Mach7 Technologies (ASX:M7T) Secures New Contracts Worth AUD 5 Million, Expands AI Offerings

4 min read | December 24, 2024 03:52 AM GMT | By Team Kalkine Media

Highlights

  • In 1QFY25, contracted annual recurring revenue (CARR) of M7T grew by 1.85% to AUD 27.5 million.
  • Recently, M7T has secured new contracts worth AUD 4.6 million, including five-year PACS license agreements with four hospitals.
  • The company has reaffirmed FY25 guidance, forecasting 15–25% growth in CARR and revenue.

Mach7 Technologies Limited (ASX:M7T) provides medical imaging software and specialises in developing innovative solutions for image management and viewing for healthcare organisations. It serves over 165 customers across 15 countries globally.

In the first quarter of FY25, ending September 2024, the company’s contracted annual recurring revenue (CARR) grew marginally by 1.85%, reaching AUD 27.5 million, compared to AUD 27 million in Q4FY24. The increase was driven by AUD 22 million in recurring revenue from clients who have achieved full product utilisation and AUD 5.5 million in subscription, maintenance, and support fees yet to be recognised.

However, cash receipts from customers dropped by 40% to AUD 6.3 million, down from AUD 10.5 million in Q4FY24. This decline was primarily due to a significant AUD 2.5 million electronic funds transfer made by a customer on June 30, 2023, which was recorded in Q4FY24.

In FY24, the company recorded a significant increase in cash receipts to AUD 34.87 million, compared to AUD 24.57 million in FY23. The period saw an increase in net change in cash to AUD 2.78 million, compared to a negative balance of AUD 2.35 million in FY23.

Business Update
Through an ASX update, dated 23 December 2024, Mach7 announced new contracts worth AUD 4.6 million. These include five-year capital license agreements with four hospitals for the company’s Picture Archiving and Communication System (PACS) solutions. Additionally, the company expanded its offerings with a three-year subscription to the Blackford AI platform for the Veterans Health Administration’s National Teleradiology Program (NTP).

Outlook and Guidance
The company reaffirmed its FY25 guidance, projecting a 15–25% growth in CARR and revenue compared to the prior corresponding period. Operating expenses (OPEX) are expected to grow at a slower rate than revenue, ensuring operational efficiency.

Additionally, Mach7 plans to sign three to four new customers (logos) during FY25, underscoring its commitment to expanding its client base.

Share performance of M7T

M7T shares closed 2.86% higher at AUD 0.36 per share on 24 December 2024. In one year, M7T’s share price has dropped by almost 55.28%, while in the past three months, the share price has decreased by nearly 32.71%.

52-week high of M7T is AUD 0.805, recorded on 27 December 2023, and 52-week low is AUD 0.305, recorded on 13 December 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 24 December 2024. The reference data in this report has been partly sourced from EODHD/Others.

 

Disclaimer

This article has been prepared by Kalkine Media, echoed on the website kalkinemedia.com/au and associated pages, based on the information obtained and collated from the subscription reports prepared by Kalkine Pty. Ltd. [ABN 34 154 808 312; AFSL no. 425376] on Kalkine.com.au (and associated pages). The principal purpose of the content is to provide factual information only for educational purposes. None of the content in this article, including any news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video is or is intended to be, advisory in nature. The content does not contain or imply any recommendation or opinion intended to influence your financial decisions, including but not limited to, in respect of any particular security, transaction, or investment strategy, and must not be relied upon by you as such. The content is provided without any express or implied warranties of any kind. Kalkine Media, and its related bodies corporate, agents, and employees (Kalkine Group) cannot and do not warrant the accuracy, completeness, timeliness, merchantability, or fitness for a particular purpose of the content or the website, and to the extent permitted by law, Kalkine Group hereby disclaims any and all such express or implied warranties. Kalkine Group shall NOT be held liable for any investment or trading losses you may incur by using the information shared on our website.

 

 

 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.


Sponsored Articles


Investing Ideas

Previous Next