Monday 29 May 2017 01:25 PM
Volpara narrows full year net loss, contract value increases
By Rebecca Howard
May 29 (BusinessDesk) - Volpara Health Technologies, the Wellington-based, ASX-listed digital health company, narrowed
its annual loss and said year-on-year growth, in terms of total contract value, continues to accelerate.
Volpara reported a net loss of $9.6 million in year to March 31 versus $30.4 million in the prior year or a loss of 7
cents per share versus a loss of $1.08 per share, it said. The prior year's result was impacted by a $24.6 loss on fair
value revaluation of convertible preference shares.
The company, which is focused on early detection of breast cancer, said it began the 2018 financial year with an annual
recurring revenue, or ARR, of $1.1 million versus $160,000 at the beginning of the prior year. ARR is the contracted
revenue expected to be booked over the next 12 months from current contracts alone. This year, it expects strong annual
recurring revenue growth in excess of 200 percent.
Its total contract value, which includes capital sales, service maintenance agreements and Software-as-a-Service
contracts, was $4.1 million in the year to March 31, up from $2.8 million in the prior year, the company said.
The move to a SaaS revenue model and the cloud has been "well received" by customers, it said, noting that since the
first sale of its VolparaEnterprise software less than a year ago its customers have processed more than 530,000 images
using the software and the numbers continue to grow. In the US alone it captured around 1 percent of women screened
annually, or some 400,000 women, and by the end of the current financial year it expects that will increase to 3
percent.
However, revenues lagged its contracted sales, it said. Revenue and grant income was $2 million, down from $2.6 million
in the prior year. Operating expenses were $10.9 million versus $6.5 million in the prior 12 months. Product development
expenditure increased due to investment in cloud infrastructure and the VolparaEnterprise software.
"During FY17 we made essential investments in our product offering and team, which will provide the platform for future
growth," said chief executive Ralph Highnam.
Volpara first listed on the ASX in April last year, having raised about A$10 million selling shares at 50 Australian
cents each. It raised a further A$10 million at 60 Australian cents a share late last year. It currently has a cash
position - including cash, cash equivalents and cash on deposit - of $12.9 million.
The shares fell 2.8 percent to 35 Australian cents, having dropped 43 percent so far this year.
(BusinessDesk)
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