The Mach7 Technologies Ltd (ASX: M7T) share price is pushing higher on the day of its annual general meeting.
In afternoon trade, the healthcare technology company's shares are up 3% to $1.25.
This leaves the Mach7 share price trading within touching distance of its record high of $1.28.
What happened at the annual general meeting?
At the event, management provided investors with a summary of its performance in FY 2020, an update on current market conditions, and its guidance for FY 2021.
Mach7 was a strong performer in FY 2020 despite the pandemic. For the 12 months ended 30 June, the enterprise imaging solutions provider delivered a 102% increase in revenue to $18.9 million.
Things were even better for its earnings before interest, tax, depreciation and amortisation (EBITDA). Margin improvements led to its EBITDA jumping 181% higher year on year to $3.3 million.
Current trading conditions.
Management notes that COVID-19 has had an unpredictable impact on hospital revenues across the globe.
However, it is seeing signs of image volume returning and hospitals reengaging with previously planned projects and investment.
And while it is difficult to predict the budgetary impact to its current and future customers, management notes that its products are well-placed in the current environment as they help to solve the ongoing issue of providing care from outside the walls of the hospital.
Pleasingly, the company's pipeline is very strong in respect to late-stage deals, which management feels is alluding to a strong second half of FY 2021.
It also notes that it is experiencing continued strong partnerships with its largest clients. As of today, $10.8 million of sales orders (total contract value) have been recorded in FY 2021.
Finally, new marketing initiatives are kicking off this week to assist in bolstering its sales pipeline for FY 2022.
FY 2021 guidance.
Mach7 expects to deliver a minimum of $11.5 million in Annual Recurring Revenue (ARR) from its existing customer base in FY 2021. This represents >90% growth on FY 2020.
Management is also forecasting positive EBITDA growth for FY 2021. It notes that ARR provides 70% coverage of existing cost run rate, excluding one-off costs.
It also expects to deliver positive cash flows for the year. However, it advised that this will continue fluctuate quarter to quarter due to the irregular timing of cash receipts from license fees.
