Search ASX code:
Generic filters

Volpara Health Technologies (ASX:VHT) 1Q update – what you need to know

Volpara Health Technologies Ltd (ASX: VHT) shares will be one to watch on Tuesday morning following the release of the company’s 2020 first-quarter report (1Q21).

Volpara Health Technologies is an ASX-listed but Kiwi headquartered ‘MedTech Software as a Service’ company, founded by Ralph Highnam in 2009 based on research he conducted at Oxford University.

Volpara’s software is used by breast imaging/screening clinics to provide feedback on breast density, compression, dose and quality. Our lead investment analyst recently interviewed Volpara CEO Ralph Highnam for our Rask Rockets 2020 program.

Volpara Quarterly update

Here are the highlights from the quarter:

  • Cash receipts from customers of NZ$5 million, up 112% compared to the first quarter of its 2020 financial year
  • Net cash outflow was NZ$3.7 million
  • Volpara has NZ$67.5 million of cash in the bank, providing ample headroom for acquisitions or increased marketing and sales during COVID
  • Annualized recurring revenue (ARR) rose NZ$1.1 million during the quarter, to NZ$19.1 million
  • Churn, or the number of customers who give up Volpara’s products, “remained negligible” highlighting the importance/stickiness of its product suite. However, some legacy maintenance contracts were not renewed.
  • On COVID, the company says it continues to “monitor the pandemic closely” after more confirmed cases throughout the USA — its most important market

Looking forward the company said it had a “reasonable quarter” after a very strong fourth quarter.

“Q1 saw the emergence of COVID-19, but we’re very heartened by the strong cash receipts, negligible churn, and the fact that we got a significant number of new deals over the line,” CEO Highnam said.

“However, we remain fully cognizant of the challenges ahead and are carefully plotting out new strategies so we can emerge from this crisis strong—COVID-19 will go away, cancer will not.”

Behind the increase in ARR during the quarter, the company said it was a combination of new customers, together with some upselling activity (NZ$450,000).

Importantly for analysts, for new customers onboarded during the quarter, the pricing continued to increase. The average revenue per woman (APRU) screened in the US ranged between US$1.87 and US$4.40 depending on the size and structure of the customer’s contract.

Across the entire group, APRU was NZ$1.70 (US$1.09) during the quarter, up from NZ$1.61 (US$1.04) three months ago.

You can read our analyst’s full investment report on Volpara Health Technologies by clicking here. It’s free.

1 ASX Stock to Buy RIGHT NOW...

Rask's top analyst has just identified his #1 'MedTech' stock idea for 2021 and beyond. This is a SERIOUS growth stock.

CLICK HERE to get the ASX stock ticker code, 3,500-word analysis and ASX founder interview!

Our expert investment reports are 100% free.

Simply click here or enter your email below. We'll send you the report.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Rask's top analyst has just identified his #1 'MedTech' stock idea for 2021 and beyond. This is a SERIOUS growth stock.

CLICK HERE to get the ASX stock ticker code, 3,500-word analysis and ASX founder interview!

Our expert investment reports are 100% free.

Simply click here or the button below. We'll email you the report.

At the time of publishing, the author does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading: