We don’t often get a chance to look inside the books of Europe’s most valuable private companies simply because they are just that — private companies.
But today, one of France’s most valuable companies, healthtech Alan, released its 2022 results. The company said it was confident that it would reach its 2025 profitability goal — a target many European tech companies are aiming to achieve given the challenging macroeconomic and funding environment. Only three of Europe’s 20 most valuable unicorns are profitable, according to Sifted analysis.
Alan offers companies health insurance for their employees, cutting some of the administrative burden on HR departments. It has a number of products, covering health insurance, mental health and eyecare.
Here are the top three takeaways from the company’s results.
Alan says it will hit its 2025 profitability goal — and doesn't plan to raise again
In a statement, CEO Jean-Charles Samuelian-Werve said that the company was forecasting 50% annual recurring revenue growth in 2023 based on continued growth in France, its first and biggest market, along with the development of its Belgian and Spanish operations and new service launches.
“With more than €230m in cash in the bank and continued investment in the optimisation of our costs and operations, Alan has the means to finance its ambitions and attain profitability as forecast in 2025.”
Samuelian-Werve says in a message to Sifted that the firm had no plan to fundraise again and would “look at an IPO at some point but not by 2025”.
That €230m in the bank is more than the company’s last raise in May 2022, when it bagged €183m in Series E funding from the venture and growth arm of the Ontario Teachers’ Pension Plan and investors like Temasek, Index, Coatue and Lakestar. The round valued the company at €2.7bn.
Alan’s revenues were up 62% in 2022
Alan posted €258m in annual recurring revenue at the end of 2022, up 62% on year. This is the subscription-based revenue for Alan. Costs — including staff costs — also increased, but only by 30% on year, though the company didn't give a number for total costs.
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In comments to Sifted, Samuelian says that the company kept costs in check by “hiring only the best, high talent density, [and a] focus on differentiation and scalability”.
Doctolib, another French healthtech unicorn, has never publicly announced its revenues, but given its monthly base subscription fee of €129 and the fact that it has 300k medical workers paying, it likely has annual revenues north of €400m.
Alan has 380k members across France, Belgium and Spain
Alan added 125k new members in 2022, according to the release. In total, it now has 380k members.
Mimi Billing is Sifted’s Nordic correspondent. She also covers healthtech, and tweets from @MimiBilling.
Eleanor Warnock is Sifted’s deputy editor and cohost of Startup Europe — The Sifted Podcast, and writes Up Round, a weekly newsletter on VC. She tweets from @misssaxbys