The Mach7 Technologies Ltd (ASX: M7T) share price has taken a tumble in today’s trading session.
Shares in the medical imaging software company have taken a dive after Mach7 released its financial report for the fourth quarter and FY21.
Let’s take a look at how Mach7 performed.
Mach7 reports back-to-back annual profits
Earlier today, Mach7 released its activities report for the fourth quarter and overall FY21.
The company’s report highlighted Mach7 recording its highest ever cash receipts. The company recorded a 23% growth in cash receipts over the prior year to $21 million.
As a result, Mach7 reported its second consecutive year of positive operating cashflows. For FY21, the company reported positive operating cash of $1.2 million.
In addition, Mach7 recorded its highest annual sales on record. The company reported a 95% increase in sales to $25.64 million in FY21, bringing the company’s customer count to 165.
Mach7 also reported low customer churn, less than 2% for the financial year.
The company also underscored its strong financial position, with Mach7 finishing the year with $18.36 million cash on hand.
Overall, Mach7 expects annual revenue to be in the range of $19 million and $19.5 million. The company noted it will release its audited annual financial report in August.
Looking ahead to FY22, Mach7 expects to see strong double-digit revenue growth (higher than 15%) on FY21’s figure.
More on Mach7’s performance
Mach7 develops innovative data management solutions for healthcare institutions. The company’s revenue is generated through live annual support contracts and monthly subscriptions.
In today’s report, Mach7 noted the company is now generating $13.36 million of annual recurring revenue (ARR). The company said its ARR has more than doubled since the previous year where Mach7 reported an ARR of $6.51 million.
In addition, Mach7 noted that ARR will continue to grow as existing customers become fully deployed and new customers license the software.
Mach7 signed several new sales orders, contracts, and contract renewals during the fourth quarter of FY21.
Just yesterday, Mach7 also announced an expansion order from Advocate Aurora Healthcare valued at $4.3 million over 5 years. But it seems investors aren’t enthused by today’s news.
Snapshot of the Mach7 share price
Despite starting the year relatively strongly, the Mach7 share price has floundered in 2021. Since the start of the year, shares in Mach7 are down 28%.
At the time of writing, the Mach7 share price is trading more than 5% lower for the day at around 91 cents. Shares in the company hit an intra-day low of 87.5 cents earlier, to be down more than 8% for the day.