The Volpara Health Technologies Ltd (ASX: VHT) share price will be on watch today following the release of its half year results.
How did Volpara perform in the first half?
For the six months ended September 30, Volpara reported total revenue of NZ$6.84 million. This was a 197% increase on the prior corresponding period. Software as a service revenue from customers lifted 63% to NZ$2.93 million.
The company’s annual recurring revenue (ARR) also grew strongly during the half. At the end of the period its ARR reached NZ$15.7 million, up 227% on the NZ$4.8 million achieved a year earlier.
This has been driven by increasing demand for its software and the successful acquisition of Seattle-based MRS Systems for US$14.6 million.
Another positive was the percentage of women in the United States having a group product applied on their images and data. This has increased to 25.8% from 5.6% a year earlier.
Volpara’s CEO, Dr Ralph Highnam, appears very pleased with the first half performance.
He said: “This past half-year has positioned us well financially for our next stage of growth. We have funds from a successful capital raise, a more solid cash position, stronger revenue streams and a full suite of breast-screening products.”
“MRS Systems has been successfully integrated into Volpara, and we are already seeing our hard work translate into increased customer numbers. We can now optimise the benefits that MRS has brought to Volpara, which includes a bolstered data base. We come to the table with a stronger offering to help our patients beat cancer,” he added.
Management advised that Volpara is on track to meet its mid-range forecast for ARR of NZ$17.1 million in FY 2020.
It also remains on track to achieve its forecast of 27% of US women having a group product applied on their images and data.
Volpara isn’t the only New Zealand-based technology share reporting its half year results today. Leading travel and expense technology solution provider Serko Ltd (ASX: SKO) also released its half year result and reported strong operating revenue growth.