Volpara Health (ASX:VHT) signs US$7.8m worth of contracts

• Volpara Health (VHT) signs five-year contracts with five North American healthcare providers worth over US$7.8 million (A$11.3 million)
• The company penned the deals with leading providers such as Bon Secours Mercy Health, Adventist Health and Northside Hospital
• Additionally, Volpara renewed its contract with Centura Health, a 19-hospital health system in Colorado and Kansas for an additional five years
• All contracts are expected to contribute to revenue growth from FY24 onwards and have an initial five-year subscription license term with annual payments
• Shares in Volpara are up 16.4 per cent, trading at 64 cents as of 3:15 pm AEDT

Volpara Health (VHT) has signed five-year contracts with five North American healthcare providers worth over US$7.8 million (A$11.3 million).

The company penned the deals with Bon Secours Mercy Health for US$1.55 million, Adventist Health for US$1.69 million, Northside Hospital for US$1.93 million, Duly Health and Care for US$1.45 million and Onsite Women’s Health for US$1.19 million.

Additionally, Volpara renewed its contract with Centura Health, a 19-hospital health system serving patients across Colorado and western Kansas for an additional five-years worth around US$887,000.

All contracts are expected to contribute to revenue growth from FY24 onwards, with each in force for an initial five-year subscription license term with annual payments.

Volpara Group CEO Teri Thomas said the growing demand for Volpara’s breast software reflects an industry transformation to more data-driven, personalised, high-quality care.

“These new contracts are also representative of the “elephant” commercial opportunities Volpara is prioritising to drive recurring revenue growth,” she said.

“The upgrades and renewals reflect the success providers rely on Volpara to deliver.”

Each contract partner has the right to terminate their contract after three years, aside from Bon Secours Mercy Health.

Shares in Volpara were up 16.4 per cent, trading at 64 cents as of 3:15 pm AEDT.