Volpara Health Technologies Ltd (ASX: VHT) has revealed its quarterly numbers to the market, how will the Volpara share price respond?
Volpara describes itself as a ‘MedTech Software as a Service’ company that was founded in 2009 on research conducted at Oxford University. Its software is used for screening clinics to provide feedback on breast density, compression, dose and quality. Its VolparaEnterprise business provides role-specific dashboards and wide-ranging benchmarking analytics to help clinics manage their business more efficiently.
Volpara’s March 2019 Quarter
Volpara reported that annual recurring revenue (ARR) at the end of its FY19 fourth quarter had reached NZ$6.63 million, which was 86% higher compared to a year ago.
The cash receipts from customers for FY19 grew 83% to NZ$5.6 million and total contract value (TCV) for FY19 was NZ$15.8 million, which was 42% higher than last year. The gross margin was maintained at 83%, similar to last year.
Volpara software is now used in 7.1% of US women screened for breast cancer, which is a nice achievement considering the population of the US.
Pleasingly for Volpara and shareholders, the average price per woman screened (in other words ‘ARPU’) in the US for the base VolparaEnterprise product of US$2.17 was 37% higher than FY18.
The cancellation churn remained low at less than 2% of ARR.
The total number of VolparaEnterprise customers reached 128 at the end of the company’s 2019 financial year, up 124% from 57 at the end of FY18.
Volpara’s CEO, Dr Ralph Highnam, spoke of further growth expectations in FY20:
“We’re expecting ARR growth to be 50% to 80%, the percentage of US women screened using a Volpara service to exceed 10%, and a strong gross margin to remain above 80%.”
What has the Volpara share price done?
In early trading the Volpara share price has dropped over 3% to $1.88, although it’s still up significantly compared to a month ago when it was at $1.46.
With no debt, NZ$14.4 million of cash held at 31 March 2019 and a fast-growing revenue top line, Volpara seems to be one to watch over the next few years, particularly if it keeps growing its market share. Volpara and the two rapid growth shares revealed for FREE in the report below come be ones to watch.
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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).
At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.