Volpara reports another record-breaking quarter of strong growth, with its largest quarterly ARR performance to date
Health & Biotech
Health & Biotech
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Volpara has achieved its strongest ever cash receipts for Q2FY22 with other key metrics also breaking records as the health care company continues its growth trajectory.
For the third quarter running, leading breast imaging medtech Volpara (ASX:VHT) has achieved record quarterly cash receipts from customers.
Cash receipts from customers for Q2FY22 were NZ$7.1m, up approximately 52% compared to the previous corresponding period (pcp) and almost NZ$700k or 11% up on the previous quarter.
Subscription-based receipts in Q2FY22 were more than NZ$6.9m, up 63% compared to Q2FY21 or 74% in constant currency.
Net operating cash outflow in Q2FY22 was NZ$3.8m, consistent with Q2FY21 with annual Recurring Revenue (ARR) now at ~NZ$29m.
Overall, Volpara added more than US$1.2m ARR in Q2FY22, an increase of more than 92% on its previous best Q2.
The company is also well-funded, with NZ$25m of cash on hand at end Q2FY22 with no debt on its balance sheet.
Volpara’s subscription-based receipts continue to grow at rate, up 63% year on year (YoY) or 74% in constant currency.
Average Revenue Per User (ARPU) over the installed base was US$1.46 at end of Q2FY22, up 5%, with an average ARPU for deals of US$2.04m.
Earlier this month, Volpara announced it had closed its largest contract to date to install its integrated breast screening platform across the network of a leading US imaging provider. The deal will deliver US$2.15m in revenue over five years, representing US$430K in ARR.
Volpara Risk and Scorecard, which underscores the value of the Volpara Breast Health Platform, is the most clinically validated density software to measure breast density considered a risk factor for cancer.
As global interest in personalised medicine grows, Volpara is increasing its focus on risk and genetics. The company has undertaken several takeovers and collaborations to capitalise on the space.
Volpara has also been building out a strong market position in the US$750M ARR lung cancer screening technology with strategic partnerships to complement its core integrated breast care platform.
Volpara has initiated Project Thumb, a multi-phase strategy to reach consumers directly with educational content and increase market share of the company’s proprietary breast density assessment and patient tracking technology.
The first phase, released earlier this month to coincide with Breast Cancer Awareness Month, is an educational website with detailed information about the link between high breast density and breast cancer risk as well as information on mammography, patient access, and additional resources. The website can be accessed here.
The second phase, personalised mammography result letters with expanded breast density information, has now been integrated into its first US site. The Volpara Density Profile is inserted into the letters generated by Volpara Patient Hub software and includes two thumbnail images of a patient’s mammography exam, a precise volumetric density score, and a QR code directing them to the Volpara educational website.
Development is also continuing of Volpara’s Analytics in Action client-centred service, designed to help breast imaging managers encourage a culture of learning and continuous performance improvement.
Volpara Group CEO Dr Ralph Highnam contributed to the journal Diagnostic Imaging Europe, where he described how Volpara’s acquisition of US-based CRA Health will drive breast cancer screening.
CRA Health is a breast cancer risk assessment company spin-off from Massachusetts General Hospital, which is a Harvard Medical School teaching hospital.
Highnam has welcomed the Q2FY22 results and said the company would continue with its growth plans. However, he said the company was also prepared that an upsurge in COVID-19 cases in the upcoming northern hemisphere could provide uncertainty.
“Q2 is traditionally our weakest quarter for sales, and yet today we’ve shown that we’ve had a record quarter not only for sales but also cash inflows,” Highnam said.
“This year we focused on accelerating out of COVID and that’s exactly what we’ve achieved.
“Our job now is to keep that momentum and passion for what we do as we go through the second half of the year, keeping in mind potential winter waves of COVID in the northern hemisphere.”
The Volpara share price was up 1.17% today to $1.30.
This article was developed in collaboration with Volpara, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.