The Volpara Health Technologies Ltd (ASX: VHT) share price is pushing higher on Thursday.
At the time of writing, the healthcare technology company's shares are up 1% to $1.26.
Why is the Volpara share price pushing higher?
Investors have been buying the company's shares following the release of its full year results for FY 2021.
For the 12 months ending 31 March, Volpara reported record revenue from customer contracts of NZ$19.7 million. This was a 57% increase on the prior corresponding period and driven by a 99% lift in subscription revenue to NZ$18.1 million.
This was driven by further market share gains. Approximately 32% of US women now have a Volpara product applied on their images and data. This compares to 27% at the end of the prior corresponding period.
Another positive was the company's gross margin, which expanded from 86% to 91%. This was driven by several factors, including a focus on cost reductions and scalability of Microsoft Azure, which is its largest cost-of-revenue expense item. Management expects its gross margins to remain within 90% to 92% in FY 2022.
The company's operating costs increased by just 8% during the year to NZ$39 million. Management advised that costs would have been flat excluding the first full year of MRS costs and two months of CRA costs.
This ultimately led to the company reporting a 14% improvement in its net loss to NZ$17.5 million for the year. Pleasingly, Volpara has the balance sheet strength to withstand this loss. At the end of the period, the company's cash balance stood at NZ$32.2 million.
Management commentary
Volpara's CEO and Chief Scientist, Dr Ralph Highnam, said: "FY2021 was an excellent year for Volpara. We successfully conducted our second acquisition, of Boston-based breast cancer risk company CRA Health, LLC, but we've also done a huge amount of work behind the scenes to make the company more scalable: digital marketing through to smarter use of our cloud services through to easier-to-deploy software systems into clinics."
"It's great to see that work start to come through in the numbers as we see Gross Margin moving upwards and the net loss coming down, even as we continue to grow at a strong pace. We look forward with relish to now Accelerating Out of COVID-19 and reporting on those results during FY2022," he added.
Outlook
Management expects its growth to continue in FY 2022. It has provided revenue guidance of approximately NZ$25 million to NZ$26 million. This represents year on year growth of 27% to 32%.
And, as mentioned above, the company is expecting its gross margins to be in the range of 90% to 92% in FY 2022.
