Babylon Investor Presentation Deck
Scale is the Key to Profitability
14
Illustrative examples of EBITDA breakeven (1)
Blended Gross
Margin
10.0%
12.5%
15.0%
17.5%
20.0%
Assumed Operating
Costs
1,000
(200)
(175)
(150)
(125)
(100)
300
Blended BCS & B360 Revenue ($m)
Denotes illustrative breakeven or profitability
2,000
(150)
(100)
(50)
0
50
350
3,000
(100)
(25)
50
125
200
400
4,000
(50)
50
150
250
350
450
5,000
0
125
250
375
500
500
ā
With the leverage in our model, we can keep growth in
operating costs modest as we scale
A combination of $3-4bn of VBC revenue at 7.5-10%
average gross margin, and $150-200m of licensing
revenue at ~90% margin could allow us to breakeven
Notes: (1) Illustrative breakeven EBITDA table shows theoretical breakeven points by calculating illustrative gross profit figures (defined as Revenue multiplied by Blended Gross Margin), minus illustrative operating costs for the corresponding
revenue level to display theoretical EBITDA breakeven when the illustrative gross margin are greater than illustrative operating costs.
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