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- Medical technology company Volpara (VHT) has experienced another strong quarter of growth
- Cash receipts for the quarter were $4.35 million, which is up 138 per cent from the same period last year
- This reflects last year’s purchase of MRS in the U.S. market
- The company also highlighted the publication of DENSE trial results in the New England Journal of Medicine
- Volpara is currently up a slight 0.82 per cent with shares trading for $1.84 each
Medical technology company Volpara (VHT) has experienced another strong quarter of growth.
Cash receipts during the quarter were NZ$4.5 million (AUD$4.35 million), which is a 138 per cent increase compared to the same period last year.
This reflects another strong quarter for Volpara in the wake of last year’s acquisition of MRS in the U.S. market.
This comes as more customers take advantage of Volpara’s enhanced product suite and adopt a SaaS (software as a service) model.
Additionally, the company also announced that it will meet and expects to exceed its midpoint guidance for FY20 annual recurring revenue (ARR) guidance of NZ$17.1 million (AUD$16.56 million).
“Following a stronger-than-expected Q2, we’ve now followed up with another quarter of strong growth which has helped us to expect an increase in our ARR forecast for the year,” CEO Dr Ralph Highnam commented.
“I’m particularly pleased we’re starting now to see the combined SaaS orders coming in and the process underway to encourage MRS’s legacy installed base to move from their old service and maintenance agreements onto SaaS,” he said.
Dr Ralph said that another highlight of the quarter was the publication of DENSE trial results in the New England Journal of Medicine.
The DENSE trial results showed a significant drop in interval cancers.
“Trials like DENSE, using Volpara®Density, provide the evidence that global screening programs need to change,” Dr Ralph added.
Group ARR at the end of Q3 FY20 was NZ$16.8 million (AUD$16.27 million) which comprised of NZ$15.92 million (AUD$15.42) from breast cancer software sales and NZ$840,000 (AUS$813,000) from lung cancer software sales.
This quarter was Volpara’s second-biggest ever for net ARR growth, just lower than Q4 FY19.
The company aims to have 27 per cent of U.S.-based female patients using Volpara group technology whilst undergoing screenings by the end of March.
This provides a solid foundation from which to upsell Volpara’s full suite of products under SaaS pricing.
Volpara is currently up a slight 0.82 per cent with shares trading for $1.84 apiece 1:45 pm AEDT.
