Volpara Health’s Shares Surged Over 20% On ASX After Exceeding Market Guidance On Commercial Milestones

  • Apr 08, 2019 AEST
  • Team Kalkine
Volpara Health’s Shares Surged Over 20% On ASX After Exceeding Market Guidance On Commercial Milestones

Volpara Health Technologies Limited (ASX: VHT) works under the healthcare sector. The company is into the development of digital health solutions to enable personalised breast cancer screening software applications. The company operates in research, manufacturing and development. It has Artificial Intelligence (AI) imaging algorithms, which assists in the early detection of breast cancer. The company has operations in America, South America, Asia, Middle East, Europe, Australia and New Zealand.

The company, today on 8th April 2019, announced that it has exceeded market guidance on its FY2019 commercial milestone of 85% growth in annual recurring revenue and coverage of 7% of women screened in the United States.

The annual recurring revenue of the company stood at NZ$6.63 million compared to NZ$3.6 million at the end of FY18, an increase of 86% and above the market guidance of 85%. Total contract value amounted to NZ$15.8 million, an increase of 42% on FY18. The total contract value represents the value of contracts signed in the specified period. Additionally, approximately 7.1% of all women screened in the United States are now contracted to Volpara’s software compared to the target of 7%.

Maiden NZ$1 million quarterly increase in the annual recurring revenue stood at NZ$1.05 million, with a maiden NZ$5 million quarter of total contract value. There was a total of 128 Volpara®Enterprise™ contracts at end FY19 as compared to 57 at end FY18, an increase of 125%. The company also made the first sales of its new product, the Volpara®Live!™ system. It had signed a first NZ$1 million total contract value customer in the United States and signed I-MED Radiology Network in Australia. The Volpara software is used by MD Anderson and UCSF’s joining of Memorial Sloan Kettering, UVA, and other major US clinics.

The CEO of the company, Ralph Highnam said that FY2019 was another year of very strong sales momentum, with contract sales primarily in the SaaS/Volpara Enterprise suite. The company ended FY2019 on a strong note with its first NZ$1 million order, its first NZ$1M ARR quarter, and the signing of several prestigious clinics, including I-MED Radiology Network in Australia.

Dr. Highnam added that the company exceeded its prior guidance. Furthermore, having over 7% of US women currently under contract provides an astonishing amount of data for applying serious AI to enable better regulatory reporting, improved ROI for breast imaging clinics and better breast care outcomes for women. The company is looking forward to FY2020 with great confidence.

On the price-performance front, the stock of Volpara Health Technologies Limited at market close on 8th April 2019, is trading at A$1.75, with a market capitalisation of ~A$259.81 million. The stock has remained volatile and generated YTD return of 31.36%, with returns of 22.46%, 29.02% and 21.94% over the past six months, three months and one-month period, respectively. Its 52-week high price stands at A$1.750, and a 52-week low price stands at A$0.610, with an average trading volume of 315,934.


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