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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.
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