Kooth Pretax Loss Widens on Higher Costs, Despite US Revenue Boost

By Najat Kantouar

Kooth has reported a widened pretax loss for the first half year after booking higher costs and despite revenue growing and on the back of its international expansion strategy focused on the U.S. market.
The U.K. digital mental health and wellbeing company said Thursday that pretax loss for the half year ended June 30 was 1.7 million pounds ($2.1 million) compared with a loss of GBP571,000 for the comparable period a year earlier.

Revenue rose 29% to GBP11.7 million on the back of ten new contracts being won. Annual recurring revenue rose to GBP21.4 million, from GBP18.5 million.
The company expects to report revenue for the year of no less than GBP34 million, compared with GBP20.1 million in 2022.
“With the award of a $188 million four-year state-wide contract with California, the last six months demonstrate the significant opportunity for Kooth in the U.S. as federal and state governments invest to transform youth mental health care,” Chief Executive Tim Barker said.
Gross margin fell to 66.8% from 68.4% due to direct costs related to practitioners involved in the delivery of services, Kooth said.
Shares at 0948 GMT were down 20.0 pence, or 6.3%, at 293.0 pence.
Write to Najat Kantouar at [email protected]