The Volpara Health Technologies Ltd (ASX: VHT) share price is rising this morning following the release of a trading update. The healthcare technology company has been making tailwinds recently, reflecting a surge in its shares from March onwards.
At the time of writing, the Volpara share price is trading at $1.44, up 0.015%.
How did Volpara perform?
Volpara shares are on the move today after the company provided investors with a business update for Q4 FY21.
For the period ending 31 March, Volpara experienced its largest ever quarterly sales performance. Annual Recurring Revenue (ARR) soared US$1.1 million in the period, bringing total ARR to US$18.6 million for the full year. This represents organic growth of 20% in ARR when compared to FY20. That's not including the recently acquired CRA Health business. Management highlighted that strong result attained is despite increased churn related COVID-19 costs and customer-related COVID-19 IT delays.
Underpinning the performance, Volpara noted that it won its biggest sales contract to date for its Volpara live image positioning software. In addition, multiple customers expanded their existing deals, along with new major contracts from well-recognised academic centres. The company estimates that at least one of its software products is used by 32% of women in the United States.
Average revenue per user (ARPU) lifted to US$1.40 at the end of Q4. This compares to the ARPU of US$1.22 achieved at the end of the prior quarter. The company stated ARPU's in Q4 ranged from US$1.00 to US$5.65.
Outlook
Looking ahead, Volpara is also focusing its efforts towards its risk and genetics growth strategy for FY22. Educational patient letters are set to be launched in October 2021 to engage directly with women needing breast cancer screening.
As part of the company's realignment, CEO of Volpara Health, Katherine Singson, and director of United States sales, Debra Saunders, will depart. Current group CEO, Dr. Ralph Highnam, will assume the extra responsibilities from Ms. Singson. In addition, experienced industry executive Jill Spear will take over the reins from Ms. Saunders.
Words from the CEO
Dr. Ralph Highnam touched on the company's results, saying:
The contracts that Volpara secured in Q4, despite the continuing challenges of the COVID-19 pandemic, show the clear clinical need for our products, the strength of our sales and marketing teams globally, and the successful pivot to a greater focus on risk and genetics.
We are very pleased with how the financial year has ended, and we look forward to accelerating out of COVID-19 in FY22 and to working ever closer with our new colleagues at CRA Health in Boston following its acquisition in early February.
Volpara share price summary
The Volpara share price is relatively flat when looking at its performance over the course of the last 12 months. The company's shares reached a high of $1.715 in early February, before falling to a low of $1.19 in March.
The company's shares finished yesterday at a price of $1.425.
