The Volpara Health Technologies Ltd (ASX: VHT) share price has jumped 6% after its latest FY24 update.
The ASX healthcare share provides software for breast cancer screening imaging, analysis, and healthcare professional workflow.
Volpara Health Technologies Ltd (ASX: VHT) share price
FY24 second quarter update
In the three months to 30 September 2023, it achieved its fourth consecutive positive net operating cash flow quarter of NZ$1.2 million, a full-year and a half ahead of guidance.
The company also said that it has been net operating cash flow positive for over 12 months since the start of October 2022, to the tune of approximately NZ$3.4 million and free cash flow positive for the same period to approximately NZ$730,000.
Revenue/cash receipts continue to soar for the company. In the second quarter, it saw cash receipts jump 32% year on year to NZ$11.5 million.
The company said it’s no longer required to provide Appendix 4C quarterly reporting updates.
Future revenue growth looks good
The company said that its contracted annual recurring revenue (CARR) has grown to US$28.4 million, or NZ$46.3 million, up US$1.2 million on the prior quarter of the FY24 first quarter.
Its annual recurring revenue (ARR) has grown to US$22.5 million, or NZ$36.6 million, up from US$21.5 million in the prior quarter.
It has won/renewed contracts with a number of clients including Memorial Sloan Kettering, Northwell Imaging, Hackensack, Avera Health, Northeast Georgia Medical Center, West Tennessee Imaging Center and more.
Management commentary
The Volpara CEO and Managing Director Teri Thomas said:
What a milestone quarter for us! I’m delighted to see current customers, happy with our software, expand their use of Volpara to save even more families from cancer. We had a record number of contracts up for renewal and customers have chosen to expand and extended their contracts with us for longer, with more software than ever before.
Our record cash receipts reflect the positive impact we have on families, as happy customers pay their bills. Our growth and financial strength, approaching US$100M TCV, allows us to turn increasingly to growth endeavours like a brand-new product, called Quiver, due out next year.
Leveraging our Analytics platform, this new product provides administrative simplification for mammography centres so they can spend more time with patients. We do good and we do it well and that is reflected in this positive quarter.
Final thoughts on the Volpara share price
I believe Volpara is one of the leading ASX growth shares in the small cap space because of its rapid revenue growth, growing cash flow, strong profit margins and global growth. I’d be happy to invest today for the long-term.