Nightingale’s service expands to Europe through partnership

Translation: Original comment published in Finnish on 6/8/2022 at 1:02 pm.

Nightingale announced it had signed a partnership with Physitrack and that it would add its Livit service as a key feature to Physitrack’s wellness product Access. The announced partnership expands Nightingale's Livit service to Germany, the UK and the Nordic countries. The partnership also makes Nightingale’s service available to occupational healthcare customers. We believe the partnership is logical for the company and the press release supports our expectations of the company's technology commercialization progressing. The press release does not impact our view of the company.

We believe that Physitrack’s and Nightingale’s offerings are intrinsically linked

Physitrack provides digital healthcare services. The company has users in 187 countries. The company offers, e.g., exercise programs and outcome tracking related to physiotherapy. The announced partnership with Nightingale is particularly related to Physitrack’s Wellness services. We understand that these include coaching for preventive well-being at work, e.g., related to physical activity and mental well-being. Thus far, Physitrack offers Wellness segment's services in the UK, Germany and the Nordic countries and the aim is to integrate Nightingale's Livit service with Physitrack's Wellness offering in these countries. The size class of Physitrack’s revenue is relatively low despite the international dimension (2021 revenue was some 82 MSEK or some 8 MEUR).

Nightingale’s service brings a new indicator to monitor the health benefits of Physitrack’s Wellness services, and we therefore believe that it complements Physitrack's offering well. Already in connection with its IPO Nightingale announced its plans to include a range of services that support health into its offering through partnerships, so we feel the partnership is natural for the company.

The partnership enables customer acquisition in new countries

With the partnership, Nightingale met the objective of a new international partnership agreement it had set for the fiscal period that ends at the end of June. In the short term, we expect the partnership to support the sales of services based on Nightingale’s tests and increase the company's customer base in the UK, Germany and the Nordic countries. We expect that the company will try to expand the cooperation later to other countries, because Physitrack has users in 187 countries.

In the longer term, we also see an opportunity for Nightingale to relay their own Livit customers to users of Physitrack coaching, which would enable new revenue streams based on the partner's own service sales. So far, Nightingale’s platform does not allow transfer of users’ test results between various partners and applications, so we do not believe that this possibility is in the cards in the near future.