The Pro Medicus Limited (ASX: PME) share price finished the day in the green.
At the end of the session, the health imaging technology company's shares finished 2.1% higher at $54.54. This puts the share price 22% away from its 52-week high of $70.00.
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Why is the Pro Medicus share price on the move today?
Investors seem to be pleased with the information contained in Pro Medicus' 2021 annual report, with shares climbing higher today. While investors got a chance to view the performance of FY21 back in August when the company's full-year results were posted, the annual report often provides greater detail.
In the report, management highlighted the significant nature of the last financial year. It was a year that entailed record revenue and earnings following the successful signing of multiple contracts. To reiterate, reported profit after tax increased 33.7% to $30.85 million, while revenue climbed 19.5% to $67.88 million.
During the period, Pro Medicus won 6 new contracts and renewed 2 key contracts in North America. As a result, 9 of the "top 20" hospitals in the United States, according to US News, are now standardised on the company's Visage-7 imaging platform.
Management commentary
Commenting on the record year, Pro Medicus CEO Sam Hupert and Chair Peter Kempen said:
The strong result was driven by growth in all three jurisdictions in which the company operates. Our North American business experienced strong growth in transaction revenue and significant expansion of our footprint in the region, winning 5 major contracts across a range of opportunities in both the academic and nonacademic/IDN spaces.
Our Australian and European divisions were also solid contributors. In Europe, the company won a key contract with Munich-based LMU Klinikum, one of the largest teaching hospitals in Europe which contributed to our revenue growth in the region. In Australia, our RIS product continues to be the undisputed market leader with revenue increasing due to the continued rollout of our key contracts during the period.
Additionally, management noted it foresees positive drivers in the external environment for its software. For instance, there is a significant increase in image data and file size. What was once 2 gigabytes to 3 gigabytes (GB) is now 6GB to 10 GB per file. This puts Visage-7 at an advantage over competitors using traditional 'compress and send' technology.
Similarly, the adoption of electronic health records and transaction-based licensing is expected to drive further demand for the company's Visage technology.
What's next for the company?
According to the report, Pro Medicus anticipates further contract opportunities to be realised in FY2022. This is due to improved prospects in the United States, as well as the ongoing rollout of the Visage RIS platform. Previously won contracts are also expected to come online this year. This is expected to deliver an increase to the company's generated revenue.
Pro Medicus also revealed today its annual general meeting will be held on 23 November 2021. The Pro Medicus share price has gained 63% in the last 12 months.
