course wanted to do what the customer asked and it took a couple of months longer. So it should be now kind of delivered in Q3.

But that was roughly about the €500,000 deal and a big part of that money so we could have actually recognized in the first half. Okay.

Antti Lodro, Analyst, Inderes: That’s helpful. And then on the order book. Of course, it has risen from the last year levels, but then compared to year end, last year, it’s actually come has come down slightly. It was roughly 5.2 then, now 5.1%. Can you explain this dynamic a little bit?

Is there some sort of contract rotation getting booked into revenue and not rebooked into order book? What’s the dynamic there?

Willy Matty, CFO, iForia: That’s pretty much as you explained. So the big drop, I would say, a couple of 100,000 comes from the order book from the research side. So the clinical side has been flat or growing a bit, not as much as we wished, but there were some negotiations going on like that, which hopefully would close-up this half. So it’s a bit tricky to kind of like a forecast how they will be seen, but the pipeline is quite nice.

Jukka Tapalenen, CEO, iForia: Yes. I know that there’s a little bit of disconnect so that you see 2% number. And you asked before so that if I’m happy with the results on the first half, absolutely I’m happy. So and if you think about the kind of a clinical growth 60%, then couple of deals kind of moving to a second half rev rec. So we could have had quite a nice numbers.

And I think the clinical side absolutely kind of on target on that perspective.

Antti Lodro, Analyst, Inderes: And then on the cost and overall where are you investing as a company? I saw your employee count was coming down a little bit in spring and now you recruited back again. Have you done some shift in priorities on where you

Willy Matty, CFO, iForia: have Yes, that’s people focusing on correct. And then obviously, I mean, there’s going to be a rotation going forward. So we’ll be increasing the number of sales and number of support type of personnel. But on the other hand, we maintained the high level of investment in product development. So that’s kind of like the change.

So there has been a rotation on the personnel, but obviously, you want to guarantee that you get the best possible people back. So whenever you recruit, it’s not happening like that. It’s kind of like McDonald’s type of recruitment going forward.

Jukka Tapalenen, CEO, iForia: Sorry. But also that as we are using the latest technologies, so then in a software development, so if you use all of those tools, so you don’t necessarily need so much more resources and you can allocate those a little bit differently now because the AI is helping to take out certain things.

Antti Lodro, Analyst, Inderes: Okay. That’s helpful. And then also on the cost side, you mentioned that you’ve been buying some samples for the R and D purposes, and that was one cost item in H1. Do you see that area going forward? Of course, you are already, if you said, around 60% of coverage in the pathology workflow end of this year.

How do you see that area moving forward? Do you still have needs?

Willy Matty, CFO, iForia: Yes. Definitely, there’s going to be needs. So going forward, you need to have certain level of investments on those samples. And we are a data company. So obviously, we have to have a certain type of approach to acquiring data, whether it’s samples, whether it’s some other type of resources, but data is kind of like our core.

It’s like the Tempus page deal. So one of the arguments why they did that was the data acquiring. So definitely, we’re going to but we have to justify what’s the right level for us compared to the top line growth.

Antti Lodro, Analyst, Inderes: That’s good. And then on The U. S. Market, of course, your strategy. Now you said that the focus would more be on Europe in the coming years and then U.

S. More 2030 and onwards. Of course, you’ve been thinking of the FDA application as one element. But should I not read into this too much and say that has moved forward several years? Or are you still thinking actively about the FDA?

Jukka Tapalenen, CEO, iForia: Yes. So we’ve been dealing with the FDA. So we did the first application. So and we got the feedback. So we have a clear idea how we are going to do it.

So whether it’s happening this year or next year or so, I’m not going to share that information. It could take some time. So but it’s definitely on our strategy to do it. Okay.

Moderator: Thank you audience here in Helsinki. And now we will take a couple of questions from our online audience. So there are a couple of questions regarding the order book. And it was roughly the same level as it was at the end of last year. So is it fair assumption to do that latter half of the year will be stronger in regards to order book development?

Willy Matty, CFO, iForia: I can’t give you any forecast for that. But obviously, I mean, that’s the target and aim for us that it’s going to grow.

Jukka Tapalenen, CEO, iForia: Yes. What I can say that, okay, we have a healthy pipeline of business. So it seems that the market is really opening up. Whether we capture all of those opportunities, so we’ll see that. So but currently, looks really promising.

Moderator: Thank you. Then further with the order book. So revenue grew by 2%. So why didn’t the order book turn as a revenue during the first half?

Jukka Tapalenen, CEO, iForia: Yes. There’s two things. So and Willemati, you may comment more. But from my perspective, two big things are Lombardia region. So we closed that in January.

So and the delivery hasn’t started. So as we are kind of moving forward with the IFRS kind of and so we cannot book the revenue until we start kind of delivering something. So and we expect that the deliveries for that particular deal will start in the second half of the year. And I already mentioned a couple of times about the Caste De Leon case in Spain. So that’s the same thing.

So that’s happening right now as we speak. But okay, that will be kind of a revenue for the second half of the year. And what comes to rev rec? So I think we pretty much know all the deals that we are going to recognize because those have been already sold and now it’s in a delivery phase. So there are a couple of bigger customers.

So that the case, so we need to deliver and customer accepts the solution so and then we can book it as a revenue. And going forward, so then it’s a pipeline and all of those open cases because it’s not likely that we close something now and we deliver before end of the year so and recognizes the revenue. But we have a good visibility on the second half.

Moderator: Thank you. And still further regarding the order book. So how do you recognize the orders in the order book? So is that the total value of the contracts throughout the whole contract length?

Willy Matty, CFO, iForia: That’s correct. That’s the right interpretation.

Moderator: Thank you. That was all today from our online audience. And any further questions from audience here in Helsinki? Okay.

Jukka Tapalenen, CEO, iForia: Thank you.

Willy Matty, CFO, iForia: I would comment on the last question also that, obviously, the person is interested, what’s the duration of our order book. So it’s a bit less than two years as on average. So that might clear up the understanding how we could approximately recognize those orders.

Jukka Tapalenen, CEO, iForia: And my closing words, so three points. So it’s kind of a fashion to say three points. But first of all, keep in mind, so that okay, so we started the journey in the clinical side in 2020. So we have been able to build the biggest and best portfolio in that market, so with the regulatory approvals. So that’s the first thing.

The second thing is that, okay, so we have actually won real customers, really kind of leading hospitals from The U. S, from Europe, from the main markets. And we’ve been starting and some delivered already and some started to be delivered. So that’s going strong. So and then the next phase, the third point, so that, okay, so now it’s time to kind of scale up and that happens with different partnership and kind of strengthening our own sales efforts, but also kind of finding nice new ways to the market through the partnership and the channel as well.

So but I think we are in a good position. So and the last point, so keep in mind, so the 60% growth on a clinical, because don’t mix up with the 2% overall, because that’s the kind of piece of kind of preclinical, which is not growing so fast. But where we are focusing also that’s growing really nicely.

Moderator: Thank you.

Willy Matty, CFO, iForia: Thank you.

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