Volpara Health Technologies Ltd (ASX: VHT) soared 21% today, posting the largest percentage gain on the All Ordinaries Index (ASX: XAO).
What’s a Volpara?
Volpara is yet another gem from New Zealand; think A2 Milk Company Ltd (ASX: A2M) and Xero Limited (ASX: XRO).
Based in Wellington, the company is a medical technology company whose AI algorithms assist in the early detection of breast cancer. The Saas business was founded in 2009 on research originally conducted at Oxford University, and their technology and services have been used by customers and research projects in 37 countries.
Why’s the VHT share price off to the moon?
This morning Volpara announced they had reached their commercial milestone for FY19, which was for 85% growth in Annual Recurring Revenue (ARR) and coverage of 7% of women screened in the United States.
ARR now stands at NZ$6.6 million, compared to NZ$3.6 million at the end of FY18, an increase of 86%.
Other highlights in the announcement included the signing of their first NZ$1 million total contract value customer in the US and the signing of the large I-MED Radiology network in Australia this quarter.
Last month, Volpara announced the launch of an expanded agreement enabling the worldwide distribution of its industry-leading VolparaDensity software by GE Healthcare, a subsidiary of US behemoth General Electric Company (NYSE: GE).
They also announced that the United States Food and Drug Administration (FDA) has released a proposal to amend the Mammography Quality Standards Act to include a requirement that all US screening facilities provide information on breast density to women and their healthcare providers after a mammogram.
Volpara has a 31 March year-end and will announce their full-year result at the end of May.
Buy, Hold or Sell
I think Volpara has a great future and today’s announcement shows the business has strong momentum. However keep in mind that it has a $300 million market capitalisation, so it’s a smaller company and the shares will likely be a lot more volatile than the general share market.
If you’re on the lookout for the next Volpara, get a free copy of our ASX investing report below…
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Disclosure : At the time of writing David owns Volpara shares.
