The Pro Medicus Ltd (ASX: PME) share price is up more than 6% today after the healthcare technology business released its FY23 full-year report.
The released annual result is for the 12 months to June 2023.
Initially, Pro Medicus shares opened 6.4% higher. In lunchtime trading, they remain up 6.46% at $74.12 a share.
Here are the highlights of the medical imaging technology company's full-year report:
Pro Medicus share price surges on impressive full-year result
- Revenue grew by 33.6% to $124.9 million
- Earnings before interest and tax (EBIT) margin of 67.2%
- Underlying profit before tax grew by 34.5% to $83.9 million
- Net profit after tax (NPAT) rose by 36.5% to $60.5 million
- Final dividend increased by 36.4% to 17 cents
- Full-year dividend up by 36.4% to 30 cents
Looking at the regional revenue breakdown, North American revenue rose 41.8% and Australian revenue increased 9.4%. Europe revenue fell 12.2% because of one-off (capital) revenue coming from the extension of the German government hospital contract in FY22, which wasn't replicated this year.
Despite sending increasingly large dividends to shareholders, the company's cash and other financial assets increased by 34.2% over the year to $121.5 million.
What else happened in FY23?
The business won a number of large contracts during the year, including a $25 million, seven-year contract with the University of Washington, a leading teaching hospital in the University District of Seattle.
According to the latest US News Best Hospital 23/24 rankings, Pro Medicus now provides imaging solutions to nine of the top 22 US hospitals, which is more than any other vendor, as well as an increasing number of large and mid-sized health organisations.
The ASX healthcare technology share noted that it has been active in terms of product development outside of its core radiology offering, as well as looking at AI.
During the year, it recruited a specialist in the cardiology space, and its two people dedicated to AI and research collaborations in the US have "been busy". It's targeting its first commercialisation in those areas within the next six months.
What did Pro Medicus management say?
Pro Medicus CEO Dr Sam Hupert said:
Cloud-based systems can be implemented much faster than those that require hardware to be bought and installed.
This, coupled with our highly modular approach, continues to provide unparalleled flexibility and scalability, as evidenced by the increasing number of clients choosing the full stack of all three Visage products – Viewer, Workflow and Archive – a trend we see continuing.
The trends we have previously identified as driving the industry continue unabated. Exponentially larger data sets, the transition to cloud and the acute global shortage of radiologists create demands that are uniquely satisfied by our Visage technology.
What's next for Pro Medicus?
Hupert said that its pipeline "continues to be strong with opportunities across all major market segments".
He believes the combination of cloud and flexibility that Pro Medicus offers in terms of modular product offerings has helped it win the majority of opportunities that it bids for, even though it supposedly has the "most expensive option on the market".
According to Pro Medicus, it can benefit from the "exponentially larger data sets, the transition to cloud and the acute global shortage of radiologists".
Pro Medicus share price snapshot
Since the start of 2023, Pro Medicus shares have risen 36%, while the S&P/ASX 200 Index (ASX: XJO) has gained around 5%.
