Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Volpara (ASX:VHT) share price under the spotlight, FY21 revenue doubles

The Volpara Health (ASX:VHT) share price is under scrutiny after reporting its FY21 result, showing a big increase in subscription revenue.

The Volpara Health Technologies Ltd (ASX: VHT) share price is under scrutiny this morning after reporting its FY21 result, showing a big increase in subscription revenue.

Volpara’s FY21 report

Whilst the business reported that revenue from customer contracts was up 57% to NZ$19.7 million, the subscription revenue doubled to NZ$18.1 million.

There is an ongoing transition to a software as a service (SaaS) model for MRS legacy products. The MRS Systems business was acquired in 2019.

It now has annual recurring revenue (ARR) of around NZ$27.9 million, which includes a 20% organic year on year increase. Volpara also estimates that it has at least one software product being used in the screening of approximately 32% of US women for breast cancer.

The standout statistic for me was that the gross profit margin grew from 86% in FY20 to over 91% in FY21. This was driven by several factors, including a focus on cost reductions and scalability of Microsoft Azure, which is the largest cost-of-revenue expense. It also benefited from high margins on CRA Health products and the reduced impact of post-acquisition revenue adjustments which impacted FY20’s numbers.

Normalised EBITDA (EBITDA explained) improved by 21% to a loss of NZ$12.4 million. The EBITDA margin improved from -96% to -61%.

The net loss after tax improved 14% to NZ$17.5 million.

Looking at cashflow, cash receipts increased 20% to NZ$19.7 million, whereas operating expenses only increased 4.7%. That helped overall operating cash outflows improved 16% to an outflow of NZ$14 million. It ended with cash of NZ$32.2 million.

Outlook for Volpara and the share price

Volpara said it expects FY22 revenue will be in a range of between NZ$25 million to NZ$26 million. That suggests revenue growth of more than 25%. Remember, that comes at a very high gross profit margin. So new revenue is likely to add to profit lines very quickly.

This business has a very promising future. It has a great product offering, strong subsidiaries, a long-term plan and extremely good underlying margins. All it needs to do now is grow volume and the profit will start flowing. The focus on personalised risk and connection with genetics companies should help considerably in the coming years.

I think it’s one of the best ASX growth shares around and the pre-open price of $1.25 is attractive for the long-term in my opinion.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.
Skip to content