The Volpara Health Technologies Ltd (ASX: VHT) share price is down 4% after reporting its FY24 first quarter, which was strong.
Volpara FY24 first quarter
The ASX healthcare share reported cash receipts of NZ$11 million, which was up 27% (or 21% if the same foreign exchange rate was used).
It said that it made the third straight positive quarter of net operating cash flow, with an improvement of 100% from last year’s net outflows of NZ$2.8 million, to NZ$9,000 in this quarter.
The company has been operating cash flow positive since September 2022, to the tune of around NZ$2.4 million.
The ASX healthcare share said that it’s heading towards being net operating cash flow positive in FY24, which is a full year ahead of guidance. That’s great news for the long term for the Volpara share price.
Volpara’s software as a service (SaaS) statistics were good. The contracted annual recurring revenue (CARR) is now around US$27.2 million, or approximately US$44.1 million. This was an increase of US$700,000 on the prior quarter (the fourth quarter of FY23).
The company’s annual recurring revenue (ARR) is now US$21.5 million, or approximately NZ$34.9 million, up from US$20.9 million in the last quarter.
Management commentary
The Volpara CEO and Managing Director Teri Thomas said:
It’s been a great quarter, with our recognition as Microsoft’s global Healthcare and Life Sciences Partner of the Year, but most importantly the continued growth of our customer base. What matters most is the positive impact on families, and our growth and financial strength allow us to explore ways to expand that impact. We are energised and growing both in the United States and in Australia, with the addition of Breast Screen Victoria. We could not be more pleased.
Final thoughts on the Volpara share price
Volpara continues to do extremely well at growing revenue, increasing its future revenue (with ARR growth), make positive cash flow and strengthen its position in the market.
It’s not as cheap as it was a month ago – having risen by around 25% in the last month – but I still think it’s got a very exciting future considering revenue keeps growing at a double digit rate and it has a gross profit margin of over 90%.
I’d call this one of the most exciting ASX growth shares around, and a long-term buy.
