Investment Q&A

TOI’s recent quarter performance is solid. In the 3Q, TOI’s revenue grew 22% to Euro 279M beating compared to last year of Euro 228M (with 8% organic growth), cash flow in the last nine months also improved significantly from Euro 60M last year to almost Euro 155M. The balance sheet is strong, with a net debt of Euro 150M, and a net debt/EBITDA of 0.8x. The pace of cash flow deployed for acquisition slowed down a bit in the quarter, but we think given the large addressable market, TOI still has multiple years to grow at a healthy pace going forward. Overall, a solid quarter, with strong organic growth (strongest among all the CSU’s companies), we think the company continues to demonstrate great execution. In the 3Q, LMN’v revenue grew 90% to $131M, compared to the same period last year of $66M, which was largely a result of the financial consolation from WideOrbit acquisition (the main purpose for the spin-out), the organic growth improved meaningfully from negative numbers in recent quarter to around 4%. The balance sheet is solid, with net debt of only around $15M, LMN.V still has lots of dry powder to deploy into acquisitions ($141M in cash). LMN’v net income accounting could be confusing for investors, but we think the key numbers going forward is total revenue growth and organic revenue growth. Overall, a very strong quarter for LMN.V. We continue to like it, a lot.