The Motley Fool

Volpara delivers further explosive growth in FY 2019

The Volpara Health Technologies Ltd (ASX: VHT) share price will be on watch on Monday when the market reopens after the release of its full year results after the market close.

For the 12 months ended March 31, the medical technology company reported total revenue of NZ$5 million. This was a 78% increase on the prior corresponding period and driven by strong growth in Software-as-a-Service (SaaS) revenue. SaaS revenue more than doubled to just over NZ$4 million during the 12 months.

At the end of the period Volpara’s Annual Recurring Revenue (ARR) had grown 86% to NZ$6.6 million thanks to a sharp increase in market share for its Volpara Enterprise product. At the end of March the company had grown its share of the U.S. breast screening market from 3.2% to 7.1%.

On the bottom line the company posted a full year net loss of NZ$11.7 million. Management advised that this reflected increased expenses associated with the expansion of its US sales team and the Wellington engineering team. This was done in order to capitalise on open leads and to continue to drive innovation with existing and new products. The loss left the company with a cash balance of NZ$14.4 million.

The company’s CEO and chief scientist, Dr Ralph Highnam, was pleased with the company’s performance in FY 2019 and particularly its final quarter.

He said: “FY19 was a very solid year, ending with one of the strongest quarters in the Company’s history, the highlight being Volpara’s first NZ$1M quarter in new ARR. That brought us to an 86% growth in ARR over the year, a pleasing result that sets us up nicely for continued accounting revenue growth in FY20.”

The good news for shareholders is that Dr Highnam appeared excited about the company’s prospects in FY 2020.

He added: “We enter FY20 knowing that many groups in the United States are pushing for density notification and increased quality in breast imaging, that the FDA will mandate density notification, and that the Netherlands’ Project DENSE results will be formally published. We’re looking forward to FY20 with relish, and to seeing many more women receiving the benefit of Volpara’s technology.”

Like small caps like Volpara? Then don't miss out on this hot small cap that has been tipped for very big things.

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here's the best part: we think there's one ASX stock that's uniquely positioned to profit immensely from this explosive new industry... taking savvy investors along for what could be one heck of a ride.

AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.

Simply click below to learn more on how you can profit from the coming cannabis boom.

Click here to find out more

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.