The share price of digital health company Volpara Health Technologies Ltd (ASX: VHT) has risen 4.86% to 75.5 cents in Tuesday's trading session following this morning's announcement that it has exceeded its commercial target of 200% growth in Annual Recurring Revenue (ARR) for the 2018 financial year.
ARR exceeds guidance
The company's ARR now stands at NZ$3.6 million, which is a 223% increase on the NZ$1.1 million in ARR it posted in the 2017 financial year. Furthermore, Total Contract Value (TCV) has now exceeded NZ$11.2 million, an impressive gain of 173% on the prior financial year's total of NZ$4.1 million. Volpara also announced that the amount of VolparaEnterprise customers has risen from 14 to 57 over the last 12 months.
Volpara has also exceeded its 3.0% target for the amount of women to be screened in the United States using its software. Approximately 3.2% of all women screened in the United States are now contracted to Volpara's software.
Foolish takeaway
Volpara remains one of the most intriguing small cap stocks on the Australian stock market. It provides a unique alternative to other small cap healthcare stocks such as Paragon Care Ltd (ASX: PGC) and Zenitas Healthcare Limited (ASX: ZNT). Volpara is focused on the early detection of breast cancer by enhancing the quality of screening through the use of artificial intelligence. The company's clinical support software provides feedback in real-time whilst its enterprise wide software, VolparaEnterprise, helps breast clinics manage their businesses by offering a centralized overview and a wide range of benchmarking measures.
The company is expanding geographically after it was selected for a further 2 year trial by the United Kingdom's National Health Service (NHS) to implement VolparaDensity software across a number of locations as part of its Breast Screening Programme. Regulatory clearances to operate in Taiwan and Japan have also been obtained. Investors can now look forward to the company's results for the financial year ended 31 March 2018, which are expected to be released towards the end of April.
