Has Volpara Health Technologies Limited remained resilient?Team Veye | 09 Apr 2020 ASX - VHT
Volpara Health Technologies Limited (ASX: VHT)
Volpara Business Update
Volpara Health Technologies Limited (Volpara; ASX: VHT), a medical technology company whose cancer screening software platform assists in the delivery of personalised patient care, on 7 April 2020 provided a business update on FY2020, which ended 31 March 2020 against the backdrop of the global COVID-19 situation.
(Chart source: TradingView)
- The Company recorded Annual Recurring Revenue of NZ$18M, beating its already upgraded target for FY2020 of NZ$17.8M (up 172% y-o-y)
- The Company now estimates it has at least one software product being used in the screening of ~27.1% of US women for breast cancer, meeting its target for FY2020
- The Company retains over NZ$31M in the bank, with no debt
- The Company is selling SaaS into enterprise health systems; COVID-19 will affect the business in FY2021, but the exact quantum remains to be seen
- The Company is continuing to invest in its stated strategy as fundamentals for business are sound
- Prudent measures are being taken on operating expenses (Data Source – Company Reports)
Despite COVID-19, Volpara Health managed to have a very strong Q4, and closed out FY2020, meeting and exceeding its targets, including an increase in ARR of 172%, which includes a contribution from the MRS acquisition. Volpara Health is a very virtual and resilient company from the start due to its location in New Zealand. The company’s ability to work from home, proven cloud-based products and outstanding US sales team have all helped beat the targets. The Company holds over NZ$31M in the bank, with no debt. It is taking prudent measures on operating expenses. The stock has completed an inverse head & shoulder pattern. It could face resistance around the $1.42 area. If it manages to clear this with volumes then it can have the potential of resuming a long term uptrend to reach earlier highs. We maintain a “Hold” recommendation on “Volpara Health Technologies Limited” at the current price of $1.29
Veye Pty Ltd (ABN 58 623 120 865) authorised representative (AR No. 001261006) of Vested Equities Pty Ltd which holds an Australian Financial Services License (AFSL No. 478987). Veye is authorised to share only generic financial views through its website, reports and newsletters without taking into consideration your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure the accuracy of the content and that the information is gathered and processed from reliable resources, it is recommended you seek professional advice from your financial advisor or stockbroker before acting on any of our recommendations. Veye Pty Ltd advises it’s users to pursue investing as a long-term goal. Stocks are subject to real time changes therefore all the information we share represents our views at the date of publishing and we request our readers not to interpret our reports as direct recommendations. Past performance is no indication of potential future performance. The securities and financial products we study and share information on in Veye Reports may have a product disclosure statement or other offer document associated with them. You should obtain a copy of these documents before making any decision about acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Veye Pty Ltd confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report (as mentioned on the website www.veye.com.au).