Alcidion share price surges 18% higher on record quarter

Alcidion shares are on fire on Wednesday…

Key points
  • Alcidion shares are rocketing higher on Wednesday
  • Investors have been buying the healthcare technology company's shares following a strong trading update
  • Alcidion finished FY 2022 with a record quarter

The Alcidion Group Ltd (ASX: ALC) share price has been a strong performer on Wednesday.

In afternoon trade, the healthcare technology company's shares are up over 18% to 16 cents.

This follows the release of Alcidion's unaudited fourth quarter and full year update this morning.

Five healthcare workers standing together and smiling.

Image source: Getty Images

Alcidion share price higher on strong top line growth

  • FY 2022 revenue of $34 million, up 31% year on year
  • Recurring revenue of $23 million
  • New sales with a total contract value (TCV) of $57.7 million, up 96% year on year
  • Fourth quarter TCV sales of $14.8 million
  • Positive fourth-quarter operating cash flow of $3.3 million
  • Positive underlying EBITDA in FY 2022 excluding acquisition costs
  • Cash balance of $17.3 million

What happened during the fourth quarter?

For the three months ended 30 June, Alcidion finished the financial year in style by delivering record quarterly cash receipts of $14 million. This underpinned a 29% increase in full-year cash receipts to $41.4 million.

Management advised that this was driven by the signing of several new customers in the Australian and UK markets and upgrades by a number of strategic, long-term customers to the latest Miya Precision platform.

The latter includes new five-year contract upgrades with Northern Territory Health, Western Health Victoria, Alfred Health, and East Lancashire Hospitals NHS Trust.

Management commentary

Alcidion's managing director, Kate Quirke, was pleased with the 12 months and appears optimistic on the future. She said:

Alcidion brings FY22 to a close with an outstanding final quarter delivering record cash receipts, which has not only resulted in positive operating cashflow for the quarter but also for the full year FY22.

Alcidion's continued growth in the face of a challenging external business environment is driven not only by large scale (announced) contracts but also by several smaller contracts which cumulatively contribute meaningfully throughout the year, delivering record new sales for FY22 with TCV of $57.7M.

We head into the new financial year with $31.2M of contracted and expected renewal revenue, which when combined with our continually maturing pipeline both in ANZ and UK positions Alcidion for continued strong and profitable growth in FY23.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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